Saturday, January 29, 2011
How to manage a business?
If you have just started out as an entrepreneur then you need to learn how to manage a business successfully. Starting your own organization needs a lot more than just financial investment. We will tell you the important qualities that will make you a good business manager. Have you always wanted to own a small business that will allow you the opportunity to be your own boss? While starting your own cafe or book shop may seem like a distant dream, once you have your initial capital in hand, running your own business can be child's play as long as you learn how to manage a business effectively. If you want to manage a small business, then you need to be aware of the responsibilities that come with the job. Depending on what the business is, your responsibilities can range from ordering the things you need, managing the employees, assigning their duties, managing accounts and finances, marketing and advertising the place, customer relations, etc. Your key responsibilities can seem overwhelming, with effective management skills you will be able to run an organization pretty well.
How can I build business credit with the help of business credit cards?
Another important advantage of getting a business credit card is to build a separate credit history for your business. Don’t forget to register with a business credit bureau such as D&B or Experian to begin establishing your business credit immediately. By using your business credit card and keeping up with your payments on time, you can be assured that you will be building excellent credit history for your company.
Every business is confronted with financial challenges sooner or later. You may not need financial assistance at the moment but by the time you need to apply for a business loan to help you with your business projects, having a solid business credit history will help you secure an approval more easily. Aside from getting easy approval with your applications, having excellent business credit also guarantees that you’ll be offered better rates and terms by lenders.
In summary, getting a business credit card is beneficial in two ways- for separating personal from business finances and for building up a separate credit history for your business. If you’re a business owner or planning on starting up a business of your own, this matter is definitely worth the thought.
Every business is confronted with financial challenges sooner or later. You may not need financial assistance at the moment but by the time you need to apply for a business loan to help you with your business projects, having a solid business credit history will help you secure an approval more easily. Aside from getting easy approval with your applications, having excellent business credit also guarantees that you’ll be offered better rates and terms by lenders.
In summary, getting a business credit card is beneficial in two ways- for separating personal from business finances and for building up a separate credit history for your business. If you’re a business owner or planning on starting up a business of your own, this matter is definitely worth the thought.
Thursday, January 27, 2011
How to Manage a Business Effectively
Learning how to manage a team and effectively turning a business into a profit making organization requires you to imbibe a lot of skills and work on several things like leading a team and managing employees.
Leadership
One of the most important skills that any effective manager needs to possess are leadership and management abilities. Without proper leadership a business can flounder. You need to able to make good decisions and solve problems as and when they come. Being a good leader does not mean that you take all the responsibilities on your head. In fact it means that you need to be able to delegate responsibilities and ensure that your employees perform all the tasks that they have been assigned effectively. Another important thing to keep in mind is that while managing business you are responsible to create strategies in order to develop the business. While learning about what makes a good manager, many people forget that one of the most important duties of a manager is not only to ensure that the business is run smoothly but also that it makes profits. As a leader you need to think of opportunities and possibilities that will allow your business to grow. It is important to understand and imbibe this while learning how to manage a business.
Employee Management
As a manager it is your duty to ensure that your employees are motivated and give their best to the job at hand. Ensure that your employees are satisfied and that you are approachable in case anyone has any problems. Treading the fine line between being a boss and a colleague is important. While they should know that you are there to solve their problems, they should also be aware that at the end of the day the employees are reporting to you. Good employee management also entails that you treat your employees with the respect they deserve. Avoid reprimanding or disgracing your employees in front of other employees or customers. Never get into petty fights with them or bad mouth them. If an employee confides in you about something, it is important that you are discrete about the same. Good manager qualities such as these and managing business properly will ensure that you command respect from your employees.
Marketing the Business
One of the main duties of an office manager is ensuring that you market and advertise your business well. This is crucial for successfully running a business. While trying to understand how to manage a business, it is also important that you learn what is critical to marketing a business like proper market research, good customer service, deciding on your target audience, proper packaging and pricing, and advertising your business properly. While you can always use traditional advertising techniques like newspaper ads, radio spots, as a small business one area you must target are social networking sites. Using technology for business management and advertising gives your business a much needed edge.
Awareness about Regulations
Effective managerial skills need to be combined with an awareness about the laws and regulations that you need to follow so as to ensure that your business does not become one of those organizations that is charged with non-compliance. Pay your taxes on time and understand taxation processes. If you have a successful business it is only fair that you pay what you are due for. Insure your business against any probable accidents and mishaps. As an owner cum manager there are some important decisions that you will have to make which includes taking proper insurance for your business. It is also important that you understand the legalities that are connected to your business. While you do your bit, it is essential that you know where to go for assistance in case you are being impacted by unfair regulations. Understanding the laws that protect you and knowing what resources are available to you for help, are important while managing business.
While these are some of the necessary skills that you need to educate yourself about while learning how to manage a business, it is also important to learn how to manage a business budget. Understand your finances and capital; if you are borrowing money for your business from a lender then plan out how you are going to go about repaying the money. Financial planning and growth are important aspects of business management. As important as it is to manage your business effectively, an important aspect of management development is also to plan your exit strategy. It is important to learn how to go about selling or shutting down your business if need be. This is an important lesson to be learned while mastering how to manage a business office, which is generally forgotten.
Investments
Definition of investment contributes to purchase of financial product which will earn good returns in future. The modern era, so frequently referred to as the "information age," has brought about a new breed of investor who is both savvy and equipped with the necessary technology to make informed decisions. This, coupled with the creation of many new investment vehicles, has transformed investing from owning a few stocks and having a passbook savings account to a more detailed and advanced activity. Now, brokerage firms offer a variety of investments, including equities, bonds, CDs, REITs, mutual funds, money market funds, government treasuries, real estate, options, futures, and other derivatives. The Internet, so crucial in relaying information, is an important source of data for today's investors. The articles herein provide beginner investing information, information on what is the basic concept and the meaning of investment and some of the best investment strategies, stock investment advice and help for investors on investment planning, management and strategies, venture capital investment and resources on investment services and firms. Resources that describe about the importance of good investment plan through different types of investments like real estate investment, stock investments to savings bonds and banking investment.
The history of the word 'Investment' goes to back to the Latin word 'Vestis'. Vestis meant a garment; it was the act of putting things, money and all other resources together for some big purpose. Economic savings is the need for the hour. The people who invest gain profits in a fair way, which is through interest ratio. If you look at the current scenario people are still facing a lot of financial problems, the economic recession has ripped apart the world's most powerful economies. People lost their jobs, companies faced bankruptcy and innumerable problems came up to the surface and scarred the financial stability of the world. So I think the economic downturn is a great lesson for all of us out there and it's time that young adults learn something about good investments for young people.
Suppose you've just received an awesome graduation gift, you open it and see that it's hard cash. No matter what the amount is whether it's a mere USD 500 or a meaty USD 5000, you are now with a responsibility of what do with this money. Your mind must be filled up with thousands of temptations, a holiday, a new game or TV, or a new car. Just keep this all aside for a minute and concentrate on investing your money so that you can get the double of what you invest in some time.
Leadership
One of the most important skills that any effective manager needs to possess are leadership and management abilities. Without proper leadership a business can flounder. You need to able to make good decisions and solve problems as and when they come. Being a good leader does not mean that you take all the responsibilities on your head. In fact it means that you need to be able to delegate responsibilities and ensure that your employees perform all the tasks that they have been assigned effectively. Another important thing to keep in mind is that while managing business you are responsible to create strategies in order to develop the business. While learning about what makes a good manager, many people forget that one of the most important duties of a manager is not only to ensure that the business is run smoothly but also that it makes profits. As a leader you need to think of opportunities and possibilities that will allow your business to grow. It is important to understand and imbibe this while learning how to manage a business.
Employee Management
As a manager it is your duty to ensure that your employees are motivated and give their best to the job at hand. Ensure that your employees are satisfied and that you are approachable in case anyone has any problems. Treading the fine line between being a boss and a colleague is important. While they should know that you are there to solve their problems, they should also be aware that at the end of the day the employees are reporting to you. Good employee management also entails that you treat your employees with the respect they deserve. Avoid reprimanding or disgracing your employees in front of other employees or customers. Never get into petty fights with them or bad mouth them. If an employee confides in you about something, it is important that you are discrete about the same. Good manager qualities such as these and managing business properly will ensure that you command respect from your employees.
Marketing the Business
One of the main duties of an office manager is ensuring that you market and advertise your business well. This is crucial for successfully running a business. While trying to understand how to manage a business, it is also important that you learn what is critical to marketing a business like proper market research, good customer service, deciding on your target audience, proper packaging and pricing, and advertising your business properly. While you can always use traditional advertising techniques like newspaper ads, radio spots, as a small business one area you must target are social networking sites. Using technology for business management and advertising gives your business a much needed edge.
Awareness about Regulations
Effective managerial skills need to be combined with an awareness about the laws and regulations that you need to follow so as to ensure that your business does not become one of those organizations that is charged with non-compliance. Pay your taxes on time and understand taxation processes. If you have a successful business it is only fair that you pay what you are due for. Insure your business against any probable accidents and mishaps. As an owner cum manager there are some important decisions that you will have to make which includes taking proper insurance for your business. It is also important that you understand the legalities that are connected to your business. While you do your bit, it is essential that you know where to go for assistance in case you are being impacted by unfair regulations. Understanding the laws that protect you and knowing what resources are available to you for help, are important while managing business.
While these are some of the necessary skills that you need to educate yourself about while learning how to manage a business, it is also important to learn how to manage a business budget. Understand your finances and capital; if you are borrowing money for your business from a lender then plan out how you are going to go about repaying the money. Financial planning and growth are important aspects of business management. As important as it is to manage your business effectively, an important aspect of management development is also to plan your exit strategy. It is important to learn how to go about selling or shutting down your business if need be. This is an important lesson to be learned while mastering how to manage a business office, which is generally forgotten.
Investments
Definition of investment contributes to purchase of financial product which will earn good returns in future. The modern era, so frequently referred to as the "information age," has brought about a new breed of investor who is both savvy and equipped with the necessary technology to make informed decisions. This, coupled with the creation of many new investment vehicles, has transformed investing from owning a few stocks and having a passbook savings account to a more detailed and advanced activity. Now, brokerage firms offer a variety of investments, including equities, bonds, CDs, REITs, mutual funds, money market funds, government treasuries, real estate, options, futures, and other derivatives. The Internet, so crucial in relaying information, is an important source of data for today's investors. The articles herein provide beginner investing information, information on what is the basic concept and the meaning of investment and some of the best investment strategies, stock investment advice and help for investors on investment planning, management and strategies, venture capital investment and resources on investment services and firms. Resources that describe about the importance of good investment plan through different types of investments like real estate investment, stock investments to savings bonds and banking investment.
The history of the word 'Investment' goes to back to the Latin word 'Vestis'. Vestis meant a garment; it was the act of putting things, money and all other resources together for some big purpose. Economic savings is the need for the hour. The people who invest gain profits in a fair way, which is through interest ratio. If you look at the current scenario people are still facing a lot of financial problems, the economic recession has ripped apart the world's most powerful economies. People lost their jobs, companies faced bankruptcy and innumerable problems came up to the surface and scarred the financial stability of the world. So I think the economic downturn is a great lesson for all of us out there and it's time that young adults learn something about good investments for young people.
Suppose you've just received an awesome graduation gift, you open it and see that it's hard cash. No matter what the amount is whether it's a mere USD 500 or a meaty USD 5000, you are now with a responsibility of what do with this money. Your mind must be filled up with thousands of temptations, a holiday, a new game or TV, or a new car. Just keep this all aside for a minute and concentrate on investing your money so that you can get the double of what you invest in some time.
Wednesday, January 26, 2011
Why would it be easier to manage business finances using business credit cards?
Business Credit Cards Means Easy Management because all your expenses are automatically included in your summary of accounts so you can be assured that you won’t miss a single purchase no matter how big or small that purchase was. You will be provided with monthly billing statements, along with quarterly and yearly summaries of your account.
These account summaries contain a detailed list of all the purchases you’ve made during the past months or the entire year. Purchases are also categorized so you can use it as reference to your bookkeeping and accounting tasks. Filing your business taxes is definitely made easier with the help of business credit card account statements.
Add to this, many business credit cards include the option to access your account online. This is an enormous help for a busy business owner as it enables convenient tracking of business accounts at any time. Even as you work on your desk, you can simply log in to your online account and do your checking within just a few minutes. Account summaries are also downloadable so you can use them along with your accounting software.
These account summaries contain a detailed list of all the purchases you’ve made during the past months or the entire year. Purchases are also categorized so you can use it as reference to your bookkeeping and accounting tasks. Filing your business taxes is definitely made easier with the help of business credit card account statements.
Add to this, many business credit cards include the option to access your account online. This is an enormous help for a busy business owner as it enables convenient tracking of business accounts at any time. Even as you work on your desk, you can simply log in to your online account and do your checking within just a few minutes. Account summaries are also downloadable so you can use them along with your accounting software.
How can I separate my business finances from my personal money?
Separating business funds from personal finances should be every business owner’s concern. Surprisingly, not many entrepreneurs take this matter into serious consideration. For instance, many small business owners and home based business entrepreneurs prefer to use their personal credit cards with their business expenses thinking that it makes no difference. But a wise business owner should think about the long term complications that combining personal and business funds in just one account could cause later on.
At the start, you may find that using your personal credit card is enough. But as your business begins to grow and accumulate expenses, having a separate business account is indispensable. It will make a big difference not only in managing your business finances, but also in making finance-related decisions. In this article, let’s talk about the advantages of using business credit cards for your business expenses.
At the start, you may find that using your personal credit card is enough. But as your business begins to grow and accumulate expenses, having a separate business account is indispensable. It will make a big difference not only in managing your business finances, but also in making finance-related decisions. In this article, let’s talk about the advantages of using business credit cards for your business expenses.
Why would it be easier to manage business finances using business credit cards?
Business Credit Cards Means Easy Management because all your expenses are automatically included in your summary of accounts so you can be assured that you won’t miss a single purchase no matter how big or small that purchase was. You will be provided with monthly billing statements, along with quarterly and yearly summaries of your account.
These account summaries contain a detailed list of all the purchases you’ve made during the past months or the entire year. Purchases are also categorized so you can use it as reference to your bookkeeping and accounting tasks. Filing your business taxes is definitely made easier with the help of business credit card account statements.
Add to this, many business credit cards include the option to access your account online. This is an enormous help for a busy business owner as it enables convenient tracking of business accounts at any time. Even as you work on your desk, you can simply log in to your online account and do your checking within just a few minutes. Account summaries are also downloadable so you can use them along with your accounting software.
These account summaries contain a detailed list of all the purchases you’ve made during the past months or the entire year. Purchases are also categorized so you can use it as reference to your bookkeeping and accounting tasks. Filing your business taxes is definitely made easier with the help of business credit card account statements.
Add to this, many business credit cards include the option to access your account online. This is an enormous help for a busy business owner as it enables convenient tracking of business accounts at any time. Even as you work on your desk, you can simply log in to your online account and do your checking within just a few minutes. Account summaries are also downloadable so you can use them along with your accounting software.
How do I raise money for a business?
The capital is one of the first things that need to be taken into consideration when one is setting out on a business venture, and there are many different sources to obtain this capital. It is not necessary to stick to one particular source, even a combination of various different sources can be made use of.
Anyone who is wondering how to raise money for a restaurant, a small business, an advertising agency or any other small-scale venture should keep these methods in mind. Approaching the right people for the money is vitally important for the success of the business, and if this is not catered to properly, the business will be doomed from the very beginning.
Personal Savings
This is the most obvious source of money for starting a business. If you have saved up enough money over the years, go ahead and make use of it for your business. You will not be answerable to anyone, and you will not have to worry about repaying someone. If you choose this option, ensure that you are not using all your savings though. Many people neglect this option of how to raise money for a business because if they lose the money, they will have nothing left to live on.
Venture Capitalists
This is the next most obvious source for your potential business. Venture capitalists are professional agencies who put in money, or venture capital into an upcoming business. What they get in return is either a share of the business, or a share of the profits, or pretty high interest rates. It may sound like exploitation, but this is one of the best ways to get money. Venture capitalists are always looking for new and innovative business ideas that are likely to succeed.
Angel Investors
Angel Investors are a refined form of venture capitalists, but many people think they mean the same thing. Angel investors are less demanding than venture capitalists, and are with your business in the long run. Usually, they are someone who you would know personally, and they are simply looking for ways to get a higher return on their investment. How companies raise money depends a lot on the nature of the business, and the method of entrepreneurship adopted. Angel investors also help out the business by providing some guidance and mentoring.
Personal Borrowings
Here is a method on how to raise money for a business that should be avoided as far as possible. You can borrow money from someone you know, namely your friends, family or other people. The problem here is that once you mix business and personal relationships, things start to get a bit sour. This is a situation that needs to be handled with great tact and diplomacy, and not everyone can manage to do that. Still, this is a method that many people opt for.
Bank Loans
Banks will not require you to pay a very high interest rate, but you will need sufficient documentation about the business model of your business. Along with that, your credit history and financial stability will also be scrutinized, to see if you are worthy of getting the loan. Most people would love to get a bank loan, but are simply not eligible. This is especially true for someone who is wondering how to raise money to start a business without owning any fixed assets.
Advertising
Advertising is another answer, but one that requires a suitable amount of investment, and more than a fair share of patience. If you can handle the advertising of your upcoming company well, you can get more than enough money to sustain it in the long run. There are some websites that also will let you advertise your business plan, and then suit you up with a matching investor. This is a slightly unreliable method for sure, but it works wonders if one can find the right match. People wondering how to raise money for a marketing campaign, can use the methods already mentioned above.
Other Options
One can approach some small business investment companies, some business development commissions, some life insurance companies or a money broker as well. The reliability of these other options will not be very high, and their demands may be exorbitant, but if you have run out of all other options, then this is something that you will need to resort to.
You should move as soon as possible in order to get as much capital and business financing as you can. There are a variety of sources available to you, and as long as you have a great and reliable business plan, you will be able to procure capital. It is not all that difficult to learn how to raise money for a business, but all you need, more than anything else, is the faith and belief in yourself.
Anyone who is wondering how to raise money for a restaurant, a small business, an advertising agency or any other small-scale venture should keep these methods in mind. Approaching the right people for the money is vitally important for the success of the business, and if this is not catered to properly, the business will be doomed from the very beginning.
Personal Savings
This is the most obvious source of money for starting a business. If you have saved up enough money over the years, go ahead and make use of it for your business. You will not be answerable to anyone, and you will not have to worry about repaying someone. If you choose this option, ensure that you are not using all your savings though. Many people neglect this option of how to raise money for a business because if they lose the money, they will have nothing left to live on.
Venture Capitalists
This is the next most obvious source for your potential business. Venture capitalists are professional agencies who put in money, or venture capital into an upcoming business. What they get in return is either a share of the business, or a share of the profits, or pretty high interest rates. It may sound like exploitation, but this is one of the best ways to get money. Venture capitalists are always looking for new and innovative business ideas that are likely to succeed.
Angel Investors
Angel Investors are a refined form of venture capitalists, but many people think they mean the same thing. Angel investors are less demanding than venture capitalists, and are with your business in the long run. Usually, they are someone who you would know personally, and they are simply looking for ways to get a higher return on their investment. How companies raise money depends a lot on the nature of the business, and the method of entrepreneurship adopted. Angel investors also help out the business by providing some guidance and mentoring.
Personal Borrowings
Here is a method on how to raise money for a business that should be avoided as far as possible. You can borrow money from someone you know, namely your friends, family or other people. The problem here is that once you mix business and personal relationships, things start to get a bit sour. This is a situation that needs to be handled with great tact and diplomacy, and not everyone can manage to do that. Still, this is a method that many people opt for.
Bank Loans
Banks will not require you to pay a very high interest rate, but you will need sufficient documentation about the business model of your business. Along with that, your credit history and financial stability will also be scrutinized, to see if you are worthy of getting the loan. Most people would love to get a bank loan, but are simply not eligible. This is especially true for someone who is wondering how to raise money to start a business without owning any fixed assets.
Advertising
Advertising is another answer, but one that requires a suitable amount of investment, and more than a fair share of patience. If you can handle the advertising of your upcoming company well, you can get more than enough money to sustain it in the long run. There are some websites that also will let you advertise your business plan, and then suit you up with a matching investor. This is a slightly unreliable method for sure, but it works wonders if one can find the right match. People wondering how to raise money for a marketing campaign, can use the methods already mentioned above.
Other Options
One can approach some small business investment companies, some business development commissions, some life insurance companies or a money broker as well. The reliability of these other options will not be very high, and their demands may be exorbitant, but if you have run out of all other options, then this is something that you will need to resort to.
You should move as soon as possible in order to get as much capital and business financing as you can. There are a variety of sources available to you, and as long as you have a great and reliable business plan, you will be able to procure capital. It is not all that difficult to learn how to raise money for a business, but all you need, more than anything else, is the faith and belief in yourself.
How do I start a home business?
If you are pondering with the idea to start a home business the secret is to just get started and get into action with the determination to succeed and with the never quit attitude, no matter how long it takes to start making money or what challenges you meet along the way.
It is so important to make a commitment to yourself right at the beginning that you will never quit. This is because none of us are really aware of the challenges that we are going to face and without that strong commitment it is too easy to throw in the towel rather than dig deep within ourselves to find a way to work around the obstacles. If you do decide to quit you will be letting yourself down and that is not a pleasant feeling.
For most of us there is a huge learning curve when we start a home business and so it takes time to implement the techniques and actually build a business to the point that we start making money, and this is a critical period when we have to stand very firm on our commitment to never quit. If you are building an online home business then you need to understand that the internet marketing process takes time to learn, implement and take effect before you start making money.
Too often people quit at this stage after putting in hours of hard work and they were more than likely just at the point when their idea to start a home business blossomed into reality and they actually did start making money at home.
It is imperative that you set yourself goals so that you know what you want to achieve and within what time period. First set some small easily attainable goals and then move onto long-terms goals. Goals not only help you stay committed but also keep you encouraged and are a great motivating factor in that they make you stretch further than you normally would to achieve personal success.
You need to constantly remind yourself of WHY you want to start making money at home, whether it be to supplement your income, save for a fabulous holiday, to buy a new car or whether you want to start a home business with the idea of quitting your full-time job.
Keep your goals visible at all times and use pictures as well. Remember these quote ``Age Wrinkles the Skin, Quitting Wrinkles The Soul`` ``If it is to be, it is up to me``; ``What lies behind us and what lies ahead of us are tiny matters compared to what lies within us.”
Your goals should be enticing enough to keep you highly disciplined in working on your home business daily. Set aside specific times to devote to your home business and be strict about it, be sure you don`t get easily distracted and let the other members of your household know that you are serious about your home business and it is your `work time`.
Whether the challenges you meet along the way are large or small, by overcoming them with determination will not only see your home business grow but your own personal growth with be tremendous.
If you have a very strong reason to start making money at home you can put the wheels in motion by acting on your idea to start a home business.
It is so important to make a commitment to yourself right at the beginning that you will never quit. This is because none of us are really aware of the challenges that we are going to face and without that strong commitment it is too easy to throw in the towel rather than dig deep within ourselves to find a way to work around the obstacles. If you do decide to quit you will be letting yourself down and that is not a pleasant feeling.
For most of us there is a huge learning curve when we start a home business and so it takes time to implement the techniques and actually build a business to the point that we start making money, and this is a critical period when we have to stand very firm on our commitment to never quit. If you are building an online home business then you need to understand that the internet marketing process takes time to learn, implement and take effect before you start making money.
Too often people quit at this stage after putting in hours of hard work and they were more than likely just at the point when their idea to start a home business blossomed into reality and they actually did start making money at home.
It is imperative that you set yourself goals so that you know what you want to achieve and within what time period. First set some small easily attainable goals and then move onto long-terms goals. Goals not only help you stay committed but also keep you encouraged and are a great motivating factor in that they make you stretch further than you normally would to achieve personal success.
You need to constantly remind yourself of WHY you want to start making money at home, whether it be to supplement your income, save for a fabulous holiday, to buy a new car or whether you want to start a home business with the idea of quitting your full-time job.
Keep your goals visible at all times and use pictures as well. Remember these quote ``Age Wrinkles the Skin, Quitting Wrinkles The Soul`` ``If it is to be, it is up to me``; ``What lies behind us and what lies ahead of us are tiny matters compared to what lies within us.”
Your goals should be enticing enough to keep you highly disciplined in working on your home business daily. Set aside specific times to devote to your home business and be strict about it, be sure you don`t get easily distracted and let the other members of your household know that you are serious about your home business and it is your `work time`.
Whether the challenges you meet along the way are large or small, by overcoming them with determination will not only see your home business grow but your own personal growth with be tremendous.
If you have a very strong reason to start making money at home you can put the wheels in motion by acting on your idea to start a home business.
How do I start a business with no money?
To start any business, a great idea is more important than money and credit. However, we cannot neglect the importance of money and good credit when it comes to the application of great business ideas. It is not that difficult, but if you are suffering from bad credit loans then it is certainly more than challenging for you. Before you start your business, try to repair your bad credit history. Somehow manage to fulfill all the financial obligations, such as pay all the bills, taxes, and other payments. Ask some of your family members or friends to help you reestablish your credit and get a business loan.
Low Investment Business
This is one of the best ways to start a business with bad credit. If you have not yet decided on which business you want to go for then opt for a business that requires less capital investment and something you can start with available resources. For example, small bakery business requires small business financing. If you know how to bake variety of baking delicacies then start baking at home and use mouth publicity or back plates for advertising. The home based businesses are generally inexpensive to start as your cost of land investment and hiring other people is negligible.
Friends and Family
They can come for rescue when you are going through tough times unless you have not caused any financial harm to them or were not involved in any credit card frauds. You can ask your friends and family members if they can lend you money. But you have to go with a proper business plan so that you know how much you should ask for. It will also display your professional attitude and passion towards your business. Apart from this, you can also resort to online social lending websites which is another way of getting an unsecured loan for working capital.
Non-Profit Organizations
There are various nonprofit organizations that offer new entrepreneurs with micro credits that would help you complete your start up needs. These organizations generally charge no interest rate or very low interest rates on the loans. The aim of these micro credit organizations is quite social and so they want to give a chance to the young entrepreneurs to explore their creativity with unique business strategies.
Government Grants
There are many schemes designed by the government to help budding entrepreneurs. Government believes that a small business, if grown significantly, may provide employment to many other people. To lower the rate of unemployment, government has designed many schemes through which you can receive a grant. However, there are certain requirements and regulations associated with them, which are easy to comply with.
Infrastructure Lending
These days there are many people who run the service of providing people with adequate infrastructure needs, such as administrative support and technical support. Some lenders also allow you to use different tools and machines that are essential for your business. For example, if you wish to start a home based apparel designing and stitching, then you lend a sewing machine that is very important to run this business. They charge you a minimum amount or may ask for some percentages in your profits and generally overlook your credit background.
These were some of the ways you can try if you are wondering how to start a business with no money and bad credit. But meanwhile, remember to pay attention to the credit repair process. Work towards reestablishing your credit with honesty, passion, and hard work. Before you invest money, be assured that your business ideas are practical and profit oriented. Now stop thinking how to start a business with no money and bad credit and pick one of the feasible ideas and get started. All the best!
Low Investment Business
This is one of the best ways to start a business with bad credit. If you have not yet decided on which business you want to go for then opt for a business that requires less capital investment and something you can start with available resources. For example, small bakery business requires small business financing. If you know how to bake variety of baking delicacies then start baking at home and use mouth publicity or back plates for advertising. The home based businesses are generally inexpensive to start as your cost of land investment and hiring other people is negligible.
Friends and Family
They can come for rescue when you are going through tough times unless you have not caused any financial harm to them or were not involved in any credit card frauds. You can ask your friends and family members if they can lend you money. But you have to go with a proper business plan so that you know how much you should ask for. It will also display your professional attitude and passion towards your business. Apart from this, you can also resort to online social lending websites which is another way of getting an unsecured loan for working capital.
Non-Profit Organizations
There are various nonprofit organizations that offer new entrepreneurs with micro credits that would help you complete your start up needs. These organizations generally charge no interest rate or very low interest rates on the loans. The aim of these micro credit organizations is quite social and so they want to give a chance to the young entrepreneurs to explore their creativity with unique business strategies.
Government Grants
There are many schemes designed by the government to help budding entrepreneurs. Government believes that a small business, if grown significantly, may provide employment to many other people. To lower the rate of unemployment, government has designed many schemes through which you can receive a grant. However, there are certain requirements and regulations associated with them, which are easy to comply with.
Infrastructure Lending
These days there are many people who run the service of providing people with adequate infrastructure needs, such as administrative support and technical support. Some lenders also allow you to use different tools and machines that are essential for your business. For example, if you wish to start a home based apparel designing and stitching, then you lend a sewing machine that is very important to run this business. They charge you a minimum amount or may ask for some percentages in your profits and generally overlook your credit background.
These were some of the ways you can try if you are wondering how to start a business with no money and bad credit. But meanwhile, remember to pay attention to the credit repair process. Work towards reestablishing your credit with honesty, passion, and hard work. Before you invest money, be assured that your business ideas are practical and profit oriented. Now stop thinking how to start a business with no money and bad credit and pick one of the feasible ideas and get started. All the best!
What is a grant?
A grant is financial assistance for a specific purpose or for a pre decided target group. For example some institutions give grant money for starting day care centers, college grants for single moms or, for minority women. People have this misconception that grants are excess funds just lying in the government’s coffers waiting to be taken advantage of.
Business Grants for Women
There are two avenues for start up business grants for women, federal government grants and the other private funding organizations. Like any financial assistance program, you are required to fill out an application form, state your purpose and give details about your background, when applying for grants for start up business for women. Most people get discouraged by the application process and don't even try for grant money. It is advisable to go through the application process because the outcome can be rewarding.
When looking for grants for women who are starting a business, you should have a look at the Catalog of Federal Domestic Assistance (CFDA). They provide grants for women under different categories. They have over 2 thousand assistance programs. The CFDA grants help women from different walks of life and ethnic backgrounds to start their own business.
Another resource for start up business loans for women is the US Small Business Administration (SBA). They also offer grant programs, to organizations that render small business management, or technical assistance. The SBA mostly gives grants to nonprofit organizations, state and local governments.
If you are looking for government grants, you need to apply on the government grant’s website. Once you do this you will get a funding opportunity number (FON). You can then track your grant application online on their website. When you apply, you will be required to furnish information about the project details and your background.
State governments are a good resource to look for start up business grants closer to home. The federal government allocates development funds for each state and the state in turn gives a part of these funds to individuals to start or expand their business. State governments give grants to businesses that will benefit the community in the long term. Projects dealing with saving energy, child care and tourism are supported by the state governments.
There are many nonprofit organizations that provide financial aid to women, to help them support themselves and their families. Nonprofit organizations have cause driven grants and they help women from a target group. Some organizations specialize in giving small business grants to minority women.
Start up business grants for women, at times, are difficult to find, but if you put in the effort in researching for the right organization and category that you could apply for, it will bear fruit. Whenever you want to apply for a grant, keep information about your financial background, business plan, marketing plan and market predictions ready, to stand a better chance of getting the grant.
Business Grants for Women
There are two avenues for start up business grants for women, federal government grants and the other private funding organizations. Like any financial assistance program, you are required to fill out an application form, state your purpose and give details about your background, when applying for grants for start up business for women. Most people get discouraged by the application process and don't even try for grant money. It is advisable to go through the application process because the outcome can be rewarding.
When looking for grants for women who are starting a business, you should have a look at the Catalog of Federal Domestic Assistance (CFDA). They provide grants for women under different categories. They have over 2 thousand assistance programs. The CFDA grants help women from different walks of life and ethnic backgrounds to start their own business.
Another resource for start up business loans for women is the US Small Business Administration (SBA). They also offer grant programs, to organizations that render small business management, or technical assistance. The SBA mostly gives grants to nonprofit organizations, state and local governments.
If you are looking for government grants, you need to apply on the government grant’s website. Once you do this you will get a funding opportunity number (FON). You can then track your grant application online on their website. When you apply, you will be required to furnish information about the project details and your background.
State governments are a good resource to look for start up business grants closer to home. The federal government allocates development funds for each state and the state in turn gives a part of these funds to individuals to start or expand their business. State governments give grants to businesses that will benefit the community in the long term. Projects dealing with saving energy, child care and tourism are supported by the state governments.
There are many nonprofit organizations that provide financial aid to women, to help them support themselves and their families. Nonprofit organizations have cause driven grants and they help women from a target group. Some organizations specialize in giving small business grants to minority women.
Start up business grants for women, at times, are difficult to find, but if you put in the effort in researching for the right organization and category that you could apply for, it will bear fruit. Whenever you want to apply for a grant, keep information about your financial background, business plan, marketing plan and market predictions ready, to stand a better chance of getting the grant.
What is a gift deed?
If you have any inkling of knowledge about the Contract Law in most countries, you will know that contracts without any consideration (cash or kind) are considered null and void, save for a few exceptions. Let us take an example to explain this slightly complex sounding statement. When you want to get a new house, you go to a homeowner who no longer wants his and quote a price so that the homeowner should relinquish the ownership. So this 'consideration' from the point of view of the seller is the cash he gets, while the consideration from your point of view is the ownership of the home. Furthermore, the contract law in most countries doesn't recognize deals done without consideration for both parties and where there is only one benefactor, except in the case known as a 'gift'. When one person 'gifts' his large, plush and priceless gift deed property to another, he receives nothing in return by way of consideration or compensation. The receiver of this property pays nothing. The consideration here is said to be 'love' and hence the contracts stands fulfilled.
So what is a deed of gift? Well, when you give your immovable asset to another person, which is, you grant your right of ownership over an immovable property to another, for no consideration, or in other words 'for free', the gift deed is the piece of documentation which records that. The gift deed shows that the buyer has received the property for no consideration, as a gift and its ownership for all practical purposes, rests with him.
So what is a deed of gift? Well, when you give your immovable asset to another person, which is, you grant your right of ownership over an immovable property to another, for no consideration, or in other words 'for free', the gift deed is the piece of documentation which records that. The gift deed shows that the buyer has received the property for no consideration, as a gift and its ownership for all practical purposes, rests with him.
What is the gift deed format now?
The gift deed is a legal document, which means that it needs to follow a certain format, and can be contested in the court of law. Being a legal document there are a few things to be kept in mind when drafting the gift deed.
The gift deed is drafted by the person giving the property as a gift or the donor. The gift deed speaks of his willingness to give that specified asset away, in return for no consideration and completely out of love and affection for the person receiving the gift or the donee. The donor's signature is often not enough and signatures of witnesses too are essential. While the number of witnesses may vary depending on the rules of the state, normally two witnesses are enough to seal the deal. The witnesses, of course, cannot be people who have material interest in the property themselves and as such need to be disinterested parties that stand to gain nothing from the contents of the gift deed. For example, the donee cannot pose as the witness as he directly acquires the ownership as a result of the deed. Lastly, the gift deed also contains the signature of the donee signifying his acceptance of the gift.
The gift deed is drafted by the person giving the property as a gift or the donor. The gift deed speaks of his willingness to give that specified asset away, in return for no consideration and completely out of love and affection for the person receiving the gift or the donee. The donor's signature is often not enough and signatures of witnesses too are essential. While the number of witnesses may vary depending on the rules of the state, normally two witnesses are enough to seal the deal. The witnesses, of course, cannot be people who have material interest in the property themselves and as such need to be disinterested parties that stand to gain nothing from the contents of the gift deed. For example, the donee cannot pose as the witness as he directly acquires the ownership as a result of the deed. Lastly, the gift deed also contains the signature of the donee signifying his acceptance of the gift.
What are the types of Joint Ownership of Property?
A joint ownership of property agreement, and its content decides what type of ownership it is. The joint ownership of property is always within two or more than two legally legitimate people or parties. The following are some commonly observed types of ownership agreements. While going through the following categories, one must note that a tenancy is a synonym of ownership.
Joint Ownership with Rights of Survivorship: The joint ownership with rights of survivorship is an agreement, where more than one people hold 'shares', of the property. These shares are not divisible but a joint owner can rightfully and legally sell his 'share' to another party at a price higher than the earlier price, with the consent of others. With the death of a joint owner, the property automatically gets transferred to a heir, in accordance with the operation of law. However in the absence of a heir, the share automatically passes over to the surviving joint owners.
Tenancy by Entirety: A tenancy by entirety or ownership by entirety is a unique joint ownership of property. In such an ownership, a husband and wife own equal joint ownership of property rights and share of the property. In such a situation either is prohibited from selling the share. Joint ownership of property after divorce, thus often becomes a difficult situation and the court may intervene in case of a liquidation dispute. You may also read more on divorce property settlement agreement.
Tenants in Common: Tenants in common is similar to that of a joint ownership, with rights of survivorship. The difference is that the owner can sell his share to another person without the consent of other owners. Another differentiating point is that the owners can own unequal of non-homogeneous shares. The ownership can be passed on to an heir only by the way of a will.
Community Owned Property: The concept of community owned property is different from that of normal ownership. A property becomes a community owned property, only when it is acquired through a marriage. The community property law, unfortunately is applicable only in 9 states, namely, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington. According to the terms of a community property, any property acquired before marriage or by inheritance, is considered and treated as a personal property. The community ownership is in most cases, applicable for people who purchase a property just after their marriage. Now, one might argue that a community property can also become a property under the provisions in entirety. A property becomes a community property, on the signing of a contract between the joint owners. The advantage of such a property ownership is that the couple can have a house plan or an estate plan that becomes applicable in case of death of a particular spouse. An estate plan basically effectively and legally transfers the lien to the surviving spouse.
Joint Ownership with Rights of Survivorship: The joint ownership with rights of survivorship is an agreement, where more than one people hold 'shares', of the property. These shares are not divisible but a joint owner can rightfully and legally sell his 'share' to another party at a price higher than the earlier price, with the consent of others. With the death of a joint owner, the property automatically gets transferred to a heir, in accordance with the operation of law. However in the absence of a heir, the share automatically passes over to the surviving joint owners.
Tenancy by Entirety: A tenancy by entirety or ownership by entirety is a unique joint ownership of property. In such an ownership, a husband and wife own equal joint ownership of property rights and share of the property. In such a situation either is prohibited from selling the share. Joint ownership of property after divorce, thus often becomes a difficult situation and the court may intervene in case of a liquidation dispute. You may also read more on divorce property settlement agreement.
Tenants in Common: Tenants in common is similar to that of a joint ownership, with rights of survivorship. The difference is that the owner can sell his share to another person without the consent of other owners. Another differentiating point is that the owners can own unequal of non-homogeneous shares. The ownership can be passed on to an heir only by the way of a will.
Community Owned Property: The concept of community owned property is different from that of normal ownership. A property becomes a community owned property, only when it is acquired through a marriage. The community property law, unfortunately is applicable only in 9 states, namely, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington. According to the terms of a community property, any property acquired before marriage or by inheritance, is considered and treated as a personal property. The community ownership is in most cases, applicable for people who purchase a property just after their marriage. Now, one might argue that a community property can also become a property under the provisions in entirety. A property becomes a community property, on the signing of a contract between the joint owners. The advantage of such a property ownership is that the couple can have a house plan or an estate plan that becomes applicable in case of death of a particular spouse. An estate plan basically effectively and legally transfers the lien to the surviving spouse.
What is Tenancy in Common?
Tenants in common enjoy equal rights of possession. However, this does not mean that ownership is equitably distributed. Say, three tenants are in common agreement and they hold the property in proportion of 50:30:20 . A person who owns 20 percent of the property enjoys the same rights of occupation as one who owns 50 percent. Having a greater stake in the property does not mean that one has the right to exclude others, who own smaller shares, from occupying the property in the presence or the absence of the majority stakeholder. In other words, ownership refers to the amount invested and the portion that is owned as a consequence of investment, while possession refers to physically occupying the same. Tenants also have the right to receive a prorated share of rents or profits that accrue from leasing or selling the property respectively.
It is important to note that tenancy in common agreement does not require the tenants to be related. A tenant has the right to pass on his/her share of ownership to the heirs with/without the consent of other co-tenants. A tenant can also exercise the option of bequeathing the property to a co-tenant by naming the latter in the will. Regardless of whether or not the inheritor is a co-tenant, the other tenants maintain their status quo. All liens on the property must be cleared to ensure the transfer of ownership. The surviving tenants can also opt to buy the inheritor's share of the property, provided the latter is willing. If the inheritor is unwilling to sell his/her share of the property to the surviving tenants, but wants to sell off the property to the highest bidder, the latter may object, thus forcing the heir to file a partition action with the court. Doing so will result in the property being sold off as per court orders. The proceeds from the sale of the property will then be distributed among the tenants. This in turn results in the dissolution of the current agreement of holding the property. The agreement may also be dissolved if the co-tenants voluntarily decide to sell the property and distribute the proceeds amongst themselves.
It is important to note that tenancy in common agreement does not require the tenants to be related. A tenant has the right to pass on his/her share of ownership to the heirs with/without the consent of other co-tenants. A tenant can also exercise the option of bequeathing the property to a co-tenant by naming the latter in the will. Regardless of whether or not the inheritor is a co-tenant, the other tenants maintain their status quo. All liens on the property must be cleared to ensure the transfer of ownership. The surviving tenants can also opt to buy the inheritor's share of the property, provided the latter is willing. If the inheritor is unwilling to sell his/her share of the property to the surviving tenants, but wants to sell off the property to the highest bidder, the latter may object, thus forcing the heir to file a partition action with the court. Doing so will result in the property being sold off as per court orders. The proceeds from the sale of the property will then be distributed among the tenants. This in turn results in the dissolution of the current agreement of holding the property. The agreement may also be dissolved if the co-tenants voluntarily decide to sell the property and distribute the proceeds amongst themselves.
What are the advantages of Tenancy in Common?
Benefits of Diversification: One of the advantages of tenancy in common is that the tenants have the option of diversifying their portfolio of real properties by investing in different regions and in properties involving different levels of risk and return. A sufficiently diversified portfolio, that includes high grade, institutional-type properties and properties yielding stable returns, will help in reducing the overall risk of the portfolio.
Obtaining Loans: Tenancy in common allows a co-tenant to use his/her share of the property as collateral for seeking loans. Moreover, the creditors can place liens only against the co-tenant's portion of the property.
Obtaining Loans: Tenancy in common allows a co-tenant to use his/her share of the property as collateral for seeking loans. Moreover, the creditors can place liens only against the co-tenant's portion of the property.
What are the disadvantages of Tenancy in Common?
Lack of Liquidity: The main problem regarding assets which are held under tenants in common agreement, is that they are illiquid. This is because of the lack of secondary market for these assets. Hence, the tenancy in common property is usually sold off at a substantial discount.
Couples who are interested in holding a title to a property may prefer joint tenancy to tenancy in common. Joint tenancy may be considered as an alternative to tenancy in common agreement after comparing the pros and cons of tenancy in common versus joint tenancy.
Couples who are interested in holding a title to a property may prefer joint tenancy to tenancy in common. Joint tenancy may be considered as an alternative to tenancy in common agreement after comparing the pros and cons of tenancy in common versus joint tenancy.
How to Invest In Real Estate: Property Investment
If invested correctly, your real estate investment will earn a lot and provide a good source of income for many years. A few things have to be kept in mind while investing in real estate. A real estate investment decision has to be well-thought out. It may be a good idea to invest in a newly developing area. The land can be purchased quite cheaply and the rent in these places will always go higher. There are a few ways in which you can go about how to invest in real estate.
The Good Old-Fashioned Real Estate Investment
Real estate investment can be done in two ways. If you have funds lying idle in your bank account, it may be a wise decision to buy property with those funds. This way you make a one time expenditure and earn a rent over the period for which you hold the land. You might also sell it off later, if you think the price is right and you are earning a good enough profit. The other slightly risky way of property investment is to get external real estate financing from banks. You can then rent it out to someone at a slightly higher rate than what you pay as mortgage. May be risky, because if you are unable to find a tenant for your land, you have the risk of not earning anything on your investment, and furthermore paying a mortgage.
Real Estate Investment Groups
Being a landlord has its share of problems. Since the ownership is yours, the problems that come with it are also inescapable. Tenants come in all types. Some might default on payments, some might cause some breakage in the house. You may cut it out from their initial deposit, but fixing it is still your headache, right? Not, if you go for a real estate investment group.
A real estate investment group can be considered as the mutual fund amongst real estate investments. Such a real estate investment group builds apartments and condos and then invites people to invest in them. So instead of taking a loan from a bank, investors will pay the mortgages to the real estate investment group, while it takes care of all the maintenance issues themselves. Of course for this service, they may charge you a percentage of the rent you receive.
Real Estate Trading/Flipping
Flipping is suitable for the adventurous among us. Flipping is where an investor buys property in a low-priced area, but where the demand looks like it is going to pick up. The investor does not buy the property with an intention to rent it, but to resell it after a few months when the price picks up. He might not choose to wait for the best price, and might sell it when he feels that he has made enough profit on the land. It is a very risky proposition because if the investor is not able to sell the land, he will end up making a huge loss.
The Good Old-Fashioned Real Estate Investment
Real estate investment can be done in two ways. If you have funds lying idle in your bank account, it may be a wise decision to buy property with those funds. This way you make a one time expenditure and earn a rent over the period for which you hold the land. You might also sell it off later, if you think the price is right and you are earning a good enough profit. The other slightly risky way of property investment is to get external real estate financing from banks. You can then rent it out to someone at a slightly higher rate than what you pay as mortgage. May be risky, because if you are unable to find a tenant for your land, you have the risk of not earning anything on your investment, and furthermore paying a mortgage.
Real Estate Investment Groups
Being a landlord has its share of problems. Since the ownership is yours, the problems that come with it are also inescapable. Tenants come in all types. Some might default on payments, some might cause some breakage in the house. You may cut it out from their initial deposit, but fixing it is still your headache, right? Not, if you go for a real estate investment group.
A real estate investment group can be considered as the mutual fund amongst real estate investments. Such a real estate investment group builds apartments and condos and then invites people to invest in them. So instead of taking a loan from a bank, investors will pay the mortgages to the real estate investment group, while it takes care of all the maintenance issues themselves. Of course for this service, they may charge you a percentage of the rent you receive.
Real Estate Trading/Flipping
Flipping is suitable for the adventurous among us. Flipping is where an investor buys property in a low-priced area, but where the demand looks like it is going to pick up. The investor does not buy the property with an intention to rent it, but to resell it after a few months when the price picks up. He might not choose to wait for the best price, and might sell it when he feels that he has made enough profit on the land. It is a very risky proposition because if the investor is not able to sell the land, he will end up making a huge loss.
What is a short sale?
A short sale is a part of the fiscal and real estate world. It refers to a transaction that does not involve ownership of the commodity sold and/or willful exposure to a loss. A short sale is exactly what the term implies, short and for immediate trade. It is a term that relates to temporary buying and selling of commodities. The limited span of time during the entire transaction is reflected in the word 'short'. This kind of transaction is part of fiscal and real estate investment. In the former it refers to short term futures trading, in real estate it relates to the immediate selling off of property to repay a loan amount. Most of the time, as short sale is transacted within the understanding that the trade would have to be reversed soon, even if the commodity is priced lower and incurs a loss.
What are the Different Types of Real Estate investing?
Commercial properties are now becoming very common in the world of investment. Purchasing and leasing out commercial property buildings is often very lucrative and provides a steady stream of revenue on a continual basis. This process often requires rather stringent insurance and coding regulations to be put in place in order to be legal and safe.
Rental properties are also a very common form of investing for many. Today, this is often in the format of apartments, homes, and condos that have been purchased and rented out on a leased basis. In fact, this is often something performed after it has been purchased and lived in for some time after purchase.
House flipping is a very lucrative business for many around the world as well. Buying depressed and undervalued property and making it modern and attractive often recuperates an incredible profit and provides a fun project for those that do it. Thus, this field of investing is actually becoming much more common today.
Owning land is also very lucrative and provides an often immediate rate of return if performed and treated very carefully. When owning a plot of land of any sort, it is able to be sectioned off and sold in plots in very specific relation to zoning laws and other common factors. Or, simply buying depressed land and then selling it for increased profit rates is also common and often very successful when sold to larger businesses and corporations.
Rental properties are also a very common form of investing for many. Today, this is often in the format of apartments, homes, and condos that have been purchased and rented out on a leased basis. In fact, this is often something performed after it has been purchased and lived in for some time after purchase.
House flipping is a very lucrative business for many around the world as well. Buying depressed and undervalued property and making it modern and attractive often recuperates an incredible profit and provides a fun project for those that do it. Thus, this field of investing is actually becoming much more common today.
Owning land is also very lucrative and provides an often immediate rate of return if performed and treated very carefully. When owning a plot of land of any sort, it is able to be sectioned off and sold in plots in very specific relation to zoning laws and other common factors. Or, simply buying depressed land and then selling it for increased profit rates is also common and often very successful when sold to larger businesses and corporations.
How to Buy Land?
Choose the Location Thoughtfully
The first answer to the question how to buy land is, by choosing a prime location in a rapidly developing city. The appreciation which you get for the land prices will be more, if it's located on a national highway or if it is near an industrial area. The best advantage a land owner owning a piece of land in an upcoming locality has is that he will get a huge compensation for his land if it is acquired by the government to develop an economic zone. Another advantage of owning a non-agricultural land in a developing area is that, once the land rates reach their maximum heights, you can contact a builder and sign an agreement with him to develop the property. In this process, you will make a lot of money without facing troubles. You can also start a business of your own when you feel that the time is right to do so. If you invest in an underdeveloped region, it will take a long time for you to get good real estate appraisal. Investing in a fully developed region would not be a fantastic idea as you will need a lot of money to do so, and the returns you would get would be nominal as land prices in such areas have already reached their saturation point and have now become stable. You can consult a real estate agent for some land buying tips which might help you.
Check for Your Safety and Fix Your Budget
If you are planning to buy land for residential purposes, make sure that it is totally safe in all aspects. It should not be in an earthquake zone and should have good connectivity with the heart of the city, where facilities like hospitals, education, etc. are available. Never ever exceed your budget while buying a land as this can lead to stress on your financial position.
Check the Surface Features of the Land
You should check or examine the topography of the land very carefully and minutely before finalizing the deal for the land. As far as possible, avoid buying marshy lands or lands in low lying areas as you will face many difficulties while doing any sort of construction work on that piece of land. Take a land quality expert with you to check the quality of the land and the soil if you plan to buy it for agriculture related purposes. Do not purchase a land on the hill slopes which again are not favorable for construction activities. The land should have a good water supply facility as agricultural and construction activities need water on a large scale. Search for underground wells on the site which are good sources of water. Think from a landscaping point of view, if you planning to build a bungalow for yourself on the plot of land. Choose a land which has good scenery around and sufficient number of trees to enlighten the atmosphere.
Ensure Clearance of Title and Conduct Research
There should not be any legal problems associated with the plot of land you wish to buy and the title of the plot should be clear. Hire a good lawyer who has experience in dealing with land buying and selling cases. It is advisable to conduct a detail market research which should involve correct price of the land and future prospects of the property. You can also consider taking a real estate loan, if you feel that you are getting the land for a very attractive price.
The first answer to the question how to buy land is, by choosing a prime location in a rapidly developing city. The appreciation which you get for the land prices will be more, if it's located on a national highway or if it is near an industrial area. The best advantage a land owner owning a piece of land in an upcoming locality has is that he will get a huge compensation for his land if it is acquired by the government to develop an economic zone. Another advantage of owning a non-agricultural land in a developing area is that, once the land rates reach their maximum heights, you can contact a builder and sign an agreement with him to develop the property. In this process, you will make a lot of money without facing troubles. You can also start a business of your own when you feel that the time is right to do so. If you invest in an underdeveloped region, it will take a long time for you to get good real estate appraisal. Investing in a fully developed region would not be a fantastic idea as you will need a lot of money to do so, and the returns you would get would be nominal as land prices in such areas have already reached their saturation point and have now become stable. You can consult a real estate agent for some land buying tips which might help you.
Check for Your Safety and Fix Your Budget
If you are planning to buy land for residential purposes, make sure that it is totally safe in all aspects. It should not be in an earthquake zone and should have good connectivity with the heart of the city, where facilities like hospitals, education, etc. are available. Never ever exceed your budget while buying a land as this can lead to stress on your financial position.
Check the Surface Features of the Land
You should check or examine the topography of the land very carefully and minutely before finalizing the deal for the land. As far as possible, avoid buying marshy lands or lands in low lying areas as you will face many difficulties while doing any sort of construction work on that piece of land. Take a land quality expert with you to check the quality of the land and the soil if you plan to buy it for agriculture related purposes. Do not purchase a land on the hill slopes which again are not favorable for construction activities. The land should have a good water supply facility as agricultural and construction activities need water on a large scale. Search for underground wells on the site which are good sources of water. Think from a landscaping point of view, if you planning to build a bungalow for yourself on the plot of land. Choose a land which has good scenery around and sufficient number of trees to enlighten the atmosphere.
Ensure Clearance of Title and Conduct Research
There should not be any legal problems associated with the plot of land you wish to buy and the title of the plot should be clear. Hire a good lawyer who has experience in dealing with land buying and selling cases. It is advisable to conduct a detail market research which should involve correct price of the land and future prospects of the property. You can also consider taking a real estate loan, if you feel that you are getting the land for a very attractive price.
What is a Land Purchase Contract?
A land purchase contract, like any other contract, is an agreement between two parties, one the buyer and the other the seller, for a property deed. The deed to a land forms the consideration of this contract. We can think about it is a 'loan' given by the seller of the land, which the buyer will repay within the specified time, with the specified amount. Simply speaking, a land purchase contract is like a lease agreement, except that the buyer gets the deed of the land at the end of the lease period. The vendee has to pay a down payment on the property as well. So while the ownership of the land remains with the vendor, the vendee, for consideration, enjoys the use of the property and has to pay the necessary dues for maintenance.
Entering into a Land Contract Agreement
The seller and buyer enter into a contract stating that the seller will agree to transfer the deed of property to the buyer, specified in the contract, after the buyer has paid the required agreed-upon amount, in the form of installments, for the required period of time. It is always beneficial to both parties to have their land contract forms examined by certified real estate attorneys to avoid any legal discrepancies, or if some terms of the contract are not in agreement with the law of the state. The exact laws governing the sale of land on contract vary from state to state, so it is always beneficial to employ an attorney. The amount specified in the contract would be inclusive of rent for the use of the land, along with the interest. The vendee also has to pay the down-payment on the contract. A land contract provides protection to the vendor. In case the vendee defaults on regular payments, the vendor can rescind the contract.
Entering into a Land Contract Agreement
The seller and buyer enter into a contract stating that the seller will agree to transfer the deed of property to the buyer, specified in the contract, after the buyer has paid the required agreed-upon amount, in the form of installments, for the required period of time. It is always beneficial to both parties to have their land contract forms examined by certified real estate attorneys to avoid any legal discrepancies, or if some terms of the contract are not in agreement with the law of the state. The exact laws governing the sale of land on contract vary from state to state, so it is always beneficial to employ an attorney. The amount specified in the contract would be inclusive of rent for the use of the land, along with the interest. The vendee also has to pay the down-payment on the contract. A land contract provides protection to the vendor. In case the vendee defaults on regular payments, the vendor can rescind the contract.
How Does a Land Contract Work?
A land purchase contract works in favor of both the parties. The vendor enjoys the ownership of the land until the final payment is made, thus securing him from defaults. In case of default, the vendor is not liable to pay the installments or the down payment which he has already received on the land. The vendor can prepare a contract as per his wish, as there are no regulations governing the land purchase contract. He can even ask for a higher price than the market rate, if the buyer is ready to pay. The vendor also gets paid in convenient installments, as opposed to a lump-sum, so he enjoys a continuous flow of passive income along with the ownership of the land, for that period.
For the buyer, he can avoid running to the banks, and the whole paperwork process. Loans are hard to come by and credit-rating scales are becoming even more strict, this option for buying land is one of the best available to him. He can pay small amounts over a period of time, thus not burning a big hole in his pocket. He is allowed to enjoy the use of land for almost all purposes, as if it were his own. He only cannot mortgage that land, as it does not belong to him yet. Lastly, unlike renting, the buyer, at the end of the contract period, gets ownership of the property, which is a valuable asset.
Buying land today is a common aspiration. So don't be disheartened simply because you are unable to procure a loan. The land purchase contract is a very good and convenient alternative method to buy a land. And it's very simple, too!
For the buyer, he can avoid running to the banks, and the whole paperwork process. Loans are hard to come by and credit-rating scales are becoming even more strict, this option for buying land is one of the best available to him. He can pay small amounts over a period of time, thus not burning a big hole in his pocket. He is allowed to enjoy the use of land for almost all purposes, as if it were his own. He only cannot mortgage that land, as it does not belong to him yet. Lastly, unlike renting, the buyer, at the end of the contract period, gets ownership of the property, which is a valuable asset.
Buying land today is a common aspiration. So don't be disheartened simply because you are unable to procure a loan. The land purchase contract is a very good and convenient alternative method to buy a land. And it's very simple, too!
What are Tax Liens?
Before you find out how to buy tax liens online, let me briefly talk about what are tax liens and how they present an opportunity of a real estate investment. There are certain taxes that real estate owners need to pay every year. If a home owner ignores paying these property taxes, he can escape for only so long, before the local authorities impose tax liens on the property.
They have the right to seize the property and sell it to recover taxes. Though this is what ultimately happens, the owner is given an opportunity to redeem himself, through issuing of tax lien certificates. A tax lien certificate is an agreement of a loan issued by a third party to a tax defaulter at a fixed interest rate. The interest rates imposed on such loans are quite high. These tax lien certificates are generally sold by county courts in auctions. Buying tax liens online saves you the time which may be normally spent in investigating them personally through travel.
A real estate investor can buy a tax lien certificate as an investment and benefit from the high interest rate. If it so happens, that the property owner is not able to repay the loan, then in some states, the holder of the certificate can buy the property at a substantially low price. This is what I meant by one man's pain is another man's gain.
They have the right to seize the property and sell it to recover taxes. Though this is what ultimately happens, the owner is given an opportunity to redeem himself, through issuing of tax lien certificates. A tax lien certificate is an agreement of a loan issued by a third party to a tax defaulter at a fixed interest rate. The interest rates imposed on such loans are quite high. These tax lien certificates are generally sold by county courts in auctions. Buying tax liens online saves you the time which may be normally spent in investigating them personally through travel.
A real estate investor can buy a tax lien certificate as an investment and benefit from the high interest rate. If it so happens, that the property owner is not able to repay the loan, then in some states, the holder of the certificate can buy the property at a substantially low price. This is what I meant by one man's pain is another man's gain.
How to Purchase Tax Liens Online?
Not all counties issue tax lien certificates. The first step you must take is search for websites of county courts that issue tax lien certificates online. There are certain websites that offer web directories for such purposes. Since there are more than 3000 counties in the United states, it is a tough job to scan all the tax liens for sale at any point of time. List out the properties for which tax lien certificates are being issued. Scrutinize all the details of the tax lien certificates you are interested in.
If the county court is selling the certificates in an online auction, then you must check out all the details regarding the same. You will have to register as a bidder for the auction and pay some percentage of the tax lien certificate price. It will be required that you supply all the necessary personal details for the purpose of registration. Know the date and time of online auction and make sure that you log on to the website on time. Know the payment methods for money transfer. Understand the auction rules put forward by the county and see to it that you follow them while bidding for it. Just because you are purchasing tax liens online doesn't mean that you can go slack on research.
Scrutinize the taxes imposed on the property and know the exact interest rate that is offered. Calculate the profit margin that you will get through interest rate imposed on the loan. Judge whether the investment will be worth the time, effort and money put into it.
If the county court is selling the certificates in an online auction, then you must check out all the details regarding the same. You will have to register as a bidder for the auction and pay some percentage of the tax lien certificate price. It will be required that you supply all the necessary personal details for the purpose of registration. Know the date and time of online auction and make sure that you log on to the website on time. Know the payment methods for money transfer. Understand the auction rules put forward by the county and see to it that you follow them while bidding for it. Just because you are purchasing tax liens online doesn't mean that you can go slack on research.
Scrutinize the taxes imposed on the property and know the exact interest rate that is offered. Calculate the profit margin that you will get through interest rate imposed on the loan. Judge whether the investment will be worth the time, effort and money put into it.
What are Tax Lien Certificates?
For any property that is owned in the United States, there are certain local taxes that need to be paid every year. In the event of non-payment of these taxes for a substantial amount of time, a county government or municipality has the right to seize the property from the owner. To give an opportunity to the owner to pay his tax dues, a county may sell tax lien certificates for the property. It is a provision for the owner to secure a loan to pay his taxes.
The person who buys a tax lien certificate is providing a loan to the real estate owner. This provides the owner with some time to repay the tax debt. A holder of any tax lien certificate must be returned the principal amount, along with a fixed interest, within a fixed period of time. Failure to repay the loan provides the tax lien certificate owner with a right to acquire the property outright in some states. It is a tax debt relief instrument.
It all depends on whether the real estate owner is able to pay back. In any case, you will certainly make a profit, based on the interest rate paid back to you. Many people looking for a real estate investment go for tax lien certificates, as they provide them with an opportunity to acquire properties at a fraction of market prices in some states.
The person who buys a tax lien certificate is providing a loan to the real estate owner. This provides the owner with some time to repay the tax debt. A holder of any tax lien certificate must be returned the principal amount, along with a fixed interest, within a fixed period of time. Failure to repay the loan provides the tax lien certificate owner with a right to acquire the property outright in some states. It is a tax debt relief instrument.
It all depends on whether the real estate owner is able to pay back. In any case, you will certainly make a profit, based on the interest rate paid back to you. Many people looking for a real estate investment go for tax lien certificates, as they provide them with an opportunity to acquire properties at a fraction of market prices in some states.
What is the difference between a tax deed and a tax lien?
Different states either sell tax liens or tax deeds to tax delinquent investors. Tax Deed states sell the actual property to you when an owner is delinquent for a number of years. Some states will sell you the Tax Deed however the original owner still has the right to redeem their property from you. Some counties allow the original owner to redeem their property the next morning after the auction and others will allow longer redemption periods up to a few years.
There are 2 ways the state get to sell properties:
1. The state forecloses, then owns the property and auctions it off as the seller; and
2. The state obtains the power to sell from the court but doesn’t own the property;
Interest payments do not go either to investor or state because when a state owns a property, redemption is lost. Thereby, interest payments accrued from the effort of redeeming the property like in Texas and Tennessee are lost too. Redemption is never lost however until property is sold in the second process. If there is no bidder, original owner continues to own it until 5pm of the next day of the auction.
In California, properties become delinquents after July 1, if not paid. There is no auction after 5 years, where power to sell can only be obtained and scheduled for auction sale. In California, county only has the right to sell a July 1, 2007-delinquent property on 2012 and actually sells the property on 2013 and half.
What happens then between 2007 and 2013? Purchaser gains the right over the land.
Immediate property rights is the advantage of tax deed. If a property is delinquent at 2003, property will be auctioned on 2008. When a bidder wins the property, he/she can immediately occupy the property and evict delinquents. The drawback though is it is a cash business. Though checks are accepted, purchase price is paid within 24 hours or on the time of auction. Failure to pay immediately bans the bidder from future county auctions forever.
There are 2 ways the state get to sell properties:
1. The state forecloses, then owns the property and auctions it off as the seller; and
2. The state obtains the power to sell from the court but doesn’t own the property;
Interest payments do not go either to investor or state because when a state owns a property, redemption is lost. Thereby, interest payments accrued from the effort of redeeming the property like in Texas and Tennessee are lost too. Redemption is never lost however until property is sold in the second process. If there is no bidder, original owner continues to own it until 5pm of the next day of the auction.
In California, properties become delinquents after July 1, if not paid. There is no auction after 5 years, where power to sell can only be obtained and scheduled for auction sale. In California, county only has the right to sell a July 1, 2007-delinquent property on 2012 and actually sells the property on 2013 and half.
What happens then between 2007 and 2013? Purchaser gains the right over the land.
Immediate property rights is the advantage of tax deed. If a property is delinquent at 2003, property will be auctioned on 2008. When a bidder wins the property, he/she can immediately occupy the property and evict delinquents. The drawback though is it is a cash business. Though checks are accepted, purchase price is paid within 24 hours or on the time of auction. Failure to pay immediately bans the bidder from future county auctions forever.
How to Buy Tax Lien Certificates As An Investment?
To buy tax lien certificates, you need to know which states and counties offer tax lien certificates first. Scan online for information about which states allow tax lien certificates to be raised. The data regarding houses that have been seized due to tax default debt can be acquired from county courts. You may have to visit these courts in person to get detailed information. Inquire in your own local county court. Create a database of lien certificates offered and the price of each one of them. Calculate the amount of risk involved, when buying the certificate. Check out the property itself and its tax records.
Know about the method of sale, for the lien certificate. They will mostly be sold in the form of auctions. If you are wondering how to buy tax lien certificates online, then know that certain state counties sell them directly online, through their official website. One example is Arizona. Before buying tax lien certificates online, make sure that you are assured of the authenticity of the website.
Know about the method of sale, for the lien certificate. They will mostly be sold in the form of auctions. If you are wondering how to buy tax lien certificates online, then know that certain state counties sell them directly online, through their official website. One example is Arizona. Before buying tax lien certificates online, make sure that you are assured of the authenticity of the website.
How to Buy a Short Sale?
The process of buying in a short sale, either in the real estate or fiscal arena, involves capitalizing on the sale of securities that are likely to fluctuate in price in the near future. The investor in such a sale also buys with the understanding that the seller is a potent future investor in the same instrument or property. The sales are transacted only to take care of sudden financial crisis and to prevent a foreclosure in the case of real estate.
The purchaser within a short sale benefits from a further drop in security price. This helps the buyer to retain the property for a short period of time and resell when security prices rise. A short sale investment profits from market fluctuations. While the seller loses due to the less-than-market-price, the investor benefits by having to hold on to the property or security for a short while only. When and as the repurchase of the instrument or property takes place, the 'closing' position is secured. Buyers invest in a short sale only for profit out of a good deal. It is but natural to jump at an offer that is lower than the asking rate in the market. Even though the profit may not be a huge one, the difference makes the short term investment worthwhile.
Buying a short sale offers the purchaser the following advantages:
• Deletion of negative impact of a foreclosure on credit history.
• Control over the instrument/property deal on account of the seller's urgency.
• Faster and less expensive transaction formalities.
• Discounted payoff that earns revenue as it lies dormant amidst market fluctuation.
• Protected economic recession proof expedition of the short sale transaction.
The purchaser within a short sale benefits from a further drop in security price. This helps the buyer to retain the property for a short period of time and resell when security prices rise. A short sale investment profits from market fluctuations. While the seller loses due to the less-than-market-price, the investor benefits by having to hold on to the property or security for a short while only. When and as the repurchase of the instrument or property takes place, the 'closing' position is secured. Buyers invest in a short sale only for profit out of a good deal. It is but natural to jump at an offer that is lower than the asking rate in the market. Even though the profit may not be a huge one, the difference makes the short term investment worthwhile.
Buying a short sale offers the purchaser the following advantages:
• Deletion of negative impact of a foreclosure on credit history.
• Control over the instrument/property deal on account of the seller's urgency.
• Faster and less expensive transaction formalities.
• Discounted payoff that earns revenue as it lies dormant amidst market fluctuation.
• Protected economic recession proof expedition of the short sale transaction.
How Does a Short Sale Work?
Short selling or selling short is an investor's technique. Those in the stock market benefit via such transactions with every fall in stock price and urgent sale of the instruments. The share market thrives on such short term sales and purchases of company and government stock. A short sale is risky and needs to be considered with caution. In real estate, most short sales involve real estate deals that come out of the endeavor to sell property for the sake of repaying a loan. Most real estate short sales arise out of economic hardship, to facilitate loss mitigation. The short sale enables the homeowner or debtor to sell the property mortgaged with the bank at a price lesser than the market price and hand over the proceeds to the lender. This helps the individual out of debt.
In finance, a short sale involves the intent repurchase of the instrument or stock at a later stage. The transaction begins with the purchase of a financial instrument at a price lower than that of the market. The idea behind such a deal is to attempt a profit out of an estimated further decline in market price. This kind of 'going short' works for collection of securities that may or may not drop in price any lower and are exposed to the risk of a loss.
In finance, a short sale involves the intent repurchase of the instrument or stock at a later stage. The transaction begins with the purchase of a financial instrument at a price lower than that of the market. The idea behind such a deal is to attempt a profit out of an estimated further decline in market price. This kind of 'going short' works for collection of securities that may or may not drop in price any lower and are exposed to the risk of a loss.
Who Should Follow Deed Restrictions?
The deed restrictions are to be followed by all subsequent owners of the property or the real estate. It you are thinking of home buying, it is very necessary to obtain a copy of the deed restriction from the seller or the realtor. You may find some deeds overly restrictive which would reduce the quality of living.
You also have the option of obtaining the deed restriction copy from your respective county's courthouse. When you are buying the property, you have to follow the obligations in the deed; and when you are selling the property, you have to make sure that the property buyer follows it carefully. If the home buyer is thinking about removing deed restrictions, he should get it released from the parties who enforced the deeds initially.
You also have the option of obtaining the deed restriction copy from your respective county's courthouse. When you are buying the property, you have to follow the obligations in the deed; and when you are selling the property, you have to make sure that the property buyer follows it carefully. If the home buyer is thinking about removing deed restrictions, he should get it released from the parties who enforced the deeds initially.
Who Carries Out Deed Restrictions Enforcement?
In case of land with subdivisions, the builder or developer initiates the restrictions on the property. After he prepares the restrictions, he then files them at the county office for them to be operational on subsequent property owners. However, the entity who prepares the restrictions should keep in mind the comfort of the homeowners. Generally, the homeowners' association is responsible for supervising if people follow the obligations properly, according to the deed restrictions. However, in order to oversee the deed restrictions, there is no formal authority as such.
What are Deed Restrictions?
Deed restrictions are written documents which relate to the conditions of using the property. These restrictions can include anything that is not supposed to be done using the property or to the property itself. A good example of a deed restriction is a restrictive covenant. The conditions mentioned in a deed restriction can differ based on the builder of the property, the type of real estate, and the location. For example; a developer may put restrictions in the deed regarding the number of floors in one building, what material should be used for the construction, the building's distance from the street, and business carried out from the premises.
Developers may even mention the materials that are to be used in making fences around the house, how many or what kind of pets can be allowed in the house, if surrounding trees can be cut, certain conditions of gardening and landscaping, etc. Similarly, there can be many such restrictions mentioned in the deed. Remember that the conditions remain with the property and are to be followed by all property owners.
Developers may even mention the materials that are to be used in making fences around the house, how many or what kind of pets can be allowed in the house, if surrounding trees can be cut, certain conditions of gardening and landscaping, etc. Similarly, there can be many such restrictions mentioned in the deed. Remember that the conditions remain with the property and are to be followed by all property owners.
How to Calculate Cash on Cash Return?
Let me present you with the cash on cash return formula. The above definition itself must have made it quite clear. The formula is as follows:
Cash on Cash Return = [Net Cash Inflow (Before Taxes) / Total Cash Investment] x 100
So if one has made a $160,000 investment in a property and you receive a $20,000 cash return in one year, the cash on cash return percentage would be:
Cash on Cash Return = ($20,000 / $160,000) x 100 = 12.5%
Thus, calculating the cash on cash return ratio can provide you with an idea about the profitability of your real estate investments. The higher the cash on cash return ratio, faster you will recover your initial investment in a property. Properties with a low ratio are a liability, unless their value is progressively increasing in the property market. A periodic evaluation of your investment returns is essential and constructs like cash on cash return can help you do it. Hope this article has clarified your understanding of this financial concept applied in real estate investment evaluation.
Cash on Cash Return = [Net Cash Inflow (Before Taxes) / Total Cash Investment] x 100
So if one has made a $160,000 investment in a property and you receive a $20,000 cash return in one year, the cash on cash return percentage would be:
Cash on Cash Return = ($20,000 / $160,000) x 100 = 12.5%
Thus, calculating the cash on cash return ratio can provide you with an idea about the profitability of your real estate investments. The higher the cash on cash return ratio, faster you will recover your initial investment in a property. Properties with a low ratio are a liability, unless their value is progressively increasing in the property market. A periodic evaluation of your investment returns is essential and constructs like cash on cash return can help you do it. Hope this article has clarified your understanding of this financial concept applied in real estate investment evaluation.
What is Cash on Cash Return?
Simply put, cash on cash return is the ratio of the profit or cash flow generated by a property and the amount of net investment made in it, multiplied by 100. The cash flow or profit generated, which is used in its calculation, does not include taxes charged on the returns. That is, the profit considered is before taxes. Thus it is the percentage of cash that is recovered from your initial investment in a property.
This calculated ratio is mostly considered only a year after the purchase of a property. It is only an estimate of the fresh profit generated a year after property purchase. It is not an accurate estimate for later years as it doesn't take the time factor into consideration. A cash on cash return vs IRR (internal rate of return) comparison would reveal that the two concepts are quite different.
Most importantly, this ratio doesn't consider the appreciation in price of property that may happen with time. Even though a property might be generating meager cash flow, its inherent worth might have increased with time. A cash on cash return percentage does not take this fact into consideration. It is not the ultimate indicator of the profitability of any property investment. It can only provide you with an idea about the profit you are making through rental properties from any other business related to it.
This calculated ratio is mostly considered only a year after the purchase of a property. It is only an estimate of the fresh profit generated a year after property purchase. It is not an accurate estimate for later years as it doesn't take the time factor into consideration. A cash on cash return vs IRR (internal rate of return) comparison would reveal that the two concepts are quite different.
Most importantly, this ratio doesn't consider the appreciation in price of property that may happen with time. Even though a property might be generating meager cash flow, its inherent worth might have increased with time. A cash on cash return percentage does not take this fact into consideration. It is not the ultimate indicator of the profitability of any property investment. It can only provide you with an idea about the profit you are making through rental properties from any other business related to it.
What are Good Investments?
Securities
If you are looking for low risk investments, then it's always advised to invest in securities such as bonds. The returns are higher and the best part is you can have a peaceful sleep knowing that your savings are in safe hands and growing. When you invest in securities you are earning a passive income
IRA
IRA is an ideal example of best investments . IRA (Individual Retirement Accounts) are considered beneficial for anyone investing in it. They provide stability, security and also charge a minimum taxable interest. The best part about IRA is you can even contribute as low as USD 50 every month. Smart young people who have invested in IRAs are sure to be financially secure when they reach their 30's or 40's.
Real Estate
Real estate is the riskiest and the most expensive investment but it also has its perks. Don't consider your home as real estate property, We are talking about property that you specifically purchase as a real estate investment. You can buy a condo and put it on lease or sale but always remember to check all the required documents before renting or selling your property to someone else.
Green Funds
Environmental-Friendly companies are the future and people should invest in their future. We all know that money is power and investing in socially conscious companies will benefit us later in the future. Green companies are likely to do very well.
Investing while you're young is a great way to ensure that you see a better future. There are many other types of investments in the market. It's really hard to pick one and call it the best investment for people. You can invest in anything you want to, just be sure what you're investing in and always have a strategic plan.
Ways to Get Rich
Firstly, stop daydreaming about becoming rich. Many people spend hours of their precious time thinking about money, the things they could do if they had money; instead of thinking of ways to get rich! So, first develop that intense desire to achieve your goal, prepare yourself for extensive hard work that will be required. Also, try and make your mind and body more alert and active with mind exercises. After all, one cannot just sit back, relax and wish to become rich! Once you are done with this mental preparation, you can use any of the below mentioned ways of wealth creation.
Saving: Though it may sound old fashioned, saving is one of the sure shot ways of getting rich. When you accumulate money little by little, you will have lots of hard-earned money one day. Saving money does not mean you buy a piggy bank and save a penny in it everyday! Make concrete plans, decide a specific figure that you think can provide you financial security. Next decide how much you can save every month to reach that figure as soon as possible. According to finance experts, a person can save 30 percent of his monthly income with ease. Try and save more than 30 percent. That will mean giving up frequent dinners in five star hotels and other such things. When you reach your goal figure, move to the next step.
Investment: Invest the saved money into any assets you feel confident about. There are risky investments and risk less or safe investments. If you opt for risky investments, you can earn a lot of money, that too very fast, but you can also lose everything you invest! Stock investing, property investing, etc. are counted as risky investments. Safe investments, on the other hands, assure you monetary benefits, however in very less amounts. Treasury bills, bonds, gold etc. are some examples of safe investment. Whichever investment you choose, study the pros and cons carefully, weigh the long term benefits against present benefits, and then only venture into it.
Earn Through Internet: In today's world of technology, making money online has become very easy, that too by sitting at home itself! But how do you get rich online? Well, you can earn lots of money by any of the following options; web content development, online business, and affiliate marketing. All these options are selling like hotcakes in the market today, and the best part of it is that each of them is a safe investment.
Market Your Talent: Bitter as it may sound, but talent sells more than brains today. If you do not trust investments or lack a business instinct, this is your way of getting rich. Firstly, find out what your talent is, what you are good at. Once you find it out, work on it, try to be 'the best' at it. When you think you are an expert at that specific thing, start advertising it. You will definitely get invited to showcase your talent at different places. Once people know that you are actually good, you can start demanding more money. Another way to market talent is to take part in reality shows. You do not need to win the first position. The second or third position can earn you a lot money and fame.
If you are looking for low risk investments, then it's always advised to invest in securities such as bonds. The returns are higher and the best part is you can have a peaceful sleep knowing that your savings are in safe hands and growing. When you invest in securities you are earning a passive income
IRA
IRA is an ideal example of best investments . IRA (Individual Retirement Accounts) are considered beneficial for anyone investing in it. They provide stability, security and also charge a minimum taxable interest. The best part about IRA is you can even contribute as low as USD 50 every month. Smart young people who have invested in IRAs are sure to be financially secure when they reach their 30's or 40's.
Real Estate
Real estate is the riskiest and the most expensive investment but it also has its perks. Don't consider your home as real estate property, We are talking about property that you specifically purchase as a real estate investment. You can buy a condo and put it on lease or sale but always remember to check all the required documents before renting or selling your property to someone else.
Green Funds
Environmental-Friendly companies are the future and people should invest in their future. We all know that money is power and investing in socially conscious companies will benefit us later in the future. Green companies are likely to do very well.
Investing while you're young is a great way to ensure that you see a better future. There are many other types of investments in the market. It's really hard to pick one and call it the best investment for people. You can invest in anything you want to, just be sure what you're investing in and always have a strategic plan.
Ways to Get Rich
Firstly, stop daydreaming about becoming rich. Many people spend hours of their precious time thinking about money, the things they could do if they had money; instead of thinking of ways to get rich! So, first develop that intense desire to achieve your goal, prepare yourself for extensive hard work that will be required. Also, try and make your mind and body more alert and active with mind exercises. After all, one cannot just sit back, relax and wish to become rich! Once you are done with this mental preparation, you can use any of the below mentioned ways of wealth creation.
Saving: Though it may sound old fashioned, saving is one of the sure shot ways of getting rich. When you accumulate money little by little, you will have lots of hard-earned money one day. Saving money does not mean you buy a piggy bank and save a penny in it everyday! Make concrete plans, decide a specific figure that you think can provide you financial security. Next decide how much you can save every month to reach that figure as soon as possible. According to finance experts, a person can save 30 percent of his monthly income with ease. Try and save more than 30 percent. That will mean giving up frequent dinners in five star hotels and other such things. When you reach your goal figure, move to the next step.
Investment: Invest the saved money into any assets you feel confident about. There are risky investments and risk less or safe investments. If you opt for risky investments, you can earn a lot of money, that too very fast, but you can also lose everything you invest! Stock investing, property investing, etc. are counted as risky investments. Safe investments, on the other hands, assure you monetary benefits, however in very less amounts. Treasury bills, bonds, gold etc. are some examples of safe investment. Whichever investment you choose, study the pros and cons carefully, weigh the long term benefits against present benefits, and then only venture into it.
Earn Through Internet: In today's world of technology, making money online has become very easy, that too by sitting at home itself! But how do you get rich online? Well, you can earn lots of money by any of the following options; web content development, online business, and affiliate marketing. All these options are selling like hotcakes in the market today, and the best part of it is that each of them is a safe investment.
Market Your Talent: Bitter as it may sound, but talent sells more than brains today. If you do not trust investments or lack a business instinct, this is your way of getting rich. Firstly, find out what your talent is, what you are good at. Once you find it out, work on it, try to be 'the best' at it. When you think you are an expert at that specific thing, start advertising it. You will definitely get invited to showcase your talent at different places. Once people know that you are actually good, you can start demanding more money. Another way to market talent is to take part in reality shows. You do not need to win the first position. The second or third position can earn you a lot money and fame.
Friday, January 21, 2011
How to manage a business?
If you have just started out as an entrepreneur then you need to learn how to manage a business successfully. Starting your own organization needs a lot more than just financial investment. We will tell you the important qualities that will make you a good business manager. Have you always wanted to own a small business that will allow you the opportunity to be your own boss? While starting your own cafe or book shop may seem like a distant dream, once you have your initial capital in hand, running your own business can be child's play as long as you learn how to manage a business effectively. If you want to manage a small business, then you need to be aware of the responsibilities that come with the job. Depending on what the business is, your responsibilities can range from ordering the things you need, managing the employees, assigning their duties, managing accounts and finances, marketing and advertising the place, customer relations, etc. Your key responsibilities can seem overwhelming, with effective management skills you will be able to run an organization pretty well.
Tuesday, January 11, 2011
COMMERCIAL REAL ESTATE IN CANCUN
Deciding to buy commercial real estate in your own country is a big decision, but making the decision to purchase commercial Real Estate in Cancun can seem even more daunting. That's why it is so important to enlist the services of a professional, licensed real estate agent who specializes in commercial properties in Cancun, Mexico. These experienced individuals can help you to buy or sell an empty lot, a hotel, a retail space, a professional office building, an apartment building or rental property, a restaurant, a warehouse, a gas station, or any other type of commercial Cancun real estate, Playa del Carmen, Puerto Morelos and Puerto Aventuras or other outlying areas around Cancun.
It is important to locate a Mexico Real Estate agent who not only specializes in commercial Cancun real estate and Playa del Carmen Real Estate in Mexico, but who has a proven track record in locating and/or selling commercial properties. One way to accomplish this is to ensure that your property has the maximum amount of exposure when selling, and that you are being shown an adequate variety of available properties when buying or selling commercial property in Cancun, Mexico. Experienced real estate agents should have an extensive business brokerage network with which to accomplish this, whether you are buying or selling real estate in Cancun.
A good Real Estate agent will be able to deal with a variety of clients with various needs when it comes to the type of property they are looking for, whether it is residential income producing real estate or any other type of commercial real estate in Cancun. A real estate team that has a strong background in acquisitions and divestitures that only come from experience working with large investment banks and corporations that deal with Commercial Real Estate in Cancun. If you take these important facts into consideration, you will find the perfect commercial real estate investment opportunity in Cancun or the surrounding areas.
It is important to locate a Mexico Real Estate agent who not only specializes in commercial Cancun real estate and Playa del Carmen Real Estate in Mexico, but who has a proven track record in locating and/or selling commercial properties. One way to accomplish this is to ensure that your property has the maximum amount of exposure when selling, and that you are being shown an adequate variety of available properties when buying or selling commercial property in Cancun, Mexico. Experienced real estate agents should have an extensive business brokerage network with which to accomplish this, whether you are buying or selling real estate in Cancun.
A good Real Estate agent will be able to deal with a variety of clients with various needs when it comes to the type of property they are looking for, whether it is residential income producing real estate or any other type of commercial real estate in Cancun. A real estate team that has a strong background in acquisitions and divestitures that only come from experience working with large investment banks and corporations that deal with Commercial Real Estate in Cancun. If you take these important facts into consideration, you will find the perfect commercial real estate investment opportunity in Cancun or the surrounding areas.
IS PROPERTY STILL A GOOD INVESTMENT
After the problems the property market has been through is property now or ever going to be a good investment.
Property has always been a solid venture to invest money into. At the moment the economic climate tends to suggest that investments that were once taken for granted as safe are now more of a risk. It has certainly been the case for centuries that land is the best investment, it still is but it is out with the means of most so property is the next best step.
Property in Scotland has taken quite a dip in worth over the last 12 months but taken in the context of a ten year period it is still incredibly high. Back in 1999 a one bedroom flat in my area would have cost you in the region of thirty to forty thousand pounds. It's now double that. The difference between properties being sold now compared to last year is that they are no longer going for offers over the asking price. This is more of a fair system as now a property has a good chance of selling for the amount that it's worth.
There is a good chance that property prices will stay at their current level or go down. It just depends on how long the recession lasts. In Scotland particularly there has been a shortage of affordable housing for years now. Although prices may come in to line with buyers affordability it is also the case that there will be less mortgages available as the banks try to limit bad debt.
There have been stories of a number of different construction and housing companies stopping work on estates they were building due to the dip in property sales. This is a dire situation but it won’t last forever. The simple fact is that the U.K. Will come through the recession and when it does property will once more take its place as a solid investment.
Property has always been a solid venture to invest money into. At the moment the economic climate tends to suggest that investments that were once taken for granted as safe are now more of a risk. It has certainly been the case for centuries that land is the best investment, it still is but it is out with the means of most so property is the next best step.
Property in Scotland has taken quite a dip in worth over the last 12 months but taken in the context of a ten year period it is still incredibly high. Back in 1999 a one bedroom flat in my area would have cost you in the region of thirty to forty thousand pounds. It's now double that. The difference between properties being sold now compared to last year is that they are no longer going for offers over the asking price. This is more of a fair system as now a property has a good chance of selling for the amount that it's worth.
There is a good chance that property prices will stay at their current level or go down. It just depends on how long the recession lasts. In Scotland particularly there has been a shortage of affordable housing for years now. Although prices may come in to line with buyers affordability it is also the case that there will be less mortgages available as the banks try to limit bad debt.
There have been stories of a number of different construction and housing companies stopping work on estates they were building due to the dip in property sales. This is a dire situation but it won’t last forever. The simple fact is that the U.K. Will come through the recession and when it does property will once more take its place as a solid investment.
COMMERCIAL PROPERTIES IN GURGAON
Gurgaon, apart from being known as a city of Haryana is also known by its commercialization. Gurgaon being nearly located to Delhi and also being a National Capital Region (NCR) of India, has become a hub for commercial businesses. Many of the big and small industries have their set up at Gurgaon. This has led to the growth of the commercial properties in Gurgaon. A large number of commercial properties have already been constructed at Gurgaon, and a large number of them are still under construction.
Commercial properties include office spaces, malls, shops, hotels etc. and Gurgaon is the hub for such commercial properties. A large number of malls have already been constructed and others are ready for their launching with new techniques of architecture involved in it. The demand for office spaces and shops are becoming higher and higher with the passage of time. Gurgaon is developing very rapidly and this development is due to the growth of commercial industry at Gurgaon. The real estate builders are having their prime focus towards the construction of commercial properties at Gurgaon.
These properties are the fastest in profit generation, due to their increasing demand. These properties are constructed with lots of facilities and also it uses the modern style of architecture. There is a tough competition going among the builders to provide the best and the most affordable of such properties. A large no. of hotels are being constructed at Gurgaon. These hotels are beautifully designed and providing you luxurious stay with swimming pools, golf course, tennis court, etc. with it. Wide area are being used to construct such properties. The offices are full- fledged with all the facilities like parking area, security, 24 hrs. water supply and power back up etc.
These offices are being constructed as furnished or non- furnished, having furniture like computer table, book shelf, etc. with them. Price affordability is another important feature of the properties of Gurgaon. Apart from being a hub for industries, Gurgaon has also become a hub for these wonderful commercial properties that has taken the real estate market of Gurgaon to touch new heights of success.
Godrej Properties
Godrej Frontier or Godrej Garden Vistas is a real estate developer in India that fulfills its promises of offering good value, prime locations, excellent construction, and efficient support to all.
Commercial properties include office spaces, malls, shops, hotels etc. and Gurgaon is the hub for such commercial properties. A large number of malls have already been constructed and others are ready for their launching with new techniques of architecture involved in it. The demand for office spaces and shops are becoming higher and higher with the passage of time. Gurgaon is developing very rapidly and this development is due to the growth of commercial industry at Gurgaon. The real estate builders are having their prime focus towards the construction of commercial properties at Gurgaon.
These properties are the fastest in profit generation, due to their increasing demand. These properties are constructed with lots of facilities and also it uses the modern style of architecture. There is a tough competition going among the builders to provide the best and the most affordable of such properties. A large no. of hotels are being constructed at Gurgaon. These hotels are beautifully designed and providing you luxurious stay with swimming pools, golf course, tennis court, etc. with it. Wide area are being used to construct such properties. The offices are full- fledged with all the facilities like parking area, security, 24 hrs. water supply and power back up etc.
These offices are being constructed as furnished or non- furnished, having furniture like computer table, book shelf, etc. with them. Price affordability is another important feature of the properties of Gurgaon. Apart from being a hub for industries, Gurgaon has also become a hub for these wonderful commercial properties that has taken the real estate market of Gurgaon to touch new heights of success.
Godrej Properties
Godrej Frontier or Godrej Garden Vistas is a real estate developer in India that fulfills its promises of offering good value, prime locations, excellent construction, and efficient support to all.
DEVELOPING COUNTRIES ARE A LUCRATIVE MARKET OF PROPERTY INVESTMENT
The article is about the profitable market of investment in the developing nations. There are three categories in which the countries of the world can be divided. Most of the Asian counties such as China and India are developing countries with a rapidly growing economy.
There are three categories in which the counties of the world can be divided. The developed countries such as America, Japan, Europe, is the first category nations that have reached a saturation point of growth in the economy.
The underdeveloped nations are the countries where the development has not even started and is still reeling under the old ways of living with negligible growth in the various sectors of economy. Most of the countries in the African continent are underdeveloped.
The third category of developing countries includes the nations which are gradually adopting the various technological advancements and progressing rapidly in all the fields. Most of the Asian counties such as China and India are developing countries with a rapidly growing economy. In the next few decades the countries are expected to become the developed nations of the world.
As the economy of developing countries is under the phase of development the realty market of the cities are bound to have profitable propositions of investment. The economical growth of a country prospers it with good development in all the industries.
The realty sector is a major industry which inevitably grows with the economical development of a nation. A nation will only exhibit the growth of its cities by providing ample facilities to its residents to live in the city. Now, a city will offer all the comforts when the housing facilities are well developed to meet the demands of all the sections of the society.
The various commercials such as shops, malls, industries, factories require land for their set up and therefore in a developing nation the realty market is bound to flourish. India is a developing nation and has shown remarkable appreciation of properties in its cities. The developing NCR cities have very high property rates. Amongst all the NCR cities the Gurgaon property has reported maximum appreciation of housing and commercials.
Many realty giants and other investors have purchased properties in the developing countries. These cities of developing countries are offering a very lucrative market because they are developing very fast with modern infrastructural facilities.
The demand of land, ready housing spaces and commercial centers is always high in case of developing nations. Various facilities such as hospitals, educational institutes, transport, shopping malls, recreations centers etc. are part of the development planning in developing nations. All such set-up requires land to erect the buildings. That is how the property demand rises in all the developing nations creating a very profitable market of investment.
The appreciation of Gurgaon property in India has been estimated to be 10-12 times the initial purchase prices in some of the locations. The realty market has been a very lucrative market for foreign investors too. Many international developers are launching commercial and residential projects in the city.
Besides land, the houses and commercial centers are a great investment opportunities in developing nations. The number of people migrating to the growing nations in search of good job prospects is quite high. The number of students coming to such nations for professional qualifications and further studies is also quite high. Such people coming to the city demand housing facilities on rent therefore the rental property is also a very profitable investment.
Many investors have purchased residential facilities such as flats or independent houses for the purpose of renting only. The rents of the residential facilities can provide a steady income source in the developing nations.
The commercials on rent are all the more profitable because of high rental incomes from the business centers, official spaces, shops, showrooms etc.
The hotspots of property investments in India currently are Mumbai and Gurgaon with a remarkable property growth in recent years. The cities have the most booming realty market of the nation.
There are three categories in which the counties of the world can be divided. The developed countries such as America, Japan, Europe, is the first category nations that have reached a saturation point of growth in the economy.
The underdeveloped nations are the countries where the development has not even started and is still reeling under the old ways of living with negligible growth in the various sectors of economy. Most of the countries in the African continent are underdeveloped.
The third category of developing countries includes the nations which are gradually adopting the various technological advancements and progressing rapidly in all the fields. Most of the Asian counties such as China and India are developing countries with a rapidly growing economy. In the next few decades the countries are expected to become the developed nations of the world.
As the economy of developing countries is under the phase of development the realty market of the cities are bound to have profitable propositions of investment. The economical growth of a country prospers it with good development in all the industries.
The realty sector is a major industry which inevitably grows with the economical development of a nation. A nation will only exhibit the growth of its cities by providing ample facilities to its residents to live in the city. Now, a city will offer all the comforts when the housing facilities are well developed to meet the demands of all the sections of the society.
The various commercials such as shops, malls, industries, factories require land for their set up and therefore in a developing nation the realty market is bound to flourish. India is a developing nation and has shown remarkable appreciation of properties in its cities. The developing NCR cities have very high property rates. Amongst all the NCR cities the Gurgaon property has reported maximum appreciation of housing and commercials.
Many realty giants and other investors have purchased properties in the developing countries. These cities of developing countries are offering a very lucrative market because they are developing very fast with modern infrastructural facilities.
The demand of land, ready housing spaces and commercial centers is always high in case of developing nations. Various facilities such as hospitals, educational institutes, transport, shopping malls, recreations centers etc. are part of the development planning in developing nations. All such set-up requires land to erect the buildings. That is how the property demand rises in all the developing nations creating a very profitable market of investment.
The appreciation of Gurgaon property in India has been estimated to be 10-12 times the initial purchase prices in some of the locations. The realty market has been a very lucrative market for foreign investors too. Many international developers are launching commercial and residential projects in the city.
Besides land, the houses and commercial centers are a great investment opportunities in developing nations. The number of people migrating to the growing nations in search of good job prospects is quite high. The number of students coming to such nations for professional qualifications and further studies is also quite high. Such people coming to the city demand housing facilities on rent therefore the rental property is also a very profitable investment.
Many investors have purchased residential facilities such as flats or independent houses for the purpose of renting only. The rents of the residential facilities can provide a steady income source in the developing nations.
The commercials on rent are all the more profitable because of high rental incomes from the business centers, official spaces, shops, showrooms etc.
The hotspots of property investments in India currently are Mumbai and Gurgaon with a remarkable property growth in recent years. The cities have the most booming realty market of the nation.
PROPERTY IN THE FRENCH ALPS
Many UK people visit the French Alps on holiday every year for their annual skiing holiday, but why do they keep coming back? Are you on the lookout for a French ski chalet? Then you need to do some research and learn the market conditions since there are over a hundred resorts that France has to offer. You get to choose from a wide range of ski properties that suites the tastes of all types of investors and sports enthusiasts alike.
The last five years has seen the total property market grow consistently with an estimated 1.5 million Britons taking winter sports holidays in the 2009-2010 season. This has proved beneficial to prospective property buyers who let out their properties. This is because of the growing demand from the visiting tourist skiers for better accommodation and other luxury amenities, the properties are now being built with high quality standards. This has left back the chalets and apartments of the previous years to remain in their place. The old apartment buildings and hotels are being bought and getting transformed into latest design chalet style structures.
The French Alps are a skiers paradise and the region does get sunshine too. The climate is pleasant for tourists who can enjoy activities like mountain biking, canyoning, hiking, etc. Investing in property in such a region can yield year round rentability. Therefore, for your investment, make a careful choice of the resort which is favorable in both seasons.
Of course ski resorts generate high returns in the winter season but look into what the property can fetch in off season. A resort can be more appealing if it has other features than just slopes. Restaurants, bars, shops and cafes' can be more attracting and there should be something for the non-skiers too like snow-show hiking or sledging, water rafting, etc.
The villages are at a lower altitude and the weather suitable for skiing is relatively short. Make sure there are linked to high altitudes via lifts or cable cars so the tourists have more options to spend in their winter holidays.
The ski resorts which are near to airport has an influence on the prices. The French Alps are within an hour's drive from Geneva and tourists and visitors are common in the weekends. The well established resorts such as Chamonix, Val d'Isere and Maribel are the expensive lot with jaw dropping prices. Still you can find spots with reasonable prices and which have nearby access to the airports with a pleasant atmosphere all the year through.
The last five years has seen the total property market grow consistently with an estimated 1.5 million Britons taking winter sports holidays in the 2009-2010 season. This has proved beneficial to prospective property buyers who let out their properties. This is because of the growing demand from the visiting tourist skiers for better accommodation and other luxury amenities, the properties are now being built with high quality standards. This has left back the chalets and apartments of the previous years to remain in their place. The old apartment buildings and hotels are being bought and getting transformed into latest design chalet style structures.
The French Alps are a skiers paradise and the region does get sunshine too. The climate is pleasant for tourists who can enjoy activities like mountain biking, canyoning, hiking, etc. Investing in property in such a region can yield year round rentability. Therefore, for your investment, make a careful choice of the resort which is favorable in both seasons.
Of course ski resorts generate high returns in the winter season but look into what the property can fetch in off season. A resort can be more appealing if it has other features than just slopes. Restaurants, bars, shops and cafes' can be more attracting and there should be something for the non-skiers too like snow-show hiking or sledging, water rafting, etc.
The villages are at a lower altitude and the weather suitable for skiing is relatively short. Make sure there are linked to high altitudes via lifts or cable cars so the tourists have more options to spend in their winter holidays.
The ski resorts which are near to airport has an influence on the prices. The French Alps are within an hour's drive from Geneva and tourists and visitors are common in the weekends. The well established resorts such as Chamonix, Val d'Isere and Maribel are the expensive lot with jaw dropping prices. Still you can find spots with reasonable prices and which have nearby access to the airports with a pleasant atmosphere all the year through.
HAWAII INVESTMENT PROPERTY
Most Americans opt to invest in houses, condos, and commercial properties. They know that their home can be a good source of cash if ever they do sell these back in the market. As long as they are purchasing property that can balance their wealth against the other kinds of investments like bonds, stocks, and annuities. For example, those who have been in the investment business truly appreciate the last five years of their assets booming. This is the same with Hawaii investment property.
The boom in the Hawaii investment property is like baby boomers. These investments are currently dominating the market.
According to a study that has been conducted by the National Association of Realtors, second homes and vacation properties like the Hawaii investment property.
For employees, it's only logical that they think of investments whenever they are approaching the retirement age. In that way, they can be assured of money coming in even when they are not working.
This is also an ideal place for them to put their hard-earned savings. They would want to protect these as much as they can because these are their blood, sweat, and tears and it would be such a waste if these just vanish there and then.
Hawaii investment property is not any different. Unlike other kinds of investments, it is very visible, tangible, and enduring. You can rent it out or you can keep it for future use.
You and your friends as well as your business associates need this as a perk.
Chances of well-researched real estate investments eventually become worthless and are null and void. That is why more and more people are coming up with Hawaiian investment property.
If you are already intrigued, then go talk to a mortgage broker who specializes on Hawaiian investment property and already ask for advice. The whole point of this is to keep the eye on the prize.
Investors are always looking for small condos that they can hold onto the future value. In order for you to make the right decision, just examine the goal in your purchasing.
Here's a very important tip. Until you truly examine what you want out of your investment, then there is no point in choosing Hawaiian investment property.
You need to be really knowledgeable on what you are getting into so that you get the best deal available for you.
Do not make the common mistake that most investors make. Choose the investment form that is appropriate for you in the long run.
You may love the place the minute you see it but if this is not really for you, then you will see the cracks eventually.
The boom in the Hawaii investment property is like baby boomers. These investments are currently dominating the market.
According to a study that has been conducted by the National Association of Realtors, second homes and vacation properties like the Hawaii investment property.
For employees, it's only logical that they think of investments whenever they are approaching the retirement age. In that way, they can be assured of money coming in even when they are not working.
This is also an ideal place for them to put their hard-earned savings. They would want to protect these as much as they can because these are their blood, sweat, and tears and it would be such a waste if these just vanish there and then.
Hawaii investment property is not any different. Unlike other kinds of investments, it is very visible, tangible, and enduring. You can rent it out or you can keep it for future use.
You and your friends as well as your business associates need this as a perk.
Chances of well-researched real estate investments eventually become worthless and are null and void. That is why more and more people are coming up with Hawaiian investment property.
If you are already intrigued, then go talk to a mortgage broker who specializes on Hawaiian investment property and already ask for advice. The whole point of this is to keep the eye on the prize.
Investors are always looking for small condos that they can hold onto the future value. In order for you to make the right decision, just examine the goal in your purchasing.
Here's a very important tip. Until you truly examine what you want out of your investment, then there is no point in choosing Hawaiian investment property.
You need to be really knowledgeable on what you are getting into so that you get the best deal available for you.
Do not make the common mistake that most investors make. Choose the investment form that is appropriate for you in the long run.
You may love the place the minute you see it but if this is not really for you, then you will see the cracks eventually.
TIPS TO BUYING PROPERTY IN TURKEY
Right from the haunting ancient cities to the breathtakingly beautiful beaches and the awe-inspiring architecture, Turkey has been voted as one of the most popular destinations amongst the foreign property buyers in the world today. If buying property in the wonderful land of Turkey is top on your agenda, then there are few factors you might have to take into consideration!
Because Turkey is such a diverse, vast and fascinating nation, a country that spans two whole continents, and borders eight other different nations and with the most pleasant climatic conditions possible, it is very fair to say that this nation has its fair share of hot locations to choose from when investing in property.
Buying property in any country in the world can be a daunting task that is filled with all kinds of uncertainties. What’s more, if you do not understand or speak the language of that particular country, then you are in for a tough time. For all those who fish to buy property in the beautiful country of Turkey that is filled with rich history and culture, delectable food, pleasant weather and hospitable people.
Turkey has now become a popular and an equally important destination for foreigners who are interested in buying property. Today, there are more than 55,000 foreign citizens living in Turkey and this number is increasing rapidly. Most foreigners prefer to invest in property in the Mediterranean region, the Aegean region and in Istanbul.
Things to Consider when Buying Property In Turkey
There are many issues to take into consideration before you go ahead and buy property in Turkey. First go through the reciprocity principle, which would state that you could buy property in Turkey only if the Turkish citizens can buy property in your country. If these nationals are allowed to buy property in your country, then likewise you will also be able to invest in their property. However, there are two very distinct limitations. Firstly, foreign citizens are not allowed to buy property in areas that are restricted to military use. Secondly, the property must be located in an area designated for office or residential use only.
If you are a foreigner who is interested in buying property in Turkey, here are three very important tips that you are advised to follow:
• Start off by checking with the Local Land Registry Office to see whether the title of the concerned property is absolutely clean (Tapu).
• Check for any unpaid taxes with the Local Tax Office.
• Check for illegal issues if any like improper floors with the Local Municipality.
Once you are sure that the above three steps are positively clear, then you must submit a certain petition with the Land Registry Office along with the photocopies of your foreign passports and the land title. Also, send in a copy of the request for permission. This process could take up to 8 weeks in the coastal regions and about 6 weeks in Istanbul.
Once you obtain permission to purchase property along with the requirements of Article 35 of Law 2644 for real estate acquisition, then the property can safely be bought.
Hot Spot Investment Properties in Turkey
If you are a property investor who is looking for a fantastic home or a safe and secure yet profitable investment or even if you seeking the best ROI from off shore property, then here are a couple of hot spots that you should check out.
It is but obvious that Istanbul will be the first on the list of hotspots. This city is expanding at an incredible pace and is being invested in heavily by foreign tourists all over the world. So, if you are looking for a good investment opportunity with long-term potential, then buy property in Istanbul.
If you want to invest in a profitable property but yet want to spend your holidays relaxing in the sun, then Bodrum should be ideal for you. This is one of the most important resort destinations in all of Turkey and also has its own international airport.
Altinkum is another good location for property investors. The town has scenic beaches and because it has become so popular, the property rates have also been increasing by the year.
If you are looking for a lovely location with pretty villas and splendid beaches and you are not too particular about easy accessibility, then Kalkan is a beautiful location to invest in. with its spectacular bay view and the stunning villa properties, it is a hot favorite.
Yes, buying property in Turkey can be an extremely hassle free process and a simple one at that if you know what exactly to expect in advance. But, at the end of the day, you’ll sure be satisfied with your investment – what with all the beaches, the culture, the food and the people – who wouldn’t want to invest in property in the beautiful nation of Turkey?
Because Turkey is such a diverse, vast and fascinating nation, a country that spans two whole continents, and borders eight other different nations and with the most pleasant climatic conditions possible, it is very fair to say that this nation has its fair share of hot locations to choose from when investing in property.
Buying property in any country in the world can be a daunting task that is filled with all kinds of uncertainties. What’s more, if you do not understand or speak the language of that particular country, then you are in for a tough time. For all those who fish to buy property in the beautiful country of Turkey that is filled with rich history and culture, delectable food, pleasant weather and hospitable people.
Turkey has now become a popular and an equally important destination for foreigners who are interested in buying property. Today, there are more than 55,000 foreign citizens living in Turkey and this number is increasing rapidly. Most foreigners prefer to invest in property in the Mediterranean region, the Aegean region and in Istanbul.
Things to Consider when Buying Property In Turkey
There are many issues to take into consideration before you go ahead and buy property in Turkey. First go through the reciprocity principle, which would state that you could buy property in Turkey only if the Turkish citizens can buy property in your country. If these nationals are allowed to buy property in your country, then likewise you will also be able to invest in their property. However, there are two very distinct limitations. Firstly, foreign citizens are not allowed to buy property in areas that are restricted to military use. Secondly, the property must be located in an area designated for office or residential use only.
If you are a foreigner who is interested in buying property in Turkey, here are three very important tips that you are advised to follow:
• Start off by checking with the Local Land Registry Office to see whether the title of the concerned property is absolutely clean (Tapu).
• Check for any unpaid taxes with the Local Tax Office.
• Check for illegal issues if any like improper floors with the Local Municipality.
Once you are sure that the above three steps are positively clear, then you must submit a certain petition with the Land Registry Office along with the photocopies of your foreign passports and the land title. Also, send in a copy of the request for permission. This process could take up to 8 weeks in the coastal regions and about 6 weeks in Istanbul.
Once you obtain permission to purchase property along with the requirements of Article 35 of Law 2644 for real estate acquisition, then the property can safely be bought.
Hot Spot Investment Properties in Turkey
If you are a property investor who is looking for a fantastic home or a safe and secure yet profitable investment or even if you seeking the best ROI from off shore property, then here are a couple of hot spots that you should check out.
It is but obvious that Istanbul will be the first on the list of hotspots. This city is expanding at an incredible pace and is being invested in heavily by foreign tourists all over the world. So, if you are looking for a good investment opportunity with long-term potential, then buy property in Istanbul.
If you want to invest in a profitable property but yet want to spend your holidays relaxing in the sun, then Bodrum should be ideal for you. This is one of the most important resort destinations in all of Turkey and also has its own international airport.
Altinkum is another good location for property investors. The town has scenic beaches and because it has become so popular, the property rates have also been increasing by the year.
If you are looking for a lovely location with pretty villas and splendid beaches and you are not too particular about easy accessibility, then Kalkan is a beautiful location to invest in. with its spectacular bay view and the stunning villa properties, it is a hot favorite.
Yes, buying property in Turkey can be an extremely hassle free process and a simple one at that if you know what exactly to expect in advance. But, at the end of the day, you’ll sure be satisfied with your investment – what with all the beaches, the culture, the food and the people – who wouldn’t want to invest in property in the beautiful nation of Turkey?
COMMERCIAL REAL ESTATE INVESTING
Commercial Real Estate Investing is not the path to easy riches, but it does provide a path to wealth creation that is surprisingly available to middle and upper income Americans. This path is both available and largely unused. Successful Commercial Real Estate Investing is hard work, but it rewards those who are willing to do the work. Many elderly have had a comfortable retirement because of successful real estate investments, many students have gone to college funded by successful Commercial Real Estate Investments, and many boats and vacation homes have been financed by Commercial Real Estate Investments. Such accomplishments cannot be taken for granted. Successful Commercial Real Estate Investors must have the skill, knowledge, and energy to find appropriate properties, evaluate them as investments, arrange for financing, and either manage these properties, evaluate them as investments, arrange for financing, and either manage these properties or find a buyer for them.
Commercial Real Estate Investing implies investing in real estate for a specific economic end to make a profit. It does not matter if the property under consideration is a single-family home, a duplex, a condo, an office building or an ice rink. Purchasing such a property to make a profit makes it a commercial activity.
Successful real estate investors optimize their leverage. The general rule is "borrow to buy, sell for cash." Most leverage can make a good investment a great investment. Wise real estate investors generally look for those properties that provide the most financing. That is why single family residences make such attractive investments.
Real estate ownership is encouraged by the tax system. Two important advantages come into play here. The first is interest costs. The second has to do with the concept of depreciation. Both of these factors combine to make real estate investing very attractive.
Interest costs can be fully tax deductible for your personal residence or for any Commercial Real Estate Investment. This means the cost of funds is reduced by your marginal tax rate. Second important tax advantage to owning real estate is the ability to depreciate any property being rented. Depreciation is a legitimate deduction used to offset revenue that would otherwise be subject to taxes. This means you can show a loss on your real estate investment, use that loss to reduce your personal income, and thus lower your taxes. Anything to do with taxes tends to be a bit tricky, and depreciation is no exception.
Investing in real estate is like owning your own business. Many individuals want to gain more control over their lives. The regimen of working for someone else, taking orders, and being subject to an array of arbitrary rules may feel stultifying. It is not uncommon for such individuals to want to start their own business to fain more control over their lives. For many people, this may not be a practical alternative. However, there may be another path to financial independence. Commercial Real Estate Investment is an activity you control entirely. You find the opportunities, arrange the financing, bring all the elements together, and create something where there was nothing before. An individual can enter this business starting small and staying small, with the real estate investing being a profitable hobby. As an alternative, an investor can start small and over time, with a few good moves, grow his or her business into a high paying full time job.
Commercial Real Estate Investors are debtors. They borrow money now to pay it back later. In an inflationary environment this confers a tremendous advantage to the buyer. Interest rates adjust for the level of inflation by adding an inflation premium to the real rate of interest.
Success in Commercial Real Estate Investing is a function of the experience of the investor. The first time investor should not go for an industrial or office building property unless very special circumstances are present. Success in this area comes best to the novice who starts small and simple and acquires the necessary experience for success over time.
Commercial Real Estate Investing implies investing in real estate for a specific economic end to make a profit. It does not matter if the property under consideration is a single-family home, a duplex, a condo, an office building or an ice rink. Purchasing such a property to make a profit makes it a commercial activity.
Successful real estate investors optimize their leverage. The general rule is "borrow to buy, sell for cash." Most leverage can make a good investment a great investment. Wise real estate investors generally look for those properties that provide the most financing. That is why single family residences make such attractive investments.
Real estate ownership is encouraged by the tax system. Two important advantages come into play here. The first is interest costs. The second has to do with the concept of depreciation. Both of these factors combine to make real estate investing very attractive.
Interest costs can be fully tax deductible for your personal residence or for any Commercial Real Estate Investment. This means the cost of funds is reduced by your marginal tax rate. Second important tax advantage to owning real estate is the ability to depreciate any property being rented. Depreciation is a legitimate deduction used to offset revenue that would otherwise be subject to taxes. This means you can show a loss on your real estate investment, use that loss to reduce your personal income, and thus lower your taxes. Anything to do with taxes tends to be a bit tricky, and depreciation is no exception.
Investing in real estate is like owning your own business. Many individuals want to gain more control over their lives. The regimen of working for someone else, taking orders, and being subject to an array of arbitrary rules may feel stultifying. It is not uncommon for such individuals to want to start their own business to fain more control over their lives. For many people, this may not be a practical alternative. However, there may be another path to financial independence. Commercial Real Estate Investment is an activity you control entirely. You find the opportunities, arrange the financing, bring all the elements together, and create something where there was nothing before. An individual can enter this business starting small and staying small, with the real estate investing being a profitable hobby. As an alternative, an investor can start small and over time, with a few good moves, grow his or her business into a high paying full time job.
Commercial Real Estate Investors are debtors. They borrow money now to pay it back later. In an inflationary environment this confers a tremendous advantage to the buyer. Interest rates adjust for the level of inflation by adding an inflation premium to the real rate of interest.
Success in Commercial Real Estate Investing is a function of the experience of the investor. The first time investor should not go for an industrial or office building property unless very special circumstances are present. Success in this area comes best to the novice who starts small and simple and acquires the necessary experience for success over time.
BORROW YOUR WAY TO WEALTH
The Credit Maximizer: Some Helpful Hints for Real Estate Investors and Other Mortgage Shoppers
If you're buying real estate, your credit score counts big. Author and industry insider F. Michael Johnson explains some surprising ways to make yours better. If you're in the market for real estate, what do you do first? Do you: a) find a really great property and head to the bank to take out a loan, or b) get approved for the best loan possible and then look for an appropriate property? If you're like most people you probably said "a." But according to real estate investing insider F. Michael Johnson, you're putting the cart before the horse. Whether you're looking for an investment property or a home to live in, it pays to take care of financing issues first. And one of those issues-a critical one-is your credit score.
"Most people probably don't even think of their credit score until they find a property they want and are desperate to get a loan," says Johnson, author of Borrow Your Way to Wealth: How to start with nearly nothing and end up rich in real estate! (Acacia Publishing, 2004, ISBN: 0-9666572-6-8, $11.95). "But if you wait until then, you've lost your leverage. I strongly advise any potential real estate buyer to get his or her financial ducks in a row now-long before they start looking at a house to live in or a duplex to rent out."
In days gone by, most credit decisions were made based upon an underwriter's ability to navigate through your credit report, explains Johnson. The trouble with this process was that subjectivity could have far too much to do with the underwriter's decision to bring much comfort to the lending industry overall. Thus, with necessity once again being the mother of invention, a tool called credit scoring was created.
Today, the three big credit bureaus' reports now come with a credit score. And just how important is this score, you may ask? Well, for starters, scores are being used to determine your creditworthiness for most consumer credit purchases. They are now as a matter of course being widely used to determine your insurance rates and even whether you can qualify to rent an apartment.
The trouble with credit scoring is that consumers, for the most part, have no idea how credit scores are calculated or, worse than that, how to improve their score. Johnson explains both, below:
The Basics: How to Check-and Correct-Your Credit Score
STEP ONE: Obtain a copy of your credit report from each of the big three credit bureaus. Presently, they are available for approximately $8 each. Credit reports can be ordered either online or by contacting each bureau individually at the addresses below:
Equifax:
P.O. Box 740241
Atlanta, Georgia 3074-0241
1-800-685-1111
Experien: (formerly TRW)
P.O. Box 2104
Allen, Texas 75013-2104
1-888-397-3742
Transunion:
P.O. Box 34012
Fullerton, California 92634
1-800-888-4213
STEP TWO: Check your reports for any inaccuracies. Be sure that your credit information has been reported correctly to all three bureaus.
STEP THREE: If mistakes are found, you'll need to contact the creditor who erroneously reported the information and have them remove it. If they say that they will, that is not good enough. You'll need a letter from them correcting their mistake.
STEP FOUR: Forward the letter to the three credit bureaus for correction.
STEP FIVE: A new credit report is ordered to make sure the mistakes have been accurately corrected by all three bureaus.
The difficulty with this method is that it can take several weeks to get the information correctly reported at the credit bureau level. Also, remember that any corrected information must be reported to all three bureaus. If not, the old information will still continue to pop up, adversely affecting your score.
Because of the length of time that's required to fix credit mistakes in this standard manner, consumers will often lose a loan or end up paying a much higher interest rate than if the mistakes had not occurred. The solution to this problem is a fairly new process called "rapid rescoring."
Rapid Rescoring: A Little-Known Way to Boost That Important Number
Rapid rescoring can virtually provide you with a completely rescored credit report within one to five days. One caveat: these rapid rescoring services don't work directly with the general public. They work with mortgage lenders and brokers, so you will have to do a bit of legwork to find them.
Also, unlike the "free" standard method of getting your credit corrected and rescored, rapid rescoring does come with a cost. The fee is based on the number of tradelines that have to be corrected and with how many bureaus they must be corrected. However, says Johnson, if rapid rescoring gets you a better interest rate, the service will quickly pay for itself. He explains the steps involved in rapid rescoring:
STEP ONE: The consumer (borrower) supplies the broker with letters of correction from creditors who have misreported the borrower's credit.
STEP TWO: The broker requests a rapid rescore of the borrower's credit.
STEP THREE: The borrower's correction letters/requests and supporting documentation are forwarded by the lender to a repository company.
STEP FOUR: The credit repository company verifies the information.
STEP FIVE: The credit repository forwards the information to a repository contact.
STEP SIX: The repository contact verifies the documentation supplied by the borrower and makes the necessary modification to the credit file.
STEP SEVEN: The repository sets up a suppression file regarding the modified date to prevent changes by subsequent tape updates.
STEP EIGHT: The repository confirms updated credit scores as available.
STEP NINE: The broker runs a new credit report for the borrower with updated credit scores.
"Myth conceptions": Clearing up Common Credit Score Misunderstanding
Once you've corrected all credit report mistakes, is there anything else you can do to maximize your credit score and thus get a better mortgage rate? Johnson says yes. There are plenty of myths floating around out there that can damage your credit. Knowing what they are is the first step to avoid making a costly mistake.
MYTH #1: Old medical collections don't really affect my credit score.
TIP #1: Dead wrong. Medical collections are often resold again and again. Each time they're resold they can be newly reported to the credit bureaus.
MYTH #2: It's no big deal if I'm thirty days late on a small $15 credit card payment.
TIP #2: Payment history constitutes a whopping 35 percent of your credit score. That late $15 credit card payment can torpedo your credit score.
MYTH #3: If I shop around and consolidate most of my credit cards onto just a couple of cards, I can better my score.
TIP #3: Not necessarily. Credit card consolidation in this manner usually entails credit inquiries. Each inquiry can drop your score between five to ten points. Also, if your remaining credit cards are now close to their limit, you could have really done yourself a credit disservice. Maxed-out credit card balances work against you. Your credit limit ratio makes up 30 percent of your credit score. Try to keep your balances less than 50 percent of your available credit limit.
MYTH #4: I think I'll just put that appliance I've been wanting on my credit card instead of getting an installment loan. I put all of my charges on my credit cards.
TIP #4: You might want to rethink this a little bit. The reason being that 10 percent of your score comes from the types of credit you use (i.e., installment, revolving, mortgages, etc.) Try not to be top- heavy in any one category.
MYTH #5: I consider myself a pretty wise shopper. I'll check around at different places to see who will give me the best deal on that new car I want to buy.
TIP #5: Beware, beware, beware!!! As unfair as it might seem, every time you give someone permission to run a credit inquiry on you it pulls down your credit score. You can very easily eliminate yourself from getting the best interest rate by shopping at too many places for the best interest rate. Ten percent of your credit score is derived from credit inquiries.
MYTH #6: I'll start fresh with my credit. I'll get rid of every card I haven't been using for the past two years.
TIP #6: Be careful on this one, too. Fifteen percent of your credit score comes from the length of your credit history. Don't end up taking a long credit history and cutting it too short. What's that old saying about throwing out the baby with the bath water?
MYTH #7: I'm in the process of shopping for a house and I think I'll pay off some of my old outstanding collection accounts before we close on it.
TIP #7: Nix on this one too. The best thing to do is pay them off at the closing table when you sign for your new home or refinance it. In this manner, you are not giving a current update to adverse credit before you sign on the dotted line. Paying old collections off any earlier can adversely affect your score and consequently your interest rate as well.
"As you become more aware of credit scoring and how you can affect it, you'll begin making sound credit decisions that will improve your financial future," says Johnson. "This is true for everyone, but it's especially important for people who want to shop for a mortgage in the near future. And if you're buying real estate as an investment, it is absolutely critical. I teach my clients many strategies for making serious money in real estate, but they all begin with a person's credit score. Start improving yours now. It's never too late, but more to the point, it's never too early."
About the Author:
F. Michael Johnson spent his early years as a Hollywood writer, as well as co-founder and executive vice president of a publicly-held entertainment company. During that time he appeared in such publications as The New York Times and Premiere magazine, and was featured on HBO and KFYI. Since transitioning to real estate in the early nineties, he has been creating successful real estate investment portfolios in one of the hottest markets in the country for clients from all over the U.S. He's helped hundreds to master a method of acquiring real estate investment properties using 100 percent financing from wholesale lenders, tax deferments from the IRS, seller concessions to offset most closing costs, and help from the big three credit reporting agencies in obtaining the best interest rates possible.
About the Book:
Borrow Your Way to Wealth: How to start with nearly nothing and end up rich in real estate! (Acacia Publishing, 2004, ISBN: 0-9666572-6-8, $11.95) is available at bookstores nationwide, online booksellers, Book Clearing House by calling 800-431-1579, and direct from the publisher at www.acaciapublishing.com or by calling 866-265-4553.
If you're buying real estate, your credit score counts big. Author and industry insider F. Michael Johnson explains some surprising ways to make yours better. If you're in the market for real estate, what do you do first? Do you: a) find a really great property and head to the bank to take out a loan, or b) get approved for the best loan possible and then look for an appropriate property? If you're like most people you probably said "a." But according to real estate investing insider F. Michael Johnson, you're putting the cart before the horse. Whether you're looking for an investment property or a home to live in, it pays to take care of financing issues first. And one of those issues-a critical one-is your credit score.
"Most people probably don't even think of their credit score until they find a property they want and are desperate to get a loan," says Johnson, author of Borrow Your Way to Wealth: How to start with nearly nothing and end up rich in real estate! (Acacia Publishing, 2004, ISBN: 0-9666572-6-8, $11.95). "But if you wait until then, you've lost your leverage. I strongly advise any potential real estate buyer to get his or her financial ducks in a row now-long before they start looking at a house to live in or a duplex to rent out."
In days gone by, most credit decisions were made based upon an underwriter's ability to navigate through your credit report, explains Johnson. The trouble with this process was that subjectivity could have far too much to do with the underwriter's decision to bring much comfort to the lending industry overall. Thus, with necessity once again being the mother of invention, a tool called credit scoring was created.
Today, the three big credit bureaus' reports now come with a credit score. And just how important is this score, you may ask? Well, for starters, scores are being used to determine your creditworthiness for most consumer credit purchases. They are now as a matter of course being widely used to determine your insurance rates and even whether you can qualify to rent an apartment.
The trouble with credit scoring is that consumers, for the most part, have no idea how credit scores are calculated or, worse than that, how to improve their score. Johnson explains both, below:
The Basics: How to Check-and Correct-Your Credit Score
STEP ONE: Obtain a copy of your credit report from each of the big three credit bureaus. Presently, they are available for approximately $8 each. Credit reports can be ordered either online or by contacting each bureau individually at the addresses below:
Equifax:
P.O. Box 740241
Atlanta, Georgia 3074-0241
1-800-685-1111
Experien: (formerly TRW)
P.O. Box 2104
Allen, Texas 75013-2104
1-888-397-3742
Transunion:
P.O. Box 34012
Fullerton, California 92634
1-800-888-4213
STEP TWO: Check your reports for any inaccuracies. Be sure that your credit information has been reported correctly to all three bureaus.
STEP THREE: If mistakes are found, you'll need to contact the creditor who erroneously reported the information and have them remove it. If they say that they will, that is not good enough. You'll need a letter from them correcting their mistake.
STEP FOUR: Forward the letter to the three credit bureaus for correction.
STEP FIVE: A new credit report is ordered to make sure the mistakes have been accurately corrected by all three bureaus.
The difficulty with this method is that it can take several weeks to get the information correctly reported at the credit bureau level. Also, remember that any corrected information must be reported to all three bureaus. If not, the old information will still continue to pop up, adversely affecting your score.
Because of the length of time that's required to fix credit mistakes in this standard manner, consumers will often lose a loan or end up paying a much higher interest rate than if the mistakes had not occurred. The solution to this problem is a fairly new process called "rapid rescoring."
Rapid Rescoring: A Little-Known Way to Boost That Important Number
Rapid rescoring can virtually provide you with a completely rescored credit report within one to five days. One caveat: these rapid rescoring services don't work directly with the general public. They work with mortgage lenders and brokers, so you will have to do a bit of legwork to find them.
Also, unlike the "free" standard method of getting your credit corrected and rescored, rapid rescoring does come with a cost. The fee is based on the number of tradelines that have to be corrected and with how many bureaus they must be corrected. However, says Johnson, if rapid rescoring gets you a better interest rate, the service will quickly pay for itself. He explains the steps involved in rapid rescoring:
STEP ONE: The consumer (borrower) supplies the broker with letters of correction from creditors who have misreported the borrower's credit.
STEP TWO: The broker requests a rapid rescore of the borrower's credit.
STEP THREE: The borrower's correction letters/requests and supporting documentation are forwarded by the lender to a repository company.
STEP FOUR: The credit repository company verifies the information.
STEP FIVE: The credit repository forwards the information to a repository contact.
STEP SIX: The repository contact verifies the documentation supplied by the borrower and makes the necessary modification to the credit file.
STEP SEVEN: The repository sets up a suppression file regarding the modified date to prevent changes by subsequent tape updates.
STEP EIGHT: The repository confirms updated credit scores as available.
STEP NINE: The broker runs a new credit report for the borrower with updated credit scores.
"Myth conceptions": Clearing up Common Credit Score Misunderstanding
Once you've corrected all credit report mistakes, is there anything else you can do to maximize your credit score and thus get a better mortgage rate? Johnson says yes. There are plenty of myths floating around out there that can damage your credit. Knowing what they are is the first step to avoid making a costly mistake.
MYTH #1: Old medical collections don't really affect my credit score.
TIP #1: Dead wrong. Medical collections are often resold again and again. Each time they're resold they can be newly reported to the credit bureaus.
MYTH #2: It's no big deal if I'm thirty days late on a small $15 credit card payment.
TIP #2: Payment history constitutes a whopping 35 percent of your credit score. That late $15 credit card payment can torpedo your credit score.
MYTH #3: If I shop around and consolidate most of my credit cards onto just a couple of cards, I can better my score.
TIP #3: Not necessarily. Credit card consolidation in this manner usually entails credit inquiries. Each inquiry can drop your score between five to ten points. Also, if your remaining credit cards are now close to their limit, you could have really done yourself a credit disservice. Maxed-out credit card balances work against you. Your credit limit ratio makes up 30 percent of your credit score. Try to keep your balances less than 50 percent of your available credit limit.
MYTH #4: I think I'll just put that appliance I've been wanting on my credit card instead of getting an installment loan. I put all of my charges on my credit cards.
TIP #4: You might want to rethink this a little bit. The reason being that 10 percent of your score comes from the types of credit you use (i.e., installment, revolving, mortgages, etc.) Try not to be top- heavy in any one category.
MYTH #5: I consider myself a pretty wise shopper. I'll check around at different places to see who will give me the best deal on that new car I want to buy.
TIP #5: Beware, beware, beware!!! As unfair as it might seem, every time you give someone permission to run a credit inquiry on you it pulls down your credit score. You can very easily eliminate yourself from getting the best interest rate by shopping at too many places for the best interest rate. Ten percent of your credit score is derived from credit inquiries.
MYTH #6: I'll start fresh with my credit. I'll get rid of every card I haven't been using for the past two years.
TIP #6: Be careful on this one, too. Fifteen percent of your credit score comes from the length of your credit history. Don't end up taking a long credit history and cutting it too short. What's that old saying about throwing out the baby with the bath water?
MYTH #7: I'm in the process of shopping for a house and I think I'll pay off some of my old outstanding collection accounts before we close on it.
TIP #7: Nix on this one too. The best thing to do is pay them off at the closing table when you sign for your new home or refinance it. In this manner, you are not giving a current update to adverse credit before you sign on the dotted line. Paying old collections off any earlier can adversely affect your score and consequently your interest rate as well.
"As you become more aware of credit scoring and how you can affect it, you'll begin making sound credit decisions that will improve your financial future," says Johnson. "This is true for everyone, but it's especially important for people who want to shop for a mortgage in the near future. And if you're buying real estate as an investment, it is absolutely critical. I teach my clients many strategies for making serious money in real estate, but they all begin with a person's credit score. Start improving yours now. It's never too late, but more to the point, it's never too early."
About the Author:
F. Michael Johnson spent his early years as a Hollywood writer, as well as co-founder and executive vice president of a publicly-held entertainment company. During that time he appeared in such publications as The New York Times and Premiere magazine, and was featured on HBO and KFYI. Since transitioning to real estate in the early nineties, he has been creating successful real estate investment portfolios in one of the hottest markets in the country for clients from all over the U.S. He's helped hundreds to master a method of acquiring real estate investment properties using 100 percent financing from wholesale lenders, tax deferments from the IRS, seller concessions to offset most closing costs, and help from the big three credit reporting agencies in obtaining the best interest rates possible.
About the Book:
Borrow Your Way to Wealth: How to start with nearly nothing and end up rich in real estate! (Acacia Publishing, 2004, ISBN: 0-9666572-6-8, $11.95) is available at bookstores nationwide, online booksellers, Book Clearing House by calling 800-431-1579, and direct from the publisher at www.acaciapublishing.com or by calling 866-265-4553.
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