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Category Archives: Finance

Hard Money Loan

Hard money loan is going to solve the problem if it is known properly and the usage of this loan can be amplified if you follow the terms and conditions accurately. This particular loan is a kind which is running from years repetitively in a general manner. One has to ensure the loan by keeping any of his commercial property in the mortgage. That is the way how you can avail the loan. But first, you need to know what a hard money financing help is without which it would be like a big tree without fruits.

Hard Money Financing:
Secured by your commercial property this is a loan which can be avail easily without having much trouble. Without any prepayment penalty, this loan has become one of the most reliable solutions of the needy. But the most important thing you have to know is the terms and conditions of the loan along with the full policies.

Loan Size – The hard money financing can be availed with the huge amount of $200k and above which differs from one institution to another.

Closing Time – One of the main features that a consumer would like to see in the loan policy is the closing time. Whereas, the closing time of this particular loan is surprisingly 10 days which can be the major point for obtaining the loan.

LTV – Up to 75% of LTV, this loan speaks with its action rather than the words.
Loan Term – Valid from 1-3 years, this loan can be extended further and this feature often becomes one of the attractions for the consumers.
There are some worthy reasons why people get motivated for this loan. Some of the beneficial things of the loan are given below:
• Rapid funding of the loan is the first and foremost benefit. It is the most important point as per some of the purchasers.
• The flexible term is one of the major charms as you can get it as you want.
• Lack of prepayment penalties is also a point when you talk about the benefits of the hard money loan.

Information of Money Matters

Follow the Leader

It’s a good idea to let your children accompany you to the bank and stores from the time they are infants so they can begin to understand the concept of money exchange. Explain to your toddlers, young children and teens exactly what you are doing and how much it costs. Allow them to see the exchange of money, checks, and credit cards between you and the merchants. Be careful to never make your children feel guilty about how much the bills cost, because that can cause damage to their self-esteem and self-worth. Try to explain each step from where you get the money, where you store it, and how you spend it so they’ll know that it’s a whole revolving process. Money management matters. Teach your children early so they can be wise about their finances.

Here Piggy, Piggy

At any given point during the day, you might see a new mother desperately prying coins from her 1-year-old’s mouth. What this Mom doesn’t realize is that maybe her child was eating the money because he had absolutely no idea what to do with it! We assume toddlers are just too young to understand money, but that’s not the case. Children love animals, so why not give your toddler a piggy of his own? And, when your toddler picks up loose change off of the floor, he will instead come straight to Mommy so he can have the treat of putting it in his bank. Once he breaks the stage of putting coins into his mouth, encourage your child to independently ‘feed’ his Piggy Bank every day so the piggy can grow and be healthy and strong. When the bank fills up, reward your smart toddler’s savings by taking it to the bank for dollar bills. Let your child buy a special treat that he’s been looking forward to with his own money. There are even toys that emulate this process with pigs that sing when kids drop plastic coins into their backs for Moms that don’t want their children to handle real money yet.

Treasure Hunt Time

This is a sure way to get children excited to learn about money matters. Save yourself time and stop breaking your back by constantly picking up coins from the floor, in the laundry room, beneath the sofa cushions, and everywhere else money disappears into. Instead of wearing yourself out, when the kids begin to look bored shout out, ‘IT’S TREASURE HUNT TIME!!’ If you feel up to it and have time, you can even come equipped with a bunch of scarves so they can dress up and pretend to be Pirates. Let your children know the safety rules of the Treasure Hunt (like, no crawling into the washing machine). Tell them they will be able to keep any money they find to save up for something special.

One Mom had a blast doing this with her 6- and 8-year-olds, and while they were busy, she had time to complete some of her own work online. However, when her daughter’s teacher called home the next day concerned that she had brought a $100 bill to school, Mom had to let the kids know that ‘finding change’ did not include going through Daddy’s pants pockets or Mommy’s purse! So, to avoid any confusion, set those rules clearly beforehand.

Control of Your Finances

Control your expenditure. It’s very easy for money to just “go”. However, if you pay strict attention on a daily basis to where it’s being spent, you will feel much more in control. Consider keeping a diary of daily expenditure for a few weeks. The results may surprise you, but more importantly may help you to target areas where cutbacks can be made. If you find that despite all your efforts, you aren’t coping financially and your debts are growing – get help immediately. There is lots of free advice available, so make use of it. Don’t just worry about your problems – worrying doesn’t solve anything. Neither does burying your head in the sand and hoping your troubles will somehow just disappear. Speak to your creditors as soon as you know you have a problem. Don’t wait until they are harassing you for missed payments.

Pay the essentials first. Make sure to put by every month, enough money to pay items like the mortgage, necessary insurances, utility bills, food, travel expenses for work.

Try to create a small emergency fund. As soon as you are paid, whether weekly or monthly, put a small sum aside for contingencies. If you can do this immediately you are paid, you won’t miss the money. No matter how well you budget, there will always be unexpected expense and if you have the means to cover it, this will ease your stress levels considerably.

As well as trying to decrease expenditure, look around for ways to increase income too. You may have a particular skill that people would be willing to pay you for, such as gardening, painting and decorating, book keeping, Internet skills, or animal care. Look through all the junk you have stored at home. Books, CD’s, clothes, items of furniture, all can be turned in cash through eBay or car boot sales. If you have a spare room, consider renting it out.Foreign students who are only looking for accommodation for a few weeks at a time, give a gentle introduction to see if you would be happy living with this sort of arrangement.

About Handle Money

First things first. You just gotta KNOW. Financial freedom is a conscious state of living–no more mindless spending!

You must know three things:

  1. What you have
  2. Where you have it
  3. Where it goes

Sit down and figure out exactly what income and assets you have and where you have them. Then identify all of your liabilities and expenses. Where is the money going each month?

Until you know, you won’t be able to act in choice. This gets to the issue of “WHO you want to be around money”. Do you want to be someone in control? Or do you want to be someone who AVOIDS money issues?

Create a budget

Once you know what’s currently going on, you can then set up your plan for what will go on from this day forward. This will be your budget.

I challenge you to write your budget differently than most financial plans will. I want for you to have a VALUES CENTERED plan that allows you achieve what you want to accomplish, regardless of your income.

  1. First, list those things in life you MOST VALUE. (things that lead to fulfillment)
  2. Then list the things you NEED to be at your best (that bring satisfaction).
  3. Then list the things you WANT (that bring gratification).

Put a plan together that support you in directing your money where your VALUES are first. Then put money toward your needs and priorities. Finally, you can fund the “wants”. Many people do it backwards…wants first, then needs, then values –which usually leads to feeling dissatisfied and unfulfilled because there isn’t enough money left to put things away for what you most value. And that creates inner conflict–and drives up the spending on wants (which never solves the conflict).

For example, if you value creativity, your financial plan should put a percentage of your income into ways for you to express creativity. If it’s adventure, are you saving for special trips and adventures? If you value learning, are you budgeting for more opportunities to grow and learn or are you saving for your children’s learning? If you value security are you saving for your future retirement and emergencies? I’m not saying go wild here. But if you put just 5-10% of your income toward your top few values you will notice a much deeper level of fulfillment in your life.

If you find a shortfall between your income and your spending, what can you do?
Well, it’s a basic math issue–in order to achieve your financial goals you have to make more than you spend (or spend less than you make!). Your three options are:

  • Figure out ways you can spend less
  • Find ways to make more
  • Do both

Quickly Earn Extra Money

One of the easiest ways for you to make money is to sell something that you no longer need. Most of us have items lying around the home, in our garage or perhaps in our closets that we are not using any longer. Yard sales can be utilized to sell those items in a weekend and you will typically find that you are making anywhere from several hundred to a couple thousand dollars.

Of course, it is going to take some time for you to put those items together and then you will use a weekend actually having the yard sale. It can be quite rewarding, however, if it is done properly.

If a yard sale is not something that you want but you still have items that you would like to sell, you can do so on the Internet. Websites such as eBay and Craigslist can help you to sell those items and to make a tidy profit. Depending upon what you are selling and how long you plan on running the ad, it may take you anywhere from a few days to a week or longer to get the money that you need. You are also going to need to take the time to put those items online and that also involves a certain degree of technical knowledge. If you take your time and look at some of the tutorials that are available, you would be surprised with how easy it is to sell your items on the Internet.

Do you have any jewelry around your home that you would like to sell? You can sell Tiffany jewelry, sell diamond ring parts or even sell broken gold chains. The jewelry market is rather big today and the price of gold just continues to go higher. If you sell these items, you can expect to put some cash in your pocket almost immediately. The amount of money that you can make will vary from one place to another so it is a good idea for you to shop around a bit before you actually sell those items.

Hard Money Lenders

Hard money lenders help in rehabbing houses by allowing investors to buy and fix and flip a house with zero personal money. Here’s how this amazing system works:

For example, you are a rehabber and you found a house that is selling for $50,000. The fixer upper home needs around $10,000 in repairs to bring it to a good condition. You will need another $10,000 for closing costs and other expenses, including possible loan interest. That means you will need $70,000 to buy a house, repair it, and then sell it. That’s your total expenses.

Let’s say that the value of the property in good condition is $100,000. This value, also known as the after repair value (ARV), is where hard money lenders will base the amount they will lend you. Although rates vary across the country, the most usual percentages you’ll find are between 60% and 70%. If the lender agrees to lend you 70% of the ARV, that means you will get a $70,000 loan. That also means that you will be able to buy a house, repair it, and then sell it using hard money financing alone.

Simple logic will also tell us that you will earn $30,000 from a rehabbing project without having to spend a single dollar from your personal bank account. If you need to pay these lenders $5,000 or $6,000 as interest but will earn $30,000, will you still feel that you were taken advantage of?

Unlike hard money lenders, traditional lenders won’t give you $70,000 in this case. The highest amount you will get from is around $50,000 or the amount needed to buy a house in its current condition. If you tap traditional lenders, you will need to source another $20,000 from other sources just to proceed with a project. When you’re a rehabber, you just don’t have the time for that hassle. It will also be harder to secure loans from other banks if they knew that you have an outstanding loan with another lender.

Free Unclaimed Money

When an owner of property forgets or fails to claim forgotten assets over a specified number of years, the assets are put into something known as a period of dormancy in which the custody of these assets are then transferred to a trust waiting to be claimed by the rightful owner. The unclaimed property most often turns out to be in the form of money or property that is not claimed will be waiting to be claimed by the rightful beneficiary or next of kin.

There are even lawyers who actively seek out and search those entitled to large sums of unclaimed assets and missing money hoping to cash in on the action as a middle-man.

Unclaimed life insurance policies go unclaimed when heirs fail to notify insurance companies about a deceased relative. Therefor no legal assistance has been made to carry over any unclaimed money to the proper beneficiary.

You might be one of the many thousands of Americans entitled to collect unclaimed and missing money on behalf of deceased relatives who left without a legal document disposing of assets properly.

Throwing Your Money Away

If I had just sat down and thought it through for a few minutes I would have saved myself a large sum of money. Also, if my bank manager had my true interests at heart, he would have explained this simple principal to me. But if he were to do that, my gain would take from the banks profits.

The simple Maths. My Loan was costing me 9% and my savings earning me 3.2%. If I had simply put my $400 extra towards repaying the loan every month here is what would have happened.

I would have decreased the term of my loan substantially and as well as paying off the loan early I would have saved approximately $2,200 in interest repayments. If I had continued the saving scheme, I would have earned interest of $683. That means I would have been $1,520 ($2,200 – $680) better off if id concentrated on repaying the loan.

That’s $1,520 I wasted. As foolish as my mistake was, the sad fact is, a huge number of people are doing the exact same thing. People are putting money away for their future, kids education etc, while also repaying high interest loans, consumer debt and credit card debt.

I was fortunate in that my loan was only over five years, yet people go through most of their life saving this way. Over 20 years my loss would have compounded to 10’s of thousands.

Now I’m not saying by any means that banks and loans should be avoided. Even the mega rich get loans. The difference is, they can make the loans work to their advantage. The points I’m trying to bring across is that one should pay close attention to how they repay their loans.

Keep in mind that your bank will bring out new products every year, saving plans, pension schemes etc and their staff are often given huge commissions when they sell the products.

Personal Finance Software

In one word, yes, it is possible to save money. The key is in knowing how to save it. And this is not some ancient wisdom passed down as a family secret. It simply is getting your hands on some financial management software to help you manage your incomes and expenses.

A financial management software or tool helps you make a list of all expenses and incomes and then lets you calculate your net worth. It will also help you see at a glance where most of your money is being spent. Once you cut down on your expenses and make some cost cutting measures, you will soon see a surge in your savings. So, you see, it is not hard to make savings in today’s consumerist culture. It all comes down to keeping an eye on when you are spending, how much and on what.

The key is of course, a strict adherence to the budget set out by you in the financial tool. If you do not stick to it, then no force in the world can help you save money.

In the short run it may seem like you are saving only a tiny amount but, just as a drop of water added many times fills up a bucket, a few dollars saved every month eventually adds up to considerable amount of savings. So, key is to be persistent and follow the instructions provided by your financial management tool.

All about Money and Decisions

One of my clients recently said, “It is all a risk. How do I know if this new idea is worth funding?” What’s true is that if you didn’t want any risk you would still have a job that pays you a steady and consistent paycheck. You would know exactly how much you would get every two weeks. In a small business it is different. In order to minimize the risk, you make projections based on a plan. The plan is based on a vision and a map of where you want to go and how you plan to get there. Once you know your plan, there are certain things you have to spend money on in order to make it happen. Hiring people to help you, setting up an e-commerce website or joining a networking group are all things that could help move your business forward if you do your homework and are willing to take the risk now for the benefit later.

A woman I worked with last year gave up her steady corporate paycheck, put out a shingle for her new consulting business and expected money to begin rolling in right away. She didn’t want to borrow any money so the stress began around how to get more clients. Poor decisions then followed around spending money on her business. She didn’t want to spend any money until she was earning more. It’s the chicken or the egg thing. She decided to not join the chamber, not take a small business seminar and not build a better website. This is a trap that many self employed people fall into. It could be that the new website or seminar is exactly what she needed to help grow her business but her fear took over.