Al & Shelley DeMelo

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February, 2014 Issue 9, Volume 2

Sharing our journey with you...

De Melo's Da News

The Month of Love

February! Burr

It has been a fabulous February even though it still is no sign of spring weather yet.  We are waiting patiently for the signs though. 

We hope lots of love was in the air for you this month. 


Baby It's Cold Outside

Baby it's cold outside

Of course I can't fail to mention the really cold weather everyone is enduring this year. It is hard to imagine that most of North America is totally frozen. This vortex really is out of control. At any rate... I sure hope the spring warmth returns soon.

Love is really is a driving force! It is the only explanation I can think of that could get me out in the freezing cold, I still take twitch out for his walk in the bone chilling cold. Check out my funny outfit. Twitch doesn't care as long as I am there with him. Still.. it is a darn cold winter people! This too Shall Pass! (Hopefully sooner rather than later.)

LDinner with the familyMom, John, Al and I had a chance to have a nice family day holiday this month. They were visiting from Saskatchewan, hoping to get a little warmer. HA! the Polar Vortex would have none of that. The weather their entire stay was just like home. It was lovely nonetheless. We did have a nice time together. Here's a snap of us at dinner.

Curve Balls

Life's Curveballs

Life often throws you curve balls. Usually it is a test to see how you respond to one, and set about a recovery plan.

 I often see others blaming outside forces for their situations, which may not really provide you with an accurate picture of what you need to think about and do in response to the situation. It is always a good idea to take a look within. 

Our business has been in flux, and as a result, Al and I are back working together full time. One benefit we have seen is our working relationship really has improved dramatically. We are on the same team and are both working together on our goals. We attribute our success in this challenging time due to our self-growth, the business systems we put in place over the years, as well as our positive attitude. We have no time to blame. We are taking responsibility for what we created. One crucial lesson is that we learned the importance of having a plan B should plans not go according to what we expect.

Gold eggs in basketYou do have more control than you think. Remember not to keep all your eggs in one basket as that can be devastating. Diversification is key, as is having multiple streams of income. I cannot express the importance of seeking out like-minded people, mentors, coaches, anyone you think may be able to give you some sage advice. You don’t have to go it alone.

Science by Numbers The Number 2

Number 2

Returning to the science by numbers series, today we are talking about people who are "Two's". "Two's" are very social. They really love to mix and mingle with people and bring people together for peace and harmony.

People are naturally drawn to them as they are very kind, generous and compassionate. They can be very successful in many different ventures as they possess a lot of patience and understanding when dealing with different situations.

A "Two" can be moody at times, (Though can't we all?) It is important for a "Two" to look within for their happiness as they tend to rely on other people and outside circumstances to make them happy.

A "Two's" tendancy toward procrastination can be strong. They could be very mindful to be careful not to procrastinate too much. Completing projects will make them much happier!

Private Lending - Having a Reserve Account

At the meeting with Al, George and Steve

Al took a trip to Los Angeles for a Private Lending meeting this month. (Here's a picture of Al, George and Steve in the background.)

During the weekend course some of what Al learned was about the need for investors to balance the risk of the investment with the investment return.

Have a Reserve AccountPart of balancing your risk is knowing some key factors which will help you in the assessment. One that we will cover today is about the key factor: having a Reserve account.

Having a reserve account is critical to you being able to cover any emergencies. The other thing you need to know is how much to allocate to the reserve account.

As the number of loans you have issued increases, then your reserve account and your risk goes down. For Example:

Consider this scenario: $100K Invested + $100K Other Peoples Money (OPM) invested. Total of $200K invested in a second position loan.

You find out that our borrower has run out of rehab funds. You discover he stopped making making payments on the first position a few months ago and he failed to maintain the insurance. You are now expected to:

  • make the first loan current
  • help make the rehabbing continue
  • Keep the Insurance current
  • Maintain your debt obligation to Your OPM source

You must have reserves for these types of situations should they occur. How much do you allocate? Enough to cover worst case scenarios.

We are looking forward to our next edition... We are sending the luck of the Irish to everyone! Till next month... Smiles and hearts to all!

Al & Shelley