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Real Estate Investing – How to Get Started

You’ve heard the stories about people making millions in real estate, so is it really any surprise why so many people view real estate as a serious investment vehicle? Real Estate investing offers more security than the stock market and provides returns of at least equal magnitude, coupled with attractive tax benefits. Apart from that it really does sounds cool to be ‘in real estate’. Let’s face it, anybody can trade stocks from their phone or home computer. Real estate investment, however, is a real head turner whenever it comes to tangible assets.

One of the greatest challenges in real estate investment is finding the money up front to acquire your first real estate investment property. Surprisingly, though, this is not your biggest obstacle. That’s right! Finding the cash upfront is NOT the greatest obstacle to real estate investment. Facts are, hardly anyone who buys real estate has the money in their personal account to pay for it. And that’s where your banker comes in. Let’s face it, do you know anyone who owns their own home? I mean really owns it? Of course you’ll know lots of people who have a property in their name they call their own. Take a look, however, into their personal finances and soon you’ll discover who really owns their property. It’s the bank, of course. Remember, your liability is your bank manager’s asset. So if these people can use the bank’s money to buy a property, then why can’t you?

I know ‘owning’ your own home may sound like the obvious way to go, but if you really want to get on the first rung of the real estate investment ladder, then this is the best way to get started in real estate investment. Why then is this first step completely overlooked by many people? Just take a look at how many are still renting instead of buying property. Now of course the relationship between rented and private housing prices varies from country to country and even from area to area. But wherever you go you will still find many people renting, simply because in their minds “they don’t have enough money to buy a house.” In reality, though, it would be much cheaper for them to buy!

When you rent, you are more or less throwing good money down the drain. Of course you have the pleasure of a home, but from the point of view of real estate investing, you are not actually building for the long term. Remember, every dollar you spend on rent is a dollar you will never see again. Whereas if you own your own home, instead of paying rent you are paying your mortgage. And even though there’s such a variance in terms of what mortgage deals are on offer across the market, the basics of mortgages are more or less the same. Every month you make a payment which consists of two parts: interest and principle. You might compare the interest part to rent. These dollars are gone once they’re paid, however, the part of the payment that goes to the principle is money you keep. Every dollar that is used to pay off the principal is a dollar in YOUR own pocket.

So if you’re thinking about getting started in real estate and you don’t yet ‘own’ your own home, now’s the time to take your first step towards building capital with your own real estate investment. Financially, it makes sense because the real estate investment vehicle also supplies greater opportunity for building your net worth. Simply put, when real estate prices go up, so does the value of property. Conversely, the money you owe at the bank — your mortgage — remains the same. Compare this to the financial reality of those people who continue paying rent. Their net worth remains the same. However, their landlord’s net worth is doing very nicely, thank you, and their landlord is happy for the status quo to continue. So if you would rather build your own capital, then consider buying your own home!

Many home owners accumulate more money through appreciation of their property assets than they do working a full time job. Be warned, though, this is not always the case. As you know, the price of real estate can go down as well as up. If for some reason you have to sell your home in a down market, it can be a costly venture. In fact, you wouldn’t be the first to end up with a house worth considerably less than the mortgage resting on it. So make sure you don’t overstretch yourself financially by taking on too much. In the long run real estate prices have risen, but in any cycle there are down periods. By staying within your limits and being patient, you’ll be able to sit tight through the hard times yet profit from the long term upwards trend in real estate investing.

Financing Your Business – Tips and Advise

Business loans are as diverse as the different businesses are? If you have a keen desire to own a business but your hands are tied due to financial resources, this is the time you can kick away the depression and avail the opportunity already awaiting you. Business loans are very essential for any entrepreneur for starting up his venture. You can get these loans without any troublesome documentation procedure. Business loans are harder to get than personal credit – it is for the business and not paying off your bills.

Business loans are riskier than home loans, 2.Business loans have more aspects to them than home loans, and 3. Business loans are also available at online websites and online lenders. Banks also do give business loans.

Generally, with these loans, one can borrow anything between $ 5000 to $100000 where the repayment period varies from 3 to 25 years. Generally, the cheap secured loans are based on some factors like credit history and value of the collateral, and repayment capacity of the person. Generally, a set of healthy ratios should reflect a well managed company. A company with strong profits, an ability to pay off its debt, and an above average turnover of assets should be good position to meet future obligations.

20 percent of the project costs must be privately financed through equity or other sources. Interest rate is the market rate of interest for similar securities at the time bonds are sold; rates are fixed for the term of the loan. Generally, more resources mean more investment and consequently more profits. This holds true if you effectively utilize your business investments.

Applicants do not have to give any collateral for that. You can apply for these loans online and offline, though processing online is preferred.

Commercial real estate loans are secured by office buildings, mixed-use properties, religious facilities and other commercial properties. At December 31, 2007, consumer loans totaled $43.8 million, or 15.3% of the total loan portfolio. Commercial loans can also provide business financing for acquisition or buyout. Commercial loan officers are provided with authority to approve loans up to a certain level. Some can approve small loans of $50,000, $100,000; however, most loans over $250,000 are normally approved by a committee.

Commercial loans are the only ones, which are open only for companies or businesses that need a capital injection or additional capital. Capital is the first thing required in any business venture you hold, may be to purchase more equipment, stock or even to buy new premises.

Lenders of such kind of loans are available. Lenders keep borrowers’ asset until the time the loan amount is not recovered. As the amount is reimbursed, the placed asset is handed over to the borrower concerned. Lenders from across the country will be able to reach out to the small business via direct marketing. This increase in competition also should reduce the costs of funds to small businesses.

Lenders that are actively looking for small businesses in need of loans often offer a quicker process of obtaining a loan than other lending institutions.

Security:

Secured bad credit business loans are available for a larger duration of 5 to 30 years. This gives enough duration for the borrowers to come out of bad credit phase. Secured small business loans can be availed putting forth collateral, whereas unsecured loans do not require any such requirement. In consonance to the individual specific requirements and state-of-affairs any of these two options can be availed. Securitization enables lenders to improve their return on capital, achieve liquidity, and achieve balance sheet diversity. And borrowers whose loans are eligible for securitization typically enjoy lower financing costs.

Secured loan can help you and your business grow with proper financial support. Apart from that secured business loan also helps in fast recovery of your firm after suffering from huge losses by its bad credit options.

Unsecured

Unsecured business loans are designed specifically for business persons to finance their need for capital to start up or expand a business. Unsecured business loan does not require a borrower to put collateral against the loan. Unsecured loans are those that are provided based on the trust between the lender and the borrower and the lenders belief in the borrower’s ability to pay back the loan. In most cases to receive small business loans the business owner’s credit report will be pulled, and the loan will be based on the credit score.

SBA

SBA loans make up a large percentage of the total volume of small-business loans originated by commercial banks. The SBA data then allow us to examine the default behavior of a large segment of the small-business loan market. SBA would like to reach the 25 million small businesses in the US today And also since the money is free there is a lot of competition for these grants.

Consider some of the things your banker will help you with. Considerations for raising equity capital can include, among others, personal investment, investment from partners, or contributions from outside sources such as investors or venture capital providers.

Investing in Equestrian?

The majority of us regular Joes wish we had more money, but it seems the only way to make more money, is to actually have money in the first place, i.e. to invest.

This is not strictly true. There are many ways of investing small amounts of money, some of them you would not necessarily class as “investing” but investing by definition means – laying out money or capital in an enterprise with the expectation of profit.

Now take betting on a horse for example, I’m sure your significant other isn’t going to buy into it when you tell them that you are investing, but by definition, you are. Every investment has an element of risk to it, betting on a horse of course, has a little more!

The other kinds of investing “Alternative Investments” are usually the area of collectors and hobbyists, but these can also generate a decent return on your money. This includes everything from art, antique furniture and wine to vintage cars, stamps and toys.

When it comes to wine, there is a convincing argument that as an investment, it produces returns comparable to equities and the cost of fine wines will keep on rising.

There are many other avenues to pursue when you are not wealthy enough already to invest your money into property and real estate. Taking a look in your attic to see what delights you may find could be a start.

The internet holds lots of information in regards to ideas for investing, there are bonds to consider, stocks and shares, gold or silver, even currency! Investing need not be for the privileged people, even us, the average Joes can start investing somewhere along the spectrum. Remember you have to start somewhere, and take your first little steps, but always think BIG.