How To Get Monthly Income Selling Your House By Being The Bank!

What is Owner Financing?

Owner financing, also called a Vendor Take Back or more commonly known as seller financing, is when the seller lends the buyer of the property some money so they can purchase the property. Normally, the loan provided by the seller will become a mortgage on the property to protect the seller from the buyer not paying back the loan. This is essentially a way that everyday people can become the bank when selling their property and make some more money in the process. This can be a win-win situation for all parties involved.

Why Should You Consider Owner Financing?

In today’s economy, when the banks are not lending money as freely as they use to. Many of the programs that helped good people get in to homes are now suspended or no longer available. Now instead of being able to borrow all the money for a down payment, they may have to come up with 5% or more depending on their situation.

Now many people just don’t have that much money saved up. So they have to collect all the money they can find and borrow from their friends and family in order to satisfy the bank’s requirement for the down payment. If they can collect enough money to get normal bank financing, then that’s great. But since most people are still feeling the effects of the last recession, some people just aren’t able to collect that much money. So they either give up on the idea of buying a house now, until they have saved up enough, or they lower their purchase price for their house.

This in turn makes it harder for people to sell their houses for the price that they want. So the houses either stay on the market forever, the prices get lowered or the houses get taken off the market until which time the owner feels that they can sell their house for a decent price. What if, you as the seller could sell your property faster and for a better price, make some extra money and help a financially stable people buy your house? Well you can with Owner Financing.

Advantages To The Seller:

- Generally, buyers are willing to pay a bit of a premium in order to get Owner Financing on a property, so that they do not need as much money for a down payment or to keep their money for renovations.

-The seller will normally get a better interest rate on the money they loaned to the buyer than if they take the money and put it in the bank

-Depending how the loan is setup, the seller has the ability to get monthly income from the buyer paying back the loan to the seller.

-The seller could be able to defer some of the taxes that they would incur when they sell their property and get all the money. Please talk to a tax accountant about how this would work for your circumstances.

-The loan given to the buyer is to be secured against the property itself, this is to protect the seller in case the buyer stops paying back the loan. If this were to happen, the seller would be able to foreclose on the property and take ownership of it, in which case they can sell the property again or keep it.

-Best of all the seller could be able to sell their property fast so that they can move on with their life.

Now you must be thinking that this is too good to be true. Well as good as this sounds there are some disadvantages to this whole concept for the seller. But most of the problems can be resolved by taking the necessary steps.

Disadvantages To The Seller:

-As the seller is lending some of the money they get from selling their property to the buyer as a mortgage, the seller will not get all their money right away. Instead the seller would have to wait until the loan is paid off to get back all of their principle, plus some interest.

-Owner Financing will generally be a bit more work for the seller to handle, since they will have to fill out some paper work to put a lien against the property and make sure that they are receiving money from the buyer as agreed upon. Normally the money they get from Owner Financing would more than justify doing a bit more work.

-There is a risk that the buyer may default on the mortgage. The seller and buyer can agree that if the buyer defaults on the loan, the buyer will give back the keys and sign over the title of the property back to the seller. This way the seller does not have to go through the foreclosure process. In the case that a bank is involved, the seller can contact the bank to bring the bank’s mortgage to good standing and keep the property or just sell the property and pay off the bank. The bank generally does not want the property back, since it is quite expensive to foreclose on a property and they do now know what to do with it.

So in the end, in my opinion the pros out weigh the cons. In the worst case scenario, the seller takes back the property, most likely with some improvements done by the buyer, which would have increased the value.

What About The Buyer?

So now you are possibly thinking that you are taking advantage of the buyer and being just like the big banks and twisting the arms of a home buyer. Well you are not, although the price is higher, the buyer is also getting something out of having the the seller finance part of the purchase.

Advantages To The Buyer:

- Buyer needs less money for a down payment to get the property. They can use some money to fix-up and add value to the property. Unlike some renters, owners of property tend to make improvements to their property, which adds value and increases the value of the property.

- In the case of investors, since they can use less of their money to get in to a property, they are able to buy more property. Therefore, if the investor has some problems with this property, they will normally have other properties creating income for them so they are able to keep paying the mortgages.

- Depending on the amount that is Owner Financed, the buyer can avoid mortgage insurance fees.

- The buyer maybe able to get financing easier since the bank does not need to lend as much money. Although some banks do not like Owner Financing, as long as the buyer puts some of their own money as a down payment and with the help of a good mortgage broker, the buyer can normally find a bank to finance a majority of the sale.

Disadvantages To the Buyer:

-Buyer is paying a higher price for the property. Some buyers are willing to do this so that they can buy a property that they like. It is the same reason that buyers are willing to pay for CMHC fees so they can put less money for down payment. Instead of paying the bank, they are paying the seller.

As you can see, the seller is creating a win-win situation for both the themselves and the buyer by providing Owner Financing. For you numbers people below is an example.

Example:

A home is purchased for $500,000 with a 20% Owner Financing at 3% interest with interest only payments for 5 years with all the principle paid back at the end of 5 years (interest only payments are easier to calculate, since no principle is paid off and the payments are the same each time).

Purchase Price: $500,000 Owner Financing $100,000 (20% of $500,000) Payments for Seller Financed: $250/month ($100,000*3%/yr = $3000/yr 12 months = $250/month)

After 5 years, the buyer pays back the seller $100,000 and paid a total of $15,000 in interest. The seller makes an additional $15,000 on the sale of their home.

How Does The Seller Offer Owner Financing?

Well, that a good question. Regardless of if the seller is selling the home themselves or thought a Realtor, this can be done. The main thing is to let prospective buyers know that the seller is willing to consider financing the sale.

The seller also needs to find a lawyer who understands this concept and how to draw up the contracts. I would recommend asking friends or the Realtor for referrals to a good real estate lawyer. Its as simple as that. The lawyer will have to guide the seller thought the process as the laws and processes are different from place to place.

10 Ways to Work With Banks to Get the Financing You Need

As a real estate investor, it’s important to have access to financing. Whether you’re a rehabber who needs construction financing for a fixer upper, a wholesaler who needs short-term financing for a quick flip, or a landlord who needs long-term financing for a rental property, the ability to find and work with banks is an important part of the real estate investing business.

The following are ten ways to work with banks to get the financing you need:

1. Approach the right banks

The first and most important step is to find banks who are a good fit for you. There’s no sense in trying to convince a bank who doesn’t already have an established track record in lending to real estate investors. You’ll waste too much time educating them on what you need and how you need it done. Instead, find banks who already have an established history of working with real estate investors and understand their needs.

2. Have a good presentation

If you want to be taken seriously by a bank, you need to present yourself well. Whether you’re a new real estate investor and have a deal you need financing for or you’re an experienced real estate investor and already have a track record, gather all of the information you can about yourself and your deals so the lender can get to know you. Put together a binder that includes the following information:

Personal Information

• Loan application
• Credit report
• Business plan
• Business history
• Seminars attended or courses taken
• References

Past Deals

• Property addresses
• Purchase prices
• Rehab costs
• Sales prices
• Profits
• Before and after photos

Current Deals

• Property address
• Purchase agreement
• Comparables
• Deal analysis
• Rehab estimates
• Photos

Once you have this information organized, schedule a face-to-face meeting with the banker if possible. When you meet them in person you will have better luck than if you simply spoke with them on the phone. Also, make sure to dress professionally since you’re not only selling your deals, but also yourself.

3. Have your financials in order

Bankers speak the language of numbers. So it’s important to have your financial information in order. You don’t need to present this information at your first meeting (in fact, your first meeting should focus on what the lender can do for you). However, if you eventually plan to obtain financing from a lender, you’ll need to have the following prepared:

• Personal tax returns (typically last 2 years)
• Business tax returns (typically last 2 years)
• Net worth statement

Some lenders (such as hard money lenders) place more emphasis on the deal than the credit-worthiness of the borrower when making their decision to lend money. For these lenders, you may need to simply prove that the deal is a good one.

4. Invite your bankers to your properties

Once a bank has financed one of your properties, consider inviting the banker out to the property. This provides valuable face time between you and your banks. If your property is a ‘rehab in progress’, it’s probably best to invite them once you’ve completed most of the rehab. This way, they can see the progress you’ve made. Give them a tour of the property and explain the improvements you’ve made. This type of interaction allows your experience to shine and your relationship with the banker to grow.

5. Have a good system

When you’re working with lenders, it’s important to have a good draw system in place to get the rehab funds you need for your project. Draws (also known as construction draws) are detailed requests for repair funds which the bank disburses as work progresses. A construction draw may include any of the following:

• Invoices
• Receipts
• Statements
• Lien releases
• Photos

Since draw requests are often highly document intensive, it’s important to present and send this information in an organized way. Otherwise, it’s going to take a long time for the bank to review. The longer it takes for the bank to review it, the longer it will take to get the money you need to complete your project. The bank will also view disorganized draw requests as a reflection of how you do business.

6. Be honest in your dealings

Whether you’re presenting a deal to a new lender for consideration or dealing with your existing lender about the current state of your business, it’s important to be honest and upfront about everything. There’s no sense in bending the truth about how much you think a property will sell for or how much rent you think you can get.
First, if you have to bend the truth about these things, then your deal isn’t as good as you think it is. Second, when you’re dishonest, you only damage the relationship since these things will naturally come to the surface over time anyway. For these reasons, you should be forthright when it comes to where you and your investments stand. Bankers will most likely forgive you if one of your investments don’t go as planned. Even the best investors make mistakes or lose money on deals, but what they won’t be able to overlook is being intentionally deceived. Be upfront, acknowledge mistakes when you make them, be humble when you experience successes, and you’ll enjoy a better relationship.

7. Read your documents carefully

When you borrow money from a bank, you’ll be required to sign several documents. It’s important to read these documents carefully, understand what the terms are, and be aware of how the terms may change over time. This becomes especially important when you have multiple properties with different loan terms.
Here are some of the documents you’ll need to sign:

• Promissory note – A legal document obligating a borrower to repay a loan at a stated interest rate during a specified period; the agreement is secured by a mortgage that is recorded in the public records along with the deed.

• Mortgage – A lien on the property that secures the promise to repay a loan. A security agreement between the lender and the borrower in which property serves as collateral for a loan. The mortgage gives the lender the right to collect payment on the loan and to foreclose on the property if the loan obligations are not met.

• Personal guarantee – A promise which obligates the guarantor to personally repay debts his/her corporation defaults on.

8. Always be on the lookout for new lenders

Never get too comfortable with just one lender. You never know when your ability to obtain new financing or keep your existing financing may be put in jeopardy. The economy may change, the bank may change their lending policies, the bank may get acquired by another bank, or the bank may replace the banker you’ve had a good relationship with. There are many reasons why circumstances may change. As a result, it’s important that you always have backup financing options. Here are a few ways to ensure you always have a list of lenders to turn to:

• Ask other real estate investors which banks they use.
• Ask real estate agents who represent real estate investors which banks their clients use.
• Ask title companies/settlement attorneys which banks they see funding closings for real estate investors.
• Ask attendees at your local real estate club or association which banks they use.
• Search the internet for banks in your area.

9. Make banks compete for your business

Many novice real estate investors have the mistaken mindset that lenders have the ability to “call the shots” since they provide the financing. As the old saying goes, “He with the gold makes the rule,” right? While this is true, you should still remember that there are a lot banks in the marketplace today. And these banks want your business. They idea here is that you should never approach a bank with the mindset of “do I qualify for a loan under your terms.” Instead, you should be approaching the bank with the question “what kind of terms can you offer me?” And then ask yourself, “do I think this is acceptable?” When you think this way, you are in control.

10. Don’t over borrow

Once you’ve learned how to obtain access to the financing you need, the most important lesson is to not over borrow. This is a lesson that most real estate investors don’t learn until it’s too late. They usually learn the hard way. Real estate investors who borrow in rising markets often get overconfident and eventually take on too much debt. But if markets fall (and they do), these investors are often the ones left with properties that are worth less than what they owe. The result becomes a nightmare for the real estate investor and the bank. Remember, leverage increases your profit potential and your ability to do more deals, but it also increases your risk.

How Asset-Based Loans From Commercial Finance Companies Differ From Traditional Bank Loans

When it comes to the different types of business loans available in the marketplace, owners and entrepreneurs can be forgiven if they sometimes get a little confused. Borrowing money for your company isn’t as simple as just walking into a bank and saying you need a small business loan.

What will be the purpose of the loan? How and when will the loan be repaid? And what kind of collateral can be pledged to support the loan? These are just a few of the questions that lenders will ask in order to determine the potential creditworthiness of a business and the best type of loan for its situation.

Different types of business financing are offered by different lenders and structured to meet different financing needs. Understanding the main types of business loans will go a long way toward helping you decide the best place you should start your search for financing.

Banks vs. Asset-Based Lenders

A bank is usually the first place business owners go when they need to borrow money. After all, that’s mainly what banks do – loan money and provide other financial products and services like checking and savings accounts and merchant and treasury management services.

But not all businesses will qualify for a bank loan or line of credit. In particular, banks are hesitant to lend to new start-up companies that don’t have a history of profitability, to companies that are experiencing rapid growth, and to companies that may have experienced a loss in the recent past. Where can businesses like these turn to get the financing they need? There are several options, including borrowing money from family members and friends, selling equity to venture capitalists, obtaining mezzanine financing, or obtaining an asset-based loan.

Borrowing from family and friends is usually fraught with potential problems and complications, and has the potential to significantly damage close friendships and relationships. And the raising of venture capital or mezzanine financing can be time-consuming and expensive. Also, both of these options involve giving up equity in your company and perhaps even a controlling interest. Sometimes this equity can be substantial, which can end up being very costly in the long run.

Asset-based lending (or ABL), however, is often an attractive financing alternative for companies that don’t qualify for a traditional bank loan or line of credit. To understand why, you need to understand the main differences between bank loans and ABL – their different structures and the different ways banks and asset-based lenders look at business lending.

Cash Flow vs. Balance Sheet Lending

Banks lend money based on cash flow, looking primarily at a business’ income statement to determine if it can generate sufficient cash flow in the future to service the debt. In this way, banks lend primarily based on what a business has done financially in the past, using this to gauge what it can realistically be expected to do in the future. It’s what we call “looking in the rearview mirror.”

In contrast, commercial finance asset-based lenders look at a business’ balance sheet and assets – primarily, its accounts receivable and inventory. They lend money based on the liquidity of the inventory and quality of the receivables, carefully evaluating the profile of the company’s debtors and their respective concentration levels. ABL lenders will also look to the future to see what the potential impact is to accounts receivable from projected sales. We call this “looking out the windshield.”

An example helps illustrate the difference: Suppose ABC Company has just landed a $12 million contract that will pay out in equal installments over the next year, resulting in $1 million of revenue per month. It will take 12 months for the full contract amount to show up on the company’s income statement and for a bank to recognize it as cash flow available to service debt. However, an asset-based lender would view this as receivables sitting on the balance sheet and consider lending against them, depending on the creditworthiness of the debtor company.

In this scenario, a bank might lend on the margin generated from the contract. At a 10 percent margin, for example, a bank lending at 3x margin might loan the business $300,000. Because it looks at the trailing cash flow stream, an asset-based lender could potentially loan the business much more money – perhaps up to 80 percent of the receivables, or $800,000.

The other main difference between bank loans and ABL is how banks and commercial finance asset-based lenders view the business’ assets. Banks usually only lend to businesses that can pledge hard assets as collateral – mainly real estate and equipment – hence, banks are sometimes referred to as “dirt lenders.” They prefer these assets because they are easier to control, monitor and identify. Commercial finance asset-based lenders, on the other hand, specialize in lending against assets with high velocity like inventory and accounts receivable. They are able to do so because they have the systems, knowledge, credit appetite and controls in place to monitor these assets.

Apples and Oranges

As you can see, traditional bank lending and asset-based lending are really two different animals that are structured, underwritten and priced in totally different ways. Therefore, comparing banks and asset-based lenders is kind of like comparing apples and oranges.

Unfortunately, many business owners (and even some bankers) don’t understand these key differences between bank loans and ABL. They try to compare them on an apples-to-apples basis, and wonder especially why ABL is so much “more expensive” than bank loans. The cost of ABL is higher than the cost of a bank loan due to the higher degree of risk involved in ABL and the fact that asset-based lenders have invested heavily in the systems and expertise required to monitor accounts receivable and manage collateral.

For businesses that do not qualify for a traditional bank loan, the relevant comparison isn’t between ABL and a bank loan. Rather, it’s between ABL and one of the other financing options – friends and family, venture capital or mezzanine financing. Or, it might be between ABL and foregoing the opportunity.

For example, suppose XYZ Company has an opportunity for a $3 million sale, but it needs to borrow $1 million in order to fulfill the contract. The margin on the contract is 30 percent, resulting in a $900,000 profit. The company doesn’t qualify for a bank line of credit in this amount, but it can obtain an asset-based loan at a total cost of $200,000.

However, the owner tells his sales manager that he thinks the ABL is too expensive. “Expensive compared to what?” the sales manager asks him. “We can’t get a bank loan, so the alternative to ABL is not landing the contract. Are you saying it’s not worth paying $200,000 in order to earn $900,000?” In this instance, saying “no” to ABL would effectively cost the business $700,000 in profit.

Look at ABL in a Different Light

If you have shied away from pursuing an asset-based loan from a commercial finance company in the past because you thought it was too expensive, it’s time to look at ABL in a different light. If you can obtain a traditional bank loan or line of credit, then you should probably go ahead and get it. But if you can’t, make sure you compare ABL to your true alternatives.

Alternative Financing

Alternative bank financing has significantly increased since 2008. In contrast to bank lenders, alternative lenders typically place greater importance on a business’ growth potential, future revenues, and asset values rather than its historic profitability, balance sheet strength, or creditworthiness.

Alternative lending rates can be higher than traditional bank loans. However, the higher cost of funding may often be an acceptable or sole alternative in the absence of traditional financing. What follows is a rough sketch of the alternative lending landscape.

Factoring is the financing of account receivables. Factors are more focused on the receivables/collateral rather than the strength of the balance sheet. Factors lend funds up to a maximum of 80% of receivable value. Foreign receivables are generally excluded, as are stale receivables. Receivables older than 30 days and any receivable concentrations are usually discounted greater than 80%. Factors usually manage the bookkeeping and collections of receivables. Factors usually charge a fee plus interest.

Asset-Based Lending is the financing of assets such as inventory, equipment, machinery, real estate, and certain intangibles. Asset-based lenders will generally lend no greater than 70% of the assets’ value. Asset-based loans may be term or bridge loans. Asset-based lenders usually charge a closing fee and interest. Appraisal fees are required to establish the value of the asset(s).

Sale & Lease-Back Financing. This method of financing involves the simultaneous selling of real estate or equipment at a market value usually established by an appraisal and leasing the asset back at a market rate for 10 to 25 years. Financing is offset by a lease payment. Additionally, a tax liability may have to be recognized on the sale transaction.

Purchase Order Trade Financing is a fee-based, short-term loan. If the manufacturer’s credit is acceptable, the purchase order (PO) lender issues a Letter of Credit to the manufacturer guaranteeing payment for products meeting pre-established standards. Once the products are inspected they are shipped to the customer (often manufacturing facilities are overseas), and an invoice generated. At this point, the bank or other source of funds pays the PO lender for the funds advanced. Once the PO lender receives payment, it subtracts its fee and remits the balance to the business. PO financing can be a cost-effective alternative to maintaining inventory.

Non-Bank Financing

Cash flow financing is generally accessed by very small businesses that do not accept credit cards. The lenders utilize software to review online sales, banking transactions, bidding histories, shipping information, customer social media comments/ratings, and even restaurant health scores, when applicable. These metrics provide data evidencing consistent sale quantities, revenues, and quality. Loans are usually short-term and for small amounts. Annual effective interest rates can be hefty. However, loans can be funded within a day or two.

Merchant Cash Advances are based on credit/debit card and electronic payment-related revenue streams. Advances may be secured against cash or future credit card sales and typically do not require personal guarantees, liens, or collateral. Advances have no fixed payment schedule, and no business-use restrictions. Funds can be used for the purchase of new equipment, inventory, expansion, remodeling, payoff of debt or taxes, and emergency funding. Generally, restaurants and other retailers that do not have sales invoices utilize this form of financing. Annual interest rates can be onerous.

Nonbank Loans may be offered by finance companies or private lenders. Repayment terms may be based on a fixed amount and a percentage of cash flows in addition to a share of equity in the form of warrants. Generally, all terms are negotiated. Annual rates are usually significantly higher than traditional bank financing.

Community Development Financial Institutions (CDFIs) usually lend to micro and other non-creditworthy businesses. CDFIs can be likened to small community banks. CDFI financing is usually for small amounts and rates are higher than traditional loans.

Peer-to-Peer Lending/Investing, also known as social lending, is direct financing from investors, often accessed by new businesses. This form of lending/investing has grown as a direct result of the 2008 financial crisis and the resultant tightening of bank credit. Advances in online technology have facilitated its growth. Due to the absence of a financial intermediary, peer-to-peer lending/investing rates are generally lower than traditional financing sources. Peer-to-Peer lending/investing can be direct (a business receives funding from one lender) or indirect (several lenders pool funds).

Direct lending has the advantage of allowing the lender and investor to develop a relationship. The investing decision is generally based on a business’ credit rating, and business plan. Indirect lending is generally based on a business’ credit rating. Indirect lending distributes risk among lenders in the pool.

Non-bank lenders offer greater flexibility in evaluating collateral and cash flow. They may have a greater risk appetite and facilitate inherently riskier loans. Typically, non-bank lenders do not hold depository accounts. Non-bank lenders may not be as well known as their big-bank counterparts. To ensure that you are dealing with a reputable lender, be sure to research thoroughly the lender.

Despite the advantage that banks and credit unions have in the form of low cost of capital – almost 0% from customer deposits – alternative forms of financing have grown to fill the demand of small and mid-sized businesses in the last several years. This growth is certain to continue as alternative financing becomes more competitive, given the decreasing trend seen in these lenders’ cost of capital.

Do Canadian Banks Provide Equipment Loans and Lease Financing?

The leasing industry in Canada has historically been dominated by a number of different types of entities that provide equipment and lease financing to Canadian business.

The types of firms that are the key players in lease financing in Canada can be broken down into the following categories:

Life Insurance Companies

Credit Union leasing firms

Third party Independent Finance Companies – Canadian owner

Third party Independent Finance Companies – Subsidiaries of American firms

Captive Leasing Companies

Bank Leasing entities – Subsidiaries of divisions of Canadian banks

We would venture to say that probably 90% of Canadian business owners and financing managers think of ‘ Third Party Independent Finance Companies ‘ when they are looking to source lease financing for their equipment and capital expenditure needs.

Canadian chartered banks have moved in an out of the Canadian lease financing industry over the years. Currently only two the Big 6 Canadian banks have full fledged separate lease entities that actively market lease financing to their customers. In our opinion the reasons customers choose a bank lease financing entity are as follows;

Pricing

Existence of a Current Banking Relationship

Dollar size of transaction

Let’s elaborate a bit on those points. Because banks are in the position of having the lowest cost of capital in Canada for business financing rates on bank leasing deals tend to be excellent. On average we would observe that rates on larger deals tend to be 3-4% over the Canadian prime rate. This is excellent pricing, as independent firms tend to price at 4 to 5 to 6% over the Canadian prime rate. That is on average of course because every customer’s credit quality and situation is unique.

Business customers have bank lines and term loan arrangements with their bank. So it is a natural logical extension that they would discuss their needs with their banker, who may, or may not be able to offer a lease financing solution. We indicated that only two of Canada’s chartered banks have full fledged lease entities. Some of the other banks have leasing division, which are much smaller and more specialized in size, and some banks choose to ‘ partner ‘ with third party independent finance firms that are both Canadian or U.S.owned.

We also referenced dollar size as a key factor in a customer choosing a banking lease arrangement. Banks in Canada have virtually unlimited capital, so they certainly can choose to finance any amount they choose.We say unlimited capital, that is a bit of an exaggeration but Canadian banks are currently viewed as some of the strongest in the world re their own credit ratings and capital ratios.

Banks are traditionally a bit slower to enter into the lease financing area, and banks use the function in some respects to develop new corporate banking relationships. In fact we have observed that in the 2009 and 2010 banking environment in Canada the bank lessor in fact attempt to develop a full corporate banking relationship with customers who approach them for lease financing needs.

Leasing is a good source of profit for the banks – the banks tend to make solid credit decisions on assets and corporate credit quality, and lease pricing provides some nice yields compare to some other parts of their business.

Some banks in Canada have, in the past, purchased some of the private independent Canadian lease companies that were getting large and successful or had a specialized market or geographical niche… Banks are often quick to sell portfolios and eliminate leasing divisions when they feel that market conditions suggest that.

In summary, the Canadian leasing landscape is made up of a number of market participants. Banks play a key role, but not a dominant role in the industry. Lease financing via a bank is often a relationship driven arrangement with the business customer’s current incumbent bank. Banks who participate in lease equipment financing have excellent rates but higher credit and asset requirements. Business owners are cautioned to source the assistance of an experienced leasing advisor to determine which leasing arrangement (bank or non-bank) is best for their needs.

The New Rule For Buying a Home – Using Owner Financing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Summary

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

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

Racing Awards, Medals and Customized Gear for Runners

Running, whether it be a 5k with the family, a 10k for an extra challenge, or a marathon for the elite runners, can be a very exciting and memorable experience. Running is a very personal sport to lots of people, as it can be great exercise and can make you look and feel very refreshed. Tons of awards are given out to winners at races each year. For people organizing these racing events, finding customized and personal running gear can be difficult, as well as finding unique prizes for running champions. When orchestrating a race, you want to have a memorable competition. Medals and unique prizes can help to make the race more exciting. Participants can keep prizes as souvenirs, and remember the experience better because of a keepsake.
The most important souvenir a competitor can take home is a winning medal. Those are worn with pride, and showed to family members and friends. They are often hung on walls, or shown off where they can be seen. Of course, medals need to be personalized, unique, and specific. You cannot award a running champion with a medal that doesn’t recognize what it’s for. It is often a perfect idea to find a company that will provide you with customized prizes for winners. Often, you can ask for customized medals that include the date, the name of the race, and the name of the company sponsoring and orchestrating the event. That way, when people proudly show their winning medal to others, the people who made the event happen will receive the credit and publicity they deserve.

In addition to medals, running apparel and gear can be a great way to make the race more memorable. Unlike medals, gear is commonly worn and would be used often. Passing out swag, such as customized shirts, jackets, hats, and bags can be a great way to add to the excitement of the race. Races with their own gear are viewed as more unique, as they have customized logos and attractive designs. Shirts can be given out to families, and jackets can be sold at the finish line. Hats can be passed out before the race to keep the sun out of the athlete’s eyes. And, of course, bags can be kept forever and used for multiple occasions. Having the name and date of your race on these items can help to increase publicity and help the runners remember what a successful and memorable race it was. Customizing these mementos can help to define a great race, and will definitely help a race to be more exciting and enjoyable.

Gamble on Line – Possess these Various Advantages for your own

There Really are assorted kinds of games and sports which can be found around the world and human beings possess significant interest within them. There’s simply no uncertainty at the simple fact this one among the absolute most essential explanations for why the games and sports really are all important to this public is on account to how those toss some type of troubles .

There Is just 1 particular certain form of video sport which likewise causes it to be into this set of their treasured games which people are able to playwith. And it’s also not any aside from betting. Betting fulfilling the exact same and is exactly about challenges. There are areas. But once again if it regards betting on line the huge benefits really are far a great deal greater than that which it’s possible to see right now.

Now you Must definitely make certain which you’re choosing the optimal/optimally internet web sites as a way to acquire through together using the practice of betting absolutely. And this is what’s going to offer a great deal of benefits to you.

A Variety of Benefits of gaming Internet:

After Would be the numerous benefits of betting on line that individuals have to be mindful of:

· Convenience:

Comfort Is decidedly among the greatest explanations. Here really is some thing which functions being a boon because you aren’t going to need to go everywhere whatsoever.

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This Is another benefit that is important you have to know of. The internet singapore casino has ever let exactly the exact same as properly. You may be certain you are surely becoming to engage in midnight or sunrise much.

? Perform from anyplace:

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Each of In making certain you’re receiving through, These items can help you With the consequences for on line.

Coloring Pages Growing Horizons Of Kids

Children are amazing. They know whatever they are taught. If You wish to enhance the horizon of one’s children, and it’s time to get them participated together with coloring pages. Yes, even they all are on line pages that offer many different ways to bring the hidden talent in your kids. These coloring pages comprises of exceptional lessons that are conveyed at a manner that is fundamental to enable kids to grasp.

Coloring Pages – Benefitting Childrem

Worrying concerning the cost in Association? Chill, as they truly have been available at no price tag. Furthermore, you need to stay away from the stress of shopping for exceptionally costly gadgets that are educational. Everything you will need to have is your distribution for your own printer. It can open the pathway for both kiddies to take high benefits in association with internet colouring pages.

You must be wondering why children Have to Be included in coloring. The main reason is that coloring an image will absolutely control the entire attention of one’s kid. They is going to be in a favorable position to concentrate regarding completing their work followed closely by presenting the most useful finished merchandise.

Parents Can Be Getting Brief Repite

Additionally, Mom and Dad Will Have the Ability to Acquire short respite as your Children will probably undoubtedly be coloring pages which is really a funny exercise. On the web coloring pages have been well known to give children several of the best educational gains entirely. They is going to soon be memorizing numbers along side titles of veggies as well as creatures.

More vulnerability to coloring, simple will probably be learning methodology. Kiddies will secure a chance to fortify the coordination between eye and hand . Since they’ll be learning to color lines, abilities will grow in a ultimate manner. Psychologists state that coloring offers an insight into emotions of children in an imaginative way.

Which exactly are you thinking? Involve your kids with coloring Pages in the earliest.

Types of Wood Siding Available for Homeowners

When building your home, even the smallest decision could make a world of difference in what it ultimately looks like. This is also true when undertaking an exterior redesign project. Siding, among other key characteristics, is one of those big decisions that could entirely alter your home’s exterior appeal based on your decision.
Although plastic siding has become a popular option in recent years due to pricing, traditional wood siding remains the preference for many homeowners. This is because wood siding offers customers numerous benefits over their plastic counterparts. Benefits include:

• Wood siding is eco-friendlier than plastic

• Wood is more aesthetically appealing

• Many types of wood are naturally resistant to mold, mildew, and rot, which allows the home owner less maintenance

• Wood lasts longer

• …And much more

One of the main benefits is that wood naturally takes to paint, stains, and other decorative options incredibly well. Plastic, on the other hand, often must be crafted in the customer’s color choice – meaning that options are limited. Once decided upon a type of wood siding, however, you can then choose any type of finish. Whether you want to paint your home the colors of the rainbow, or opt for a natural dark wood stain, anything is possible. Below we look at four of the most commonly used types of siding available: board and batten siding, bevel, tongue and groove, and lap siding. Each has their own aesthetic appeal so that there is something for every person’s unique tastes.

Board and Batten Siding

Board and batten siding is a vertical design created by using two different sized boards. The wider boards are set beneath, while the narrower boards are placed atop the joins. These narrower boards are called ‘battens.’ There are no set widths, so homeowners can choose their preference. The most commonly used measurements, however, are 1 inch by 3 inch battens placed over 1 inch by 10 inch boards.

Bevel Siding

Bevel siding is the most commonly used siding. Installed horizontally, boards are cut at an angle so that one side is thicker than the others. This creates a shingle effect, or the appearance that the boards are overlapping one another. Tongue and Groove Siding Tongue and groove siding is incredibly versatile. Available in both rough and smooth board finishes, it is fitted together tightly to give a sleek appearance. It can be installed in any direction, which does not only include horizontal and vertical, but also diagonal.

Lap Siding

Lap Siding is also known as Channel siding. This siding is very versatile, with installation capabilities for any direction (like the above tongue and groove siding). This unique siding features boards which partially overlap one another, and the ultimate results are a rustic appearance like those of a hunting cabin. If you’re interested in learning even more about wood siding -including less commonly used types available – you can contact your local siding specialist or construction expert. They will be able to give you more detailed information, including a price estimate for your area.