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Plan 100

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Plan 100 is a viable stimulus for the economic crisis affecting our country. It centers around the idea that if taxpayer money is going to be used for a bailout, then it should be invested …

Plan 100 is a viable stimulus for the economic crisis affecting our country. It centers around the idea that if taxpayer money is going to be used for a bailout, then it should be invested intelligently, with complete transparency, with local people and with respect to taxpayers as the investors they are.

Published in: Economy & Finance, Business

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Transcript

  • 1. A plan for the economy. A plan for now. A plan for America. By Billy Procida William Procida Incorporated 456 Sylvan Ave. Englewood Cliffs, NJ 0732 201-871-1177
  • 2.
    • “ A good plan today is better than a perfect plan tomorrow.”
    • - General George S. Patton
  • 3. The Objective
    • Establish value
    • Do it fast, do it smart
    • Save who can be saved
    • Be responsive, intelligent and creative about those who cannot be saved
    • Learn from past mistakes
    • Control and monitor the process closely
    • Don’t lose the taxpayers’ money trying to fix things
    • Don’t let those who own loans unjustly profit
  • 4. Plan 100
    • 100 Investment Managers
    • $100 Million Each Manager
    • 100 Days to Deploy Capital
    • 100 Mile Investment Radius
  • 5. 100 Investment Managers
    • Investment managers shall be identified and selected within 60 days pursuant to a Request for Qualifications
    • Investment mangers’ criteria will be 10 years minimum experience in real estate - preferably in local market
    • Compensation to be standardized and incentive based 2% asset management fee, 25% of profits above a 5% annualized return
    • 2 year investment period
  • 6. Schedule
    • Government approval by March 1 st
    • Issue Request for Qualifications by March 2 nd
    • Submissions by April 1 st
    • Engagements by May 1 st
    • Capital deployed from May 1 st through September
    • Oversight team to review and monitor investments throughout entire process
  • 7. $100 Million to Each Fund Manager
    • Will create $10 billion of immediate liquidity to market
    • Money will be used to either buy or create mortgages for all types of real estate
    • All money will be in separately managed accounts
    • Will stimulate other capital to get off the sidelines and participate in real estate
    • Should result in 10% to 20% returns to the taxpayer
    • Large banks benefit by getting liquidity, but at a fair price for the assets they sell
  • 8. Investments
    • Permitted: Purchase of loans – performing and non Purchase of REO Origination of loans
    • Non-Permitted: Purchase of assets/loans to or from affiliates Purchase of securities or bonds Purchase of stocks Purchase of companies
  • 9. 100 Days to Deploy Capital
    • All investment managers will be required to deploy capital within 100 days
    • Investment managers will continue to make investments for up to 2 years
    • Solves the problem by creating a specific time frame
    • Homeowners and business owners will benefit from the new capital being made available
  • 10. 100 Mile Investment Radius
    • Provides for the taxpayers money to be invested locally and intelligently
    • Enhances asset management since investment managers will be in close proximity to the assets they invest in and know their local vendors
    • Will create local jobs
    • Purchased loans will be more quickly and intelligently restructured
    • Radius may vary based on locale
  • 11. Organization Chart
  • 12. Typical Overhead
    • Position Cost Per Total
    • CIO (1) $200,000* $200,000
    • Originators (2) $100,000* $200,000
    • Due Diligence/A.M. (2) $100,000* $200,000
    • Finance Accounting (2) $100,000* $200,000
    • Administrators (3) $67,000* $201,000
    • Sub-Total $1,401,000
    • Marketing $50,000
    • Legal $250,000
    • Accounting $100,000
    • Insurance $50,000
    • Total $2,000,000
    • Asset Management fee (2% on 100 million) $2,000,000
    • *Includes taxes to be withheld later.
  • 13. Conclusion
    • Only Main Street can solve the issues of value and local confidence
    • The taxpayers are entitled to a profit just like anyone else investing today
    • The taxpayers deserve accountability
    • Program can be easily expanded to 1,000 investment mangers and can be used with other asset classes
  • 14.
    • This plan was created by:
    • William Procida
    • www.procida.com
    • For more info on Plan 100, please visit www.plan100.org