In another case, Northwest Airlines’ machinists union established a “Farm Out Committee” to review any contracts Northwest contemplated offering to outside companies. Although the union doesn’t insist on doing everything itself, it negotiated with Northwest the option to bid on the business first. The union acknowledged management’s need to procure resources with the best possible [...]
Archive for the ‘business’ Category
Where to look for attractive loan offers
Inour study we have highlighted a solid black line that represents the “true” efficient frontier. It is estimated with the “true” means and variance–covariance matrix of asset returns, thus neglecting skewness and kurtosis of the underlying return distributions. However, for the assessment of the effect of errors in parameter estimation on realized risk/return profiles this [...]
Becoming emotionally involved in a credit
I walk away from most deals at this critical point. I make this statement because by now most people are emotionally involved in the property and the process and are reluctant to say no go to a deal. It takes me about thirty minutes to do the Five Step Property Valuation process once I have [...]
Credit for property is a good investment
Before we go any further, I want to point out that if after your analysis you don’t think the property is a good investment, in other words, if the net cash flow is too low, then you may need to walk away from the deal or offer a much lower price to make the numbers [...]
Establishing initial credit price
We’ve arrived! We have an offer price! But there’s something missing. Oh, yes, you’re probably wondering what the seller’s asking price was on this property. I won’t keep you in suspense. The asking price was $338,000. Of course, you’re thinking that sounds really high. Here’s an indication of just how high that price is. If [...]