The Trustee is the owner of the property, not the Trust itself.

The Beneficiary has the power to direct the Trustee to deal with the title and proceeds of the property.

If ever there was an argument for the advertising ban on Hedge Funds to be lifted it is this one. Over three years a brazen group of New York scam artists raised about $30 million from unsuspecting investors by posing as principals of a successful hedge fund and then fled with the loot.

Investments from $5,000 to $500,000 were obtained from college professors and educated professionals. It took the group a little more than three years, from early 2003 September 2006 to raise the $30 million.

A grand jury empaneled by Michael J. Garcia, the U.S. Attorney in Manhattan, is said to have handed up a sealed indictment in the case, according to a lawyer hired by 10 of the victims, who said that the FBI was investigating the matter.

The criminals are clearly to blame here, however, this is a problem that, in our opinion, is caused in part, by the regulators themselves.

There is a scam out there that is based on “Prime Bank Guarantees” or “Medium Term Notes” that has taken billions from investors with promises of astronomical returns. The SEC web site says:

“Lured by the promise of astronomical profits and the chance to be part of an exclusive, international investing program, investors are once again falling prey to bogus “prime bank” scams. These fraudulent schemes involve the purported issuance, trading, or use of so-called “prime” bank, “prime” European bank or “prime” world bank financial instruments, or other “high yield investment programs” (“HYIP”s). The fraud artists who promote these schemes often use the word “prime” ? or a synonymous phrase, such as “top fifty world banks” ? to cloak their programs with an air of legitimacy.”

The thing that allows the bogus ‘brokers’ and ‘investment managers’ of this fraud to operate is that they have created a veil of secrecy over the whole operation. The SEC says:

“Promoters claim that transactions must be kept strictly confidential by all parties, making client references unavailable. They may characterize the transactions as the best-kept secret in the banking industry, and assert that, if asked, bank and regulatory officials would deny knowledge of such instruments. Investors may be asked to sign nondisclosure agreements.”

This ‘secrecy’ is what perpetuates the fraud. Simply put, the peddlers of this scheme will tell you that when you do your research that you will find everyone denying the existence of the scheme. They will say that those not in the industry don’t know about it because there would be outrage that rich people could make so much money and those in the industry will deny it because they either aren’t high enough up or are trying to keep it a total secret. They will also tell you that a minimum investment of $10mn is the norm, but they have split up that $10mn to allow their investors in.

This secrecy is the perfect cover, and I speak from personal experience, 15 years ago as an investment pup, to my eternal shame, I got caught in a the same scam.

So we have an ‘investment’ that is supposed to be super secret, has a minimum investment and is not advertised anywhere. Do elements of this ring any bells?

Simply put, the regulators are perpetuating the ‘secrecy’ of hedge funds by not allowing advertisement of the funds. Their rules about only being able to invest a certain amount of money did not protect the people in this case who invested $5000, did it? Something tells me the scammers did not check to see what the net worth of the investors was either.

How would advertising funds have helped? As with everything, the fact that advertising is allowed generates an awareness of a particular industry. How many of you knew how to play poker before the online casinos plastered the web with advertising? My limit was ‘Snap’, now I am a stone cold poker shark.

By the very nature of advertising and, therefore, informative web sites, brochures etc etc, this kind of fraud would be more difficult to perpetrate because the veil of secrecy would be lifted for all to see.

Of course, there will always be criminal elements who will attempt to subvert whatever rules are out there but the regulators throughout the world don’t need to make it easy by perpetuating a secrecy myth that can be exploited by the criminal element.

Geelong Real Estate, businesses and vacant land for development continues to increase in demand as this popular ?city by the bay? emerges from its 1930?s industrial cocoon into an affordable and well serviced coastal city with impressive foreshore developments, parklands and as a gateway to the internationally acclaimed Great Ocean Road.

The state capital of Melbourne is an easy commute only an hour away via either the Princes Highway or railway. The recently redeveloped Avalon airport is just fifteen minutes from central Geelong and provides flights to many Australian, and some international destinations. Geelong is the second largest city in Victoria and the 12th biggest city in Australia.

Geelong is a unique place to live with a blend of hilltop mansions, Victorian classics, modern apartments, quiet streets and a stunning foreshore promenade. The city continues to redefine itself as a modern and contemporary alternative to Melbourne with restaurants, bars, cafes and shopping strips as well as its own university and hospital. All whilst enjoying the laid back lifestyle Geelong has to offer.

Geelong has also provided a conveniently located ?sea change? destination for many Melbournians who have relocated the short distance to Geelong and some of the arterial towns of Queenscliff, Torquay and Apollo Bay

At the time of writing (February 2008) property prices in Geelong begin around $90,000 – $150,000 for a one and two bedroom unit in areas such as Belmont, Breakwater, Whittington and Grovedale.

Three bedroom ex-housing commission homes on modest allotments of 600 sqm start at about $150,000 in the cheaper Geelong suburbs of Norlane and Corio. New, modern and fully optioned homes in areas such as Clifton Springs and Waurn Ponds and larger older brick homes can be found in bay side towns such as Portarlington, St Leonards and Indented Head at around $450,000

For around $800,000 you can expect a Federation style home overlooking Geelong city and Corio Bay.

In the twelve months to 31st January 2008 median house prices in Geelong increased 11.8% to $348,800 with 47% of those listed for auction sold on the day. Similarly across the Geelong region prices increased 11.1% to $278,250. The exclusive suburb of Newtown saw median prices rise 12.1% to $390,000

One way around seasoning issues is to assign your interest in the purchase agreement to the buyer for a fee, keeping the seller as the current owner.  The drawback to this option is that the buyer must be able to pay the assignment fee without using proceeds from the final closing.

There are a number of other techniques that real estate professionals are using to make the process of investing in foreclosures, short sales and distressed real estate smoother.

Real estate investors who are practicing short sales, double closings and other specialized techniques should be represented by a qualified real estate attorney who understands how these transactions work.  A real estate attorney will know how to structure all documents in a double closing to comply with mortgage guidelines.

Jodi Funke is a transactional lender who understands this dilemma.  “Lack of funds is the number one reason most real estate investors cannot close a short sale deal,” said Jodi.  “We provide one-day funding for the investor to buy the property and our nationwide team of closing professionals, attorneys and title companies are experienced in doing back-to-back transactions so the investor can fund the deal and resell the property the same day.  It’s a win-win deal for all parties involved.”  Learn more about wholesale funding at http://www.cashforshortsales.com

Jodi Funke is a transactional lender who understands this dilemma.  “Lack of funds is the number one reason most real estate investors cannot close a short sale deal,” said Jodi.  “We provide one-day funding for the investor to buy the property and our nationwide team of closing professionals, attorneys and title companies are experienced in doing back-to-back transactions so the investor can fund the deal and resell the property the same day.  It’s a win-win deal for all parties involved.”  Learn more about wholesale funding at http://www.cashforshortsales.com

If you want to improve your chances of selling your home in a short period of time and for fair market value, you may want to give some of these ideas a try to improve the first impression people get when they view it. Everyone knows that first impressions are really important, and you want prospective buyers to feel a ‘wow’ effect when they first arrive. From the street view, to the front hallway, to the attic and basement, it should give the impression of a well cared for home that won’t need a lot of repair or improvements.
Curb Appeal
Take a good look at your house from the street. Do you see overgrown shrubs and trees covering the windows and touching the side of the home? You might need to prune them or remove them. All windows should be clearly visible. Do you have tidy flower beds with no weeds? You might need new edging for the flower beds. Putting in fresh plants and flowers helps, even potted ones on the step.
Other outside first impressions will be of the front door, mailbox, and doorbell. Make sure these are ready to use, and even paint or replace the door. Purchase a new welcome mat.
Inside
Many of these suggestions are part of a good spring cleaning. Washing all the windows and cleaning the window trim, blinds and drapes is a must. Having the carpets steam cleaned is a good idea as well.
Clutter should be reduced or eliminated. This might mean cleaning all items off the floor, removing extra furniture to the garage or storage, putting away extra seasonal clothing such as winter boots, and throwing away or removing items that are not in use. It will hopefully be time to move soon in any case, and these things need to be done eventually.
The kitchen needs to be extra clean. The oven, behind the refrigerator, and the cupboards are some areas to concentrate on. Counter tops should be clean and not covered with cooking items.
Bathroom grout needs to be clean, and caulking should be redone if possible in the whole room. A new shower curtain is an inexpensive buy to improve the bathroom. Put out clean towels before viewings.
Storage areas such as closets and basement need to be uncluttered and as empty as possible. This might mean boxing items up and stacking them. It makes these spaces look much larger than if they were overflowing, and this way you will be ready to move as well.
As much as possible try to keep the beds made and dirty laundry out of sight, and make sure all the dirty dishes get taken care of as soon as possible.
After you have taken care of some of those items, new paint and blinds can make a huge difference. Try to use lighter colors, rather than dark or striking, to have universal appeal.
Good luck in selling your real estate. Remember to get the advice of an experienced real estate agent, and someone will fall in love with your well maintained house.

Before we can answer the question ?should you invest in individual bonds or bond mutual

funds?, we have to first understand the purpose of owning bonds in your portfolio. Novice

investors use bonds as an income generator, relying on yields to supplement living expenses

during retirement. Institutional investors and competent advisors, on the other hand, view

bonds as a tool to reduce portfolio volatility. Total return, not just bond yield, is what counts. If the purpose of holding bonds is to control portfolio risk, then owning bond funds, not individual bonds, is the appropriate choice.

Individual bond shares are not cheap. A single corporate bond can cost you $10,000 or more.

So, if a retiree with a million dollars decides to allocate 40% of his portfolio to bonds

($400,000), he would likely have to purchase at least forty different issues to achieve a

somewhat diversified bond portfolio. The higher costs associated with acquiring individual

bond issues may prevent many investors from sufficiently diversifying among different issues.

In contrast, an initial investment in a bond fund might cost only $1,000 to $3,000 depending on

if you purchase it in a retirement account or not. As a bond fund holder you can own stakes in

dozens, perhaps hundreds, of bonds with one purchase. Let?s take for example the Vanguard

Short Term Bond Index (VBISX). If you own an IRA, you can hold 642 distinct bond positions

with a $1,000 investment in the fund?a far cry from the 40 issues we purchased in the

previous example.

Costs

While individual bonds do not incur the ongoing management and operating expenses of bond

funds, they do have associated expenses including brokerage commissions/fees and bid-ask spreads) that all investors should consider. Furthermore, retail investors (as most of us are)get less favorable pricing (commissions AND bid/ask spreads) than institutional investors. The

costs of trading individual bonds are very hard to accurately pin down and commissions are

never fully disclosed. If ever there was an area for institutional traders to make obscene profits

in the markets, it?s the bond market.

When you purchase a bond fund, you know what the cost will be: a transaction fee and the expense ratio. There are a handful of low priced bond funds available, including the Vanguard

Bond index we discussed above whose annual expense is only 0.20%.

Safety

Many investors are under the impression that owning bonds is a risk-less transaction. That is a myth that results in a false sense of security. The fact is that bonds, whether corporate or treasury respond to daily changes in interest rates as well as credit conditions. Individual bond investors might take comfort in knowing that at the end of the maturity period, their principal will be returned. However, throughout the maturity period, their principal will fluctuate. As interest rates rise, bond principal will go down (since the bonds become less attractive to new investors). If the owner of the individual bond feels compelled to sell their position before the maturity date, they may likely take a loss during a period of rising interest rates.

Bond funds are much more liquid. Granted, bond funds do not have a fixed maturity (meaning

principal nor income is guaranteed). But, fund managers are constantly buying and selling

bonds within the portfolio in order to maximize interest income and capital gains.

Additionally, if you only own forty bond issues in your portfolio, having one or two of them

default can put a serious damper in your day. In contrast, because a bond fund holds

hundreds of bond issues, if a handful of them default the impact might be nonexistent.

The Benefits of Indexing

By now I hope I?ve convinced you that bond funds are more attractive than individual bond

issues. But, what type of bond fund should you buy?

There is a strong argument in favor of owning bond index funds instead of actively managed

bond funds. In general, bond index funds offer you broad bond market exposure for a fraction

of the cost of an active fund. All other things equal lower expense ratios result in higher returns for you. Furthermore, with actively managed funds, investors assume an additional level of risk: manager risk.

In conclusion, there are distinct benefits to owning bond funds in lieu of individual bonds.

Despite their ongoing expense, bond funds provide a better alternative in terms of diversification, liquidity, and the availability of reinvesting dividends. A low cost low cost bond index fund will help you achieve the portfolio risk control you need. Remember, just as with equity investments, the more broadly you diversify, the better results you will attain.

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