personnelservice

Posted in by: labourlegislation
No Comments

25 Jul

Subject To Deals and How To Make Money

“Subject To” real estate financing is fairly new on the real estate investing scene, mainly because many investors don’t know what it is.

“Subject To” financing actually can be a win-win situation for both the seller and the buyer/investor if both parties understand their obligations to one another. The seller usually gets to sell his/her property at the asking price which was originally sought, and the buyer/investor usually gets the property with very little money down, if any, while not having to qualify for any bank loans.

We know, that traditional real estate investing is mainly about buying low and selling high, and making a profit from that difference, usually over time. There’s absolutely no secret to that. While doing it this way, of course, you would incur all the paperwork and everything else that goes along with buying and selling a home like paying all the transaction fees that are involved like commissions, closing costs, title, recording fees and of course your time. On an average, the whole process usually takes a month and a half up to six months depending on the situation.

Creative financing, or “other than” traditional and/or conventional real estate investing, is basically working out an agreement that is fair both the seller and the buyer, without using banks or mortgage brokers. By incorporating this type of financing, the sellers can sell their property for the price they want, and in a timely fashion. The buyer/investor can create an environment for him/her to profit in some manner over a period of time.

By leaving out the usual suspects like title companies, real estate agents and loan officers, both parties stand to make the transaction more profitable for the buyer/investor and more cost effective for the sellers. Specifically this can be real profitable for the real estate investor because in any type of investing, and especially in real estate, it’s about leverage. The leverage is what makes creative financing a powerful, profit-making tool for those looking to start a real estate investing business. The leverage is usually represented by how much money you put into a certain investment, and how much you make from that amount over time. “Subject To” deals make your leverage extremely high, since most of the time you place a small amount of cash, for usually a much lager return.

Let’s go over a sample situation which would create an ideal environment for a “Subject To” agreement.

Debbie and Joe Blume bought their house five years ago for a $100,000 dollars. After 5 years, they now owe about $95,000 dollars, while their house is appraised for $160,000 dollars. Both Debbie and Joe have accumulated a credit card debt of about $20,000 dollars since that time, and of course, the interest on that debt is much larger than they really care to have.

Joe and Debbie take out a second mortgage to pay off their credit card debt, take a vacation and buy a new car. With their second mortgage, they do all those things and have about $10,000 leftover, after everything is done. After 7 short months, most of that $10,000 is gone also.

Shortly after this, Joe receives an offer within his company for a higher paying position, but in a different State. Joe and Debbie talk it over, and decide to take the offer and move out of State. Of course, deciding to do that, they must now sell their beautiful home.

Like so many of us, when we look to sell our house, we think logically and talk to a real estate agent. The agent informs them that there is little to no equity left in the house, and tells the Blume’s that they will have to pay the agent’s commissions out of pocket. Of course, Joe and Debbie can’t do that, because they ran out of money and are basically living paycheck to paycheck until the new job starts.

Joe starts to worry a bit, because he needs to get to his new job out of State, within 14 days, and Joe and Debbie would like to spend a few days off together before going to his new job.

Joe starts to think and remembers a “We Buy Houses” sign down the street from their home and runs down and calls the number on his cell phone. After talking with the investor, Joe finds out that the investor isn’t will to pay more than $120,000 for the house. Hearing that, Joe is mad and upset that such a person can come in with such a low and insulting offer. Besides Joe couldn’t do that deal anyway because the second mortgage they took out last year, places their debt just about what the house is worth.

Getting worried and running out of time, Joe places an ad in the local newspaper advertising the house as a “For Sale By Owner”.

Mostly everyone is trying to low ball him except for one guy who said “he will offer the asking price, so long as he can see the place first”. Feeling excited and curious at the same time, Joe invites the man over.

A couple of hours later, Brad comes over and tells Joe that he is the one who called about the house. Brad tells Joe to explain to him a little about the house and his situation.

Joe spills his guts and describes his dilemma to Brad. After Joe finishes his story about his situation, Brad tells Joe that he thinks he can still offer the asking price and if Joe was still interested in selling?

But before they start agreeing any further, Brad says, that as an investor, that his primary motivation to make a profit on the house. Joe and Debbie understand that, so long as their asking price is met and the house is sold quickly.

Brad continues and tells both Joe and Debbie that because of his need to make a profit, he needs to offer an agreement which will satisfy both their needs. Brad continues and says “That offer is what’s called a Subject To” offer. Of course bewildered and confused, Debbie and Joe ask what kind of program is that. Brad simply states, that it’s a program that suspends both their money for the house and his profit on the house for 2 years, while Brad takes over the payments. Not fully understanding, Joe continues to listen to Brad’s offer.

Here’s what it entails:

* keep the current mortgage in place for 2 years, at which time the house will be sold, and Joe’s originally asking price will be met, plus 5% of whatever profit is made by Brad

* escrow account is setup and paid by Brad to ensure full integrity of his contractual agreement with Joe and Debbie

* property is claimed over to Brad which obligates Brad to continue making the existing payments to the escrow account. The deed will stay in the attorney’s presence until the deal is fully obligated by Brad in 2 years

* relieves Joe and Debbie of the monthly debt for the mortgage payment so they can move on with their life

* Brad offers to pay closing cost and 2 months of mortgage payments to the escrow account to solidify his offer and his intentions to make good on the contract

After discussing the deal with each other and realizing that their options and time are running low, both Joe and Debbie agree with Brad over the details and sign over the deed to Brad via the attorney.

Brad then quickly rents out the house to cover the mortgage payments and manages the house as a rental.

Two years later, Brad sells the house for $210,000 and pays $160,000 dollars to Joe and Debbie’s mortgage company, plus sends Joe and Debbie a check for %5 of the $50,000 dollar profits, which is $2,500. Everybody wins!

Jim Mack is a real estate expert and loves to teach. Visit him at http://www.propertycashcow.com/a-blanket-mortgage-covers-multiple-properties-on-the-same-loan.html and http://www.propertycashcow.com

Posted in by: labourlegislation
No Comments

23 Jul

Commericial Dog Food is Non Regulated and Contains Poisons That Can Kill Your Dog

I’ve worked at a vet’s office and asked one of the one’s I really trusted, what they would recommend for my new dog. He said “None” of the commercially produced ones. When I asked why, he said it was because there are no quality standards for pet food.

There could be variations between one batch and another. One lot could cause diarrhea, another a dull coat, intermittent vomiting or skin problems. Since you change what batches you feed your dog over time, you will never know what caused the problem.

You would be shocked what goes into dog food.

Products unfit for human consumption are put into dog food. That includes rendered pets. Yes, euthanized and animals that die from disease are rendered into products that end up in your dog food. Supporters of this practice say that the product is sterilized so that no diseases are transmitted. When you read pet-food labels and it says meat or bone meal, that’s what it is — cooked and converted animals, including some dogs and cats. Even worse than the thought of our dogs becoming cannibals is the process that the flesh goes through to become bone meal. This meat and bone must be treated with toxic chemicals to render it to product.

Since many of the condemned animals are euthanized, dog food contains sodium Pentabarbital. There is also heavy metal contamination such as lead from our environment. While food for human consumption must meet strict standards, dog food does not.

So think long and hard before you feed your dog that food from the supermarket that is labeled healthy dog food. It probably is not.

Lawrence Perrino is an avid dog lover and researh scientist.

Posted in by: labourlegislation
No Comments

23 Jul

Parrot Rescue - Michigan Has An Answer

Pet parrot rescue in Michigan is an example of what it should be in every state and in every country. KARE, a pet parrot rescue group in Michigan, is in business not only to rescue unwanted pet parrots. They also adopt out pet parrots that have been rescued, and educate people about parrots. Reading their mission statement is encouraging. In it they state that they believe all pet birds deserve quality care, love, and respect. They also believe there should be a place where bird owners can find the most current bird care information possible.

The pet parrot rescue in Michigan puts its mission statement to work in many ways. Usually this means parrot rescue on a small scale. Perhaps the biggest parrot rescue project in recent years was the one that followed Hurricane Katrina. KARE deployed rescuers to Baton Rouge, Louisiana in support of Hurricane Katrina’s bird victims, parrots or not. The parrot rescuers joined the huge animal rescue effort that was just getting underway. Pet parrot rescue in Michigan became pet parrot rescue in Louisiana.

How It Works

Pet parrot rescue in Michigan, KARE takes its name from the words Knapptime, Adoption, Rescue, and Education. Those three branches form the basis for any successful parrot rescue program.

1. Rescue: Parrot rescue always begins with rescuing pet parrots. This does not always mean rescue such as was needed after Hurricane Katrina. It may be as simple as accepting, from owners, pet parrots that are no longer wanted. Parrots can live for 50 years or more. Many owners do not think about that when purchasing a parrot. Some time later, as the owner’s life changes, he or she can no longer care for the parrot. In some cases, the owner dies, and the parrot is left behind. In other cases, the parrot becomes aggressive, and the owner no longer wants the pet. Parrot rescue accepts these parrots and cares for them.

2. Adoption: Parrot rescue involves finding new homes for parrots that have been rescued. This is easy with some parrots. They are well behaved, beautiful, and talkative. The adopting family can get a good pet for less than they would pay elsewhere. Finding homes for some rescued parrots is more difficult. The bird may need training to correct behavioral problems. It may have been neglected or abused. The parrot rescue group must evaluate the rescued parrots, and find appropriate homes. In some case, the best home must be a shelter or sanctuary, since it will never again do well in a pet situation.

3. Education: The third prong involved in parrot rescue is education. The pet parrot rescue in Michigan works to educate people who are interested in bird ownership. They want to help them learn the proper care of pet birds. This includes instruction before purchase about the bird’s expected life span. It includes information about proper feeding of parrots and how large a cage a parrot needs. Parrot rescue also should educate people about the options they have if they find they cannot keep a parrot.

If You Need Parrot Rescue

People who reach a point where they cannot keep a pet parrot should contact a place such as this pet parrot rescue in Michigan. Similar parrot rescue groups exist in a number of states.

The reasons for being unable to keep your parrot may be as simple as being unable to afford proper care for the bird. You may have insufficient finances to take the parrot to a veterinarian.

Some people cannot keep a parrot when they relocate overseas. Even relocation that involves a smaller home, or an apartment, may make it logistically impossible to keep the bird.

You could try to sell your parrot, and some people do. Prospective owners may be leery, though, of buying a parrot from a newspaper classified as. They may have heard of parrots that are sold because of aggression. Donating your pet parrot to a parrot rescue group will not give you money in return, but you will know that the parrot will be placed in the right permanent home.

Parrot rescue groups often have waiting lists of adoptive homes. They do everything they can to be sure the bird gets the best possible home.

Kudos for You

Parrot rescue groups often operate in the red. It is costly to care for a number of parrots and other birds. They require numerous cages, hundreds of pounds of food on a regular basis, and modest salaries for their workers.

You will be greatly appreciated when you donate, with your parrot, its cage, perches, playground, toys, and food.

©2007, Anna Hart. An avid reader and researcher, Anna explores many parrot breeds and offers more parrot rescue information at http://www.parrots-of-the-world.com. She also offers advice on the care and training of parrots. If you need parrot rescue for a pet you can no longer keep, you won’t want to miss Anna’s advice.

Posted in by: labourlegislation
No Comments

22 Jul

LG U8330 3G Contract Mobile Phone on 3 Mobile

addthis_pub = ‘articlecity’; addthis_logo = ‘http://www.articlecity.com/images/addthis.png’;addthis_logo_background = ‘ffffff’;addthis_logo_color = ‘000000′;addthis_brand = ‘ArticleCity.com’;addthis_options = ‘email, favorites, delicious, digg, facebook, fark, furl, google, live, myweb, myspace, newsvine, reddit, slashdot, stumbleupon, technorati, twitter, more’;

b3a

The LG U8330 is a stunner in its looks and innovative in its performance. And so the popularity of this handset among tech-savvy and fashion conscious people in the UK as well as in other regions of the globe should not surprise anyone.

The fact that the sleek looks of the handset more than complements its versatility cannot be over emphasized. The LG U8330 mobile phone can be used for video recording, video playback as well as for making video calls. Imagine seeing the expression on the face of your loved ones, while you are talking to them in real time! Quite amazing, isn’t it? The LG U8330 mobile phone can be used for realizing this and many other equally wonderful possibilities.

For instance, users can also listen to their kind of music, even when they are on the move. The LG U8330 comes with a built in music player that can be used to play music files in different formats such as MP3 and AAC. Owners can also create and edit their play lists and keep their music updated with changing times. In addition, the handset is capable of video recording and video play back.

A 180 degree rotating digital camera is another interesting feature of this mobile phone handset. The camera is equipped with 2x digital zoom and a built in flash light and can be used for capturing the best moments of your life. You can view the photos in the 262,000 color screen or store them in the handset’s photo album and video gallery. The LG U8330 mobile phone can also be used for accessing internet-based content and services as well as for sending and receiving email.

To sum up, the LG U8330 is one of the most complete mobile phone handsets currently available. Great looks, cutting edge capabilities and ease of use is making the LG U8330 one of the most sought after handsets in the UK, as well as in some other parts of the world.

Den Decosta is webmaster of http://www.3contractmobilephones.co.uk. This website deals in contract mobile phones on 3 mobile networks in UK like LG U8330. There are best online mobile phones with latest handset of Nokia, LG, Sony, Motorola. You will get latest mobile phone deals as U8330 of LG with cheap mobile phone plans on popular 3 mobile network.

Posted in by: labourlegislation
No Comments

22 Jul

Garden Housekeeping

addthis_pub = ‘articlecity’; addthis_logo = ‘http://www.articlecity.com/images/addthis.png’;addthis_logo_background = ‘ffffff’;addthis_logo_color = ‘000000′;addthis_brand = ‘ArticleCity.com’;addthis_options = ‘email, favorites, delicious, digg, facebook, fark, furl, google, live, myweb, myspace, newsvine, reddit, slashdot, stumbleupon, technorati, twitter, more’;

1c47

Most gardeners, myself included, would much rather be outside working in the garden than inside doing housework. Gardening also requires some housekeeping, but plant lovers generally don’t mind being outside fussing with their plants.

Garden housekeeping is done for two reasons. Keeping the garden neat and clean is done to maintain the aesthetics of the garden, and also to maintain the health of the plants in the garden.

Keeping the garden free of weeds is a simple step that will improve both the beauty and health of any garden. After all, it’s difficult to enjoy your beautiful flowers if they are hidden amongst weeds. Weeds also attract and harbor plant diseases and insect pests, both which will happily spread to your garden plants. Not only that, weeds will also compete with your desirable plants, using more than their fair share of water and nutrients.

The best way to keep weeds out of the garden is to eliminate the weeds even before you plant anything. At http://www.freeplants.com you’ll find an excellent article on weed control that explains how to eliminate weeds from your garden. Of course, more weed seeds will constantly be blowing or carried in to the garden, but you can stay on top of the problem by pulling or hoeing the young weeds weekly, before they get a chance to grow large and set deep roots.

While you’re weeding, remove any trash and debris that may have blown into the garden. Watch for over-ripe fruit and vegetables and discard them before they rot and attract insects or rodents. You can also take this time to examine your plants for insect or animal damage. After determining what insect or animal is damaging your plants you can take appropriate steps to prevent further damage.

Try to walk through your garden every day that you can, not only to admire blossoms that have opened that day or to harvest any ripe vegetables, but also to keep an eye on the overall health of your plants. This way you can identify and deal with any problems immediately and not give diseases or pests the chance to become established. Carry a pruning shears with you whenever you’re in the garden and deadhead any faded flowers, especially on your annual flowers. Deadheading simply involves removing flowers that have already bloomed and are no longer attractive. For many annuals, this will encourage more blooms.

It is very helpful to keep a garden notebook for a number of reasons. In your garden notebook you can keep track of the names of all your plants and make a map showing where each one is planted. This is especially useful when you want to share plants with friends so you can tell them the name of the plant they’re receiving. It’s also helpful if you sell your property. The new owners will be grateful to have that information about the plants on their new property.

In your garden notebook you can also make notes to remind yourself when each plant blooms or is ready for harvest, what vegetable varieties you planted and which of those performed best or weren’t worth planting again, and how you dealt with any insects or diseases that attacked your plants. If you found that your garden was too cramped, make a note to create wider paths between the rows or beds when you plant again the following spring.

It’s particularly important to make a map of your vegetable garden each year. It doesn’t have to be elaborate, a simple sketch would be sufficient. The purpose of your vegetable garden map is to remind you where each crop was planted the previous year so that you can rotate the current year’s crops. Since many plant diseases and even some insects are harbored in the soil, moving your crops from one area of the garden to another will help reduce disease and insect damage.

Some vegetable crops should never be planted in the same area two years in a row. Tomatoes, corn and potatoes are good examples of crops that should be rotated. Several common tomato diseases will overwinter in the soil and will infect tomatoes again if they’re planted in the same spot as the previous year. Colorado Potato Beetle larvae overwinter in the soil and will have more difficulty finding a potato meal if the potatoes are on the other end of the garden when the larvae emerge in the spring. Corn is a heavy feeder and depletes soil of nitrogen. Where the corn was planted the previous year, beans or peas should be planted the following season, as these legumes will fix nitrogen in the soil, replacing what the corn depleted.

Finally, garden housekeeping involves cleaning up the garden at the end of the growing season. Any diseased plants should be removed from the garden and discarded. Do not add diseased plant material to your compost pile unless you are sure that your compost pile heats up enough to kill any pathogens. Woody material such as cornstalks and sunflower stems should be removed from the garden and composted. You may want to break these down into smaller pieces as they tend to decompose very slowly.

Vegetable plants that are not diseased or infested with insects can either be removed and composted or tilled into the soil in the fall, where they will break down over winter and add organic matter to the soil.

Blooming annuals can be pulled from the flowerbed after the first killing frost. Perennials should be allowed to go dormant before the dead foliage is trimmed back close to the ground.

Garden housekeeping is an important step towards a healthy and bountiful garden. It does require a little effort, but garden housekeeping is still more fun than vacuuming and dusting in the house.

Kathy Anderson has been an avid gardener for many years and has grown tomatoes by the acre, along with many other vegetables, flowers and landscape plants. Kathy recommends http://www.freeplants.com as a great place to learn more about gardening. Article provided by http://gardening-articles.com. If you use this article the above links must be active.

Posted in by: labourlegislation
No Comments

22 Jul

Did You Know?

• German Shepherds were among the first dogs trained for police work- beginning around 1900 in Ghent, Belgium.

• Dog’s body cells contain the most pairs of chromosomes (heredity- carrying structures) of any mammal- 39 pairs.

• There is an old Chinese belief that if a person owns a good and faithful dog that the dog will sacrifice itself to Death when Death demands a member of its’ immediate family.

• The most decorated U.S. dog during World War II was a German Shepherd/Husky/ Collie mix named Chips. He also served as a guard dog in North America and later earned a Silver Star for capturing a machine gun nest during the invasion of Sicily.

• Dogs have been used to determine whether twins are identical or fraternal because identicals have the same scent, but fraternals do not, no matter how much they may look alike.

• The Latin word for faithful is “Fido?” Could this possibly have any connection with the fact that so many dogs are named this?

• If an old or sick dog does not shake itself after getting up that this is a sign of bad overall health? Each dog shakes itself to get every muscle and tendon back into perfect place after waking up.

• A dog can survey an area between 200 to 270 degrees, depending on the shape of its skull and the positioning of its eyes, compared to the average of 100 degrees for a human being.

• Due to the popularity of lap dogs in ancient Rome, Julius Caesar once mused if Roman women had ceased to have children in lieu of their new four-legged companions.

Article written and reprinted with permission of: http://www.pedigreedpups.com/
Purebred Dogs, Puppies and Dog Breeders - “Your New Best Friend”

Copyright 2005. All rights reserved.

Debbie Ray, owner of http://www.pedigreedpups.com and http://www.total-german-shepherd.com, is a lifelong animal lover and dog enthusiast. Interested in more dog information? Training and health tips? Thinking about getting a purebred dog? Interested in the German Shepherd Dog in particular? Need to promote your dog related website and get additional in bound links? Check out pedigreedpups.com , total-german-shepherd.com or http://www.pedigreeddogs.com (purebred dog breed directory) for more information.

Posted in by: labourlegislation
No Comments

07 Jul

What Are The Different Types Of House Foundation Types And When To Use Each?

addthis_pub = ‘articlecity’; addthis_logo = ‘http://www.articlecity.com/images/addthis.png’;addthis_logo_background = ‘ffffff’;addthis_logo_color = ‘000000′;addthis_brand = ‘ArticleCity.com’;addthis_options = ‘email, favorites, delicious, digg, facebook, fark, furl, google, live, myweb, myspace, newsvine, reddit, slashdot, stumbleupon, technorati, twitter, more’;”, ‘[URL]‘, ‘[TITLE]‘)” onmouseout=”addthis_close()” onclick=”return addthis_sendto()”>

184f

The foundation is the first piece of a home to be constructed and creates a base for the rest of a home’s components. There are three types of foundations that are commonly used in the U.S.: slab, crawlspace, and basement.

Slab Foundation

Slab is a type of foundation consisting of a structural concrete slab poured directly on the grade. No accessible space exists in slab construction. Slab foundations are popular in areas (i.e. the Southern United States) where there is a relatively high water table. (Water table refers to the depth in the soil at which you find water).

Crawlspace Foundation

A crawlspace is an accessible space with limited headroom, typically between the soil and the bottom of the first floor of a home. Crawlspace construction is predominant in areas where there is heavy clay content in the soil.

Basement Foundation

A basement is an accessible space between the soil and the bottom of the first floor of a home. It usually has more headroom than a crawlspace. Basement foundation construction is predominant in cold climates where the foundation needs to be situated below the frost level.

All three foundation types are usually constructed out of concrete, but can also use concrete masonry units or insulated concrete forms.

Concrete Masonry Units (CMUs) are hollow, concrete blocks. To create the foundation wall, mortar is used between blocks to hold them together, forming the wall.

Insulated Concrete Forms (ICFs) are made of rigid foam insulation forms (a system of support assemblies, including mold, hardware, and necessary bracing to hold concrete) into which concrete is poured. Once the concrete has gained its full strength, the outside forms, the inside forms, or both are left in place to insulate the wall. ICFs are common in regions in which the local building code requires the foundation to be insulated. Another benefit is that the homeowner or builder is able to finish basement immediately, without adding studs.

Choosing the Type of Foundation:

Homeowners and builders make decisions about which type of foundation to use by gauging cost, needs/desires, and soil and weather conditions. If you have high water tables then it may not be possible to have a basement. If your land has shallow bedrock or boulders then it may be more costly to dig a basement. If you have a sloping lot it may be difficult to use a slab foundation. If you have a cold climate then you may need to dig down at least four or more feet to put the home’s footings below frost level. If you have to go at least four feet deep then it may be worth spending some extra money to dig a few feet deeper and have a full basement. Also, it is easier to install and maintain mechanical systems in basements (compared to a crawlspace). Your builder can help you determine what type of foundation is best suited for your area.

The choice of foundation is also affected by personal preferences and costs. Basements can add thousands of dollars to the cost of a home compared to the cost of a crawlspace. However, when you consider the extra useable space created by a basement it is some of the cheapest square footage space of a home. If you are tight on funds and can’t afford the basement then it may be a good idea to find a slightly smaller plan and use the savings to create a basement. You’ll end up with a lot more storage space and potential living space by doing this.

Changing the Type of Foundation on your home:

Almost any house plan can have its foundation changed. It’s common for people to design a different foundation if the available foundations do not suit their needs. If you are currently working with a builder you may want to ask them if they will take care of making the foundation changes for you. Sometimes with foundation design it may be helpful for somebody who is near you to do those changes because they will have more knowledge about your local soil conditions and the slope of your lot.

When changing foundation types, pay attention to where you will put the furnace, water heater, and stairs. If you need to add basement stairs, the basement stairs can usually be put under other stairways or you may be able to replace a closet or small room with basement stairs. Another common place to put basement stairs is to replace a mechanical room with stairs and move the mechanical items (such as the furnace and water heater) to the basement. Sometimes space near the laundry room, or space near the garage can be used for a basement stairs. Larger walk-in closets are sometimes reduced in size to allow space for basement stairs. You can often add a basement stairs to a plan without increasing the size of the plan. However, sometimes space may need to be added to a plan to provide room for a basement stairs.

It should be noted that it is the owner’s full responsibility to check with his/her local and state building authorities, his/her builder, and the designer of the house plan to ensure that the home meets all applicable building codes and requirements.

Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources, the most famous being http://www.houseplancentral.com. House Plan Central has a large collection of home plans and unique house plans in many different architectural styles, from the nation’s top house designers and architects.

Posted in by: labourlegislation
No Comments

03 Jul

Option ARMs: “The Sky is Falling…The Sky Is Falling So Says The Chicken Littles Of The World”

addthis_pub = ‘articlecity’; addthis_logo = ‘http://www.articlecity.com/images/addthis.png’;addthis_logo_background = ‘ffffff’;addthis_logo_color = ‘000000′;addthis_brand = ‘ArticleCity.com’;addthis_options = ‘email, favorites, delicious, digg, facebook, fark, furl, google, live, myweb, myspace, newsvine, reddit, slashdot, stumbleupon, technorati, twitter, more’;

2351

Every investment vehicle and financial program under the sun has some sort of risk attached to it. Whether it is stocks, bonds, stock options (deep in the money/out of the money) puts, arbitrage, stock shorting, derivatives, mergers, Real Estate Investment Trusts, etc. The key is managing the risks within suitable parameters while superimposing an investment template and guidelines over the investment.

Many have used the Option Adjustable Rate Mortgage for consumer home purchases and some are in deep do-do for never understanding exactly what the downside held for them. Many wealthy people have used the Option ARM in combination with financial planning, as they knew exactly what to do with the payment difference between the fully indexed payment and the option payment. They put it to work to more than offset any negative amortization and have benefited. A well-known lender proponent of this vehicle structures the deal with an 80% or lower LTV (Loan To Value) and offers a biweekly payment schedule. This allows the borrower to pay the loan off in 21 to 22 years by making one extra payment per year thereby shortening the term and saving 8 to 9 years of payments. This can make for tremendous savings while working within the program guidelines. The problems started when the Option ARM became morphed by new players in the game by allowing Piggy-Back Second mortgages behind the potentially negative ARM thereby putting more pressure on the borrower to keep up with the adjustments during the current mortgage upswing. Typically the monthly payment has a 7.5% built in escalator per year for the first five years with an additional limitation of the amount of negative amortization (original mortgage amount goes up) 115% of the original loan amount. During an accelerating real estate market the appreciation has kept ahead of the negative amortization. For example: If a borrower had an original 80% LTV loan of $450,000.00 and the difference between the fully indexed rate (fixed margin percentage and the variable index used) and the minimum payment amount was say 6% less and neighborhood prices per appreciating say 11% per year fine. Even with say 3.5% inflation a borrower would be ahead of the game in this scenario. Keep in mind, the 11% appreciation is taking place on the total value where the negative amortization is effecting the mortgage amount only. As long as this scenario carried forward for say five years the borrower could be still be ok. However, when the market turns suddenly, the borrower could be upside down (owe more than the property is worth) in short order.

The best evidence of the sudden turn of events is in monitoring the foreclosure rates of ARMS versus Fixed rate mortgages. In many areas, there are steep rises in these programs. To complicate things, hybrid OPTION ARMS have found there way into ALT A market with borrowers demonstrating less than stellar credit, employment, assets, etc. or a combination of all the aforementioned. With this combination and perhaps a Piggy Back Second Mortgage making for an initial 95% to 100% Combined Loan To Value the handwriting has been on the wall for major problems when a downturn occurred in property values. There will be foreclosures, short sales (lenders settling for less than what is owed) and much agony experienced by borrowers, but eventually it will work itself out. Regulators are already touting closer regulation of Option ARM and other mortgage hybrid products that may pose a danger to the consumer.

So do we through the baby out with the bath water, or is there a way to make this program work?

Let’s then look at a four-unit residential investor property acquisition using an OPTION ARM mortgage vehicle. This is a scenario and discussion of buying property in a softer market as is found in many areas of the country. If the goal in any investments is to make something in the range of 10% plus or minus in other investments then how would this four unit stack up. First of all if you are a professional property manager, great. If not, spend a lot of time to locate and interview a licensed professional property manager perhaps with a Certified Property Manager Realtor designation. Proper management is a must. A street smart Realtor who is not afraid to make lots of low offers is another. Like stocks, a margin account can get you about 50% leverage. Likewise real estate has that and more. Our goal then would be to buy an undervalued property with seller help on costs. The property will be structurally sound with a good roof but may be tired looking and dated with tenants paying less rent than the market. After negotiating a stellar price and term deal the financing will need to allow us CASH FLOW while we tune up the exterior and interior including updated baths and kitchens, carpet and new decorating. The existing tenants will be given the opportunity to stay and pay the higher rents or move and bring in new rental customers who can appreciate the amenities of the new digs. The key to this deal is the OPTION ARM mortgage, which will allow for a low starter payment while the property is being rehabbed. When rents stabilize-full payments can be made at the indexed rate. This will be on a 75% Loan To Value basis to make the numbers work. On a $500,000 property a mortgage of $375,000 at a start rate of say 2.75% or a payment of $1,530.90/month. Rents would be $4,400 per month with a vacancy factor. Taxes are $5,200 or $433.33/month and hazard insurance is $291.66/month. The units have separate meters for water, electric and gas. The owner pays the garbage and lawn maintenance and snow removal. The property was the dog on the block so there is excellent appreciation opportunities over time. Rents will move up annually. In this instance, the property has a Net Operating Income of $33,000 before debt service giving a Cap Rate of $33,000/$515,000(including costs) = 6.4%. With the 2.75% payment rate on the Option ARM the cash flow would be $33,000-$19,000=$14,000 in Cash Flow. The initial investment is $125,000 down + $8,000 cost + $35,000 fix up totaling $168,000. So with $14,000 in cash flow the return on equity is $14,000/$168,000 = 8.33%. Now with the interest and depreciation factored in of some $13,636 plus an interest deduction of $26,250 totals (fully loaded) = $39,886 giving a tax loss of $39,886-$33,000=$6,886 but with a before tax cash flow of $14,000. The Federal Tax savings would be some $2,065 for a 30% tax bracket. The total return on equity would $2,065 + $14,000=$16,065/$168,000= 9.56% in After Tax Return. To compare to fully taxed investments we would then allow for the 30% tax bracket or 9.56%/. 70 = 13.66% before tax rate for investment comparison purposes.

Option ARMs can make sense for a discounted value property at a value below market that will appreciate with upgrades and improvements to make for a more desirable rental space. In this niche with 80% LTV or lower using this program can make a lot of sense. A borrower does not HAVE to go negative; it just cuts down on the positive cash flow. The Option ARM gives lots of flexibility to an investor where cash flow is king. It’s not for everyone. The property has to be acquired at the right price and there must be the potential for a greater value with improvements and higher rents. If that is not the case, pass; bring on the next property. Make lots of offers and bargain for your terms. The blush on this rose (current market) will be returning sooner than not. Market opportunities do not last in this dynamically changing climate. Option ARMS can be used as a useful cash flow tool. Compared to other investments, the depreciation and interest deductions are huge for sheltering investment dollars with the opportunity for appreciation and increasing rents to keep up with rising operational costs. Take a closer look. This can work for good or bad credit. Give it a shot and complete your due diligence.

Dale Rogers
http://www.brokencredit.com

Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending.

Posted in by: labourlegislation
No Comments

02 Jul

New Home Communities - Rebate Program

addthis_pub = ‘articlecity’; addthis_logo = ‘http://www.articlecity.com/images/addthis.png’;addthis_logo_background = ‘ffffff’;addthis_logo_color = ‘000000′;addthis_brand = ‘ArticleCity.com’;addthis_options = ‘email, favorites, delicious, digg, facebook, fark, furl, google, live, myweb, myspace, newsvine, reddit, slashdot, stumbleupon, technorati, twitter, more’;

eea

If you are looking to buy a new home, and you have heard about Rebate programs then you are no doubt wanting to find out more about how you can save money using it. Before you decide to go ahead and save money using a rebate program, it can first be helpful to get to grips with exactly how they work.

What Kind of Homes Apply?

When saving money with a rebate program, you will need to ensure that you manage to find a home that applies. In most cases, the only kind of home that will apply is a new home. The reason for this is that old homes do not have as much profit associated with re-sale. This is because when a builder builds a new home, they make all the money associated with selling it. When someone is selling their existing home, they do not make as much money as they had to buy the house in the first place.

Who Offers a Rebate?

A real estate agent offers a rebate, and it is very unusual to be able to get one from the building company directly. The reason for this is that, if they offered a rebate to everyone then they might as well make the price of the house the current value minus the rebate. That is why, should you wish to get a rebate, you will have to contact a real estate agent who will get the commission and pass a percentage back to you.

Why Offer a Rebate?

Real estate companies generally offer a rebate as a means of giving customers an incentive to go with them, rather than another real estate agent. When a rebate is offered, a customer can save such a massive amount of money that it would be illogical to go with any other provider. The reason that a real estate firm can afford to pay this is simple - they still make 1% off of the value of a property, which is similar to what they make when selling a house that has already been lived in.

How do you find a Company Offering a Rebate?

In order to find a company offering a rebate, you can go about it in a number of ways. If you have a specific new community from which you would like to buy a home, then you should find out who is selling it and find out who is offering rebates and for what amount. From there, you can then decide on the best deal for you. Another method is to contact real estate agents and brokers in you area and find out if any offer rebates for new communities that are being built in and around areas that you would like to live. When you are looking for real estate agents, you could choose to use classified sections in the yellow pages and other directories, or alternatively you could take advantage of search engines - which are now a great way to find exactly what you are looking for when it comes to real estate.

Doug Lasley is president of http://www.buyersrebate.net. The author writes articles about Florida Rebate Program and orlando florida investment property. Supplementary editorials that were written by Doug Lasley related to Rebate Examples & How it works are available on http://www.buyvacationcondos.com/florida_discount_real_estate_brokers

Posted in by: labourlegislation
No Comments

23 Jun

Make Money Online - Is It Possible

If you want to make money online, than you will first have to defeat that negative voice in the back of your head that says it isn’t really possible.

I can tell you firsthand it is possible and I am living proof that anyone with a little persistance and effort can crack the code and make money online. Now if you would have asked me that question several years ago, I probably would have had said “I am not sure”.

But today I can definately say that is possible for you, but first you have to get your mind in the right place. In a positive place. Instead of being a doom and gloom type of person, you have to look at every step you take wether good or bad and learn from them.

I am not going to pull your chains and tell you that you are going to get rich overnite, because making money on the internet can take weeks or even months to set yourself up for success. But all of the investing and effort that you apply now will pay off later as long as you are’nt one of these many people that join a make money program and than give up when they don’t see overnite wealth!

As a society we want everything to be done for us and in the blink of an eye. Answer me this question; “If you knew that in one year if followed certain steps you would be financially well off, would you pursue the steps or just say no thanks?

My guess is that financial independence would be a strong motivator for you. Guess what, it is the motivating factor for everyone that wants to make money online. The difference between you and the other guy is your desire and perseverance.

You may have to deal with family and friends along the way that tell you that you will never make money and your time is wastaed because all money making programs are scams or rippoff’s! I am telling you that this is what I dealt with when I first came online, but now that I am cranking out money from my online business those people are the first ones to help me spend it! So don’t get caught up in all of that negative crap!

Even when it feels like your online business moves two steps back if you keep at it, your business will jump forward and you will make money online.

Chris Peterson help’s people make money online at his website http://www.affiliate-homebusiness.net. He is a living example of how you can make money online by using your computer, visit his site today at http://www.affiliate-homebusiness.net

« Previous Entries

© 2008 personnelservice | Entries (RSS) and Comments (RSS)

Powered by Wordpress, design by Web4 Sudoku, based on Pinkline by GPS Gazette