The Next Shoe To Drop and how did those Arabs buy that business?

The next shoe to drop will be the Commercial Real Estate market. Currently they are hiding the losses with corporate debt, but eventually they will have to reveal the loses.

My business offers me a unique view at the mortgage and banking industry. About 5 years ago I noticed hundreds of Arab and Indian/Pakistanie individuals purchasing gas stations, grocery stores, real estate, fast food franchise, etc., etc.

First lets look at the commercial real estate market and I'll tie this in with the foreign businesses owners.

FACT! Almost every corporation was using FAKE numbers for profits over the last few years! They were using what I've coined - "Expansion Profiting".

This is when a corporation or individual opens up a new location or a new business and they use a MORTGAGE to finance the business.

IMPORTANT NOTE - This was the major reason why my wife and I decided to pull our money out of the market back in Feb. 08!

Example:
Corporation or individual needs money to expand or start a business. Instead of leasing the property they decide to buy the property...WHY?????

Because they figured out a LOOP HOLE in the lending rules. They figured out with the help of Happy Go Lucky bankers that they could use the building as collateral and finance the entire business, building and working capitol into the mortgage.

We've started to see several corporation starting to pull back and closing stores left and right all across the country.

I noticed that this would be a problem when I started seeing the same type of franchise within a few miles of each other. Normally franchises offer a 5 mile radius to guarantee a good volume of business to a certain location. But after they started using this loop hole they didn't care about the 5 mile radius.

I have several associates that were put out of business by the same franchise that they bought into. Not to mention names but they have so, so sandwiches!

I must admit that even though I consider myself pretty smart "LOL" I really didn't figure this out until I started questioning my Arab and Indian friends about how they got the money to purchase certain businesses that I knew would cost thousands of dollars.

A good friend of mine from India purchased a BP gas station for $1,5 million dollars. Before that he owned a small Dollar Store.

For this loop hole to work you need two ingredients.

1) You need to know the loan officer. There were a few banks that the loan officer would allow individuals to refer their friends and that was as good as good credit.

2) You need a cash flow based business. Fast food, auto repair, gas station, grocery store, etc.

YES - many of these loans have went bad also! Many of these individuals were able to walk away from the business and not have any marks on their credit report due to the business being incorporated.

If you think that was great info - wait for my next update! You haven't seen nothing yet. I'm talking about MONEY, MONEY, MONEY!!!

Us African Americans need to do our homework!!!!! This SECRET is so incredible I need a few days or maybe a week to decide if I really want to reveal it.

If I reveal it I will probably lose some close Multi Millionaire friends of mine!

To sum it up...these corporations and individuals are having a hard time making the payments for the loans they took out.

The market will determine if this shoe will drop lightly or hard!

This Needs To Happen:
1) they need to refinance their debt at lower interest rates.
2) they need the consumer market to start buying again.
3) they need to hold or halt expansion.
4) they need to repay the debt.