Making Money while the Sun Shines

Monday, July 26, 2010

Dear Reader,

There's a guy I want to introduce you to. His name is Colin Murphy.

Colin has figured out a way the German government will pay you a net (after all costs) 13%-15% return on your money for 20 years...and maybe more for the following 15 years.

He's figured out a way small guys like us can profit from German government subsidies for solar energy.

Colin has figured out how to get the German government to pay you 3.75 times the going rate for electricity and make a healthy yield along the way.

Germany, and The European Union, have aggressive targets for increasing the percentage of energy generated from renewable sources. Germany's target is that 20% of its energy should come from renewable sources by the end of this year. To deliver, they need to offer pretty dramatic subsidies. They are doing this mostly on the supply side. The German government will guarantee to pay you a fixed price for solar energy you generate for the next 20 years. You have a guaranteed price and market.

The whole process is capital intensive. These solar panels are expensive. Colin has teamed up with bank that offers 90% financing on all your capital outlay. Rates are low...again with government support.

Of course, your solar panels need to catch the sunlight for this to work. Colin's contacts on the ground in Germany will secure the lease of the roofs of industrial properties. Partners on the ground will also be responsible for all maintenance and management for the duration of the 20-year lease.

There are many pieces to this but Colin has pulled them together. I'm no solar energy expert. What I do like about the way Colin's deal works is that a bank with expertise in this field is on the hook for 90% of your initial investment. This is a non-recourse loan. They know this field...do their due diligence...and say "yea or nay."

Getting into one of the deals follows straightforward steps:

1) Expression of interest and size of budget. You pay a refundable 3,000 euro deposit held safely in an escrow account.

2) Site location, project analysis and feasibility study (this will cost you roughly 2,000 euro and can be deducted from your deposit).

3) Bank due diligence and finance approval.

The entry point for your own solar farm can be as little as 40,000 euro ($51,495)...the bank finances the rest.

Your guaranteed and fixed energy price expires after 20 years. Your solar panels are paid for after 18 years. Your fixed lease on the roof also expires after 20 years, but you can extend it for an additional 10 years at the original fixed price plus inflation. These panels have a life expectancy of 35 years. Years 18-20 are seriously juicy: you are still paid top dollar but have no financing costs.

I'd like to give you the opportunity to meet Colin in person. That's why I've asked him to join me in Las Vegas for the International Real Estate Investment Forum.

Of course a deal like this isn't for everyone...that's why I'm making it a bonus session in Vegas. The entry point (unless you want to club together with friends and family) is $51,495. But if you can do this, what an opportunity. This alone is worth coming to Vegas to chat with Colin about. (Remember, you may be able to invest in one of these deals through your self-directed retirement account. We'll have experts on hand in Vegas who will tell you how).

Don't worry though if you don't have $51,495, liquid, and ready to go. In Vegas, you'll hear about deals with as little as $5,000 down...in roaring markets like Brazil. You'll hear about "off market" deals where developers will finance your purchase interest-free...or at rates far below market rates.

We'll begin taking registrations for the International Real Estate Investment Forum 2010 in two weeks...but with just 120 places, I expect it to sell fast. Make sure you hear about "first in line" places and special discounts by putting yourself on this priority list. You'll get the inside track on the speakers and opportunities we have lined up exclusively for attendees.

Ronan McMahon

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Posted Under:

profit play

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