KNOWLEDGE FINANCIAL.COM
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RICH GUIDE: WHY AREN'T YOU RICH?
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FREE FINANCIAL ADVICE. WAYS TO SAVE MONEY,
MAKE MONEY, AND GET OUT OF DEBT!
PERSONAL FINANCE. What are you doing with your
money in the wake of the financial crisis? ---
Where is the safe place to put money? My personal
finance!
FINANCIAL FREEDOM: A SMARTEST WAY TO
PREPARE A BETTER FUTURE. Money-Making
Information You'll Need to Succeed
US ECONOMY, THE FINANCIAL SYSTEM, THE
CREDIT MARKET. WHAT'S GOING?
MONEY MANAGEMENT. Ten Resolutions to Make
Your Financial Life Easier
FINANCE: THE BANKING AND THE AMERICAN
FINANCIAL SYSTEM HISTORY, SUCCESS AND
FAILURE
SAVING MONEY: THE SECRETS OF SAVING; WAYS
TO SAVE A LOT OF MONEY AND GETTING RICHER
IRA / INDIVIDUAL RETIREMENT ACCOUNT. What is
an IRA? And what does it matter?
SOCIAL SECURITY; THE ULTIMATE RETIREMENT
GUIDE. HOW DOES SOCIAL SECURITY WORK?
FINANCIAL REPORT: How to bring your spending
under control, so that you get the most out of every
dollar. 8 Reasons to get pre-qualified for a
mortgage loan!
ESTATE PLANNING: Estate planning, is it really the
process of accumulating and disposing of an
estate to maximize the goals of the estate owner to
avoid probate, to lower the tax?
Assets Protection: Don't Get Sued: Five Tips To
Protect Your Company! Types of Asset-Protection
Vehicles;
Many different strategies have been developed
over the years claiming to protect assets. How to
protect yourself from...?
BUILDING WEALTH! How to Become Wealthy?
Nine Truths That Can Set You on the Path to
Financial Freedom
FINANCIAL KNOWLEDGE: The Successful
Investment Journey, Ten Tips For The Successful
Long-Term Investor
FINANCIAL SYSTEM: AMERICA’S MONEY CRISIS /
Bailout 101.
LEARN ABOUT: Top 6 Biggest U.S. Government
Financial Bailouts In History!
2-LEARN ABOUT MARKET CRASHES HISTORY.
HOW AND WHEN?
3-LEARN ABOUT: THE UNITED STATE, AND THE
WORLD MOST IMPORTANT FINANCIAL
INSTITUTIONS!
4-LEARN ABOUT THE COMPLETE FINANCIAL
TURMOIL, THE CREDIT CRISIS!
BANKING & FINANCE / Knowledge Financial.com;
an educational, a life changing website with great
ideas of small business, with important things to
know about our economy, and investment
INVESTMENT: MAKE YOURSELF RICHER BY
INVESTING THE RIGHT WAY IN THE RIGHT
PRODUCTS. REAL ESTATE INVESTMENTS CAN
HELP
STOCK MARKET: STOCK MARKET A WAY TO
INVEST AND MULTIPLY YOUR PROFITS. THESE
INDUSTRIES HAS THOUSANDS OF COMPANIES TO
BUY STOCKS FROM.
FOREX MARKET: THE LARGEST MARKET IN THE
WORLD TO INVEST AND GET RICHER IF YOU USE
THE RIGHT TOOL.
TAX CERTIFICATES: / TAX DEED: A BETTER WAY
TO INVEST MONEY AND GET RICHER.
TAX LIENS: How Can You Safely Earn 18% to 240%
Per Year On Your Investments? Yes you can... By
investing in Government Issued Tax Liens, Tax
deed, Tax Certificates.
REITs: REIT: Real Estate Investment Trust. A
GREAT WAY TO INVEST IN REAL ESTATE WITHOUT
TAKING A MORTGAGE LOAN
COMMERCIAL INVESTMENT. COMMERCIAL REAL
ESTATE; A BETTER WAY TO INVEST AND GET
RICHER! MULTI-WAYS TO WIN BIG IN REAL
ESTATE. WHAT IS COMMERCIAL REAL ESTATE?
PENSION PLANS: THE ULTIMATE RETIREMENT
GUIDE; HOW TO RETIRE EARLY AND RETIRE
REACH. WHAT ARE 401K, ROTH 401K, INDIVIDUAL
401K, 403B, 457 PLAN, THRIFT SAVINGS PLAN.
IDENTITY THEFT: WATCH OUT, STOP IT FROM
HAPPENING, GET THE TOOLS YOU NEED TO
PREVENT IT RIGHT HERE! AT KNOWLEDGE
FINANCIAL.COM
INSURANCE 101: THE IMPORTANCE OF
INSURANCE IN SOMEONE'S LIFE.
EVERYTHING YOU NEED TO KNOW ABOUT
INSURANCE; NOW IS YOUR CHANCE TO KNOW
HOW TO SAVE MONEY ON YOUR INSURANCE!
LEARN ABOUT THE 15 INSURANCE POLICIES YOU
DON'T NEED!
MAKE MONEY, AND GET OUT OF DEBT!
PERSONAL FINANCE. What are you doing with your
money in the wake of the financial crisis? ---
Where is the safe place to put money? My personal
finance!
FINANCIAL FREEDOM: A SMARTEST WAY TO
PREPARE A BETTER FUTURE. Money-Making
Information You'll Need to Succeed
US ECONOMY, THE FINANCIAL SYSTEM, THE
CREDIT MARKET. WHAT'S GOING?
MONEY MANAGEMENT. Ten Resolutions to Make
Your Financial Life Easier
FINANCE: THE BANKING AND THE AMERICAN
FINANCIAL SYSTEM HISTORY, SUCCESS AND
FAILURE
SAVING MONEY: THE SECRETS OF SAVING; WAYS
TO SAVE A LOT OF MONEY AND GETTING RICHER
IRA / INDIVIDUAL RETIREMENT ACCOUNT. What is
an IRA? And what does it matter?
SOCIAL SECURITY; THE ULTIMATE RETIREMENT
GUIDE. HOW DOES SOCIAL SECURITY WORK?
FINANCIAL REPORT: How to bring your spending
under control, so that you get the most out of every
dollar. 8 Reasons to get pre-qualified for a
mortgage loan!
ESTATE PLANNING: Estate planning, is it really the
process of accumulating and disposing of an
estate to maximize the goals of the estate owner to
avoid probate, to lower the tax?
Assets Protection: Don't Get Sued: Five Tips To
Protect Your Company! Types of Asset-Protection
Vehicles;
Many different strategies have been developed
over the years claiming to protect assets. How to
protect yourself from...?
BUILDING WEALTH! How to Become Wealthy?
Nine Truths That Can Set You on the Path to
Financial Freedom
FINANCIAL KNOWLEDGE: The Successful
Investment Journey, Ten Tips For The Successful
Long-Term Investor
FINANCIAL SYSTEM: AMERICA’S MONEY CRISIS /
Bailout 101.
LEARN ABOUT: Top 6 Biggest U.S. Government
Financial Bailouts In History!
2-LEARN ABOUT MARKET CRASHES HISTORY.
HOW AND WHEN?
3-LEARN ABOUT: THE UNITED STATE, AND THE
WORLD MOST IMPORTANT FINANCIAL
INSTITUTIONS!
4-LEARN ABOUT THE COMPLETE FINANCIAL
TURMOIL, THE CREDIT CRISIS!
BANKING & FINANCE / Knowledge Financial.com;
an educational, a life changing website with great
ideas of small business, with important things to
know about our economy, and investment
INVESTMENT: MAKE YOURSELF RICHER BY
INVESTING THE RIGHT WAY IN THE RIGHT
PRODUCTS. REAL ESTATE INVESTMENTS CAN
HELP
STOCK MARKET: STOCK MARKET A WAY TO
INVEST AND MULTIPLY YOUR PROFITS. THESE
INDUSTRIES HAS THOUSANDS OF COMPANIES TO
BUY STOCKS FROM.
FOREX MARKET: THE LARGEST MARKET IN THE
WORLD TO INVEST AND GET RICHER IF YOU USE
THE RIGHT TOOL.
TAX CERTIFICATES: / TAX DEED: A BETTER WAY
TO INVEST MONEY AND GET RICHER.
TAX LIENS: How Can You Safely Earn 18% to 240%
Per Year On Your Investments? Yes you can... By
investing in Government Issued Tax Liens, Tax
deed, Tax Certificates.
REITs: REIT: Real Estate Investment Trust. A
GREAT WAY TO INVEST IN REAL ESTATE WITHOUT
TAKING A MORTGAGE LOAN
COMMERCIAL INVESTMENT. COMMERCIAL REAL
ESTATE; A BETTER WAY TO INVEST AND GET
RICHER! MULTI-WAYS TO WIN BIG IN REAL
ESTATE. WHAT IS COMMERCIAL REAL ESTATE?
PENSION PLANS: THE ULTIMATE RETIREMENT
GUIDE; HOW TO RETIRE EARLY AND RETIRE
REACH. WHAT ARE 401K, ROTH 401K, INDIVIDUAL
401K, 403B, 457 PLAN, THRIFT SAVINGS PLAN.
IDENTITY THEFT: WATCH OUT, STOP IT FROM
HAPPENING, GET THE TOOLS YOU NEED TO
PREVENT IT RIGHT HERE! AT KNOWLEDGE
FINANCIAL.COM
INSURANCE 101: THE IMPORTANCE OF
INSURANCE IN SOMEONE'S LIFE.
EVERYTHING YOU NEED TO KNOW ABOUT
INSURANCE; NOW IS YOUR CHANCE TO KNOW
HOW TO SAVE MONEY ON YOUR INSURANCE!
LEARN ABOUT THE 15 INSURANCE POLICIES YOU
DON'T NEED!
The world's richest man,
Warren Buffett, says it best. "I
will tell you how to become
rich. Close the doors.
Be fearful when others are
greedy.
Be greedy when others are
fearful."
In today's real estate market,
naive investors are fearful.
Choose to be greedy.
Choose to be rich.
While others run from the
chaos, savvy investors are
doing what they do best.
They're "bargain hunting".
They realize that there's a
record number of troubled
homeowners who need to
sell fast to avoid foreclosure.
And they know that these
homeowners are often willing
to sell at big discounts.
Warren Buffett, says it best. "I
will tell you how to become
rich. Close the doors.
Be fearful when others are
greedy.
Be greedy when others are
fearful."
In today's real estate market,
naive investors are fearful.
Choose to be greedy.
Choose to be rich.
While others run from the
chaos, savvy investors are
doing what they do best.
They're "bargain hunting".
They realize that there's a
record number of troubled
homeowners who need to
sell fast to avoid foreclosure.
And they know that these
homeowners are often willing
to sell at big discounts.
...REAL ESTATE MARKET: TODAY'S GREAT DEALS FOR
FIRST-TIME HOME-BUYERS & FOR EVERYONE AS NEVER
SEEN BEFORE! WONDERFUL OPPORTUNITY TO CREATE
TREMENDOUS AMOUNT OF WEALTH...
..RICH GUIDE, WHY AREN'T RICH?
BUILDING FINANCIAL WEALTH, OBTAIN FINANCIAL
FREEDOM, BECOME A RICH PERSON; YES YOU CAN...
..RULE OF 72: The compound interest and financial
success. Rule Of 72 is the most important and simple
rule of financial success.
..MILLIONAIRE: How To Make Your First $1 Million? The
Millionaire's Mindset
..FORTUNE: BEFORE INVESTING IN THE STOCK MARKET
LEARN THIS FIRST!...
..GOVERNMENT: Government's general information;
Local, State, and Federal.
Housing Finance Authority of Miami dade, Monroe,
Broward, and Palm Beach County
..EMPIRE: THE ABC's OF INVESTMENTS, Ways to Save.
THE TRIANGLE OF SUCCESS...
..INVESTORS: CREATIVE FINANCING:
TOP 10 CREATIVE FINANCING TECHNIQUES AND
STRATEGIES TO FIND MONEY TO INVEST!
The Five C’s of Credit: LEARN MORE..
CREATIVE FINANCE CAN AND WILL MAKE ALL THE
DIFFERENCE WHEN AN INVESTOR DECIDES TO INVEST
IN REAL ESTATE...
..HOME INSPECTION: HOW TO GET THE BEST OUT OF IT..
Top 10 home-buying mistakes to avoid!
HOW TO USE HOME INSPECTION REPORTS TO
NEGOTIATE SALE PRICE?...
...ACCOUNTING: The Basics of Accounting...
...TAXES: THE FUNDAMENTAL OF TAXES. THE MORE YOU
KNOW, THE LESS YOU PAY...
...ANALYTICS: Top 9 Real Estate Financial Calculator
Problems every investors should know about...
...REAL ESTATE MARKET: TODAY'S GREAT DEALS FOR
FIRST-TIME HOME-BUYERS & FOR EVERYONE AS NEVER
SEEN BEFORE! WONDERFUL OPPORTUNITY TO CREATE
TREMENDOUS AMOUNT OF WEALTH...
..FINANCIAL SYSTEM: THE UNITED STATES FINANCIAL
SYSTEM AND THE ENTIRE WORLD. LEARN MORE...
..MONEY MANAGEMENT: Ten Resolutions to Make Your
Financial Life, Three Ways to Put Your Budget On on Auto
Pilot Easier, 10 Ways to Avoid Overdraft and Bounced
Check Fees...
..
..SAVING MONEY: THE SECRETS TO SAVE MONEY, 66
WAYS TO SAVE MONEY, WAYS TO SAVE MONEY ON
GAS...
..FINANCE: THE BANKING AND THE AMERICAN FINANCIAL
SYSTEM HISTORY, SUCCESS AND FAILURE...
.. BANKING SYSTEM, BANKING HISTORY: FINANCIAL
KNOWLEDGE, GREAT THINGS TO KNOW ABOUT THE
AMERICAN BANKING HISTORY
...
FIRST-TIME HOME-BUYERS & FOR EVERYONE AS NEVER
SEEN BEFORE! WONDERFUL OPPORTUNITY TO CREATE
TREMENDOUS AMOUNT OF WEALTH...
..RICH GUIDE, WHY AREN'T RICH?
BUILDING FINANCIAL WEALTH, OBTAIN FINANCIAL
FREEDOM, BECOME A RICH PERSON; YES YOU CAN...
..RULE OF 72: The compound interest and financial
success. Rule Of 72 is the most important and simple
rule of financial success.
..MILLIONAIRE: How To Make Your First $1 Million? The
Millionaire's Mindset
..FORTUNE: BEFORE INVESTING IN THE STOCK MARKET
LEARN THIS FIRST!...
..GOVERNMENT: Government's general information;
Local, State, and Federal.
Housing Finance Authority of Miami dade, Monroe,
Broward, and Palm Beach County
..EMPIRE: THE ABC's OF INVESTMENTS, Ways to Save.
THE TRIANGLE OF SUCCESS...
..INVESTORS: CREATIVE FINANCING:
TOP 10 CREATIVE FINANCING TECHNIQUES AND
STRATEGIES TO FIND MONEY TO INVEST!
The Five C’s of Credit: LEARN MORE..
CREATIVE FINANCE CAN AND WILL MAKE ALL THE
DIFFERENCE WHEN AN INVESTOR DECIDES TO INVEST
IN REAL ESTATE...
..HOME INSPECTION: HOW TO GET THE BEST OUT OF IT..
Top 10 home-buying mistakes to avoid!
HOW TO USE HOME INSPECTION REPORTS TO
NEGOTIATE SALE PRICE?...
...ACCOUNTING: The Basics of Accounting...
...TAXES: THE FUNDAMENTAL OF TAXES. THE MORE YOU
KNOW, THE LESS YOU PAY...
...ANALYTICS: Top 9 Real Estate Financial Calculator
Problems every investors should know about...
...REAL ESTATE MARKET: TODAY'S GREAT DEALS FOR
FIRST-TIME HOME-BUYERS & FOR EVERYONE AS NEVER
SEEN BEFORE! WONDERFUL OPPORTUNITY TO CREATE
TREMENDOUS AMOUNT OF WEALTH...
..FINANCIAL SYSTEM: THE UNITED STATES FINANCIAL
SYSTEM AND THE ENTIRE WORLD. LEARN MORE...
..MONEY MANAGEMENT: Ten Resolutions to Make Your
Financial Life, Three Ways to Put Your Budget On on Auto
Pilot Easier, 10 Ways to Avoid Overdraft and Bounced
Check Fees...
..
..SAVING MONEY: THE SECRETS TO SAVE MONEY, 66
WAYS TO SAVE MONEY, WAYS TO SAVE MONEY ON
GAS...
..FINANCE: THE BANKING AND THE AMERICAN FINANCIAL
SYSTEM HISTORY, SUCCESS AND FAILURE...
.. BANKING SYSTEM, BANKING HISTORY: FINANCIAL
KNOWLEDGE, GREAT THINGS TO KNOW ABOUT THE
AMERICAN BANKING HISTORY
...
TOUGH TIMES AHEAD! ---- KNOWLEDGEFINANCIAL.COM
First and foremost, it’s about your passion and commitment to your dream. Ask yourself,
would you be doing what you are doing if times were great and there was a myriad of
opportunities at your fingertips? If the answer is yes, then you can truly say that you should
continue on the path you’re on. You truly believe in your dream, and that is often more than
90% of the battle. Remember: No one said it would be easy or hard. It’s about your intention.
--------------------------------------------------
Difficult times: ----- KNOWLEDGEFINANCIAL.COM
Difficult times simply mean you have to be even more thoughtful as to how to go to market.
In, “Growing a Business,” the success or failure of one’s business is not a function of
having a lot of money to invest in its development.
In fact he states that having too much money at your disposal often discourages you from
using your imagination.
Yes, it’s more than money that makes a business a success or not. When thinking about the
viability of your business, you need to get to whether or not you can fill a void in the
marketplace for your potential buyer.
-----------------------------------------------------------------------
Transformation: ----- KNOWLEDGEFINANCIAL.COM
Transforming your dream into reality is the role of marketing. This is where the “rubber meets
the road.” Think about why marketing is so important. It’s about your ability to apply an
understanding of current market conditions and how the consumer may react to them. While
some may say that marketing is a science, I would say that it is an art. And those who are
most successful at it recognize that they need to create a curious mixture of instinct and
knowledge of consumer behavior in order to succeed.
-------------------------------------------------------------
Don’t be Afraid of Change
Irrespective of what you may feel politically, the election of Barack Obama does signal that
we need to make changes in order to turn things around. And like generations before us, for
the adept marketer there are numerous opportunities. There will be so many different needs
that a consumer will have, and that’s what makes capitalism so enduring. So don’t despair,
look at the New Year as an opportunity to re-dedicate yourself to your business and, by doing
so, make your dreams come true.
KNOWLEDGEFINANCIAL.COM
First and foremost, it’s about your passion and commitment to your dream. Ask yourself,
would you be doing what you are doing if times were great and there was a myriad of
opportunities at your fingertips? If the answer is yes, then you can truly say that you should
continue on the path you’re on. You truly believe in your dream, and that is often more than
90% of the battle. Remember: No one said it would be easy or hard. It’s about your intention.
--------------------------------------------------
Difficult times: ----- KNOWLEDGEFINANCIAL.COM
Difficult times simply mean you have to be even more thoughtful as to how to go to market.
In, “Growing a Business,” the success or failure of one’s business is not a function of
having a lot of money to invest in its development.
In fact he states that having too much money at your disposal often discourages you from
using your imagination.
Yes, it’s more than money that makes a business a success or not. When thinking about the
viability of your business, you need to get to whether or not you can fill a void in the
marketplace for your potential buyer.
-----------------------------------------------------------------------
Transformation: ----- KNOWLEDGEFINANCIAL.COM
Transforming your dream into reality is the role of marketing. This is where the “rubber meets
the road.” Think about why marketing is so important. It’s about your ability to apply an
understanding of current market conditions and how the consumer may react to them. While
some may say that marketing is a science, I would say that it is an art. And those who are
most successful at it recognize that they need to create a curious mixture of instinct and
knowledge of consumer behavior in order to succeed.
-------------------------------------------------------------
Don’t be Afraid of Change
Irrespective of what you may feel politically, the election of Barack Obama does signal that
we need to make changes in order to turn things around. And like generations before us, for
the adept marketer there are numerous opportunities. There will be so many different needs
that a consumer will have, and that’s what makes capitalism so enduring. So don’t despair,
look at the New Year as an opportunity to re-dedicate yourself to your business and, by doing
so, make your dreams come true.
KNOWLEDGEFINANCIAL.COM
The 7 New Rules of Financial Security
In a world turned upside down, you must re-examine some basic
assumptions. A good place to start: understanding the true nature of
risk.
Rule No. 1: Risk
Old thinking: If you can stomach the ups and downs that come with
risk, you'll be rewarded.
New rule: Risk isn't about your stomach. It's about making or missing
an important goal.
You know you have to consider risk. But what is risk? Many of us have
learned to think of risk as synonymous with volatility. For years, what
came down reliably bounced back even higher. You could easily
conclude that risk tolerance was just a matter of taste. As long as you
had the fortitude to see the occasional loss on your 401(k) statement
and not panic, you would capture superior returns over time.
What to do: You shouldn't run from risky investments just because they
lost money - that train has left the station. But the old buy-on-the-dips
advice isn't quite right either. This bear market's lesson is that how
much risk you can take is a matter of how much you can lose and still
meet your basic goals. That may mean scaling back on stocks, even if
you miss some of the next market rebound.
Rule No. 2: Cash
Old thinking: Keep enough money in ultrasafe accounts to cover life's
emergencies, but no more.
New rule: Relying more on cash can rescue you in an "asset
emergency."
For most of your career you'll want to set aside about six months' worth
of living expenses in the bank. That money covers the mortgage and
puts food on the table should you lose your job. The fact that you'll earn
only about 2% is beside the point. You can't take the risk.
The simultaneous crash in stocks and houses has taught us that we
need to redefine "emergency."Rande Spiegelman, vice president of
financial planning for the Schwab Center for Financial Research,
recommends looking at the next one to three years and adding up any
big-ticket stuff you see coming: tuition, a wedding, a down payment on
a house. Once you have your total, aim to hold that much in a cash
account or a low-risk investment such as a high-quality short-term
bond fund.
What to do: It's not easy to build cash savings and a retirement fund at
the same time. If you have to make choices, build up that emergency
fund first because you can't expect to lean on your home equity or
stocks if you lose your job. And see if you have some flexibility on the
big-ticket obligations. Maybe you plan for a state school rather than a
private college, or downsize the wedding. If all your assets are in a
401(k), move some of that balance to low-risk investment options as
you build your cash funds. That will preserve more to tap via a 401(k)
loan in a pinch. Not a terrific option, but it can beat the alternatives.
In the years just before and after retirement, cash becomes even more
important. You don't want to sell stocks during a bear market to buy
groceries. Aim for two to four years' worth of living expenses in
low-risk assets as you near retirement.
Rule No. 3: Human capital
Old thinking: The longer your time horizon, the more stocks you should
own.
New rule: Time isn't everything. You must also consider your earnings
potential.
It's one of the basic rules of thumb: The more years you have to recoup
losses, the more aggressive you can be. Unfortunately, the math isn't
so clear-cut.
Here's a better way to think about how aggressive your portfolio should
be: Imagine that it includes not only stocks and bonds but also your
human capital, meaning your ability to earn income by working. The
safer it is, the more chances you can afford to take with your other
assets - that is, your portfolio.
This doesn't mean that time no longer matters. As you age, the value of
your human capital declines, and you'll need to secure more of your
savings. So the conventional advice to hold a lot in stocks when you
are young and gradually trim back can still make sense.
But not for everyone. The nature of your career may make your human
capital more bond-like or more stock-like, says finance professor
Moshe Milevsky of York University in Toronto. Tenured professors like
Milevsky have human capital that resembles a triple-A-rated bond,
especially when they have a solid pension plan. Those lucky souls can
dive aggressively into stocks and even stay there as they approach
retirement, he says. The human capital of a commission-based
mortgage broker, on the other hand, is pretty clearly a stock - and it's
not a blue chip. That person should own a fair amount of bonds, even
when young.
What to do: Assess your human capital. A typical worker's income is
about 70% like a bond and 30% like a stock, says Thomas Idzorek,
chief investment officer for Ibbotson Associates. Use that as your
baseline and then think about how long you'll be working, the stability
of your current job, and your ability to change careers if you have to.
You've probably realized in the past few months that your human
capital is not as secure as you once thought. If you've been an
aggressive investor, that alone may be a reason to shift more of your
assets to safer ground.
Rule No. 4: Borrowing
Old thinking: Borrowing sensibly is a good way to build wealth.
New rule: Borrow cautiously. You have to worry about the other guy's
debt too.
The quarter-century leading up to 2007 wasn't simply a golden age for
stocks. It was also a bull market for leverage. (That's Wall Streetspeak
for debt.) Since 1982, mortgage rates have fallen from 16% to below
6%. The levy on college loans dropped to around 3%. Americans
responded to easy credit in a predictable way. The personal savings
rate fell from over 12% to zilch, and household debt payments as a
percentage of disposable income rose by a third as families "put it on
the card" and paid for lavish kitchen upgrades with home-equity loans.
Looking back, America's borrowing binge was nuts. Families were
leaning on housing wealth, and that wealth was shaky.
The obvious moral here is to be conservative. There are always good
reasons to borrow, even today. You need a mortgage to buy a house,
and a college education provides enough of a lifetime payoff to justify a
loan. But you ought to stretch less.
There's a subtler lesson too. David Ellison, president of the FBR Funds,
says that you have more exposure to leverage than you think,
especially now that everyone is trying to unload debt. Perhaps your
employer borrowed a lot over the past decade and now needs to
conserve cash, so it's laying off staff. Suddenly that HELOC you could
easily handle on your salary doesn't look like such a super idea. You
can't lean on your investments for help, because many of the
companies you owned used leverage to pump up profits, and now they
can't borrow, so their earnings and stock prices are falling. And it's
harder to shore up your own balance sheet by selling your house when
banks are reining in lending and potential buyers are scared to borrow
for an asset that may decline further.
What to do: Be conservative about debt? Make that very conservative.
Especially when your neighbors aren't. Get a mortgage you can afford
for the life of the loan, and put at least 20% down.
Rule No. 5: Housing
Old thinking: You can expect your house to appreciate handsomely
over the long run.
New rule: Your home won't make you rich. But it is an important
savings tool.
If you live on one of the coasts, you probably guessed sometime around
2005 that home prices couldn't keep rising the way they were. But the
severity of the crash was still a shock: You heard a lot about how the
market would have to "cool off" or "get back to normal" - the
implication being that slow but steady appreciation was the future.
But the long-run data always told a different story. Yale University
economist Robert Shiller looked closely in 2005 at the history of home
prices since 1890, using a database he constructed. What he found
was surprising. Except for two spectacular booms - the first after World
War II and the second starting in 1998 - real estate appreciation has
been unimpressive after figuring in inflation. As Shiller wrote in
"Irrational Exuberance," technology has allowed builders to nail up
more houses faster, ensuring that supply never gets too far behind
demand (and often gets ahead of it).
Even when prices are rising, gains on real estate aren't as dazzling as
they look, once you account for expenses. Maintenance costs typically
run at about 1% of a home's value annually, in addition to insurance
and taxes. If you remodel, the most you can expect to recoup is about
80%. You have to pay steep fees when you buy (up to 3% in closing
costs) and sell (up to 6% for realtor fees).
What to do: This doesn't mean you have to rent, just that you should
have modest expectations for your house as a wealth builder. There
are still financial pluses. First, owning a house gives you a hedge
against rising values in your own community so that you don't risk
being priced out as rents go up. (Ask a New Yorker about that.) Second,
a traditional 30-year mortgage acts as what economists call a
"commitment device," or a tool that forces you to save. Instead of
writing a check to a landlord, you gradually pay off principal. At the end,
you own a house. Aside from your 401(k), no other asset enforces such
discipline.
Rule No. 6: Diversification
Old thinking: A diversified portfolio lowers your risk.
New rule: Diversification won't always save you - and you need more of
it than you think.
Diversification hasn't stopped you from getting hurt in this downturn.
Both U.S. and foreign stocks are deep in the red. Holding bonds did
cushion your losses, but most kinds of bonds still declined. What
happened?
Jeremy Grantham, chief investment strategist at GMO, observed back
in 2007 that we had a bubble not just in one or two kinds of assets, but
in risk. Investors around the world were so confident, and so hungry
for even a little extra return, that they were throwing money at anything
that might deliver. Now that the risk bubble has burst, all those
investors want now is the safety of U.S. Treasuries. So everything has
moved roughly in sync, both up and down, for a few years.
Bear in mind, though, that these times are, to say the least, unusual.
Over a longer period - as little as a decade - diversification still looks
effective. While large U.S. stocks are down the past 10 years, U.S.
corporate bonds earned 4.6% a year for the same period.
But in a global economy where money moves quickly, you have to
work harder at diversification than before.
What to do: To ensure you are diversified, you don't have to go out and
buy 16 new mutual funds. First, look under the hood of the funds you
have to see if you already own some of those assets. An easy way to
do so is to plug your holdings into Morningstar.com's Instant X-Ray tool.
And buy funds that kill two birds with one stone. The T. Rowe Price
International Bond fund, for example, invests up to 20% of its assets in
emerging markets and the rest in developed countries. Put that
together with a high-yield fund and a broad U.S. bond fund, and you'll
own most of the bond universe.
Rule No. 7: Retirement
Old thinking: Retiring early is a prize.
New rule: Retiring early is a problem.
Ever since Uncle Sam set 65 as the age you could retire and collect full
Social Security benefits (it's 66 or 67 for boomers today), workers have
been trying to beat that bogey by quitting early. And that seemed well
within reach earlier in this decade after a bull market that gave
workers confidence that their money could work for them rather than
the other way around.
But the reality of early retirement, even before the stock market's
sickening plunge, was never quite that rosy. More than half of early
retirees leave work before they intended, and of those, nine in 10
depart because they get sick or are downsized.
And now the financial prospects for those who had a shot at a secure
early retirement have dimmed: Long-tenured workers nearing
retirement have seen their 401(k) accounts shrink an average of 30%
over the past 14 months, according to EBRI. There's no way around it:
The numbers require you to rethink your plans.
What to do: "By delaying retirement just one year you could increase
your annual retirement income by 9%," says Richard Johnson, senior
fellow at the Urban Institute. If you can hang on to your current
high-paying post, great. The reality, of course, is that in an era of harsh
cost cutting, well-paid older workers are more vulnerable. And you
might not want to stick it out any longer anyway if the severance is
decent. But there's much to be gained from finding another job, even if
it's a lower-paid or part-time position. If you can earn enough to avoid
collecting Social Security benefits early or dipping into your retirement
accounts, research by T. Rowe Price shows, you'll barely feel a hit to
your income when you do retire. If your new job comes with health
benefits, so much the better. The average health-care tab for an early
retiree before he is eligible for Medicare runs to $8,500 a year, says an
AARP study.
Despite all those benefits, if you are still many years away from the
retire-or-work decision, you should think of working longer as Plan B.
As we noted, you won't have complete control over your ability to work
- your health or the job market could make it difficult. That means you
can't afford to assume that you'll just work a few more years if things
go wrong. You will still have to stick to rules 1 through 6.
In a world turned upside down, you must re-examine some basic
assumptions. A good place to start: understanding the true nature of
risk.
Rule No. 1: Risk
Old thinking: If you can stomach the ups and downs that come with
risk, you'll be rewarded.
New rule: Risk isn't about your stomach. It's about making or missing
an important goal.
You know you have to consider risk. But what is risk? Many of us have
learned to think of risk as synonymous with volatility. For years, what
came down reliably bounced back even higher. You could easily
conclude that risk tolerance was just a matter of taste. As long as you
had the fortitude to see the occasional loss on your 401(k) statement
and not panic, you would capture superior returns over time.
What to do: You shouldn't run from risky investments just because they
lost money - that train has left the station. But the old buy-on-the-dips
advice isn't quite right either. This bear market's lesson is that how
much risk you can take is a matter of how much you can lose and still
meet your basic goals. That may mean scaling back on stocks, even if
you miss some of the next market rebound.
Rule No. 2: Cash
Old thinking: Keep enough money in ultrasafe accounts to cover life's
emergencies, but no more.
New rule: Relying more on cash can rescue you in an "asset
emergency."
For most of your career you'll want to set aside about six months' worth
of living expenses in the bank. That money covers the mortgage and
puts food on the table should you lose your job. The fact that you'll earn
only about 2% is beside the point. You can't take the risk.
The simultaneous crash in stocks and houses has taught us that we
need to redefine "emergency."Rande Spiegelman, vice president of
financial planning for the Schwab Center for Financial Research,
recommends looking at the next one to three years and adding up any
big-ticket stuff you see coming: tuition, a wedding, a down payment on
a house. Once you have your total, aim to hold that much in a cash
account or a low-risk investment such as a high-quality short-term
bond fund.
What to do: It's not easy to build cash savings and a retirement fund at
the same time. If you have to make choices, build up that emergency
fund first because you can't expect to lean on your home equity or
stocks if you lose your job. And see if you have some flexibility on the
big-ticket obligations. Maybe you plan for a state school rather than a
private college, or downsize the wedding. If all your assets are in a
401(k), move some of that balance to low-risk investment options as
you build your cash funds. That will preserve more to tap via a 401(k)
loan in a pinch. Not a terrific option, but it can beat the alternatives.
In the years just before and after retirement, cash becomes even more
important. You don't want to sell stocks during a bear market to buy
groceries. Aim for two to four years' worth of living expenses in
low-risk assets as you near retirement.
Rule No. 3: Human capital
Old thinking: The longer your time horizon, the more stocks you should
own.
New rule: Time isn't everything. You must also consider your earnings
potential.
It's one of the basic rules of thumb: The more years you have to recoup
losses, the more aggressive you can be. Unfortunately, the math isn't
so clear-cut.
Here's a better way to think about how aggressive your portfolio should
be: Imagine that it includes not only stocks and bonds but also your
human capital, meaning your ability to earn income by working. The
safer it is, the more chances you can afford to take with your other
assets - that is, your portfolio.
This doesn't mean that time no longer matters. As you age, the value of
your human capital declines, and you'll need to secure more of your
savings. So the conventional advice to hold a lot in stocks when you
are young and gradually trim back can still make sense.
But not for everyone. The nature of your career may make your human
capital more bond-like or more stock-like, says finance professor
Moshe Milevsky of York University in Toronto. Tenured professors like
Milevsky have human capital that resembles a triple-A-rated bond,
especially when they have a solid pension plan. Those lucky souls can
dive aggressively into stocks and even stay there as they approach
retirement, he says. The human capital of a commission-based
mortgage broker, on the other hand, is pretty clearly a stock - and it's
not a blue chip. That person should own a fair amount of bonds, even
when young.
What to do: Assess your human capital. A typical worker's income is
about 70% like a bond and 30% like a stock, says Thomas Idzorek,
chief investment officer for Ibbotson Associates. Use that as your
baseline and then think about how long you'll be working, the stability
of your current job, and your ability to change careers if you have to.
You've probably realized in the past few months that your human
capital is not as secure as you once thought. If you've been an
aggressive investor, that alone may be a reason to shift more of your
assets to safer ground.
Rule No. 4: Borrowing
Old thinking: Borrowing sensibly is a good way to build wealth.
New rule: Borrow cautiously. You have to worry about the other guy's
debt too.
The quarter-century leading up to 2007 wasn't simply a golden age for
stocks. It was also a bull market for leverage. (That's Wall Streetspeak
for debt.) Since 1982, mortgage rates have fallen from 16% to below
6%. The levy on college loans dropped to around 3%. Americans
responded to easy credit in a predictable way. The personal savings
rate fell from over 12% to zilch, and household debt payments as a
percentage of disposable income rose by a third as families "put it on
the card" and paid for lavish kitchen upgrades with home-equity loans.
Looking back, America's borrowing binge was nuts. Families were
leaning on housing wealth, and that wealth was shaky.
The obvious moral here is to be conservative. There are always good
reasons to borrow, even today. You need a mortgage to buy a house,
and a college education provides enough of a lifetime payoff to justify a
loan. But you ought to stretch less.
There's a subtler lesson too. David Ellison, president of the FBR Funds,
says that you have more exposure to leverage than you think,
especially now that everyone is trying to unload debt. Perhaps your
employer borrowed a lot over the past decade and now needs to
conserve cash, so it's laying off staff. Suddenly that HELOC you could
easily handle on your salary doesn't look like such a super idea. You
can't lean on your investments for help, because many of the
companies you owned used leverage to pump up profits, and now they
can't borrow, so their earnings and stock prices are falling. And it's
harder to shore up your own balance sheet by selling your house when
banks are reining in lending and potential buyers are scared to borrow
for an asset that may decline further.
What to do: Be conservative about debt? Make that very conservative.
Especially when your neighbors aren't. Get a mortgage you can afford
for the life of the loan, and put at least 20% down.
Rule No. 5: Housing
Old thinking: You can expect your house to appreciate handsomely
over the long run.
New rule: Your home won't make you rich. But it is an important
savings tool.
If you live on one of the coasts, you probably guessed sometime around
2005 that home prices couldn't keep rising the way they were. But the
severity of the crash was still a shock: You heard a lot about how the
market would have to "cool off" or "get back to normal" - the
implication being that slow but steady appreciation was the future.
But the long-run data always told a different story. Yale University
economist Robert Shiller looked closely in 2005 at the history of home
prices since 1890, using a database he constructed. What he found
was surprising. Except for two spectacular booms - the first after World
War II and the second starting in 1998 - real estate appreciation has
been unimpressive after figuring in inflation. As Shiller wrote in
"Irrational Exuberance," technology has allowed builders to nail up
more houses faster, ensuring that supply never gets too far behind
demand (and often gets ahead of it).
Even when prices are rising, gains on real estate aren't as dazzling as
they look, once you account for expenses. Maintenance costs typically
run at about 1% of a home's value annually, in addition to insurance
and taxes. If you remodel, the most you can expect to recoup is about
80%. You have to pay steep fees when you buy (up to 3% in closing
costs) and sell (up to 6% for realtor fees).
What to do: This doesn't mean you have to rent, just that you should
have modest expectations for your house as a wealth builder. There
are still financial pluses. First, owning a house gives you a hedge
against rising values in your own community so that you don't risk
being priced out as rents go up. (Ask a New Yorker about that.) Second,
a traditional 30-year mortgage acts as what economists call a
"commitment device," or a tool that forces you to save. Instead of
writing a check to a landlord, you gradually pay off principal. At the end,
you own a house. Aside from your 401(k), no other asset enforces such
discipline.
Rule No. 6: Diversification
Old thinking: A diversified portfolio lowers your risk.
New rule: Diversification won't always save you - and you need more of
it than you think.
Diversification hasn't stopped you from getting hurt in this downturn.
Both U.S. and foreign stocks are deep in the red. Holding bonds did
cushion your losses, but most kinds of bonds still declined. What
happened?
Jeremy Grantham, chief investment strategist at GMO, observed back
in 2007 that we had a bubble not just in one or two kinds of assets, but
in risk. Investors around the world were so confident, and so hungry
for even a little extra return, that they were throwing money at anything
that might deliver. Now that the risk bubble has burst, all those
investors want now is the safety of U.S. Treasuries. So everything has
moved roughly in sync, both up and down, for a few years.
Bear in mind, though, that these times are, to say the least, unusual.
Over a longer period - as little as a decade - diversification still looks
effective. While large U.S. stocks are down the past 10 years, U.S.
corporate bonds earned 4.6% a year for the same period.
But in a global economy where money moves quickly, you have to
work harder at diversification than before.
What to do: To ensure you are diversified, you don't have to go out and
buy 16 new mutual funds. First, look under the hood of the funds you
have to see if you already own some of those assets. An easy way to
do so is to plug your holdings into Morningstar.com's Instant X-Ray tool.
And buy funds that kill two birds with one stone. The T. Rowe Price
International Bond fund, for example, invests up to 20% of its assets in
emerging markets and the rest in developed countries. Put that
together with a high-yield fund and a broad U.S. bond fund, and you'll
own most of the bond universe.
Rule No. 7: Retirement
Old thinking: Retiring early is a prize.
New rule: Retiring early is a problem.
Ever since Uncle Sam set 65 as the age you could retire and collect full
Social Security benefits (it's 66 or 67 for boomers today), workers have
been trying to beat that bogey by quitting early. And that seemed well
within reach earlier in this decade after a bull market that gave
workers confidence that their money could work for them rather than
the other way around.
But the reality of early retirement, even before the stock market's
sickening plunge, was never quite that rosy. More than half of early
retirees leave work before they intended, and of those, nine in 10
depart because they get sick or are downsized.
And now the financial prospects for those who had a shot at a secure
early retirement have dimmed: Long-tenured workers nearing
retirement have seen their 401(k) accounts shrink an average of 30%
over the past 14 months, according to EBRI. There's no way around it:
The numbers require you to rethink your plans.
What to do: "By delaying retirement just one year you could increase
your annual retirement income by 9%," says Richard Johnson, senior
fellow at the Urban Institute. If you can hang on to your current
high-paying post, great. The reality, of course, is that in an era of harsh
cost cutting, well-paid older workers are more vulnerable. And you
might not want to stick it out any longer anyway if the severance is
decent. But there's much to be gained from finding another job, even if
it's a lower-paid or part-time position. If you can earn enough to avoid
collecting Social Security benefits early or dipping into your retirement
accounts, research by T. Rowe Price shows, you'll barely feel a hit to
your income when you do retire. If your new job comes with health
benefits, so much the better. The average health-care tab for an early
retiree before he is eligible for Medicare runs to $8,500 a year, says an
AARP study.
Despite all those benefits, if you are still many years away from the
retire-or-work decision, you should think of working longer as Plan B.
As we noted, you won't have complete control over your ability to work
- your health or the job market could make it difficult. That means you
can't afford to assume that you'll just work a few more years if things
go wrong. You will still have to stick to rules 1 through 6.
AUCTION: How to Buy Real Estate Properties at
Auction ???
Finding and filing properties
Develop a system to keep track of properties that interest you. A good
tracking system is important since most successful auction buyers
pursue several properties sometimes over a period of several months.
---KNOWLEDGEFINANCIAL.COM
After you find a property online, it's a good idea to drive by the property to
get a better idea of the property's condition and the type of neighborhood.
For some buyers and investors, driving by the property has also facilitated
a casual meeting with the owner (you may be able to still work out a
last-minute deal before the auction) or yielded a wealth of unexpected
information from a talkative neighbor.
Confirming the auction status, location and bidding
procedure
After a property is scheduled for auction, the owner has a chance
(typically less than a month) to stop the auction by paying the amount
owed to the foreclosing lender. It's also not uncommon for auctions to be
postponed without a new date being published. Although cancellations
and postponements are announced at the time and location of the
originally scheduled auction, you can call the trustee to find out
beforehand.
Most auctions are at a public place in the same county where the property
is located. In many states, all the auctions in each county are at the same
location. The auction location is usually listed online (e.g. RealtyTrac) or
you can typically get the location from the trustee or the county clerk. If
you call the county clerk, make sure you clarify that you are looking for the
location of mortgage foreclosure auctions, not tax foreclosure auctions.
The bidding procedure varies from state to state, so you should become
familiar with the procedure in your area before bidding at an auction. In
some states, bidders are required to bring the full amount they want to bid
in the form of cash or cashier's check to the auction.
In other states, bidders are required to bring a certain percentage (10
percent is common) of the bid amount to the auction and pay the
remainder of the amount within a certain timeframe.
If you get a friendly representative when you call the trustee, you might be
able to get information about how the bidding works in your area, but in
most cases you'll need to educate yourself. You could also contact a local
real estate agent or attorney in your area. Of course, the best education
will come from simply observing a local auction.
Researching the potential bargain.
---KNOWLEDGEFINANCIAL.COM
You need to find out as much as you can about the estimated market
value of the property, how much is owed on the property and if the owner
has any other liens against the property.
If there are outstanding liens on the property, the winning bidder at the
auction may be responsible to satisfy these liens in some cases, so it's
important to check for any liens and the priority of the liens before you bid
at the auction. A real estate attorney or title company can check for liens,
or you can check directly with county records.
The priority of a lien is usually determined by the date it was placed on the
property. So a first mortgage will usually have the first priority, and all
other liens will be considered junior liens. In most states, the public
auction clears out any junior liens, but there are exceptions such as tax
liens, which typically will continue to be in effect after the auction.
The opening bid at the auction is based on the total amount owed to the
foreclosing lender and may include fees incurred because of the
foreclosure proceedings. If no one bids above that amount, the
foreclosing lender will take possession of the property.
It's important to know this amount so you can determine if the auction
represents a potential bargain purchase when the opening bid is
compared to the property's market value.
Determining your bid
Based on all the factors used to determine the potential bargain - and your
financial capability - you'll need to determine how much you can and
should bid at the auction.
Determining your bid amount is more important in states where bidders
are required to bring the full amount in cash or cashier's check to the
auction. You won't even be qualified to bid if you don't meet that
requirement.
If you don't have that type of cash lying around, you have a couple options.
If you own a home, you might be able to take out a home equity line of
credit, which is a cash loan. If you can't secure a cash loan, you may
consider buying a pre-foreclosure or bank-owned property, which usually
require only a regular mortgage loan secured by the property being
purchased. ---KNOWLEDGEFINANCIAL.COM
It's also important to determine the bid amount even in states where you
don't need to bring the full amount to the auction. By setting a firm ceiling
for your bid, you'll avoid getting caught up in the heady auction
atmosphere and overbidding, which can result in little or no bargain for
you. Also, if you're not able to pay the remainder of the bid within the time
frame stipulated by state law, the deposit you paid at the auction is often
nonrefundable.
A reasonable purchase amount at auction is at least 20 percent below full
market value, and much better deals are often possible. Other factors to
consider are the rate of real estate appreciation in the area and the
potential for increasing the property's value by making repairs and
improvements.
Bidding at the auction
Call the trustee the day before or the day of the auction to check one last
time if the auction has been canceled or postponed. If an auction is
postponed, the trustee should provide the new auction date.
---KNOWLEDGEFINANCIAL.COM
Arrive at the auction location early and locate the auctioneer as quickly as
possible. Bidding at an auction can be intimidating, especially if you've
never done it before. Take as many cues from the other participants as
you can, but don't let them dictate how much you bid. You may encounter
investors who attend many auctions every month and who don't
necessarily appreciate new competition.
Taking ownership
If you are the winning bidder, make sure you get the necessary
documents from the auctioneer to verify that you are the winning bidder.
Clarify with the auctioneer and a real estate attorney what further steps
need to be made before you take ownership and possession of the
property.
In some states, ownership can be transferred immediately or within a few
days. In other states, you may need to wait a month or more for the sale to
be confirmed by a court. Some states have redemption periods for the
owner, in which case the owner can buy the property back from you if
they pay the full amount paid at the auction, plus applicable fees. You
should avoid spending money on repairs or improvements during the
redemption period.
If the trustee does not evict the current owners, you may be responsible
to do this. If eviction is necessary, you can contact a local real estate
attorney or the county sheriff for the proper procedure. ---
knowledgefinancial.com
Auction ???
Finding and filing properties
Develop a system to keep track of properties that interest you. A good
tracking system is important since most successful auction buyers
pursue several properties sometimes over a period of several months.
---KNOWLEDGEFINANCIAL.COM
After you find a property online, it's a good idea to drive by the property to
get a better idea of the property's condition and the type of neighborhood.
For some buyers and investors, driving by the property has also facilitated
a casual meeting with the owner (you may be able to still work out a
last-minute deal before the auction) or yielded a wealth of unexpected
information from a talkative neighbor.
Confirming the auction status, location and bidding
procedure
After a property is scheduled for auction, the owner has a chance
(typically less than a month) to stop the auction by paying the amount
owed to the foreclosing lender. It's also not uncommon for auctions to be
postponed without a new date being published. Although cancellations
and postponements are announced at the time and location of the
originally scheduled auction, you can call the trustee to find out
beforehand.
Most auctions are at a public place in the same county where the property
is located. In many states, all the auctions in each county are at the same
location. The auction location is usually listed online (e.g. RealtyTrac) or
you can typically get the location from the trustee or the county clerk. If
you call the county clerk, make sure you clarify that you are looking for the
location of mortgage foreclosure auctions, not tax foreclosure auctions.
The bidding procedure varies from state to state, so you should become
familiar with the procedure in your area before bidding at an auction. In
some states, bidders are required to bring the full amount they want to bid
in the form of cash or cashier's check to the auction.
In other states, bidders are required to bring a certain percentage (10
percent is common) of the bid amount to the auction and pay the
remainder of the amount within a certain timeframe.
If you get a friendly representative when you call the trustee, you might be
able to get information about how the bidding works in your area, but in
most cases you'll need to educate yourself. You could also contact a local
real estate agent or attorney in your area. Of course, the best education
will come from simply observing a local auction.
Researching the potential bargain.
---KNOWLEDGEFINANCIAL.COM
You need to find out as much as you can about the estimated market
value of the property, how much is owed on the property and if the owner
has any other liens against the property.
If there are outstanding liens on the property, the winning bidder at the
auction may be responsible to satisfy these liens in some cases, so it's
important to check for any liens and the priority of the liens before you bid
at the auction. A real estate attorney or title company can check for liens,
or you can check directly with county records.
The priority of a lien is usually determined by the date it was placed on the
property. So a first mortgage will usually have the first priority, and all
other liens will be considered junior liens. In most states, the public
auction clears out any junior liens, but there are exceptions such as tax
liens, which typically will continue to be in effect after the auction.
The opening bid at the auction is based on the total amount owed to the
foreclosing lender and may include fees incurred because of the
foreclosure proceedings. If no one bids above that amount, the
foreclosing lender will take possession of the property.
It's important to know this amount so you can determine if the auction
represents a potential bargain purchase when the opening bid is
compared to the property's market value.
Determining your bid
Based on all the factors used to determine the potential bargain - and your
financial capability - you'll need to determine how much you can and
should bid at the auction.
Determining your bid amount is more important in states where bidders
are required to bring the full amount in cash or cashier's check to the
auction. You won't even be qualified to bid if you don't meet that
requirement.
If you don't have that type of cash lying around, you have a couple options.
If you own a home, you might be able to take out a home equity line of
credit, which is a cash loan. If you can't secure a cash loan, you may
consider buying a pre-foreclosure or bank-owned property, which usually
require only a regular mortgage loan secured by the property being
purchased. ---KNOWLEDGEFINANCIAL.COM
It's also important to determine the bid amount even in states where you
don't need to bring the full amount to the auction. By setting a firm ceiling
for your bid, you'll avoid getting caught up in the heady auction
atmosphere and overbidding, which can result in little or no bargain for
you. Also, if you're not able to pay the remainder of the bid within the time
frame stipulated by state law, the deposit you paid at the auction is often
nonrefundable.
A reasonable purchase amount at auction is at least 20 percent below full
market value, and much better deals are often possible. Other factors to
consider are the rate of real estate appreciation in the area and the
potential for increasing the property's value by making repairs and
improvements.
Bidding at the auction
Call the trustee the day before or the day of the auction to check one last
time if the auction has been canceled or postponed. If an auction is
postponed, the trustee should provide the new auction date.
---KNOWLEDGEFINANCIAL.COM
Arrive at the auction location early and locate the auctioneer as quickly as
possible. Bidding at an auction can be intimidating, especially if you've
never done it before. Take as many cues from the other participants as
you can, but don't let them dictate how much you bid. You may encounter
investors who attend many auctions every month and who don't
necessarily appreciate new competition.
Taking ownership
If you are the winning bidder, make sure you get the necessary
documents from the auctioneer to verify that you are the winning bidder.
Clarify with the auctioneer and a real estate attorney what further steps
need to be made before you take ownership and possession of the
property.
In some states, ownership can be transferred immediately or within a few
days. In other states, you may need to wait a month or more for the sale to
be confirmed by a court. Some states have redemption periods for the
owner, in which case the owner can buy the property back from you if
they pay the full amount paid at the auction, plus applicable fees. You
should avoid spending money on repairs or improvements during the
redemption period.
If the trustee does not evict the current owners, you may be responsible
to do this. If eviction is necessary, you can contact a local real estate
attorney or the county sheriff for the proper procedure. ---
knowledgefinancial.com
How to Buy Pre-Foreclosure Properties??
Finding and filing properties
Develop a system to keep track of properties that interest you. A good
tracking system is important since most pre-foreclosure buyers pursue
many properties sometimes over a period of several months.
After you find a property online, it's a good idea to drive by the property to
get a better idea of the property's condition and the type of neighborhood.
For some buyers and investors, driving by the property facilitate a casual
meeting with the owner or yields a wealth of unexpected information from
a talkative neighbor.
Confirming pre-foreclosure status
When a property enters pre-foreclosure, the owner usually has at least 2-3
months to reinstate the property by paying off the amount in default. The
reinstatement stops the foreclosure process, so it's important to find out if
a property has been reinstated before proceeding. The best way to check if
the property has been reinstated is to call the trustee or attorney assigned
to the foreclosure. The trustee cannot typically answer questions about the
property; they can just let you know if the property is still in foreclosure or
not.
Researching the potential bargain
Find out as much as you can about the estimated market value of the
property, how much is owed on the property and if the owner has any
other liens against the property. This is all public information and you can
research on your own with the county recorder. This process should not
take more than a day or two, because you don't want to delay long before
contacting the owner in default.
Contacting the owner in default
You or your real estate agent should initiate contact with the owner to
express your interest in the property. Before you expend the time and effort
to contact the owner, make sure you're fully prepared to buy.
If the owner has decided to list the property for sale, you can simply
contact the listing agent. Once the property is listed with an agent there
may not be as much bargain potential, but you can still negotiate a good
deal because you know the owner has a limited amount of time to sell
before the bank repossess the property or sells the property at public
auction.
In most cases, the owner has not listed the property for sale, so you will
need to pro-actively contact them. In this case, contacting the owner can
be tough, but the potential bargain is greater because you'll be cutting out
the listing agent's commission.
Contact the owner by mail to start. The basic message to communicate to
the owner is that you're interested in buying the property and you want to
work out a purchase agreement that benefits both parties.
Don't be surprised if the owner does not respond to the mail immediately.
In most states, the owner has several months between the initial
foreclosure notice and the public auction. During this time the owner will
consider all the options available, including refinancing or selling. An
owner's first reaction is usually not to sell. But if no other options work
out, selling is a better option than losing the property at public auction.
Many successful pre-foreclosure buyers and investors send quite a few
postcards to properties in their area before they find an owner who is
interested. It's not uncommon to send out several postcards to the same
owner during the foreclosure process. The owner may be more interested
to sell as the auction date looms closer. If the owner doesn't respond to
postcards, some buyers and investors will try to reach the owner by
phone or in person. If you do this, be prepared for a possible rude
response as these methods of contact are more inherently confrontational.
And always keep in mind that the owner in default retains ownership
rights to the property during the pre-foreclosure period. If they are not
interested in talking with you, it's time to leave.
If the owner rejects all of your contact attempts, you may still have a
chance to purchase the property at public auction, which occurs if the
owner doesn't sell or pay off the amount owed during the pre-foreclosure
period. You could also call the trustee periodically to check if an auction
has been scheduled.
Negotiating a purchase agreement
Once you have made contact with the owner, you should meet with them
for further discussion about the property. As part of this meeting, or a later
one, you should arrange to walk through the property to make sure it
meets your criteria as a buyer.
Because owners in foreclosure may not have the money to make repairs
to their property, you might be willing to buy the property "as is." But you
still want to keep a tab of estimated repair costs and subtract them from
your purchase offer. Your willingness to put some "sweat equity" in the
property after you purchase it will increase the chances of realizing a
good bargain.
If you and the owner both agree to proceed, you need to negotiate the
terms of a purchase. These negotiations will involve you, the owner and
the foreclosing lender. A real estate agent can be a valuable resource
during the negotiating process.
If the loan in default is assumable, you may be able to pay off the amount
in default and take over payments under the current terms of that loan. If
not, you will need to pay off the full amount owed on the loan. If the
property has other liens placed on it, you'll need to make sure those are
cleared out as part of the purchase agreement. If the owner has equity in
the property above and beyond the liens, then you can offer to split the
equity with them, allowing them to walk away with cash and you to
acquire a property below market value.
Owners might be more willing to work with you if you are flexible to help
them out in creative ways that address their situation. You could offer to
let them stay in the house for a certain amount of time (possibly paying
rent) until they find a new place to stay. You could offer to pay their
housing costs for the first month or more after they leave the property. If
you're purchasing the property as an investment, you may let them stay
and pay rent until you decide to resell the house. There are myriad ways to
work out an agreement that benefits both parties. Remember, just selling
the property during pre-foreclosure allows owners to avoid a
foreclosure-marred credit history, making it easier for them to find a new
place to live.
While negotiating the purchase agreement with the owner, you should also
contact the foreclosing lender and any other lien holders. You want them
to know you plan to purchase the property and satisfy any liens against the
property. You also may be able to negotiate a lower payoff amount to
satisfy the debts owed. Since you're saving them the trouble of pursuing
and collecting the debt owed them, some foreclosing lenders and lien
holders will clear liens on a property for less than 100 percent of the
amount owed. This is another way to realize a bargain during
pre-foreclosure.
The goal for you as a buyer is to purchase a property at least 20 percent
below full market value, although better deals are often possible. When
determining the final purchase offer, you should also take into account the
rate of real estate appreciation in the area and the potential for increasing
the house's value by making repairs and improvements.
Closing the deal
Once you've arrived at an agreement with the owner in default, the
foreclosing lender and any other lien holders, you can put the agreement
in writing. If you're not familiar with how to draw up a purchase
agreement, you should have a local real estate agent or real estate
attorney help.
Any purchase agreement should make closing the deal contingent on a full
title search conducted by a title company or attorney. The purchase
agreement should also allow for a professional inspection of the property
before closing the deal.
An escrow company, who acts as a third party, can manage the transfer of
money and property ownership. Assuming that you have your financing
secured, this should be a fairly smooth process.
Finding and filing properties
Develop a system to keep track of properties that interest you. A good
tracking system is important since most pre-foreclosure buyers pursue
many properties sometimes over a period of several months.
After you find a property online, it's a good idea to drive by the property to
get a better idea of the property's condition and the type of neighborhood.
For some buyers and investors, driving by the property facilitate a casual
meeting with the owner or yields a wealth of unexpected information from
a talkative neighbor.
Confirming pre-foreclosure status
When a property enters pre-foreclosure, the owner usually has at least 2-3
months to reinstate the property by paying off the amount in default. The
reinstatement stops the foreclosure process, so it's important to find out if
a property has been reinstated before proceeding. The best way to check if
the property has been reinstated is to call the trustee or attorney assigned
to the foreclosure. The trustee cannot typically answer questions about the
property; they can just let you know if the property is still in foreclosure or
not.
Researching the potential bargain
Find out as much as you can about the estimated market value of the
property, how much is owed on the property and if the owner has any
other liens against the property. This is all public information and you can
research on your own with the county recorder. This process should not
take more than a day or two, because you don't want to delay long before
contacting the owner in default.
Contacting the owner in default
You or your real estate agent should initiate contact with the owner to
express your interest in the property. Before you expend the time and effort
to contact the owner, make sure you're fully prepared to buy.
If the owner has decided to list the property for sale, you can simply
contact the listing agent. Once the property is listed with an agent there
may not be as much bargain potential, but you can still negotiate a good
deal because you know the owner has a limited amount of time to sell
before the bank repossess the property or sells the property at public
auction.
In most cases, the owner has not listed the property for sale, so you will
need to pro-actively contact them. In this case, contacting the owner can
be tough, but the potential bargain is greater because you'll be cutting out
the listing agent's commission.
Contact the owner by mail to start. The basic message to communicate to
the owner is that you're interested in buying the property and you want to
work out a purchase agreement that benefits both parties.
Don't be surprised if the owner does not respond to the mail immediately.
In most states, the owner has several months between the initial
foreclosure notice and the public auction. During this time the owner will
consider all the options available, including refinancing or selling. An
owner's first reaction is usually not to sell. But if no other options work
out, selling is a better option than losing the property at public auction.
Many successful pre-foreclosure buyers and investors send quite a few
postcards to properties in their area before they find an owner who is
interested. It's not uncommon to send out several postcards to the same
owner during the foreclosure process. The owner may be more interested
to sell as the auction date looms closer. If the owner doesn't respond to
postcards, some buyers and investors will try to reach the owner by
phone or in person. If you do this, be prepared for a possible rude
response as these methods of contact are more inherently confrontational.
And always keep in mind that the owner in default retains ownership
rights to the property during the pre-foreclosure period. If they are not
interested in talking with you, it's time to leave.
If the owner rejects all of your contact attempts, you may still have a
chance to purchase the property at public auction, which occurs if the
owner doesn't sell or pay off the amount owed during the pre-foreclosure
period. You could also call the trustee periodically to check if an auction
has been scheduled.
Negotiating a purchase agreement
Once you have made contact with the owner, you should meet with them
for further discussion about the property. As part of this meeting, or a later
one, you should arrange to walk through the property to make sure it
meets your criteria as a buyer.
Because owners in foreclosure may not have the money to make repairs
to their property, you might be willing to buy the property "as is." But you
still want to keep a tab of estimated repair costs and subtract them from
your purchase offer. Your willingness to put some "sweat equity" in the
property after you purchase it will increase the chances of realizing a
good bargain.
If you and the owner both agree to proceed, you need to negotiate the
terms of a purchase. These negotiations will involve you, the owner and
the foreclosing lender. A real estate agent can be a valuable resource
during the negotiating process.
If the loan in default is assumable, you may be able to pay off the amount
in default and take over payments under the current terms of that loan. If
not, you will need to pay off the full amount owed on the loan. If the
property has other liens placed on it, you'll need to make sure those are
cleared out as part of the purchase agreement. If the owner has equity in
the property above and beyond the liens, then you can offer to split the
equity with them, allowing them to walk away with cash and you to
acquire a property below market value.
Owners might be more willing to work with you if you are flexible to help
them out in creative ways that address their situation. You could offer to
let them stay in the house for a certain amount of time (possibly paying
rent) until they find a new place to stay. You could offer to pay their
housing costs for the first month or more after they leave the property. If
you're purchasing the property as an investment, you may let them stay
and pay rent until you decide to resell the house. There are myriad ways to
work out an agreement that benefits both parties. Remember, just selling
the property during pre-foreclosure allows owners to avoid a
foreclosure-marred credit history, making it easier for them to find a new
place to live.
While negotiating the purchase agreement with the owner, you should also
contact the foreclosing lender and any other lien holders. You want them
to know you plan to purchase the property and satisfy any liens against the
property. You also may be able to negotiate a lower payoff amount to
satisfy the debts owed. Since you're saving them the trouble of pursuing
and collecting the debt owed them, some foreclosing lenders and lien
holders will clear liens on a property for less than 100 percent of the
amount owed. This is another way to realize a bargain during
pre-foreclosure.
The goal for you as a buyer is to purchase a property at least 20 percent
below full market value, although better deals are often possible. When
determining the final purchase offer, you should also take into account the
rate of real estate appreciation in the area and the potential for increasing
the house's value by making repairs and improvements.
Closing the deal
Once you've arrived at an agreement with the owner in default, the
foreclosing lender and any other lien holders, you can put the agreement
in writing. If you're not familiar with how to draw up a purchase
agreement, you should have a local real estate agent or real estate
attorney help.
Any purchase agreement should make closing the deal contingent on a full
title search conducted by a title company or attorney. The purchase
agreement should also allow for a professional inspection of the property
before closing the deal.
An escrow company, who acts as a third party, can manage the transfer of
money and property ownership. Assuming that you have your financing
secured, this should be a fairly smooth process.
Buying at Auction
Finding and filing properties
Develop a system to keep track of properties that interest
you. A good tracking system is important since most
successful auction buyers pursue several properties
sometimes over a period of several months.
After you find a property online, it's a good idea to drive by
the property to get a better idea of the property's condition
and the type of neighborhood. For some buyers and
investors, driving by the property has also facilitated a
casual meeting with the owner (you may be able to still
work out a last-minute deal before the auction) or yielded a
wealth of unexpected information from a talkative neighbor.
Confirming the auction status, location and bidding
procedure
After a property is scheduled for auction, the owner has a
chance (typically less than a month) to stop the auction by
paying the amount owed to the foreclosing lender. It's also
not uncommon for auctions to be postponed without a new
date being published. Although cancellations and
postponements are announced at the time and location of
the originally scheduled auction, you can call the trustee to
find out beforehand.
Most auctions are at a public place in the same county
where the property is located. In many states, all the
auctions in each county are at the same location. The
auction location is usually listed online (e.g. RealtyTrac) or
you can typically get the location from the trustee or the
county clerk. If you call the county clerk, make sure you
clarify that you are looking for the location of mortgage
foreclosure auctions, not tax foreclosure auctions.
The bidding procedure varies from state to state, so you
should become familiar with the procedure in your area
before bidding at an auction. In some states, bidders are
required to bring the full amount they want to bid in the
form of cash or cashier's check to the auction. In other
states, bidders are required to bring a certain percentage
(10 percent is common) of the bid amount to the auction
and pay the remainder of the amount within a certain
timeframe. If you get a friendly representative when you
call the trustee, you might be able to get information about
how the bidding works in your area, but in most cases you'll
need to educate yourself. You could also contact a local
real estate agent or attorney in your area. Of course, the
best education will come from simply observing a local
auction.
Researching the potential bargain
You need to find out as much as you can about the
estimated market value of the property, how much is owed
on the property and if the owner has any other liens against
the property. If there are outstanding liens on the property,
the winning bidder at the auction may be responsible to
satisfy these liens in some cases, so it's important to check
for any liens and the priority of the liens before you bid at
the auction. A real estate attorney or title company can
check for liens, or you can check directly with county
records.
The priority of a lien is usually determined by the date it
was placed on the property. So a first mortgage will usually
have the first priority, and all other liens will be considered
junior liens. In most states, the public auction clears out
any junior liens, but there are exceptions such as tax liens,
which typically will continue to be in effect after the
auction.
The opening bid at the auction is based on the total
amount owed to the foreclosing lender and may include
fees incurred because of the foreclosure proceedings. If no
one bids above that amount, the foreclosing lender will take
possession of the property. It's important to know this amount
so you can determine if the auction represents a potential
bargain purchase when the opening bid is compared to the
property's market value.
Determining your bid
Based on all the factors used to determine the potential
bargain - and your financial capability - you'll need to
determine how much you can and should bid at the
auction.
Determining your bid amount is more important in states
where bidders are required to bring the full amount in cash
or cashier's check to the auction. You won't even be
qualified to bid if you don't meet that requirement. If you
don't have that type of cash lying around, you have a
couple options. If you own a home, you might be able to
take out a home equity line of credit, which is a cash loan.
If you can't secure a cash loan, you may consider buying a
pre-foreclosure or bank-owned property, which usually
require only a regular mortgage loan secured by the
property being purchased.
It's also important to determine the bid amount even in
states where you don't need to bring the full amount to the
auction. By setting a firm ceiling for your bid, you'll avoid
getting caught up in the heady auction atmosphere and
overbidding, which can result in little or no bargain for you.
Also, if you're not able to pay the remainder of the bid
within the time frame stipulated by state law, the deposit
you paid at the auction is often nonrefundable.
A reasonable purchase amount at auction is at least 20
percent below full market value, and much better deals are
often possible. Other factors to consider are the rate of real
estate appreciation in the area and the potential for
increasing the property's value by making repairs and
improvements.
Bidding at the auction
Call the trustee the day before or the day of the auction to
check one last time if the auction has been canceled or
postponed. If an auction is postponed, the trustee should
provide the new auction date.
Arrive at the auction location early and locate the
auctioneer as quickly as possible. Bidding at an auction
can be intimidating, especially if you've never done it
before. Take as many cues from the other participants as
you can, but don't let them dictate how much you bid. You
may encounter investors who attend many auctions every
month and who don't necessarily appreciate new
competition.
Taking ownership
If you are the winning bidder, make sure you get the
necessary documents from the auctioneer to verify that you
are the winning bidder. Clarify with the auctioneer and a
real estate attorney what further steps need to be made
before you take ownership and possession of the property. In
some states, ownership can be transferred immediately or
within a few days. In other states, you may need to wait a
month or more for the sale to be confirmed by a court.
Some states have redemption periods for the owner, in
which case the owner can buy the property back from you if
they pay the full amount paid at the auction, plus
applicable fees. You should avoid spending money on
repairs or improvements during the redemption period.
If the trustee does not evict the current owners, you may be
responsible to do this. If eviction is necessary, you can
contact a local real estate attorney or the county sheriff for
the proper procedure.
Finding and filing properties
Develop a system to keep track of properties that interest
you. A good tracking system is important since most
successful auction buyers pursue several properties
sometimes over a period of several months.
After you find a property online, it's a good idea to drive by
the property to get a better idea of the property's condition
and the type of neighborhood. For some buyers and
investors, driving by the property has also facilitated a
casual meeting with the owner (you may be able to still
work out a last-minute deal before the auction) or yielded a
wealth of unexpected information from a talkative neighbor.
Confirming the auction status, location and bidding
procedure
After a property is scheduled for auction, the owner has a
chance (typically less than a month) to stop the auction by
paying the amount owed to the foreclosing lender. It's also
not uncommon for auctions to be postponed without a new
date being published. Although cancellations and
postponements are announced at the time and location of
the originally scheduled auction, you can call the trustee to
find out beforehand.
Most auctions are at a public place in the same county
where the property is located. In many states, all the
auctions in each county are at the same location. The
auction location is usually listed online (e.g. RealtyTrac) or
you can typically get the location from the trustee or the
county clerk. If you call the county clerk, make sure you
clarify that you are looking for the location of mortgage
foreclosure auctions, not tax foreclosure auctions.
The bidding procedure varies from state to state, so you
should become familiar with the procedure in your area
before bidding at an auction. In some states, bidders are
required to bring the full amount they want to bid in the
form of cash or cashier's check to the auction. In other
states, bidders are required to bring a certain percentage
(10 percent is common) of the bid amount to the auction
and pay the remainder of the amount within a certain
timeframe. If you get a friendly representative when you
call the trustee, you might be able to get information about
how the bidding works in your area, but in most cases you'll
need to educate yourself. You could also contact a local
real estate agent or attorney in your area. Of course, the
best education will come from simply observing a local
auction.
Researching the potential bargain
You need to find out as much as you can about the
estimated market value of the property, how much is owed
on the property and if the owner has any other liens against
the property. If there are outstanding liens on the property,
the winning bidder at the auction may be responsible to
satisfy these liens in some cases, so it's important to check
for any liens and the priority of the liens before you bid at
the auction. A real estate attorney or title company can
check for liens, or you can check directly with county
records.
The priority of a lien is usually determined by the date it
was placed on the property. So a first mortgage will usually
have the first priority, and all other liens will be considered
junior liens. In most states, the public auction clears out
any junior liens, but there are exceptions such as tax liens,
which typically will continue to be in effect after the
auction.
The opening bid at the auction is based on the total
amount owed to the foreclosing lender and may include
fees incurred because of the foreclosure proceedings. If no
one bids above that amount, the foreclosing lender will take
possession of the property. It's important to know this amount
so you can determine if the auction represents a potential
bargain purchase when the opening bid is compared to the
property's market value.
Determining your bid
Based on all the factors used to determine the potential
bargain - and your financial capability - you'll need to
determine how much you can and should bid at the
auction.
Determining your bid amount is more important in states
where bidders are required to bring the full amount in cash
or cashier's check to the auction. You won't even be
qualified to bid if you don't meet that requirement. If you
don't have that type of cash lying around, you have a
couple options. If you own a home, you might be able to
take out a home equity line of credit, which is a cash loan.
If you can't secure a cash loan, you may consider buying a
pre-foreclosure or bank-owned property, which usually
require only a regular mortgage loan secured by the
property being purchased.
It's also important to determine the bid amount even in
states where you don't need to bring the full amount to the
auction. By setting a firm ceiling for your bid, you'll avoid
getting caught up in the heady auction atmosphere and
overbidding, which can result in little or no bargain for you.
Also, if you're not able to pay the remainder of the bid
within the time frame stipulated by state law, the deposit
you paid at the auction is often nonrefundable.
A reasonable purchase amount at auction is at least 20
percent below full market value, and much better deals are
often possible. Other factors to consider are the rate of real
estate appreciation in the area and the potential for
increasing the property's value by making repairs and
improvements.
Bidding at the auction
Call the trustee the day before or the day of the auction to
check one last time if the auction has been canceled or
postponed. If an auction is postponed, the trustee should
provide the new auction date.
Arrive at the auction location early and locate the
auctioneer as quickly as possible. Bidding at an auction
can be intimidating, especially if you've never done it
before. Take as many cues from the other participants as
you can, but don't let them dictate how much you bid. You
may encounter investors who attend many auctions every
month and who don't necessarily appreciate new
competition.
Taking ownership
If you are the winning bidder, make sure you get the
necessary documents from the auctioneer to verify that you
are the winning bidder. Clarify with the auctioneer and a
real estate attorney what further steps need to be made
before you take ownership and possession of the property. In
some states, ownership can be transferred immediately or
within a few days. In other states, you may need to wait a
month or more for the sale to be confirmed by a court.
Some states have redemption periods for the owner, in
which case the owner can buy the property back from you if
they pay the full amount paid at the auction, plus
applicable fees. You should avoid spending money on
repairs or improvements during the redemption period.
If the trustee does not evict the current owners, you may be
responsible to do this. If eviction is necessary, you can
contact a local real estate attorney or the county sheriff for
the proper procedure.
How to Buy Real Estate Bank Owned??
Finding and filing properties
Develop a system to keep track of properties that interest you. A good tracking system is important as
most foreclosure buyers pursue many properties, sometimes over a period of several months.
After you find a property online, it's a good idea to drive by the property to get a better idea of the
property's condition and the type of neighborhood. Some buyers and investors who have driven by the
property have found notices posted there that provide more information about the bank who now owns
the property. You'll also see if the property is listed with a real estate agent.
Researching the potential bargain
When you find a property that interests you, perform some preliminary research to make sure the
property represents a good bargain opportunity. Your research should not take more than one or two
days because you do not want to delay too long before contacting the foreclosing bank. The key pieces
of information you need to gather are the estimated market value of the property and the bank's
break-even amount.
The bank's break-even amount includes the unpaid balance of the loan, any fees and costs incurred
during the foreclosure process and any other liens the bank had to pay off to take ownership of the
property. The unpaid loan balance plus any foreclosure fees and costs are included in the opening bid.
Contacting the bank
You or your real estate agent should initiate contact with the bank to express your interest in the
property. Before you expend the time and effort to contact the bank, make sure you're fully prepared to
buy.
At this stage of foreclosure it's more likely the property will be listed for sale on the Multiple Listing
Service (MLS), so make sure you or your agent checks the MLS. If the property is listed for sale, you can
contact the listing agent directly. Keep in mind that the potential bargain often diminishes if a listing
agent is involved.
If the property is not listed with a real estate agent, you'll need to take some pro-active steps to contact
the foreclosing bank directly. The bank's main focus is not selling property, which means you may need
to do some digging to find the department or person at the bank who manages repossessed property.
When you call the foreclosing bank, you should ask for the REO (Real Estate Owned) department,
bank-owned homes department or asset management department. Be patient and persistent at this point
because it may take some time to get through to this department.
If you have trouble contacting the bank by phone, another option is to overnight or fax a letter to the bank
stating your interest in the property. Some buyers and investors include a check made out to a local
escrow company to get the bank's attention. This check is usually a small percentage of the total
purchase price and should be refunded if no transaction takes place, but it shows you're a serious buyer.
Negotiating a purchase agreement
Once you make contact with the bank's asset manager or REO officer, you should arrange to walk
through the property (with your agent if applicable) to make sure it fits your criteria as a buyer. If both you
and the bank agree to proceed, you should start negotiating the terms of the purchase agreement. A real
estate agent can be a valuable resource during the negotiating process.
If state law allows a redemption period for the owner after the bank takes ownership of the property, you
may have to wait until the end of the redemption period - several weeks or several months, depending
on the state. During the redemption period the owner can regain ownership of the property by paying the
total amount owed to the bank plus any applicable foreclosure expenses.
The bank's primary goal is to at least break even on all the costs that it has sunk into the property. That
includes the unpaid balance of the loan, the expenses associated with the foreclosure proceedings,
other liens and repairs to the property. Your goal as a buyer is to purchase the property below market
value, minus any estimated repair costs. This is often possible if you contact the bank quickly and are a
prepared buyer ready to make a purchase.
In the recent real estate market, buying directly from the bank has not been as profitable as buying
during pre-foreclosure or at the public auction. That's not to say there aren't good deals available. And
many buyers and investors prefer to buy directly from the bank because it's typically a more predictable
process than buying during pre-foreclosure or at a public auction.
You'll probably get a better bargain if you're willing to buy the property "as is," meaning you're willing to
buy the property in need of repairs disclosed by the seller. Of course you'll still want to figure estimated
repair costs into your final purchase offer.
Banks may be more willing to sell at a below-market price if they have a glut of foreclosures, which are
non-performing assets from their perspective. If you're an investor or buyer looking for more properties
to purchase, you should let the asset manager or REO officer know to contact you in the future if the
bank needs to quickly unload foreclosure properties.
Closing the deal
Once you've arrived at an agreement with the foreclosing bank, you can put the agreement in writing.
You should have a local real estate agent or real estate attorney help if you're not familiar with how to
draw up a purchase agreement.
Any purchase agreement should make closing of the deal contingent on a full title search conducted by a
title company or attorney. The purchase agreement should also allow for a professional inspection of the
property before closing the deal.
An escrow company, who acts as a third party, can manage the transfer of money and property
ownership. Assuming that you have your financing secured, this should be a fairly smooth process.
Finding and filing properties
Develop a system to keep track of properties that interest you. A good tracking system is important as
most foreclosure buyers pursue many properties, sometimes over a period of several months.
After you find a property online, it's a good idea to drive by the property to get a better idea of the
property's condition and the type of neighborhood. Some buyers and investors who have driven by the
property have found notices posted there that provide more information about the bank who now owns
the property. You'll also see if the property is listed with a real estate agent.
Researching the potential bargain
When you find a property that interests you, perform some preliminary research to make sure the
property represents a good bargain opportunity. Your research should not take more than one or two
days because you do not want to delay too long before contacting the foreclosing bank. The key pieces
of information you need to gather are the estimated market value of the property and the bank's
break-even amount.
The bank's break-even amount includes the unpaid balance of the loan, any fees and costs incurred
during the foreclosure process and any other liens the bank had to pay off to take ownership of the
property. The unpaid loan balance plus any foreclosure fees and costs are included in the opening bid.
Contacting the bank
You or your real estate agent should initiate contact with the bank to express your interest in the
property. Before you expend the time and effort to contact the bank, make sure you're fully prepared to
buy.
At this stage of foreclosure it's more likely the property will be listed for sale on the Multiple Listing
Service (MLS), so make sure you or your agent checks the MLS. If the property is listed for sale, you can
contact the listing agent directly. Keep in mind that the potential bargain often diminishes if a listing
agent is involved.
If the property is not listed with a real estate agent, you'll need to take some pro-active steps to contact
the foreclosing bank directly. The bank's main focus is not selling property, which means you may need
to do some digging to find the department or person at the bank who manages repossessed property.
When you call the foreclosing bank, you should ask for the REO (Real Estate Owned) department,
bank-owned homes department or asset management department. Be patient and persistent at this point
because it may take some time to get through to this department.
If you have trouble contacting the bank by phone, another option is to overnight or fax a letter to the bank
stating your interest in the property. Some buyers and investors include a check made out to a local
escrow company to get the bank's attention. This check is usually a small percentage of the total
purchase price and should be refunded if no transaction takes place, but it shows you're a serious buyer.
Negotiating a purchase agreement
Once you make contact with the bank's asset manager or REO officer, you should arrange to walk
through the property (with your agent if applicable) to make sure it fits your criteria as a buyer. If both you
and the bank agree to proceed, you should start negotiating the terms of the purchase agreement. A real
estate agent can be a valuable resource during the negotiating process.
If state law allows a redemption period for the owner after the bank takes ownership of the property, you
may have to wait until the end of the redemption period - several weeks or several months, depending
on the state. During the redemption period the owner can regain ownership of the property by paying the
total amount owed to the bank plus any applicable foreclosure expenses.
The bank's primary goal is to at least break even on all the costs that it has sunk into the property. That
includes the unpaid balance of the loan, the expenses associated with the foreclosure proceedings,
other liens and repairs to the property. Your goal as a buyer is to purchase the property below market
value, minus any estimated repair costs. This is often possible if you contact the bank quickly and are a
prepared buyer ready to make a purchase.
In the recent real estate market, buying directly from the bank has not been as profitable as buying
during pre-foreclosure or at the public auction. That's not to say there aren't good deals available. And
many buyers and investors prefer to buy directly from the bank because it's typically a more predictable
process than buying during pre-foreclosure or at a public auction.
You'll probably get a better bargain if you're willing to buy the property "as is," meaning you're willing to
buy the property in need of repairs disclosed by the seller. Of course you'll still want to figure estimated
repair costs into your final purchase offer.
Banks may be more willing to sell at a below-market price if they have a glut of foreclosures, which are
non-performing assets from their perspective. If you're an investor or buyer looking for more properties
to purchase, you should let the asset manager or REO officer know to contact you in the future if the
bank needs to quickly unload foreclosure properties.
Closing the deal
Once you've arrived at an agreement with the foreclosing bank, you can put the agreement in writing.
You should have a local real estate agent or real estate attorney help if you're not familiar with how to
draw up a purchase agreement.
Any purchase agreement should make closing of the deal contingent on a full title search conducted by a
title company or attorney. The purchase agreement should also allow for a professional inspection of the
property before closing the deal.
An escrow company, who acts as a third party, can manage the transfer of money and property
ownership. Assuming that you have your financing secured, this should be a fairly smooth process.
The 7 New Rules of Financial Security
In a world turned upside down, you must re-examine some basic assumptions. A good place to
start: understanding the true nature of risk.
Rule No. 1: Risk
Old thinking: If you can stomach the ups and downs that come with risk, you'll be rewarded.
New rule: Risk isn't about your stomach. It's about making or missing an important goal.
You know you have to consider risk. But what is risk? Many of us have learned to think of risk as
synonymous with volatility. For years, what came down reliably bounced back even higher.
You could easily conclude that risk tolerance was just a matter of taste. As long as you had the
fortitude to see the occasional loss on your 401(k) statement and not panic, you would capture
superior returns over time.
What to do: You shouldn't run from risky investments just because they lost money - that train
has left the station. But the old buy-on-the-dips advice isn't quite right either. This bear market's
lesson is that how much risk you can take is a matter of how much you can lose and still meet
your basic goals. That may mean scaling back on stocks, even if you miss some of the next
market rebound.
Rule No. 2: Cash
Old thinking: Keep enough money in ultrasafe accounts to cover life's emergencies, but no
more.
New rule: Relying more on cash can rescue you in an "asset emergency."
For most of your career you'll want to set aside about six months' worth of living expenses in the
bank. That money covers the mortgage and puts food on the table should you lose your job.
The fact that you'll earn only about 2% is beside the point. You can't take the risk.
The simultaneous crash in stocks and houses has taught us that we need to redefine
"emergency."Rande Spiegelman, vice president of financial planning for the Schwab Center
for Financial Research, recommends looking at the next one to three years and adding up any
big-ticket stuff you see coming: tuition, a wedding, a down payment on a house. Once you
have your total, aim to hold that much in a cash account or a low-risk investment such as a
high-quality short-term bond fund.
What to do: It's not easy to build cash savings and a retirement fund at the same time. If you
have to make choices, build up that emergency fund first because you can't expect to lean on
your home equity or stocks if you lose your job. And see if you have some flexibility on the
big-ticket obligations. Maybe you plan for a state school rather than a private college, or
downsize the wedding. If all your assets are in a 401(k), move some of that balance to low-risk
investment options as you build your cash funds. That will preserve more to tap via a 401(k)
loan in a pinch. Not a terrific option, but it can beat the alternatives.
In the years just before and after retirement, cash becomes even more important. You don't
want to sell stocks during a bear market to buy groceries. Aim for two to four years' worth of
living expenses in low-risk assets as you near retirement.
Rule No. 3: Human Capital
Old thinking: The longer your time horizon, the more stocks you should own.
New rule: Time isn't everything. You must also consider your earnings potential.
It's one of the basic rules of thumb: The more years you have to recoup losses, the more
aggressive you can be. Unfortunately, the math isn't so clear-cut.
Here's a better way to think about how aggressive your portfolio should be: Imagine that it
includes not only stocks and bonds but also your human capital, meaning your ability to earn
income by working. The safer it is, the more chances you can afford to take with your other
assets - that is, your portfolio.
This doesn't mean that time no longer matters. As you age, the value of your human capital
declines, and you'll need to secure more of your savings. So the conventional advice to hold a
lot in stocks when you are young and gradually trim back can still make sense.
But not for everyone. The nature of your career may make your human capital more bond-like
or more stock-like, says finance professor Moshe Milevsky of York University in Toronto. Tenured
professors like Milevsky have human capital that resembles a triple-A-rated bond, especially
when they have a solid pension plan. Those lucky souls can dive aggressively into stocks and
even stay there as they approach retirement, he says. The human capital of a
commission-based mortgage broker, on the other hand, is pretty clearly a stock - and it's not a
blue chip. That person should own a fair amount of bonds, even when young.
What to do: Assess your human capital. A typical worker's income is about 70% like a bond and
30% like a stock, says Thomas Idzorek, chief investment officer for Ibbotson Associates. Use
that as your baseline and then think about how long you'll be working, the stability of your
current job, and your ability to change careers if you have to. You've probably realized in the
past few months that your human capital is not as secure as you once thought. If you've been
an aggressive investor, that alone may be a reason to shift more of your assets to safer ground.
Rule No. 4: Borrowing
Old thinking: Borrowing sensibly is a good way to build wealth.
New rule: Borrow cautiously. You have to worry about the other guy's debt too.
The quarter-century leading up to 2007 wasn't simply a golden age for stocks. It was also a bull
market for leverage. (That's Wall Streetspeak for debt.) Since 1982, mortgage rates have fallen
from 16% to below 6%. The levy on college loans dropped to around 3%. Americans
responded to easy credit in a predictable way. The personal savings rate fell from over 12% to
zilch, and household debt payments as a percentage of disposable income rose by a third as
families "put it on the card" and paid for lavish kitchen upgrades with home-equity loans.
Looking back, America's borrowing binge was nuts. Families were leaning on housing wealth,
and that wealth was shaky.
The obvious moral here is to be conservative. There are always good reasons to borrow, even
today. You need a mortgage to buy a house, and a college education provides enough of a
lifetime payoff to justify a loan. But you ought to stretch less.
There's a subtler lesson too. David Ellison, president of the FBR Funds, says that you have more
exposure to leverage than you think, especially now that everyone is trying to unload debt.
Perhaps your employer borrowed a lot over the past decade and now needs to conserve cash,
so it's laying off staff. Suddenly that HELOC you could easily handle on your salary doesn't look
like such a super idea. You can't lean on your investments for help, because many of the
companies you owned used leverage to pump up profits, and now they can't borrow, so their
earnings and stock prices are falling. And it's harder to shore up your own balance sheet by
selling your house when banks are reining in lending and potential buyers are scared to borrow
for an asset that may decline further.
What to do: Be conservative about debt? Make that very conservative. Especially when your
neighbors aren't. Get a mortgage you can afford for the life of the loan, and put at least 20%
down.
Rule No. 5: Housing
Old thinking: You can expect your house to appreciate handsomely over the long run.
New rule: Your home won't make you rich. But it is an important savings tool.
If you live on one of the coasts, you probably guessed sometime around 2005 that home prices
couldn't keep rising the way they were. But the severity of the crash was still a shock: You heard
a lot about how the market would have to "cool off" or "get back to normal" - the implication
being that slow but steady appreciation was the future.
But the long-run data always told a different story. Yale University economist Robert Shiller
looked closely in 2005 at the history of home prices since 1890, using a database he
constructed. What he found was surprising. Except for two spectacular booms - the first after
World War II and the second starting in 1998 - real estate appreciation has been unimpressive
after figuring in inflation. As Shiller wrote in "Irrational Exuberance," technology has allowed
builders to nail up more houses faster, ensuring that supply never gets too far behind demand
(and often gets ahead of it).
Even when prices are rising, gains on real estate aren't as dazzling as they look, once you
account for expenses. Maintenance costs typically run at about 1% of a home's value
annually, in addition to insurance and taxes. If you remodel, the most you can expect to
recoup is about 80%. You have to pay steep fees when you buy (up to 3% in closing costs) and
sell (up to 6% for realtor fees).
What to do: This doesn't mean you have to rent, just that you should have modest expectations
for your house as a wealth builder. There are still financial pluses. First, owning a house gives
you a hedge against rising values in your own community so that you don't risk being priced
out as rents go up. (Ask a New Yorker about that.) Second, a traditional 30-year mortgage acts
as what economists call a "commitment device," or a tool that forces you to save. Instead of
writing a check to a landlord, you gradually pay off principal. At the end, you own a house.
Aside from your 401(k), no other asset enforces such discipline.
Rule No. 6: Diversification
Old thinking: A diversified portfolio lowers your risk.
New rule: Diversification won't always save you - and you need more of it than you think.
Diversification hasn't stopped you from getting hurt in this downturn. Both U.S. and foreign
stocks are deep in the red. Holding bonds did cushion your losses, but most kinds of bonds still
declined. What happened?
Jeremy Grantham, chief investment strategist at GMO, observed back in 2007 that we had a
bubble not just in one or two kinds of assets, but in risk. Investors around the world were so
confident, and so hungry for even a little extra return, that they were throwing money at
anything that might deliver. Now that the risk bubble has burst, all those investors want now is
the safety of U.S. Treasuries. So everything has moved roughly in sync, both up and down, for
a few years.
Bear in mind, though, that these times are, to say the least, unusual. Over a longer period - as
little as a decade - diversification still looks effective. While large U.S. stocks are down the past
10 years, U.S. corporate bonds earned 4.6% a year for the same period.
But in a global economy where money moves quickly, you have to work harder at
diversification than before.
What to do: To ensure you are diversified, you don't have to go out and buy 16 new mutual
funds. First, look under the hood of the funds you have to see if you already own some of those
assets. An easy way to do so is to plug your holdings into Morningstar.com's Instant X-Ray tool.
And buy funds that kill two birds with one stone. The T. Rowe Price International Bond fund, for
example, invests up to 20% of its assets in emerging markets and the rest in developed
countries. Put that together with a high-yield fund and a broad U.S. bond fund, and you'll own
most of the bond universe.
Rule No. 7: Retirement
Old thinking: Retiring early is a prize.
New rule: Retiring early is a problem.
Ever since Uncle Sam set 65 as the age you could retire and collect full Social Security
benefits (it's 66 or 67 for boomers today), workers have been trying to beat that bogey by
quitting early. And that seemed well within reach earlier in this decade after a bull market that
gave workers confidence that their money could work for them rather than the other way around.
But the reality of early retirement, even before the stock market's sickening plunge, was never
quite that rosy. More than half of early retirees leave work before they intended, and of those,
nine in 10 depart because they get sick or are downsized.
And now the financial prospects for those who had a shot at a secure early retirement have
dimmed: Long-tenured workers nearing retirement have seen their 401(k) accounts shrink an
average of 30% over the past 14 months, according to EBRI. There's no way around it: The
numbers require you to rethink your plans.
What to do: "By delaying retirement just one year you could increase your annual retirement
income by 9%," says Richard Johnson, senior fellow at the Urban Institute. If you can hang on
to your current high-paying post, great. The reality, of course, is that in an era of harsh cost
cutting, well-paid older workers are more vulnerable. And you might not want to stick it out any
longer anyway if the severance is decent. But there's much to be gained from finding another
job, even if it's a lower-paid or part-time position. If you can earn enough to avoid collecting
Social Security benefits early or dipping into your retirement accounts, research by T. Rowe
Price shows, you'll barely feel a hit to your income when you do retire. If your new job comes
with health benefits, so much the better. The average health-care tab for an early retiree
before he is eligible for Medicare runs to $8,500 a year, says an AARP study.
Despite all those benefits, if you are still many years away from the retire-or-work decision, you
should think of working longer as Plan B. As we noted, you won't have complete control over
your ability to work - your health or the job market could make it difficult. That means you can't
afford to assume that you'll just work a few more years if things go wrong. You will still have to
stick to rules 1 through 6.
In a world turned upside down, you must re-examine some basic assumptions. A good place to
start: understanding the true nature of risk.
Rule No. 1: Risk
Old thinking: If you can stomach the ups and downs that come with risk, you'll be rewarded.
New rule: Risk isn't about your stomach. It's about making or missing an important goal.
You know you have to consider risk. But what is risk? Many of us have learned to think of risk as
synonymous with volatility. For years, what came down reliably bounced back even higher.
You could easily conclude that risk tolerance was just a matter of taste. As long as you had the
fortitude to see the occasional loss on your 401(k) statement and not panic, you would capture
superior returns over time.
What to do: You shouldn't run from risky investments just because they lost money - that train
has left the station. But the old buy-on-the-dips advice isn't quite right either. This bear market's
lesson is that how much risk you can take is a matter of how much you can lose and still meet
your basic goals. That may mean scaling back on stocks, even if you miss some of the next
market rebound.
Rule No. 2: Cash
Old thinking: Keep enough money in ultrasafe accounts to cover life's emergencies, but no
more.
New rule: Relying more on cash can rescue you in an "asset emergency."
For most of your career you'll want to set aside about six months' worth of living expenses in the
bank. That money covers the mortgage and puts food on the table should you lose your job.
The fact that you'll earn only about 2% is beside the point. You can't take the risk.
The simultaneous crash in stocks and houses has taught us that we need to redefine
"emergency."Rande Spiegelman, vice president of financial planning for the Schwab Center
for Financial Research, recommends looking at the next one to three years and adding up any
big-ticket stuff you see coming: tuition, a wedding, a down payment on a house. Once you
have your total, aim to hold that much in a cash account or a low-risk investment such as a
high-quality short-term bond fund.
What to do: It's not easy to build cash savings and a retirement fund at the same time. If you
have to make choices, build up that emergency fund first because you can't expect to lean on
your home equity or stocks if you lose your job. And see if you have some flexibility on the
big-ticket obligations. Maybe you plan for a state school rather than a private college, or
downsize the wedding. If all your assets are in a 401(k), move some of that balance to low-risk
investment options as you build your cash funds. That will preserve more to tap via a 401(k)
loan in a pinch. Not a terrific option, but it can beat the alternatives.
In the years just before and after retirement, cash becomes even more important. You don't
want to sell stocks during a bear market to buy groceries. Aim for two to four years' worth of
living expenses in low-risk assets as you near retirement.
Rule No. 3: Human Capital
Old thinking: The longer your time horizon, the more stocks you should own.
New rule: Time isn't everything. You must also consider your earnings potential.
It's one of the basic rules of thumb: The more years you have to recoup losses, the more
aggressive you can be. Unfortunately, the math isn't so clear-cut.
Here's a better way to think about how aggressive your portfolio should be: Imagine that it
includes not only stocks and bonds but also your human capital, meaning your ability to earn
income by working. The safer it is, the more chances you can afford to take with your other
assets - that is, your portfolio.
This doesn't mean that time no longer matters. As you age, the value of your human capital
declines, and you'll need to secure more of your savings. So the conventional advice to hold a
lot in stocks when you are young and gradually trim back can still make sense.
But not for everyone. The nature of your career may make your human capital more bond-like
or more stock-like, says finance professor Moshe Milevsky of York University in Toronto. Tenured
professors like Milevsky have human capital that resembles a triple-A-rated bond, especially
when they have a solid pension plan. Those lucky souls can dive aggressively into stocks and
even stay there as they approach retirement, he says. The human capital of a
commission-based mortgage broker, on the other hand, is pretty clearly a stock - and it's not a
blue chip. That person should own a fair amount of bonds, even when young.
What to do: Assess your human capital. A typical worker's income is about 70% like a bond and
30% like a stock, says Thomas Idzorek, chief investment officer for Ibbotson Associates. Use
that as your baseline and then think about how long you'll be working, the stability of your
current job, and your ability to change careers if you have to. You've probably realized in the
past few months that your human capital is not as secure as you once thought. If you've been
an aggressive investor, that alone may be a reason to shift more of your assets to safer ground.
Rule No. 4: Borrowing
Old thinking: Borrowing sensibly is a good way to build wealth.
New rule: Borrow cautiously. You have to worry about the other guy's debt too.
The quarter-century leading up to 2007 wasn't simply a golden age for stocks. It was also a bull
market for leverage. (That's Wall Streetspeak for debt.) Since 1982, mortgage rates have fallen
from 16% to below 6%. The levy on college loans dropped to around 3%. Americans
responded to easy credit in a predictable way. The personal savings rate fell from over 12% to
zilch, and household debt payments as a percentage of disposable income rose by a third as
families "put it on the card" and paid for lavish kitchen upgrades with home-equity loans.
Looking back, America's borrowing binge was nuts. Families were leaning on housing wealth,
and that wealth was shaky.
The obvious moral here is to be conservative. There are always good reasons to borrow, even
today. You need a mortgage to buy a house, and a college education provides enough of a
lifetime payoff to justify a loan. But you ought to stretch less.
There's a subtler lesson too. David Ellison, president of the FBR Funds, says that you have more
exposure to leverage than you think, especially now that everyone is trying to unload debt.
Perhaps your employer borrowed a lot over the past decade and now needs to conserve cash,
so it's laying off staff. Suddenly that HELOC you could easily handle on your salary doesn't look
like such a super idea. You can't lean on your investments for help, because many of the
companies you owned used leverage to pump up profits, and now they can't borrow, so their
earnings and stock prices are falling. And it's harder to shore up your own balance sheet by
selling your house when banks are reining in lending and potential buyers are scared to borrow
for an asset that may decline further.
What to do: Be conservative about debt? Make that very conservative. Especially when your
neighbors aren't. Get a mortgage you can afford for the life of the loan, and put at least 20%
down.
Rule No. 5: Housing
Old thinking: You can expect your house to appreciate handsomely over the long run.
New rule: Your home won't make you rich. But it is an important savings tool.
If you live on one of the coasts, you probably guessed sometime around 2005 that home prices
couldn't keep rising the way they were. But the severity of the crash was still a shock: You heard
a lot about how the market would have to "cool off" or "get back to normal" - the implication
being that slow but steady appreciation was the future.
But the long-run data always told a different story. Yale University economist Robert Shiller
looked closely in 2005 at the history of home prices since 1890, using a database he
constructed. What he found was surprising. Except for two spectacular booms - the first after
World War II and the second starting in 1998 - real estate appreciation has been unimpressive
after figuring in inflation. As Shiller wrote in "Irrational Exuberance," technology has allowed
builders to nail up more houses faster, ensuring that supply never gets too far behind demand
(and often gets ahead of it).
Even when prices are rising, gains on real estate aren't as dazzling as they look, once you
account for expenses. Maintenance costs typically run at about 1% of a home's value
annually, in addition to insurance and taxes. If you remodel, the most you can expect to
recoup is about 80%. You have to pay steep fees when you buy (up to 3% in closing costs) and
sell (up to 6% for realtor fees).
What to do: This doesn't mean you have to rent, just that you should have modest expectations
for your house as a wealth builder. There are still financial pluses. First, owning a house gives
you a hedge against rising values in your own community so that you don't risk being priced
out as rents go up. (Ask a New Yorker about that.) Second, a traditional 30-year mortgage acts
as what economists call a "commitment device," or a tool that forces you to save. Instead of
writing a check to a landlord, you gradually pay off principal. At the end, you own a house.
Aside from your 401(k), no other asset enforces such discipline.
Rule No. 6: Diversification
Old thinking: A diversified portfolio lowers your risk.
New rule: Diversification won't always save you - and you need more of it than you think.
Diversification hasn't stopped you from getting hurt in this downturn. Both U.S. and foreign
stocks are deep in the red. Holding bonds did cushion your losses, but most kinds of bonds still
declined. What happened?
Jeremy Grantham, chief investment strategist at GMO, observed back in 2007 that we had a
bubble not just in one or two kinds of assets, but in risk. Investors around the world were so
confident, and so hungry for even a little extra return, that they were throwing money at
anything that might deliver. Now that the risk bubble has burst, all those investors want now is
the safety of U.S. Treasuries. So everything has moved roughly in sync, both up and down, for
a few years.
Bear in mind, though, that these times are, to say the least, unusual. Over a longer period - as
little as a decade - diversification still looks effective. While large U.S. stocks are down the past
10 years, U.S. corporate bonds earned 4.6% a year for the same period.
But in a global economy where money moves quickly, you have to work harder at
diversification than before.
What to do: To ensure you are diversified, you don't have to go out and buy 16 new mutual
funds. First, look under the hood of the funds you have to see if you already own some of those
assets. An easy way to do so is to plug your holdings into Morningstar.com's Instant X-Ray tool.
And buy funds that kill two birds with one stone. The T. Rowe Price International Bond fund, for
example, invests up to 20% of its assets in emerging markets and the rest in developed
countries. Put that together with a high-yield fund and a broad U.S. bond fund, and you'll own
most of the bond universe.
Rule No. 7: Retirement
Old thinking: Retiring early is a prize.
New rule: Retiring early is a problem.
Ever since Uncle Sam set 65 as the age you could retire and collect full Social Security
benefits (it's 66 or 67 for boomers today), workers have been trying to beat that bogey by
quitting early. And that seemed well within reach earlier in this decade after a bull market that
gave workers confidence that their money could work for them rather than the other way around.
But the reality of early retirement, even before the stock market's sickening plunge, was never
quite that rosy. More than half of early retirees leave work before they intended, and of those,
nine in 10 depart because they get sick or are downsized.
And now the financial prospects for those who had a shot at a secure early retirement have
dimmed: Long-tenured workers nearing retirement have seen their 401(k) accounts shrink an
average of 30% over the past 14 months, according to EBRI. There's no way around it: The
numbers require you to rethink your plans.
What to do: "By delaying retirement just one year you could increase your annual retirement
income by 9%," says Richard Johnson, senior fellow at the Urban Institute. If you can hang on
to your current high-paying post, great. The reality, of course, is that in an era of harsh cost
cutting, well-paid older workers are more vulnerable. And you might not want to stick it out any
longer anyway if the severance is decent. But there's much to be gained from finding another
job, even if it's a lower-paid or part-time position. If you can earn enough to avoid collecting
Social Security benefits early or dipping into your retirement accounts, research by T. Rowe
Price shows, you'll barely feel a hit to your income when you do retire. If your new job comes
with health benefits, so much the better. The average health-care tab for an early retiree
before he is eligible for Medicare runs to $8,500 a year, says an AARP study.
Despite all those benefits, if you are still many years away from the retire-or-work decision, you
should think of working longer as Plan B. As we noted, you won't have complete control over
your ability to work - your health or the job market could make it difficult. That means you can't
afford to assume that you'll just work a few more years if things go wrong. You will still have to
stick to rules 1 through 6.
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Interpret Home Inspection Reports?
FREE HOME ADVERTISEMENT FOR {FSBO}: For Sale
By Owner; Let us put your property on the market For
Sale. IT'S FREE -- Your listing will be available to
thousands of buyers & investors...
REAL ESTATE WANTED: Private Investors Want
Commercial Properties. Will Look at all income
producing properties. CONTACT US...
map to riches, it’s one of the best way to build wealth.
Search For, & Buy Property in Any City; Anywhere. Click
Here...
FREE SERVICE: Real Estate Assistance Program For
Home-Buyers & sellers. FREE MONEY: EARN CASH
BACK UP TO $2,500.00. LEARN MORE HERE!...
REAL ESTATE GENERAL INFORMATION CENTER:
Money-Making Information You'll Need to Succeed in
Real Estate...
Mortgage Loans Learning Center: Everything About
Mortgage Home Loans. What You Need to Know Before
& After Taking a Mortgage Loan..
FREE Home Value Report, {CMA - Home Appraisal}
What is the value of your home? Find-out Now.. IT'S
FREE.
HOME-BUYERS FREE SERVICE: Before you buy it, you
must know how much it worths. What's the exact or
approximate value of it? FIND-OUT NOW!..
HOME INSPECTION: How to use home inspection
reports report to negotiate sale price? How to Identify a
Qualified and Reliable Home Inspector? How to
Interpret Home Inspection Reports?
FREE HOME ADVERTISEMENT FOR {FSBO}: For Sale
By Owner; Let us put your property on the market For
Sale. IT'S FREE -- Your listing will be available to
thousands of buyers & investors...
REAL ESTATE WANTED: Private Investors Want
Commercial Properties. Will Look at all income
producing properties. CONTACT US...
AMERICA'S WAY OF LIFE: UNITED STATES
Government Most Important Websites to know About!...
UNITED STATES CONSTITUTION: "CHARTERS OF
FREEDOM" Unknowm Information to learn about!...
GOVERNMENT INFORMATION CENTER: Federal. State,
Counties & Cities...
FREE CREDIT REPORT: Get a Free Credit Report From
all 3 Credit Bureaus
Banking & Finance: The more you know the closer you
are to accomplish great success. Business, Financial,
Commercial News & Commentary...
FREE FINANCIAL ADVICE: WAYS TO SAVE MONEY,
TO MAKE MONEY, AND GET OUT OF DEBT
FREE CREDIT HELP, CREDIT INFO: SAVE YOUR
CREDIT, RESCUE IT, FIX IT, PROTECT IT, INCREASE
YOUR SCORE...
INSURANCE 101: How to save money on your
insurance?
5 INSURANCE POLICIES EVERYONE SHOULD HAVE,
AND 15
INSURANCE POLICIES YOU MAY NOT NEED.
FORTUNE: National Association Of Securities Dealers
-{ NASDD / FINRA}. BEFORE YOU START INVESTING
ANY MONEY; LEARN THIS FIRST!...
FREE SERVICE, LICENSING HELP: Make a
Professional License, Renew a License, Check Status
of a License, Register a Business...
A Florida Real Estate Investment company is looking
for: Foreclosure Properties to buy. CASH OR TERMS.
CONTACT US...
Government Most Important Websites to know About!...
UNITED STATES CONSTITUTION: "CHARTERS OF
FREEDOM" Unknowm Information to learn about!...
GOVERNMENT INFORMATION CENTER: Federal. State,
Counties & Cities...
FREE CREDIT REPORT: Get a Free Credit Report From
all 3 Credit Bureaus
Banking & Finance: The more you know the closer you
are to accomplish great success. Business, Financial,
Commercial News & Commentary...
FREE FINANCIAL ADVICE: WAYS TO SAVE MONEY,
TO MAKE MONEY, AND GET OUT OF DEBT
FREE CREDIT HELP, CREDIT INFO: SAVE YOUR
CREDIT, RESCUE IT, FIX IT, PROTECT IT, INCREASE
YOUR SCORE...
INSURANCE 101: How to save money on your
insurance?
5 INSURANCE POLICIES EVERYONE SHOULD HAVE,
AND 15
INSURANCE POLICIES YOU MAY NOT NEED.
FORTUNE: National Association Of Securities Dealers
-{ NASDD / FINRA}. BEFORE YOU START INVESTING
ANY MONEY; LEARN THIS FIRST!...
FREE SERVICE, LICENSING HELP: Make a
Professional License, Renew a License, Check Status
of a License, Register a Business...
A Florida Real Estate Investment company is looking
for: Foreclosure Properties to buy. CASH OR TERMS.
CONTACT US...
Millionaire Mind Set, Take Control of your Destiny. How to
Make Your First $1 Million Dollar?
Real Estate Learning Center: Foreclosure, REO'S, Short Sale,
Pre-construction.
Mortgage Loans Learning Center. Everything about mortgage
home loans
FORTUNE: National Association Of Securities Dealers - NASDD
/ FINRA. LEARN MORE... BEFORE YOU START INVESTING
ANY MONEY: LEARN THIS FIRST!
RICH GUIDE: WHY YOU AREN’T RICH? BUILDING
FINANCIAL WEALTH, OBTAIN FINANCIAL FREEDOM,
BECOME A RICH PERSON; YES YOU CAN
FREE: Home Value Report... {CMA] Real Estate Appraisal.
FREE SERVICE
Housing Finance Authority of Miami dade, Monroe, Broward,
and Palm Beach County. State & Federal Homebuyer's
Programs.
FREE FINANCIAL ADVICE. WAYS TO SAVE MONEY, TO
MAKE MONEY, AND GET OUT OF DEBT!
GOVERNMENTS GENERAL INFORMATION CENTER: MIAMI
DADE, BROWARD, MONROE, PALM BEACH COUNTY
COUNT. STATE OF FLORIDA AND THE U.S. FEDERAL
GOVERNMENT.
FREE-CREDIT REPORT: Get a Free Credit Report From all 3
Credit Bureaus
INSURANCE 101: THE IMPORTANCE OF INSURANCE IN
SOMEONE'S LIFE. How to save money on your insurance?
5 INSURANCE POLICIES EVERYONE SHOULD HAVE, AND
15 INSURANCE POLICIES YOU MAY NOT NEED.
INVESTMENT'S SECRETS REVEALED. THE ABC's OF
INVESTMENTS, Ways to Save. THE TRIANGLE OF SUCCESS!
LEARN MORE...
Identity Theft: Consumer Reports' advice on steps you can take
to protect your identity and what to do if you believe it's already
been compromised...
HUD HOMES: GOVERNMENT HOMES AND FORECLOSURE
PROPERTIES ARE AVAILABLE BELOW MARKET VALUE!
Title Insurance, what is it? And what is for? Cloud on title, what
does that really mean? And what are the benefits of using a
Real Estate Attorney. ---
REO'S -- REAL ESTATE OWNED FORECLOSURE. Buying
Bank Owned Properties (REO) --- Investing in Foreclosed Real
Estate for a Higher Return.
INVESTING / INVESTMENTS: METHOD AND TECHNIQUES
TO INVEST IN TODAY'S MARKET FOR A BETTER
TOMORROW
TAX SAVING, TAX HELP, Tax Strategies, Tax Advantage, Tax
Advice For All.
Make Your First $1 Million Dollar?
Real Estate Learning Center: Foreclosure, REO'S, Short Sale,
Pre-construction.
Mortgage Loans Learning Center. Everything about mortgage
home loans
FORTUNE: National Association Of Securities Dealers - NASDD
/ FINRA. LEARN MORE... BEFORE YOU START INVESTING
ANY MONEY: LEARN THIS FIRST!
RICH GUIDE: WHY YOU AREN’T RICH? BUILDING
FINANCIAL WEALTH, OBTAIN FINANCIAL FREEDOM,
BECOME A RICH PERSON; YES YOU CAN
FREE: Home Value Report... {CMA] Real Estate Appraisal.
FREE SERVICE
Housing Finance Authority of Miami dade, Monroe, Broward,
and Palm Beach County. State & Federal Homebuyer's
Programs.
FREE FINANCIAL ADVICE. WAYS TO SAVE MONEY, TO
MAKE MONEY, AND GET OUT OF DEBT!
GOVERNMENTS GENERAL INFORMATION CENTER: MIAMI
DADE, BROWARD, MONROE, PALM BEACH COUNTY
COUNT. STATE OF FLORIDA AND THE U.S. FEDERAL
GOVERNMENT.
FREE-CREDIT REPORT: Get a Free Credit Report From all 3
Credit Bureaus
INSURANCE 101: THE IMPORTANCE OF INSURANCE IN
SOMEONE'S LIFE. How to save money on your insurance?
5 INSURANCE POLICIES EVERYONE SHOULD HAVE, AND
15 INSURANCE POLICIES YOU MAY NOT NEED.
INVESTMENT'S SECRETS REVEALED. THE ABC's OF
INVESTMENTS, Ways to Save. THE TRIANGLE OF SUCCESS!
LEARN MORE...
Identity Theft: Consumer Reports' advice on steps you can take
to protect your identity and what to do if you believe it's already
been compromised...
HUD HOMES: GOVERNMENT HOMES AND FORECLOSURE
PROPERTIES ARE AVAILABLE BELOW MARKET VALUE!
Title Insurance, what is it? And what is for? Cloud on title, what
does that really mean? And what are the benefits of using a
Real Estate Attorney. ---
REO'S -- REAL ESTATE OWNED FORECLOSURE. Buying
Bank Owned Properties (REO) --- Investing in Foreclosed Real
Estate for a Higher Return.
INVESTING / INVESTMENTS: METHOD AND TECHNIQUES
TO INVEST IN TODAY'S MARKET FOR A BETTER
TOMORROW
TAX SAVING, TAX HELP, Tax Strategies, Tax Advantage, Tax
Advice For All.
REAL ESTATE FREE SERVICE: Real Estate is a road-map to
riches, it’s one of the best way to build wealth. Search For, & Buy
Property in Any City; Anywhere. Click Here...
FREE SERVICE: Real Estate Assistance Program For Home-Buyers
& sellers. FREE MONEY: EARN CASH BACK UP TO $2,500.00.
LEARN MORE HERE!...
REAL ESTATE GENERAL INFORMATION CENTER: Money-Making
Information You'll Need to Succeed in Real Estate...
Mortgage Loans Learning Center: Everything About Mortgage
Home Loans. What You Need to Know Before & After Taking a
Mortgage Loan..
FREE Home Value Report, {CMA - Home Appraisal} What is the
value of your home? Find-out Now.. IT'S FREE.
HOME-BUYERS FREE SERVICE: Before you buy it, you must know
how much it worths. What's the exact or approximate value of it?
FIND-OUT NOW!..
HOME INSPECTION: How to use home inspection reports report to
negotiate sale price? How to Identify a Qualified and Reliable
Home Inspector? How to Interpret Home Inspection Reports?
FREE HOME ADVERTISEMENT FOR {FSBO}: For Sale By Owner;
Let us put your property on the market For Sale. IT'S FREE -- Your
listing will be available to thousands of buyers & investors...
REAL ESTATE WANTED: Private Investors Want Commercial
Properties. Will Look at all income producing properties.
CONTACT US...
riches, it’s one of the best way to build wealth. Search For, & Buy
Property in Any City; Anywhere. Click Here...
FREE SERVICE: Real Estate Assistance Program For Home-Buyers
& sellers. FREE MONEY: EARN CASH BACK UP TO $2,500.00.
LEARN MORE HERE!...
REAL ESTATE GENERAL INFORMATION CENTER: Money-Making
Information You'll Need to Succeed in Real Estate...
Mortgage Loans Learning Center: Everything About Mortgage
Home Loans. What You Need to Know Before & After Taking a
Mortgage Loan..
FREE Home Value Report, {CMA - Home Appraisal} What is the
value of your home? Find-out Now.. IT'S FREE.
HOME-BUYERS FREE SERVICE: Before you buy it, you must know
how much it worths. What's the exact or approximate value of it?
FIND-OUT NOW!..
HOME INSPECTION: How to use home inspection reports report to
negotiate sale price? How to Identify a Qualified and Reliable
Home Inspector? How to Interpret Home Inspection Reports?
FREE HOME ADVERTISEMENT FOR {FSBO}: For Sale By Owner;
Let us put your property on the market For Sale. IT'S FREE -- Your
listing will be available to thousands of buyers & investors...
REAL ESTATE WANTED: Private Investors Want Commercial
Properties. Will Look at all income producing properties.
CONTACT US...
AMERICA'S WAY OF LIFE: UNITED STATES Government Most
Important Websites to know About!...
UNITED STATES CONSTITUTION: "CHARTERS OF FREEDOM"
Unknowm Information to learn about!...
GOVERNMENT INFORMATION CENTER: Federal. State, Counties &
Cities...
FREE CREDIT REPORT: Get a Free Credit Report From all 3 Credit
Bureaus
Banking & Finance: The more you know the closer you are to
accomplish great success. Business, Financial, Commercial News
& Commentary...
FREE FINANCIAL ADVICE: WAYS TO SAVE MONEY, TO MAKE
MONEY, AND GET OUT OF DEBT
FREE CREDIT HELP, CREDIT INFO: SAVE YOUR CREDIT, RESCUE
IT, FIX IT, PROTECT IT, INCREASE YOUR SCORE...
INSURANCE 101: How to save money on your insurance?
5 INSURANCE POLICIES EVERYONE SHOULD HAVE, AND 15
INSURANCE POLICIES YOU MAY NOT NEED.
FORTUNE: National Association Of Securities Dealers -{ NASDD /
FINRA}. BEFORE YOU START INVESTING ANY MONEY; LEARN THIS
FIRST!...
FREE SERVICE, LICENSING HELP: Make a Professional License,
Renew a License, Check Status of a License, Register a Business...
A Florida Real Estate Investment company is looking for:
Foreclosure Properties to buy. CASH OR TERMS. CONTACT US...
Important Websites to know About!...
UNITED STATES CONSTITUTION: "CHARTERS OF FREEDOM"
Unknowm Information to learn about!...
GOVERNMENT INFORMATION CENTER: Federal. State, Counties &
Cities...
FREE CREDIT REPORT: Get a Free Credit Report From all 3 Credit
Bureaus
Banking & Finance: The more you know the closer you are to
accomplish great success. Business, Financial, Commercial News
& Commentary...
FREE FINANCIAL ADVICE: WAYS TO SAVE MONEY, TO MAKE
MONEY, AND GET OUT OF DEBT
FREE CREDIT HELP, CREDIT INFO: SAVE YOUR CREDIT, RESCUE
IT, FIX IT, PROTECT IT, INCREASE YOUR SCORE...
INSURANCE 101: How to save money on your insurance?
5 INSURANCE POLICIES EVERYONE SHOULD HAVE, AND 15
INSURANCE POLICIES YOU MAY NOT NEED.
FORTUNE: National Association Of Securities Dealers -{ NASDD /
FINRA}. BEFORE YOU START INVESTING ANY MONEY; LEARN THIS
FIRST!...
FREE SERVICE, LICENSING HELP: Make a Professional License,
Renew a License, Check Status of a License, Register a Business...
A Florida Real Estate Investment company is looking for:
Foreclosure Properties to buy. CASH OR TERMS. CONTACT US...
C-CORPORATION vs S-CORPORATION vs LLC
DIFFERENCE BETWEEN S-CORPORATION &
LLC
While the S corporation's special tax status
eliminates double taxation, it lacks the flexibility of
an LLC in allocating income to the owners. An
LLC may offer several classes of membership
interests while an ‘S’ corporation may only have
one class of stock.
Any number of individuals or entities may own
interests in an LLC. However, ownership interest
in an ‘S’ corporation is limited to no more than
100 shareholders. Also, ‘S’ corporations cannot
be owned by ‘C’ corporations, other S
corporations, many trusts, LLCs, partnerships, or
nonresident aliens. Also, LLCs are allowed to
have subsidiaries without restriction.
DIFFERENCE BETWEEN CORPORATION & LLC
There are many important differences between
the corporation and LLC. The entities are taxed
differently. An LLC is a pass-through tax entity.
This means that the income to the entity is not
taxed at the entity level; however, the entity does
complete a tax return. The income or loss as
shown on this return is "passed through" the
business entity to the individual shareholders or
interest holders, and is reported on their
individual tax returns.
With a standard corporation, the corporation is a
separately taxable entity. Corporations are treated
as a separate legal taxable entity for income tax
purposes. Therefore, corporations pay tax on their
earnings. If corporate earnings are distributed to
shareholders in the form of dividends, the
corporation does not receive the reasonable
business expense deduction, and dividend
income is taxed as regular income to the
shareholders.
LLC's are less rigid in their structure than
corporations, so you have more flexibility in
adapting the LLC to your unique business. The
Operating Agreement of a LLC can be structured
in a limitless amount of ways.
Formality : A corporation is a formal entity with
officers and directors (at least one of each)
required. A LLC, on the other hand, can be
"member managed" and run in a less formal
way. For small, start-up businesses, less
formality means you can focus on making money
rather than administrative work.
DIFFERENCE BETWEEN S-CORPORATION & C-
CORPORATION
All corporations start as "C" corporations and are
required to pay income tax on taxable income
generated by the corporation. A C corporation
becomes a S corporation by completing and filing
federal form 2553 with the IRS. An S corporation's
net income or loss is "passed-through" to the
shareholders and are included in their personal
tax returns. Because income is NOT taxed at the
corporate level, there is no double taxation as
with C corporations. Subchapter S corporations,
as they are also called, are restricted to having no
more than 100 shareholders.
DIFFERENCE BETWEEN S-CORPORATION &
LLC
While the S corporation's special tax status
eliminates double taxation, it lacks the flexibility of
an LLC in allocating income to the owners. An
LLC may offer several classes of membership
interests while an ‘S’ corporation may only have
one class of stock.
Any number of individuals or entities may own
interests in an LLC. However, ownership interest
in an ‘S’ corporation is limited to no more than
100 shareholders. Also, ‘S’ corporations cannot
be owned by ‘C’ corporations, other S
corporations, many trusts, LLCs, partnerships, or
nonresident aliens. Also, LLCs are allowed to
have subsidiaries without restriction.
DIFFERENCE BETWEEN CORPORATION & LLC
There are many important differences between
the corporation and LLC. The entities are taxed
differently. An LLC is a pass-through tax entity.
This means that the income to the entity is not
taxed at the entity level; however, the entity does
complete a tax return. The income or loss as
shown on this return is "passed through" the
business entity to the individual shareholders or
interest holders, and is reported on their
individual tax returns.
With a standard corporation, the corporation is a
separately taxable entity. Corporations are treated
as a separate legal taxable entity for income tax
purposes. Therefore, corporations pay tax on their
earnings. If corporate earnings are distributed to
shareholders in the form of dividends, the
corporation does not receive the reasonable
business expense deduction, and dividend
income is taxed as regular income to the
shareholders.
LLC's are less rigid in their structure than
corporations, so you have more flexibility in
adapting the LLC to your unique business. The
Operating Agreement of a LLC can be structured
in a limitless amount of ways.
Formality : A corporation is a formal entity with
officers and directors (at least one of each)
required. A LLC, on the other hand, can be
"member managed" and run in a less formal
way. For small, start-up businesses, less
formality means you can focus on making money
rather than administrative work.
DIFFERENCE BETWEEN S-CORPORATION & C-
CORPORATION
All corporations start as "C" corporations and are
required to pay income tax on taxable income
generated by the corporation. A C corporation
becomes a S corporation by completing and filing
federal form 2553 with the IRS. An S corporation's
net income or loss is "passed-through" to the
shareholders and are included in their personal
tax returns. Because income is NOT taxed at the
corporate level, there is no double taxation as
with C corporations. Subchapter S corporations,
as they are also called, are restricted to having no
more than 100 shareholders.
10 Steps to Starting a Business Starting a business involves making key
financial decisions and completing a series of legal activities. This guide
provides information to help you plan, prepare, and manage your business.
Step 1:
Research and Plan Your Business
Use these tools and resources to help you prepare your business plan and
become a successful business owner.
Step 2:
Get Business Assistance and Training
Take advantage of free training and counseling services, from preparing a
business plan to getting financing, and help expanding and relocating a
business.
Step 3:
Choose a Business Location
Get advice about choosing a customer-friendly location and complying with
zoning laws.
Step 4:
Finance Your Business
Find government backed loans, venture capital and research grants to help
you get started.
Step 5:
Determine the Legal Structure of Your Business
Decide whether you are going to form a sole proprietorship, partnership, LLC,
corporation, non-profit or cooperative.
Step 6:
Register a Business Name ("Doing Business As")
Register your business name with your state government.
Step 7:
Get a Tax Identification Number
Learn which tax identification number you'll need to obtain from the IRS and
your state revenue agency.
Step 8:
Register for State and Local Taxes
Register with your state to obtain a tax identification number, workers'
compensation, unemployment and disability insurance.
Step 9:
Obtain Business Licenses and Permits
Get a list of federal, state and local licenses and permits required for your
business.
Step 10:
Employer Responsibilities
Learn the legal steps you need to take to hire employees.
financial decisions and completing a series of legal activities. This guide
provides information to help you plan, prepare, and manage your business.
Step 1:
Research and Plan Your Business
Use these tools and resources to help you prepare your business plan and
become a successful business owner.
Step 2:
Get Business Assistance and Training
Take advantage of free training and counseling services, from preparing a
business plan to getting financing, and help expanding and relocating a
business.
Step 3:
Choose a Business Location
Get advice about choosing a customer-friendly location and complying with
zoning laws.
Step 4:
Finance Your Business
Find government backed loans, venture capital and research grants to help
you get started.
Step 5:
Determine the Legal Structure of Your Business
Decide whether you are going to form a sole proprietorship, partnership, LLC,
corporation, non-profit or cooperative.
Step 6:
Register a Business Name ("Doing Business As")
Register your business name with your state government.
Step 7:
Get a Tax Identification Number
Learn which tax identification number you'll need to obtain from the IRS and
your state revenue agency.
Step 8:
Register for State and Local Taxes
Register with your state to obtain a tax identification number, workers'
compensation, unemployment and disability insurance.
Step 9:
Obtain Business Licenses and Permits
Get a list of federal, state and local licenses and permits required for your
business.
Step 10:
Employer Responsibilities
Learn the legal steps you need to take to hire employees.
Top Ten Tips For Success
Posted by ANTONY
Professional Investor
Realtor
Mortgage Broker
One of the requests I receive the most is for a list of the
top ten tips for success. Here’s a list that addresses
students as well as professionals:
Be focused. Put everything you’ve got into what you do
every day.
Believe in yourself. If you don’t, no one else will.
Be tenacious.
Trust your instincts.
Maintain your momentum and keep everyone moving
forward
See yourself as victorious and leading a winning team.
Be passionate about what you do.
Live on the edge. Do not become complacent.
Leadership is not a group effort. If you’re in charge, then
be in charge.
Never give up!
Wealth Creation:
Learn How the Millionaires Do It
Posted by ANTONY
Professional Investor
Realtor
Mortgage Broker
One of the requests I receive the most is for a list of the
top ten tips for success. Here’s a list that addresses
students as well as professionals:
Be focused. Put everything you’ve got into what you do
every day.
Believe in yourself. If you don’t, no one else will.
Be tenacious.
Trust your instincts.
Maintain your momentum and keep everyone moving
forward
See yourself as victorious and leading a winning team.
Be passionate about what you do.
Live on the edge. Do not become complacent.
Leadership is not a group effort. If you’re in charge, then
be in charge.
Never give up!
Wealth Creation:
Learn How the Millionaires Do It
CAREER OPPORTUNITY FOR ALL.
HELP TO ESTABLISH YOUR OWN BUSINESS, OR
START WORKING IMMEDIATELY WITH ONE OF THE
GREATEST
FINANCIAL SERVICES COMPANY IN THE WORLD?
FREE SCHOOL, FREE TRAINING, FREE LICENSE
FREE FINGERPRINT, FREE BOOKS FOR THOSE WHO
LIVE IN
MIAMI DADE AND BROWARD COUNTY FLORIDA
VISIT:
http://www.knowledgefinancial.com/financialsolution.html
-----------------------------------------------------
Life Insurance with a certified,
licensed and experienced Agent. CALL THE AGENT AT:
786-709-6577
It makes good sense to have us as
your Insurance Agent to help you!
CALL THE AGENT AT: 786-709-6577 -- VISIT:
www.knowledgefinancial.com/LIFE-INSURANCE
I Will Provide You With High Quality Life Insurance
I Offer You My Clients; Integrity, Safety and Stability.
A commitment to Fairness and Honesty. Exceptional
Personal Service!
ANTONY JEANTY
Phone- 786-709-6577
Licensed Real Estate Agent
Licensed Mortgage Broker
Licensed Insurance Agent
MIAMI DADE, BROWARD, PALM BEACH, PORT SAINT
LUCIE, ORANGE COUNTY AREA.
CALL THE AGENT AT: 786-709-6577
www.knowledgefinancial.com
HELP TO ESTABLISH YOUR OWN BUSINESS, OR
START WORKING IMMEDIATELY WITH ONE OF THE
GREATEST
FINANCIAL SERVICES COMPANY IN THE WORLD?
FREE SCHOOL, FREE TRAINING, FREE LICENSE
FREE FINGERPRINT, FREE BOOKS FOR THOSE WHO
LIVE IN
MIAMI DADE AND BROWARD COUNTY FLORIDA
VISIT:
http://www.knowledgefinancial.com/financialsolution.html
-----------------------------------------------------
Life Insurance with a certified,
licensed and experienced Agent. CALL THE AGENT AT:
786-709-6577
It makes good sense to have us as
your Insurance Agent to help you!
CALL THE AGENT AT: 786-709-6577 -- VISIT:
www.knowledgefinancial.com/LIFE-INSURANCE
I Will Provide You With High Quality Life Insurance
I Offer You My Clients; Integrity, Safety and Stability.
A commitment to Fairness and Honesty. Exceptional
Personal Service!
ANTONY JEANTY
Phone- 786-709-6577
Licensed Real Estate Agent
Licensed Mortgage Broker
Licensed Insurance Agent
MIAMI DADE, BROWARD, PALM BEACH, PORT SAINT
LUCIE, ORANGE COUNTY AREA.
CALL THE AGENT AT: 786-709-6577
www.knowledgefinancial.com
China stretches the imagination with world's longest sea
bridgeBarely 18-months after completing current record-
holder, work begins on link between mainland, Macau
and Hong Kong
"It is designed with a service life of 120 years. It can
withstand the impact of a strong wind with a speed of 51
meters a second, or equal to a maximum Beaufort scale
16 (184 to 201kmph)," said Zhu Yongling, an official in
charge of the project construction. "It can also resist the
impact of a magnitude-8 earthquake and a 300,000-
tonne vessel."
Much of the bridge will be fabricated offsite and will be
designed to withstand wind speeds of up to 201kmph
(125mph)
China today announced it had begun construction of the
world's longest sea bridge – barely 18 months after
opening the current record-holder.
The Y-shaped link between Hong Kong, Macau and
China will be around 50km (31 miles) long in total, 35km
of which will span the sea, said the state news agency
Xinhua. Due to be completed by 2015, the 73bn yuan
(£6.75bn) cost of the bridge will be shared by the
authorities in the three territories.
bridgeBarely 18-months after completing current record-
holder, work begins on link between mainland, Macau
and Hong Kong
"It is designed with a service life of 120 years. It can
withstand the impact of a strong wind with a speed of 51
meters a second, or equal to a maximum Beaufort scale
16 (184 to 201kmph)," said Zhu Yongling, an official in
charge of the project construction. "It can also resist the
impact of a magnitude-8 earthquake and a 300,000-
tonne vessel."
Much of the bridge will be fabricated offsite and will be
designed to withstand wind speeds of up to 201kmph
(125mph)
China today announced it had begun construction of the
world's longest sea bridge – barely 18 months after
opening the current record-holder.
The Y-shaped link between Hong Kong, Macau and
China will be around 50km (31 miles) long in total, 35km
of which will span the sea, said the state news agency
Xinhua. Due to be completed by 2015, the 73bn yuan
(£6.75bn) cost of the bridge will be shared by the
authorities in the three territories.
Secrets of Self-Made Millionaires
They’re just like you. But with lots of money.
When you think “millionaire,” what image comes to mind? For
many of us, it’s a flashy Wall Street banker type who flies a private
jet, collects cars and lives the kind of decadent lifestyle that would
make Donald Trump proud.
But many modern millionaires live in middle-class
neighborhoods, work full-time and shop in discount stores like the
rest of us.
What motivates them isn’t material possessions but the choices
that money can bring: “For the rich, it’s not about getting more
stuff. It’s about having the freedom to make almost any decision
you want,” says Tnthony. Wealth means you can send your child
to any school or quit a job you don’t like.
According to the Spectrem Wealth Study, an annual survey of
America’s wealthy, there are more people living the good life than
ever before—the number of millionaires nearly doubled in the last
decade. And the rich are getting richer.
If more people are getting richer than ever, why shouldn’t you be
one of them? You need to Set your sights on where you’re going.
Wanting to be wealthy is a crucial first step. Says Anthony, “The
biggest obstacle to wealth is fear. People are afraid to think big,
but if you think small, you’ll only achieve small things.” You must
Educate yourself financially.
''Saving'' Isn't there an old saying "A dollar saved is a dollar
earned" or something similiar?
Nothing is important then about making money, but saving money
is the most important thing to become rich.
Becoming wealthy, It's not about how much you make; it is about
how much you save, how much you invest. 'Purely Simple'
Ask for discounts and special offers on everything. Think about
how you can save on cable, phone bills, clothes, restaurants, or
any work-related deals. Negotiate from the heart. Come from a
place of authenticity and ask sincerely. You will be amazed at what
you can receive.
Take a look at your beliefs and emotions around money. Most of
us picked these up from our parents. One of them was probably
fearful or always worried. Maybe one of them over-spent or was in
debt. Think about it. You are now an adult and don’t have to be
loyal to their beliefs around money. If you do feel anxious about
money, take a deep breath and ask yourself: “Where have I seen
this before?” Commit to making a fresh start.
Look around for things you own that you can sell. Your junk is
worth something to someone else. You have thousands of dollars
hidden in things you don’t really want or use anymore. Yes, this
takes a bit of time but the payoff in terms of money, less clutter
and freeing up space for something new to come into your life is
well worth it.
Be grateful for what you do have. We have so much more than
95% of the planet. Bless what you have. Find ways of giving. If it's
not money, give your time and your heart. The more you give, the
more life finds ways to give back.
Review your statements. Get a feel for what you are spending.
Where is your money really going? You may often find some
errors and double charges. Look at hidden fees from all the bills
you pay.
Confirm that some of your regular income is going to a savings
account on a monthly basis. If you have an investment account,
take a close look at what you have: stocks, funds, bonds, cash,
gold.
Know what you have and then ask yourself how it feels. You don’t
need to have a finance background to know whether your money
situation is letting you sleep at night.
Review your statements. Get a feel for what you are spending.
Where is your money really going? You may often find some
errors and double charges. Look at hidden fees from all the bills
you pay.
Confirm that some of your regular income is going to a savings
account on a monthly basis. If you have an investment account,
take a close look at what you have: stocks, funds, bonds, cash,
gold. Know what you have and then ask yourself how it feels.
You don’t need to have a finance background to know whether
your money situation is letting you sleep at night.
They’re just like you. But with lots of money.
When you think “millionaire,” what image comes to mind? For
many of us, it’s a flashy Wall Street banker type who flies a private
jet, collects cars and lives the kind of decadent lifestyle that would
make Donald Trump proud.
But many modern millionaires live in middle-class
neighborhoods, work full-time and shop in discount stores like the
rest of us.
What motivates them isn’t material possessions but the choices
that money can bring: “For the rich, it’s not about getting more
stuff. It’s about having the freedom to make almost any decision
you want,” says Tnthony. Wealth means you can send your child
to any school or quit a job you don’t like.
According to the Spectrem Wealth Study, an annual survey of
America’s wealthy, there are more people living the good life than
ever before—the number of millionaires nearly doubled in the last
decade. And the rich are getting richer.
If more people are getting richer than ever, why shouldn’t you be
one of them? You need to Set your sights on where you’re going.
Wanting to be wealthy is a crucial first step. Says Anthony, “The
biggest obstacle to wealth is fear. People are afraid to think big,
but if you think small, you’ll only achieve small things.” You must
Educate yourself financially.
''Saving'' Isn't there an old saying "A dollar saved is a dollar
earned" or something similiar?
Nothing is important then about making money, but saving money
is the most important thing to become rich.
Becoming wealthy, It's not about how much you make; it is about
how much you save, how much you invest. 'Purely Simple'
Ask for discounts and special offers on everything. Think about
how you can save on cable, phone bills, clothes, restaurants, or
any work-related deals. Negotiate from the heart. Come from a
place of authenticity and ask sincerely. You will be amazed at what
you can receive.
Take a look at your beliefs and emotions around money. Most of
us picked these up from our parents. One of them was probably
fearful or always worried. Maybe one of them over-spent or was in
debt. Think about it. You are now an adult and don’t have to be
loyal to their beliefs around money. If you do feel anxious about
money, take a deep breath and ask yourself: “Where have I seen
this before?” Commit to making a fresh start.
Look around for things you own that you can sell. Your junk is
worth something to someone else. You have thousands of dollars
hidden in things you don’t really want or use anymore. Yes, this
takes a bit of time but the payoff in terms of money, less clutter
and freeing up space for something new to come into your life is
well worth it.
Be grateful for what you do have. We have so much more than
95% of the planet. Bless what you have. Find ways of giving. If it's
not money, give your time and your heart. The more you give, the
more life finds ways to give back.
Review your statements. Get a feel for what you are spending.
Where is your money really going? You may often find some
errors and double charges. Look at hidden fees from all the bills
you pay.
Confirm that some of your regular income is going to a savings
account on a monthly basis. If you have an investment account,
take a close look at what you have: stocks, funds, bonds, cash,
gold.
Know what you have and then ask yourself how it feels. You don’t
need to have a finance background to know whether your money
situation is letting you sleep at night.
Review your statements. Get a feel for what you are spending.
Where is your money really going? You may often find some
errors and double charges. Look at hidden fees from all the bills
you pay.
Confirm that some of your regular income is going to a savings
account on a monthly basis. If you have an investment account,
take a close look at what you have: stocks, funds, bonds, cash,
gold. Know what you have and then ask yourself how it feels.
You don’t need to have a finance background to know whether
your money situation is letting you sleep at night.
More Things Your Hotel Desk Clerk Won’t Tell You
1. Most of us are happy to help if you want us to tell callers you’re
not registered at the hotel, or if you ask us where to park so you
can’t see your car from the interstate. But we’re also talking
behind your back about what you might be hiding.
2. Always request clean linens when you check in. We wash the
sheets every day, but blankets often only get washed once a
week. And the bedspreads? If there’s no visible stain, it’s maybe
once a month.
3. In this economy, everything is negotiable. If your hotel offers a
hot breakfast buffet as well as a free continental breakfast, ask
if you can get the hot breakfast with your room. Very rarely will
we tell you no.
4. If you travel frequently, use the same hotel each time and get
to know the staff. Regulars are recognized and treated as VIPs.
You could get free upgrades, discounts, and more.
5. Unless you want to pay $10 for a 5-minute call, never use the
long distance. In fact, it’s best to specifically ask for it to be
turned off. We’ve had situations in which housekeepers have
made calls from a guest’s phone.
6. No matter how confident the reservations agent sounds, if you
request a king bed, there’s no guarantee. Call the hotel directly
and make the request again a few days before you travel. Then
do it again on the day of. If we still don’t have one when you get
there and you’re nice about it, we may comp your breakfast or
upgrade you to a suite.
7. Don’t act like you own the place. Our policy is to automatically
upgrade people if we’ve got the space – but I’m not going to do it
if you’re snarky.
8. It seems to have gone out of fashion to tip your housekeeper.
Most are paid minimum wage with the expectation of tips. Take
care of them and they’ll take care of you.
1. Most of us are happy to help if you want us to tell callers you’re
not registered at the hotel, or if you ask us where to park so you
can’t see your car from the interstate. But we’re also talking
behind your back about what you might be hiding.
2. Always request clean linens when you check in. We wash the
sheets every day, but blankets often only get washed once a
week. And the bedspreads? If there’s no visible stain, it’s maybe
once a month.
3. In this economy, everything is negotiable. If your hotel offers a
hot breakfast buffet as well as a free continental breakfast, ask
if you can get the hot breakfast with your room. Very rarely will
we tell you no.
4. If you travel frequently, use the same hotel each time and get
to know the staff. Regulars are recognized and treated as VIPs.
You could get free upgrades, discounts, and more.
5. Unless you want to pay $10 for a 5-minute call, never use the
long distance. In fact, it’s best to specifically ask for it to be
turned off. We’ve had situations in which housekeepers have
made calls from a guest’s phone.
6. No matter how confident the reservations agent sounds, if you
request a king bed, there’s no guarantee. Call the hotel directly
and make the request again a few days before you travel. Then
do it again on the day of. If we still don’t have one when you get
there and you’re nice about it, we may comp your breakfast or
upgrade you to a suite.
7. Don’t act like you own the place. Our policy is to automatically
upgrade people if we’ve got the space – but I’m not going to do it
if you’re snarky.
8. It seems to have gone out of fashion to tip your housekeeper.
Most are paid minimum wage with the expectation of tips. Take
care of them and they’ll take care of you.
SUCCESS, SUCCESS, SUCCESS!
SUCCESS- SUCCESS
In order to succeed, your desire for success should be greater than your fear of failure.
The Road to Success is not Straight.
There is a Barricade Called Fear,
There is a curve called Failure,
There is a loop called Confusion,
There are Speed Bumps called Friends,
There are Red Lights called Enemies,
Caution Lights called Family.
Job called Job Over-broke.
But, if you have a spare called Determination, an Engine called Perseverance, Insurance
called Faith, a Guide called take action, a driver called God, Surely You Will Make it to a
Place Called Success.
ANTONY
KNOWLEDGEFINANCIAL.COM
SUCCESS- SUCCESS
In order to succeed, your desire for success should be greater than your fear of failure.
The Road to Success is not Straight.
There is a Barricade Called Fear,
There is a curve called Failure,
There is a loop called Confusion,
There are Speed Bumps called Friends,
There are Red Lights called Enemies,
Caution Lights called Family.
Job called Job Over-broke.
But, if you have a spare called Determination, an Engine called Perseverance, Insurance
called Faith, a Guide called take action, a driver called God, Surely You Will Make it to a
Place Called Success.
ANTONY
KNOWLEDGEFINANCIAL.COM
''- Florida Agent Licensing (Florida Agent &
Licensing / Florida's Department of Financial
Services- Insurance professionals --
''Florida Office of Financial Regulation ''
Florida Office of Financial Regulation
''Division of Financial Institutions -- Florida
will begin participation on the Nationwide
Mortgage Licensing System Flofr for
mortgage brokers -- returning user, or new
user...
'' FLHSMV-- Florida Highway Safety and Motor
Vehicles.-- License and motor vehicles
general information-- Driver License Check''.
''Florida Consumer Information center-- The
Florida Government Information Locator
Service--
'' Florida fishing and wildlife commission--
''Miami-Dade Public Housing Agency ...
''U.S. Department of Housing and Urban
Development (HUD)
Agencies located in FLORIDA. --
''Miami-Dade County, Florida Free Public
Records Directory--
''Homeownership Assistance: Florida--
''HUD Approved Housing Counseling
Agencies-- Florida HCA HOUSING
COUNSELING AGENCIES--
'' Insurance Information Institute: improving
public understanding of insurance—
Insurance Hot and Important Topics--
'' The Fifty States Information Center /
Infoplease--
'' Find Colleges and Universities in the entire
U.S. 50 STATES information center--
'' 50 States Business School Degree
Programs - Online and Campus--
'' 50 States Nursing Schools Programs---
Licensing / Florida's Department of Financial
Services- Insurance professionals --
''Florida Office of Financial Regulation ''
Florida Office of Financial Regulation
''Division of Financial Institutions -- Florida
will begin participation on the Nationwide
Mortgage Licensing System Flofr for
mortgage brokers -- returning user, or new
user...
'' FLHSMV-- Florida Highway Safety and Motor
Vehicles.-- License and motor vehicles
general information-- Driver License Check''.
''Florida Consumer Information center-- The
Florida Government Information Locator
Service--
'' Florida fishing and wildlife commission--
''Miami-Dade Public Housing Agency ...
''U.S. Department of Housing and Urban
Development (HUD)
Agencies located in FLORIDA. --
''Miami-Dade County, Florida Free Public
Records Directory--
''Homeownership Assistance: Florida--
''HUD Approved Housing Counseling
Agencies-- Florida HCA HOUSING
COUNSELING AGENCIES--
'' Insurance Information Institute: improving
public understanding of insurance—
Insurance Hot and Important Topics--
'' The Fifty States Information Center /
Infoplease--
'' Find Colleges and Universities in the entire
U.S. 50 STATES information center--
'' 50 States Business School Degree
Programs - Online and Campus--
'' 50 States Nursing Schools Programs---
ATTENTION, ATTENTION!
IMPORTANT INFORMATION ABOUT THE
UNITED STATES FIVE [5] BIGGEST
FINANCIAL INSTITUTIONS...
,,Federal Housing Administration {FHA}
Mortgage Loan Programs Information
Center. --- Government's general
Information; Local, State, and
Federal.--
Bank of America Financial Services
Wells Fargo Financial Services
PNC-National City Mortgage Financial
Services
Citibank,Citifinancial, Citimortgage,
Citigroup
JPMorgan-Chase Financial Services
How & where to find money to invest in
real estate? & How to make the Bank
say, "Yes You're Approved"
TYPE OF MORTGAGES: --WHAT
GUIDELINES ARE REQUIRED FOR A
MORTGAGE LOAN?
Learn here the most effective ways to
get the best loan rates, and the best
terms
IMPORTANT INFORMATION ABOUT THE
UNITED STATES FIVE [5] BIGGEST
FINANCIAL INSTITUTIONS...
,,Federal Housing Administration {FHA}
Mortgage Loan Programs Information
Center. --- Government's general
Information; Local, State, and
Federal.--
Bank of America Financial Services
Wells Fargo Financial Services
PNC-National City Mortgage Financial
Services
Citibank,Citifinancial, Citimortgage,
Citigroup
JPMorgan-Chase Financial Services
How & where to find money to invest in
real estate? & How to make the Bank
say, "Yes You're Approved"
TYPE OF MORTGAGES: --WHAT
GUIDELINES ARE REQUIRED FOR A
MORTGAGE LOAN?
Learn here the most effective ways to
get the best loan rates, and the best
terms
Real Estate Contract Contingencies: // Home Buying
Purchase Contract Contingencies.
---knowledgefinancial.com
Long time ago, agents used to call contingencies weasel clauses. That's
because a contingency would let buyers weasel out of a contract. That is, to
cancel a contract without penalty, meaning buyers would get back an earnest
money deposit upon cancellation.
The types of contingencies vary from state to state. Your state might make a
big deal out of a septic inspection, for example, because it could cost many
thousands of dollars to replace a faulty septic system. But many contingencies
are common to every state.
//-- Real Estate Assistance Program For Home-Buyers & sellers
FREE MONEY: EARN CASH BACK; BUYERS AND SELLERS YOU CAN PUT MONEY
BACK IN YOUR POCKET... Earn a cash back bonus. CLICK HERE...
When you buy or sell a home through Real Estate Assistance Program With us
... GET BACK UP TO $2,500.00
CLICK HERE TO SEE --- the best products FOR LESS PRICE, from the world
most prestigious companies.
Real Estate Investment,
Home-Buying Guide,
Home-Selling Guide,
Mortgage Loan Modification to Avoid Foreclosure,
Home Refinancing Since Interest Rate has Dropped to the bottom low, Real
Estate Financing
No Matter what you heard from the news you still can purchase, Begin buying
process with Mortgage Loane Pre-Qualification.
IF YOU NEED HELP TO BUY OR TO SELL A PROPERTY IN SOUTH FLORIDA ; LET A
PROFESSIONAL LICENSED REALTOR & LICENSED MORTGAGE BROKER ASSIST
YOU.
SOUTH FL. CONTACT Mr. ANTONY AT: 786- 709-6577
Real Estate Assistance Program For Home-Buyers & sellers
FREE MONEY: EARN CASH BACK; BUYERS AND SELLERS YOU CAN PUT MONEY
BACK IN YOUR POCKET...
Earn a cash back bonus. CLICK HERE...
When you buy or sell a home through Real Estate Assistance Program With us
... GET BACK UP TO $2,500.00
----------------------------------------------------------------------------------------------------------------
Mortgage Loans Information Center ...
Real Estate general Information Center ...
FORECLOSURE SOLUTION! STOP IT NOW. SAVE YOUR EQUITY, SAVE YOUR CREDIT, AND
PUT MONEY BACK IN YOUR POCKET. ----
FORECLOSURE ALTERNATIVES: TIPS TO AVOID THIS NIGHTMARE . ..
FORECLOSURE INVESTMENTS: IT'S A GREAT WAY TO INVEST IN REAL ESTATE
AND MAKE BIG PROFITS; GREAT DEALS. BARGAIN, BARGAIN ...
FREE ONLINE AD: COMPLETELY FREE, ABSOLUTELY FREE ADVERTISEMENT ON
THREE DIFFERENT WEBSITES; NO FEES, NO CHARGES, NO COSTS TO YOU. ..
CLICK HERE... [FSBO]
1031 Exchange, Tax Saving Tips for Real Estate Investors and landlords. 1031
Like-Kind Exchanges and Multi-Family Investments: A Very Profitable
Combination!
Real Estate For Sale,
Commercial Real Estate,
Miami Real Estate,
Mobile Home,
Florida Real Estate
Rental Property,
Commercial Real estate Investors: Calculator to use and a variety of
mathematical tools to analyze the performance of their investment
properties... //--
Common Purchase Contract Contingencies
---knowledgefinancial.com
Appraisal.
Buyers who obtain a loan will be required by the lender to pay for an appraisal
to substantiate the purchase price. Sometimes, a low appraisal is received.
Loan Contingency.
Even though a buyer may hold a loan preapproval letter, further investigations
concerning the property or the borrower could result in a loan denial.
Home Inspection.
Buyers have the right to hire a home inspector and conduct a complete
inspection of the home. If buyers issue a Request for Repair, the seller must
receive a copy of the home inspection.
Lead-based Paint.
Federal laws gives all buyers 10 days to inspect for lead-based paint. Many
homes built before 1978 contain lead-based paint.
Wood Destroying Pest Inspection.
---knowledgefinancial.com
The contract should specify who will pay for the pest inspection and whether
outbuildings or garages are covered in the inspection.
Roof Inspection.
Many home inspectors will not walk on a roof due to possibility of damage and
/ or liability if the roof is damaged. Some buyers hire a roofing company to
conduct a roof inspection.
Sewer Inspection.
Sewers can get clogged from tree roots or deteriorate over time. Plumbing
companies can insert a camera into the sewer line to check for damage
during a sewer inspection.
Radon, Mold or Asbestos Inspections.
Depending on a visual inspection, sometimes home inspectors will call for
additional inspections by licensed entities to check for special situations such
as radon gas, mold or asbestos.
Early Occupancy Agreements.
Contracts can be contingent upon the buyer and seller entering into a written
agreement that allows the buyer to rent the property prior to close of escrow.
This is known as early buyer possession.
Private Well Inspections.---knowledgefinancial.com
If the home is not connected to city water -- on a private well, buyers may want
assurance that the water is potable and meets acceptable health standards.
Preliminary Title Report.
Title investigations will disclose easements, CC&Rs, and monetary liens of
record, including the ability of the seller to transfer clean title the buyer. If you
can, always order a title policy.
Homeowner Association Documents.
Buyers should obtain for approval a copy of all homeowner association
documents, including meeting minutes, if applicable.
Seller Statutory Disclosures.
Sellers are required in CA to disclose all known material facts, including
preparing and delivering a Transfer Disclosure Statement (TDS), Natural
Hazard Disclosure Statement, special taxes and statutory supplemental and /
or questionnaire.
Contingent on Selling Existing Home
----knowledgefinancial.com
Buyers who have an existing home might want to buy before selling and make
the contract contingent on selling their home. Sellers who accept contingent
offers like this often give the buyer a certain number of days to perform. If the
buyer cannot perform, the seller retains the option to cancel the contract.
Purchase Contract Contingencies.
---knowledgefinancial.com
Long time ago, agents used to call contingencies weasel clauses. That's
because a contingency would let buyers weasel out of a contract. That is, to
cancel a contract without penalty, meaning buyers would get back an earnest
money deposit upon cancellation.
The types of contingencies vary from state to state. Your state might make a
big deal out of a septic inspection, for example, because it could cost many
thousands of dollars to replace a faulty septic system. But many contingencies
are common to every state.
//-- Real Estate Assistance Program For Home-Buyers & sellers
FREE MONEY: EARN CASH BACK; BUYERS AND SELLERS YOU CAN PUT MONEY
BACK IN YOUR POCKET... Earn a cash back bonus. CLICK HERE...
When you buy or sell a home through Real Estate Assistance Program With us
... GET BACK UP TO $2,500.00
CLICK HERE TO SEE --- the best products FOR LESS PRICE, from the world
most prestigious companies.
Real Estate Investment,
Home-Buying Guide,
Home-Selling Guide,
Mortgage Loan Modification to Avoid Foreclosure,
Home Refinancing Since Interest Rate has Dropped to the bottom low, Real
Estate Financing
No Matter what you heard from the news you still can purchase, Begin buying
process with Mortgage Loane Pre-Qualification.
IF YOU NEED HELP TO BUY OR TO SELL A PROPERTY IN SOUTH FLORIDA ; LET A
PROFESSIONAL LICENSED REALTOR & LICENSED MORTGAGE BROKER ASSIST
YOU.
SOUTH FL. CONTACT Mr. ANTONY AT: 786- 709-6577
Real Estate Assistance Program For Home-Buyers & sellers
FREE MONEY: EARN CASH BACK; BUYERS AND SELLERS YOU CAN PUT MONEY
BACK IN YOUR POCKET...
Earn a cash back bonus. CLICK HERE...
When you buy or sell a home through Real Estate Assistance Program With us
... GET BACK UP TO $2,500.00
----------------------------------------------------------------------------------------------------------------
Mortgage Loans Information Center ...
Real Estate general Information Center ...
FORECLOSURE SOLUTION! STOP IT NOW. SAVE YOUR EQUITY, SAVE YOUR CREDIT, AND
PUT MONEY BACK IN YOUR POCKET. ----
FORECLOSURE ALTERNATIVES: TIPS TO AVOID THIS NIGHTMARE . ..
FORECLOSURE INVESTMENTS: IT'S A GREAT WAY TO INVEST IN REAL ESTATE
AND MAKE BIG PROFITS; GREAT DEALS. BARGAIN, BARGAIN ...
FREE ONLINE AD: COMPLETELY FREE, ABSOLUTELY FREE ADVERTISEMENT ON
THREE DIFFERENT WEBSITES; NO FEES, NO CHARGES, NO COSTS TO YOU. ..
CLICK HERE... [FSBO]
1031 Exchange, Tax Saving Tips for Real Estate Investors and landlords. 1031
Like-Kind Exchanges and Multi-Family Investments: A Very Profitable
Combination!
Real Estate For Sale,
Commercial Real Estate,
Miami Real Estate,
Mobile Home,
Florida Real Estate
Rental Property,
Commercial Real estate Investors: Calculator to use and a variety of
mathematical tools to analyze the performance of their investment
properties... //--
Common Purchase Contract Contingencies
---knowledgefinancial.com
Appraisal.
Buyers who obtain a loan will be required by the lender to pay for an appraisal
to substantiate the purchase price. Sometimes, a low appraisal is received.
Loan Contingency.
Even though a buyer may hold a loan preapproval letter, further investigations
concerning the property or the borrower could result in a loan denial.
Home Inspection.
Buyers have the right to hire a home inspector and conduct a complete
inspection of the home. If buyers issue a Request for Repair, the seller must
receive a copy of the home inspection.
Lead-based Paint.
Federal laws gives all buyers 10 days to inspect for lead-based paint. Many
homes built before 1978 contain lead-based paint.
Wood Destroying Pest Inspection.
---knowledgefinancial.com
The contract should specify who will pay for the pest inspection and whether
outbuildings or garages are covered in the inspection.
Roof Inspection.
Many home inspectors will not walk on a roof due to possibility of damage and
/ or liability if the roof is damaged. Some buyers hire a roofing company to
conduct a roof inspection.
Sewer Inspection.
Sewers can get clogged from tree roots or deteriorate over time. Plumbing
companies can insert a camera into the sewer line to check for damage
during a sewer inspection.
Radon, Mold or Asbestos Inspections.
Depending on a visual inspection, sometimes home inspectors will call for
additional inspections by licensed entities to check for special situations such
as radon gas, mold or asbestos.
Early Occupancy Agreements.
Contracts can be contingent upon the buyer and seller entering into a written
agreement that allows the buyer to rent the property prior to close of escrow.
This is known as early buyer possession.
Private Well Inspections.---knowledgefinancial.com
If the home is not connected to city water -- on a private well, buyers may want
assurance that the water is potable and meets acceptable health standards.
Preliminary Title Report.
Title investigations will disclose easements, CC&Rs, and monetary liens of
record, including the ability of the seller to transfer clean title the buyer. If you
can, always order a title policy.
Homeowner Association Documents.
Buyers should obtain for approval a copy of all homeowner association
documents, including meeting minutes, if applicable.
Seller Statutory Disclosures.
Sellers are required in CA to disclose all known material facts, including
preparing and delivering a Transfer Disclosure Statement (TDS), Natural
Hazard Disclosure Statement, special taxes and statutory supplemental and /
or questionnaire.
Contingent on Selling Existing Home
----knowledgefinancial.com
Buyers who have an existing home might want to buy before selling and make
the contract contingent on selling their home. Sellers who accept contingent
offers like this often give the buyer a certain number of days to perform. If the
buyer cannot perform, the seller retains the option to cancel the contract.
How to Cancel a Purchase Agreement or Real
Estate Contract? // How to Get Your Earnest
Money Deposit Refunded? ---
KNOWLEDGEFINANCIAL.COM
Just like how the best time to think about selling a home is
when you decide to buy a home, the best time to think about
canceling an agreement is when you sign an agreement. Any
kind of agreement. Whether it's an agreement to purchase real
estate -- known as a purchase offer -- or a buyer's broker
agreement, documents to refinance a mortgage, a listing
agreement, any document that binds you to perform.
Before you sign legal documents such as these, ask how you
can cancel if things don't work out or if you change your mind. If
you don't receive a satisfactory answer or you can't figure it
yourself by reading the cancellation clauses, then don't sign
until you have a lawyer review it for you and advise you. One of
the best $500 I ever spent was to have a lawyer look over a
"work-for-hire" employment agreement for me. As a result, I
turned down the opportunity and saved everybody unwanted
grief, especially me. ---knowledgefinancial.com
How to Cancel Listing Agreements
Ask About Cancellation Upfront. ---knowledgefinancial.com
Before you sign a listing agreement, ask your agent if you can
be released for any reason, even if that reason is, "Hey, I want
to list with another broker." If your agent tells you "no," then
you might not want to list with that company. Why, I ask you,
why would you list with a company that would not guarantee
your satisfaction with its services? If an agent says it's
company policy, then that is not a company with whom you
want to do business. Period. Next broker, please.
Ask the Broker for a Cancellation. ---
knowledgefinancial.com
Be aware that Exclusive Right-to-Sell listings contain a safety
or protection clause. If you ask an agent after the fact to cancel
the listing and the agent refuses, call the agent’s broker and
request a cancellation.
If the Broker Refuses to Cancel.
If the broker rejects your request for cancellation, then ask the
broker to assign another agent to you.
Is the Broker Reputable?
Most brokers who want to maintain good community relations
will cancel a listing if the seller insists. Nobody wants to be
known for holding a gun to the seller's throat.
Call a Real Estate Lawyer. ---
knowledgefinancial.com
If there are no workable solutions, call a real estate lawyer for
termination assistance, but first, tell the broker of your
intentions to do so. Sometimes that’s enough to get a release.
Bear in mind that many listing agreements are bilateral
agreements: a promise for a promise. This means a good
lawyer might be able to find a way to argue that the broker did
not hold to the promise and get you released.
Canceling a Buyer’s Agency Agreement
Ask your agent to give you a form called Termination of Buyer
Agency. The TBA issued by the California Association of
Realtors, for example, will cancel oral or written agency
agreements when properly acknowledged and executed.
How to Cancel Purchase Agreements ----
knowledgefinancial.com
Read Your Agreement.
Ask your agent or lawyer to point out to you the cancellation
clauses. In some states, all inspections are completed upfront,
and once a purchase offer is signed, the offer is binding. In
other states, inspections take place after the offer is signed
and provide for the return of the buyer's deposit if the offer is
canceled pursuant to an inspection.
Federal Law Gives Buyers 10 Days to Inspect
for Lead Paint.
Ask your real estate agent or lawyer if you want to or need to
cancel during this time period. Ask how you do it and which
form to sign. You can waive this right in writing but few buyers
would be prudent to consider doing so.
After Expiration of Inspection Periods.
In states like California, standard default periods are 17 days
for inspections. However, if a buyer does not withdraw all
contingencies, that time period is extended until the
contingencies are withdrawn. In other words, the buyer does
not lose the right to cancel simply because the contract
cancellation period has expired or lapsed. It continues until a
seller objects. ---knowledgefinancial.com
In such cases, sellers are advised to give buyers a Notice to
Perform, calling for action within a certain time period, typically
ranging from 24 to 72 hours. If the buyer does not sign a
release of contingencies within that time period and deliver it,
the seller can then cancel the contract. For more information,
contact a real estate lawyer.
Estate Contract? // How to Get Your Earnest
Money Deposit Refunded? ---
KNOWLEDGEFINANCIAL.COM
Just like how the best time to think about selling a home is
when you decide to buy a home, the best time to think about
canceling an agreement is when you sign an agreement. Any
kind of agreement. Whether it's an agreement to purchase real
estate -- known as a purchase offer -- or a buyer's broker
agreement, documents to refinance a mortgage, a listing
agreement, any document that binds you to perform.
Before you sign legal documents such as these, ask how you
can cancel if things don't work out or if you change your mind. If
you don't receive a satisfactory answer or you can't figure it
yourself by reading the cancellation clauses, then don't sign
until you have a lawyer review it for you and advise you. One of
the best $500 I ever spent was to have a lawyer look over a
"work-for-hire" employment agreement for me. As a result, I
turned down the opportunity and saved everybody unwanted
grief, especially me. ---knowledgefinancial.com
How to Cancel Listing Agreements
Ask About Cancellation Upfront. ---knowledgefinancial.com
Before you sign a listing agreement, ask your agent if you can
be released for any reason, even if that reason is, "Hey, I want
to list with another broker." If your agent tells you "no," then
you might not want to list with that company. Why, I ask you,
why would you list with a company that would not guarantee
your satisfaction with its services? If an agent says it's
company policy, then that is not a company with whom you
want to do business. Period. Next broker, please.
Ask the Broker for a Cancellation. ---
knowledgefinancial.com
Be aware that Exclusive Right-to-Sell listings contain a safety
or protection clause. If you ask an agent after the fact to cancel
the listing and the agent refuses, call the agent’s broker and
request a cancellation.
If the Broker Refuses to Cancel.
If the broker rejects your request for cancellation, then ask the
broker to assign another agent to you.
Is the Broker Reputable?
Most brokers who want to maintain good community relations
will cancel a listing if the seller insists. Nobody wants to be
known for holding a gun to the seller's throat.
Call a Real Estate Lawyer. ---
knowledgefinancial.com
If there are no workable solutions, call a real estate lawyer for
termination assistance, but first, tell the broker of your
intentions to do so. Sometimes that’s enough to get a release.
Bear in mind that many listing agreements are bilateral
agreements: a promise for a promise. This means a good
lawyer might be able to find a way to argue that the broker did
not hold to the promise and get you released.
Canceling a Buyer’s Agency Agreement
Ask your agent to give you a form called Termination of Buyer
Agency. The TBA issued by the California Association of
Realtors, for example, will cancel oral or written agency
agreements when properly acknowledged and executed.
How to Cancel Purchase Agreements ----
knowledgefinancial.com
Read Your Agreement.
Ask your agent or lawyer to point out to you the cancellation
clauses. In some states, all inspections are completed upfront,
and once a purchase offer is signed, the offer is binding. In
other states, inspections take place after the offer is signed
and provide for the return of the buyer's deposit if the offer is
canceled pursuant to an inspection.
Federal Law Gives Buyers 10 Days to Inspect
for Lead Paint.
Ask your real estate agent or lawyer if you want to or need to
cancel during this time period. Ask how you do it and which
form to sign. You can waive this right in writing but few buyers
would be prudent to consider doing so.
After Expiration of Inspection Periods.
In states like California, standard default periods are 17 days
for inspections. However, if a buyer does not withdraw all
contingencies, that time period is extended until the
contingencies are withdrawn. In other words, the buyer does
not lose the right to cancel simply because the contract
cancellation period has expired or lapsed. It continues until a
seller objects. ---knowledgefinancial.com
In such cases, sellers are advised to give buyers a Notice to
Perform, calling for action within a certain time period, typically
ranging from 24 to 72 hours. If the buyer does not sign a
release of contingencies within that time period and deliver it,
the seller can then cancel the contract. For more information,
contact a real estate lawyer.
LISTING AGREEMENT: About Listing
Agreements, Types of Real Estate Listings,
Terms, Conditions & Fees.
The best choice for you will depend on your willingness and ability
to tackle some of the home selling duties and your overall real
estate market climate.
Open Listing
An open listing lets an owner sell her home by herself. It is a
non-exclusive agreement, meaning the owner may execute open
listings with more than one real estate broker and pay only the
broker who brings an able buyer whose offer the owner accepts.
The big difference is an owner will probably pay only a selling
broker's commission, which is about one-half of typical fees.
The reason is because the owner is unrepresented. Therefore,
owners do not pay a broker to represent the owner, but do pay
the broker to represent the buyer. However, if the owner finds the
buyer herself, the owner will not owe anybody a commission.
Open listings are not popular with many full-service real estate
brokers.
Exclusive Agency Listing
An exclusive agency listing is similar to an open listing except the
major difference is the broker will represent the owner. The
owner still reserves the right to sell the property herself and not
pay a commission.
The broker is free to cooperate with another brokerage, meaning
the second brokerage could bring an able buyer whose offer the
owner accepts. Typically, the broker is paid a listing commission
that is shared with the selling broker, so the owner pays both
fees.
Exclusive Right-to-Sell Listing
An exclusive right-to-sell listing is the most commonly utilized
instrument. It gives the broker the exclusive right to earn a
commission by representing the owner and bringing a buyer,
either through another brokerage or directly.
The owner pays both the listing and selling broker fees. The
owner cannot sell the property herself without paying a
commission, unless an exception is noted in the contract.
Exception to the contract: Say, your next-door neighbor has
expressed an interest in buying your house. Often a listing broker
will give the seller X number of days to produce a contract with
the neighbor without owing a commission.
Other Terms & Conditions to Consider
Length of Listing
The duration of the listing agreement is negotiable. Common
terms can be 30 days, 90 days, six months, one year or more.
Selling Commission
How much will you pay the selling agent? When there is a lot of
inventory on the market and fewer buyers, to generate traffic, you
might want to consider paying the selling agent more than you
would in a market where inventory is tight and a lot of buyers are
vying for few listings. For example, if the total commission is 6%,
and the listing broker wants to offer 2.5% to the selling office, you
could insist on paying 3% instead. It's your money. The listing
agent will get less, but so what?
Cancellation of Contract
Will the broker / agent let you cancel the agreement? Why would
you want to do business with a broker who would not release you
from the contract if you were unhappy or dissatisfied with their
service? If the broker will agree to let you cancel at any time, that
broker is giving you a guarantee. In that instance, the duration of
the contract doesn't much matter.
Expiration of Contract
If the contract should expire without mutual renewal or the
parties elect to cancel the contract, the listing broker might
supply the owner with a list of names of prospective buyers the
broker produced. If any of those buyers approach the owner
within the time period specified in the listing contract and
successfully purchase the property, the owner could still owe a
commission.
Agreements, Types of Real Estate Listings,
Terms, Conditions & Fees.
The best choice for you will depend on your willingness and ability
to tackle some of the home selling duties and your overall real
estate market climate.
Open Listing
An open listing lets an owner sell her home by herself. It is a
non-exclusive agreement, meaning the owner may execute open
listings with more than one real estate broker and pay only the
broker who brings an able buyer whose offer the owner accepts.
The big difference is an owner will probably pay only a selling
broker's commission, which is about one-half of typical fees.
The reason is because the owner is unrepresented. Therefore,
owners do not pay a broker to represent the owner, but do pay
the broker to represent the buyer. However, if the owner finds the
buyer herself, the owner will not owe anybody a commission.
Open listings are not popular with many full-service real estate
brokers.
Exclusive Agency Listing
An exclusive agency listing is similar to an open listing except the
major difference is the broker will represent the owner. The
owner still reserves the right to sell the property herself and not
pay a commission.
The broker is free to cooperate with another brokerage, meaning
the second brokerage could bring an able buyer whose offer the
owner accepts. Typically, the broker is paid a listing commission
that is shared with the selling broker, so the owner pays both
fees.
Exclusive Right-to-Sell Listing
An exclusive right-to-sell listing is the most commonly utilized
instrument. It gives the broker the exclusive right to earn a
commission by representing the owner and bringing a buyer,
either through another brokerage or directly.
The owner pays both the listing and selling broker fees. The
owner cannot sell the property herself without paying a
commission, unless an exception is noted in the contract.
Exception to the contract: Say, your next-door neighbor has
expressed an interest in buying your house. Often a listing broker
will give the seller X number of days to produce a contract with
the neighbor without owing a commission.
Other Terms & Conditions to Consider
Length of Listing
The duration of the listing agreement is negotiable. Common
terms can be 30 days, 90 days, six months, one year or more.
Selling Commission
How much will you pay the selling agent? When there is a lot of
inventory on the market and fewer buyers, to generate traffic, you
might want to consider paying the selling agent more than you
would in a market where inventory is tight and a lot of buyers are
vying for few listings. For example, if the total commission is 6%,
and the listing broker wants to offer 2.5% to the selling office, you
could insist on paying 3% instead. It's your money. The listing
agent will get less, but so what?
Cancellation of Contract
Will the broker / agent let you cancel the agreement? Why would
you want to do business with a broker who would not release you
from the contract if you were unhappy or dissatisfied with their
service? If the broker will agree to let you cancel at any time, that
broker is giving you a guarantee. In that instance, the duration of
the contract doesn't much matter.
Expiration of Contract
If the contract should expire without mutual renewal or the
parties elect to cancel the contract, the listing broker might
supply the owner with a list of names of prospective buyers the
broker produced. If any of those buyers approach the owner
within the time period specified in the listing contract and
successfully purchase the property, the owner could still owe a
commission.
Questions to Ask a Real Estate Agent - How to Interview an Agent as a Home
Seller
1. How Long Have You Been in the Business?
The standard joke is there's nothing wrong with a new agent that a little
experience won't fix. But that's not to say that freshly licensed agents aren't
valuable. Much depends on whether they have access to competent mentors
and the level of their training.
Newer agents tend to have more time to concentrate on you. Some agents
with 20 years of experience repeat their first year over and over. Other
20-year agents learn something new every year.
--------------
2. What is Your Average List-Price-to-Sales-Price Ratio?
Knowing the agent's average ratio speaks volumes. Excluding sizzling
seller's markets, a good buyer's agent should be able to negotiate a sales
price that is lower than list price for buyers. A competent listing agent should
hold a track record for negotiating sales prices that are very close to list
prices. Therefore, listing agents should have higher ratios closer to 100%.
Buyer's agent ratios should fall below 99%.
As a seller, you will need to know:
Specifically, how will you sell my home?
What is your direct mail campaign?
Where and how often do you advertise?
Will you show me a sample flyer?
How do you market online?
-----------
Will You Please Provide References?
Everybody has references. Even new agents have references from previous
employers.
Ask to see references.
Ask if any of the individuals providing references are related to the agent.
Ask if you can call the references with additional questions.
-------
What Are the Top Three Things That Separate You From Your Competition?
A good agent won't hesitate to answer this question and will be ready to fire
off why she is best suited for the job. Everyone has their own standards, but
most consumers say they are looking for agents who say they are:
Honest and trustworthy, Assertive , Excellent negotiators
Available by phone or e-mail , Good communicators
Friendly, Analytical
Able to maintain a good sense of humor under trying circumstances
-------
May I Review Documents Beforehand That I Will Be Asked to Sign?
A sign of a good real estate agent is a professional who makes forms
available to you for preview before you are required to sign them. If at all
possible, ask for these documents upfront.
As a seller, ask to see:
Agency Disclosure
Listing Agreement
Seller Disclosures
-------------
How Much Do You Charge?
Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically,
real estate agents charge a percentage, from 1% to 4% to represent one side
of a transaction: a seller or a buyer. A listing agent may charge, for example,
3.5% for herself and another 3.5% for the buyer's agent, for a total of 7%.
--------------------
What Kind of Guarantee Do You Offer?
If you sign a listing or buying agreement with the agent and later find that you
are unhappy with the arrangement, will the agent let you cancel the
agreement? Will the agent stand behind her service to you? What is her
company's policy about canceled agreements? Has anybody ever canceled
an agreement with her before?
10. What Haven't I Asked You That I Need to Know?
Pay close attention to how the real estate agent answers this question
because there is always something you need to know, always. You want an
agent to take her time with you -- to make sure you feel comfortable and
secure with her knowledge and experience.
She should know how to listen and how to counsel you, how to ask the right
questions to find out what she needs to know to better serve you.
------------------------------
AGENT'S ANSWERS REAL ESTATE BUYERS OR SELLERS QUESTIONS...
Years, years, years.. In this business; experience does count. It can mean
the difference between knowing how to handle a difficult situation,
recognizing the signs of a potential problem before it develops into a crisis.
----------------------
. Average List-to-Sales-Price Ratio
When hiring a listing agent, expect to see list-to-sales ratio within 97% to
100% in a buyer's market; in a seller's market: 100% to 110% of list price.
When hiring a buyer's agent, expect to see list-to-sales ratios within 90 to
97% in a buyer's market; in a seller's market: 100% to 103%.
--------------------
Best Marketing Plan / Strategy
As a buyer, you should expect to see 5 to 7 homes a day, for as long as it
takes to find your home. All the homes should fit your parameters, and the
agent should preview those homes for you. The agent should also agree to
solely represent you and not represent other buyers who are competing for
the same inventory.
As a seller, you would like your agent to advertise weekly for you, do direct
mail, send e-flyers, produce four-color brochures, and present you with a
marketing campaign designed specifically for you.
. References
You might find references on an agent's Web site, but you should also ask to
see letters of reference. Clients often send thank you notes or letters to the
agent's broker. Check a minimum of three references.
Buy Direct
. Top Three Things That Make the Agent Different
Examples can range from marketing to knowledge. Acceptable answers are:
Strong repeat record of satisfied customers
Extensive online marketing
Good negotiation skills
Assertive, doesn't take no for an answer
Strong communicator.
----------------
Review of Documents
As a buyer, ask to see a sample purchase agreement and ask the agent to
point out your cancellation rights in this document. If the agent hems and
haws, or hesitates to explain the purchase agreement to you, hire another
agent.
As a seller, ask to see the listing agreement. Ask about reserving the right to
sell the home yourself. If you see a fee you do not understand, question it.
7. Affiliation with Related Professionals
Ask the agent if the title company she recommends charges competitive
fees. All agents build teams of professionals, from title companies to escrow
officers to mortgage lenders, home inspectors and appraisers. Ask if the
agent's company is receiving compensation for the referral. If so, you might
want to choose another professional. Payment of some referral fees are
against the law.
Buy Direct
8. Agent Fees
All fees are negotiable. If you are a buyer, ask the agent if the fee stated in the
buyer's broker agreement will be adjusted if the offered seller's
compensation is lower.
If you are a seller, ask about discounted fees. Sometimes agents will match
fees offered by other agents.
9. Personal Guarantee
If the agent will not release you from a listing agreement prior to its expiration
upon request, then you should hire another agent. Ask about it before you
sign a listing agreement. Ditto with a buyer's broker agreement. Some agents
will release you; others will not.
Buy Direct
10. Other Questions
You might ask the agent to reiterate your goals and objectives. If the agent
does not appear to have a thorough understanding of what you want, despite
your attempts to explain what you want, then hire somebody else. Some
agents do not listen very well. You want an agent who will listen to you and
communicate with you. The best way to find out if the agent comprehends
your desires is to ask the agent to repeat it back to you.
Seller
1. How Long Have You Been in the Business?
The standard joke is there's nothing wrong with a new agent that a little
experience won't fix. But that's not to say that freshly licensed agents aren't
valuable. Much depends on whether they have access to competent mentors
and the level of their training.
Newer agents tend to have more time to concentrate on you. Some agents
with 20 years of experience repeat their first year over and over. Other
20-year agents learn something new every year.
--------------
2. What is Your Average List-Price-to-Sales-Price Ratio?
Knowing the agent's average ratio speaks volumes. Excluding sizzling
seller's markets, a good buyer's agent should be able to negotiate a sales
price that is lower than list price for buyers. A competent listing agent should
hold a track record for negotiating sales prices that are very close to list
prices. Therefore, listing agents should have higher ratios closer to 100%.
Buyer's agent ratios should fall below 99%.
As a seller, you will need to know:
Specifically, how will you sell my home?
What is your direct mail campaign?
Where and how often do you advertise?
Will you show me a sample flyer?
How do you market online?
-----------
Will You Please Provide References?
Everybody has references. Even new agents have references from previous
employers.
Ask to see references.
Ask if any of the individuals providing references are related to the agent.
Ask if you can call the references with additional questions.
-------
What Are the Top Three Things That Separate You From Your Competition?
A good agent won't hesitate to answer this question and will be ready to fire
off why she is best suited for the job. Everyone has their own standards, but
most consumers say they are looking for agents who say they are:
Honest and trustworthy, Assertive , Excellent negotiators
Available by phone or e-mail , Good communicators
Friendly, Analytical
Able to maintain a good sense of humor under trying circumstances
-------
May I Review Documents Beforehand That I Will Be Asked to Sign?
A sign of a good real estate agent is a professional who makes forms
available to you for preview before you are required to sign them. If at all
possible, ask for these documents upfront.
As a seller, ask to see:
Agency Disclosure
Listing Agreement
Seller Disclosures
-------------
How Much Do You Charge?
Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically,
real estate agents charge a percentage, from 1% to 4% to represent one side
of a transaction: a seller or a buyer. A listing agent may charge, for example,
3.5% for herself and another 3.5% for the buyer's agent, for a total of 7%.
--------------------
What Kind of Guarantee Do You Offer?
If you sign a listing or buying agreement with the agent and later find that you
are unhappy with the arrangement, will the agent let you cancel the
agreement? Will the agent stand behind her service to you? What is her
company's policy about canceled agreements? Has anybody ever canceled
an agreement with her before?
10. What Haven't I Asked You That I Need to Know?
Pay close attention to how the real estate agent answers this question
because there is always something you need to know, always. You want an
agent to take her time with you -- to make sure you feel comfortable and
secure with her knowledge and experience.
She should know how to listen and how to counsel you, how to ask the right
questions to find out what she needs to know to better serve you.
------------------------------
AGENT'S ANSWERS REAL ESTATE BUYERS OR SELLERS QUESTIONS...
Years, years, years.. In this business; experience does count. It can mean
the difference between knowing how to handle a difficult situation,
recognizing the signs of a potential problem before it develops into a crisis.
----------------------
. Average List-to-Sales-Price Ratio
When hiring a listing agent, expect to see list-to-sales ratio within 97% to
100% in a buyer's market; in a seller's market: 100% to 110% of list price.
When hiring a buyer's agent, expect to see list-to-sales ratios within 90 to
97% in a buyer's market; in a seller's market: 100% to 103%.
--------------------
Best Marketing Plan / Strategy
As a buyer, you should expect to see 5 to 7 homes a day, for as long as it
takes to find your home. All the homes should fit your parameters, and the
agent should preview those homes for you. The agent should also agree to
solely represent you and not represent other buyers who are competing for
the same inventory.
As a seller, you would like your agent to advertise weekly for you, do direct
mail, send e-flyers, produce four-color brochures, and present you with a
marketing campaign designed specifically for you.
. References
You might find references on an agent's Web site, but you should also ask to
see letters of reference. Clients often send thank you notes or letters to the
agent's broker. Check a minimum of three references.
Buy Direct
. Top Three Things That Make the Agent Different
Examples can range from marketing to knowledge. Acceptable answers are:
Strong repeat record of satisfied customers
Extensive online marketing
Good negotiation skills
Assertive, doesn't take no for an answer
Strong communicator.
----------------
Review of Documents
As a buyer, ask to see a sample purchase agreement and ask the agent to
point out your cancellation rights in this document. If the agent hems and
haws, or hesitates to explain the purchase agreement to you, hire another
agent.
As a seller, ask to see the listing agreement. Ask about reserving the right to
sell the home yourself. If you see a fee you do not understand, question it.
7. Affiliation with Related Professionals
Ask the agent if the title company she recommends charges competitive
fees. All agents build teams of professionals, from title companies to escrow
officers to mortgage lenders, home inspectors and appraisers. Ask if the
agent's company is receiving compensation for the referral. If so, you might
want to choose another professional. Payment of some referral fees are
against the law.
Buy Direct
8. Agent Fees
All fees are negotiable. If you are a buyer, ask the agent if the fee stated in the
buyer's broker agreement will be adjusted if the offered seller's
compensation is lower.
If you are a seller, ask about discounted fees. Sometimes agents will match
fees offered by other agents.
9. Personal Guarantee
If the agent will not release you from a listing agreement prior to its expiration
upon request, then you should hire another agent. Ask about it before you
sign a listing agreement. Ditto with a buyer's broker agreement. Some agents
will release you; others will not.
Buy Direct
10. Other Questions
You might ask the agent to reiterate your goals and objectives. If the agent
does not appear to have a thorough understanding of what you want, despite
your attempts to explain what you want, then hire somebody else. Some
agents do not listen very well. You want an agent who will listen to you and
communicate with you. The best way to find out if the agent comprehends
your desires is to ask the agent to repeat it back to you.
SELLER'S MARKET: Tips for Writing Winning Purchase
Offers in a Seller's Market... --KNOWLEDGEFINANCIAL.
COM
SELLER'S MARKET exist when there are a lot of buyers competing for a low
inventory of active listings. It’s not unusual for a home with all the bells and
whistles to draw offers from more than one buyer. When this happens, the
home often sells for more than list price. But price isn’t everything to a seller.
There are other factors. If you are trying to buy a home in a seller’s market,
here are 10 tips to help you write that winning purchase offer and beat out the
competition.
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Mortgage Loans Information Center ...
Real Estate general Information Center ...
FORECLOSURE SOLUTION! STOP IT NOW. SAVE YOUR EQUITY, SAVE YOUR CREDIT, AND
PUT MONEY BACK IN YOUR POCKET. ----
FORECLOSURE ALTERNATIVES: TIPS TO AVOID THIS NIGHTMARE . ..
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About Buying HUD Homes? What is a HUD Home? How are HUD Homes sold?..
SHORT SALE: REAL ESTATE INVESTMENT OPPORTUNITY FOR ALL. SHORT SALE
METHODS AND TECHNIQUES!...
HOW TO BUY SHORT SALE PROPERTIES? HOW TO INVEST IN REAL ESTATE SHORT SALE
AND MAKE BIG PROFIT?
CREATIVE FINANCING: TOP 10 CREATIVE FINANCING TECHNIQUES AND
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Capital gains tax, Understanding Capital Gains Taxes, Real Estate Capital Gains
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1. Submit a Preapproval Letter With Your Offer
A lender’s letter that says your credit rating has been examined and you can
afford to buy the home carries a lot of weight. It tells the seller that you are
serious and qualified. It says you are ready to buy and have already committed
to lender. If the seller has a higher offer from a buyer without a preapproval
letter, your offer will likely win.
-------------------
2. Hire an Assertive Real Estate Agent
An agent who constantly combs the marketplace and networks with other
agents is more likely to get a lead on your new home before anybody else,
which is why you need to hire a good agent. When a young nurse was ready to
buy a home she had just toured over lunch, her agent insisted they write the
offer on the hood of her car. Then the agent called the listing agent from her
cell. She persuaded that agent to drop what he was doing and join her at his
seller’s home to present the offer. The nurse’s offer was accepted that
afternoon.
-------------------------
3. Write a Friendly Offer
Don’t include demands in your offer that are likely to irritate or anger the seller.
If it is customary in your area for the buyer to pay for her own title insurance
policy, don’t ask the seller to bear that cost. If most buyers demand
possession at 5:00 PM on the day of closing, show that you are different and
be generous by giving the seller two or three days to move out.
-------------------------
4. Put Your Best Foot Forward
Simply put, this means write your very best offer. You might get only one
chance to make an impression on the seller, so don’t make a low offer hoping
the seller will give you a counter offer. If the seller has received multiple offers,
the low offers most often are not even considered. They are shoved into the
rejected pile. Figure out the top dollar you are willing to pay for the home and
offer that price.
-------------------------
5. Put Down a Healthy Earnest Money Deposit
A larger earnest money deposit shows you are serious and are willing to put
your cash on the table. Sellers will feel you are more committed with, say, a 3%
deposit than 1%, meaning if a home is listed at $300,000, don’t offer a $500
deposit. The seller could feel you have nothing at risk and could walk away
from the transaction at will. A deposit of $5,000, $10,000 or $15,000 says “I am
committed to buying this home.”
-----------------------
6. Cash Talks
If you are able to pay “all cash” for a home, say so. Although it’s always “all
cash” in the end to the seller, even if the buyer obtains a loan, a transaction
that is not dependent on receiving loan approval is more attractive to a seller.
----------------------
7. Shorten Inspection Periods
Many standard real estate purchase contracts give the buyer X number of
days to perform inspections before the buyer is required to proceed with the
transaction. If the default in your purchase contract is 17 days, try shortening
that time period to 10. By federal law, unless you specifically waive your right
under the Lead Paint Disclosure, you have 10 days to inspect the property for
signs of lead paint contamination.
--------------------
8. Waive Some Contingencies
If you have spoken to your legal advisor and feel comfortable risking your
deposit, you might want to consider waiving contingencies such as those for
loans, appraisals or inspections. However, there are risks. If you waive an
appraisal contingency and the home appraises below your sales price, you will
need to make up that difference in cash. But without some contingencies, your
offer will be more than solid than a competitor’s.
---------------------
9. Write the Seller a Letter
If the seller has eight offers on the table but your offer includes a letter that is
personally handwritten by you, your offer will stand out. In your letter, you will
want to appeal to the seller’s emotions by explaining why you are in love with
her home and list all the reasons why your offer should win. If you can evoke
tears of joy or induce empathy from the seller, your offer will likely win.
---------------------
10. Offer to Close Quickly
Unless there are extenuating circumstances, many sellers prefer to close
within 30 days or fewer. If you can offer a 21-day closing time frame, that might
be more important to the seller than an offer for more money and be just the
edge you need to beat out the competition.
Offers in a Seller's Market... --KNOWLEDGEFINANCIAL.
COM
SELLER'S MARKET exist when there are a lot of buyers competing for a low
inventory of active listings. It’s not unusual for a home with all the bells and
whistles to draw offers from more than one buyer. When this happens, the
home often sells for more than list price. But price isn’t everything to a seller.
There are other factors. If you are trying to buy a home in a seller’s market,
here are 10 tips to help you write that winning purchase offer and beat out the
competition.
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1. Submit a Preapproval Letter With Your Offer
A lender’s letter that says your credit rating has been examined and you can
afford to buy the home carries a lot of weight. It tells the seller that you are
serious and qualified. It says you are ready to buy and have already committed
to lender. If the seller has a higher offer from a buyer without a preapproval
letter, your offer will likely win.
-------------------
2. Hire an Assertive Real Estate Agent
An agent who constantly combs the marketplace and networks with other
agents is more likely to get a lead on your new home before anybody else,
which is why you need to hire a good agent. When a young nurse was ready to
buy a home she had just toured over lunch, her agent insisted they write the
offer on the hood of her car. Then the agent called the listing agent from her
cell. She persuaded that agent to drop what he was doing and join her at his
seller’s home to present the offer. The nurse’s offer was accepted that
afternoon.
-------------------------
3. Write a Friendly Offer
Don’t include demands in your offer that are likely to irritate or anger the seller.
If it is customary in your area for the buyer to pay for her own title insurance
policy, don’t ask the seller to bear that cost. If most buyers demand
possession at 5:00 PM on the day of closing, show that you are different and
be generous by giving the seller two or three days to move out.
-------------------------
4. Put Your Best Foot Forward
Simply put, this means write your very best offer. You might get only one
chance to make an impression on the seller, so don’t make a low offer hoping
the seller will give you a counter offer. If the seller has received multiple offers,
the low offers most often are not even considered. They are shoved into the
rejected pile. Figure out the top dollar you are willing to pay for the home and
offer that price.
-------------------------
5. Put Down a Healthy Earnest Money Deposit
A larger earnest money deposit shows you are serious and are willing to put
your cash on the table. Sellers will feel you are more committed with, say, a 3%
deposit than 1%, meaning if a home is listed at $300,000, don’t offer a $500
deposit. The seller could feel you have nothing at risk and could walk away
from the transaction at will. A deposit of $5,000, $10,000 or $15,000 says “I am
committed to buying this home.”
-----------------------
6. Cash Talks
If you are able to pay “all cash” for a home, say so. Although it’s always “all
cash” in the end to the seller, even if the buyer obtains a loan, a transaction
that is not dependent on receiving loan approval is more attractive to a seller.
----------------------
7. Shorten Inspection Periods
Many standard real estate purchase contracts give the buyer X number of
days to perform inspections before the buyer is required to proceed with the
transaction. If the default in your purchase contract is 17 days, try shortening
that time period to 10. By federal law, unless you specifically waive your right
under the Lead Paint Disclosure, you have 10 days to inspect the property for
signs of lead paint contamination.
--------------------
8. Waive Some Contingencies
If you have spoken to your legal advisor and feel comfortable risking your
deposit, you might want to consider waiving contingencies such as those for
loans, appraisals or inspections. However, there are risks. If you waive an
appraisal contingency and the home appraises below your sales price, you will
need to make up that difference in cash. But without some contingencies, your
offer will be more than solid than a competitor’s.
---------------------
9. Write the Seller a Letter
If the seller has eight offers on the table but your offer includes a letter that is
personally handwritten by you, your offer will stand out. In your letter, you will
want to appeal to the seller’s emotions by explaining why you are in love with
her home and list all the reasons why your offer should win. If you can evoke
tears of joy or induce empathy from the seller, your offer will likely win.
---------------------
10. Offer to Close Quickly
Unless there are extenuating circumstances, many sellers prefer to close
within 30 days or fewer. If you can offer a 21-day closing time frame, that might
be more important to the seller than an offer for more money and be just the
edge you need to beat out the competition.
The 6 Phases Of A Foreclosure
Many of us have either gone through the process of foreclosure,
a process that allows a lender to recover the amount owed on a
defaulted loan by selling or taking ownership of the property
firsthand or know someone who has.
IN PICTURES: 6 Tips On Selling Your Home In A Down Market
Realty Trac released its U.S. Foreclosure Market Report on April
15, 2010 for the first quarter of 2010. The report, which
calculates foreclosure filings, including default notices,
scheduled auctions and bank repossessions, showed that
932,234 properties were involved in the first quarter, a 7%
increase from the last quarter of 2009, and a 16% increase over
the first quarter of 2009. An astonishing one in every 138 U.S.
housing units received a foreclosure filing during the quarter. If
you (or a loved one) are facing foreclosure, make sure you
understand the process. While the process does vary from
state to state, there are normally six phases of a foreclosure.
Phase 1: Payment Default
A payment default occurs when a borrower has missed at least
one mortgage payment. The lender will send a missed
payment notice indicating that they have not yet received that
month's payment. Typically, mortgage payments are due on the
first day of each month, and many lenders offer a grace period
until the 15th of the month. After that, the lender may charge a
late payment fee and send the missed payment notice.
After two payments are missed, the lender may send a
Demand Letter. This is more serious than a missed payment
notice; however, at this point the lender is probably still willing
to work with the borrower to make arrangements for catching up
on payments. The borrower would normally have to remit the
late payments within 30 days or receiving the letter. (When you
have a tough financial decision to make about your home,
make sure you have all the information. Learn more in Fend Off
Foreclosure - With Bankruptcy?)
Phase 2: Notice of Default (NOD)
A Notice of Default is sent after 90 days of missed payments. In
some states, the Notice of Default is placed prominently on the
home. At this point, the loan will be handed over to the lender's
foreclosure department in the same county where the property
is located. The borrower is informed that the Notice will be
recorded. The lender will typically give the borrower another 90
days to settle the payments and reinstate the loan. This is
referred to as the reinstatement period.
Phase 3: Notice of Trustee's Sale
If the loan has not been made up to date within the 90 days
following the Notice of Default, a Notice of Trustee's Sale will be
recorded in the county where the property is located. The lender
must also publish a notice in the local newspaper for three
weeks indicating that the property will be available at public
auction. All owners' names will be printed in the Notice and in
the newspaper, along with a legal description of the property,
the property address, and when and where the sale will take
place.
Phase 4: Trustee's Sale
The property is placed for public auction and will be awarded to
the highest bidder who meets all of the necessary
requirements. The lender (or firm representing the lender) will
calculate an opening bid based on the value of the outstanding
loan, any liens and any unpaid taxes, and any costs associated
with the sale. Once the highest bidder has been confirmed and
the Trustee's Sale is completed, a Trustee's Deed Upon Sale
will be provided to the winning bidder. The property is then
owned by the purchaser, who is entitled to immediate
possession.
Phase 5: Real Estate Owned (REO)
If the property is not sold during the public auction, the lender
will become the owner and will attempt to sell the property on
its own, through a broker or with the assistance of an REO
Asset Manager. These properties are often referred to as
"bank-owned". The lender may remove some of the liens and
other expenses in an attempt to make the property more
attractive.
Phase 6: Eviction
The borrower can often stay in the home until it has sold either
through a public auction or later as a REO property. At this point,
an eviction notice is sent demanding that any persons vacate
the premises immediately. Several days may be provided to
allow the occupants sufficient time to remove any personal
belongings, and then typically the local sheriff will visit the
property and remove the people and any remaining belongings.
Any belongings may be placed in storage and retrieved at a
later date for a fee. (It's a tough choice, but some people will be
forced to foreclose. Others won't. Find out which factors are
likely to make the difference in Would You Walk Away From Your
Home?)
The Bottom Line
Throughout the foreclosure process, many lenders will attempt
to make arrangements for the borrower to get caught up on the
loan and avoid a foreclosure. The obvious problem is that when
a borrower cannot meet one payment, it becomes increasingly
difficult to catch up on multiple payments. If there is a chance
that you can catch up on payments - for instance, you just
started a new job following a period of unemployment - it is
worth speaking with your lender. If a foreclosure is unavoidable,
knowing what to expect throughout the process can help
prepare you for the six phases of foreclosure. (To learn more,
see Saving Your Home From Foreclosure.)
Many of us have either gone through the process of foreclosure,
a process that allows a lender to recover the amount owed on a
defaulted loan by selling or taking ownership of the property
firsthand or know someone who has.
IN PICTURES: 6 Tips On Selling Your Home In A Down Market
Realty Trac released its U.S. Foreclosure Market Report on April
15, 2010 for the first quarter of 2010. The report, which
calculates foreclosure filings, including default notices,
scheduled auctions and bank repossessions, showed that
932,234 properties were involved in the first quarter, a 7%
increase from the last quarter of 2009, and a 16% increase over
the first quarter of 2009. An astonishing one in every 138 U.S.
housing units received a foreclosure filing during the quarter. If
you (or a loved one) are facing foreclosure, make sure you
understand the process. While the process does vary from
state to state, there are normally six phases of a foreclosure.
Phase 1: Payment Default
A payment default occurs when a borrower has missed at least
one mortgage payment. The lender will send a missed
payment notice indicating that they have not yet received that
month's payment. Typically, mortgage payments are due on the
first day of each month, and many lenders offer a grace period
until the 15th of the month. After that, the lender may charge a
late payment fee and send the missed payment notice.
After two payments are missed, the lender may send a
Demand Letter. This is more serious than a missed payment
notice; however, at this point the lender is probably still willing
to work with the borrower to make arrangements for catching up
on payments. The borrower would normally have to remit the
late payments within 30 days or receiving the letter. (When you
have a tough financial decision to make about your home,
make sure you have all the information. Learn more in Fend Off
Foreclosure - With Bankruptcy?)
Phase 2: Notice of Default (NOD)
A Notice of Default is sent after 90 days of missed payments. In
some states, the Notice of Default is placed prominently on the
home. At this point, the loan will be handed over to the lender's
foreclosure department in the same county where the property
is located. The borrower is informed that the Notice will be
recorded. The lender will typically give the borrower another 90
days to settle the payments and reinstate the loan. This is
referred to as the reinstatement period.
Phase 3: Notice of Trustee's Sale
If the loan has not been made up to date within the 90 days
following the Notice of Default, a Notice of Trustee's Sale will be
recorded in the county where the property is located. The lender
must also publish a notice in the local newspaper for three
weeks indicating that the property will be available at public
auction. All owners' names will be printed in the Notice and in
the newspaper, along with a legal description of the property,
the property address, and when and where the sale will take
place.
Phase 4: Trustee's Sale
The property is placed for public auction and will be awarded to
the highest bidder who meets all of the necessary
requirements. The lender (or firm representing the lender) will
calculate an opening bid based on the value of the outstanding
loan, any liens and any unpaid taxes, and any costs associated
with the sale. Once the highest bidder has been confirmed and
the Trustee's Sale is completed, a Trustee's Deed Upon Sale
will be provided to the winning bidder. The property is then
owned by the purchaser, who is entitled to immediate
possession.
Phase 5: Real Estate Owned (REO)
If the property is not sold during the public auction, the lender
will become the owner and will attempt to sell the property on
its own, through a broker or with the assistance of an REO
Asset Manager. These properties are often referred to as
"bank-owned". The lender may remove some of the liens and
other expenses in an attempt to make the property more
attractive.
Phase 6: Eviction
The borrower can often stay in the home until it has sold either
through a public auction or later as a REO property. At this point,
an eviction notice is sent demanding that any persons vacate
the premises immediately. Several days may be provided to
allow the occupants sufficient time to remove any personal
belongings, and then typically the local sheriff will visit the
property and remove the people and any remaining belongings.
Any belongings may be placed in storage and retrieved at a
later date for a fee. (It's a tough choice, but some people will be
forced to foreclose. Others won't. Find out which factors are
likely to make the difference in Would You Walk Away From Your
Home?)
The Bottom Line
Throughout the foreclosure process, many lenders will attempt
to make arrangements for the borrower to get caught up on the
loan and avoid a foreclosure. The obvious problem is that when
a borrower cannot meet one payment, it becomes increasingly
difficult to catch up on multiple payments. If there is a chance
that you can catch up on payments - for instance, you just
started a new job following a period of unemployment - it is
worth speaking with your lender. If a foreclosure is unavoidable,
knowing what to expect throughout the process can help
prepare you for the six phases of foreclosure. (To learn more,
see Saving Your Home From Foreclosure.)
Thinking of selling commercial real estate?
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exposure to potential investors"
We list properties for sale or lease in the following categories:
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Facilities, Land, Farm, Ranch, Forest, Storage, Mobile Home Park,
Business, Marina and Resort. Think of the thousands of potential
investors you can reach when you put marketing tools to work
for you!
"CIMLS Free Membership offers unlimited property listings and
exposure to potential investors"
We list properties for sale or lease in the following categories:
Retail, Office, Multi-family Apartments, Industrial, Shopping Center,
Business Park, Industrial Park, Hotel, Motel, Health Care, Senior
Facilities, Land, Farm, Ranch, Forest, Storage, Mobile Home Park,
Business, Marina and Resort. Think of the thousands of potential
investors you can reach when you put marketing tools to work
for you!
-- ''Business Info. State Business Entity Registration.
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State Licenses and Permits, Steps to Create & Registering a Business.
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'' How and where to apply for unemployment--
'' Food Stamp Program- Department of Children and
Families-Food Stamp- APPLY -- Or Get More Information-- ''
Food Stamp Employment & Training (FSET) Program
--'' Government Help and Resources.. --
''-Find Schools: College, University, Technical Schools-
Medical and Nursing Resources for Students &
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.. Banking, Finance, Investment Knowledge. The more you
know the closer you are to accomplish great success--
''Government general information center.
You name it, You get it
You need it, You find
You want it, Search for it!
''FINANCIAL EDUCATION TOOLS AND RESOURCES; WAYS
TO SAVE MONEY, TO MAKE MONEY.
''BUSINESS INFO, BUSINESS Structure Questions And
Answers.
''Business Registration, State Business Entity Registration..
State Licenses and Permits . Steps to Registering a
Business.
Free Unlimited Calling: Make Google Voice One of Your Five
First, a little warning
What I’m about to propose may be prohibited by your cell phone company. After all, they
want to make as much money as possible from you. So make sure to check your cell
provider’s terms of use before making this your full-time way of calling.
Now the good stuff
Google has built up a reputation of giving things away for free. Their Google Docs tools
essentially replace Microsoft Office (for free) --also free). Click here for a list of free Google
services.--
But one Google product you might not be familiar with yet is Google Voice. The service
gives you a free local phone number from which you can make and receive unlimited
national calls without paying a dime (their international rates are also some of the lowest
I’ve seen).
How does it work? Google forwards all calls it receives on your Google Voice phone
number to any other phone number(s) you specify. This can be a land line, cell phone, or
any combination of multiple numbers.
Thus, you can give out your Google Voice phone number and when someone calls, you
can have it ring your home phone, your work phone and your cell phone all at the same
time.
But here’s the killer feature… Google Voice lets you decide whether you want incoming
calls to show the actual caller ID of the person calling you, or just your Google Voice
phone number. So if you set things up right, every single call coming in from your new
Google Voice phone number will look like it’s coming from only your Google Voice phone
number.
This is a really good thing if your cell phone plan has a “Top 5 Friends” feature (or
something similar) where you can choose several phone numbers to make and receive
unlimited calls from.
But one Google product you might not be familiar with yet is Google Voice. The service
gives you a free local phone number from which you can make and receive unlimited
national calls without paying a dime (their international rates are also some of the lowest
I’ve seen).
FREE Good Stuff
Google has built up a reputation of giving things away for free. Their Google Docs tools
essentially replace Microsoft Office (for free) --also free). Click here for a list of free Google
services.--
7.Free entertainment. Your local library and parks offer lots of free fun, from books to
movies to concerts. Join their e-mail list to see what’s up. And of course, there’s the
Internet, offering free games as well as magazine and newspaper articles. Just go to the
website of your favorite periodical.
8. Free Unlimited Calling: Make Google Voice One of Your Five/Free
But one Google product you might not be familiar with yet is Google Voice. The service
gives you a free local phone number from which you can make and receive unlimited
national calls without paying a dime (their international rates are also some of the lowest
I’ve seen).
How does it work? Google forwards all calls it receives on your Google Voice phone
number to any other phone number(s) you specify. This can be a land line, cell phone, or
any combination of multiple numbers.
9.Free TV. Thanks to sites like Hulu, you can now watch many popular television shows
online for free. If your favorite shows are free on the web, why pay for cable or satellite?
Check out You Don’t Have to Pay for Cable TV for more.
10.Free telephone calls. Services like Skype, Do amazing things for free, Voice and video
calls to anyone else on Skype Conference calls with three or more people-- Instant
messaging, file transfer and screen sharing
Magicjack for home phone: Just buy the device and no more phone bills. Free Trial Offer--
FREE Local and long distance phone calls.
And with other users for free. Always calling a loved one long distance? If you both get
copies of something like Skype, you can talk all you want without paying a dime. And with
a service like Google Voice, you can get all of your cell phone calls free, too.
How does it work? Google forwards all calls it receives on your Google Voice phone
number to any other phone number(s) you specify. This can be a land line, cell phone, or
any combination of multiple numbers. Thus, you can give out your Google Voice phone
number and when someone calls, you can have it ring your home phone, your work
phone and your cell phone all at the same time.
But here’s the killer feature… Google Voice lets you decide whether you want incoming
calls to show the actual caller ID of the person calling you, or just your Google Voice
phone number.
So if you set things up right, every single call coming in from your new Google Voice
phone number will look like it’s coming from only your Google Voice phone number. This
is a really good thing if your cell phone plan has a “Top 5 Friends” feature (or something
similar) where you can choose several phone numbers to make and receive unlimited
calls from.
How to get a Google Voice phone number
Right now, Google Voice is still in “beta”… meaning it isn’t quite ready for primetime. So,
the only way to get a Google Voice phone number is to get an invitation. You can sign up
to request one from Google, or ask a friend who already uses Google Voice if they were
given any invitations they can pass on. Get an invitation now!.
Request a Google Voice phone number from Google.
But since it’s a cool service, offers dirt cheap international calling, and provides you with a
unified phone number that can ring all your phones (for free!), its probably worth the wait
for your invite to come.m
First, a little warning
What I’m about to propose may be prohibited by your cell phone company. After all, they
want to make as much money as possible from you. So make sure to check your cell
provider’s terms of use before making this your full-time way of calling.
Now the good stuff
Google has built up a reputation of giving things away for free. Their Google Docs tools
essentially replace Microsoft Office (for free) --also free). Click here for a list of free Google
services.--
But one Google product you might not be familiar with yet is Google Voice. The service
gives you a free local phone number from which you can make and receive unlimited
national calls without paying a dime (their international rates are also some of the lowest
I’ve seen).
How does it work? Google forwards all calls it receives on your Google Voice phone
number to any other phone number(s) you specify. This can be a land line, cell phone, or
any combination of multiple numbers.
Thus, you can give out your Google Voice phone number and when someone calls, you
can have it ring your home phone, your work phone and your cell phone all at the same
time.
But here’s the killer feature… Google Voice lets you decide whether you want incoming
calls to show the actual caller ID of the person calling you, or just your Google Voice
phone number. So if you set things up right, every single call coming in from your new
Google Voice phone number will look like it’s coming from only your Google Voice phone
number.
This is a really good thing if your cell phone plan has a “Top 5 Friends” feature (or
something similar) where you can choose several phone numbers to make and receive
unlimited calls from.
But one Google product you might not be familiar with yet is Google Voice. The service
gives you a free local phone number from which you can make and receive unlimited
national calls without paying a dime (their international rates are also some of the lowest
I’ve seen).
FREE Good Stuff
Google has built up a reputation of giving things away for free. Their Google Docs tools
essentially replace Microsoft Office (for free) --also free). Click here for a list of free Google
services.--
7.Free entertainment. Your local library and parks offer lots of free fun, from books to
movies to concerts. Join their e-mail list to see what’s up. And of course, there’s the
Internet, offering free games as well as magazine and newspaper articles. Just go to the
website of your favorite periodical.
8. Free Unlimited Calling: Make Google Voice One of Your Five/Free
But one Google product you might not be familiar with yet is Google Voice. The service
gives you a free local phone number from which you can make and receive unlimited
national calls without paying a dime (their international rates are also some of the lowest
I’ve seen).
How does it work? Google forwards all calls it receives on your Google Voice phone
number to any other phone number(s) you specify. This can be a land line, cell phone, or
any combination of multiple numbers.
9.Free TV. Thanks to sites like Hulu, you can now watch many popular television shows
online for free. If your favorite shows are free on the web, why pay for cable or satellite?
Check out You Don’t Have to Pay for Cable TV for more.
10.Free telephone calls. Services like Skype, Do amazing things for free, Voice and video
calls to anyone else on Skype Conference calls with three or more people-- Instant
messaging, file transfer and screen sharing
Magicjack for home phone: Just buy the device and no more phone bills. Free Trial Offer--
FREE Local and long distance phone calls.
And with other users for free. Always calling a loved one long distance? If you both get
copies of something like Skype, you can talk all you want without paying a dime. And with
a service like Google Voice, you can get all of your cell phone calls free, too.
How does it work? Google forwards all calls it receives on your Google Voice phone
number to any other phone number(s) you specify. This can be a land line, cell phone, or
any combination of multiple numbers. Thus, you can give out your Google Voice phone
number and when someone calls, you can have it ring your home phone, your work
phone and your cell phone all at the same time.
But here’s the killer feature… Google Voice lets you decide whether you want incoming
calls to show the actual caller ID of the person calling you, or just your Google Voice
phone number.
So if you set things up right, every single call coming in from your new Google Voice
phone number will look like it’s coming from only your Google Voice phone number. This
is a really good thing if your cell phone plan has a “Top 5 Friends” feature (or something
similar) where you can choose several phone numbers to make and receive unlimited
calls from.
How to get a Google Voice phone number
Right now, Google Voice is still in “beta”… meaning it isn’t quite ready for primetime. So,
the only way to get a Google Voice phone number is to get an invitation. You can sign up
to request one from Google, or ask a friend who already uses Google Voice if they were
given any invitations they can pass on. Get an invitation now!.
Request a Google Voice phone number from Google.
But since it’s a cool service, offers dirt cheap international calling, and provides you with a
unified phone number that can ring all your phones (for free!), its probably worth the wait
for your invite to come.m
10 Things People Buy They Should Get Free
There are plenty of free things you can pluck from the web as
well as from libraries, parks, banks and other businesses.
Here’s a look at more than a half dozen valuable freebies:
Here’s another look at that list, along with a few more.
1.Free checking. Last week we wrote an article about how, at
many banks, free checking was soon to become fee checking.
But plenty of banks still offer free checking accounts. Some
banks offer a free plan with no minimum balance required.
Ask your local bank.
And you get free online and ATM service too. Chase even
offers $100 for opening such an account. Indeed, a host of
banks and savings and loans offer free checking. So far.
When you’re looking for lower fees, including free checking,
always to look to smaller local banks and credit unions.
2.Free credit reports. You can go to www.knowledgefinancial.
com to direct you for a free look at your credit history once a
year. If the Financial Regulatory Reform bill passes, you might
also one day get a look at your credit score. Read about other
changes ahead here.
3. ''MEDICAL & NURSING EDUCATION CENTER- JOBS,
SCHOOLS, TRAINING, FINANCIAL AID. Nursing News,
Nursing
Events, Nurse Continuing Education. The hospitals with job
position open..
-FREE SCHOLARSHIP FOR SCHOOL--''FREE GOVERNMENT
GRANTS MONEY FOR SCHOOL---LOW
INTEREST RATE LOANS FROM THE NATION LARGEST
SOURCES OF LOCAL, NATIONAL SCHOLARSHIP
4.Free information calls. Google 411 will get you information
numbers free, so don’t get ripped off by your cell phone
provider. When you need directory assistance, dial 800-GOOG-
411.
5.Free scholarship search. Plenty of websites offer free
searches for scholarships. There’s even a company called
Free Scholarship Searches that offers links to 40 websites
that offer free scholarship searches. And check out our recent
story, 6 Tips to Pay Less for a College Degree
6. FREE Good Stuff
Google has built up a reputation of giving things away for free.
Their Google Docs tools essentially replace Microsoft Office
(for free) --also free). Click here for a list of free Google
services.--
7.Free entertainment. Your local library and parks offer lots of
free fun, from books to movies to concerts. Join their e-mail
list to see what’s up. And of course, there’s the Internet,
offering free games as well as magazine and newspaper
articles. Just go to the website of your favorite periodical.
8. Free Unlimited Calling: Make Google Voice
One of Your Five/Free
But one Google product you might not be familiar with yet is
Google Voice. The service gives you a free local phone
number from which you can make and receive unlimited
national calls without paying a dime (their international rates
are also some of the lowest I’ve seen).
How does it work? Google forwards all calls it receives on
your Google Voice phone number to any other phone number
(s) you specify. This can be a land line, cell phone, or any
combination of multiple numbers.
9.Free TV. Thanks to sites like Hulu, you can now watch many
popular television shows online for free. If your favorite shows
are free on the web, why pay for cable or satellite? Check out
You Don’t Have to Pay for Cable TV for more.
10.Free telephone calls. Services like Skype, Do amazing
things for free, Voice and video calls to anyone else on Skype
Conference calls with three or more people-- Instant
messaging, file transfer and screen sharing
Magicjack for home phone: Just buy the device and no more
phone bills. Free Trial Offer--FREE Local and long distance
phone calls.
And with other users for free. Always calling a loved one long
distance? If you both get copies of something like Skype, you
can talk all you want without paying a dime. And with a service
like Google Voice, you can get all of your cell phone calls free,
too.
There are plenty of free things you can pluck from the web as
well as from libraries, parks, banks and other businesses.
Here’s a look at more than a half dozen valuable freebies:
Here’s another look at that list, along with a few more.
1.Free checking. Last week we wrote an article about how, at
many banks, free checking was soon to become fee checking.
But plenty of banks still offer free checking accounts. Some
banks offer a free plan with no minimum balance required.
Ask your local bank.
And you get free online and ATM service too. Chase even
offers $100 for opening such an account. Indeed, a host of
banks and savings and loans offer free checking. So far.
When you’re looking for lower fees, including free checking,
always to look to smaller local banks and credit unions.
2.Free credit reports. You can go to www.knowledgefinancial.
com to direct you for a free look at your credit history once a
year. If the Financial Regulatory Reform bill passes, you might
also one day get a look at your credit score. Read about other
changes ahead here.
3. ''MEDICAL & NURSING EDUCATION CENTER- JOBS,
SCHOOLS, TRAINING, FINANCIAL AID. Nursing News,
Nursing
Events, Nurse Continuing Education. The hospitals with job
position open..
-FREE SCHOLARSHIP FOR SCHOOL--''FREE GOVERNMENT
GRANTS MONEY FOR SCHOOL---LOW
INTEREST RATE LOANS FROM THE NATION LARGEST
SOURCES OF LOCAL, NATIONAL SCHOLARSHIP
4.Free information calls. Google 411 will get you information
numbers free, so don’t get ripped off by your cell phone
provider. When you need directory assistance, dial 800-GOOG-
411.
5.Free scholarship search. Plenty of websites offer free
searches for scholarships. There’s even a company called
Free Scholarship Searches that offers links to 40 websites
that offer free scholarship searches. And check out our recent
story, 6 Tips to Pay Less for a College Degree
6. FREE Good Stuff
Google has built up a reputation of giving things away for free.
Their Google Docs tools essentially replace Microsoft Office
(for free) --also free). Click here for a list of free Google
services.--
7.Free entertainment. Your local library and parks offer lots of
free fun, from books to movies to concerts. Join their e-mail
list to see what’s up. And of course, there’s the Internet,
offering free games as well as magazine and newspaper
articles. Just go to the website of your favorite periodical.
8. Free Unlimited Calling: Make Google Voice
One of Your Five/Free
But one Google product you might not be familiar with yet is
Google Voice. The service gives you a free local phone
number from which you can make and receive unlimited
national calls without paying a dime (their international rates
are also some of the lowest I’ve seen).
How does it work? Google forwards all calls it receives on
your Google Voice phone number to any other phone number
(s) you specify. This can be a land line, cell phone, or any
combination of multiple numbers.
9.Free TV. Thanks to sites like Hulu, you can now watch many
popular television shows online for free. If your favorite shows
are free on the web, why pay for cable or satellite? Check out
You Don’t Have to Pay for Cable TV for more.
10.Free telephone calls. Services like Skype, Do amazing
things for free, Voice and video calls to anyone else on Skype
Conference calls with three or more people-- Instant
messaging, file transfer and screen sharing
Magicjack for home phone: Just buy the device and no more
phone bills. Free Trial Offer--FREE Local and long distance
phone calls.
And with other users for free. Always calling a loved one long
distance? If you both get copies of something like Skype, you
can talk all you want without paying a dime. And with a service
like Google Voice, you can get all of your cell phone calls free,
too.
6 Tips to Pay Less for a College Degree
Judging by the headlines, it’s easy to believe the cost of college puts it out of
reach for all but the most affluent. According to the College Board, average
annual tuition at a four-year private college now tops $26,000. If you just look
at the sticker price, four years at a private university approaches the cost of
a Rolls Royce.
But that doesn’t mean only the rich need apply. While the sticker price may be
$26,000, the College Board says the average price actually paid at private
colleges is less than $9,000. How can that be?
Here are six strategies you can harness to get your degree at a discount.
1. Scholarships
The search for scholarships isn’t just for those just graduating from high
school. It’s a process that should continue throughout your college career. It’
s something you should never pay a fee for.
Start with the web. Here are some sites that can hook you up with free
scholarship searches:
•College Board
•ScholarshipCoach.com
•FinAid.org
•College-Scholarships.com
•College Answer
And don’t forget to beat the local bushes as well. Awards from the local
Rotary, YMCA or Kiwanis Club may not be as big or as convenient to apply for,
but there’s also less competition. You can find out about home-grown awards
at your local library or high schools.
2. Accelerated Degrees
While it’s not easy, it’s possible to earn a four-year degree in three years at
some schools and in some fields by taking accelerated classes: essentially
stuffing a full semester’s worth of work into six- or eight-week classes. Not
all schools offer this option, but those that do can save you a ton of tuition
money.
3. Start at a less expensive school
Consider a community college or other less expensive option for the first two
years, then transfer to the university whose name you’d like to see on your
degree. This is probably the single biggest way to save on a college
education. Not only do you save on tuition costs, attending a community
college might also allow you to stay under your parents’ roof and save
housing expenses as well.
Be careful. Make sure the courses you’re taking at your less expensive
school will transfer. Look for an articulation agreement from the school
where you intend to graduate to see which schools they accept credits from,
as well as the grades they expect you to maintain in order to transfer.
4. Love the school that loves you
In the video above, University of Miami Financial Aid Administrator Jim Bauer
says, “”You can’t shop for a college the way you shop for a car. If you walk in
to buy a car, you aren’t going to sit down with a salesman and have them say,
you’re a good guy, you’ve lived a good life so far, so we’re going to knock
another $10,000 off. That doesn’t happen in other kinds of purchase other
than essentially education.”
Why would a school make tuition more affordable for some students?
Because they want those students. While Harvard might not be knocking
down your door, there could be other schools that want you enough to offer
enticing discounts, aid and scholarships.
What you have to do is look for the school that’s looking for you. Obviously,
the more you have to offer, the more of these schools you’ll find. But consult
college guides, comparing your grades and SAT scores to the averages at
various schools. If you’d fit in the top 20% to 25%, consider applying.
While this strategy may not land you in the university of your dreams, there’s
still the option of transferring later – and saving a ton of money in the
meantime.
5. Check out schools that don’t charge tuition
According to this article in Business Week, there are at least 11 schools that
offer a tuition-free education for some students. Here they are:
6. Volunteer for loan forgiveness
If you’re going to incur debt to get your degree, consider exchanging post-
graduate community service for federal education debt forgiveness.
Debt-forgiveness programs are available for teachers, medical
professionals, lawyers, nurses and others.
•For medical degrees, the National Health Services
•For teachers, see this Federal Student Aid .---
•Nurses should check out the Nursing Education Loan Repayment Program.--
•Law students should ask their law school about loan forgiveness or loan
repayment programs, but here’s an
American Bar Association list of law schools that offer loan forgiveness.---
•Peace Corps volunteers can get forgiveness of Perkins loans: here’s the info.
---
•Volunteer for AmeriCorps or Volunteers in Service to America (VISTA) and
you can get educational awards of $4,725 for each year of service. These
awards can be applied to student loans or future education expenses.
Judging by the headlines, it’s easy to believe the cost of college puts it out of
reach for all but the most affluent. According to the College Board, average
annual tuition at a four-year private college now tops $26,000. If you just look
at the sticker price, four years at a private university approaches the cost of
a Rolls Royce.
But that doesn’t mean only the rich need apply. While the sticker price may be
$26,000, the College Board says the average price actually paid at private
colleges is less than $9,000. How can that be?
Here are six strategies you can harness to get your degree at a discount.
1. Scholarships
The search for scholarships isn’t just for those just graduating from high
school. It’s a process that should continue throughout your college career. It’
s something you should never pay a fee for.
Start with the web. Here are some sites that can hook you up with free
scholarship searches:
•College Board
•ScholarshipCoach.com
•FinAid.org
•College-Scholarships.com
•College Answer
And don’t forget to beat the local bushes as well. Awards from the local
Rotary, YMCA or Kiwanis Club may not be as big or as convenient to apply for,
but there’s also less competition. You can find out about home-grown awards
at your local library or high schools.
2. Accelerated Degrees
While it’s not easy, it’s possible to earn a four-year degree in three years at
some schools and in some fields by taking accelerated classes: essentially
stuffing a full semester’s worth of work into six- or eight-week classes. Not
all schools offer this option, but those that do can save you a ton of tuition
money.
3. Start at a less expensive school
Consider a community college or other less expensive option for the first two
years, then transfer to the university whose name you’d like to see on your
degree. This is probably the single biggest way to save on a college
education. Not only do you save on tuition costs, attending a community
college might also allow you to stay under your parents’ roof and save
housing expenses as well.
Be careful. Make sure the courses you’re taking at your less expensive
school will transfer. Look for an articulation agreement from the school
where you intend to graduate to see which schools they accept credits from,
as well as the grades they expect you to maintain in order to transfer.
4. Love the school that loves you
In the video above, University of Miami Financial Aid Administrator Jim Bauer
says, “”You can’t shop for a college the way you shop for a car. If you walk in
to buy a car, you aren’t going to sit down with a salesman and have them say,
you’re a good guy, you’ve lived a good life so far, so we’re going to knock
another $10,000 off. That doesn’t happen in other kinds of purchase other
than essentially education.”
Why would a school make tuition more affordable for some students?
Because they want those students. While Harvard might not be knocking
down your door, there could be other schools that want you enough to offer
enticing discounts, aid and scholarships.
What you have to do is look for the school that’s looking for you. Obviously,
the more you have to offer, the more of these schools you’ll find. But consult
college guides, comparing your grades and SAT scores to the averages at
various schools. If you’d fit in the top 20% to 25%, consider applying.
While this strategy may not land you in the university of your dreams, there’s
still the option of transferring later – and saving a ton of money in the
meantime.
5. Check out schools that don’t charge tuition
According to this article in Business Week, there are at least 11 schools that
offer a tuition-free education for some students. Here they are:
6. Volunteer for loan forgiveness
If you’re going to incur debt to get your degree, consider exchanging post-
graduate community service for federal education debt forgiveness.
Debt-forgiveness programs are available for teachers, medical
professionals, lawyers, nurses and others.
•For medical degrees, the National Health Services
•For teachers, see this Federal Student Aid .---
•Nurses should check out the Nursing Education Loan Repayment Program.--
•Law students should ask their law school about loan forgiveness or loan
repayment programs, but here’s an
American Bar Association list of law schools that offer loan forgiveness.---
•Peace Corps volunteers can get forgiveness of Perkins loans: here’s the info.
---
•Volunteer for AmeriCorps or Volunteers in Service to America (VISTA) and
you can get educational awards of $4,725 for each year of service. These
awards can be applied to student loans or future education expenses.
A step by step guide to
gaining control of your
financial life.
Setting priorities
Here's help for the first -- and often the
hardest -- step in achieving your financial
goals: deciding which goals to pursue.
LESSON 2
Making a budget, saving money
How to bring your spending under control,
so that you get the most out of every dollar.
LESSON 3
Basics of banking and saving
Here's how to get the best banking
services at the best price, either online or
off.
LESSON 4
Basics of investing
An introduction to making money in stocks,
bonds and mutual funds REIT'S, real
estate.
LESSON 5
Investing in stocks
The market can be a great place to turn
savings into wealth -- or to lose your shirt.
Here are some fundamentals of investing
wisely.
LESSON 6
Investing in mutual funds
It's a mutual-fund jungle out there. Here's
how to create a simple portfolio that works.
LESSON 7
Investing in bonds
Bonds can provide a steady and
reasonably secure income, while adding
ballast to your portfolio--but only if you
really understand what you're buying.
LESSON 8
Buying a home
Owning your home is part of the American
Dream, but if you’re not prepared, buying it
can be a nightmare. Here are some
fundamentals for buyers and sellers.
LESSON 9
Controlling debt
You've got to know when to hold debt--and
when to fold it. This lesson shows you
how to accomplish your financial goals by
making debt work for you.
LESSON 10
Home Selling
WAYS TO SELL A PROPERTY FAST AND
EASY FOR THE TOP PRICE!
Selling a home is a big decision and
requires a lot of work. From getting the
house ready to reviewing the escrow
papers, our helpful guide will walk you
through the process of selling your home.
LESSON 11
INSURANCE
Health Insurance, Life Insurance, Home
Insurance, Car Insurance
Great things to know about insurance
Buying a car, Auto loans. Great things to
know:
Buying a car is like no other shopping
experience. The choices seem to be
endless. This lesson helps you sort
through your options.
FINANCIAL FREEDOM: A SMARTEST WAY TO
PREPARE A BETTER FUTURE. YOUR PATH TO
WEALTH STARTS RIGHT NOW.
It's a fact: today, anyone can become a
millionaire
– In the history of the world, there has
never been
a better time to create wealth than right
here, right
now in real estate.
gaining control of your
financial life.
Setting priorities
Here's help for the first -- and often the
hardest -- step in achieving your financial
goals: deciding which goals to pursue.
LESSON 2
Making a budget, saving money
How to bring your spending under control,
so that you get the most out of every dollar.
LESSON 3
Basics of banking and saving
Here's how to get the best banking
services at the best price, either online or
off.
LESSON 4
Basics of investing
An introduction to making money in stocks,
bonds and mutual funds REIT'S, real
estate.
LESSON 5
Investing in stocks
The market can be a great place to turn
savings into wealth -- or to lose your shirt.
Here are some fundamentals of investing
wisely.
LESSON 6
Investing in mutual funds
It's a mutual-fund jungle out there. Here's
how to create a simple portfolio that works.
LESSON 7
Investing in bonds
Bonds can provide a steady and
reasonably secure income, while adding
ballast to your portfolio--but only if you
really understand what you're buying.
LESSON 8
Buying a home
Owning your home is part of the American
Dream, but if you’re not prepared, buying it
can be a nightmare. Here are some
fundamentals for buyers and sellers.
LESSON 9
Controlling debt
You've got to know when to hold debt--and
when to fold it. This lesson shows you
how to accomplish your financial goals by
making debt work for you.
LESSON 10
Home Selling
WAYS TO SELL A PROPERTY FAST AND
EASY FOR THE TOP PRICE!
Selling a home is a big decision and
requires a lot of work. From getting the
house ready to reviewing the escrow
papers, our helpful guide will walk you
through the process of selling your home.
LESSON 11
INSURANCE
Health Insurance, Life Insurance, Home
Insurance, Car Insurance
Great things to know about insurance
Buying a car, Auto loans. Great things to
know:
Buying a car is like no other shopping
experience. The choices seem to be
endless. This lesson helps you sort
through your options.
FINANCIAL FREEDOM: A SMARTEST WAY TO
PREPARE A BETTER FUTURE. YOUR PATH TO
WEALTH STARTS RIGHT NOW.
It's a fact: today, anyone can become a
millionaire
– In the history of the world, there has
never been
a better time to create wealth than right
here, right
now in real estate.
MUTUAL FUNDS
There are two kinds of mutual funds: open-end and closed-end.
Open-end funds create more shares as more money is received by the fund and are
bought or sold by the fund or a broker. Closed-end funds have a fixed number of shares
and are bought or sold on stock exchanges using a broker.
Given Mary’s goals of retirement and income, safety and preservation of capital is
important. Harriet described to Mary how mutual funds are classified by risk.
Aggressive growth: Greatest long-term growth generally in small to medium cap stocks.
Highly risky.
Growth: Long term growth generally in large cap growth companies with solid track
records. Less risky than aggressive.
Growth and Income: Long-term growth with emphasis on stable companies that pay
dividends. Moderate risk.
Income: Generally consists of bonds or high-paying dividend stock such as utilities.
Moderate to low risk (no junk bonds).
Harriet also explained the often-used terminology for naming funds.
Stock funds: Consist of large/medium/small cap stocks, value or growth companies.
Global funds: The manger invests in U.S and foreign stocks.
Foreign funds: Fund invests in developed foreign and emerging markets.
Index funds: These funds track or mirror the performance of particular indexes. These
funds have low stock turnover, thus minimal capital gains.
Balanced funds: A combination of stocks and bonds to reduce risk.
Bond Funds: A fund consisting of bonds, such as government, corporate or municipals.
Money Market Funds: Consist of highly liquid and safe short term investments and pay a
higher interest rate than a savings account.
There are two kinds of mutual funds: open-end and closed-end.
Open-end funds create more shares as more money is received by the fund and are
bought or sold by the fund or a broker. Closed-end funds have a fixed number of shares
and are bought or sold on stock exchanges using a broker.
Given Mary’s goals of retirement and income, safety and preservation of capital is
important. Harriet described to Mary how mutual funds are classified by risk.
Aggressive growth: Greatest long-term growth generally in small to medium cap stocks.
Highly risky.
Growth: Long term growth generally in large cap growth companies with solid track
records. Less risky than aggressive.
Growth and Income: Long-term growth with emphasis on stable companies that pay
dividends. Moderate risk.
Income: Generally consists of bonds or high-paying dividend stock such as utilities.
Moderate to low risk (no junk bonds).
Harriet also explained the often-used terminology for naming funds.
Stock funds: Consist of large/medium/small cap stocks, value or growth companies.
Global funds: The manger invests in U.S and foreign stocks.
Foreign funds: Fund invests in developed foreign and emerging markets.
Index funds: These funds track or mirror the performance of particular indexes. These
funds have low stock turnover, thus minimal capital gains.
Balanced funds: A combination of stocks and bonds to reduce risk.
Bond Funds: A fund consisting of bonds, such as government, corporate or municipals.
Money Market Funds: Consist of highly liquid and safe short term investments and pay a
higher interest rate than a savings account.
Seven C’s of Commercial Lending / Commercial Real
Estate
Over the past years we have seen our fair share of
good and bad deals. The majority of deals that get
declined usually do so because they fail in several of
the areas below. Hopefully before you submit your deal
you will take the time to review the information below
and see if your loan request can be approved. If you
take the time to ask the hard questions upfront then
you can make an informed decision and that is the
foundation of a successful commercial transaction.
Some are more important than others. We can
overcome weakness in one, maybe two of these areas.
But not all of them.
Credit
Credit has to be reasonably good, and problems need to
be explained and supported with valid documentation.
Most lenders require a 650 mid-score give or take. Now
some lenders will lend with scores between 600 - 640
but when they do the interest rate will more than likely
be higher and/or there will be more points charged for
the transaction. Just like the residential business there
are sub-prime commercial mortgage lenders that
penalize the borrower for having anything less than
perfect credit. Credit is one of the more important parts
of the loan transaction. But not the only one. If credit is
marginal and past history demonstrates that it has
always been bad, then more than likely the loan will not
be approved.
Capacity
The business should be able to support its debts and
expenses and should be profitable. We need to provide
3 years of business tax returns and the most recent
year to date profit and loss statement with the loan
request. Lenders are looking for the ability of the
business to service its current and future debt and the
rule of thumb is to look at the last 3 years of returns. A
lender is looking for the business to continue to remain
profitable every year. With a profit and loss statement
the lender is also looking at the cash flow of the
business. Typically no cash flow, no loan. It is pretty
much that simple. Projections are useful and
necessary but even if we try to convince the lender that
by approving this loan a lot of money will be made to
pay back the loan it won’t work.
Capital
Money that the client or investors are putting in or
equity you already have in the business. Lenders will
always want to make sure that the borrower(s) have
“skin in the game” or what is commonly known as
equity. It is basically the amount of risk that a borrower
has in the transaction. There is no such thing as 100%
financing. Most lenders want to see at least 20 to 50
percent equity into the transaction and the reason is
simple. If something goes wrong and there is a lot of
cash into the transaction, the borrower will tend to do
whatever they can to save the loan and make sure it
does not go into foreclosure. Now just to clarify, equity
is cash in the deal. It is not equity that has been
accumulated because the land was purchased twenty
years ago and over time it has increased in value. It not
the difference between sales price and appraised
value. It is not the difference between loan to cost and
loan to value. It is also not seller financing.
Collateral
The value of the asset(s) that secure the loan. Every
lender will require some sort of an appraisal on the
subject property. It is necessary in the commercial
lending business. The appraisal is ordered by the
lender from a 3rd party vendor that has no relationship
in the transaction other than the report. Lenders want
to make sure that results of the appraisal are not
skewed or influenced in anyway. Do not order an
appraisal until your loan is approved.
Character
Of the borrower and guarantor(s). When a lender
requests a resume they want to see what the borrower
has been doing for the last five to ten years. Past
performance will indicate the probability of future
success. A proven track record of being a real estate
investor or running a business that can be documented
improves the likelihood of approval. If not, then they will
have to explain in detail why they are good risk for this
loan.
Conditions
The economy, industry trends, anything external that
affects a business. Lenders will pass on deals
because they will have access to information that will
give them a broad picture of what is going in an industry
sector. This changes as economic conditions change.
For example, the past two years hotels, motels, car
washes have been difficult to finance since they rely on
consumer discretionary income. In other words any
real estate transaction that relies too heavily on a
consumer discretionary income to stay profitable might
not be approved for financing until the economy
improves.
Commitment
The ability and willingness to succeed, which involves
guaranteeing the debt personally. Lenders always
want to make sure that borrower(s) are as dedicated to
getting the loan financed and willing to share the risk as
they are. Lenders want to make sure that the borrower
(s) have the financial stability and some reserve
liquidity to stay afloat during the tough times.
Commitment on behalf of a borrower can be the
difference between being approved and being declined.
If the borrower is asset heavy but cash poor then you
can expect an unfavorable loan decision.
Estate
Over the past years we have seen our fair share of
good and bad deals. The majority of deals that get
declined usually do so because they fail in several of
the areas below. Hopefully before you submit your deal
you will take the time to review the information below
and see if your loan request can be approved. If you
take the time to ask the hard questions upfront then
you can make an informed decision and that is the
foundation of a successful commercial transaction.
Some are more important than others. We can
overcome weakness in one, maybe two of these areas.
But not all of them.
Credit
Credit has to be reasonably good, and problems need to
be explained and supported with valid documentation.
Most lenders require a 650 mid-score give or take. Now
some lenders will lend with scores between 600 - 640
but when they do the interest rate will more than likely
be higher and/or there will be more points charged for
the transaction. Just like the residential business there
are sub-prime commercial mortgage lenders that
penalize the borrower for having anything less than
perfect credit. Credit is one of the more important parts
of the loan transaction. But not the only one. If credit is
marginal and past history demonstrates that it has
always been bad, then more than likely the loan will not
be approved.
Capacity
The business should be able to support its debts and
expenses and should be profitable. We need to provide
3 years of business tax returns and the most recent
year to date profit and loss statement with the loan
request. Lenders are looking for the ability of the
business to service its current and future debt and the
rule of thumb is to look at the last 3 years of returns. A
lender is looking for the business to continue to remain
profitable every year. With a profit and loss statement
the lender is also looking at the cash flow of the
business. Typically no cash flow, no loan. It is pretty
much that simple. Projections are useful and
necessary but even if we try to convince the lender that
by approving this loan a lot of money will be made to
pay back the loan it won’t work.
Capital
Money that the client or investors are putting in or
equity you already have in the business. Lenders will
always want to make sure that the borrower(s) have
“skin in the game” or what is commonly known as
equity. It is basically the amount of risk that a borrower
has in the transaction. There is no such thing as 100%
financing. Most lenders want to see at least 20 to 50
percent equity into the transaction and the reason is
simple. If something goes wrong and there is a lot of
cash into the transaction, the borrower will tend to do
whatever they can to save the loan and make sure it
does not go into foreclosure. Now just to clarify, equity
is cash in the deal. It is not equity that has been
accumulated because the land was purchased twenty
years ago and over time it has increased in value. It not
the difference between sales price and appraised
value. It is not the difference between loan to cost and
loan to value. It is also not seller financing.
Collateral
The value of the asset(s) that secure the loan. Every
lender will require some sort of an appraisal on the
subject property. It is necessary in the commercial
lending business. The appraisal is ordered by the
lender from a 3rd party vendor that has no relationship
in the transaction other than the report. Lenders want
to make sure that results of the appraisal are not
skewed or influenced in anyway. Do not order an
appraisal until your loan is approved.
Character
Of the borrower and guarantor(s). When a lender
requests a resume they want to see what the borrower
has been doing for the last five to ten years. Past
performance will indicate the probability of future
success. A proven track record of being a real estate
investor or running a business that can be documented
improves the likelihood of approval. If not, then they will
have to explain in detail why they are good risk for this
loan.
Conditions
The economy, industry trends, anything external that
affects a business. Lenders will pass on deals
because they will have access to information that will
give them a broad picture of what is going in an industry
sector. This changes as economic conditions change.
For example, the past two years hotels, motels, car
washes have been difficult to finance since they rely on
consumer discretionary income. In other words any
real estate transaction that relies too heavily on a
consumer discretionary income to stay profitable might
not be approved for financing until the economy
improves.
Commitment
The ability and willingness to succeed, which involves
guaranteeing the debt personally. Lenders always
want to make sure that borrower(s) are as dedicated to
getting the loan financed and willing to share the risk as
they are. Lenders want to make sure that the borrower
(s) have the financial stability and some reserve
liquidity to stay afloat during the tough times.
Commitment on behalf of a borrower can be the
difference between being approved and being declined.
If the borrower is asset heavy but cash poor then you
can expect an unfavorable loan decision.
COMING SOON
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'' Insurance: Ways to Reduce
Your Insurance Premium.. ''
Learn More About: Tern
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Insurance. Which One Is The
Best ?
'' How To Obtain An Insurance
License At No Cost, Free
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You Should Pay Attention To In
a Policy'' LEARN MORE..
'' Essential Stuffs People Need
To Know About Insurance...
'' Learn Everything About
Different Types Of Life
Insurance'' And History Of Insurance
Arount The Globe...
Your Insurance Premium.. ''
Learn More About: Tern
Insurance & Whole Life
Insurance. Which One Is The
Best ?
'' How To Obtain An Insurance
License At No Cost, Free
License To Start Making Money
With The Insurance
Companies...
'' Insurance Important Clauses
You Should Pay Attention To In
a Policy'' LEARN MORE..
'' Essential Stuffs People Need
To Know About Insurance...
'' Learn Everything About
Different Types Of Life
Insurance'' And History Of Insurance
Arount The Globe...
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