ONLINE CLASS: Alternative Methods of Financing Wind Farms (continued)

This class is available at http://goldpactpower.com/classalt.html


SOLUTIONS: PART V - Earning our way out of the economic crisis by using Banker Math

The calculator below from BTUBANK.COM is a simplified formula for how banks profit from investing in projects: in this case, renewable energy projects. The figures are guidelines and are not meant to be conclusive. For example, the rent of a brick and mortar building is not included, nor are costs such as insurance, marketing, staffing and other costs required to run a bank.

However it should also be noted that these expenses are minor compared to the level of profit your bank earns by investing in projects with a solid ROI (return on investment).

Follow these steps to use this calculator. Each time you run the calculations, the POP UP will show the most important aspects and the lower portion of the form will show new figures.

  • Enter a CD rate from a typical bank. The chart on the screen shows these are generally less than 3%. Try 1.95%: a common rate these days, or call your local bank and ask them for their CD rate for $10,000.

  • Leave the BTUBANK CD rate set at 10%: BTUBANK CD rates start at 10% minimum and go up from there.

  • Leave the Project ROI set at 20%. To qualify for a BTUBANK loan, a project must have an ROI of 20% or more. THAT is how BTUBANK pays such a high CD rate and still earns a profit.

  • Set the Investor Project Equity at 30%. This is the equity (stock) Gold Pact Power will give to any Team made of Land Owners or Individuals who graduates from the class. This 'stock' is in addition to the money your Team earns by forming the bank.

  • Set Investment Percentage to 1%. If you want a more conservative estimate, set this to 3% or 5%. If you have a 'questionable' background, such as poor credit, or you don't believe your neighbors will be interested in a CD rate of 10%, set this to 5%, 10% or more. We suggest you start with 1% the way most big bankers do: you can always change it later.

  • Set the Project Size to $500 million. This is a modest wind farm. Many GPP projects are over one billion dollars, but lets start at $500 million. If your community is already in a financially weak, crippled state, you may wish to lower this to $50 - $100 million.

  • Click the RECALCULATE button and then scroll down and read the figures, especially:

    1. The TOTAL RETURN ON INVESTMENT (ROI) FOR THE COMMUNITY, and below that;

    2. The Additional Benefits section.

  • Study these figures carefully and play with the input numbers until you understand how this financial model works, who makes the bulk of the profit (the bank you own and the community).

  • ...and most important to the team at Gold Pact Power...watch the last figure in the table labeled "Funds for schools, youth and family agencies."

QUIZ: SECTION II - Innovative solutions you can apply to you and your community

Hopefully by now you understand how we think at Gold Pact Power, how we design projects and the financials surrounding projects and how we have designed this method to help you help us save America.

THE QUIZ: to pass this part of the class you simply need to enroll in another class and do it today!

Over the next few days
you will be working with teams
of other Land Owners
who are just like you.

If this is a program you want to explore, please enroll today and lets get started. Time is of the essence and we're already late for the party. The American dream is a train wreck, our national economy, state and community based finances are in flames, and you and I and the Teams we form are the Firefighters who have arrived to clean up this mess.

Don't expect President Obama, the U.S. Congress, DOE, T. Boone Pickens, Shell Oil or anyone else in Washington D.C., Europe or China to do it for us. Its up to you, your neighbors and corporations you trust. I hope by now you clearly understand the way we think at Gold Pact Power and trust our motives, objectives and focus on Land Owners and communities. If not, I suggest you again review the financial figures in the table above relating to Schools, Youth and Family Agencies: that money comes directly out of GPP profits and is one of the largest figures in the entire table. At the top of this document, I told you why we created Gold Pact Power and I meant it the first time.

I am waiting for you and so are the other Land Owners and Team Members who are taking this class even now as you read this text. The sooner we get you up to speed with the rest of the class, the better for everyone.

Thank you for reading. Try to have a great day and hang in there. We're not done fighting for our nation yet; as John Paul Jones, Father of the American Navy, once said "I have not yet begun to fight!" at which point he creamed the British Navy. It is my hope that we do not lose the battle before us. Some politicians have suggested they wish to change the U.S. Constitution, form a larger nation with Canada and Mexico and other 'alternatives' to the American form of Government. Others have suggested that we will have no choice: that as the national debt rises and we go bankrupt, our only alternative will be to bow to the will of our creditors: the bankers of Europe, Asia and the Middle East.

While I appreciate that these folks have a right to their opinion, I'd like to suggest a different approach to solving our problems: we earn it with innovation, team work, education and a desire to control our destiny as we have tried to do for more than 200 years.

That destiny and future depends on rural America standing up for your rights; the right to be paid a decent rate for your windy land; the right to earn a great CD rate and a profit at your local bank or credit union that funds projects for your local community; the right to invest in projects within your local community and America at large; the right to a good education and money for your schools, youth and family agencies; the right to a reliable pension and retirement program; the right to healthcare for every man, woman and child, paid for not by tax dollars, but by employed individuals earning a great wage and of course, the right to learn and earn a great wage.

This is the future of America IF you want it to be that way. Our current course is not so bright, but there is still time to change if you will stand up, learn, earn and share your knowledge with others who are interested in both profiting from the boom in renewable energy and who want to make a positive impact on America, right here, right now, in our life times.

The clock is ticking. I suggest you take a break, go for a walk, gently talk to your neighbors and when you're ready to start learning, click the DOWNLOAD link at the bottom of this page. It will open a bunch of windows that help you understand the inter-relationships between banks, carbon markets, Gold Pact Power and you and your neighbors.

The most important page is the class page at www.kwhexchange.com which will teach you how to form teams with other Farmers, Ranch owners and land owners just like you. These people will be on your Team, standing at your side, protecting their land and your land and America.

I am counting on everyone to work together, both for yourselves and for our communities and our nation which needs us all today more than it has ever needed us before.

Thank you for coming to class today. I am honored. Now go take that walk, take a break and when you're ready, come back here and lets get started.

Sincerely,
Craig Mead
Founder and CEO
Gold Pact Power, Inc.

History Lesson: John Paul Jones
p.s. for those of you who already have a GPP lease and are wondering if this is what it will take to get your project off the ground.

The reality is the investors we have spoken to only want to talk about the larger acreage. That was one of the main reasons we developed this method and the page at http://goldpactpower.com/stepone.html that explains how to organize smaller parcels into larger areas through community meetings. We're one of the only wind farm developers who is interested in the 'little guy' and we will continue to look for ways to bring you into the wind industry.

That said, unless you help us help you by organizing your neighbors into larger parcels, funding a small 150 acre project, or really anything under 1000 acres, will be tough: not impossible, but tough just the same.

What you CAN DO is use the class described on this page to leverage your land into an INVESTMENT IN A WIND FARM that can pay you ten times more than an actual wind farm on your windy land. That's why we developed this class and a 'Team Approach' so you won't be alone. We have a lot (tons) of small plot Land Owners just like you and together you can make a huge difference.

For you large land owners, the reality is with the current global economic crunch, the larger parcels will be funded in an order that may or may not make sense to you or me, but makes sense to the Investors. YES we have projects on the desks of Investors and Bankers who are reviewing them and some investors are in the U.S., however as the class explains, many of them are overseas. That's the reality of finance these days: the U.S., (especially Manhattan and Washington D.C.), is broke. Anyone pouring money into the New York Stock Exchange or buying U.S. Treasuries today is blind.

If you want to be Patriotic and focus YOUR TEAM ON INVESTING IN YOUR WINDY LAND the class on this page is exactly the way to do it. It was designed to give the small guy an ability to invest in you. If you want to be part of the decision making process that directs those funds to your land, you're going to have to take the class, join a well-funded team and get with the program.

You have other choices: you can wait and hope the economy recovers and we can find more investors so we can fund additional large tracts for a wind farm, or you can even go sign up with another firm: we've never held a crowbar to you and we never will. You won't earn as much, but you are free to do what you want and explore any option you believe is best for your family.

We hope you choose to stay with a firm you trust, with neighbors you can trust and with a Team you can trust. That's how we built this company and we're sticking to it.


Note: The MTN developed by Gold Pact Power and BTUWorldBank method never involves speculative "Hedge Funds, Trading Platforms, Corporate Bonds or Public Stock" or any other potential risks or liabilities beyond the description above. MTN instruments are safe, well-proven, time-tested financial instruments used by International Bankers for centuries. These instruments work best when applied to well-designed projects; not sub-prime mortgages! MTN financing generally achieves and often exceeds anticipated ROI projections. Always consult licensed, experienced legal and fiscal advisors before chartering a bank.


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