Finance Roll

Oh boy! Now we are on a hot topic. Who runs the financial world besides who we would consider the 3%-ers? Everyone knows that 3% of the population earns 97% of the income available to make. Why? Because they are doers. Understand, however, that they don't run as much as we think they do. THE BIG THREE are: 1. the Government 2. the Banks 3. the Insurance industry
My job as an investor, in this market or any market for that matter, is to figure out how to be a part of THE BIG THREE. I think it is a process of elimination. How likely is it that the average real estate investor becomes a government official or at least puts themselves in a position to write policy? Not very. How likely is it that the average real estate investor starts an insurance agency or franchises an Allstate office like my uncle did back in Maryland? Again not likely.
Drum Roll Please.................

By process of elimination the only position available in THE BIG THREE is to be a bank. Why is it likely? Because, if you are an active real estate investor, you have access to masses of cash and credit from your private investors, your credit partners, and your colleagues. Believe it! You can be the bank. No more sulking about the points you pay on this loan and that loan. All you need to do is put yourself in position to do the same things the banks do and it is all perfectly legal.

1. Line up Your Private Money

If you are not actively soliciting private money and you call yourself a real estate investor, HA.
You have to have private money to fund the deals you want to hold. Why would you use your own money or credit when you can use someone else's. Send out solicitations to your friends, co-workers, and family. They call that the Warm List. You will be surprised about who will be interested in what you have to offer. Just let everyone know that you can give them a return between 9% and 12% on their private monetary investments and all of the funds will be secured by Real Estate. They will love that because most people have their money sitting in banks and in non-performing investments, losing to inflation and taxes. Show them that there is a better way. We are going to call these people LENDERS.

2. Set up Your Private Money Division

Our title attorney calls this the Loan LLC. You can set up an LLC specifically to handle the private money transactions of the lenders you solicited above. The attorney will also be able to set up the paperwork, notes, options, terms, and any other specifics to your private money needs. You tell them what you want, pay, and they will take care of the rest. The idea here is that when you solicit private funds, you never touch the money personally. It always goes into title/escrow and it is disbursed according to the terms of the deal. Now you are ready to roll.

3. Too Hot for TV

Everybody knows an investor who needs hard money. EVERYBODY knows an investor that needs hard money. Well guess who is a hard money lender now? You that's who. Use the private monies you borrow at 9% and loan at 5 points and 12-14% for 6 month terms. Turn the private funds 3 times in 24 months and watch your pockets get FATTER!! If I'm lying...I'm flying. Now you are the bank and you control your own income. Analyze the deals as if it were your own and if it makes sense loan on it and collect.

As you can see the Lender loans to you and your Loan LLC lends to the borrower. What great things you can accomplish as a professional middle man. If you turn more you make more. It is plain and simple. The hard money division of your real estate investment business is NOW OPEN. You can thank me later or sign up for "the what and the how" real estate investing program in Dallas, Texas where I teach all of these strategies for creating wealth. So, I encourage you to take action on this one my fellow investors.

Blessings to your Real Estate Investment Successes,

The answer to that question is yes. Most lenders treat manufactured and mobile homes much the same as a conventionally built house and are willing to work with anyone who already owns or is thinking of buying a manufactured home. There are quite a few reasons why you might be interested in doing a refinance of your manufactured home; getting a lower interest rate and monthly payment, consolidating debt, paying for college or even purchasing a car.

When you refinance your manufactured home you are basically using your new loan to pay off your current loan, with hopefully better terms that will save you money. The main thing to look for with this type of loan is a lower interest rate which in turn will lower your monthly payment, freeing up more money for other things you may want to do. If you can easily afford the monthly payments you are currently making then refinancing to a lower interest rate will allow you to shorten the length of your loan and pay it off sooner.

Most financing for manufactured and mobile homes is available if it is located in a mobile home park or on private land. Because these types of dwellings are different then a standard stick-built home the laws and regulations concerning the financing of them will differ from state to state. Knowledgeable lenders will be able to help with the details when it comes to these types of loans.

The closing costs for refinancing a mortgage are the same as when you purchased your original mortgage. You will have the option the pay them up front or roll them into the mortgage to keep out of pocket expenses at a minimum. This is a good option if you do not have the money to cover the closing costs but do be aware that it will add to the amount of the loan and you will be paying interest on any additional fees and costs that are rolled into the loan.

Much like you can do when refinancing a traditional home mortgage you can also buy down your interest rate by purchasing points on a refinance of a manufactured home. Points are an additional fee that you pay up front to the lender. The amount of each point is dependent on the amount of the loan. In most cases one point is valued at one percent of the total loan amount. If your loan is $100,000 then each point or percentage point you move the interest rate down would cost $1,000. Before buying down your interest rate with points it is important to make sure that you plan on owning your home for a long enough period of time to recoup your investment in points.

Refinancing a manufactured home is quite similar to that of a traditional home. There may be a few differences but for the most part the process is the same. Any good lender will point out any differences and should be willing to help guide you through the process.

"So what differentiates a winning financial vibration from on that is a loser?" This question was posed to me by a client who felt that his luck had run out. He was in a pinnacle of change and though he had the natural skills for making money, he was in a phase of transition and was probably reacting to the changes in his life.

Pinnacles play a major roll in the main path of our life path. They are the major tests you experience during a phases. These tests take place whether you're prepared or not. The phases are accurate and represent significant changes. Pinnacles represent a crossroad in which you must make a decision regarding your direction.

Pinnacles are found on your birth path. Your day of birth, Month and Year of birth configures your four Pinnacles. The numbers of your pinnacle represent the opportunities available to you. If your Pinnacle was focused on loneliness and being alone, you might have learned the lesson in your previous Pinnacle; if so you might experience the "7 Pinnacle" through lowered financial outlook and study. A "7 Pinnacle" might not be the best time to go for those major financial deals unless your intellect will be put to the test.

Don't be intimidated by Pinnacles, after all, they can be seen as a measure of your growth and development.

The First Pinnacle is found by adding the digit of the month to the digit of the day.

The Second Pinnacle is found by adding the digit of the day to the digit of the year.

The Third Pinnacle is found by adding the first and second Pinnacles together.

The Fourth Pinnacle is found by adding the digits of the month and the year of birth.

The bottom line is that there are many internal and external numerical influences. You can track them but don't be fooled into thinking that your held back by the numbers; you are merely being tested.

The Money Vibration of Two:

You might be shy about making money on your own if your birth day ads up to a two. You can listen and follow directions very well. You can work well with others and give love and attention without hesitation. Your money works best when earned in smaller amounts over time.

Partnerships tend to pay off later for you and the exercise of patience and perseverance brings big dividends. You have the ability to get what you want without doing it yourself. You gain through association and easily attract people who will help and protect you.

There needs to be balance in your life in order for your to be a success. Your best days of the week are, Monday, followed by Friday. March, May, July, August and October are important months. Take full advantage of days that add up to 2, 11, 29 in any month.

CAREER

Diplomacy, Patience, Rhythm, Sensitivity.

Actor, Artist, bank teller, caterer, collector, computer expert, cook, dancer, diplomat, editor, homemaker, mediator, musician, nutritionist, poet, psychiatrist, sailor, secretary, statistician, or teacher.

When and if you decide to partnerships choose a date adding up to 2, 7, or 6. If possible, avoid January, April, and November and the 8th, 9th, 17th, 18th, 26th, or the 27th.

Lenders will check the past two years of Profit-and-Loss Statements, plus the year-to-date one. They'll examine the current Rent Roll and will inspect the exterior and interior of the property. (At first it's just a visual inspection. If they decide to get serious with the deal, they'll send out their own property inspector.)

The great thing about commercial real estate is that much the lending decision rests on the merits of the property and not on your own financial statement. In addition, they'll want a schedule of real estate owned, and will check your credit history.

The next step will be for the lender to send you a Term Sheet. This is between 5 and 30 pages long, explaining the terms of the deal. It indicates whether the deal is Recourse or Non-recourse. Recourse means you are personally liable for the debt, and non-recourse means you are not. The tradeoff is that non-recourse financing often comes with burdensome prepayment penalties. That's okay if you plan to hold the deal for an extended period.

Tip: Investors usually don't realize that the Term Sheet is negotiable. Even though it comes printed on official letterhead, you don't have to take what they give you.

If your deal is good enough (where did we see that point before?), there will be other lenders who would LOVE to do business with you. If there is something in the Term Sheet that you would like to change, call the lender and start negotiating.

If you're not comfortable negotiating the first time out, then have your attorney do it and listen in on the call. Attorneys who specialize in real estate are well-versed in negotiating Term Sheets.

One key negotiating point is the amount of money that the lender will require up front to start the process. It is likely to be between $7,000 and $25,000. For example, one lender wanted $95,000 from a client of mine and he got it down to $9,000. Part of this up-front money is for the costs that lenders incur at this stage. These include reports from the third parties who are doing the appraisal, the environmental study/ies and the property inspection. Make sure the lender orders the appraisal.

The lender will not start the process until the initial fee is paid and a copy of the Purchase and Sale (P&S) Agreement, signed by both parties, is submitted. Why? Because it's not a deal until both parties sign the P&S Agreement.

Someone at the lender's office now gathers up all these reports from you and the lender's own experts, and sends a package to the lender's underwriting unit. That's where they decide whether to do your deal or not.

It is at this stage that you can improve your chances immensely.

How? By creating your presentation to the underwriter. Of course you will not be in the room when your deal is formally discussed, nor are you likely to meet the underwriter, that's all the more reason to prepare a package that can be in the room, and can do all the talking for you.

The reason behind this is to present your deal in such a way that it answers every question that might be on the underwriter's mind, even before it is asked.

You do this by presenting an overwhelming amount of information about yourself and the deal.

Everyone wants to upgrade into that latest model with all the cool bells and whistles. Unfortunately, many of us are upside down in our current auto loan so trading it is a little more difficult than normal. What does it mean to be upside down in a car loan and how can I overcome it? Here are a few helpful tips to help you overcome it.

Upside Down Car Loan: An upside down car loan is a loan where you owe more on the vehicle than what it is actually worth. To understand if you fall into that category (and you probably do since more than 70% of all consumers are upside down currently), visit a website where you can determine what the actual wholesale value of your vehicle is. Once you determine that, you can compare that to the amount you and find out for yourself if you are indeed upside down.

What to Do with An Upside Down Car Loan: Just because you may find yourself in one of those upside down car loans, all is not lost. There are options available to you using an online lender. Online lenders offer flexibility that allow you to still trade in that vehicle even if you owe more on it than what is worth. Those lenders allow you to roll in that "negative equity" into a new loan. This does not fix the upside issue, but it will allow you to upgrade that collateral to the latest and greatest model.

Can I Ever Not be Upside Down?: Well, the short answer is yes. However, getting out of an upside down car loan and actually building equity can be a difficult one, especially if you like to trade every 18-24 months. The easiest way to build equity is to keep a vehicle long enough that you can pay down more than half of the original loan balance. Hopefully by doing so you will build positive equity so when you go to trade you can actually use that vehicle as positive down payment instead of needing to roll in more negative equity into another loan.

Overcoming being in a upside down car loan can be done. Do not get discouraged. Find a good online lender to work with and they can assist you. You can find more helpful information related to car financing and refinancing along with useful negotiation tips to use with the dealer online at OpenRoad Lending.

Many people throughout the life of online marketing have utilized
the use of Kaizen. As a matter of fact I would venture a guess that
almost all successful businesses in today's markets are using it.
Which leaves one to wonder, what is Kaizen? Well, to put it in a
layman's words it is the practice of continuous improvement; the
fact that we should never be satisfied with what we have, and instead
always press onwards to improve what we have to something better.

This can be utilized in many ways, for example, you might own a home
based business such as a plug-in-profit homepage where the biggest
work load is the advertising campaign. To find new ways to complete
tasks in this process easier and faster can mean that you will be
getting more done and earn a better income, or maybe just have the
time to catch up with some sleep that might be long overdue.

However, it is important to know that Kaizen is something that is
utilized over time and is a never ending process. As time goes by
you have to keep in touch with all new opportunities that comes
flying your way to keep competitive in a way that lets you choose
what to improve in you business. This in itself has the effect of
giving you a competitive edge against all those that ignore this
very easy, but vital step.

Many believe that one can get a successful business by working really
hard in the beginning and then wait for the money to come rolling in.
I would say this is the best way to kill a business and it is also
totally against everything that is Kaizen.

Ok, it is true that the business starts to flourish in the beginning
when the efforts by the owner and/or employee is at its peak, however
once the well deserved payoff from all the work starts to roll in many
sits back and forgets the most important step in any business; too
keep the payoff at it's peak capacity at all times!.

In essence, the theory of Kaizen can be compared to the fable of "the
rabbit and the tortoise"; a rabbit and a tortoise are going to race
each other from one end to the other, the rabbit runs fast and quick
but gets burned out very fast, while the tortoise takes it slow but
keeps his pace and even slowly increasing it at times, and in the end
he gets past the rabbit and wins the race. The quick rabbit that is
all burned out, and lays in the grass beside the road halfway through
the race, thinks for himself, even I, will take it slow and increase
my pace as I go along next time.

In this fable Kaizen is the tortoise and just like the tortoise slowly
improved his pace, so can a business person improve the business that
is being conducted. Since it is better to take it slow and learn on
the way meanwhile you keep improving all aspects of the business, rather
than to rush things through just for the sake of getting it done.

A famous quote that I heard once goes like this "Rome was not built in
a day...but alas...it was built indeed".

When it comes to your finances, you really have a simple decision to make. Do you want to keep going the way you are right now? Or would you rather have money in the bank, retirement in the works and the things you really want?

If you would rather have the money over your current lifestyle, I don't blame you. But how can you get there?

There is one way -- budget. I know you probably automatically think of a miserly person who is a tightwad when you think of frugal living. But it really is the key to getting everything you want out of life. The definition of frugal living is that you get it for less. Not that you don't get it at all. Just that you get it at a lower cost. All too often people assume that budgeting and frugal living are only for poor, low income families. But even the wealthiest companies budget and practice frugality.

So start looking at it in a different way. A budget and frugal living is a business decision that gets you where you want to be. It is simply a way to organize and manage your finances. We often get caught up in wanting more. We want new cars, designer houses and the trendiest clothing. We don't want to seem like we aren't rolling in dough, so we spend our money on the things we think reflect wealth. And above all, we don't want to appear as if we have no money.

But that spending carelessly actually results in having no money. You might feel good temporarily, but one day you will realize that you have no wealth at all. No savings. No investments. No retirement. Only debt and living paycheck to paycheck.

Wealth has nothing to do with how much you make. It is how much you accumulate. Companies that make millions are not wealthy if they spend billions. The same goes for the everyday consumer. A wealthy person saves their money and makes wise financial investments. They budget and spend in a frugal manner. In the long run, their goals are fulfilled. Those that spend on everything they want when they want it aren't left with very much at all. But debt.

So you have to make the decision. Your income doesn't matter. It is how much you spend. It is in your budgeting and frugal living. Ask yourself which you would rather have: that brand new leather furniture or a comfortable retirement? Sometimes you have to make these decisions. However, with wise saving you could have both -- just not right now.

You have to set goals for your family. Do you want to retire? Send your kids to college? Where do you want to be in 10 years? Do you want to lower your bills and reduce your debt? Do you want more time with your family and less time stressing over your financial situation?

Figure out what your priorities and goals are. You have to want to reach these goals before budgeting and financial planning will work for you. Take the time to see how changing your finances could change your life. Then start on the road to successful financial management.

If you think your job may be at risk, it's a good idea to shore up your finances and make sure you're not spending money unnecessarily. Don't assume you'll receive severance if you're laid off; you may not.

The general rule of thumb is that it takes one month for every $10k in salary to find a job (in a weak economy, assume it will take even longer); even with a cushion from severance, it's certainly possible to run out of money before securing your next position.

Take a look at your savings, debt, and monthly expenses. Minimize wherever possible. Skip the daily latte at the coffee shop, and wash the car by hand. Eat meals at home. Put the money you save on expenses into savings.

You should try to have six months of cash in reserve and available at all times. This is another one of those things that you should do as a matter of course. Strange things can happen - and they can happen very quickly. A small technology company ran into financial trouble and was abruptly forced to sell. (Underscore abruptly!) It was less than one month from the day this turn of events was announced until the first employees were let go. The company shut its doors for good just five weeks after that. If these folks didn't have six weeks of cash on hand, they likely weren't going to come up with it in the space of a few weeks.

Avoid dipping into your retirement account for living expenses. This should be a strategy of last resort. Between early withdrawal penalties and state and Federal taxes, you could lose a great deal of money. Of course, you'll also be sacrificing your long-term security.

Alternate options if you need cash:

• Savings accounts
• Money market funds
• Home equity loans (not so easy to secure currently, but still worth a look)

Not only can you get relatively low interest rates, the payments are often tax deductible. However, you should set up an equity line of credit while you are still employed.

While we're on the subject of retirement accounts, if you have a 401(k) with your current company, roll those funds into an IRA to avoid paying a tax penalty. A direct rollover is the best option: in this case, the money goes straight from your former company's account to your IRA without you touching it. It's simple, and you continue to receive tax deferred status on the full amount of money accrued.

These days there are some creative methods for avoiding the need to place a large down payment in order to purchase a home. This is fortunate considering that for many families homeownership would be out of reach were it not for these methods. In the past placing a down payment on a home was commonplace. Recently, as housing prices have risen drastically over the past couple of decades it has become harder and harder to save enough money to put forward a meaningful down payment. Luckily, there are now ways to go about getting 100% home financing. What will work best for you depends on your means and goals.

You may hear advertisements for 100% home mortgage loans. What this usually ends up being is an offer for an 80/20 home mortgage, also known as a "piggyback mortgage". An 80/20 mortgage is actually two mortgages that you get at the same time to finance 100% of the cost of a property. Typically, both loans are handles by the same lender and closing on both happens at the same time.

In an 80/20 mortgage, the 20% part refers to a second mortgage that acts as a down payment on the primary mortgage. This second mortgage can be an equity line of credit or a traditional second mortgage.

Because both mortgage's in an 80/20 situation are secured by your home, you need to be sure that you can afford the payments on both mortgage loans. Where you do end up saving money with an 80/20 loan is that you can avoid paying PMI in these situations. PMI stands for "Private Mortgage Insurance" and it can amount to a hefty monthly payment that can be avoided by placing a large enough down payment, as happens in an 80/20 loan.

It is important to know that even in a 100% financing situation, you will still need to have enough money on hand to cover your closing costs. Most lenders do not allow you to roll the costs involved in closing in to your home mortgage, even in a piggyback loan situation. Because you are closing on two mortgages at the same time, your closing costs for an 80/20 mortgage are generally higher than in a traditional mortgage.

Even though a piggyback mortgage will cost you more, it is still an attractive option for families that have adequate income but little savings. By taking advantage of this method of financing 100% of the cost of your home, you can experience the benefits of homeownership and work towards building equity in a home.

You've got a great idea for an eco vacuum cleaner. Or you need financing for an artsy project like re-cording a ska album, publishing an alternative lifestyle magazine or producing an all 80's film festival. Maybe the film festival project can wait. The point is you might be an entrepreneur, artist, or just a regular person with a great idea and can't get it off the ground because you don't have access to financing.

It used to be that you had to rely on the three F's, friends, family and friends of family. For too many reasons to get into, it always isn't a good idea to go around asking all of your relatives and friends for money. Even if they agree to loan you some money, the added burden might not be worth it in the long run.

Enter crowdfunding, which is another way of leveraging the "crowd" or the three F's and one new S, strangers. You post your project on one of the more than 450 crowdfunding platforms worldwide and you wait for the money to roll in. According to crowdsourcing.org, $1.5 billion was raised in 2011 through crowdfunding.

There are three types of crowdfunding activities that are legal in the U.S. and Canada. Reward-based or using perks is one type of crowdfunding to get sponsors to contribute. For example you would grant certain perks i.e. a free t-shirt, a free version of the video game etc... Then there is donation-based which means if someone likes your idea enough, they just GIVE you some money.

The third type is lending-based crowdfunding which is just borrowing

money from strangers. Equity-based crowdfunding isn't yet legal in the US or Canada because it involves issuing equity, and providing disclosure which would necessitate the involvement of the Securities Exchange Commission and the Canadian provincial securities commissions.

In the US, the JOBS Act, which outlines the specific rules for equity financing was signed into law by President Obama on April 5, 2012. The SEC has 270 days from the enactment date to set forth specific rules and methods to ensure that funding will actually take place. So we're going to find out within the next 6 months exactly how the rules will apply.

But that's not why you're reading this article. You want to know how to raise funds through crowdfunding. This is where your thousands of friends on Face-book and Twitter are going to come in handy. You should tell everyone about your campaign and keep telling them every time you've raised some money. Don't forget they have their own personal network which could contribute to your project.

Write a press release and send it to publications and websites that you think would be interested in your story. They're always looking for an interesting story, so make sure that yours is!

You shouldn't forget to show sponsors how you're going to spend their money and what they should expect in return.

So another year has rolled around again. Resolutions for many are in full force and for others, resolutions are only a reminder of goals gone bad! If you are a resolution maker and happen to be someone who has chosen improved wellness as your goal, these tips may be helpful in creating and jumpstarting your plan. I use these tips with great success when working with clients around their health and wellness goals.

Begin by purchasing a beautiful journal and pen, dedicated to your personal wellness. Writing is an invaluable tool when making changes in your life. Find a comfy chair in a quiet location, pour a favorite drink and start writing your way to wellness for 2009.

1. Consider first what personal wellness means to you. Everyone has their own unique idea. For me it is to feel fit physically, mentally, spiritually and financially. Take a few minutes and reflect on this question before writing your answer

2. What areas do you want to improve? Finances, relationships, work, health, personal growth? Some may have one or two and others can have many. Just write them down without allowing judgment and overwhelm to come into the picture.

3. What goals do you want to reach in these particular areas? When you decide, write them down. Make sure they are realistic and specific. For example, to be out of debt by the end of 2008 or to have lost 10lbs by the end of April. Remember, keep them realistic so you don't get discouraged when you notice you may not meet your timeline. These are only guidelines, however having a specific goal to work towards can be very powerful.

4. Consider the areas you have chosen to concentrate on and determine what has already been working for you. You do not have to reinvent the wheel. If you are satisfied with your progress in a certain area you may only need to maintain it or vary it slightly. For example, if your main relationship is healthy but you want to make more time for it, maybe you just need to focus on choosing a specific time each week or month that will be dedicated to the relationship.

5. What roadblocks in the past have kept you from reaching your goals? Was time a factor? If so, look at what would work better. Your plan has to include activities you enjoy and are able to maintain without too much struggle. If you hate running but love walking, don't force yourself to run. Do what you love, not what you feel you should be doing.

6. After writing down your goals, start to develop a plan to get you there. As a coach, helping a client develop a plan is one of the first steps we take after they have set their goals. For instance, if exercise is something you have chosen, decide what type of activity you will do, as well as how often and for how long. A clear focus can make action so much easier.

7. What are the first action steps that need to be taken in order to carry out your plan? If you have decided to get out of debt, the first action may be to determine the total amount of debt you are carrying. Write them down.

8. Once you have determined what steps need to be taken, review them. Are they small enough so as not to overwhelm you? Be realistic. Taking baby steps toward your goal will increase your chances of achieving it. Remember, small and consistent steps will guarantee success.

9. If possible, work with a partner or group for support. Accountability is a great motivator towards achieving your goals and a partner can make it a lot more fun.

10. Most important...recognize accomplishments daily and make a commitment to improve the quality of your life.

Your level of personal wellness plays a huge part in your happiness, ability to deal with stress and fight disease. I challenge you to grab a pen and start writing your unique plan today. Consider what changes you need to make so your personal mantra can be...I feel ALIVE in 2009!

Article Written by Peggy Porter-The Success Coach for Mom Entrepreneurs.

Christmas is the Western world's biggest holiday celebration and although it only comes around once a year it often has us spending months in advance whilst the after-effects can include a big dent in our bank accounts for weeks afterward. Frugal Christmas shoppers often gather presents throughout the rest of the year in order to spread the cost but perhaps the best advice of all is to save rather than spend so you can go all out when December comes around.

There are lots of ways in which we can make small changes to our everyday lives in order to build up our Christmas savings pot. The first piece of advice for those looking to save is to cut back on your food bills. This doesn't necessarily mean eating less, in fact you could end up eating more! A big expenditure with regard to food is eating out at lunch and dinner time. While the lure of the office canteen or local eateries can prove more mouth watering than a home made roll or salad, you'll actually find it much more economic to prepare your own meals rather then opting for restaurant, café or pre-packaged, shop bought grub.

The second way to add to your Christmas savings pot is to avoid taking the car and opt for public transport, walking and cycling where and when you can. Walking and cycling to work is not only a great way to get fit but is also better for the environment when compared to carbon footprint left by car fumes, especially when the car is only used to transport one person. With petrol prices in a constant state of flux, walking or cycling will save valuable pounds - perhaps even hundreds of pounds over a month long period.

When saving for Christmas, the everyday consumer will find there's plenty of changes that can be made to their personal lives in order to save money but not infringe on the enjoyment of their free time. Instead of splashing out on going to cinema, why not see what the DVD rental store has to offer? Enjoying the great outdoors is another money saver - fresh air and a relaxing walk along the beach rarely costs anything at all.

Finally, another money saving tip is to tighten up your financial outgoings and add to your money saving pot instead. The average UK citizen will have a range of necessary monthly outgoings such as car, life and health insurance as well as phone and energy bills. Take a moment to look online at the many sites offering to compare life insurance or health cover and you could end up saving hundreds of pounds when switching to a plan that not only gives you more for your money but also saves you money in the process. Don't get complacent or apathetic about your finances, tightening up here and there won't make a noticeable difference in the meantime but will when you're able to treat loved ones to a dream Christmas.

Union Finance Minister (Govt. of India) P Chidambaram presented the Union Budget for 2007-08 in Parliament on Wednesday, 28th Feb. 2007.

The Following are the Highlights:

While Chidambaram kept income tax limit unchanged, he increased the threshold limit by Rs 10,000 giving every assessee a relief of Rs 1,000.

Deduction in respect of medical insurance under Section 80 (D) increased to Rs 15,000 and Rs 20,000 for senior citizens.

Exemption limit for women was increased to Rs 145,000 and for senior citizens to Rs 195,000.

Dividend distribution tax raised from 12.5 to 15 per cent.

ESOPs to be brought under FBT.

Expenditure on samples and free distribution items to be exempted from fringe benefit tax.

Additional revenue from direct taxes to yield Rs 3000 crore and indirect taxes revenue neutral.

Tax exemption on aviation turbine fuel sold to turbo prop aircraft extended to all small aircraft less than 40,000 kg.

Withdrawals by central and state governments exempted from Banking Cash Transaction Tax. The limit for individuals and HUF raised from Rs 25,000 to Rs 50,000.

Two lakh people to benefit out of service tax exemption. Govt to lose Rs 800 crore as a result.

Service tax on Residents Welfare Associations whose members contribute more than Rs 3,000.

Surcharge on Corporate income tax on companies below Rs one crore removed.

Tax free bonds to be issued by state-owned urban local bodies.

Five year tax holiday for two, three, four star hotels and convention centres with a seating capacity of 3,000 in NCT of Delhi, Gurgaon, Ghaziabad, Faridabad and Gautam

Minimum Alternate Tax being extended.

Benefits of investment in venture capital funds confined to IT, bio-technology, nano-technology, seed research, dairy among some others.

Excise duty on cement reduced from Rs.400 per tonne to Rs.350 per tonne for cement bags sold at Rs.190 per bag at retail market. Those sold above Rs.190 will attract excise duty of Rs.600 per tonne.

Corporate tax: No surcharge for firms with a taxable income of Rs 1 crore (Rs 10 million) or less.

E-governance allocation to be increased from Rs.395 to Rs.719 crore.

Indian investors to be allowed investment in overseas capital markets through mutual funds. Mutual funds to set up Infrastructure Fund schemes.

Any requirement for security of the nation to be provided.

Backward Regions Grant Fund to be raised to Rs 5800 crore.

A high-powered committee report aimed at making Mumbai a world class financial centre submitted.

Public suggestions will be invited.

Rs 50 crore provided to begin work on vocational education mission for which Task Force in Planning Commission is chalking out a strategy.

1,396 Indian Technical Institutes to be upgraded to achieve technical excellence.

An autonomous Debt Management Office in government to be set up.

Government to create one lakh jobs for physically challenged. Government will reimburse the EPF contributions of employers in the case of physically challenged people taken on rolls of the company and included in the PF scheme. A fund of Rs 150 crore to be started which will go up to Rs 450 crore.

An Expert Committee to be set up to study the impact of climate change in India.

Rs 150 crore to be given to Ministry of Youth and Sports for Commonwealth Games and Rs 350 crore to the Delhi Government for the purpose. Rs 50 crore to be provided for the Commonwealth Youth Games in Pune.

Rs 100 crore for recognising excellence in the field of agricultural research.

VAT revenues increased by 24.3 per cent in the first nine months of 2006-07.

A national level goods and services tax to be introduced from next fiscal.

Fiscal deficit to be 3.7 per cent in the current year and revenue deficit two per cent.

Fiscal management enabled States consolidate debt to the tune of Rs.1,10,268 crore and 20 states availed of debt waiver to the tune of Rs.8575 crores. The share of States from the revenue expected to touch Rs.1,42,450 crore during 2007-08 as against Rs.1,20,377 crore during 2006-07.

Total expenditure estimated at Rs 6,81,521 crore.

Increase in gross tax revenue by 19.9 per cent, 20 per cent and 27.8 per cent in first three years of UPA government. Intend to keep tax rates moderate.

Peak customs duty rate on non-agricultural items reduced from 12.5 to ten per cent.

All coking coal fully exempted from duty.

Duties on seconds and defective reduced from 20 to ten per cent.

Customs duty on polyster to be reduced from ten per cent to 7.5 per cent.

Fiscal deficit for 2007-08 pegged at 3.3 per cent of GDP at Rs.1,50,948 crore. Revenue deficit at Rs.72,478 crore which will be 1.5 per cent.

Total expenditure during 2006-07 estimated at Rs.6,80,521 crore including Rs.40,000 crore for SBI shares.

Duty on pet food reduced from 30 per cent to 20 per cent.

Duty on sunflower oil to be reduced by 15 per cent.

Duty reduced on watch dials and movements and umbrella parts from 12.5 to five per cent.

Import duty of 15 specified machinery to be reduced from 7.5 per cent to five per cent.

Economy grows 8.6 per cent in third quarter of this fiscal compared to 9.3 per cent in the year-ago period

Three per cent import duty to be levied on private importers of aircraft including helicopters.

No change in general CENVAT rate.

Ad valorem duty on petrol and diesel to be brought down from eight to six per cent.

Export duty on iron ore and concentrate at the rate of Rs.300 per tonne. Export duty on Cromium proposed at Rs 2000 tonne.

Small-scale industries excise duty exemption raised from Rs one crore to Rs 1.5 crore.

Manufacturing sector grows at 10.7 per cent, agriculture at 1.5 per cent during October-December 2006-07.

Excise duty for plywood reduced from 16 per cent to eight per cent.

Food mixes to be fully exempted from excise duty.

Excise duty for plywood reduced from 16 per cent to eight per cent.

Bio-diesel to be fully exempted from excise duty.

Water purification devices, small and big, fully exempted from excise. Specific rates of excise duty on cigarettes increased.

Excise duty on Pan Masala without tobacco as mouth freshners reduced from 66 per cent to 45 per cent.

PAN to be made single identity card for all securities/stocks/MFs related transactions.

Insurance companies to launch a senior citizens scheme in 2007-08.

Defence budget increased to Rs 96,000 crore

Tourism infrastructure to get an allocation of Rs.520 crore as against Rs.423 crore last year.

The ceiling of loans for weaker sections under deferential rate of interest scheme will be raised from Rs 6500 to Rs 15,000 and in housing loan from Rs 5000 to Rs 20,000.

Regulations would be put in place for mortgage guarantee company for housing loans.

Regional Rural Banks, which are willing to take up greater responsibilities, to undertake aggressive branch expansion programme. One RRB branch for each of 80 districts so far uncovered. RRBs to accept NRE and FCNR deposits.

FDI inflows between April and January this fiscal touched $12.5 bn while portfolio investment reached $6.8 billion

Technology Upgration Fund in textiles to continue during the 11th Plan. Rs 911 crore to be provided for this.

Allocation for National Highway Development programme to be stepped up from Rs 9,955 crore to Rs 12,600 crore.

Work on Golden Quadrilateral road project nearly complete. Considerable progress made on North-South, East-West corridor and likely to be completed by 2009.

Northeastern region will get Rs 405 crore for highway development. Road-cum-rail project over Brahmaputra in Bogibil, Assam.

Health insurance cover for weavers to be enlarged to ancillary industries. Allocation increased from Rs 241 crore to Rs 321 crore.

A scheme for modernisation and technological upgradation of choir industry for which Rs 23.55 crore has been earmarked.

Manufacturing growth rate estimated at 11.3 per cent.

9.2 per cent GDP growth rate estimated in 2006-07.

Average growth for last three years is 8.6 per cent.

Saving rate of 32.4 per cent, investment rate of 33.8 per cent will continue.

A number of proposals to perk up agriculture to be announced.

Average inflation in FY'07 to be 5.2-5.4 per cent; govt confident of managing inflation

Bank credit rate grew by 29 per cent during first ten months of 2006-07

Inflation during 2006-07 estimated at between 5.2 and 5.4 per cent against 4.4 per cent during the previous year.

Abhijit Sen report on forward trading to be submitted in two months' time.

Additional irrigation potential of 24 lakh hectares to be implemented, including nine lakh hectares under Accelerated Irrigation Benefit Programme.

Economy in a stronger position than ever before.

15,054 villages have been covered under rural telephony and efforts to be made to complete the target of covering 20,000 villages by 2006-07.

Allocation on Healthcare to increase by 21.9 per cent.

Allocattion for education to be enhanced by 34.2 per cent.

Two lakh more teachers to be employed and five lakh more classrooms to be constructed.

Secondary education allowance to be increased from Rs.1,837 crore to Rs.3,794 crore.

Government committed to fiscal reforms.

Foreign exchange reserves stand at 180 billion dollars.

Allocation under Rajiv Gandhi Drinking Mission stepped up from Rs 4680 crore to Rs 5850 crore.

Government concerned over inflation and would take all steps for moderating it.

Already a number of steps on fiscal, monetary and supply management side have been taken.

Annual target of 15 lakh houses under Bharat Nirmal Programme to be exceeded.

Allocation for National Rural Health Mission stepped up from Rs 8207 crore to Rs 9947 crore.

Gross budgetary support in 2007-08 raised to Rs 2,05,100 crore from 1,72,728 crore in 2006-07. Of this, budgetary support to the Central plan will go up to 1,54,939 crore against 1,72,728 crore.

School dropout rates high. To prevent dropout, a National Means-cum-Merit scholarship to be implemented, with an allocation of Rs 6,000 per child.

Rs 1290 crore to be provided for elimination of polio. Intensive coverage will be undertaken in 20 districts in UP and 10 districts in Bihar. This will be integrated into NRHM.

National AIDS Control Programme to achieve zero level disease.

Measures for significant improvement of health care in rural area.

Allocation for ICDS programme to be increased from Rs 4087 crore to Rs 4761 crore.

30 more districts under NREGA. Additional allocation of Rs.12,000 crore for it.

Rs 800 crore for Sampoorna Gram Rozgar Yojana in districts not covered by NREGA. Swarna Jayanti Swarozgar Yojana allocation increased from Rs 250 crore to Rs 344 crore.

Computerisation of PDS and integrated computerization programme for FCI.

Allocation for schemes only for SCs and STs to be increased to Rs 3271 crore.

Rs 63 crore for share capital for National Minorities Development Finance Corporation following Sachar Committee recommendations.

Allocation for SC/ST scholarships enhanced from Rs.440 crore to Rs.611 crore.

Scholarships programme for minorities students to be of the order of Rs 72 crore for pre-metric, Rs 48 crore for graduate and postgraduate.

Total Budget for the Northeastern region raised from Rs 12,041 crore to Rs 14,365 crore.

New Industrial Policy for the northeastern region to be in place before March 31.

Women's development allocation will be Rs.22,282 crore.

Rs 7,000 crore allocation for better tax administration to be used for social schemes.

Rs 2,25,000 crore farm credit proposed in the new budget. A target of additional 50 lakh farmers to be brought under farm credit.

Farmers' credit likely to reach Rs.1,90,000 crore as against the targeted Rs.1,75,000 crore during 2006-07.

Special Purpose Tea Fund to rejuvenate tea production.

Rs 100 crore allocated for National Rainfed Area Authority.

One hundred per cent subsidy for small farmers and 50 per cent for other farmers for water recharging scheme.

World Bank signed agreement for revival of 5,763 waterbodies in Tamil Nadu. Loan component Rs 2,182 crore. To have a command area of four lakh hectares. Similar agreement with Andhra Pradesh in March for recharge of 2,000 bodies. Command area 2.5 lakh hectares.

Bonds worth Rs 5,000 crore to augment NABARD to be issued.

Death and disability cover for rural landless families to be introduced, known as 'Aam Aadmi Bima Yojana'.

70 lakh households to be covered under a social welfare scheme with LIC and with support from state governments.

50 per cent of the premium at Rs.200 per household to be given by the Centre. Rs.1,000 crore fund to be maintained by LIC for the purpose.

Central public sector enterprises will be given Rs 16,261 crore as equity support and loans of over Rs 2600 crore.

Sources: Times of India; NDTV; StarNews

Is there such a thing as 100% Property Development Finance? The short answer is yes, however it may be useful to define what exactly we mean by property development finance and what we mean by 100% funding. Property development finance is the term used by lenders and brokers to describe the finance products employed to help property developers fund their projects. These projects can range from the simple renovation of a residential dwelling to multi-plot new-build schemes. A property developer can be an individual, partnership or company. Broadly speaking we can split property development in to three categories:

• A property refurbishment project would involve the purchase of a residential dwelling and straight forward refurbishment of the interior. These project usually turn round very quickly as planning permission is not generally needed.
• Property conversion projects would involve more substantial work such as an extension, conversion of an existing property into flats, or some other structural re-modelling. This type of property conversion will almost always involve planning consent, building control and sub-contractors. The developer taking on a conversion project will probably have carried property refurbishment projects in the past.
• Top of the list is the property developer who undertakes new-build schemes. Very often a site will be purchased with either full or outline planning permission. Obviously the time scale for this type of project is much longer and the developer will probably have experience in refurbishment and conversion schemes. Lenders are increasingly insisting on some form or warranty such as the NHBC or Zurich schemes, although architects certificates are still accepted.

The challenge for the property developer is to fund the acquisition of suitable property and have enough working capital left to finance the development work. Historically banks were content to lend around 65% of the purchase price and 65% or so of the build costs. However, these options were usually reserved for experienced developers or individuals with a high net worth. As with every business cash-flow is king, and having substantial amounts of cash tied-up in a property can seriously hinder business growth.

There are now several specialist property development lenders who will consider loans far in excess of the bank solution. Most of the specialist lenders will offer loans of around 70% of the site value and 100% finance for the build costs. It is very important to understand that the development costs are paid in arrears. This means that the developer will fund the works to a pre-agreed stage where upon the lenders appointed representative (usually an independent surveyor) will carry out an inspection.

On receipt of a satisfactory report from the surveyor the funds are released and the next stage of development works can start. This type of funding usually covers "hard costs" only, so professional fees such as planning, architects fees and insurance would be paid from the developers own resources.

True 100% property development finance includes the purchase of the site, the build costs, professional fees and sometimes even interest roll-up. This type of funding is available for refurbishment projects, conversion schemes and new-builds. The developer does not necessarily need a wealth of experience as the lender will monitor and support the project quite closely. The lenders who are willing to consider 100% development funding can usually only be contacted through specialist commercial finance brokers.

To qualify for full funding the project would need to demonstrate a good profit margin and be in a geographical area known to have an buoyant property market. In essence the lender wants to reduce the risk that a loan will be outstanding for long beyond the development phase.

So, in conclusion 100% property development funding does exist, whether the developer is looking for just the build costs or full funding for the whole project. Naturally these higher levels of funding come at a premium in terms of interest rates. However this should be considered against the cost of having all the available capital tied up in a single project. The main benefit for considering 100% property development funding is the ability of look at new projects whilst completing a current project.

One of the biggest threats to a successful construction project is experiencing cash flow issues, or worse still, running out of financial resources before the project is complete. Having to halt the build or renovation means you may struggle to meet time sensitive milestones and will invariably increase the cost of the overall project. Worse still you may even run into losses.

The smart developer will be prepared for unforeseen funding issues that may impede the projects progress and where the required funds are not available may make use of a property development bridging loan.

Whether you are undertaking a residential or commercial development project, a bridging loan is probably the best funding option to keep the project rolling during funding problems to minimise any cost overrun. Property development bridging loans are secured loans, and commercial or residential property or land can be used as collateral. You will normally be able to raise around 75% of the valuation of your collateral.

A big advantage of a bridging loan is they can generally be arranged in a very short time span which is not usually the case with the high street lenders. This can help to avoid project delays. These benefits do come at a premium in terms of interest rates but as this type of loan is a short term solution it may still work out in your advantage if project delays are avoided. Another advantage is that the principal can be repaid after the loan period so you only need to fund the interest whilst you complete your project and then funds from the resale can be used to repay the principal.

To summaries, if your property development project is liable to be delayed as a result of funding problems a property development bridging loan may be a solution well worth considering.

There is a lot of competition in the market place for bridging loans so be sure to choose a lender that does not charge any exit fee, offers daily interest with no hidden or additional costs other than the required fee for the valuation of your collateral and any legal fees.

There are certain factors that come into play with a no closing cost refinance. Sometimes, this can mean that you have no additional expenses when you refinance your mortgage, but it can also mean that you pay a higher interest rate. There are two types of programs that lenders have for a no closing cost refinance. These are a yield spread premium and a roll in your cost program.

With the yield spread offer for a no closing cost refinance, the lender will pay all of the closing costs associated with refinancing your mortgage. You can choose to have only the true costs of the transaction included or the costs of the insurance and taxes added to it. If the taxes and insurance are prepaid, you will get a refund for that amount within 30 days of closing.

Although the interest rate you pay with this program of no closing cost refinance, you can use this method to lower your current interest rate. If you can lower the interest rate on your mortgage by 2 points and still walk away with no out of pocket expenses, this is a very good way to lower your mortgage payments and cut years off the term of the mortgage.

Under the roll in the costs program, you can have a no closing cost refinance if you have equity built up in your home. With this option, all the closing costs are included in the total amount you borrow. The advantage of this method is that you still qualify for the current interest rate. If you intend to remain in the home for at least five years before you sell, this is an affordable option in refinancing. The amount of the closing costs only adds a very small amount to the mortgage total and will play a small part in the amount of your monthly payment.

However, you do need to check around with various lenders because there are some who really mean what they say when they advertise no closing cost refinance. A no cost program should be able to lower your interest rate at absolutely no closing cost to you. Closing costs typically include the cost of getting title searches and credit reports. If you deal with your regular lender and have been making your payments regularly, they won't need to request a credit report. Since the title search was already done when you bought the home, this is already on file, so there is no need for another.

If you have equity built up in your home through the increasing value of real estate or through improvements you made, you might walk away from the no cost closing refinance with money in your pocket to spend as you wish. If you have a FRM that is at least 0.5% above the current interest rate, you can benefit from checking out the possibilities of refinancing your home. If you can afford to pay off a portion of the mortgage when you refinance, it will help you cut years off the term.

Debt consolidation loans are a great way to simplify your finances. You do this by rolling your current debts into just one loan. You can do this in the form of a secured or unsecured loan. A debt consolidation loan will generally reduce your monthly outgoings and ease the stress of dealing with several creditors and juggling multiple monthly repayments.

A debt consolidation loan will increase your total amount of your debt by spreading your repayments over a longer period of time. This should have the effect of easing the pressure on your finances by replacing several monthly repayments with one lower payment.

If you choose a managed debt consolidation loan it can offer a solution to your financial difficulties and provide a way out of the borrowing cycle.

Is a Debt Consolidation Loan suitable for your financial situation?

A debt consolidation loan may be a suitable option for your requirements if you fall into any of the following categories:

1. You are juggling and paying several monthly payments and you want to simplify your debts into one monthly repayment.

2. You are struggling to meet your minimum monthly repayments on your credit cards, store cards and personal loans and would like to reduce the amount of your monthly financial outgoings.

3. You want to reduce the amount of interest you are paying on unsecured forms of borrowing such as overdrafts, credit cards and store cards.

Advantages of a Secured Debt Consolidation Loan include:

1. By providing collateral for the Secured Debt Consolidation Loan you may qualify for more attractive interest rates and loan terms. This is important for sub-prime applicants considered to be high-risk candidates for a loan.

2. You will generally be able to spread your repayments over a longer period of time. This should enable you to keep your monthly payment as affordable as possible.

Disadvantages of a Secured Debt Consolidation Loan include:

1. A longer loan length will generally result in a higher total loan cost; the longer you are repaying a set amount, the more interest you will repay overall.

2. The loan rate offered to you is more likely to be variable. This may make controlling your budget more difficult. Your repayments may increase in the event of a Bank of England base rate rise. If you are late with your loan payments you could be penalised with a rate rise on your loan.

3. If you fail to keep up with your loan repayments you will be risking your collateral, home or car etc, as the lender has the legal right to repossess your collateral, home or car etc , in order to settle your loan. As always you must personally evaluate the risk before taking a secured debt consolidation loan.

I remember when "The Millionaire Next Door" came out telling people how the authors, who are marketing professors, had come up with a big discovery. They discovered more high net worth (wealthy) people in middle class neighborhoods driving a "beat-up pickup truck" (hey, that's what I drive!) than in high class neighborhoods.

These were results we have been well aware of as economists for many years. The reason that these marketing professors thought they had stumbled on something new is because many people are confused about the difference between income and net worth. The difference is crucial to your financial health. Income is nothing more than how much cash you bring in on a monthly or yearly basis.

People focus on income a lot because it puts the bling in bling bling! In other words income is hard cold cash coming in each month to buy goodies right now. It also pays the bills but does not get rid of them. Your cash flow tells you how much of your income you get to keep.

Net worth measures what you owe compared to what you own of value. It measures how much you are worth. Passive cash flow tells you how much of your cash flow would come in if you decided to quit going to work. You can see why guys like Robert Kiyosaki emphasize passive cash flow in their wealth building books.

The trick is to figure out how to get to the point where you don't have to work anymore if you don't want too. As financial economists we have known for years that living well within your means while saving and wisely investing as much as possible is the road to pumping up both your net worth and passive income so that you sleep-in every morning if you want to.

Let me give you an example of a simple decision my wife and I made that has had an enormous impact on our financial health. When we were married we decided we wanted to live in one of the upscale communities here in San Juan. This gated community is so big it actually has sub gated communities and numerous amenities such as the largest and most modern Olympic pool in the Caribbean.

We decided to purchase a 3 bedroom 2 bath condo that was within our means at $125,000.00. Now that we are wealthier and the condo has increased in value to around $200,000.00 we could sell it and move to a $1,000,000.00 house like the ones at the top of the hill our condo is on. We decided to remodel our condo instead and live each day as if we were in a luxury hotel.

Why was this a great decision? By living in a modest priced home we were really able to deck it out. Also, this is really important for you to understand, we are paying only one fifth in property taxes to the local government as compared to what we would if we "moved up" like many people do when their finances improve. Money really does roll down hill because I sure would not want to HAVE to cough up a bunch of cash each year just to pay property taxes!

Another danger people don't grasp is that local governments rely primarily on property taxes to fund their pork barrel politics. The primary source of revenue for most state governments is property tax! The local Puerto Rican government is now in a deficit. I guarantee that it has been discussed among the bone heads in the local capital that property taxes should be "reformed." That sure makes an expensive home a financial powder keg doesn't it!

Why do I suspect that most of the people in the million dollar community up above us are living above their means? Because they are the worst at paying their community fees and have had a lot of their services cut back! Just like they found out in the book "The Millionaire Next Door" many, many households in upscale homes are putting up appearances.

Many of these families are financially unhealthy, and deadbeats when it comes to paying what they owe. These families have less invested in the stock market because they have bigger bills to pay. These families are often less successful in the stock market because the pressure of their high debts focus them no short term stock investing where they are at a disadvantage.

Since we have lower costs in our modest home we are much less at risk if anything changes. Once we cash out the mortgage on our home we could even lose both of our jobs and get buy washing dishes at the local Taco Bell. That is certainly not the case when you have to pay property tax on a million dollar home!

When I first got started as a real estate investor, I had not mastered the borrowing game, was scared to death of the thought of having to go to a bank and "ask" for money to buy and renovate my deals.  There were several reasons for this, but the most prominent one was that I didn't think lenders would find me or my deals credit worthy.

Now... if you are a real estate investor or an agent who has investor clients you know how critical it is to have ready sources of capital... and in today's tightening lender market, it is even more important.

So... how did I overcome this fear of bankers and master the borrowing game?  I learned how to approach lenders, this included banks, hard money lenders and private lenders and instead of "asking" for funds for my deals, instead I sought to create relationships with each type of lender so that when I needed the capital for my deals, I always had it!

Mastering the borrowing game as a real estate investor can mean the difference between maybe getting a deal funded, or being able to fund all of your deals... and as I as often times have said allowing you to "buy with impunity".

I believe that mastering the borrowing game is so critical that I prepared a report that helps investors to understand how to approach lenders and how to get them to fund your or your clients deals.

I have included the first part of that report below. 

Part - 1 MONEY... and how to Master the Borrowing Game so that lenders will be tripping over themselves to lend to you.  I will be discussing this subject in four installments. 

Many people have asked me to share with them the primary reason for the successes I have achieved as a real estate investor.  In a word I would have to respond... MONEY!  In the business world this money is referred to "capital".  Without it you can't do a darned thing... With it you can build an empire!

And if I were to name the number one... no holds barred... absolutely... positively... the first amongst equals reason that real estate investors don't achieve their goals... are your ready???  DRUM ROLL PLEASE.........

THEY EITHER DIDN'T HAVE ENOUGH MONEY TO START... OR THEY RAN OUT AND DIDN'T KNOW HOW TO GET MORE IT!

IT IS THAT SIMPLE!

OK... so if it is that simple... how do I get what I need, or more to expand my business to accomplish my goals?  Are you ready for this answer!

It's all about...

RELATIONSHIP building.  That's it.  It's that simple.  So go out there and build some relationships and watch your empire grow.

When I mentioned above that ensuring you have a steady stream of funds available for your projects is based entirely on your relationships with lenders I wasn't kidding.  And when I speak of relationships, I am speaking about the kind where your lender is willing to spend an afternoon with you driving around town looking at your projects and sharing with you where the big money is about to be spent in your market.

These successful relationships will find you being contacted by your lenders to discuss the current state of the real estate market.  Where your lenders are seeking your advice regarding certain areas, how appraisers are valuing your properties, and even what other lenders are doing.

When you have relationships like that, you know that you can count on your lenders to get your projects financed. 

OK... who are these lenders?

Well, eventually you need to associate a name to a specific individual.  But, first you need to know that not every lender is the same.  So lets spend the rest of this report discussing the most important types of lenders.

Most investors take the path of least resistance when it comes to finding a lender.  That path is the residential mortgage market.  While this is an OK place to find funds,  it is not the best place for several reasons.

First, all mortgages in the residential market are controlled by rules promulgated by either FANNIE MAE or FREDDIE MAC.  These outfits are quasi-government organizations that take individual mortgages and bundle them into packages which are then sold to investors on Wall Street.  Since these Wall Street investors demand consistency with the products they purchase there are many rules that apply to these loans.

And you know what these rules are.  First and foremost to get a residential loan you must be subjected to a proctology examine... well not really, but it sure seems like one by the time your loan gets out of under writing.  If it makes it out at all!

Then you can only get the loan if it is in your name personally.  And how about the fact that this loan shows up on your credit score and impacts your debt-to-income ratio.  Or that you can only have 10 loans underwritten by FANNIE or FREDDIE, (kind of kills you dream of building an empire doesn't it).  Or how about this one, you can only purchase homes that don't need renovation.

It's amazing that we can even survive as investors with all of these crazy rules.

But we can! 

And here is the secret...

You need to be creating relationships with lenders who don't, I repeat don't bundle their mortgages and sell them to Wall Street investors.  Just think, if the lender is not selling their mortgage portfolio to outsiders, who do you think gets to make the rules?

That's correct.  They do.  So who are these banks?  Where can I find them? And how do I create this cherished relationship with them???

Tune in for the next installment. 

Investors have been feeling the painful reality from the recent market correction due to the sub-prime mortgage crisis, and are wondering where to invest their hard earned saving over the coming years. We listen to news reports almost daily talking about the losses suffered on the world stock markets, and have seen first hand the damage done to our stock portfolios and superannuation. As a professional investment advisor and dealer, I know exactly where the money goes in these hard economic times. The money always travels towards index futures and commodity markets because investors will scramble for new opportunities, which are currently not present in the global stock markets, and will only be found in other more versatile markets.

A commodity is a normal physical product used by everyday people during the course of their lives, or metals that are used in production or as a traditional store of wealth and a hedge against inflation. For example, these commodities include grains such as wheat, corn and rice or metals such as copper, gold and silver. The full list of commodity markets is numerous and too detailed for this article. The best way to trade the commodity markets is by buying and selling futures contracts on local and international exchanges. Trading futures is easy, and can be accessed by using the services of any full or on-line futures brokerage service. Traditionally, there is an expectation when trading commodity futures of achieving higher returns compared to shares or real estate, so successful investors can expect much higher returns compared to more conventional investment products.

The process of trading commodities, as mentioned above, must be facilitated by the use of trading liquid, exchangeable, and standardised futures contracts, as it is not practical to trade the physical commodities. Futures contracts give the investor ease of use and the ability to buy or sell without delay. A futures contract is used to buy or sell a fixed quantity and quality of an underlying commodity, at a fixed date and price in the future. Futures contracts can be broken by simply offsetting the transaction. For example, if you buy one futures contract to open then you sell one futures contract to close that market position.

The execution method of trading futures contracts is similar to trading physical shares, but futures contracts have an expiry date and are deliverable. Australian retail futures brokers that deal with commodity speculators do not allow the delivery of a commodity, so I will be making no jokes about having a sea container full of coffee delivered to your front doorstep because it will never happen. Futures contracts have an expiry date and need to be occasionally rolled over from the current contract month to the following contract month. I usually only have to roll a trade, when I am trading trend following signals and the trade turns into an extended hold position because my stop-loss or profit-target has not been hit in the time originally estimated.

You have probably heard that many commodity markets have fallen during the recent market correction, and you are asking yourself why I am talking about trading commodity futures. The reason is because the biggest advantage to trading commodity futures, for the private investor is the opportunity to legally short-sell these markets. Short-selling is the ability to sell commodity futures creating an open position in the expectation to buy-back at a later time to profit from a fall in the market. If you wish to trade the up-side of commodity futures, then it will simply be a buy-to-open and sell-to-close set of transactions similar to share trading.

The big problem that I have seen by talking to new traders is that they believe an on-line trading platform and the software tools supplied will make them a successful trader. You must learn trading techniques and develop trading strategies to become successful. The best method that I have found is by developing mechanical based trend following strategies that remove illogical decisions based on emotions. Mechanical trading can be defined as methods of generating trading signals and quantifying risk that are independent of the trader's discretion. The mechanical method is preferred because it is impossible to base all your trading decisions on a discretional method, as human beings are prone to changing their judgment, subconsciously, when trading over months or many years.

If you do not plan to develop your own mechanical based strategies, then you can use the strategies of any licensed investment advisor that specialises in trading futures markets. You will pay slightly higher brokerage fees, but will benefit from the advisor's years of experience. If you choose to use the services of a professional advisor, then ask the advisor if they trade mechanical based strategies, and the process of how they developed their own original back-tested models. Use only an advisor that has developed their own proprietary computer code for back-testing, as the over-the-counter retail back-testing packages can create false results, and are not designed to test every detail that is required for true professional strategy development.

If you have the desire to trade the lucrative commodity futures markets, then now is the time to start learning and getting involved. The commodity markets will always produce rising of falling trends, and with the abundance of information and trading opportunities available there is no reason for any investor to exclusively trade the share market when there is potential profits from trading commodity futures.

Is it that the approaching tax season is giving you chill in your spine? It is an obvious thing that you would feel the work pressure during tax season. Maintaining accounts, checking of balances and tallying totals with the finance documents are some of the important tasks that you will have to do before filing taxes. There is a strict need to manage all these accounts because the slightest mistakes can create so many barriers of problems for you. Finance accounting management is the most important task that has to be handled with utmost care.

Usually, it is the outsourcing services that come to rescue those accounting firms that have an excess of workload. Outsourcing is all about giving some part of the finance accounting work or the entire one to an outsider company that do the work for you. The outsider company has an especially skilled accounting staff that is trained in managing the finance accounting work. In fact, the increasing amount of workload on businesses and accounting firms has established a special place for outsourcing in the business market. Business ventures have been on a constant look out for outsourcing companies at the time of tax sessions.

Accounting outsourcing service guarantees better quality of service. It is because the companies handling outsourcing services concentrate thoroughly on the accounting work. Many accounting firms or business ventures outsource different accounts related tasks, such as generating accounts, financial statements, invoice generation, trial balances, pay roll processes, checking credit card accounts, profit and loss account and lots more. Outsourcing these services will save your money that would have been wasted in hiring a proper staff for managing such accounting tasks.

Hiring a trained staff will cost you like diamonds. It is because just paying the salary does not end the matter. House rent allowance, bonus, accidental expenses, overtime charges and many other things are meant to accompany the salaries. If you outsource your finance accounting work to other company, then a lot of money can be saved. The money saved can be invested in other related field and you can earn more rewards that you are earning now. This money can also be used for enhancing the performance level of other departments, so that you can achieve your targets well in time.

Apart from saving on monetary matters, another advantage of finance accounting outsourcing is that the outsourcing firms are skilled in doing the work speedily. These companies understand the need of getting things done at a faster pace. It is because of this that you get your work done in the half time, as your in-house staff is going to take. Outsourcing is surely advantageous for you. Finance accounting outsourcing is meant to shed off the excess workload regarding the maintenance of accounts.

It's no secret that between the year 2007 and 2030, some 78 million baby-boomers will retire. But with the growing financial crisis looming in Social Security, many are wary of how long their benefits will last. Add to that a genuine concern over whether or not they have saved and invested enough for retirement and you can understand the stress level of 41 million people who are now ages 50 to 60.

What choices you make and what you do in the next few years will be key to your future security. This is the time to maximize your efforts to save for retirement, thoughtfully adjust your investment portfolio and carefully consider exactly what you'll do for income security when you no longer have a paycheck coming in from your job or business. Here are six practical ideas that can help you make the necessary adjustments:

• Move to a Less Expensive Region of the Country

America is full of opportunity, and there are many communities where the cost of living balanced with the lifestyle, health care services, community and recreational facilities are well-suited to your needs.

• Get a Financial Makeover

Hiring a financial advisor who has the credentials, experience and personal integrity you need would be the next step. As you close in on your retirement years, monetary accumulation shifts to protecting and preserving the money you have.

• Reconsider What You Live On

Many financial advisors suggest you limit your spending and carefully monitor where every dollar goes in the five years prior to 'pulling the trigger' on your retirement. Budgeting makes sense anytime, but when you have to make your money last longer, it's imperative that you are on top of expenditures by category and average dollar spent per month.

• This is a Drill, So Look at What You're Doing

In your five-year 'get ready' period, make up a spending budget that reflects only the income you expect from your social security, investments and other savings. Then in the first year, fastidiously track every penny. Your results in the first year can be used to adjust in the second year, third year and so on. That way, by the time you 'arrive' at retirement you'll know whether you can really stop working or whether you'll need to either find part-time work, have a business of your own, or make adjustments in your investment portfolio - or all three.

• Eyeball Your Calendar, then Circle Your Retirement Date

Many people assume that Age 65 or 67 or 70½ is their 'ideal' retirement date. If you were to circle a date on your calendar and treat that as the day you 'stop working' you may be in for something of a surprise. 'Active Retirement' is a lifestyle based on enjoying what life has to offer - time with family, enjoying recreational pursuits, travel, etc.

It can also include owning a small business of your own that you enjoy. Look at your hobbies, avocations and community interests. You might have a part-time or full-time income waiting for you in those fields. You might even have a full-time income from a part-time enterprise. For example, you might start an e-commerce business or own rental properties, etc.

• Adjust Your Retirement Account

If you have 401(k) at work, you'll probably do well to roll it over to an Individual Retirement Account ('IRA'). If you've had these plans at previous employers, you can roll it over into a 'Self-Directed IRA' and use the money for investments you're familiar with. For example, the money might be used to invest in income-producing real estate, with growth and income being in favor of your retirement account. Then when you retire, you'll enjoy the benefits of having invested well in holdings that grow in equity and have paying tenants.

President Barack Obama will need to act fast to begin his plans for a set of more drastic measures to extricate the United States from its present weakening economic condition. This is what Newsweek International Editor Fareed Zakaria wrote in his February 2 Newsweek essay entitled "I Got It Bad (And That Ain't Good)". "The American financial system is effectively broken. Major banks are moving toward insolvency, and credit activity remains extremely weak. As long as the financial sector remains moribund, American consumers and companies -- who collectively make up 80 percent of GDP -- will not have access to credit, and economic activity cannot really resume on any significant scale. We have not turned the corner. In fact, we can't even see the corner right now," Zakaria writes.

No relief in sight - yet

Under normal conditions, the presidency of Barack Obama would bring a lot of great benefits for your billfold. During his campaign, he promised to transfer the tax load toward the moneyed sector, provide the uninsured with health coverage and subject financial products to more stringent rules.

The country, however, is not under normal conditions, not by a long stretch of the imagination. The big financial establishments have virtually vanished overnight. American carmakers are just about ready to follow suit. Retirement funds are nearly depleted and last year alone, job losses have run into the millions. There is no relief in sight as yet for the current economic crunch which is getting worse by the day.

Runaway train

Obama's "change you can believe in" should more likely be "change we hope that Obama can sustain". President Obama and a Congress controlled by the Democrats will have to roll up their sleeves as they have more to do, and more taxpayer money to spend, than anyone would have foreseen several months back.

Former International Monetary Fund chief economist Kenneth Rogoff in a statement said that the current recession is like a runaway train and Obama's effort is all about preventing it from running off a cliff. According to Zakaria, President Obama "faces a terrible dilemma. He needs to act quickly and on a massive scale."

Massive scale action needed

Large scale action is needed to keep the financial system from bleeding to death. The general American public, however, believes that far too much money have already been spent on bailing out the ailing banks.

Zakaria believes that the U.S. has not spent enough. According to him, the present economic crisis has caused an extreme degradation of American power. Even during the Iraq war, when much of the global community was infuriated by ex-President Bush's unilateral stance, it was highly held that America possessed the world's most advanced economy and its financial system were the most advanced and developed.

That system is now perceived globally as a fraud, and the reactions of political and business sector range from utter disbelief to rage at the image the U.S. now projects.

Senior Editor Daniel Gross writes of how an alarming number of firms and companies are giving up their finance-restructuring work and instead sell off their inventory and shut down. "Rather than soldier on, many operators have opted to simply fold, returning money to investors.

Companies, homeowners and money managers willing to quit rather than fight is both a symptom of the nation's deep economic woes and emblematic of the challenge the Obama administration faces," Gross writes. "Our 'Yes, We Can' president is going to have to fix a 'No, We Can't' economy."

The length of time to rebuild your credit history (thus improving your credit scores and your chances of getting a mortgage) after a negative change depends on the reason behind the change. Most negative changes in a credit history are created by the addition of a negative element to your credit report - elements such as a late payment or a collection account. These negative elements will continue to affect your scores in varying degrees until they reach a certain age. For example, credit inquiries remain on your credit report for up to two years. Delinquencies will typically remain on your credit report for seven years. Most public record items also stay on your report for seven years, with the exception of some bankruptcies, which may remain for up to 10 years and tax liens that are unpaid, which remain for 15 years. The affect these items have will, however, diminish over time. Each month that goes by will reduce the overall affect of a negative item.

How long does it take for current changes to affect your history?

First of all, most creditors send information updates to the three main credit repositories routinely, however this doesn't guarantee that you're most recent payment will show up on your current credit report. The credit repositories update their records as soon as they receive the information from each creditor, but there can be lag time in the process of getting the information from the creditor.

If the negative information on your credit report is accurate and verifiable, time and the conscientious use of credit may be the most effective weapon in restoring your credit history. Late payments and accounts that have been charged-off will eventually roll off of your report after seven years. Creditors look at your pattern of payments as well as one-time occurrences, so remember that a good pattern of payment can make a positive impact on those past blemishes which.

How long does it take for corrections to be made on your credit report?

If you find a mistake on your credit report you should sent a request, to the credit repository that is reporting it, to have it corrected. The credit repository must investigate your claim within 30 days (unless it is frivolous). If the item is incorrect or even if it cannot be verified in the thirty day period, the item must be deleted or changed as you requested. You can also request that an updated copy be sent to any individual or organization that has received your credit report in the past 12 months.

What are some quick things you can do to improve your credit history?

Make all current payments on time (without exception). This is always a given.

Avoid opening any new credit accounts other than the mortgage you are preparing for.

Consolidate your mortgage rate shopping to a short period of time so that the inquiries are considered one inquiry for one new loan rather than several inquiries for multiple new accounts.

Pay off or otherwise resolve any disputed accounts or accounts that are in collections. Eliminating even small collection items like a parking ticket can bring your score up 15-30 points. To speed up the process, get a letter from your creditor that shows "collection paid" or "collection deleted" and fax it to the repositories, talking to them on the phone and coordinating a quick update of your history if possible.

Check your credit report and immediately request corrections to any mistakes.

Reduce your overall debt, especially any revolving debt balances such as credit cards, but don't close the account. Just leave them with a zero balance or a balance below 25% of the total available credit.

Take for instance a 2007 Dodge Caliber, economically priced at $7,995. Financed at 6.9% for 60 months that's only $158 a month. Take a look at some of the Caliber's features:

The Dodge Caliber engine has 16 valves with sequential multi point fuel injection. The variable valve control coupled with a cylinder with I-4 configuration ensures that the car attains maximum speed in the shortest possible time. The 17" wheels have independent suspension. Both the front and rear wheels offer anti-roll bar protection.

The 2007 Dodge Caliber SXT Hatchback offers maximum comfort and is well equipped to ensure maximum safety for the occupants. Features include an FM/AM radio and CD player and air conditioner. Driver and passenger doors, in the front and back, include door bins and there are cup holders for everyone. Passenger and driver side sun visors include vanity mirrors.

Safety equipment includes remote keyless entry, overhead, front and side airbags for driver and passengers and knee airbag for the driver, ignition disable, panic alarm, delayed auto-off headlights, and power door mirrors and more. A tilt power steering wheel enables the driver to adjust to his or her comfort level.

Other standard equipment includes front reading lights, wipers both in the front and in the rear, tachometer, rear window defroster, perimeter approach lights, and illuminated entry, all adding to the comfort of the passengers and enabling the driver to drive the car with more confidence.

The car is also popular for its fuel economy. This front wheel drive car gets 28 MPG in the city and 32 MPG on the highway. The fuel tank has a 14-gallon capacity. Leg room is 35.6" in the rear and 41.8" in the front while the exterior length of the car is 173.8" and the width is 68.8". This Dodge Caliber SXT Hatchback seats five with ample shoulder and hip room. A front reclining bucket seat offers comfortable adjustments for both for the passenger and the driver. The rear seat has a split fold design to add cargo space when needed.

The American Dream; what does it mean to you? People have different jobs or hobbies or passions in life, but one constant remains the same among all of us, and this common thread that unites our dreams is that of Home Ownership! Unfortunately, in this current economy, achieving the dream of home ownership is becoming more difficult than any time in recent history. Too many Americans are following the unwritten rule of home ownership that tells us to 'Find a Realtor and Get a Bank Loan'. In past economies, with thriving job markets, lower inflation, and less credit restraint, that 'rule' may have made sense to follow.

But our current economic system is making it difficult for the average person to achieve the American Dream of Home Ownership. In times of unstable job markets, with double digit unemployment forcing people to become self-employed to make a living, the banks are requiring a W-2 stable job history in order to issue loans. In times of a great credit crisis, the banks are requiring stricter credit scores than most people are able to achieve. Fewer and fewer honest, hard working Americans who are used to following the 'traditional rules' for owning a home are having the opportunity to own their own homes.

What if you could achieve the American Dream of Home Ownership without the assistance of a bank?

The purpose of this document is to allow motivated home seekers an opportunity to write a New Rule of Home Ownership that allows you to declare your freedom from the services of a Bank in order to partake in your piece of the American Dream of Home Ownership!

In order to understand the New Rule of Home Ownership, let's take a closer look at the existing rules of purchasing a house with Traditional Bank Financing.

The first part of the Traditional Bank Financing focuses on Qualifying for a Loan. While many different loan packages exist, the most common loan written in today's market is an FHA Loan, and therefore, we shall use their guidelines as an example. The following are guidelines for an FHA Loan:

o FHA Loans require a minimum credit score of 620 to be eligible for a loan
o FHA will require 3.5% down on the home. This down payment MUST come from your account. You are not allowed to borrow from friends, family or anyone else. You must document where the funds for the down payment came from. Specifically, the source of the down payment must be from your personal checking, savings or retirement account and CAN NOT be borrowed!

In order to work with most Realtors, you must first get pre-approved for a bank. Many Realtors won't even show you a house unless you can prove that you are able to afford and receive financing for the property. This painful process of pre-approval from a bank can take 2-3 days and involve the following steps:

o Proof of Creditworthiness
o You must provide 2-4 years worth of tax returns!
o You must provide your last 4 pay check stubs if you are an employee or an updated Profit and Loss statement if you are self-employed, a business owner, an independent contractor or entrepreneur. However, if you cannot show a consistent pay stub as proof of income, then you may want to skip ahead to the part of this document where 'Owner Financing' is discussed, as you will find it increasingly difficult to qualify for a mortgage.
o Your bank may require you pay off other debit to help improve your credit score to qualify for the loan
o And the worst part... this proof of creditworthiness is done throughout the entire home buying process! Even once you qualify and pick out the home of your dreams; underwriters at the bank will have you go through the same process to make sure you still qualify.

Now that you are pre-qualified for the home of your dreams, you may finally begin the process of working with a Realtor to find your new home.

Once you've found your home, the Traditional Banks will want an inspection performed on the home and may require the seller to fix EVERYTHING for the bank to finance your loan. Some people just want a small discount on the house and they will do their own repairs however, many times a traditional bank will not allow you to do this! These small fixes may add to the total price of the house.

Also, expect to pay Realtor fees, bank fees, filling fees, "point buy down" fees, loan origination fees, closing costs, title fees, surveys, appraisal fees, and anything else imaginable for which to be charged. Though many of these fees can be rolled into your loan, over the long term, you may be paying an extra 10% in unnecessary Financing Fees that are loaded into your loan!

What if there was a quicker, easier, and less intrusive way to take your share of the American Dream? What if you could look at homes without having to pay a Realtor fee, pre-qualify for a loan, and go through a 3 month home buying process? After all, we ARE in a BUYER'S market in Real Estate, so why shouldn't we be able to buy?

Consider the possibility of declaring a New Rule. Instead of working with (and paying for) a Realtor, why not work with the Seller directly? Especially if that seller is a Professional Real Estate Investor who is not only willing to sell the house in a quick and simple matter, but is also will to FINANCE the sale of the house on a short-term basis!

Earlier in this eBook, we went over the process of the Tradition Bank Financing. Now, we shall detail the 7 Easy Steps of Purchasing Your Home with Owner Financing:
* Contact the Seller of the Home without having to pre-qualify for a loan and look at the home to decide if you want to purchase.
* Settle on a price
* Agree to a down-payment and interest rate
* Once you've agreed to a price, down payment, and interest rate, complete a Deposit to Hold form and pay this 1% fee applicable to the sales price of the property. This fee will take the property off the market while you are closing on the home.
* Fill out credit application; provide 2 most recent paycheck stubs and bank statements as proof that you can afford the monthly payment.
* (Optional) If you chose, you can order your own home inspection to review the condition of the home
* Close in 2-5 business days

Buying a home from a Professional Real Estate Investor is quick and easy. Once you have settled on the price and monthly payments, you have minimal paperwork to complete and can close on the transaction within one week! The following is a summary of some of the benefits of Owner Financing compared with Traditional Bank Financing:
* In many cases, there is no minimum credit score required
* Instead of 10% Traditional Bank Finance Fees / Closing Costs, your Owner Finance Fee averages to 5% of the transaction.
* Unlike Traditional Bank Financing, your down payment for Owner Financing may come from almost anywhere (as long as it is a legal way to raise the funds). You can borrow the money from family, friends, others. There are also some tax incentives for you to use part of your retirement savings. Either way, with Owner Financing, you are allowed to raise your own down payment as you see fit!
* You and the Owner Finance Seller will agree on a time to "close" on the home and may close within 5 business days!
* Your Owner Finance loan is dependent on your down payment and ability to pay the monthly payment and NOT on your credit or having a W-2 Job. Therefore, Business Owners, Entrepreneurs, Independent Contractors, and the Self-Employed may qualify for Owner Financed Homes!
* You are not required to provide extensive documentation to obtain your loan

Due to the efficiency, simplicity, and cost effectiveness, you can see why buying directly from an investor with Owner Financing is the New Rule for Buying Homes. Owner Financing interest rates may be a little higher than market price when you initially purchase your home, however, this higher rate, along with a sizeable down payment, will actually help you obtain conventional financing at a lower rate down the road when you decide to refinance!

A good way to look at Owner Financing is that is a solution to buying a home with short-term financing. Once you have paid your Owner Financed note on time for say 12-24 months, it's easier to refinance your existing note with a traditional bank loan at a lower interest. It's much quicker, easier, and less intrusive to refinance a home into traditional financing then it is to purchase a home with traditional financing!

The following example will detail the process and the costs of owner financing:

o John chooses to purchase a beautiful home for $150,000 with a traditional bank loan. John's credit score is 590 and the bank will not loan him any money until his credit score is at least 620. John understands the importance of owning a home and wants to buy something now.
o John finds a home that is being offered for $150,000 with Owner Financing. John has $15,000 to put down and wants to close in 5 business days. John's new loan is at an 8.5% rate for 30 years and the sellers would like John to refinance his loan in 24-36 months. John's monthly payment is $1,350 and it includes Principle, Interest, Insurance, and HOA fees. John is happy because he can afford $1,350 per month and is able to take his part of the American Dream!
o As John pays on time for, say, 24 months, John has an excellent payment history with his current lender. John will also need to be working on his credit in those 24 months to raise his score to the current minimum of 620.
o When John approaches a traditional bank John will be able to demonstrate the following:
o John's $15,000 down payment shows that he has 'skin in the game' and is not just going to bail on his house payments
o John CAN afford and has been paying $1,350 a month at a 8.5% rate for his loan
o John's credit score is now above the minimum required 620
o If John can afford $1,350 a month at 8.5% interest, John can easily afford a $1,100 a month payment at 6.5%!

It is much easier to refinance a loan rather than trying to get a loan for the original financing! Since you are already in the house, there is no inspection required, no lengthily closing procedures and there is no longer all that extra red tape that is associated with buying a home with traditional financing!

As you can see, purchasing with Owner Financing can be easily done and quickly closed for those who cannot use a traditional bank loan but deserve to own a home now.

Summary

In today's market, due to tough economic times, there are many people selling their properties. Yet, despite the fact that this is a 'buyer's market', it is tougher to buy a home with Traditional Bank Financing than ever before. Following the old, unwritten rules will lead you to a long and unhappy life in an apartment complex. Motivated home seekers looking for their piece of the American Dream are unable to achieve this great promise by traditional and conventional means due to stringent lending requirements initiated by the very same financial institutions that gladly took over 1 billion of our tax dollars to bail them out! Banks tightening up on their lending practices is causing a shortage of homebuyers in the market. This is one of the biggest reasons that real estate values continue to free fall because there are not enough people who can qualify for available homes while following the unwritten rules.

Inspired home seekers, looking to break away from the old rules and ready to write his or her own New Rules to Home Ownership will be able to take advantage of this buyer's market, and with Owner Financing, you will see more and more people purchasing homes. If you are in the market to buy a home however, you cannot qualify for a traditional loan, I strongly recommend you contact a company that specializes in Owner Finance Homes.

Stop drowning in the current economy and create your own American Dream!