Traditional Bank Loans
Banks are what come to mind when people think of applying for a loan. Banks offer a variety of services including checking and savings services. However, just about every bank offers the same sort of small business loan products. Recipients apply for a small business loan, if they meet the bank’s criteria. They receive the funds and they pay a set amount back plus interest on a monthly basis. There are often penalties if a customer wishes to pay the balance off sooner than the scheduled date.
Some finance companies offer products that work quite differently from traditional bank loans. Customers are not required to pay back a set amount each month like they would with a traditional bank loan. Customers receive the working capital they need. A small percentage is taken from the customers monthly credit card transaction volumes. When their business cycles slow, so does the total amount that the customer is required to pay. During slower months, less of the balance is received from the customer, and during more profitable months, pays more toward the borrowed capital. The amounts the finance company recovers exactly match the business’ credit card volumes fluctuations. Furthermore, unlike a bank, we the customer is not 0070enalized if the working capital we enhances the business’ performance such that the business is able to satisfy the funding obligation even sooner. The finance company does not charge any early payoff penalties.
With such financial services and solutions businesses can remain ahead of the competition without the pressure of the monthly payments associated with a traditional bank loan.
Canadian Banks - The “Big Five Banks”
The “Big Five Canadian Banks” term refers to the top five banking institutions in Canada. These banks are Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, Canadian Imperial Bank of Commerce, and Bank of Montreal. The big five Canadian banks dominate the Canadian financial markets having a combined market share of over 90%. These banks are in reality international banks with market share in USA, the Caribbean, Latin America, and Asia. They have thousands of employees across Canada and worldwide. You might encounter the “Big Six Banks” term as well, which is the “Big Five Banks” and the National Bank of Canada, which mainly servers customers in Quebec.
RBC Financial Group or simply Royal Bank of Canada is the largest Canadian bank with headquarters in Toronto, Ontario. The bank was founded in 1864, in Halifax, Nova Scotia. Royal Bank has over 70,000 employees worldwide with offices in more than 30 countries and operates 21% of all Canadian ATMs. Royal Bank common shares are listed on Toronto Stock Exchange, Swiss Electronic Stock Exchange and New York Stock Exchange.
Toronto-Dominion Bank (TD Bank Financial Group) is the second major Canadian bank headquartered in Toronto, Ontario. The bank was founded in 1855 in Toronto. TD Bank has over 58,000 employees, serving 14 million customers worldwide. The TD bank Financial Group common shares are listed on Toronto Stock Exchange, New York Stock Exchange and Tokyo Stock Exchange.
Scotiabank previously known as The Bank of Nova Scotia is the Canadian bank with strongest international presence. The bank was founded in 1832 in Halifax, Nova Scotia. Scotiabank does business in over 40 countries, most notably in the Caribbean, Central and Latin Americas, Mexico and Asia. Scotiabank has over 12 million customers offering personal, business and investment banking services. The bank has 57,000 employees worldwide. Scotiabank common shares trade on both Toronto and New York Stock Exchanges.
The Bank of Montreal marketed as BMO Financial Group is Canada’s oldest bank, established in 1817 in Montreal, Quebec. The bank has 35,000 employees and provides a wide range of financial services to its customers in Canada and USA. BMO is listed on Toronto Stock Exchange and New York Stock Exchange.
CIBC (Canadian Imperial Bank of Commerce) was founded in 1867 in Toronto, Ontario. The bank has its headquarters in Toronto, and has over 37,000 employees worldwide, providing a wide range of financial services to over 11 million clients. CIBC is the smallest of the “Big Five” Canadian banks. CIBC is listed on Toronto and New York Stock Exchanges.
The Canadian banking system is well established and developed and Canadian banks are one of the important pillars of the Canadian economy and society. Canadian financial institutions maintain a network of over 7,500 bank branches and over 17,000 ATMs. The top five Canadian banks are all members of the Canadian Banker Association and Canada Deposit Insurance Corporation.
Reeling in Account Numbers - Phishing in Banks and Finance
Many assets within your personal financial life have become digital over the past 5 years such as stock portfolios, mortgages, and bank accounts. Your ability to view, change, and pay bills via your online bank account from the comforts of your home has made life more convenient for consumers.
Online banking has become popular because of the convenience it provides patrons, especially when it comes to bill paying and gauging available funds. However, this new system has lead to many serious security concerns because of reliance that customers have to their online accounts. Innately trusting every communication with a bank logo can eventually lead people online to make grave security mistakes. The prominence of phishing emails has eclipsed the consumers’ ability to stay current on the latest scams.
The growth of online banking
Online banking became popular in the early years of the 21st century and has continued to grow sizably within the U.S. According to Forrester Research, from 2002 to 2005 the number of households that bank online has grown from 29% of households to 51% (1).
Experts are projecting a steady increase for the next 4-5 years with it reaching over 75% of Americans, or nearly 72 million households in 2011. Projections show that online accounts will reach nearly the entire U.S. public within 5-10 years. It will be imperative that banks provide their patrons with information on protecting themselves from phishing attacks or else they and their customers could be very liable to fraud.
Baiting – How phishing works
Phishing works when a person imitates a bank by sending emails to people’s personal accounts that look identical to ones that banks would actually send out. Emails are typically marked as “urgent” requiring attention for some issue surrounding your account. Phishers will ask for a customer’s personal information such as their login, password or Social Security Number. This is an effective way for cyber-criminals to obtain your personal financial information (PFI) because there are few ways to prevent the phishing emails from getting delivered to your inbox. Once a recipient reads and clicks on the email’s links, the responsibility is solely on the bank patron.
Once the phisher has this information they are free to use it at their will. You now have to personally identify the problem and contact the bank, financial firm or credit card company alerting them of the problem. A financial consumer’s lack of knowledge in the many ways phishers lure their victims contributes to the growth in ID theft and fraud. Consumers must pay attention to all details surrounding legitimate and forged bank communication.
A study conducted on why phishing works so well concluded that in 2003 more than two million people gave information to false sites, mostly because of three primary factors within the field:
1. Lack of knowledge consumers have with regards to their computer system and internet browsers: Faulty URL’s and a lack of security indicators on the browser are overlooked, when in reality are easy to identify.
2. Stolen Images: Visual deception is a tactic phishing schemes use and have gotten very good at it from year to year. Fraudulent “PayPal” sites even go to the trouble of usurping images from the legitimate PayPal website, going to the trouble of even using the same image dimensions and “alt tags”(2). In some cases, phishing sites have successfully mimicked legitimate pages as well as creating emails perfectly identical to those created by the financial firm.
3. Not looking at the details: When users, even experienced financial consumers, do not pay complete attention to small details of emails and websites such as a lack of a padlock to insure security or slightly altered logos without the copyright sign; can often take the phisher’s bait.
Most people bite the phishing bait hook, line and sinker
A 2006 Harvard/Berkeley study on the effectiveness of hoax sites showed that financial consumers today must develop a proficiency in spotting a scam from a seemingly genuine looking phony website and/or email. One exercise in the study showed that when significant time and effort is placed into developing fake sites, people had a hard time telling if a site was fake or not. The Harvard/Berkeley study showed that up to 91% of people incorrectly identified the well-designed impostor as a phony site, even when given significant time monitoring it.
Can banks successfully protect you from phishing?
While it’s difficult on consumers to stay up-to-date on phishing schemes, the burden is even more difficult for banks.
“Banks constantly market their zero liability programs, which aim to convince consumers that they stand to lose nothing from most cases of identity theft. Financial companies often complain that media reports exaggerate the risks to consumers after reports of lost or stolen credit card databases.”(3)
These zero liability programs are not in fact not zero liability anymore because of the vast quantity of phishers baiting consumers on the web.
Phishers’ persistent web tactics
Phishers will do whatever it takes to exploit people. Phishers tend to target two types of people:
• The inexperienced who are unaware of the phishing
• The busy/on-the-go people who are too active to thoroughly examine their emails.
Recent strategies, aside from copying nearly all distinctive aspects of bank’s pages is to have an HTML address that appears “legitimate enough” to appear reasonable. An example of this is to send a Bank of America customer a link to www.bank-of-america.com, which is not their actual address. (4)
An extreme example that was used involved banks with a “W” in their name such as Washington Mutual. Phishers use the lettering to their advantage by substituting the W with two V’s so it appears as “VVashington Mutual.”(5) On an 8 point font in the address bar, could you normally tell something as minute as this even with thorough investigation of the page? Letter differentiation is just one in the many tools phishers use to gain access to your financial information.
Phishers’ persistent email tactics
The idea of email phishing has gone past banks to other services that seem reliable from a consumer stand point. In May 2007 there were two bogus emails sent out by phishers from two trust-worthy organizations, the Better Business Bureau (the BBB) and the Internal Revenue Service (IRS). These types of emails are even worse than bogus banking ones because it’s difficult to doubt something coming from historically trusted sources.
With these recent phishing problems and the further deception used by criminals, here is a brief list of ways to determine if an email from your bank is in fact legitimate before you go to a counterfeit site and enter your login/password information:
• If you are notified about needing to log onto your account for any such purpose, go to the bank’s homepage and log on that way
• Most banks have a fraud section on their homepage, check to see if there are any recent instances of phishing listed
• Fraud pages for banks should tell you how they handle account troubles, and if there’s nothing about direct emailing, you can assume the email is fraud
• Call the bank to speak with a representative to ask if there are any such issues with your account
Our inboxes are becoming exceptionally dangerous by the day with the amount of phishing in the digital world. There is no way to stop these horrible life-ruining messages, so simply take extreme precaution before opening suspicious emails. Just imagine all of your hard-earned cash along with your life savings instantly gone because of a simple mistake.
Banks And Finance Auto Car Insurance - Find The Best Quotes Now
Many people today want to know if the bank will finance their auto car insurance payments. Unfortunately, this generally isn’t the case.
In all likelihood, the bank will not finance your car insurance because you are not receiving any kind of return on investment. Unless you can demonstrate you have a proven track record of paying off your debt, this is probably a no go.
However, all is not lost. While achieving auto car insurance is often times very expensive, you certainly don’t need to break the bank to achieve the cheapest rate possible.
First of all, it’s absolutely necessary to do your car insurance research. This doesn’t apply for your purchasing a used car; however, you are not allowed to purchase a new car less you have car insurance.
Unfortunate, many people find themselves in a situation of being ready to buy a new car, without having car insurance in hand. Therefore, they are often times forced to go and get the quickest car insurance that they can find, and oftentimes will end up with a less than ideal rate.
This could have been prevented by doing some simple research on the Internet. Quite simply, you can really find out car insurance quotes for hundreds of different companies on the Internet in the same amount of time you could probably do four or five by phone.
Doing car insurance quote research does not need to be difficult. As long as you utilize the Internet, you can find as many insurance quotes as you want in a short a time as you want.
Also, while doing your research, try to take advantage of companies that offer discounts for various factors such as good driving records, taken drivers education course common getting an antitheft system for your car, etc. Believe it or not, many company’s offer discounts for these various factors and many more. This dramatically lowers the total amount you’ll have to pay.
Of course, the type of car you drive, your age, and your past driving record all play major roles in the car insurance that you will get. No matter what situation you are currently in, you can find cheaper car insurance for you. There are many companies that are based solely on the Internet, and have virtually no overhead costs whatsoever.
Of course, these same companies have questionable customer service, and you will need to decide for yourself if it’s worth it to go with them. Sometimes you will end up paying a little more for quality car insurance, but it will be worth it when it comes time to filing a claim. Hopefully, these banks and finance auto car insurance tips will help you find the best insurance for your car quickly and easily.
Brining Financial Services Online
The variety of financial tools and services available today has multiplied dramatically from a generation ago. On both the personal front and in the business sector there has been a dramatic increase in the number of products available, the methods by which they are delivered and the services they require.
The internet is a perfect system for laying out preliminary information in the financial services industry, where product options can get complicated fairly quickly. Businesses of all sizes that are engaged in some portion of this industry are finding that a website makes good business sense.
An enormous amount of financially related business is still done at the local level. Mortgages, auto and home loans and insurance policies are still usually secured from a local agent. The small businessman engaged in providing such products need only think about the amount of time he or she spends on the phone explaining the basics of their services to realize how much time a website could save them.
When a customer calls about auto insurance, think about the ability to refer the caller to your website to learn about the required minimum coverage, about the relationship of the vehicle’s value, about the relationship of personal injury coverage to health insurance.
Think about having a website that explains the four or five home mortgage options that are available, about how they are affected by down payment, credit history and loan amount. Consider the enormous number of variables available in health insurance for both individuals and families, and envision a chart on your own website that explains how those policies work.
That’s only a start on the types of benefits a website can provide to a small businessman or regional company in the financial services business. Your website can provide explanations, charts, even video clips explaining:
* Retirement planning
* Medicare insurance options
* Home loans, including specialties such as tenants-in kind
* Real estate history and trends in your area
* Auto insurance, including the effects of driving records and assigned risk
* Investments - mutual funds or annuities? Stocks or CDs?
* Estate planning
* Health insurance - a new policy, or COBRA?
These are a few examples plucked from a vast array of financial services that are out there today. Your website can become your reference library, your consulting tool, and your business partner when it comes to educating your clients. Websites provide multidimensional explanations of material in a far more effective fashion than brochures. No matter how glossy, stacks of paper that use terms only half understood are intimidating to people.
Your website can have an entire dictionary section, so that potential customers can learn terminology at their leisure, rather than ask embarrassing questions. And of course, the fewer questions they have when they pay a call on you, the less time is consumed in moving towards a potential sale.
Use the graphics capability of a website to maximize the attractive nature of your particular company. Take advantage of a personalized business website to explain why your services are better, unique, priced more reasonably, performed more thoroughly. With any complex financial product, you’ll need to explain how your selection of products can meet an entire range of consumer needs. Your website can do that for you.
Financial products can be presented online just as attractively as real estate is today. For every financial product, there is a personal benefit that can be reinforced with images. For products with multiple options and complex purchasing decisions, a website provides a consumer with an invaluable tool that is available 24/7. Your potential customer won’t be sitting across from you, concerned that there’s been a question missed or an issue not fully understood. A website is like an office staff to a financial services professional: there’s no better business for harnessing the efficiency of the new technology.
The variety of financial tools and services available today has multiplied dramatically from a generation ago. On both the personal front and in the business sector there has been a dramatic increase in the number of products available, the methods by which they are delivered and the services they require.
The internet is a perfect system for laying out preliminary information in the financial services industry, where product options can get complicated fairly quickly. Businesses of all sizes that are engaged in some portion of this industry are finding that a website makes good business sense.
An enormous amount of financially related business is still done at the local level. Mortgages, auto and home loans and insurance policies are still usually secured from a local agent. The small businessman engaged in providing such products need only think about the amount of time he or she spends on the phone explaining the basics of their services to realize how much time a website could save them.
When a customer calls about auto insurance, think about the ability to refer the caller to your website to learn about the required minimum coverage, about the relationship of the vehicle’s value, about the relationship of personal injury coverage to health insurance.
Think about having a website that explains the four or five home mortgage options that are available, about how they are affected by down payment, credit history and loan amount. Consider the enormous number of variables available in health insurance for both individuals and families, and envision a chart on your own website that explains how those policies work.
That’s only a start on the types of benefits a website can provide to a small businessman or regional company in the financial services business. Your website can provide explanations, charts, even video clips explaining:
* Retirement planning
* Medicare insurance options
* Home loans, including specialties such as tenants-in kind
* Real estate history and trends in your area
* Auto insurance, including the effects of driving records and assigned risk
* Investments - mutual funds or annuities? Stocks or CDs?
* Estate planning
* Health insurance - a new policy, or COBRA?
These are a few examples plucked from a vast array of financial services that are out there today. Your website can become your reference library, your consulting tool, and your business partner when it comes to educating your clients. Websites provide multidimensional explanations of material in a far more effective fashion than brochures. No matter how glossy, stacks of paper that use terms only half understood are intimidating to people.
Your website can have an entire dictionary section, so that potential customers can learn terminology at their leisure, rather than ask embarrassing questions. And of course, the fewer questions they have when they pay a call on you, the less time is consumed in moving towards a potential sale.
Use the graphics capability of a website to maximize the attractive nature of your particular company. Take advantage of a personalized business website to explain why your services are better, unique, priced more reasonably, performed more thoroughly. With any complex financial product, you’ll need to explain how your selection of products can meet an entire range of consumer needs. Your website can do that for you.
Financial products can be presented online just as attractively as real estate is today. For every financial product, there is a personal benefit that can be reinforced with images. For products with multiple options and complex purchasing decisions, a website provides a consumer with an invaluable tool that is available 24/7. Your potential customer won’t be sitting across from you, concerned that there’s been a question missed or an issue not fully understood. A website is like an office staff to a financial services professional: there’s no better business for harnessing the efficiency of the new technology.
Online Banking Explained
Life has become so busy and so hectic that we find ourselves rarely having time to eat, let alone visit the bank. The vast internet has made it possible to do our banking right online. Many banks today offer the capability to do your banking on their website; additionally, there are some bank institutions that are online only. While banks that only exist online have begun to offer extremely competitive rates, they cannot even begin to be able to replace the personal customer service you can obtain at regular bank.
So let us delve deeper into the realm of online banking, it does have many advantages and the biggest, most popular one is the flexibility it can offer. Online banking offers you quick access to your account twenty-four hours of the day, seven days of the week, and three hundred and sixty five days of the year. With this flexibility, you know longer have to live within the constraints of specific hours of banking and you do not have to worry about holidays. Online banking is open at all hours, every single day.
Even as interest rates soar with traditional banking, typically an online bank can offer you amazing deals on different banking aspects such as mortgages, credit cards, and personal loans. So what is it that online banking can offer you? Good question, you can view all your statements and balances right online, without having to deal with telephones, ATM’s, or ten different pieces of paper. You can also view any type of transfer of funds, standing orders, and bills you have paid. You still get the traditional checkbooks and debit cards with these online banking institutions.
The first step is choosing the right online bank for you, you can find many different banks all around the internet. You will want to research them fully, to all possible extents to ensure that they are reliable and secure. You will have to fill out an application form that will likely require you at some point to sign and send back to the bank. You will also likely be required to show some form of identification for account activation.
Ensure that the banking website integrates SSL (secure sockets layer) for security as well as many other types of security measures set in place to keep your transactions safe. Once you have your online banking account set up outside of the secure website, it is up to you to keep your personal information just as safe. For instance, never write down your password, user name or Pin number. If possible, make each of these things something you can easily remember. Keep each of these things to yourself, do not give them out to any other person, if this person decides to access your account they can have full control over your funds. Do not send your information through the e-mail these can be intercepted easily. Additionally, use a password that is unique and not an obvious one like 12345. Finally, always end your banking session by logging out and closing the browser, this will prevent anyone who has access to your computer from accessing your account.
Life has become so busy and so hectic that we find ourselves rarely having time to eat, let alone visit the bank. The vast internet has made it possible to do our banking right online. Many banks today offer the capability to do your banking on their website; additionally, there are some bank institutions that are online only. While banks that only exist online have begun to offer extremely competitive rates, they cannot even begin to be able to replace the personal customer service you can obtain at regular bank.
So let us delve deeper into the realm of online banking, it does have many advantages and the biggest, most popular one is the flexibility it can offer. Online banking offers you quick access to your account twenty-four hours of the day, seven days of the week, and three hundred and sixty five days of the year. With this flexibility, you know longer have to live within the constraints of specific hours of banking and you do not have to worry about holidays. Online banking is open at all hours, every single day.
Even as interest rates soar with traditional banking, typically an online bank can offer you amazing deals on different banking aspects such as mortgages, credit cards, and personal loans. So what is it that online banking can offer you? Good question, you can view all your statements and balances right online, without having to deal with telephones, ATM’s, or ten different pieces of paper. You can also view any type of transfer of funds, standing orders, and bills you have paid. You still get the traditional checkbooks and debit cards with these online banking institutions.
The first step is choosing the right online bank for you, you can find many different banks all around the internet. You will want to research them fully, to all possible extents to ensure that they are reliable and secure. You will have to fill out an application form that will likely require you at some point to sign and send back to the bank. You will also likely be required to show some form of identification for account activation.
Ensure that the banking website integrates SSL (secure sockets layer) for security as well as many other types of security measures set in place to keep your transactions safe. Once you have your online banking account set up outside of the secure website, it is up to you to keep your personal information just as safe. For instance, never write down your password, user name or Pin number. If possible, make each of these things something you can easily remember. Keep each of these things to yourself, do not give them out to any other person, if this person decides to access your account they can have full control over your funds. Do not send your information through the e-mail these can be intercepted easily. Additionally, use a password that is unique and not an obvious one like 12345. Finally, always end your banking session by logging out and closing the browser, this will prevent anyone who has access to your computer from accessing your account.
Cash Advance Company - How To Choose A Cash Advance Lender
Cash advance companies differ in how soon they deliver money, structure their fees, and process applications. To find a payday loan that best fits your needs, decide what you most want – speedy money, low fees, or an easy application process. Then do a quick scan of lenders to find the best match. In just a few minutes, you can find the perfect cash advance company for you.
Decide What Service You Most Want
When you start looking for a lender, decide what you most want out of a payday lender. If you are looking for speedy cash in a matter of hours, expect to pay higher finance fees. However, if you are willing to wait a little longer or fax in some documentation, you can find lower fees for larger amounts.
By prioritizing your needs, you can focus your search on payday loan lenders that are most relevant. In a few minutes, you can search for the company with the best delivery time, rates, or application process.
The Differences In Lenders
Online payday loan applications make for speedy loans, often processed in a matter of minutes. In general you will get your cash the next business day, but there are companies who process funds in less than an hour. These companies usually have higher fees since they have staff 24 hours a day.
For the easy application process, go with a faxless program. That way you won’t have to search for your pay stub or bank records. With databases, lenders are able to verify your application without paperwork.
The lowest rates are usually found with lenders that require additional documentation. By having you fax in copies of your financial information, they reduce the risk of fraud and pass the savings onto you.
Where To Search For Payday Loan Lenders
With the internet, you can search for payday loan lenders from across the country. With so many choices, you can be sure to find the right company no matter where you live.
Start with recommended lenders and look at their website for information on their loan program. Also feel free to email the company if you need more details to make a decision.
Cash advance companies differ in how soon they deliver money, structure their fees, and process applications. To find a payday loan that best fits your needs, decide what you most want – speedy money, low fees, or an easy application process. Then do a quick scan of lenders to find the best match. In just a few minutes, you can find the perfect cash advance company for you.
Decide What Service You Most Want
When you start looking for a lender, decide what you most want out of a payday lender. If you are looking for speedy cash in a matter of hours, expect to pay higher finance fees. However, if you are willing to wait a little longer or fax in some documentation, you can find lower fees for larger amounts.
By prioritizing your needs, you can focus your search on payday loan lenders that are most relevant. In a few minutes, you can search for the company with the best delivery time, rates, or application process.
The Differences In Lenders
Online payday loan applications make for speedy loans, often processed in a matter of minutes. In general you will get your cash the next business day, but there are companies who process funds in less than an hour. These companies usually have higher fees since they have staff 24 hours a day.
For the easy application process, go with a faxless program. That way you won’t have to search for your pay stub or bank records. With databases, lenders are able to verify your application without paperwork.
The lowest rates are usually found with lenders that require additional documentation. By having you fax in copies of your financial information, they reduce the risk of fraud and pass the savings onto you.
Where To Search For Payday Loan Lenders
With the internet, you can search for payday loan lenders from across the country. With so many choices, you can be sure to find the right company no matter where you live.
Start with recommended lenders and look at their website for information on their loan program. Also feel free to email the company if you need more details to make a decision.
What To Do When The Banks Say No!
Is it more traumatic to be told no by a date or a bank? Actually, I ‘m not sure but I can tell you I’ve gotten a lot of no’s from one of them…I’m not saying which. For many investors the no from the banks can be a serious problem. How can one possibly do real estate investing without a lender or a large amount of money in the bank?
There is another way to do it. It is referred to by many as “private money†or a “silent partnerâ€Â. It simply means that someone other than a bank or a business that does lending is willing to loan you the funds to do what you want to do. When I first heard of it I thought that there can’t be very many people out there willing to do that.
As I have used private money myself, I have realized that there are definitely enough people out there that are willing to do it. There can be a wide variety of reasons as to why they would want to, but it comes down to this – they want to make money and believe that you can do it for them.
A typical situation would look like this: someone out there has a significant amount of capital (money) that they want to be working for them. For whatever reason, they don’t have the time to do all the work of real estate investing themselves, or maybe they don’t even want to do it.
The other side of the transaction is the investor who is either new or just stretched out with all available capital currently in properties already. When the two parties come together, we have profitable activity.
Let’s take a look at why each side may want to pursue this. As stated earlier, the investor who is looking for the capital may be stretched out so that banks will not lend any more money. He or she may also have a poor credit history or maybe even just not like banks. I attended one seminar where the speaker had worked for a bank and been ruined by them. He stated that he did his first 26 deals without any assistance from banks.
The person with the capital is simply looking for the highest return on their investment. Many investments are performing so poorly in the last several years that there are very few places to get a high return on money without substantial risk. Real estate provides a relatively safe high yield – provided that the person supplying the capital does some due diligence to make sure the person they are funding has the ability to complete the deal.
At a minimum, here is what should be disclosed on any private money transaction: The financial situation of the property should be fully known – how much is either owed on it or how much is it going to be purchased for; what is the market value once it is either fixed, rented, or resold?; how much is it going to cost to fix, hold or resell? What other sources of money is the property purchaser going to use?
Notice that the focus so far has been on the property. The property is very crucial to a successful investment. The other piece is the purchaser. The lender has to have some idea of the competency of the purchaser. The best proof is a portfolio of previously successful real estate deals. Absent that, the investor has to rely on a judgment of the character and competence of the property purchaser.
Where does one go about finding either side of the transaction? Probably the best places would be investment clubs or groups. Do a web search on “real estate investment club†with your local area and you may be surprised at how many there are. Another source is on various classifieds in print or online. Many property purchasers advertise looking for investors. It is less common for investors to advertise for property purchasers, because they would be overwhelmed.
Completing the transaction is the easy part. Most commonly, a Deed of Trust and Promissory Note are used. The property owner completes both and gets the deed notarized and recorded. This way the party supplying the capital for the real estate investment has the property as collateral and can be certain the person they are supplying the money to is not just going to run off with it.
The terms of repayment can be whatever the two parties agree to. I am not an attorney, so if there are some terms that would be prohibited in your area, I wouldn’t know. For any transaction involving real estate investment and lots of money you should seek professional counsel.
There is a certain good feeling being able to do real estate investing without the need of a bank. I highly recommend it!
Is it more traumatic to be told no by a date or a bank? Actually, I ‘m not sure but I can tell you I’ve gotten a lot of no’s from one of them…I’m not saying which. For many investors the no from the banks can be a serious problem. How can one possibly do real estate investing without a lender or a large amount of money in the bank?
There is another way to do it. It is referred to by many as “private money†or a “silent partnerâ€Â. It simply means that someone other than a bank or a business that does lending is willing to loan you the funds to do what you want to do. When I first heard of it I thought that there can’t be very many people out there willing to do that.
As I have used private money myself, I have realized that there are definitely enough people out there that are willing to do it. There can be a wide variety of reasons as to why they would want to, but it comes down to this – they want to make money and believe that you can do it for them.
A typical situation would look like this: someone out there has a significant amount of capital (money) that they want to be working for them. For whatever reason, they don’t have the time to do all the work of real estate investing themselves, or maybe they don’t even want to do it.
The other side of the transaction is the investor who is either new or just stretched out with all available capital currently in properties already. When the two parties come together, we have profitable activity.
Let’s take a look at why each side may want to pursue this. As stated earlier, the investor who is looking for the capital may be stretched out so that banks will not lend any more money. He or she may also have a poor credit history or maybe even just not like banks. I attended one seminar where the speaker had worked for a bank and been ruined by them. He stated that he did his first 26 deals without any assistance from banks.
The person with the capital is simply looking for the highest return on their investment. Many investments are performing so poorly in the last several years that there are very few places to get a high return on money without substantial risk. Real estate provides a relatively safe high yield – provided that the person supplying the capital does some due diligence to make sure the person they are funding has the ability to complete the deal.
At a minimum, here is what should be disclosed on any private money transaction: The financial situation of the property should be fully known – how much is either owed on it or how much is it going to be purchased for; what is the market value once it is either fixed, rented, or resold?; how much is it going to cost to fix, hold or resell? What other sources of money is the property purchaser going to use?
Notice that the focus so far has been on the property. The property is very crucial to a successful investment. The other piece is the purchaser. The lender has to have some idea of the competency of the purchaser. The best proof is a portfolio of previously successful real estate deals. Absent that, the investor has to rely on a judgment of the character and competence of the property purchaser.
Where does one go about finding either side of the transaction? Probably the best places would be investment clubs or groups. Do a web search on “real estate investment club†with your local area and you may be surprised at how many there are. Another source is on various classifieds in print or online. Many property purchasers advertise looking for investors. It is less common for investors to advertise for property purchasers, because they would be overwhelmed.
Completing the transaction is the easy part. Most commonly, a Deed of Trust and Promissory Note are used. The property owner completes both and gets the deed notarized and recorded. This way the party supplying the capital for the real estate investment has the property as collateral and can be certain the person they are supplying the money to is not just going to run off with it.
The terms of repayment can be whatever the two parties agree to. I am not an attorney, so if there are some terms that would be prohibited in your area, I wouldn’t know. For any transaction involving real estate investment and lots of money you should seek professional counsel.
The Learning Process About Money And Wealth
What did you learn about money? Where did you learn about money or wealth?
Let us touch on the issue of our basic educational institutions, the schools, where we learn about the facts of life.
What are the subjects covered in school?
Language, mathematics, science, history, social studies, religion, among others are all important for us to study to blend ourselves well with society.
Even in the collegiate level, depending on what course one chooses to take, lessons are concentrated on the theories, principles and/or basics which are hardly in consonance with the real world.
How do we learn new things?
Reading websites, attending seminars, and talking to people more knowledgeable on the subject are some of the ways. We also learn by making mistakes, like babies learning to walk.
It is like roller skating where we get bruises every time we fall. The message is: “Don’t let mistakes stop you from learning. Learn from those mistakes and let them encourage you to learn more.â€Â
Always bear in mind that education in school is only the fundamental foundation of general knowledge. Outside school , we must gather as much skills as possible especially those pertaining to creating wealth.
I firmly believe that one’s choice of endeavor must be anchored on love. Because when you love what you do, you will enjoy and take good care of it, not to mention the benefits it will bring to your health. With this in mind and in heart, you are following the dream of your life and you can use this principle in the choice of your business to gain wealth.
Loving is one thing. Knowing is another. Know your business. Know how to go about it. It is imperative that you acquire financial knowledge to gain wealth.
Today, information is wealth. Get to know what is going on around you. You will find opportunities to get rich from information that is current.
Time can be of the essence depending on the subject of the business. Knowledge on the business is vital; that is why learning is a non-stop process. You need not necessarily be familiar with a particular business, but you must learn to know the business before you get involved in it.
People who have actual experiences on a subject are the ones you can talk to in gathering information. Do not listen to hearsay or to those who neither know nor have any experience on the subject. Knowing is an asset; not knowing is a liability. That is why, information is wealth.
Exchange information regarding financial matters with your colleagues as frequently as possible. This is one way to acquire updated news.
On topics that are not clear or familiar to you, ask questions (rather than pretend you know when you don’t) and be generous to share what you know when asked. Opportunities are sometimes born spontaneously in discussions that are beneficial to either or both parties.
The risk factor is always there even if you know the business. This is inherent in every type of business. But risk can be managed and kept to a minimum if you have the proper knowledge.
Gathering information may be time consuming but time well spent. Sometimes, it takes more time to gather information than the business itself. Keep in mind though that timing (when to act) could be important in the business you are interested in.
How much you know is different from how fast you know. Remember the old saying: “The early bird catches the worm?â€Â
The first or earliest to know gets the opportunity. If you know of an opportunity that is not yet in the news, it’s good news. Stay focused. Keep a clear and keen mind. Just like the advice of a weather station: “Know before you go.†The same thing is true in business: “Know before you go (into action).â€Â
When in business, you must learn to manage the flow of money, your people, and your system. Get to know where the money you invest should be at any particular time so that you don’t get cash strapped in the middle of your transactions. Make sure your money flows smoothly to where it should be. Learn to manage your people. They work for you, so take good care of them and they will take good care of your business.
Systematize your work flow. This will cut wasted time, energy, and money as well. What you save is additional profit.
Keep in mind to leave some time for your out-of-business activities too, like family and social affairs. Like giving credit to where credit is due, give time to where time is due. Think of ways to do more in less time. This will increase your profit margin making you more competitive.
Most people find difficulty in marketing or selling products and / or services. It takes time and patience for your prospective clients to get acquainted with what you’re offering. Their most likely first reaction is to reject it. This is normal. With the right people negotiating and handling the marketing aspects of your business, you can surmount this difficulty and eventually come up with positive results.
Communication skill is very important. It is your eyes, ears, and mouth rolled into one. It is a friendly spy to keep you updated and more knowledgeable. Without it, you’ll be groping in the dark.
What did you learn about money? Where did you learn about money or wealth?
Let us touch on the issue of our basic educational institutions, the schools, where we learn about the facts of life.
What are the subjects covered in school?
Language, mathematics, science, history, social studies, religion, among others are all important for us to study to blend ourselves well with society.
Even in the collegiate level, depending on what course one chooses to take, lessons are concentrated on the theories, principles and/or basics which are hardly in consonance with the real world.
How do we learn new things?
Reading websites, attending seminars, and talking to people more knowledgeable on the subject are some of the ways. We also learn by making mistakes, like babies learning to walk.
It is like roller skating where we get bruises every time we fall. The message is: “Don’t let mistakes stop you from learning. Learn from those mistakes and let them encourage you to learn more.â€Â
Always bear in mind that education in school is only the fundamental foundation of general knowledge. Outside school , we must gather as much skills as possible especially those pertaining to creating wealth.
I firmly believe that one’s choice of endeavor must be anchored on love. Because when you love what you do, you will enjoy and take good care of it, not to mention the benefits it will bring to your health. With this in mind and in heart, you are following the dream of your life and you can use this principle in the choice of your business to gain wealth.
Loving is one thing. Knowing is another. Know your business. Know how to go about it. It is imperative that you acquire financial knowledge to gain wealth.
Today, information is wealth. Get to know what is going on around you. You will find opportunities to get rich from information that is current.
Time can be of the essence depending on the subject of the business. Knowledge on the business is vital; that is why learning is a non-stop process. You need not necessarily be familiar with a particular business, but you must learn to know the business before you get involved in it.
People who have actual experiences on a subject are the ones you can talk to in gathering information. Do not listen to hearsay or to those who neither know nor have any experience on the subject. Knowing is an asset; not knowing is a liability. That is why, information is wealth.
Exchange information regarding financial matters with your colleagues as frequently as possible. This is one way to acquire updated news.
On topics that are not clear or familiar to you, ask questions (rather than pretend you know when you don’t) and be generous to share what you know when asked. Opportunities are sometimes born spontaneously in discussions that are beneficial to either or both parties.
The risk factor is always there even if you know the business. This is inherent in every type of business. But risk can be managed and kept to a minimum if you have the proper knowledge.
Gathering information may be time consuming but time well spent. Sometimes, it takes more time to gather information than the business itself. Keep in mind though that timing (when to act) could be important in the business you are interested in.
How much you know is different from how fast you know. Remember the old saying: “The early bird catches the worm?â€Â
The first or earliest to know gets the opportunity. If you know of an opportunity that is not yet in the news, it’s good news. Stay focused. Keep a clear and keen mind. Just like the advice of a weather station: “Know before you go.†The same thing is true in business: “Know before you go (into action).â€Â
When in business, you must learn to manage the flow of money, your people, and your system. Get to know where the money you invest should be at any particular time so that you don’t get cash strapped in the middle of your transactions. Make sure your money flows smoothly to where it should be. Learn to manage your people. They work for you, so take good care of them and they will take good care of your business.
Systematize your work flow. This will cut wasted time, energy, and money as well. What you save is additional profit.
Keep in mind to leave some time for your out-of-business activities too, like family and social affairs. Like giving credit to where credit is due, give time to where time is due. Think of ways to do more in less time. This will increase your profit margin making you more competitive.
Most people find difficulty in marketing or selling products and / or services. It takes time and patience for your prospective clients to get acquainted with what you’re offering. Their most likely first reaction is to reject it. This is normal. With the right people negotiating and handling the marketing aspects of your business, you can surmount this difficulty and eventually come up with positive results.
Communication skill is very important. It is your eyes, ears, and mouth rolled into one. It is a friendly spy to keep you updated and more knowledgeable. Without it, you’ll be groping in the dark.
Quick Books and Finances
When starting a business one is bound to face a variety of difficulties. Sometimes it seems the problems of creating a new entity are endless. You must find a source for financing. Somebody will have to cut through the red tape and deal with legal issues to get the company off the ground. You can’t start a business without a strategic plan, therefore some time must be spent planning out the vision and objective of the company. A plan is useless without the right people in place to implement it, so it is also essential you hire the right people. As you can tell, the issues and concerns can be quite overwhelming. There is really no way around these issues. Each must be dealt with individually.
In the confusion created by all these issues and concerns, frequently one will forget about fundamentals of good business. That is to say, balancing the books and staying on top of your financial situation. Fortunately for the small businesses out there, great software such as Quick Books has been designed to make this aspect of running a business a breeze. The advantages of the Quick Books software are quite obvious to users of this software. For those of you who have never used the Quick Books software let’s take a look at what it has to offer for your small business.
Quick Books is a software package that assists you in managing your accounting and financial data. Quick Books streamlines the accounting and financial reporting process, allowing a small business to operate void of any financial specialist. In the past, a small business might be forced to recruit and hire an experienced finance professional to handle the books and keep the company in a good financial position. It was no easy task for a small business owner with a minimal financial background to keep the sources and uses of cash organized, up to date, and accurate. Indeed this proved to be a pressing concern for many small businesses that could not afford to hire financial experts nor had the expertise themselves to keep the books. Ultimately, these small business owners had to make do with the knowledge they had and the results were not always pretty.
Thanks to the Intuit team that developed Quick Books, small businesses can compete on a more level playing field with larger businesses that can afford to employ financial professionals by making use of the powerful software program. Like TurboTax has simplified the tax filing process for individuals, the Quick Books software has created a simple yet extremely useful interface to input and track your company’s finances. It doesn’t take any expertise to enter the data the software needs to crunch the numbers, balance the books, and spit out the financial reports.
If you have recently started your own business and are lacking expertise in the accounting/finance arena, check out the Quick Books software today. Chances are it will fulfill all your needs and eliminate many headaches. There are many other competitors to the Quick Books software package that may meet your needs as well, such as the PeachTree accounting software. Most likely any of these software packages will offer the features and capabilities you will need as your business expands.
When starting a business one is bound to face a variety of difficulties. Sometimes it seems the problems of creating a new entity are endless. You must find a source for financing. Somebody will have to cut through the red tape and deal with legal issues to get the company off the ground. You can’t start a business without a strategic plan, therefore some time must be spent planning out the vision and objective of the company. A plan is useless without the right people in place to implement it, so it is also essential you hire the right people. As you can tell, the issues and concerns can be quite overwhelming. There is really no way around these issues. Each must be dealt with individually.
In the confusion created by all these issues and concerns, frequently one will forget about fundamentals of good business. That is to say, balancing the books and staying on top of your financial situation. Fortunately for the small businesses out there, great software such as Quick Books has been designed to make this aspect of running a business a breeze. The advantages of the Quick Books software are quite obvious to users of this software. For those of you who have never used the Quick Books software let’s take a look at what it has to offer for your small business.
Quick Books is a software package that assists you in managing your accounting and financial data. Quick Books streamlines the accounting and financial reporting process, allowing a small business to operate void of any financial specialist. In the past, a small business might be forced to recruit and hire an experienced finance professional to handle the books and keep the company in a good financial position. It was no easy task for a small business owner with a minimal financial background to keep the sources and uses of cash organized, up to date, and accurate. Indeed this proved to be a pressing concern for many small businesses that could not afford to hire financial experts nor had the expertise themselves to keep the books. Ultimately, these small business owners had to make do with the knowledge they had and the results were not always pretty.
Thanks to the Intuit team that developed Quick Books, small businesses can compete on a more level playing field with larger businesses that can afford to employ financial professionals by making use of the powerful software program. Like TurboTax has simplified the tax filing process for individuals, the Quick Books software has created a simple yet extremely useful interface to input and track your company’s finances. It doesn’t take any expertise to enter the data the software needs to crunch the numbers, balance the books, and spit out the financial reports.
If you have recently started your own business and are lacking expertise in the accounting/finance arena, check out the Quick Books software today. Chances are it will fulfill all your needs and eliminate many headaches. There are many other competitors to the Quick Books software package that may meet your needs as well, such as the PeachTree accounting software. Most likely any of these software packages will offer the features and capabilities you will need as your business expands.