Real Estate

Top Business Leaders Reveal the Secrets of Success

2009-03-21T06:43:00.000-07:00

by: Jillian Gregory

Out of the bevy of reality television shows today, no TV show affects the business minds and goals of entrepreneurs everywhere more than “The Apprentice”. The show stars Donald Trump, the famous, wealthy real estate and business icon that has become a household name. Donald Trump has been in business for several decades and knows the secrets to becoming a highly successful businessman.

In the past, public indications of his success were mainly found on buildings in New York City such as Trump Towers. He has been a major player in New York City and in the business world for the past few decades. However, the general public didn’t always have intimate access to his world like they do now through “The Apprentice” television show. On the show he interviews several candidates for a highly coveted position in his company. The candidates work on various tasks over several weeks. They rely on their education and experience to help them succeed.

The candidates and any business professional would benefit from learning the secrets of Donald Trump’s success. You might not have the opportunity to be on the show, but you can listen your way to success instead. Invest in your future by listening to Trump: How to Get Rich by Donald J. Trump. Donald Trump provides valuable insights on how to become a champion in business and reap financial rewards previously unimaginable. He covers a wide range of topics from investing to hiring the best employees.

Donald Trump is not the only business guru dispensing advice and anecdotes about his personal success. Steve Jobs revitalized Apple and returned it to dominance among technology companies. Jack Welch brought General Electric to new levels of success through innovative and unique business methods. Experience their business journeys by listening to The Second Coming of Steve Jobs by Alan Deutschman and Jack: Straight from the Gut by Jack Welch.

Interested in a business success story rifled with scandal? Listening to The Rockefellers by Peter Collier will suit your fancy. The Rockefeller family created a dynasty that built a mountain of wealth, but also evoked family of problems. Learn the affects of success that were both beneficial and detrimental to the Rockefellers.

Want to hear about other entrepreneurs? Check out the Venture Voice Podcast by Gregory Galant or the InfoTalk podcast from Podtech.net. Take an inside look at how to start a business, where technology is headed and other entrepreneurial issues.

Pop in these audio books on your car drive or train commute to work. Listen while you are working on paperwork at home or exercising in the gym. Take the time to become business savvy and learn from the pros. You’ll be glad you did as your bank account swells and your business takes off.

About the author:
Jillian Gregory writes for LearnOutLoud.com, an online portal for educational and self-development audio and video material which can be found at http://www.learnoutloud.comFor the HTML version of this article complete with links to the titles that were mentioned, please visit http://www.learnoutloud.com/business01

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Asset and liability basics

2009-03-17T06:42:00.000-07:00

by: Mansi gupta

Knowledge of accounts can make life much easy. If you are to invest in a new business or joining your forefather’s business, planning to take some loan, looking for job in any marketing company, desire to be the manager of a multinational company or have the onus to manage your own assets and liabilities, knowing some basics of accounts becomes mandatory.

Broadly, accounting is bifurcated into two categories-

Cash Bases Accounting

Accrual Accounting

The Cash Based accounting pertains to the management of an individual’s personal monetary transactions. In this case, he keeps a track of the money he withdrew, deposited, gave or received from someone etc. This accounting comes to life when actual cash transactions take place.

The Accrual Accounting requires an accountant who notes the transactions even if no money has been actually exchanged. This method works on the principle of comparing or seeing the ratio of the expenses to expenditure. If the expenditure is more, you need to cut down your luxuries, if not then it’s always good to have some savings for future. This type of accounting tells you the amount that you owed; this might not match with the figure of your bank balance.

In the language of accounting there are several key terms that one needs to be familiar with. Some of the crucial ones are discussed below-

The Assets- the assets are generally those possessions of an individual that have a good market value or are quite valuable. Assets are mainly classified into three types-
Current Asset- the cash is the most basic asset of any individual. The money that is being held in accounts like the checking and savings accounts is also included in the cash. Also inclusive are the marketable securities in the form of bonds, stocks, shares etc. The money lent or payments due from clients, even form a part of it.

Fixed Asset- comprises of all the tangible valuable things like property, machines, equipments, land and the like that are not meant to be sold.

Intangible Asset- incorporates all the untouchable things like copyrights, patents, trademarks etc. that have tremendous monetary significance.

The law of opposites governs the nature; where there are assets, there will be liabilities. These are the debts that you have to pay back to your creditors. This can be done through giving cash or any other asset like jewelry, some other goods etc. Liabilities again are of two kinds-

1. The Current Liabilities- the liabilities that are to be paid back within a certain time limit and most often through your current assets. These include the accounts payable i.e. type of bill that you have to monthly, the Notes Payable-loans taken from banks meant to be repaid within 30 days and the Accrued Expenses- the compulsory expenses like taxes, wages, interests etc. where the bills are not received but the balances of each must be repaid.

2. Long Term Liabilities- those debts that can be repaid at ease for the tenure is more then a month.

The Financial Capital- is the economic capital. It is any liquid medium or merchandise that stands for wealth or other styles or capital. There are four ways to manage and display the financial capital. First, this capital is needed when a contract is made with any sort of capital asset. The financial instruments work in the form of currency in case of sale, purchase or trade of goods i.e. the medium exchanges. Second, it works as a settled medium or mode like gold for the
Standard of Deferred Payment. Third, The Unit of Account has a market value attached to it which in turn varies with the economy of the country. Fourth, The Source of Value is concerned with financial capital that needs to be saved and recovered. It is a collection of things like gold, real estate, collectibles etc.

Petty Cash is an important factor in business. It is the smallest account within a business setting or the cash in bills and coinage required to pay little expenses.

Types of Business- there are several kinds of business one should be aware of like

Sole proprietorship- where a single individual who starts the business owns it too.

Partnerships- the companies or businesses started by two or more persons where they conjointly own it.

Corporations- involve lot many shareholders or investors who are responsible in taking decisions for the company.

Limited Liability Companies- can be said to be sisters of corporations. Here the business members are not under a legal obligation to pay the debts if the business fails.

Payrolls- the term payroll designates the manner in which you will be paying the employees of your company and even yourself. Many multinational companies cater to payroll service provider companies that do the work quite efficiently.

These are some of the broad guidelines that will help you grasp the basics of accounting. It is essential to have some such wisdom for accounts as it is fruitful in all walks of life.

About the author:
Mansi gupta writes about asset and liability Learn more at http://www.assetsandliabilitiesbook.com

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A Slice Of Success: Ways On How To Succeed In Real Estate Business

2009-03-16T06:40:00.000-07:00

by: David Riewe

With a relatively increase of the everyday commodities, more and more people are finding ways how to earn additional sources of income so as to compensate their expenses. That's why most people who look for alternative ventures resort to real estate business.

However, even if real estate business appears to be lucrative to many, it still needs a lot of effort and skills to survive in the industry. So, for those who want to succeed in real estates business, here are some tips to ponder:

1. Set practical and sensible objectives.

Just like any venture, the key to a successful real estate business lies beneath a sound and sensible target. This will serve as the guiding principle of those who wish to make it to the top. Through these objectives, people who are involved in real estates business can focus more on areas that need concern like the market, clients, and strategies that will make their business profitable.

2. Choose the right real estate strategy.

The key to a successful real estate business is to come up with a certain strategy that will supplement the objectives stated on the entrepreneurs’ business plan. This strategy will also provide the right moves to take based on the kind of profit the real estate entrepreneur wants to achieve like an express cash or wealth establishment.

3. Entrepreneurs should acquire the characteristics of an ideal real estate agent.

In order to succeed, people involved in this kind of business should acquire the characteristics of an ideal real estate agent. He or she should be adept in finding the motivated seller, determine the value of properties, and knows how to negotiate with their clients.

4. It's a must to know the laws.

Part of being successful in real estate business is to know the existing laws of the state such as tax laws. Such that, if a real estate businessman does not know the laws, he or she may end up losing a lot money or worst end up in jail.

5. It is important to hire a reliable accountant.

This is extremely important to almost any type of business. This is, in reality, significant in order to succeed in real estate business because the transactions involves money, and one of the person who is skilled to analyze and interpret monetary information is a certified accountant. Through the help of an accountant, people behind the real estate business will be able to track the ebb and flow of the market.

About the author:
David Riewe is a Publisher and Online Marketer. Visit his Real Estate Blog Save $$$ Selling Your Own Home FREE eBook Shows You How!
http://www.push-button-online-income.com

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Are You Wealthy Yet?

2009-03-14T06:38:00.000-07:00

by: Al Walker
Here's a real simple way to become wealthy.

Marty and his wife live at home with their 2 children. They own
a 3 bedroom house in a middle class neighborhood and try to live
within their means. Marty works full time in the Printing
Industry, while his wife is in charge of the home and looking
after the children.

They've accumulated some credit card debt and have 2 years left
on a car loan. They try to stay out of debt as much as possible
and together they've managed to contribute a total of $32,000 to
their own Retirement Fund. It is kept in term deposits receiving
5% interest annually.

Two years prior, the couple bought an older house that they
fixed-up and rent out for $850 a month. After paying the
mortgage and taxes $300 is left over each month. This goes into
their savings account each month.

At Christmas, the family bought themselves a new computer and
decided to start a home-based business. Things started out
fairly slowly but after 8 months they were receiving a steady
check of $400 a month which also goes into their savings
account. This part-time business will continue to grow with the
effort they dedicate to it.

This business also offers them some very lucrative tax savings.
By taking advantage of these Tax Strategies they are able to
save an additional $300 a month on tax that was normally
deducted from Marty's paycheck at work. This monthly income is
also added to the couple's savings.

Marty has just begun writing an E-book about his "production
expertise" at work. His plan is to market this book on the
internet for profit

Every Sunday the couple takes a drive to stay familiar with the
Real Estate market in their area. They're looking for another
property, a "handyman's special" to fix-up and rent out. They
have saved enough for a down payment and their credit with the
bank is well established.

The family's total monthly expenses are $2000. Now, here's the
question:

Does Marty's family have Wealth yet?

To answer this question properly you first have to understand
exactly what "wealth" means.You achieve wealth when: *Your
Passive Income is the same or greater than your Expenses.* So
what does this mean?

First, what is Passive Income?

Passive Income is money that you are paid over and over again
for work that you only do once. (This excludes using a gun or
finding cash on the street) Some examples of this would be
royalties for writing a book or a song, commissions that you
receive for sales that others make and interest from bank
savings or dividends on stocks/options that you own.

Second, what Expenses are we talking about? This one's a little
easier to understand. Expenses are the total amount it takes to
run your household and your life. This includes, rent, mortgage
payments, car insurance, food, credit card and loan payments,
etc………

Let's look at Marty's family a little closer…………. Does Marty
have any Passive Income? Yes he does. Marty's salary is not
considered Passive Income. That's because he has to work 40
hours a week just to get the basic amount. If Marty doesn't go
to work then he doesn't get paid. His overtime also doesn't
count as Passive Income.

The interest from their Retirement Fund does though. It's paid
to him month after month as long as it's left in that account.
So, $32,000 at 5% is $1600 a year. Divided by 12 months equals
$133 a month in interest. Ok…..what else?

After the mortgage and expenses are paid with the rent money
they receive on their rental property they are left with $300
every month. This is Passive Income. Just as long as the tenant
stays and pays his monthly rent.

How bout that $400 from the home-based business and the Tax
savings. Is this Passive Income? Well, Marty's wife made sure
that she chose a company where she could sign new business
accounts and get paid commissions on those accounts over and
over again. They've made a 5 year commitment to build this
business part-time. So yes, both the $400 and the $300 in Tax
Savings would apply as Passive Income. Let's add up Marty's
total Passive Income.

Interest $166.00 Rental Income $300.00 Home Based
Business$400.00 Tax Savings $300.00 Total $1166.00

Not including Marty's salary from work, his family's Passive
Income is $1166.00. Not bad. Every month this amount flows into
the family's bank account, regardless of anything else they do.

We said that Marty's monthly expenses total $2000.00 a month.
And we also said………… You have Wealth when: *Your Passive Income
is the same or greater than your Expenses.*

$2000 Expenses subtract $1166 Passive Income = $834 monthly
balance needed to have Wealth.

Marty's Expenses are still more than their Passive Income so
they're not wealthy just yet. But they're well over half-way
there. With this kind of knowledge a family can know exactly
where to focus their financial attention.

Maybe when Marty writes that ebook he could get some sales and
royalties from it. Also the new Real Estate and more work on
their Home-based business would certainly help them to attain
more Passive Income. Once Marty's Passive Income is more than
the family's Expenses then Marty could start to have much more
freedom. He may even choose to quit his job and continue
developing his Passive Income streams.

Take a look at your own finances. What are your monthly
expenses? Do you have more Passive Income than your Expenses? If
you do Congratulations. You're Wealthy!!! If you don't. It's
time to get started and start adding Passive Income from other
areas as soon as possible.

When you truly understand this principle, you'll be well on your
way to becoming wealthy

About the author:
Al Walker, makes it easy to launch a successful online business and rapidly build your wealth to a six-figure income. Learn the 5 essential keys to online success. To receive your free 4-part mini-course visit: http://www.businessprogramreviews.com

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An Introduction to Motivational Speaking

2009-03-12T06:36:00.000-07:00

by: Ross Bainbridge
Everybody speaks. Some people speak and get elected president of the United States. Other people speak and armies of business people take to the streets, generating huge sums of money. Still others speak and people’s lives change. What makes for difference between those who speak and are received by a rapt audience, and those who merely fill the air with noise?

Speaking clearly and effectively is a science and that science is called motivational speaking. For some it is more art than science but unlike art, true motivational speaking can be learned, can be taught effectively, and must be practiced. To begin with, the thought of getting up in front of a live audience and speaking about anything at all frightens most people to death. They’d rather do almost anything else, be almost anywhere else than in front of a large audience of people, all of whom are listening to them intently. But for some rare individuals, the idea of speaking to large groups of people is exciting. They thrive on the attention. And if they take the time to learn the basics, and if they have something of value to say, there are brilliant, lucrative careers waiting for them as motivational speakers.

The best of the best become motivational keynote speakers. You may get an invitation to attend a seminar or lecture about specific topics. They are usually all centered on the very popular subject of making money but most are more specific in their targets. Some zero in on real estate, some on trusts and wills and estate planning, some are about accumulating wealth through savings strategies or investment plans, others on finding the hidden, illusive keys to success.

You may attend one of these and find yourself sitting through a half dozen or so less than brilliant speakers before one man takes the stage and the audience is suddenly alert and paying full attention. This man is the motivational keynote speaker and he’s the reason most of the people in the audience are there. He’s the one they came to hear. Why? Because his way of presenting his ideas and concepts to an audience is the most professional, the most concise and the most readily accepted of the speakers present that evening.

Because of the many business conventions that are held each year in Las Vegas, there are motivational speakers who work only there all year around. Las Vegas motivational speakers are highly regarded as some of the best in the business as only the best of industry personnel attend the conventions in the area. Some speak of very specific techniques geared towards specific industries. Others are more inspirational speakers, who speak broadly about leadership values and techniques to get teams of employees moving forward enthusiastically as a team. Whatever their particular niche, motivational speakers are well studied and rehearsed in the art of delivering their message effectively.

About the author:
Motivational Speakers Info provides detailed information about youth, professional, and Christian motivational speakers, as well as advice on how to become a motivational speaker. Motivational Speakers Info is affiliated with http://www.growthink.com/

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A Look at Weight Loss Infomercials

2009-03-11T04:35:00.000-07:00

by: Richard Romando
Only in America could billions of dollars be made selling weight loss products to people who need to shed a few extra pounds. In a world full of starving people, Americans seem to have emerged as a nation of overfed, under exercised fatties who can’t put down that bag of potato chips, stop eating that ice cream or refuse that second (or third?) helping of pasta. America’s weight problem – historically solved by eating less and exercising more – had now proliferated a dizzying array of products. Celebrities, nutritionists, doctors, herbologists, hucksters and former fatties have come up with thousands of products designed to melt fat, reduce cravings for bad foods, block carbs, sugar and fat, lose pounds while you sleep, and more..

Many products claim that, as long as you take one of the pills, you can eat what you want and actually lose weight. There are diet plans, calorie counters, diet food cooked and delivered to your doorstep daily, dance and walk your way to weight loss, the hula weight loss program, the Brazilian weight loss program, the fat burning, belly reducing, balanced woman, unbalanced woman. You name it and it’s on a weight loss infomercial. In fact, weight loss programs (separate from fitness programs and equipment, which may result in weight loss but are sold as ways to improve your appearance) account for more than 50% of all revenue generated in today’s infomercials.

One of the most successful weight loss infomercials ever produced featured a product called Bio Slim. Created by Doctor Josh Leightberg, Bio Slim was a science-driven, medically sound program consisting of several herbal pills which when combined with a diet plan also created by Dr. Leightberg resulted in a changed metabolism, an improved digestive system and a stronger anti-immune system, all of which ultimately led to a steady, healthy weight loss. Following the success of Bio Slim, a steady stream of niche players, knockoff artists and entrepreneurs took to the airways with their twist, their hook, their product designed to produce quicker, easier results. One of them was the well known and extremely successful Fen-Phen diet, which was a combination of two herbs known to doctors and other professionals in the industry as herbal speed. While still legal at the time, the pills killed the appetite completely, created a euphoric state in the user and led to many problems including heart attacks which led the FDA to ban the main substances from use in the USA.

Weight loss infomercials are so powerful and so successful that you have to be careful which products you choose to use. As with anything else in life, if it sounds too good to be true, it probably is. There really is no magic pill or substance that is going to let you sit on the couch and eat huge quantities of bad foods and make you lose weight without paying some kind of terrible price. I mention Bio Slim as an example of a stellar product designed by a professional doctor whose goal was to improve people’s lives and make money. You could call a number given out to anybody who ordered Bio Slim and speak directly with Dr. Leightberg if you had questions or concerns about his product. That should tell you something about the man and the product he’s putting his name on.

Another thing to look out for in weight loss infomercials are the add-ons. Popular diets like the Atkins diet which were not sold on infomercials, but became successful through book sales, interviews and word of mouth led to the creation of a whole host of products you didn’t need that were designed to help you stay on or perform better while on the Atkins plan. Low carb foods and low/no carb candy imitations, sometimes ten times more expensive than their higher carb counterparts, flooded the airwaves. Pills designed to reduce the difficulties associated with the Atkins diet surfaced in infomercials. These items are usually designed by less than professional individuals looking to cash in on a craze they had nothing to do with in the first place.

About the author:
Infomercials Info provides detailed information on exercise, weight loss, real estate, and make up infomercials and direct response (DRTV). Infomercials Info is affiliated with Business Plans by Growthink.

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Building Wealth: Don't Waste Your Money on Real Estate Investment Schemes

2009-03-09T03:33:00.000-07:00

by: Jeanette Joy Fisher
You've seen the real estate guru advertisements for books, DVDs, programs, seminars, and mentoring coaches promoting no-money-down deals. Perhaps you've watched the infomercial on TV with the people telling their stories of how they made millions investing in real estate with no-money-down and cash back to the buyers.

Maybe you, like me and many others, have purchased books or expensive systems based on these no-money-down and lease-option investing schemes. Here's the rest of the story.

Perhaps you've seen an ad in your local newspaper offering a home with 100% financing from the seller or a lease option. You should know that the investor offering these types of deals makes money by purchasing the property at a discount and selling the property for an inflated price.

Lease-option real estate investors play the odds. They bet that most people won't be in a position to purchase the lease-option home in a year. So the investor seeks a hopeful tenant to make higher than average rental payments, pay more move-in cash, and make the investor's mortgage payment. Those tenants who do eventually purchase the home paid much more for the home than the investor. Many tenants never come up with a new mortgage loan to purchase the property when the time runs out. Either way, the real estate investor makes money.

First-Time Home Buyers

If you need to buy your first home to live in, these home-purchase methods may help you if you have terrible credit and can clean it up in time to finalize the purchase in a year. Just understand that you're paying too much for the property and may not make any money on appreciation. On the other hand, if you have strong credit, you can purchase a bargain house with no money down legitimately.

Tips for Beginning Real Estate Investors

Don't buy overpriced property! Avoid 100% investor-financed "deals." You will have to wait too long to make any money. Plus, the rental income most likely won't come close to making the mortgage payment for you.

Don't waste your money buying real estate guru books, DVDs, programs, seminars and mentor-coach promoting no-money-down deals. Would you buy a book on how to make a fortune on the Internet that was written in 1995?

These out-of-date, no-money down schemes, tell you to look for home sellers in distress who will let you buy their home for no-money down with the seller financing the property for you. This system worked last century. Today's home sellers know that they can get a buyer who can get their own financing.

Plus, today's home sellers know that other sellers have lost money selling with no-money down. They've heard the stories where home sellers didn't get paid and had to foreclose on a property. They've heard the stories where the investor-buyer rented the house to tenants who trashed the property. They've heard the stories where the investor-buyer collected the rent and didn't pay the home seller.

To get started building wealth in real estate today:

1. Get your credit ready for mortgage financing. (Mortgage credit differs from consumer credit.)

2. Buy right. Don't overpay for deals that sound too good to be true. These schemes are too good to be true!

3. Guard your money. Don't get yourself in over your head with high mortgages on rental properties that cause you negative cash flow and jeopardize your financial well-being. The best way to do this is to make sure you get the best mortgage rates on a bargain-priced property.

You can buy investment property for little -- or even no-money down. Get started by buying your home or a second home. Real estate investing offers you the most tried and true way to build wealth when you avoid investing schemes.

Copyright © 2005 Jeanette J. Fisher. All rights reserved.

About the author:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhouse.com/

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Flipping Houses for Gold: How to Find the Perfect Fixer

2009-03-08T16:32:00.000-07:00

by: Jeanette Joy Fisher
Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.

If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.

HOW TO FIND THE PERFECT FIXER

1. Know Your Market

Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?

Examine the sales that sell quickly. What home features and financing options prompted the fast sale?

Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.

2. Know When "Ugly" Means "Gold"

When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.

Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real estate investors see them as gold mines.

3. Know When "Ugly" Means "No Thanks"

When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.

If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.

Turn Yucks into Bucks

Why would anyone want to do this hard work? How much does the average rehabber make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.

When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.

You can make a fortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.

Copyright © 2005 Jeanette J. Fisher. All rights reserved.

About the author:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance, and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhousefordollars.com/

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15 Construction Loan "Inside Secrets" To Building Your New Home.

2009-03-03T07:47:00.004-08:00

by: Rick Gomez

1. Which construction loans are available and which one should you apply for?

Home loan banking and the internet has changed the mortgage and construction loan industry forever. Today's construction loan choices include the 30 year fixed, 15 year fixed, 1 year ARM, 3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM and don’t forget the popular interest only loans.

The construction loan of the past was a short term 1 year loan that the customer would have to refinance into a new loan once the construction was completed.

This two time process cost the customer two sets of closing costs and you would have to re-qualify for the new loan once the home was completed.

The most popular construction loan today is the "One Time Close" but not all are created equal. Just like any product there are the best loans, good loans and downright bad loans.

With today's technology you now have the ability to obtain a construction loan from the best banks in the country and sign your loan documents at your local title company or escrow office. This benefit allows you to have the most competitive construction loan available.

The loan that you should apply for is simple; ask for the lowest rate, one time close for a specific period of time that you think you'll be living there.

2. Which lenders/banks have the best construction loans and what do you need to apply?

There are plenty of banks willing to lend money for mortgages, refinancing, home equity loans and every other type of loan. But if you're planning on building a new home, where do you get the best construction loan with the most competitive pricing?

More importantly what is a good construction loan?
A typical construction loan nowadays is a construction to permanent loan that may or may not allow you to lock-in today's low interest rates until the home is completed. If you choose a loan that does not allow you to lock in upfront, the interest rate may end up higher along with your monthly payment.

The most important thing when searching for a good construction loan is to find an experienced construction loan specialist that knows which banks are the best.

The best banks can offer you a low rate now, upfront, before you start building your new home.

3. Should you go directly to your local bank or to a loan broker for your loan?

Most banks offer loans, and going to them is like shopping at a Ford dealer. The only thing you can get at the Ford dealer is a Ford. But what if you want choices?

One way to get different choices is to go shopping to every bank in town. Or you can call an experienced construction loan broker who has done all of the homework for you and has direct access to hundreds of banks nationwide.

A broker is a representative for hundreds of banks. Although the broker serves as middle-man, his or her services will not cost you anything extra. That's because brokers get loans at wholesale rates, and pass them along to their clients at retail prices, just like any other business.

The difference between wholesale and retail is how brokers make money. Therefore, you get the same rate from a broker as if you went directly to the lender yourself.

In Fact, because or their volume, many brokers are able to offer their clients better deals than you can get by talking to the banks on you own.

With an experienced construction loan broker you can shop dozens of the most competitive banks nationwide, work with wholesale pricing and can negotiate on rates and pricing.

4. Should you lock in your construction loan before you start building or let the interest rate float?

If the rates are heading upward, lock. If the rates are stable, relax. If the rates are headed downward, float.

Right now interest rates are at an all time low and can only go up in the near future so make sure your construction loan is locked into today's best interest rates with the ability to float downward.

Inexperienced loan officers will offer their customers an enticing low adjustable rate during construction without an upfront lock-in and the customer may end up having to lock into higher interest rates when the home is completed.

Or the customer is sold on a higher rate during construction with a float down option after the home is built. Again, the rate could be much higher when the home is completed.
Meanwhile the loan officer has been paid and has moved on to the next loan. The only time you want this type of loan is if it’s the only loan you qualify for.

Most loan officers do not explain this to their customers until it's too late (Closing).

Always ask. Is the construction loan rate locked upfront or floating during the construction loan period? Then ask, is the rate during the construction loan the same rate when the loan converts into the mortgage period.

5. What experience does your construction loan officer have and does it matter?

When it comes to money its amazing how fast any loan officer becomes an instant expert at construction loans. You must keep in mind that all loan officers are salespeople. Yes, I know they have fancy titles like loan officer or vice president but the title is nothing but a fancy name for loan salesperson.

Loan salespeople usually have one main goal in mind when helping you with your loan request and that is the commission. By the way, the fancy name for commission in the loan business is called a loan fee, points or yield spread premium (YSP).

Now don't get me wrong, there are a lot of good honest sales people (loan officers) that work very hard at providing you the best service and rates. What’s important is distinguishing the good from the bad.

The following questions allow you to quickly find out if your loan officer is experienced at construction loans.

1. How long have you been doing construction loans? 5 years or more is best.

2. What is the loan to cost (LTC) required for construction loans? This is cash equity such as down payment on land. This can range from 5 to 20%.

3. What is better? The voucher or draw disbursement system and why? Draw is now the most popular because the customer has the control of the money.

If the loan officer (sales person) can answer these questions with no problem then they have passed a pretty good litmus test.

If you really want to throw a curve at them, ask the loan officer if they have ever built a home themselves and what type of construction loan did they get.

If you find a loan officer that has gone through the experience of building a home themselves then the odds are you have found an experienced loan officer.

6. Qualifying for your construction loan, exactly how is it done?

The first thing your loan officer wants to see is your completed loan application. The loan application called the (1003) will tell a story of your financial picture.

The completed loan application will tell the loan officer many things including,
1. What type of loan you want.
2. How much money you need.
3. Your social security number.
4. Your current employers.
5. A list of all you assets (money) and liabilities (bills).
6. How much money you make.
7. How much real estate you own.

Once the loan officer has your loan application in hand they can determine whether you can qualify for a loan.
One of the first items pulled is your credit report. The credit report is going to tell 3 main important things.

1. Show your current credit score. The credit score can range from 500 to 800.
2. Show a complete list of all your monthly liabilities (bills).
3. Show all past credit problems including bankruptcies, foreclosures and late payments.

With this information the loan officer will do an analysis to determine if you can qualify for the loan amount that you’re looking for.

This analysis determines a ratio called the (income to debt ratio) and depending on the banks underwriting guidelines this ratio will usually range from 36% to 45%.

The income to debt ratio is the percentage of monthly debt payments (including your new mortgage payment, taxes and insurance). This ratio should not exceed 36% to 45% of your monthly income.

Some banks will allow you to exceed this ratio if you have an excellent credit history and excellent credit score.
The current and the most popular method of qualifying for a loan today is the stated income loan.

Stated income allows you to qualify without verifying your income on your tax returns, W 2's or pay stubs. The only thing the bank verifies when applying for a stated income loan is your credit score, liquid assets and that you're employed.

7. How not to be taken by the oldest trick in the book "Bait and Switch"?

The mortgage lending business is notorious for baiting and switching.

Baiting and Switching is when a loan officer or advertisement offers you one thing and then tries to sells you something else.
Typical signs of baiting and switching are obvious, some basic examples are:

1. Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished.
2. You are offered a construction loan with no points and no loan fee's. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan.
3. You are told that you will not have any payments while you're building. What you're not told is that all construction loans have this option and it's called "interest reserves" and the payments are added to the loan amount.
Remember three important facts and you will always be in good shape.

1. If it sounds too good to be true there's usually a reason.
2. Always get your quote in writing, (ask for a good faith estimate).
3. If you are satisfied with the rate and construction loan program that you are quoted, ask to lock it in upfront.
On the flipside, it is very important to realize that most loan products typically go hand in hand with banking guidelines. These guidelines are provided to loan officers to coincide with the customer's qualifications.

For example, if you have a very high (FICO) credit score with land free and clear, you have more loan options than the person with a very low (FICO) score and no land equity.

8. Now for the biggest secret of all, ready? All banks have access to the same rates and the only reason everyone ends up with a different rate is directly related to how much your loan officer and bank is going to profit from you.
You should probably read that one again.

Your loan officer gets paid like all sales people either by:
1. Salary plus commission
2. Commission only.
It doesn't matter if you walk directly into a bank or work with a broker, basically everyone gets paid the same.
If you walk directly into a bank the loan officer most likely gets a basic salary and a percentage of the loan origination fee (points and yield spread premiums). If you work with a broker the broker usually works on a straight commission (points and yield spread premiums).

Becoming a broker allows the loan officer the ability to offer their customers the best loans with the most options.
It always amazes me when I see TV commercials or hear radio commercials advertising $395, zero closing costs. I always wonder if people understand how they can do that.
Ok, here is how it is done.

The inside secret is that in exchange for these low or zero closing costs the lenders will make their profits and cover the costs of the loan by charging you a higher interest rate.
This higher interest rate pays what they call in our industry a (YSP) yield spread premium.

By charging you a higher interest rate over the life of the loan the bank can easily afford the commercials, commissions, payroll, and cover the costs of the loan while still making a profit. Also the service is usually very poor and impersonal.

So the next time you see advertising with no closing costs you will know exactly how they are doing it.

So please remember that there is no such thing as a free lunch in any business. Business wouldn't be business if there were no profits. The most important thing is that you want the best loan available at a fair price with an experienced loan officer.

9. What are interest reserves and contingency funds doing in your closing costs?

The two things most customers do not factor into the cost of the building their new home are interest reserves and contingency funds.

Interest reserves are added to your loan amount to make the monthly payment on your loan. Yes, you read that correctly, you will not have to make a monthly construction loan payment while your home is being built.

The payments are made from this interest reserve account and no, it’s not free. This reserve is added to your construction loan amount.

Interest reserves were designed for the benefit of the customer. Most people building a new home are either paying rent or have an existing mortgage payment while their home is being built.

The last thing a customer needs is another monthly payment while building. So, banks created the interest reserve account by adding up the estimated interest payments over a 12 month period and add this to the loan amount.

If you do not want interest reserves added to your construction loan amount you can ask to make your own monthly construction loan payment.

Contingency funds are added to the loan amount just in case you need more money to build your new home.

With all good intentions construction loans tend to have cost over runs. The bank adds 5% to 10% of the cost breakdown and adds this amount to the loan amount just in case you have cost over runs or need better appliances.

If you don’t need or use this extra contingency fund then it will not be added to your mortgage upon completion of your new home.

So when you apply for a construction loan ask your loan officer to provide you a copy of the estimated construction loan budget.

The budget is created from your costs and includes every cost within the loan including land balances, closing costs, interest reserves, contingency and bank fees.

10. What is loan to value (LTV) and loan to cost (LTC)? Why it’s probably the most important factor in getting approved for a construction loan besides your income and credit.

Initially most banks are concerned with loan to appraised value (LTV) but banks are really more concerned with how much cash you have in the project (LTC).

If you were buying a home instead of building you would normally have to put 20% of the purchase price as a down payment.

Since you’re building a home your cash equity usually comes in the form of how much cash you put down on your land.
Cash equity is king when applying for a construction loan.

For example, if you bought a $200,000 piece of land and the land is owned free and clear you have a lot of cash equity.
With this much cash equity you will most likely not have to bring in any additional cash.

Or if you bought a piece of land over 12 months ago for $100,000 and its now worth $200,000 the bank will use the current value because you bought it over 12 months ago.
In both cases you have brought $200,000 cash equity to the table.

Now if you just bought a piece of land for $200,000 and you only put down $20,000 most banks will want to see 10% to 20% cash into the total project.

Other qualifying cash equity that can be counted are any pre-paid’s such as plans, grading, permits etc. These pre-paid's can be used for cash equity or you can be reimbursed from the construction loan at closing.

11. Should you hire a builder or be an owner builder?

Do you really want to be an owner-builder? The goal of being an owner builder is mainly to save money. Some people can save quite a bit of money if done correctly.
Some people are not meant to be owner builder.

Possible problems when acting as owner builder are:
1. Construction cost over runs.
2. The best banks with the best rates require a builder or supervisor.
3. Managing contractors to finish on time or to show up for work.
4. Depleting your personal savings.
5. The need to borrow more money.
6. Loan extension penalties.
7. Being taken by unscrupulous contractors.
8. The need to refinance your construction loan.
9. Foreclosure.

I could go on and on about the horror stories I hear from Owner Builders that did not get a construction loan and acted as their owner builder.

If you have never built a home before and absolutely need to act as owner builder please take my advice and hire a reputable builder to supervise you and the building of your new home, for a much smaller fee than their normal fee.

The builder/supervisor will help you with the cost breakdown and manage the subcontracting on an as needed basis. If one of your contractors gets out of hand or you need help of any kind, you can call the supervisor for assistance.

Your job is to make sure you are hiring the right people to complete your home. It can make the difference between happiness and misery.

For those of you that have experience at building homes but do not have a license ask about our owner builder program. To qualify you will need a resume showing your experience.

If you decide on hiring a builder to do everything make sure you hire a reputable builder or supervisor with a good reputation and plenty of references.

Ask your friends if they know a good builder and when you start to hear the same name over and over you know you've found a good one. Ask the building inspector for a list of reputable builders.

The most important point is shop around until you find a builder with the most reputable and honest background.
If you pay a little more for an honest and reputable builder or supervisor you will be very thankful before, during and after your home is completed

12. How does your builder determine how much your home will cost to build?

The Estimated Cost Breakdown of your home is probably one of the most important forms in the construction loan package. This is the breakdown of each particular cost of construction of the home. The foundation, lumber, framing, plumbing, heating, electrical, painting, and builder's profit, etc.

The builder usually completes this form to show you exactly what it will cost to build your new home. The most important thing to remember here is that you do not want to underbid any line item and you do not want to overbid any line item. You want accurate numbers from real bids (not guesses) and a 5% contingency for cost overruns.

Good builders will send out the house plans to their contractors for specific bidding on each main item or can estimate the home themselves. The builder will send one set of plans to the foundation contractor, one set of plans to the framer, one set of plans to the plumber, etc, etc.

When all the numbers come in, the builder will fill out the cost breakdown and come up with a total cost to build your new home.

Bad builders will use the WAG method of estimating the cost of building your new home. The WAG method stands for "Wild Ass Guesses". This method is the most dangerous since it can lead to under and over bidding.

The last method of bidding is simply to over inflate every single line item on the cost breakdown. This is the most profitable method for the builder and the most expensive to the customer.

This is why you want to find an honest, reputable builder with a good reputation in your community. Once the cost breakdown is completed and you plan on hiring this builder to build you new home you will need to type up a contract. The contract needs to equal the added total of the cost breakdown.

Most builders will provide the contract but make sure you read it carefully and that you add your requirements as well. There are two types of contracts

1. Fixed Contract: This contract is simple and straightforward. Take the total of the cost breakdown and put that fixed number into the contract. The builder will provide a list of responsibilities.
2. Cost plus Contract. This type of contract is usually for large construction loan projects.
A. The customer wants to make a lot of changes to their home as its being built.
B. The construction loan period to build the home is 18 months so construction costs can change drastically. The builder prefers this contract to protect the costs and profits.

13. How does your builder get paid while your home is being built?

There are two methods that banks use to make sure your builder gets paid while building your home.

The Voucher Reimbursement system has been around for quite a while. As usual you'll have some builders that are very familiar with this method of payment and do not like change.
Most builders are really only concerned with how fast they can be paid and how often they can be paid.

Most banks find that the voucher system is simply too much paperwork to deal with anymore. The builder is given a big book of vouchers that looks like a check book and when they want to get paid or need to pay a contractor they need to fill out a voucher form. This voucher form is a request for payment and as long as the contractor has signed the lien release the bank will pay the amount requested.

The bank will also request an inspection throughout the construction loan to make sure that the work is completed.
The Draw Reimbursement system is becoming the standard for construction loan funding for most banks.

The main difference is that the bank puts the accounting responsibility on you or your contractor. The bank uses your cost breakdown as the guide for the draws. Some banks use specific schedules of 4 to 7 draws based on completed construction milestones, such as foundation or framing.

The draw systems also allow the choice of taking draws on a monthly basis, collecting partial payment for work and material items that have been completed.

I personally prefer the draw reimbursement system because:
1. It requires less work.
2. Provides more control for both the customer and the builder.
3. The funds are wired directly into your bank account.
3. It's easier to use than the voucher system.
4. Some banks now have online draw requests.

14. What type of construction loan insurance is required and who is required to get it?

The reality of construction loan insurance. There are three types of insurance needed to build. All banks require the first two insurances, course of construction and general liability. Workman's compensation is only required if your builder has employees.

1. Course of Construction Insurance. This policy is an all risk policy to include, fire, extended coverage, builder's risk, replacement cost, vandalism and malicious mischief insurance coverage.
2. General Liability Insurance. You or your builder can provide this policy. This policy is a comprehensive general policy or a broad form liability endorsement. The minimum amount of $300,000 for each occurrence is required. If the builder provides the insurance a general policy of $1,000,000 or a broad form liability endorsement is required.
3. Workman's Compensation Insurance. If your builder owns his own company and has employees that are helping to build your home, workman's compensation is required.

If the builder simply subcontracts out the work and does not have employees per se, they will need to write a letter acknowledging that they do not have employees and are not required to have WCI.

15. Has your loan officer structured your construction loan properly and why it's so important?

I get loans all the time from customers that went to another lender or broker and were either turned down or were offered a below average construction loan.

The reason was because the loan was not structured properly before it was sent into the bank. Structuring a loan properly is simply making sure that you match the customer’s loan request to the banks underwriting guidelines.

Recently I received a construction loan request from a customer that was turned down by a large national bank. The loan officer had calculated the income incorrectly and submitted the loan as full documentation.

The customer owned his own business and had a lot of tax deductions on his tax returns. The way banks qualify customers as full documentation is very conservative and the loan was turned down.

We took the loan, found the problems upfront and submitted the loan as stated income.

The customer was approved and built a beautiful home in Rancho Santa Fe CA.

Structuring construction loans for approval is vitally important and is the last thing on most customers’ minds. Each and every time I receive a loan from a customer with a bad loan experience it is always because the loan officer did not specialize in construction loans and did not structure the loan accordingly.

Other common mis-structured loan scenarios include:
1. Low cash equity.
2. Improperly completed appraisal.
3. Unexplained credit derogatory.
4. Income incorrectly calculated.
5. Mismatch of customer loan request to the correct lender.
6. Plain and simple incompetence
The old saying “you get what you pay for” is especially true when obtaining financing in building your new home.

About the author:
Rick Gomez specializes in construction loans in the state of California. You can download a complete construction loan application package and a list of the best banks at

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How Millionaires Get to Be Millionaires

2009-03-03T07:47:00.003-08:00

by: Daegan Smith

Money is not just a necessity nowadays; it has become a supplement for sustaining wealth and luxury. Anybody of practical reason who’s being asked will have to say that riches should provide for the next generations. Having this thought in mind, everyone are craving for millions even teenagers earn and work out to look forward the future having a house with a large open space, elegant façade and wheels in the garage. Yet there are only few steps, hints of answers revealed by these millionaires global wide.

Before you can manage a large amount of money learn to handle the coins in your hand. Lisa Van Duesen, a Vietnamese now a mini mogul at US was once sunk in debt and penniless. She sold her house and mortgages an amount of $ 200,000, paid her debt and move to settle in the green pasture of US. They sacrifice from eating lavish foods and satiated in rice and soy sauce as their everyday meal. She worked hard as a real estate broker after college and invested her money to real estate properties that soon earned her 40% equity. Learning fro her work, she buys and sells using the bank's money wisely placing them according to her needs. She purchase whatever that has value and can be sold with interest and plan it financially. She recovered from having sky-high debts to rising assets using only what she has into a profitable cause.

Follow your parent’s advice, earn a degree.

Education is a key factor in understanding how money talks and that are by having one potential, being knowledgeable. Invest in your mind. Acquiring a degree is gearing yourself with skill that can be used and valuable in the market. Arturo Gonzalez, son of the Mexican railroad worker dreamt of making it on top. He has promised himself of two possibilities in his life, Harvard or Bust. Later on he was accepted and pulled himself with ambition to Harvard Law School. He then land a job in San Francisco based law firm and has an income about $ 740,000 in 2003, according to the American Lawyer Magazine. This undeniable manifest how education could earn you a living.

Positive attitude towards life spiced with perseverance.

Behavior towards work and the optimism that boost up your moral after you tried hart. Starting a small business is already hard enough, to most of people especially when the resources is scarce and debts is high, study shows 20% are struggling small enterprise, according to SBA ( Small Business Administration office of Advocacy).

Rossie Herman, 42 and a resident of Tomball, Texas had experience a lot of struggle just to get her she is now. She took all the risk even placing her in $ 75,000 debt going form one credit card to another which normally happens to about 46% of small business as of 1998, SBA says. She is a manicurist who has two daughters to raise and convicted herself to get out from debt. Often people slam their door in her face during her marketing strategy of house to house delivery." It was frustrating and tough", she admitted. Yet willingness to succeed paid off. The key there is not by quitting but pursuing.

Invest and Save.

The problem of the most entrepreneurs are recognizing only on what goes in the pocket but not knowing what goes out. Spend only what is not more than your budget and compromise from it. Save, save and play out to invest it when the economy is not shaky. One of Oprah’s best advices during her talk show is that a good financial planner must always sign their own checks. This is to monitor what is left and what needs to be saved or else you’ll end up bankrupt without even knowing it.

Time is always essential.

Multi tasking is the best way of achieving your goals in a short time, this means use your potential in dividing the task to others while focusing on what needs to be done. Most of us try to do a lot of things in a short amount of time and end up finishing nothing at all. Always get your priorities straight and focused baring in mind that investing on it will profit you in the end.

About the author:
Daegan Smith is the leader of the fastest growing team of successful home business enterpernuers on the net. Find out how we're creating financial freedom all across the globe and how to get in on the action FREE =>http://www.comlev.com Team Blog:

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7 Reasons You Should Be Using The World Wide Web To Leverage Your Local Business

2009-03-03T07:47:00.001-08:00

by: Anita van Wyk

More and more, potential customers are not letting their "fingers do the walking." To find what they need, they are using
their fingers to click at Google, Yahoo! or MSN .

If you do not have a website – you are loosing them before you even have a change to tell them about your product or service. Think of a Web site as multiple, full-page Yellow Page ads that gets 100 times more results for your local business.

Cover every business category and geographic region for a fraction of the cost of a single Yellow Pages ad.

A Web site that works is the most cost-and-time efficient way to:

1. Build loyal lifetime customers
2. Grow Your Client Base
3. Build Trust With Potential Customers
4. Get the Jump on Competitors
5. Develop and Stay "Top of Mind"
6. Extend Your Reach - Attract new local (and global!) customers
7. Diversify: Open up new revenue streams.

But where do you start?
Well, you need to register a domain name, host your new site, build the site pages, submit your site to the directories and
them promote it. You’ll need other people to link to your site and you’d want to send your customers emails.

Perhaps most important of all you’d need to know how many people are visiting your site and how many of those are buying
from you.

It might seem like a lot at first glance and it can be, but not if you choose a company that gives you all the tools, in one place, with a straightforward, integrated, step-by-step process to support you every step of the way. Site Build It! (SBI!) is the only product in the world that combines site-building,
site-hosting, and site-marketing and that makes it easy for you to build a professional, popular, and profitable business. You don’t need any technical experience (html, ftp, etc.) either, they handle all that for you.

Sites built using SBI! consistently get high traffic, as a recent Alexa.com survey shows.
- 62% of SBI! sites fall within the top 3% most popular sites on the Internet
- 53% fall within the 2% most popular
- 35% fall within the 1% most popular.

If you can use e-mail and surf the Web, you can create a professional-looking, traffic-generating, sales-producing site.
Real estate agent, landscaper, restaurant owner, health practitioner, artist, alarm system distributor, boutique owner...whoever you are and whatever you do... Site Build It! (SBI!) is the affordable, all-tools-in-one-place solution you need to build and host a
Web site that WORKS.

There is no better time than now to get your business on the World Wide Web... before you competition does.

This article may be freely reprinted as long as all links and author information remain.

About the author:
** To learn more about SBI visit – today.

** To download your 28 page booklet, telling you more about SBI and how they help Small Business to get on the Internet – please send a blank email to sbibooklet@getresponse.com

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Make Money Fast With No Investment-how Andrew Made $100,000 In 6 Months

2009-03-03T07:46:00.001-08:00

by: Martin Thomas

Andrew Newberry is a distant family friend that knew about my business acumen. He knew how I had been in his position only 24 months previously and had heard about the new life I was leading with the wealth I had generated. I could hear the earnest desperation in his voice, when he asked me "how'd you do it Jack"? His question was open and sincere. In my eye's he was at a point where there was only one direction for his life to go...up.

Andrew needed to make money fast. His family were in danger of losing the roof over their heads and although Andrew worked a fulltime job, there were difficulties that created this current crisis.

He couldn't understand how I had done so much considering my humble beginings, while he had worked at his current job for over 10 years and was saddled with the difficulties he was currently experiencing. He told me he had no money to invest or anything like that, but could I advise him on what if anything was possible.

This was my response to him.

You see, what he was asking me specifically was, "how do I make money with little or no investment" My mind ignored his emotional pain and focused on the reality. That is the reality of what he needed answering.

Talking about Real Estate investment or anything that needed a capital injection was futile for Andrew, he needed to hear something different. This is what I told him to do, step by step. I told him that if he followed these two steps, he would have $100,000 within 12 months. He did it in 6!

Step one, get a little money. Not much needed, a few hundred dollars would do, but he has to find something as a seed capital account. I gave him the URL of a broker that does paid surveys online. These brokers represent companies that pay ordinary people for their opinions. They typically pay between $50-$300 per hour. He got his wife busy doing these through the day and evenings, they had $1000 within 2 weeks.

Step two, Go Shopping I explained to Andrew the mechanism behind my success. Compounding, intrinsic value, leverage, rapid capital gains, pyramiding profits. I then asked him to compound that thousand dollars by 30% 19 times. In other words, I told him to find 19 investment-objects that were for sale that he could buy, that had at least 30% or more spare intrinsic value.

Intrinsic value is everywhere. Whether you are buying New York sky scrapers of marble pool tables or Bertram boats, every market has a percentage of sellers offering their goods at well below market value.

Andrew started with old cars because he was a mechanic and now he had a game plan he was going to compound his money with his existing skill set. He traded up and up until he had $12,000 in six weeks.

Get your calculator out and see how he did it, how he evolved his money without a hitch. Start with 1000 then multiply by "1.3" which is the same as 30% Don't press equals, just hit "1.3" and multiply symbol again. Do that 19 times.

When Andrew sold his last auto deal, he was ready to get involved in Real Estate. With $12,000 it wasn't much but it was enough to start applying the same principles with Real Estate. This is where his compounding really escalated.

It escalated, because now he was using leverage....borrowed money. He called me on the day he was ready to start compounding with Real Estate with another problem. As I advised him "get into Real Estate Andrew as quickly as you can, around the $10,000 mark its time to get into that game"

He had a problem. The houses in his area were dear, he couldnt see how having $12,000 was enough to get involved.

I advised him that he should forget about houses until he had at least $40,000 He should focus on raw land. Raw blocks are cheap, and easily re-zoned into a higher purpose. With just a small investment at the local town planning department he could re-zone a residential into a commercial or the other way around where appropriate. Its called a "soft" or "paper" rennovation. No painting, no work, just a few simple forms and a fee to pay.

Creating a new use is just one way to add value to raw land, there are many others. Andrew researched and discovered them all. He stuck with land after all was said and done. He discovered buying a large block and subdividing it was very profitable. The second deal he did, he bought a block of over an acre, surrounded by established homes for $300,000 (with a bank loan) It was a corner block and he split it into three handsome sized blocks, tailored to the upper market. The first two blocks paid out his loan and put profits in his pocket, the last block he used as collateral for another bank loan where he built his own beautiful mansion on.

He sold it for a final profit of $354,000

That was about 8 months after our little chat on that cold evening.

To your health and rapid success.

About the author:
Jack Reynolds enjoys offering valuable insights about wealth creation. If you want to discover how to build your own money machine and you dont have much money to start with then follow this link

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Mona Lisa Your Branding

2009-03-03T07:44:00.002-08:00

by: Sean D'Souza

Have you mistakenly trained your branding to fall over and play dead? Do you know how to use psychology to create branding that lights up with the voltage of a thousand neon bulbs? And can you play Scrooge with your budget, yet get huge branding mileage? And if so, how? Read on and find out how you can be a Leonardo Da Vinci with your brand!

It’s Raining 3000+ Messages a Day!
I have a friend. Let’s call him Eugene. Partly because that’s his real name. Eugene positions himself as a pitch manager. Very effectively, he shows CEOs and executives (who make pitches for new and existing business) how they can use simple steps to get a powerful presentation across.

Eugene had a problem that all of us do. His brand (or his company’s brand) was just one of three thousand new messages that bamboozle us every day through various media. To get his name welded in his customer’s brain was like being on a rocking chair. You feel the movement, but you go nowhere. Eugene’s brand was going places, but it was a slow tedious process.

He needed to get some prime real estate in his customer’s brain really quickly and without the benefit of Daddy Warbucks’ deep pockets. All he had to do was get their attention…

13 Boxes. Does That Get Your Attention?
Doesn’t your brain go nuts wanting to ask what is the significance of 13 boxes? That’s the new brand name of Eugene’s company. Can you see that immediately catching your attention? The brain is dying to know the significance of this strange sounding set of words. And it won’t let go till it gets an answer!

In this case the answer is simple. Eugene has a system of 13 boxes in his training process that takes you from the start of your presentation to the final crescendo. The 13 boxes form the structure and the route you must follow to get results.

His company brand could be something like XYZ Training or have his own name (like accountants and law firms do) but why on earth would that excite his customer’s brain?

Another Branding Example called KeyGhost...
Here’s another example of vivid psychological branding called KeyGhost. KeyGhost is a powerful but simplistic device that monitors every keystroke on your keyboard. This spy-like product evades the scrutiny of the unobservant eye. A name like KeyGhost immediately ruffles the brain forcing it to stop what it’s doing. Then it drives all its attention in the direction of this unusual sounding product.

This is exactly what you need. Once you’ve got a spotlight-hogging brand name, you start to own a tiny part of your customer’s brain that is yours to keep forever.

Forever Starts With a Trigger…
A trigger called Curiosity! Curiosity sounds a deafening red alert in every neuron of the brain. The brain is at its curious best when faced with something that seems irregular or uncommon in some way.

If your brand name doesn’t create a curiosity factor, you’re wasting gobs of money to just trying to cut through the communication clutter. The sooner you get psychological exclamation marks into your brand name, the sooner you get the attention you crave for.

But What If You Have a Boring Company Name That You’re Stuck With?
Hey it happens! You inherited the brand name and there’s not much you can do with it without the shareholders going for your jugular. Well don’t fret. First you’ve got to realise that branding is not restricted to just your company name. A process/product that your company has or follows could become bigger than the company itself.

Look For The Power Of Your Processes…
With Eugene, his process was sitting under his nose all along. In the case of 13 Boxes, it’s quite easy to draw up a dramatic scenario of how 13 boxes can get you out of your ‘box’ and give you immense confidence in your presentation skills. In his case, though, the process actually defined the company.

With KeyGhost, it’s a cinch to describe how the hardware works just like a ghost and yet link it back to your keyboard and computer.

You can be an accounting firm with a company name like “Boring, Dead and Co.” and still brand your prize-winning process and call it ‘Goodbye Extra Tax’ or ‘Corporate Loopholes.’

Do you think your clients will see you in a better light? You bet they will! So get going, get out and get working on your brand naming canvas right away!

Nonsensical Names Work Too…
One Red Dog, The Loaded Hog and other such names flout the basic principles of process and logic. Yet they seem to work powerful imagery on the brand name. It’s the story that goes with it that creates a sense of immortality and distinctiveness around the brand.

Even if you choose to have a name that means very little and can drum up a story to match it, you’ve got yourself a winner. Which place would you rather frequent? 'One Red Dog' or 'Joe’s Café?' With a vivid name you’ve got the opportunity to weave a story -- even a story that you made up all by yourself!

Shazaam! It’s Branding With Drama!
Don’t just Mona Lisa your brand. Put some Shakespeare in it as well. Push the limits of your brand name and make it an action tool. For example, 13 boxes could be presented as 13 different boxes placed on a CEO’s desk. Can you visualise the curiosity factor? What if the boxes were different shapes and different colours? Can you see the website name? The t-shirt design? The ad on TV? Can you see how extendable a picturesque brand name can be?

Go ahead; make the effort to Mona Lisa your brand name.

You’ll make Leonardo really proud of you!

About the author:
Wouldn't you love to stumble upon a secret library of small business ideas? Find simple, yet electrifying ideas on marketing strategy,psychological tactics and branding. Judge for yourself when you read these small business ideas

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Investing the Profits from Your Home Based Business

2009-03-03T07:44:00.001-08:00

by: Rhiannon Williamson

Having made the bold and glorious decision to sack the boss and go it alone you are one of the few who have what it takes to succeed. You have an entrepreneurial spirit and a strong will and these are rare and valuable attributes that will guide you throughout your professional and personal life.

Now that your business is up and running and you’re profiting from your efforts, it’s time to turn your attentions to investing the profits from your home based business wisely and for maximum gain.

One of the most consistently returning asset classes over the long term and the one that the majority of us can profit from is real estate.

Understanding market cycles

Now, you’re most likely aware that property markets are cyclical – this is because there is a direct correlation between the underlying price of real estate in relation to individual buying power. Simply explained: when property prices rise above what first time buyers can afford to pay the market slows down, stagnates and sometimes readjusts – but as soon as purchasing power increases again, either with a drop in interest rates or an increase in GDP, so property prices begin rising again.

And there are even ways to make money from real estate during a market downturn!

Investing in real estate for income

Depending on the nature of your home based business your monthly income may be slightly erratic – some months being better than others! If you invest in property assets in a buy-to-let or even jet-to-let capacity you can secure yourself a consistent monthly income which may afford you an added degree of financial security.

Buy-to-let is when you purchase property for rental purposes – this make be an apartment you corporate let, it could be a house you student let or even a family home you rent out long term.

Jet-to-let is similar but it involves purchasing overseas property for short term weekly or fortnightly rental to tourists. This type of letting is usually very lucrative indeed during peak holiday periods but may mean you have a property that is empty for a few months out of season.

Both types of property investment return you a regular income and at the same time the physical real estate asset will grow in value over the long term and if ever you wish to release the profits from your investment you can sell on the property and take the gains you have accrued.

Investing in real estate for profit

The alternative to building up a property portfolio for income generation purposes is purchasing property and selling it on relatively quickly to realize the gains the asset has accrued.

You can do this in a number of ways…firstly you can purchase run down property in need of renovation, tidy up the property and turn it into a home before selling it on at a higher price and reaping the profits gained.

Alternatively you could seek to beat the curve by buying into up and coming areas, waiting for prices to boom and then selling on for profit. This is quite a risky strategy for a first time investor as timing the market is hard!

An alternative to this is looking overseas for the latest emerging property markets worldwide and buying properties to renovate or properties off plan and then flipping them on for maximum gains in the short term.

Financing your investment

As a self-employed individual it can be tricky to get a mortgage unless you have audited accounts, bank references etc., etc. If you don’t have all of these requisite documents there are other options available to you.

The main options are re-mortgaging your primary residence and releasing the equity that you have accrued already for reinvestment in another property project or taking out a self-certification mortgage where you make a large down payment and basically tell the lender how much you can afford to borrow!

A winning attitude

You’ve already proved you have what it takes to succeed against the odds by establishing a profitable home based business, now apply the same steely determination to your real estate investments and you will succeed in making the maximum gains. Start small, begin gently, test the market and your understanding of it and slowly build up a profitable real estate portfolio from the profits of your home based business for maximum financial gain.

Good luck in achieving your goals.

About the author:
Rhiannon Williamson is a freelance writer whose articles about property investing and emerging real estate markets have appeared in publications around the world. She is currently working on a brand new property investment resource http://www.amberlamb.com/

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Home in Bulgaria – A look at Bulgaria’s Real Estate Tax Liability

2009-03-03T07:43:00.000-08:00

by: surrinder Ahitan

Many people who are considering the possibility of buying one or another home in Bulgaria worry about what they might end up paying in taxes on real estate that
they might end up owing. In years gone by, one of the reasons that only a fraction of the population was able to take advantage houses in Bulgaria centered on the high taxes that often times were associated with home ownership
in that country.

With the changes in government that have occurred in Bulgaria since the 1990s, significant land reform programs have been put in place throughout the country. The pace of these reforms quickened when it was determined that Bulgaria would be admitted into the European Union in 2007. The net result has been that property taxes no longer need be considered an impediment to the ownership of homes in Bulgaria.

In point of fact, at the present time, Bulgaria boosts one of the lowest real estate tax schemes of any of the countries in Europe -- including those nations that already enjoy full membership status in the EU. It is important to keep in mind that prior laws that imposed a heavy tax burden on foreign nationals who purchased homes in Bulgaria have been eliminated in their entirety.

In addition to low real estate taxes, the government in Bulgaria has enacted other pieces of legislation that are designed to encourage private home ownership amongst the people of Bulgaria, further spurring the demand for houses for sale in Bulgaria. The government of Bulgaria is committed to furthering and
advancing real estate investment generally and home ownership specifically throughout the country.

To that end, the government has lessened the tax burden on those who own real estate and has modernized the banking system to make real estate loans far more
widely available to people interested in property ownership in the country, including the buying and owning homes in Bulgaria.

About the author:
Surrinder Ahitan's website Bulgarian-Property-Advice.com provides detailed information and advice on the most lucrative areas to invest in Bulgaria. You will learn how to get around, get a flavor of the language, history, culture and more.

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Home Based Franchising

2009-03-03T07:41:00.000-08:00

by: Shawn Price

Copyright 2005 Shawn Price

Is Home Based Franchising for you?

Do you desire Home Business Ownership but cringe at the thought of starting from scratch?

Possibly a Home based Franchise is your answer.

A Franchise is a business in which "... the franchisor, the owner and developer of the franchise system licenses [you] franchisees to use trademarks, service marks, logos, or advertising owned or developed by the franchisor." (International Franchising Association, Franchising basics).

With some franchise programs, the business operates using the Franchisor's brand name only.

Other programs are less restrictive and allow for the usage of both a trade name in addition to the franchisor's brand name.

Common to all franchise programs, the franchisee[ you] is responsible to pay the franchisor, advertising fees, initial fees, service fees, and or royalty fees.

You are responsible for payment whether your business is profitable or not.

Additionally, many franchisor's provide educational programs to franchisees before the inception of the business.

Often times, they've done demographic studies and other studies to ensure that you have greater odds of returning a profit.

Major Franchise Types

• Unit Franchising

Is the most simple type of franchise in which the Franchisor grants the franchisee the right to operate a single operation at a specified location or within a particular territory.

• Area Development Franchising

In accordance with a "development schedule", the franchisee agrees to establish a predetermined number of "unit franchises" within a particular territory.

• Subfranchising/Master franchizing

Is quite similar to Area Development Franchising with the major difference being that the franchisor grants the subfranchisor the option of opening the unit franchises herself or selling the the franchises to third parties. (Common with International franchising)

• Affiliate Franchising

This type of set up is typically used by an owner of an established business who decides to join/affiliate with a franchised chain.

This allows for the benefit of the franchises brand. This is common with many real estate.

• NonTraditional

This type of set up is customized between the franchisor and the franchisee.

Franchises are not the same as Dealerships and distributorships

A dealership or distributorship differs from a franchise in that there is no FEE involved. Dealers purchase products usually from the manufacturer at wholesale prices.

Note however, that a dealership can become a Franchise IF a FEE is paid to the franchisor AND the distributor is dependent upon the franchisor's pay structure.

Considerations when buying a franchise

• There's a benefit to purchasing a franchise that is well known

• Will the franchisor provide ongoing education and support?

• Were demographic studies performed?

• How many of the franchises have closed operation? Why?

• Have you STUDIED the franchiser's Comprehensive Disclosure Statement? It's required by Law that prospective Franchisee's are provided Comprehensive Disclosure, a copy of the franchisor's Standard Franchise Agreement, Audited statements, a list of the names of all of the Franchisees, as well as a copy of all documents that require the franchisees' signing.

By law, each of the above must be provided at least 2 weeks prior to purchase date.

• I've heard the saying, "if you buy a McDonald's, be prepared to eat burger's for breakfast lunch and dinner." In other words, your business requires commitment.

Additional Sources of information

•Success Magazine

•International Franchise Association www.franchise.org

•Franchise Sales Press *Get this magazine since it is known for its focus on franchise opportunities. Further, they perform regular interviews with both franchisees as well as with franchisors.

•SBA Small Business Association

•Brokerage firms and analysts Since stock information on A public company is useful.

•Franchise Lawyer •Federal Trade Commission Public Reference Branch

•UFOC "Uniform Franchise Offering circular -- the material that is provided by law, by the franchisor to the qualified franchisee. This is likely the most telling of all information gathered.

•Attorney General's Office

•BBB located in the city of the Franchisor's headquarters.

•Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor.

•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.

Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely…

franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.

There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up.

Be wise and ensure that you conduct sufficient research prior to committment.

If you’ll need financial backing, then you will need to create a business plan. There’s a handy Business Plan workbook available at our site.

Bridging the Gap between Opportunity and Success, OwnABizToday.com

About the author:
Due to her terminally ill, physically and mentally handicapped child, Shawn was FORCED out of the "job market" and FORCED into "self employment" ...After experiencing a multitude of financial difficulties. Because of her life's experiences, Shawn understands that it's impossible to predict future circumstances and thus it's terribly important that people...particularly parents, develop financial security. Consequently, leading others toward business ownership has become a passion for Shawn. Presently, Shawn is the Author of OwnABizToday's, Ezine, which presents New Home business Start up's and Small Business Resources each week. To receive our weekly Ezine, send a blank email to: subscribe@ownabiztoday.com RSS: http://www.ownabiztoday.com/ownabiztoday.xml Bridging the GAP between Opportunity and Success, OwnABizToday (http://www.ownabiztoday.com )

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