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Published:March 16th, 2009 16:53 EST
Pools Of Cash

Why Is Now The Best Time To Raise Pools Of Cash?

By Joel G. Block (Mentor/Columnist)

In the history of the United States and quite possibly in the history of the world, a transfer of wealth may never occur as substantial as the one that`s in front of us right now. At this particular moment, real estate (which is extremely depressed in many parts of the country) is being taken over by banks and lending institutions. These properties are being acquired by savvy investors who know how to take advantage of the distress in our system.

Pools Of CashIf there was ever a time that you wanted to be involved in the acquisition of real estate or real estate paper, now is the time to do that. The people who have cash are the ones who are going to acquire the pools of distressed assets and benefit from the equalization that will occur in the near future.

The old rule says that "cash is king" but the truth is that "pools of cash are really the end of the rainbow." The goal that you have to shoot for is to acquire pools of cash. There are several reasons why this is important. Here are 5 key points to consider:

1. Credit crunch. We are in a desperate credit crunch at this time. There is a lock on capital due largely to lack of confidence which is preventing cash from being dispersed into the market place. Consequently, enormous sums of money are sitting on the sidelines. A savvy promoter or syndicator will be able to show investors that the money parked on the sidelines would be better utilized in assets that are purchased for a low price which can certainly be resold at a higher price shortly in the future.

2. Distress. This country has seen distress like never before. With the collapse of the major banks on Wall Street and with the sub-prime debacle, real estate prices have fallen below an equilibrium price. That means that it`s just a short amount of time before we see increases in those prices.

3. Transfer of wealth. There are some people who know how to make money when the markets are down. These people are rare, however. For the most part, most people sit on the sidelines moaning together that they`ve all lost money. A close colleague of mine, Jay Goldinger, says that "losing in company is better than winning alone " ( People tend to rationalize that because everybody else is losing, my losses aren`t so bad.

I don`t take that position. Instead, organize pools of cash to take advantage of the opportunities overlooked by the people who are paralyzed with fear and you`ll see fortunes like none that have ever been accumulated in the past. Which camp will you be in?

4. Cash is king. Cash is always king in every economy but even more so in an economy where money is tight, prices are distressed, and people are terrified of what`s happening in an uncertain world. Your ability to pool cash and to acquire assets for distressed prices will benefit you for generations into the future.

5. Making fees and generating other income. If you`re a broker in this environment and you want to lock in your commission now and into the future, pooling cash and acting as the quarterback or equity sponsor of the deal is the best way for you to participate in any deal. Brokers who participate in transactions not only guarantee themselves a round trip commission but also participation in the property`s cash flow and upsides. This is a powerful position to be in, but very few brokers learn how to take advantage of this opportunity.

All of these reasons should convince you that pooling cash is more important than it`s ever been and if you are in a position to take those steps you`ll be rewarded like never before.

If you`d like to learn how to pool cash, we`re offering a weekend program in April 2009 that will take you through every part of the process to show you how to raise capital. We`ll show you where the capital is, how to stay in compliance with the law, and how to position yourself as an expert in the kinds of deals that you do so that investors will feel confident in asking you to be a steward of their capital.

There won`t be any hype and we won`t hold anything back. Not everyone has the guts to take actions that are contrary to what the "group" is doing, but doing so will pay off handsomely.

If you`d like more information on the program that`s upcoming please go to All of the information that you need is available to you on that website.