February 24, 2009

It is amazing how much work it is to "get something" right.

I've been revising PowerPoint slides for the last 10 days. I am very impressed with what we have created.

I am still working on a spreadsheet so people can play with "their" numbers in our plan.

What has been interesting to me is we have focused on our 10% Guarantee and making sure our process will work with integrity. It does and we are very proud of it. We've put the "plan" and the "team" results first.

I've had the opportunity to convert our "context" and plan into a formula for what I am calling the IQ Equity Effect. I knew it was going to be good, but I was blown away when I put the numbers in.

We can't guarantee those numbers, just the formula and process. I'm still working on it because the IQ Equity Effect is a compounding effect. Our plan is not a "static" plan, it is dynamic. The IQ Equity Effect has long term cash flow, equity and pass through tax benefits.

The bottom line for me is - if we are even close to hitting our objectives and I see no reason that we will not - because most of what we do - in acquisition is done in advance to validate the long term process. The IQ Equity Effect looks to be at least 5%, and probably and additional 10%, since a chunk of that is equity. Who even has a valid possibility of a 15 to 30% return, and that return dynamically expands so it is hard to project in a proforma.

Hard money lenders I see will offer 16 to 18%, but that is backed by predatory lending (use to be called usury), and there is a lot of RISK there because the assets being acquired and plan is rooted in "flipping" and they are dealing with high litigation issues with distressed home owners. Yea, you can get great returns, but it is hard to get consistency. 1st position on real estate that is valued based on declining "comps" is a huge risk. We don't mess around with that which is why we are totally focused on Commercial with our own research and tested acquisition terms and standards (sorry, that is private and confidential to the management team, we've made huge investments in training, research, and validating our assumptions - we'll share with our trusted IQ Money Team Members after we've completed a cycle together.)

I saw the numbers in the spreadsheet and I was blown away. I knew the contexts we set were good and made sense. It was just stunning to see it. I added up one set of Performa numbers without the tax benefits and it was over 20%. I didn't quite believe it so I validated the formulas and it is what it is. My concern is that people won't believe it unless they pull out a calculator and run the numbers and assumptions themselves and look at the current market to get a feel for the fact, we are probably using conservative numbers rather than best case scenarios.

I like to plan with three contexts and I hope to get the spreadsheet updated to reflect:

Worse Case Scenario, Planned Result, Home Run

We tested the webinar interface today. Lawrence had some challenge getting connected. Tom Childers has been awesome. He has our spirit of contribution. I look forward to rewarding him by sending business his way for all of his help.

He refereed us to an outstanding attorney that isn't afraid to "create". Tomorrow is our big day.

I've been updating our documents and getting announcements out. Things are looking up.

Besides the financial power of a team - we haven't even gone into the power of the talents of the people we are building relationships with.

This is a new model rooted in concepts that can make a real difference.

I know that some people just want a good solid and safe way to put their money to work without hassle or headache.

Then there are going to be those who will want to get back in the game. I can see training team leaders in different regions and working with them to form their own teams using our contexts and approaches.

I've always wanted to "Change the World" - (laugh) who hasn't, especially as a young man or woman. I am starting to envision that we can make a difference rooted in prosperity and reality rather than fear and greed.

Its nearly midnight, another very productive day. I'll suspect I'll be getting an early start first thing in the morning. Sometimes that is 3 am, it's often 5:30am. I don't use an alarm clock which is interesting. When I'm done resting - I'm up and about digging in. I have noticed however that my body does have some limits. (laugh), my fingers get sore from typing, and my eyes need to take breaks from reading fine print (laugh).

I've noticed that my enthusiasm level is so high that I am eager to start my day as soon as possible. It is amazing the power of dream, vision and enthusiasm.

I am so looking forward to sharing our plan with others tomorrow on our webinar.

That's all for now.

Namaste' & Blessings to you

- David