Author: Suzana

Use “Wraparound Mortgages” to Improve Cash Flow by 50%

Two important strategies for real estate investors to improve cash flow are Long Term Lease To Own and Real Estate Contract. Real Estate Contract is a form of owner financing and can be structured even the Seller/Owner has an existing loan.

Wraparound mortgage also known as an all inclusive trust deed (AITD), commonly called a “wrap”. In a wrap-around mortgage transaction, the seller accepts a promissory note (or a contract for deed or land contract) from the buyer for the total amount of the purchase price less any down payment paid by the buyer. The new purchaser then makes monthly mortgage payments to the holder of the note, typically the seller, who in turn is responsible for making payments to the primary mortgage(s) on the property.

Usually this is a short term note with a 3-5 year balloon payment due. The promise behind this type of transaction is to allow the buyer time to obtain standard mortgage financing. Once the buyer is able to refinance the property all existing mortgages are paid in full.

One of the benefits, in addition to faster sale, quicker close, is that the seller often charges a higher interest rate than their existing mortgage to the buyers. This additional interest is called a spread and is interest income for the note holder. The interest income can usually range from 20% to 40% more than rental income. It greatly improves your bottom line compares to simply renting the property to a renter. Your cash flow can easily improve by more than 50% because the buyer typically will also pay for your property tax and insurance premium.

Due-On-Sale Clause

A due-on-sale clause requires that the entire mortgage balance is due if the home is sold. If mortgage payments are paid timely, lenders are not known to enforce this clause regularly, but buyers and sellers contemplating this type of transaction must be aware of all the risks.

The best ways to alleviate such risk is to require the use of Escrow Company that collects payments from the buyer and disburse payments to the seller’s loan lender before any remaining balance been forwarded to the seller. This makes sure the first loan is paid on-time. It’s also very important to keep the seller as the insurance’s beneficiary instead of the buyer. Changing beneficiary on the insurance policy is one of the major reasons the lenders find out the wraparound mortgage. In the current real estate market though, as long as it’s a performing mortgage, the chance for a lender to call due on a loan is slim.…

Other Costs Involved With Buying a Used Car

When buying a used car it is important to understand the total cost that you will be charged. Buying a new car would result in many additional fees that you may not be aware of, but will be forced to pay in the end. However, buying a used car is much smarter because you have full control over the “hidden fees” that a dealership would not tell you about. It’s important to understand that when buying a used car off a lot there is normally no guarantee offered by the dealer. So, before you decide to buy a car it’s a smart idea to dig a little deeper into the history of that specific car.

What Information Do You Need?

When buying a car from an authorized dealer you must receive some very important information before signing your name and taking over ownership. Unless you want to be left with a multitude of random fees, or even worse, a broken down car that has been in four accidents, you should get the following information from the dealer:

-Does the car have damages that amount to above $2000 to repair: A dealer is required to give you this information, and largely to your benefit. Purchasing a car that was in a major accident decreases the value and may result in additional repair fees that come out of your pocket. Depending on the accident, you should make sure there was no serious work done to the car that would result in additional charges to you within the first few months.

-Was the car ever used as a police vehicle, taxi, emergency rescue, a rental or leased vehicle, or even in organized races: A dealer is required to give you this information in writing because it’s very important to the buyer. If the car was ever used as any of the above examples then it’s value has decreased significantly.

Now that you understand a few factors that determine the actual value of the car, it’s time to go over what charges you are expected to pay when purchasing a used car;

– Dealer Prep Costs: Before you arrive on the lot the dealer’s staff has done significant cosmetic work to the car. They will make sure the car looks as good as possible for you, and in return you will most likely pay a small fee that is included in the overall price.

-Sales Tax: When you sign the papers and buy your used car you are going to have to pay a sales tax. Depending on what province you are buying the car the sales tax varies, and will range from 8-10%.

-License Fees: If you did not already have a license then you will be required to pay an upfront fee. Once again, depending on the province this fee will vary.

-Insurance Fees: As you are probably already aware of you will need to pay insurance fees on your new car. This fee will vary according to the type of car you are buying and your driving history. Consult your insurance agent for more detailed info.

-Interest Fees: If you arrange to finance the car from a dealer then you will be charged interest fees on a monthly basis. Interest fees will vary according to your contract with the dealer so it’s important to know what your monthly payment will be before you buy the car.

-Repair Costs: If the car needs any type of repairs then you will be charged for this. As mentioned earlier, repair fees are something to look out for when buying a used car.

-Costs of Upgrades or Additional Options: When buying a used car the dealer will also offer you upgrades or other options. These options will only cost you money if you decide the upgrade is worthwhile.

-Total Cost: Although this is self-explanatory most people forget about all the small costs that amount to the total cost being higher than the original price tag. With the above list of additional fees you will be able to make a well-educated guess on the actual price of the car.

Before you buy or finance a used car it is important to go through the above list and know what you should be looking for. Buying a used car can be a great experience, and you can get the best value for your dollar as long as you know what to look for. Don’t hesitate to ask the dealer any questions you may have about additional fees, lending fees, and other costs. The dealer will give you a straight answer and you will be well on your way to buying your next dream car.…

Wealthy Affiliate Membership – Is it Money Worth Spent?

A paid membership site, Wealthy Affiliate University is a great place not only to learn but can be called one stop centre that can cater the needs ranging from newbies to more advanced internet marketers. Are you wondering what they offer inside? Read on to find out more about it.

First, the trainings provided.

To sum it up, it is actionable. What does it mean? In step-by-step training, you are given direction like “after you do this, you do that” kind of instruction although I might add that the time space before the next training made available is a bit turn-off thing for me. You know, to ensure that you did the assignment and get the lesson ‘sink in’. You decide yourself if you can benefit from that kind of training, provided you complete the assignments diligently. The very fact that I get this article published albeit lacking is a by-product of the training provided.

Second, the tools.

Last time I checked, there are 10 drop down options for “Tools and Research” tab. I don’t even use them all to be honest. I just use link cloaker tool, keyword research tool and their unlimited hosting. Having all in one place is certainly convenient can improve your efficiency and time saving as well. Surely, the tools provided can be found anywhere else online but the important point here is you have it all in one place.

Third, the community.

Having a community that share the same interest with you certainly encourage success. Not that they are no free forum on the Internet in internet marketing niche though, you can find one by easily search it on search engine but the difference between paid and free forum is the level of commitment, the drive to help others to achieve success together.

There you have it my view on Wealthy Affiliate membership. The trainings, the tools and the community in exchange for a fee. Anyone can tell you all the good points about something, but at the end of the day it is you yourself that makes the call.…

Make Money Rebuilding Expired Domain Names

There are hundreds, maybe thousands of domain owners who have neglected paying their domain names and web hosting fees. As a consequence, the web hosting has stopped and the domain has been confiscated by the issuer. The reasons why the original owners stopped payments may be varied. Some owners even got to the point that the website was earning something for them but then suddenly they stopped maintaining it. You can make money on these neglected domains.

If you visit sites which sell or auction off expired domains, you may catch a glimpse of the important statistics of the abandoned web pages. You probably have to do some searching to find the right site. Then and there you might see some domains whose subject matter you could make money on because you know quite something about it. Maybe one or two of these domains will have good page ranks and great links. You should choose one which was already getting a sizable amount of traffic when it was abandoned to make money on. If you are absolutely convinced that you will be able to manager refurbishing the site and making it earn more than it was, you could proceed with acquiring it.

It is up to you if you want to copy the original or make money with another version that closely resembles the original with some improvements. The fact that the expired domain was already generating income means that it already had regular clients. This means that putting it up again may get back those clients the minute it is up again and make money for you immediately. Improving it will generate more quality traffic for the domain.

The first thing you need to do to improve its page rank is to add good content to it. Backlinks boost page rank as well, so maybe you could provide a few backlinks to your new domain from your existing website(s) or Blog. You might want to submit articles to a topical article directory and again link back to your new domain from the article.

Of course, to make money you will need to monetize it with products from companies with which you are affiliated. If you haven’t joined any affiliate yet and your new domain is your first, you should think about joining Clickbank or Commission Junction and make money on their products.

The advantage you get from buying expired domains that were already generating income for the previous owners is that you won’t have to start your own website from scratch to make money. Instead of starting from square one, you have already made some headway just by purchasing that domain.

Of course, we need to mention that fact that the name itself may be something that can really make money for your line of business. A lot of abandoned domain names are very good ones and it is not true that all the best names have already been taken. may have been, but a few are available again for you to purchase. So if you are the kind of person who is particular about names, you should be visiting expired domain sites daily and watching out for a really catchy names that will make your business sound very good.…

Online Trading – The Best Way to Make Money!

With internet connection we have a world of opportunities too lying ahead of us. It is up to us to knock the door, and choose the path that suits our interest. I would specify on interest as to excel in any field, one has to have passion. You must have a passion for the subject, a passion to stick-on even if it is a dark moment, having the belief that there is hope and light at the other end. Unless you believe in what you do, you will not be able to convince others too.

Now that you have the clear idea of what is your subject of interest search for opportunities in the same field. Whether it is writing, or art, business, selling, counseling or trading, ever, everyone has a scope to try their hand and make money.

Talking of trading, internet moved the stock market and the foreign exchange trading to your homes. There is no need to quote, bid, buy, or sell personally. Everything happens online, by simply clicking the mouse! Yes, with no exaggeration internet has made every thing easy and simple as well as swift.

Those who know little about trading, you can be a stock trader or a forex trader, and also earn money easily online, if you understand the basics. Forex is foreign exchange. Each countries currency is valued against the US dollars. The trader can exchange it for another currency in a expectation that the newly purchased currency will rise up in value. Thus when the value rises he eventually earns the profit.

Stock trading also runs on similar lines. Once you have an online account after registering yourself, you can install the soft ware that allows you to be in the actual trading market by logging in using username and pass word. Thus you can be a participant from the opening bell till the closing bell of the stock market. The spikes in the graph and the changes in value will be showing graphical presentation on your screen.

A trader buys the desired number of shares of a particular stock at a particular value and sells it when the value increases. Some traders invest and play safe, so that the swinging motion of the stock market and the volatile changes in value do not affect their investment. Some people take risk to earn daily by trading intraday. Intraday trader trades almost daily even when the market is low. Some experts short sell trades when they have actually not invested the amount on which they risk and buy shares.

Online trading requires one to study the in and out of share market, and study the patterns of a few trades. The opening of the market, its impact, the impact of politics and policies, government rules, change in price of commodities, etc everything changes the movement of the stock market. At times predictable, and many a times not, online stock market trading is one of the easiest way to earn money. You can earn double your investment in a short span, and make money for a lavish life style and luxury. There are many stock brokers who have rags to riches story by trading online from home!…

Screwflation and the Barbeque Recovery

As we go through life we see that certain events, technological developments and general changes in our social behaviors often give rise to new words or terminology. For example, as a result of various technological developments over the past decade or so, most of us are now familiar with terms such as “smart phone”, “hotspot” and “phishing.” You probably know what a “tweet” is even if you’ve never used Twitter. Thanks to Facebook, you can now use the word “friend” as a verb.

Sometimes, technological developments create the need for a word to describe something that existed all along, but was so ubiquitous that no other word was necessary to describe it. For example, the widespread usage of e-mail has allowed us to now refer to the US Postal Service as “snail mail” while the creation of the mobile phone requires that we refer to the old technology as a “landline” phone. Most traditional phone calls had always travelled over landlines, but we didn’t refer to it them as such until cell phones became common.

Science has also yielded some new words and terminology over the past few years, or at least made then a part of everyday language. Most of us probably have some understanding of what a “carbon footprint” is, regardless of whether or not you believe in “global warming” or “climate change.”

Economic events of the past few years have given rise to new words and terms as well. Thanks to the financial crisis, you are probably quite adept at using “subprime”, “bailout” and “toxic debt” in cocktail party chatter and you certainly know that our largest banks are still “too big to fail.” The recession that lasted from December 2007 until June of 2009 is now referred to as the “Great Recession” and that’s fairly apt given that is was so severe. Perhaps one of the most well-known terms of all – the “new normal” – was coined by Bill Gross and his colleagues at the investment firm PIMCO; you might have read about the new normal while relaxing on a “stay-cation” recently.

There are a couple of new terms over the past year that haven’t been as widely adopted, but which I believe are worthy of further integration into our vocabulary. You probably know of the stagflation – the period of high inflation and unemployment that persisted during the 1970’s – but you probably haven’t been introduced to “screwflation” until now. Screwflation is a word that was coined by hedge fund manager Doug Kass and I think it does a good job of describing the current economic environment. In its simplest form, screwflation means the following: everything that you own is going down is value, meanwhile everything that you need to buy is going up in price. The past decade served-up two stock market crashes and a housing market crash, so chances are good that you’ve lost money on some of your largest assets in the past 10 years. Meanwhile, everything that you need to buy – food, energy, healthcare, education, and so forth, continues to go up in price. In other words, middle-class Americans have gotten screwed in the past decade and now retirees are left with pitifully-low interest rates on their savings and have diminished ability to pay for their post-retirement needs.

Turning to the next word, I first read about the “Barbeque Recovery” from Paul La Monica, an editor at CNN Money, and I believe this term does a good job of characterizing the economic recovery: very slow progress in the job market and overall economic growth that is considerably below the long-term potential. For those not familiar with barbeque (or simply “BBQ”) it is a method of cooking that utilizes very low amounts of heat over a very long period of time, often referred to as “low and slow.” As someone who lives in the Texas Hill Country – arguably the birthplace of barbeque brisket – I have a certain affinity for this term. However, while the “low and slow” method of cooking may be perfect for a brisket, there is no question that it is a disastrous condition for a heavily indebted economy that has just endured twin asset price collapses in stock market and housing market.

I hope you all have a good week ahead. If you happen to find yourself involved in an economic discussion with friends and family, perhaps you’ll be able to contribute by talking about screwflation and the barbecue recovery.…

Teaching Our Teens The Danger Of Paying Only The Minimum Payment

Knowing how to handle credit is extremely important but it’s not a lesson that your kids are likely to learn in school so it’s crucial that we as parents educate them on the dangers of paying only the minimum monthly payments on credit cards.

Money management is best taught hands on. Your teen may be at that point in their life where they’re working and receiving a paycheque. This is a great time to help your teen open a chequing account which will teach them how to write cheques and learn about bank fees. Once your teen has a hold of managing their account, then it’s time to introduce the credit card.

A credit card is instant financial gratification, especially for a teen, which makes it extremely easy to spend more on their credit card a month than their income. The majority of people who get into this habit tend to make only the minimum monthly payments, which is never a good idea unless you’re the bank who is making a lot of interest off your balance owing.

We need to show our children that making only the minimum monthly payments is simply just paying down the accruing interest which results in the balance never decreasing. Our teen needs to understand that their balance will always remain and will only increase with future purchases,which will lead to a debt so great that can only end in financial disaster. In order to avoid this, we must pay more than the requested minimum payments.

A good way to start your children on credit cards is to apply for a pre paid credit card which will allow parents to set the spending limits and monitor where your children are spending money so you can have discussions with them about their habits.

Stressing the importance of savings and living within your means is one of the great lessons you can give your child to enhance their lives.

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