Thursday, March 1, 2007

Little Known Commercial Loan Puts Cash In Your Hand For Any Reason Fast and Easy by Naomi Monk

Owning a commercial building such as an apartment complex, office building, retail center, business owner-occupied building and the like is a great investment that appreciates over time and can provide a constant source of monthly income.

How To Use Your Equity Without a Hassle

If you’ve got equity in your commercial building, it’s a great source of cash at your fingertips, if you can get it out. It’s not as easy as it sounds if you don’t work with the right commercial loan or commercial broker knowledgeable about your options.

Not all commercial loans and lenders are alike. Some are very restrictive when it comes to how you plan to use the cash you receive from the refinance loan.

Good News For Commercial Property Owners Who Want a Commercial Refinance Loan With Cash Out

The good news is, there is a little known commercial loan that lets you obtain unlimited cash out for any reason. There are no restrictions on how you use the money. Need to make property improvements? No problem. Need to buy some new equipment for your business? No problem. Need some down payment money for another commercial real estate investment? No problem.

In addition to no restrictions for unlimited cash out, all types of commercial properties are eligible. These include multifamily or apartment buildings, mixed-use property, office, retail, self storage, warehouse and industrial buildings, mobile home parks, bed and breakfasts and other special use properties.

High Loan-to-Value Ratios Are Acceptable

Another great benefit this little known commercial mortgage offers is high loan-to-value ratios. For example, you can obtain a cash out refinance up to 90% on commercial real estate such as multifamily or apartment buildings, mixed-use property, a bed and breakfast, light industrial buildings, a mobile home park, office and retail buildings, self storage and warehouse buildings.

The loan to value adjusts to 80% if you own automotive related real estate, hotels with national franchise affiliation, funeral homes, an industrial building or rooming house.

Special use properties can still get cash out up to 75% loan to value. These include day care and health care centers, restaurants, RV parks and independent hotel and motel properties.

If you need to get your hands on the extra cash fast, then you’ll love the fact that these cash out commercial loans fund in just 30-45 days. The application and underwriting process is hassle-free and you’ll know in just 48-72 hours of application whether or not you qualify for the loan.

All Legal Entities Can Apply

One other feature investors will find an advantage is that all legal entities can apply for this loan. This means you can apply for this cash-out refinance loan as individual borrower, corporation, partnership, limited liability company and certain trusts. Personal guarantees are still needed, but it's a lot less hassle than having to take property in and out of different legal titles to obtain the loan.

Stop the headaches. Stop the hassles. Start working with the right commercial loans and lenders and start getting the cash out you want for any reason using your commercial property equity.

Naomi Monk has been helping clients with their real estate and loan needs for 20 years. Business owners and real estate investors can visit her
commercial loan website to learn more about commercial loans, how to invest in the next hot real estate markets and apply for a commercial loan using a fast and easy online application that provides multiple loan options to choose from.

Article Source: Article Directory - Super Feature
A Quick Guide To Refinancing Your Mortgage by Michael Burns

Even slight percentage point shifts can lead to major financial changes. This is the fact that refinancing hinges on. You might mistakenly perceive that it is created to change an old mortage; but it is actually a new mortgage taken to pay the old one.

Now, in the real world, taking out a new loan to pay off another, would not make much sense. But, refinancing gives the borrower the chance to exploit many things, and one of them is significantly lower interest rates. This could mean it's two percentage points under. Mortgages are big sums of money that have your house as collateral. Therefore, when you convert the percentage point difference into monetary terms, you could save a lot.

Why do people opt to refinance? It is because the interest rates are lower and the processing time is faster. But while all these sound very commonplace and easy, mortgage refinancing could be a disaster if you don't understand how it works.

How will refinancing benefit you?

Having mentioned the potential upsides, it's very tempting to just jump into refinancing. However, a refinanced mortgage is still a loan. Thus, you are not spared from the fees you will still need to pay.

Will your savings be higher than your new expenses? To find out if this is the case you can use the free refinance calculator on our site:

One of the problems complained about loans are the terms. Your old mortgage deal might have made it difficult for you to keep up with your payments, but having your mortgage refinanced could remedy this. It is, thus, advised that you only agree to refinance your mortgage if the interest rate is lower by at least two percentage points, to be safe.

You will be elated to find out that some banks have no-cost refinancing schemes. This means you don't have to shell out for the initial fees, etc. These costs will just be deducted from your principal or be reflected in the form of slightly higher interest rates. Despite this, however, it is still an option you should check out.

There are three main things you will benefit from taking a refinancing program. First, you have the chance to pay off your loan early or just a huge part of it and reduce your interest rate. Second, as said previously, are lower interest rates. But, perhaps, the best part is that you can choose between operating under an adjustable mortgage rate or a fixed rate mortgage.

Mortgage refinancing is no doubt a good way to get out of longstanding debt. However, do realize that however which way you see it, it is still a loan. It is your responsibility to adhere to the deal with your creditor. Remember, mortgage refinancing is not for everyone so once you get approved, you should make sure you don't stray. Consult the free refinance calculator at our site to see if you qualify.

Michael Burns is the home refinance expert behind the website Feel free to visit our site to get the latest refinance rates, use our mortgage calculator or just stay up to date with the latest mortgage refinance.

Article Source: Article Directory - Super Feature

Monday, February 26, 2007

Loans For The Self-Employed

Loans For The Self-Employed by Peter K

If you work for yourself, then finding a good loan deal can sometimes be difficult. With less means to prove that you have a stable income and so are not a risk, lenders are less inclined to offer you a good deal. However, with more and more people becoming self-employed this is changing, and there are some great deals around. If you are self-employed and need some help to find the right loan, then here are some useful tips to help you out.

Who is self-employed?

People classified as self-employed can be in a wide variety of jobs and pay categories. Anyone how operates a business as a sole proprietor, is a partner in a partnership, or an independent contractor, is classed as self-employed. If you also work in any role as a freelance agent, such as a consultant, then you are classed as self-employed also.

How to apply for a loan

Applying for a self-employed loan is much like applying for any other type of loan. All you need to do is have a decent credit history and be able to prove your income. How well you can prove your income will depend what business you are in and how long you have been self-employed. The better you can prove your income then the easier it will be to get a loan, which is why it is crucial to keep good business records.

What are the costs?

Although getting a loan if you are self-employed is becoming easier, the rates are still higher than for regular personal loans. This is because lenders see self-employed people as a greater risk, no matter how well they are currently doing. However, if you can show repeat contracts with clients over a few years, then you will be able to get a pretty decent loan rate. It is wise to shop around to look for the best deal, with a lot of the best deals being found online.

Loan insurance not worth it

If you are self-employed, don’t be fooled into taking out the loan insurance. Although you might be covered for accident or injury, you are unlikely to be covered for unemployment unless you have completely ceased trading. Instead, take out adequate business insurance specifically for self-employed people. This will cover you for a lot more things and will save you money on your loan.


One of the biggest problems facing self-employed people is that you are often legally understating your earnings for the purposes of tax, which will hurt you when trying to get a loan. Lenders look at how much profit you are making, which of course is going to be understated to reduce your tax burden. However, a solution to this is to self-certify the amount that you earn. This means you inform the lender how much you earn, but you don’t have to prove this with documentation. This will make it easier to be accepted for a loan, but will involve you having to pay higher interest rates. If you are self-employed, the easiest way to get a loan is to secure it against collateral such as property. Although you are putting the collateral at risk, if you know that you can pay the money back then it will get you a better rate and make the approval process easier.

Peter Kenny is a writer for The Thrifty Scot, please visit us at Debt Consolidation Loans and Bad Credit Loans

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Top ten tips for securing finance

Top ten tips for securing finance by Maxim Garanichev

Raising finance from a bank is never a foregone conclusion, but you can give yourself a better chance of success in securing your business loan by following our top ten tips.

1. Write a business plan

Even if you are not intending to borrow money, planning should be a core part of running your business. If you are borrowing money then it is even more important. A business plan is more than just a cash flow forecast, it is your opportunity to show that you understand the market you operate in and how your business fits into that market.

2. Commit your own money

Banks are less likely to agree to lend you money if they are being asked to take all of the risk. Demonstrate that you are putting your own money into the proposal as well. If you don't have any cash yourself consider whether it would be appropriate to raise some money from friends and family to achieve this.

3. Reduce the risk to the bank

Banks like to know how they will get their money back if things go wrong. You need to explain to the bank how it will get its money back if you don't achieve what you aimed to do in your business plan. Typically this may be by providing some security in the form of a mortgage over a property or a guarantee from a wealthy individual.

4. Build a relationship
The better your bank understands how your business operates and what you hope to achieve, the more likely they are to support you. Even if you do not need finance immediately, take the time to keep your bank up-to-date with progress in your business. You may even find they will approach you to ask if you need to borrow money.

5. Shop around
As with most things it pays to shop around. Putting your proposal across the desk of more than one bank is a sensible approach. If your request is border line you may find that different banks will take a different view on your proposal.

6. Get a recommendation
Ask among your friends and associates to see if they have had particularly good dealings with a bank manager.

7. Take it seriously
You will tend to get out of this what you put into it. Present your request in person; pitch your business and give them confidence in you as an individual. Demonstrate your complete understanding of the business you are entering into.

8. Build on your strengths

Banks are more likely to lend to you if you are building on an existing business or skill you already have. A skilled plumber setting up a plumbing business is a far more attractive proposition than someone with no catering experience opening a restaurant.

9. Be flexible

Consider all the options open to you. You may ask for a business loan, but the bank may offer you a combination of an overdraft, asset-based finance and credit cards. Stay flexible and see if you can make any alternative proposals work for you.

10. Plan ahead

Even if you have a strong proposal, raising money can take much longer than you expect. Make sure you have given yourself enough time to raise the finance you need. This will reduce the pressure on you and give you the opportunity to sell the proposal to the best of your ability.

Business Loan

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The Richest Man in Babylon" Reveals the Fastest Way to Become Financially Savvy

Clason's "The Richest Man in Babylon" Reveals the Fastest Way to Become Financially Savvy – Part 1 by Ed Bagley

Copyright © 2007 Ed Bagley

George Clason's book "The Richest Man in Babylon" reveals the fastest way to become financially savvy. It works today because money is governed today by the same laws that controlled it when prosperous men thronged the streets of Babylon 6,000 years ago.

Here is a synopsis of The Richest Man in Babylon and the important financial lessons it teaches:

A self-employed chariot builder becomes discouraged when, after years of hard work, he realizes that he will never become rich. He labors hard to build the finest chariots in the land, soft-heartedly hoping that some day the Gods will recognize his worthy deeds, and bestow upon him great prosperity.

He now realizes that the Gods could give a care about the work on his excellent chariots. He longs to be a man of means, and have the lifestyle of the richest man in Babylon, who was a childhood friend.

He confers with his best friend, a musician, who reminds him that it is not enough to have a fat wallet, as a man's wealth is not in the wallet he carries, because a fat wallet quickly empties if there be no golden stream to refill it.

The chariot builder decides to confront the richest man in Babylon, who he knew in his youth, and learn how he became so rich.

The chariot builder shares his lament with the richest man in Babylon, knowing that both he and the richest man in Babylon were once equal, played the same games in childhood, studied under the same masters, had equal talent and ability, and worked just as hard; now he works just as hard but his childhood companion has become the richest man in Babylon, while he still struggles.

The rich man replies, "If you have not acquired more than a bare existence in the years since we were youths, it is because you either have failed to learn the laws that govern the building of wealth, or else you do not observe them."

The richest man then explains that he had learned how to become rich from a moneylender, for whom he had provided a service in exchange for the moneylender's secret to success.

The moneylender said, "I found the road to wealth when I decided that a part of all I earned was mine to keep, and so will you."

The money lender tells the rich man, who was then a scribe in the hall of records, to set aside one-tenth of all he earns as his portion to keep.

A year later the young scribe comes back to the moneylender, who asks him if he has kept a tenth of all he earned.

When the scribe replies yes, the moneylender asks him what he has done with it.

The scribe says he has given it to a bricklayer who was going to foreign lands to buy jewels, which he and the bricklayer would sell for profit when he returned. The scribe ends up with nothing, as the bricklayer is sold worthless glass rather than fine jewels.

"Every fool must learn", says the money lender, "but why trust the knowledge of a bricklayer about jewels? Your savings are gone," continues the moneylender, "you have jerked up your wealth-tree by the roots. But plant another. Try again. And, this time, if you would have advice about jewels, go to the jewel merchant."

Another year passes, and again the scribe goes to the money lender, to tell him that he had saved one-tenth and given it to a shield maker to buy bronze, and each fourth month the shield maker pays him rental.

"That is good," says the moneylender, "And what did you do with the rental?" "I had a great feast and bought a beautiful scarlet tunic," replies the scribe.

"You squander your savings," admonishes the moneylender. "How do you expect your savings to work for you, and generate more savings to work for you? Get yourself an army of golden slaves to work for you, then many a rich banquet you may enjoy without regret."

Two years later the scribe again goes to the money lender, to tell him that he still saves one-tenth, invests it more wisely and now continues to do so. "Each time I loaned money to the shield maker, I loaned back also the rental he had paid me. Therefore not only did my capital increase, but its earnings likewise increased."

"You have learned your lessons well," says the moneylender.

"You first learned to live upon less than you could earn. Next you learned to seek advice from those who were competent through their own experience to give it. And, lastly, you have learned how to put money to work for you.

"You have taught yourself how to acquire money, how to keep it, and how to use your money to prosper. You are now competent for a responsible position."

The scribe goes on to become the richest man in Babylon.

It was apparent that no one could do for the scribe what the scribe had done for himself. Each man has to work out his own understanding of what needs to be done, and then prepare himself to take advantage of the opportunity to succeed in a big way.

The moral to the story The Richest Man in Babylon teaches this lesson: Proper preparation is the key to our success.

Ed Bagley is the Author of Ed Bagley's Blog, which he Publishes Daily with Fresh, Original Articles on Internet Marketing, Jobs and Careers, Movie Reviews, Sports and Recreation, and Lessons in Life intended to Delight, Inform, Educate and Motivate Readers. Visit Ed at . . .

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How to save money on your home loan

How to save money on your home loan(prêt hypothécaire) by Gregory van Duyse

If you are asking yourself how to get the best interest rate on your mortgage, you are asking the wrong question. (For more about that, read How to beat the best rate!). What you should be asking is how do I choose the right mortgage strategy for my particular needs.

How do you find the right mortgage strategy? You can’t. You have to enlist the help of a professional who can create the strategy for you. Why is this? First, you don’t know what interest rates are going to do in Canada. Second, you have have a complete understanding of current and future economic factors. And thirdly, you need to design a strategy that is individualized. For all of this, you need a professional mortgage specialist.

You see, a professional mortgage consultant has the ability to conduct an in-depth analysis of the many options that may or may not suit you. To do this, he has been trained to understand all of the mortgage products available and to choose which one is right in a given situation. In addition, he knows where we are in an interest rate cycle and he can make a better judgement of the probable movement of interest rates over the next ten to fifteen years.

It takes years of study to understand the fluctuations of interest rates and there are economists who specialize in only that. Here is what the layman needs to understand about the basics of interest rates:
Interest rates follow an upward trend for a given period of time, they follow a downward trend for a given period of time, and the remain stable for a given period of time. We have seen this trending in action from 1950 to 1980 when interest rates were rising, from 1982 to 2003, when interest rates were falling and from 2003 to 2006 when interest rates stayed in a fairly narrow range. If you are not familiar with how this works, you will end up paying too much for your total mortgage costs.

Next, you have to understand the rules of interest rates:
Interest rates reflect inflation. If there is an increase in the consumer price index, interest rates should increase.
Interest rates are tied to a country’s economic performance. A strong economy will mean higher interest rates, since there is a higher demand for money, and a weaker economy will mean lower interest rates, since the demand for money will go down. It is also important to understand the rules of interest rates. Interest rates follow two rules, one, that interest rates are indicative of the inflation rate, and two, that interest rates are closely linked to the economic performance of a country. What does this mean? If the inflation rate(the consumer price index) goes up, rates will go up, if the economy is strong, interest rates will go up. (Of course, the opposites are also true.)

Trying to predict interest rates is next to impossible. Interest rates over the last thirty years averaged 9.26%, whereas they are now at about 5%. With this rate, you may choose to take out a 5 year fixed rate mortgage. Remember, by doing so, even without realizing it, you have chosen a mortgage strategy, and this one could be a disastrous one. Refinancing every five years in the recent interest rate environment would have cost a fortune.

Mortgage consultants have a number of mortgage strategies that they structure and customize for each borrower. A professional such as this will look at each option and find the right one for his customer.

The basic mortgage strategies are:
-A five year fixed term loan, renewed five times (5 times 5)
- A 15, 20 or 25 year fixed rate mortgage (Long term).
-A mortgage with an interest rate that varies, based on the Bank of Canada base rate. (Variable rate)
-Deduct interest paid on the mortgage from personal income tax (Smith Maneuver)
-Use the equity in the home to add to retirement income. (More retirement)
-Calculate the difference between saving for a 5% down payment while paying rent and taking out a larger loan and avoiding rent during that period.(No down payment)
-Repair credit using a mortgage in order to establish better credit later on. (Less than perfect credit)

Good mortgage planning and finding the right mortgage strategy in each case is what a mortgage broker will do in order to save home loan expenses, sometime as much as 20 times or more, over the life of the loan.

That’s what a mortgage expert will do when he meets with a client. Each person’s individual requirements and dreams are discussed, and then any mortgage strategies that may be open to him are applied to his situation, under the present and anticipated economic conditions. Not taking these steps with a professional mortgage broker can result in paying too much. A consultation is free, not having a consultation is very expensive.

Gregory van Duyse is an Accredited Mortgage Professional (AMP). He is a Mortgage Broker for Mortgage Intelligence.

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The Truth About Bad Credit Loans And Mortgages

The Truth About Bad Credit Loans And Mortgages by Chris James-5768

Many people will have the experience of facing financial difficulties at one time or another for a variety of reasons. Being a little short of money can result in you falling behind with bills, bank loans, credit cards, mortgage repayments and alike.

This in turn can lead to having defaults, County Court Judgements (CCJ’s) and even bankruptcy. Even if the problems are short lived they can still tarnish your credit record and make it difficult for you to obtain finance.

There are no accurate figures on the amount of people that get turned down for a mortgage from a high street lender, but it is widely estimated that it is about 1 in 5. Generally this is due to minor misunderstanding and can often be resolved. But even after this it is estimated that one in eight people will not be able to get a main stream mortgage and have to go to a specialist lender.

Why Do People Get Turned Down For Credit?

There are a number of reasons and situations for which someone will be turned down for a mortgage. It may simply be that the applicant has put down some incorrect details on the application form. Another reason might be that your previous landlord did not bother to confirm that you used to pay the rent on time.

Another more serious reason that people get turned down for a mortgage is that they do not have enough credit points. When you apply for a mortgage the lender will carry out a credit check on you.

You will gain credit points for a number of reasons for example if you have had the same address, job and bank account for a long time. Also people that keep up to date with repayments will gain points as well. But you will lose points if you have defaulted on debts, fallen behind with bills, have CCJs or have been made bankrupt.

What Can You Do If It Happens To You?

If you do get turned down for a mortgage or loan the first thing you should do is find out why. If you did fail a credit score the lender may not tell why, the credit agency that they used will know. It may be a mistake on their part, or an old default that should no longer be on your file.

The best thing to do is to get hold of your credit record from one of the agencies. The three main agencies are Equifax, Experian and Call Credit. If there is some kind of mistake then you can get it sorted.

Another reason that you may get declined a mortgage or loan is because you have not built up enough credit history. If this is the case then it might be an idea to take out a couple of good credit cards (there are always good deals to be had). Use them to purchase things and pay them off straight away.

What If You Have Had Serious Credit Problems?

If a high street lender turns you down for a secured loan or mortgage, then you will need to look towards the sub prime or bad credit market place. These specialist lenders have a vast array of bad credit loans to cater for people in a variety of different situations. Whether it is just a defaulted credit card that happened 12 months ago for £300 or a recent CCJ for which you still owe thousands. Whatever your situation is the chances are you will be able to find a lender.

Generally the worse your credit history is the higher the rate of interest you will pay, this is because you pose a higher risk to the lender. For example if you have two CCJs you will pay higher rate than someone who has a single default. The good news is that you have plenty of choice, there are thousands of deals out there for people with credit problems.

The easiest way to find a deal and suitable mortgage or loan product is to use a broker. The broker can carry out a credit search and based on the results they will be able to determine what your best options are. The majority of the bad credit lenders are not household names. Some of these lenders are owned by American companies and others are subsidiaries of high street lenders.

Getting The Best Deal

As previously mentioned the worse your credit history is, the higher the interest will be. If you have a light bad credit history, then as long as you keep up with repayments then you might be able to switch to a mainstream deal after two years.

If you have heavy bad credit history then you may have to wait three years before switching lenders. So for this reason it can be advisable to avoid products that tie you in for long periods.

So when the deal comes to an end, and you have kept up with your repayments you should look to move to a standard deal, possibly with a high street lender. Hopefully by this time your bad credit history will be long behind you.

Chris James enjoys writing on a number of areas in the finance industry. He is a bad credit loans consultant for Adderson & Co.

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Thursday, February 15, 2007