Profile cover photo
Profile photo
Matthew Roddan
1 follower
1 follower
About
Posts

Post has attachment

Post has attachment

Post has attachment

Post has attachment

Post has attachment

Post has attachment
Leverage ~ An Introduction

Leverage is a technique that’s deployed to multiply one’s losses or profits, typically through buying assets using borrowed funds hoping for more income through asset appreciation, which would eventually trump the interest borrowing entails. However, there could be a risk of borrowing cost trumping the income that asset appreciation could generate, which means the losses would multiply further. Leverage can multiply the profits when the asset bought through borrowing is sold and the returns exceed the costs, though when it goes the other way round, it could multiply the losses. Originally called levering, it is now known as "leveraging" by finance experts. “Leverage” is quite tricky to understand and confusion is partly because of the broad-spectrum use for the word. 

Let us understand this in more practical terms with an example. As Matthew Roddan would put it, understanding the nuances of investment and financing is important in the realm of business. That’s one reason why Project Ninety Nine offers a platform to share and discuss the nuances of investing and business. Mortgaging a home is a common scenario. When homeowners mortgage their homes to deal with a financial crisis and keep up the repayments until they’re able to flip it for profits, or redeem themselves from their issues, it is called leveraging. 

Not many of us want to get into more debt to come out of a problem, but leveraging is all about taking a calculated risk. Generally, the borrowing and buying of asset is done during a downtime, and the selling of the asset obtained through leveraging is sold when the market is good for a profit. This is done quite often and there are times when it could go wrong, like during the recent economic depression. However, the key to succeed with leverage is making practical assumptions and understanding the risks involved, while making key decisions. 

Leverage is not a new concept and has been around for a while, which can be vouched by numerous businesses and individuals who have taken this route. Leveraging usually works when done right and is backed by thorough analysis of possibilities. Investments also work likewise, a reason why investors always ask for a business proposal and financial statement. It is important to understand that businesses are calculated risks and investors often lend or investors after analyzing the possibilities – leveraging profits or managing losses. Understanding the risks involved in investing, Project Ninety Nine started by Matthew Roddan intends to give a platform where investors can discuss, strategize, plan and share knowledge. This way, profitable ventures could be identified, potential entrepreneurs identified and groomed, etc. In short, leveraging is an investment strategy that can propel one’s finances or doom them further, depending on how it is done!
Photo

Post has attachment
Photo

Post has attachment
by Matthew Roddan

Post has attachment
An introduction to Project Funding by Matthew Roddan

Project Funding ~ An Introduction by Matthew Roddan

Project funding is financing projects based on projections and a business proposal. In other words, these are more like non-recourse loans, based on projections for a project and repaid in the form of profits from the business. Money is raised from investor(s) or sponsor(s) and they’re promised control of the company in case the business doesn't turn out as projected or expected. 

Originally, mining, telecommunications and transportation related companies were keen on getting investor(s) or sponsor(s). However, project funding is no longer industry specific. When checking out a potential project, a lot of factors and risks should be weighed up – technical, environmental and financial aspects, political risks, market status, etc.  Project funding can also be arranged through loans, crowd sourcing or through the internet from sites like Project 99. 

Long-term projects aren’t usually taken up, instead investors opt for long term projects like constructions on a JV basis. The investor(s) or sponsor(s) decide the financial model based on project appraisal report. This will include the projections of the project in question and based on the calculations, a suitable financial structure is arrived at. 

When individuals or firms are looking for sponsor(s) or investor(s), it is important to understand they would come under scrutiny. Their proposal would be scrutinized thoroughly and all criteria will come under review. Generally, investor(s) or sponsor(s) have their ideas, interests or specifics on choosing projects and executing the same. It is a good idea to have a list of questions to ask a prospective sponsor(s) or investor(s) to know if it is a mutually beneficial partnership. 

Anyone who is investing or sponsoring a project would want to see what efforts are taken at the other end. That’s one reason why individuals or firms looking for project funding go with a detailed proposal and financials. This shows planning, research and analysis, which can persuade interested sponsor(s) or investor(s) to take the plunge. Project funding could be tricky in a few situations due to political factors, currency or legal system and other risks. In such scenarios, most prefer having a mediating party to get through with the legal aspects. 

Matthew Roddan of project funding site Project 99 says the site though launched recently, they have an innovative project funding concept. They intend to help project owners gather funding through self-help method. 

Matthew Roddan of project funding site Project 99 says that they’re not a fund offering or investment opportunity as many think. They’re offering a platform for like-minded individuals to share and gain information. In case a project is of interest and an investor wishes to proceed, they’ll be happy to come up with a proposal and get the process rolling. 

Matthew Roddan of project funding site Project 99 also adds that private placement programs have garnered a lot of interest, though not many are able to crack the code of success for it. While they’re real programs, not many can make the cut due to the large amounts involved in qualifying. Matthew is confident they can get over this problem, by pooling funds to reach the high threshold and reach success. Besides, the control is vested with the investor(s) and they’re funds and the control for their account remains with them and they can pull out anytime. Looking for reliable project funding? Head to Project 99.
Wait while more posts are being loaded