In the following paragraphs you will find 1) How the club is formed
and whish is its main objective - or our main goal.. 2) How the Membership is created and maintained. 3) How the Monetary
funds are moved in and out the Club. 4) The selection process. 5) How Homes are bought and assigned and and How Mortgages
are created. 6) How to recover the "P&I" of a mortgage monthly payment; our P&I conversion to dividends. 7) Overview
of Monetary Flow Chart within the Club. 8) Secondary effects of our Club in our local economy ( through the application of
the National Economic Multiplier effect). 9) Secondary benefits and gains from the Club to the Membership.
Almost everyone of the above mentioned titles are detailed in the
present Web Site. Nevertheless, I will try to make a synopsis on all of them in the following manner.
1) The Club has a legal form and a legal name and address.
It may be a Corporation for profit, or a Non-Profit Corporation if we wish. Therefore, it has to pay its mere existence.
Show - to the governmental authorities and to its rightful owners - how it receives and how spends its money.
Like any other regular Corporation, maintains an accounting system - a collection of paper work stating its doings. In a capsule,
it is a legal entity, with a name, a physical address, rules and regulation, an administrative structure, and more important
a complete and clear understanding of its main goals and objectives.. And the main objective - or our main goal - of the Club
is to recover all that money we sent to a third party recipient - to a bank or a financial institution far away from our localities
- every time we make a Mortgage Payment on our homes...in the form of "Principal and Interest"... which is also known as "P&I"
paid to such institution.
2)Membership. To maintain a healthy pocket book for every member
of the Club - which is what we intend to do with the recovered monetary resources - the number of members needed to sustain
the Club's main objective is between 2000 to 22000 depending highly on the price of the Homes or Mortgages we will be working
with along the way and also on the amount of money every member will invest on the monthly basis in the form of Membership
Fees and additional investments to the Club - all that money received in this fashion will
be converted into ownership of the Club in the form of STOCKS & BONDS from the Club itself. Which in turn will
be determined -on the monthly basis - by the total sums of money collected every month by the Club. This, per se, will
be the actual capital acquisitions done by the Club to carry on with the Club main objective. The recovery of the Club member's
mortgages.
3) Through the collection of monthly Membership and the additional
monetary investments done by the Club members - on the monthly basis - the Club generates a substantial amount of money which
is turned around and New or Used Homes are bought and also New mortgages are generated when the Club buys out the already
existing mortgages of all those Club members whom already have and owe one to other financial institution other than the Club;
or to the Club itself... which can be the case when some member wants out of the Club and wants to sell the home or
do a refinance of his or her mortgage to recover his or her original and accumulated investment...
4) Once this money is collected the club has to make a decision
on how the money will be invested - purchasing a home or refinancing a mortgage - and who will be the the member to be the
recipient of such investments. This will be carried out in the form of a random selection process, which will be done in connection
to an outside indicator for the picking up of a membership number out of the total Membership registered with the Club. Once
this selection is done, the Club will know who gets the purchased home and Creates a new mortgage or who will be the member
whose present existing mortgage held by an outsider - bank or financial institution - will be refinanced and purchased by
the Club Membership. By doing this simple act the whole membership will be buying out- themselves - every mortgage existing
within all the members of the Club. Within time, the capital accumulation of the Club will be enormous and the growth process
will be of an exponential magnitude and trajectory. The total accomplishments of the Club will be to have bought all of the
mortgages of everyone of its members. Bear with me and discover how this is done and how it works.
5) Once the member recipient of the wining process is selected,
the Club goes and purchases "a" home for - by doing so creating a new mortgage which now will belong to the Club - or Refinance
that mortgage for that particular winning member out of the selection process - which he or she already has with another
financial institution - and by doing so a new mortgage is acquired by the Club members. At this point we know that we
have the right of collecting the monthly "P&I" on that mortgage. Now, how are we going to redistribute that money so received
back to the membership? This by itself will be the best feature this program has to offer; for this is how
the Club starts to nourish the individual Club members pocketbook and along the way to start a growth process in the local
economy; which in time it will be converted in a substantial and constant monetary resources flow - in and out- of the
Club. First, the 25% of those interest so collected will belong to the Selected winning member and the rest, and second, -
the other 75% - of the interested monthly received from that particular mortgage will belong to the rest of the Membership
equally. Also, we have to remember that every transaction carries with it a series of closing cost which will be paid to the REAL ESTATE COMPANY and to the MORTGAGE COMPANY - which both belong
to the Club, along the way to the Membership and by so doing those earnings will also go to the Club coffers. Along the way
again, every member will pay some expenses out of that recovery received by this process to defray the existence
of the Club; which will be determined accordingly to the actual status of the Club at a given time when designation are done
by the Club's directive. At this moment, an example is necessary to visualized our goal.
5 and 6 ) Will be accomplished by running the following example.
Let's assume that the mortgage in question is for the amount of $100,000.00 Dollars, the interest rate is of 6% and
the life of the loan is for 30 years. This is how it will be distributed
. "P&I"
Winner Total Membership
#Pmts
Total Mtg. Moth/Pmt. Principal Interest
25% Dist. 75% Dist.
1srt Mth.
$ 100 K $ 599.00 $ 50.00
$549.00 $ 137.25 $ 411.75
12th Mth $99400
$ 7188.00 $ 600.00 $6588.00 $1647.00
$4941.00
The points to be noted at this moments are the following:
a.- A mortgage of $99400.00 is is still
owed to and owned by the Club members.
b.- There is a principal being accumulated through time.
c.- The selected member wins a good chunk of money 25% - of the interest earned per transaction - or $1647.00
Dolares on the yearly basis, money he or she was never going to see again otherwise. this "P&I" recovery
can only be done if we maintain close control on its process In this case it calls for $1647.00 on the yearly basis; way above his or her original membership or additional
investment. Can you imagen if we were to buy many more mortgages on the monthly basis? .
d. - The rest of the Club members will also benefit or gain in
the recovery of those interest Dollars earned on the monthly basis. When the remaining 75% of that total - $4941.00 Dollares - is divided by
the number of Dollars every member has invested - it may become a fraction of a dollar - but it is ownership of the
total amount of dollars invested in the Club by all the Club members plus the income generated by the transactions
themselves which is also shared by all Members of the Club, and in time these growing sums of money will amount to an enormous
quantity of Dollars running in and out the Club coffers; and all of them will be owned by the Club members.
The circular movement of the money trail created by
this means is what is going to performed the miracle of more money running in and out the member's checkbooks and along
the way and in time nourishing our local economies in an exponential velocity - when applied through the present national
Economic Multiplier, the Cycle and Velocity of Money in our Economy and mostly when close attention and control is applied
by the Club's Directive supervisory.
7 and 8.) Are discussed in detail in the work presentation in the
Web Site going to the Tables 1st & 2nd Presented Down Belowe and on to the "Excel" presentation files - of
the whole work itself. Nevertheless, I am going to mention the utilization of the Credit Union Concept when and at and
about the handling of the Club excesses of capital accumulation, when it becomes available. Data and Flow charts of
that data will be generated through time to carry on with this whole scenario of economic growth movements.
Once again, bear with me if you are really very much interested.
And if you consider this to be a gorgeous idea, please pass on the word and facilitate the web address to your friends and
relatives...it may bring great good to a lot of people you love and cherish the must.
Please read more about thi topic...!
http://www.hectorasaenz.com/id28.html IN ENGLISH
http://www.hectorasaenz.com/id104.html IN ESPAŅOL
THE AUTHOR
Hector A. Saenz Sr.
HI...GUYS...!!! YOUR ATTENTION PLEASE...!!!
