Finance Magazine

The Lease And Purchase Option

admin — Tue, 25 Nov 2008 09:00:00 +0000

If you have an investment property, should you rent it or sell it? The answer to that question is that you should do both. If you have lots of time on your hands and are handy with tools, you can choose to rent out your property. However, if you have several properties for rent, maintaining them can consume lots of your time. You can choose to hire someone else to maintain your properties, but it cost you money. And higher expenses mean lower profits. In addition to investing your time, finding good tenants for your properties is not easy. Tenants that choose to rent usually do it for a reason. They are usually having credit problems. In addition, most tenants do not take good care of your properties like they would their own homes. And when things go sour, they can mess up your house before they move out. Your goal is to find good tenants to rent your property, transfer the maintenance responsibility to them, and create incentives for them to eventually buy your property. Including the option to purchase to the least contract can eliminate most of the headaches associated with maintenance and dealing with bad tenants. There are several other benefits to the lease and purchase option.

Because the rent is usually higher when you include an option to purchase, this can eliminate most tenants only wanting to rent. People looking for the lease and purchase option are those usually in the process of rebuilding their credit, or are saving money for their down payment. To be fair, the duration of the contract should be between 2 to 3 years, long enough for your tenants to rebuild their credit.

This contract also transfers the maintenance responsibility to your tenants. Not having to worry about maintaining the property frees up your time for you to continue to expand your business. Giving your tenants the option to purchase your property create an incentive for them to take better care of your property. You may also choose to apply some of their rents toward the down payment if they decide to buy your property. This is another incentive for them to pay the rent on time, and eventually buy your property at the locked in price.

During the contract, you cannot sell the house to anyone else other than your tenants. However, you charge your tenants a fee (usually 1 to 2 percent of the purchase price) for the option to lock in the price of your property. If your tenants do not purchase the property before the purchase option contract expires, you get to keep the option fee. However, if your tenants utilize the option to purchase anytime during the contract, you must return to option fee to your tenants. Either way, you are making money whether your tenants buy the home or not. If your tenants decide not to purchase your property and the contract expires, you can begin the entire process all over again.

The important points about the lease and purchase option are that you are looking for good tenants to rent your property, create a constant cash flow from the rent, transferring the maintenance responsibility to your tenants, which frees up lots of your time, and eventually sale the property. Your ultimate goal is to sell the property to good tenants at a price that is fair. The deal should be fair enough that both parties come out feeling like winners. This is important if you want to be in this business for a long time.

http://www.onlinefreedomwork.com

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Where to Get Forex Training

admin — Tue, 25 Nov 2008 01:00:00 +0000

For those of you who are interested in forex trading, you may want to start off by getting some good forex training. Forex training is a necessity for anyone with this interest. This is because a lot of money is involved in forex trading. If you don’t get some forex training, you are bound to lose a lot of money.

Some of you may not even know what forex trading is. If you don’t know this, you defiantly need some forex training. Forex stands for foreign exchange. Forex trading is basically the exchange of one countries currency for another countries currency. This is done simultaneously in hopes of gaining a profit.

You can get forex training from several different places. The first place you should get forex training from is online. There are many websites that offer free forex training. The forex training these websites offer is both reliable and accurate. The forex training on these websites often offers a free demo account to teach you how to trade without actually using any real money.

A second place to get Forex training is at your local college campus. Forex training courses at college are usually inexpensive and very thorough. The forex training courses offered should also include hands on experience with trading, to help you get the edge. You can also get some books on forex training or research forex training at your local library. The best place to get forex training is from someone who is already involved in forex trading. The forex training these individuals provide will be more realistic for you and give you different aspects of the forex trading game.

The forex training you get should first start with learning how the foreign trade market works. The trade market is always changing, so you need to understand it first. The second part of your forex training should be about risk control. You never want to invest more than you can afford. The right forex training should teach you how to cut your losses and have less risks of failure. Next, your forex training should teach you how to open and manage a forex trading account. But this should be done with a demo account. All forex training should be done this way first, before you try the real thing.

With all of this in mind, you should be able to find some good forex training. Learn the ropes of forex trading and take the time to learn it well. Be sure to try a demo forex trading account before you start a real account. With the right forex training, you will soon be on your way to a profitable way to supplement your income.

Jay Moncliff is the founder of http://www.forex-center.info-center.info a blog focusing on the forex training,resources and articles. This site provides detailed information on forex training. For more info visit his site at:forex training

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Another Tax Loophole

admin — Mon, 24 Nov 2008 17:00:00 +0000

Just image, you are a small manufacturing company, business has been good, but yesterday you received a call from a customer who wants 50,000 widgets in 45 days. The customer is a large account and if you turn the business down, he may never call you again.

Problem: You need to hire more staff to meet the manufacturing needs of this customer. AND the customer said nothing about an advance payment. In fact he mentioned that he would be paying net 30 once shipment was received.

You need working capital and you needed it yesterday

You sit down and you start to think. Well let’s see, it will take much needed time to apply to the bank for a loan, your wife threatens to leave with the kids if you refinanced the house one more time for business reasons and your credit cards are maxed out.

As you look around your messy yet effective office you wonder where you can get the working capital you need?

Sitting in front of you is your secretary mailing out invoices. You slowly walk over to her desk and you ask “What’s the total amount of invoices that we have outstanding at this very moment?

Your secretary looks on her computer, moves the rat around a few times, clicks a couple of times, and then hits something that makes the printer start singing. She looks up at you with those “I want a raise” eyes" and says, “it’s coming out on the printer”

You walk slowly over to the printer and pick up the sheet of paper. Just when you think you are ready to read and understand the page another page prints. She says very softly, “the second page will give you the total” You pick up the second page and allow your eyes to scroll down to the bottom of the page and much to your surprise the total amount is well over $300,000.

You don’t want to call a Factoring company because, they will discount your Invoices and you won’t get all your monies OR do you?

Your secretary reminds you that all the fees for Factoring the Invoices is tax deductible and in the end the Factoring will cost you nothing. (Your secretary is taking tax classes at night, something about becoming more valuable to the company and earning more money) She also reminds you that you can Factor the Invoices and be paid up to 92% of the total invoice amount within 48 hours. Plus, the Broker does not charge you.

It is at this point that you try to remember why you married your wife instead of your secretary?

You quickly change from that thought back to who should I call? There are so many Sharks in the water and about $200,000 of the invoices are Government Contracts.

You know you need a Factoring company whose rates are fair and who can deal with the endless paperwork that the Federal Government requires to Factor one of their Contracts.

Needless to say, he called me; the names have been changed to protect the guilty.

This article was written by C. Ingraham, Broker for Government and Corporate Invoice Lines of Credit at http://www.taxeswilltravel.com

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Moving Debt Between Cards Can Save You Money

admin — Mon, 24 Nov 2008 09:00:00 +0000

If you’re like most people, you have plenty of credit cards, and you have stacks of offers for more. The credit card industry is so competitive that, whatever card you have, the chances are that somewhere out there is one that would be cheaper or better for you - and you can change as often as you want!

Take Up Teaser Offers.

To try and get customers, credit cards are still offering massive discount rates when you transfer balances over to them. These ‘teaser’ rates will only last for a set period (check the terms and conditions), but they can still save you a lot of money - especially if you switch to another card’s teaser rate each time one ends.

Yes, this does mean applying for a new card relatively often - but if you do it online, you’ll find it’s quite painless. Is it really worth hundreds of dollars to save the trouble of applying for a new card?

Extend Your Offers.

You might not even need to move to another card to get a teaser offer for longer. If you phone and ask, many lenders will extend the preferential rate for longer, in an effort to get you to stick around.

Check the Small Print.

You might find that the ‘low, low rate’ only lasts a few months, and you might also find that it only applies to balance transfers, not new purchases. A common trap is for a card to allow you to transfer your balance of thousands at 0% APR, only to charge you 20% or more on anything new you buy with it. Of course, as soon as you ditch that card and move to the next, the new purchases become a balance transfer again.

A more nasty thing you might find is that you’re signing up to a minimum term to get the teaser offer - they won’t let you transfer your balance away again for a year, or even more. Avoid these cards like the plague.

Keep Track of Time.

Your card issuer isn’t going to go out of their way to alert you when your teaser rate is over. Make sure you keep track: make a mark on the calendar. Months can go by far more quickly than you’d think, and missing the end of the teaser period by even a day will mean that you’ll end up paying interest at the normal rate.

Moving Around and Your Credit Rating.

Moving debt around between cards often affects your credit rating in an odd way. On the one hand, it shows that you could be an unprofitable customer - after all, you change cards before they can make a profit from you. On the other hand, it also shows that you’re likely to take up offers that you’re sent, and companies tend to believe that they have a great strategy to keep you with them where others have failed.

In other words, some companies will hate you for it, and some will love you. Bear in mind, though, that the longer you do it for, the fewer companies will want to send you their very best teaser rates.

Cassandra Stinchcombe - Don’t let credit cards control you. Take control of your finances. Understanding credit card debit information is the first step. For more articles on this topic visit http://www.envisionopportunity.com/creditcards/creditcards.html

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How to Obtain a Non ChexSystems Bank Account Without Being Scammed

admin — Mon, 24 Nov 2008 01:00:00 +0000

Predatory lending exists in the mortgage industry. It’s typically when a mortgage broker add’s on unnecessary fee’s to a bad credit application, because he or she knows that the applicant is in a desperate situation.

Predatory banking can also exist for those who have ended up in the ChexSystems.

ChexSystems is a network of financial institutions (mainly banks) that regularly contribute information about account holders that mishandle their checking or savings accounts. Nearly all banks within the US are a part of this consortium.

Bounce a check, and not pay it off in a timely manner, and you could end up in the ChexSystems. Even if you receive a bogus check, and the bank suspects foul play, you could land in the ChexSystems hot seat.

And the sentence for this financial felony isn’t light.

If the bank that put you in the ChexSystems refuses to release your name from the ChexSystems database, you’ll find it close to impossible to obtain a bank account of any sort for 5 years.

Even if you pay off the offending debt, the bank could still hold you a ChexSystems prisoner. Wicked, but 100% true.

So naturally when you have a situation where people are stuck between a rock and a hard place, the vultures come out to feed. This is what you may encounter if you’re looking for a non ChexSystems bank account.

Before you pay money to any service that claims to give you a non ChexSystems bank account be sure it passes the following tests with flying colors.

Make sure the bank is FDIC insured.

According to the FDIC web site:

“The FDIC ? short for the Federal Deposit Insurance Corporation ? is an independent agency of the United States government. The FDIC protects you against the loss of your deposits if an FDIC - insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.”

In a nutshell, if you decide to open a bank account with an institution that isn’t FDIC insured, you could basically lose all of your money if that institution goes out of business. So it’s extremely important to verify the banks status before you open an account.

You can easily verify that a bank is FDIC insured at the FDIC web site.

If it’s a credit union, make sure it’s NCUSIF insured.

NCUSIF insurance is similar to FDIC insurance, except it’s for credit unions.

According to the National Credit Union Association web site:

“The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of NCUA. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC).”

All credit unions that are NCUSIF insured can be found at (http://www.ncua.gov/indexdata.html).

Make sure the institution has a physical branch.

This is one of the easiest ways to weed out the bad seeds. Banks with physical branches are always legitimate financial institutions.

Do some background work on the bank.

Do a WHOIS search to view the registrant for the banks domain name. If it’s a single person, that should raise a red flag. It should always be the banks name or corporate name.

Look on the banks web site. There should be separate telephone and fax numbers, and a legitimate street address - not a PO box.

You can always call 411 to confirm that the telephone number matches the address listed. But also keep in mind that some banks have a central location where they answer general calls.

Make sure the bank DOESN’T require you to use direct deposit in order to open the account.

There are some financial services that offer checkless checking accounts. (This isn’t a scam as far as I can tell.)

But what if you don’t get direct deposit? Or what happens if you switch jobs, and no longer receive your checks through direct deposit? Then you’re basically back at square one.

And what if you want to use checks? I mean a checkless checking account kind of defeats the purpose of obtaining a checking account at all.

Make sure the institution doesn’t charge you for common items like monthly statements, telephone services, and withdrawls.

I recently noticed a financial service charging outrageous fee’s for options that are normally provided for free through regular banks and credit unions.

They were charging for everything but the kitchen sink, including: a fee to check your balance at the ATM, a fee to receive a monthly statement, a fee if you wanted to return something you purchased from a retail store, a fee for using their automated telephone service. And that was just the tip of the iceberg!

Even though you’re in the ChexSystems doesn’t mean you should play victim to financially draining ploys like these. There are always better alternatives waiting in the wings.

Alexis Dawes is the author of “How To Get a Bank Account Even If You’re in the ChexSystem.” This report offers information on non chexsystems banks that will give you a checking account, even if you’re in the Chexsystems. Alexis has personally used all of the recommended banks. You can get more information at (http://www.GetCheckingNow.com).

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Deal with All Your Debts with Care!

admin — Sun, 23 Nov 2008 17:00:00 +0000

Lots of people take a large ammount of loans and suddenly they discovered that they’re in debt and life seems pretty gloomy for them, in this situation please don’t despair. Most people have been there and know just how easily it can creep up on us. Most of us try to ignore it until it becomes such a crisis that we go into panic and don’t know what to do now.

The first thing to do is to talk over the problem with a close friend or family member. It’s of no use choosing someone who will say ‘I told you so earlier’ and make you feel even worse! Choose someone who you know is sympathetic and whose judgement you respect.

Now you have actually accepted that there’s a problem and the whole thing is out in the open it won’t seem so bad. The next move will be to contact whoever you owe the money. They will look on you far more favourably if you contact them rather than them having to contact you.

Ask them if you can delay or reduce the payment. This will probably mean that the length of the loan is extended but that’s something you’ll have to accept.

Now in a hurry dont promise to them that you will be unable to fulfill. It’s much better to be realistic and the owner of the debt will be much happier if he see small but some payments coming in regularly rather than bigger ones arriving in a haphazard manner.

Realise that you have been given a chance to put things right and if you blow it this time it will be far harder next time to gain the confidence of any company or person. Everything to do with your debt will be kept on record and will made available to other companies and person if you need credit at any time in the future.

Now comes the solution for your problem. You can find someone who will consolidate them (put them together). This technique is termed as Debt Consolidation. As the debt will be larger it should be possible to negotiate a lower rate of interest and as it will be over a set period the repayments should be lower. Make sure that you’re happier with all the commitments that this new loan puts on you. If you have any doubts take the deal to someone else and talk it over with them. Remember that this is over a fixed term and is just to pay off the debts that you already have. It’s not like a credit card where you can add new debts to the old.

So dont be panic for your large ammount of debts and just be relax and consult good people for your problem, as good people’s are always there to help you.

Linda is the marketting associates of Quick Car Insurance. We deal with Car Insurance Rate, along with Cheapest car insurance and online car insurance. Get the financial protection with a car insurance as a precaution against any unforeseen circumstances!

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How to Calculate the Value of Your U.S. Savings Bonds

admin — Sun, 23 Nov 2008 09:00:00 +0000

If you’re like many Americans over the age of 55, you’ve probably had money taken out of your paychecks for years and years in order to purchase U. S. savings bonds. Those bonds are probably sitting in a safe deposit box at your local bank or in a drawer safely tucked away at home. But, while you might know where those bonds are right now, do you have any idea how much they are actually worth?

It seems to be a fact of life that World War II-era Americans purchased U. S. savings bonds for any number of reasons. First, it was the patriotic thing to do. America needed the money to support the war effort and Americans were more than willing to lend their support. Second, it was an excellent way to save for retirement, or for a child’s education, or for any other reason. Third, the interest paid on U. S. savings bonds was competitive and the income taxes were deferred until the bonds were actually cashed in.

For some reason, though, many of the U. S. savings bonds that were sold never did get cashed in until after the owner’s death. Then, a family member would discover them and wonder how much they were actually worth.

Of course, if you’re in that situation today, you could take the bonds to your local bank and have them figure it out. But, there is another way to get the information. The Bureau of the Public Debt, Department of the Treasury, has a web site that provides all that information, including a calculator with instructions so that you can figure out how much your bonds are worth today - and you can do it all by yourself.

So, if you have any questions about your savings bonds, go to http://www.publicdebt.treas.gov/. And don’t forget to bookmark the site for future reference.

Attorney Michael Pancheri is the founder and CEO of the Living Trust Network. You may contact him directly by email at info@livingtrustnetwork.com. You may also contact at the Living Trust Network’s web site. Its URL is http://www.livingtrustnetwork.com

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5 Things Pensioners Applying for a Loan Should Remember

admin — Sun, 23 Nov 2008 01:00:00 +0000

Are you a pensioner applying for a loan? Here are 5 things you should remember

As a pensioner, applying for loans and finance can be problematic. Some of the best deals in the market may be unavailable to you because you do not meet the ideal criteria that lenders look for. For example, because of your situation you may no longer be able to generate income. To make up for this, you need to make sure that other aspects of your loan application are presented strongly to allow you to obtain the loan most suited to you.

Your age may make you a credit risk

In general, the main thing that lenders consider when reviewing a credit application is risk. Your credit history, income and age may all point to you being a high credit risk and lenders may consequently decline your application. Because of these factors, senior citizens and pensioners may experience greater difficulty in obtaining a loan. However, if you can show that you are able to service your loan for the duration of the term, or even prepay the interest, you still have a good chance of succeeding in your application.

You need to demonstrate loan serviceability in your application

Regardless of your age and employment status, the main thing you need to show is that you can actually pay back the loan you wish to take out. If the lender decides that you will have no difficulty making the scheduled repayments for the term of the loan, you will probably be successful in your application. Any information you can provide regarding your assets and income will obviously be relevant.

Being an existing homeowner may help your situation

Even if you have strong income as a pensioner, a number of factors such as illness or hospitalisation may affect that income and lead to financial difficulty. If you are a homeowner, you may be able to access any funds or equity in your property to secure the loan and convince the lender that you can meet the proposed repayments for the term of the loan.

Non-standard loan facilities may be difficult to obtain

Line of credit mortgages, some long-term fixed-rate mortgages and mortgages that offer payment breaks are all innovations that have appeared in the mortgage market in recent years. Unfortunately, many of these mortgages may be unavailable to pensioners. Lines of credit, for example, which allow the homeowner to take equity out of his or her home, present greater risk to a money lender because of their potential to extend the loan period and create more opportunity for default. Because pensioners may already be considered high risk, it is unlikely that these financial products will be available.

You may be required to apply for loan insurance

Depending on your circumstances, you may wish to obtain loan insurance. This ensures that your loan repayments are met in the event of involuntary unemployment, injury or death. Although the premium may be higher than average due to your status as a pensioner, a lender may nevertheless require you to obtain loan insurance before approving your application.

Nick Cameron is a writer for Australian Debt Reduction which is part of Australia’s largest Debt Relief organisation and has assisted more than 10,000 Australian’s reduce their debt. You can read more articles and find out more about how to reduce your own debt at http://www.australian-debt-reduction.com.au or by calling 1300 306 272 from within Australia.

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How To Use Your Credit Card For Ultimate Financial Advantage

admin — Sat, 22 Nov 2008 17:00:00 +0000

Using a credit card wisely is an important step in building a great credit rating. If you’re trying to re-build your credit or if you’re young and just starting out, pay close attention the next time you receive a new card offer in the mail or online. When you’re trying to build a positive credit history for yourself, using the right credit card makes sense. Making small purchases and then making your payments on time each month is a simple, reliable way to build an outstanding credit report.

WHAT TO LOOK FOR ON A CREDIT CARD APPLICATION

If you receive a credit card application that appears to offer a low monthly interest rate, don’t make a decision until you turn it over and closely examine the Disclosure Box. In it you’ll find a more important measure of credit terms - the Annual Percentage Rate, or APR. By federal law, the Disclosure Box will also tell you whether or not the card has what is called a grace period - a number of days, usually 25, until your purchase starts to accrue finance charges. If a card has a reasonable grace period and you pay off your balance at the end of each billing cycle, you won’t have to pay finance charges. It isn’t difficult to find credit cards that offer these grace periods, so if the Disclosure Box doesn’t declare one then throw the application in the trash and look for a better offer.

If you don’t have any credit history at all, a credit card company won’t want to give you a very high credit limit, but that’s probably best when you’re just starting out. You don’t want to be tempted to go into serious debt with your very first credit card.

HOW TO CALCULATE YOUR MONTHLY FINANCE CHARGES

Ideally you want to pay off your balance each month to avoid paying any finance charges, but when that isn’t possible it’s important to know the actual cost of the items you purchase. The annual percentage rate, divided by 12 months, gives you the periodic rate that will be applied to your outstanding balance each month. You can estimate what your monthly finance charge will be by multiplying the periodic rate times the outstanding balance. It may sound complicated at first, but taking the time to learn this simple equation can make a big difference in how you use your credit card.

When you’re able to see how much you actually spend on an item that you don’t pay off at the end of the month, it might help you to resist the temptation to over-use your card. An item that you want to buy might be on sale at the time you purchase it, but if you don’t pay off your balance at the end of the month then those finance charges can dramatically increase the actual amount you’ll end up paying.

USE YOUR CREDIT CARD AS THE STRONG FINANCIAL TOOL

Credit cards are only one of the tools available to help you build a positive credit history. Making on-time payments for other forms of credit, such as rent and utilities, are also important. Depending on your situation, within 1-2 years your credit rating will be improved enough that you no longer need to use your card for new purchases to maintain your good credit. Use these tools wisely, and they’ll help build your financial future like no other!

Alain Diza is an Ex-Enron survivor, turned Internet Marketer, Real Estate Investor, and published author who partnered with financial credit industry ‘guru’ Joe Lloyd, to negotiate the arguably largest & most competitive online selection of highly-targeted credit cards in the industry to date. Get your own free credit card designed specifically for you, at Alain’s “insiders-only” site: http://www.onlinecreditcardsdirectory.com

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Think You Cant Get a Mortgage?

admin — Sat, 22 Nov 2008 09:00:00 +0000

You’ve finally found that dream home that you have always been searching for, but you are afraid to apply for a mortgage because you have bad credit or less than perfect credit.

Before you give up entirely, there are many mortgage programs that are geared towards people just like you. Here’s a short guide to finding the best one.

The first step in getting a home loan is to find out what your actual credit score is. This will help to protect you against lenders taking advantage of you because of your poor score. Some companies may try to charge a higher interest rate than the applicant’s score actually warrants, so being prepared is very important. There are many services to help you find and manage your score, so take advantage of them.

Once you know your score, you can then begin to look around for the best mortgage program. Generally speaking, lending agencies categorize credit scores based upon a ranking system. The A- category is for those with the best credit; the D-category is for those with the worst credit history. But even if you fall into the last group, you should be able to find a mortgage scheme.

There are companies that will work with you, regardless of whether you have tax liens, judgements, charge-offs or collections. Many of these companies will probably assign you a higher interest rate than those with good credit, and perhaps even require you to put down a larger deposit on your home. On average, those with poor credit histories are only able to finance approximately 80% of the total asking price, so you will be required to put down the difference.

Even if you have a history of bad credit, or county court judgements levied against you, you should find a mortgage lender who will be sympathetic towards your individual situation.

Mark Lambie is the founder of The Loan House a website that allows consumers to quickly and easily get mortgage refinance mortgage information.

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