Archive for January, 2008
When you need a mortgage — either because you are buying, refinancing, taking out equity or getting into investment real estate, you need a good mortgage professional. Now, you may be tempted to go to your local savings and loan, as they may promise lower fees or zero costs. Meanwhile, in virtually every case, banks can’t compete with mortgage professionals on the two most important things — interest rates and service.
Also, the banker who promises very low closing costs will probably be making his money on a higher rate, and he’ll likely try to sell you on discounting that higher rate, by paying a percentage of the loan amount. This is a common tactic bank loan officers use, and it is a very poor strategy in almost every case for you to buy a rate.
Finally, bank loan officers can’t come close to the service of a good, honest mortgage professional. When dealing with a bank, you have to go to them, you have to close your loan where they tell you to close, you can only get your interest rate locked in when you’ve jumped through all of their hoops (mortgage professionals can lock your rate the day you call, over the telephone).
Mortgage professionals are in the service business. Unlike bankers, mortgage professionals need you, because they work strictly on commission. So, they will do everything possible to make you happy, because they want your referrals, and they want you to come back every time you do a loan.
Good Mortgage professionals will treat you like you are their only customer. They give you their personal cell phone numbers and tell you to call them anytime of day. They meet you anywhere – home, work, your favorite coffee shop or restaurant, or any other place you designate. They go the extra yard to close your loan.
I once helped an elderly gentleman, on a fixed income, who needed to get cash from his house, in order to fix a dilapidated roof. He had 14 liens against his home, which made nearly impossible to refinance. I worked for a month, getting all of these items cleared. I even dealt with a bank collector, and got him to take thousands less for an old debt, just so we could close the loan and the man could stop the rain from coming into his home. Almost every bank loan officer would have sent this man away, because they don’t want to do this much work.
So, remember, you need a mortgage professional, when getting any kind of home or refinance loan. Be sure you get the best.
Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com
Someone once said, ‘the best way to calculate your taxes isHonestly’. For 2005, add ‘Smartly’ to that and you’ll get to keep more than you make. This April 15th is going to be the day of reckoning for every taxpayer. If you are smart enough with your accounting and keep your eyes and ears open, this could be your favorite day of the year. Take full advantage of tax deductions due you and you can come back richer from the IRS office.
As a home business owner who has been keeping track of every dollar spent, you can make a killing on your tax deductions with these smart taxpayer tips.
- Jot it all down: keep a track of all your business expenses. Maintaining timely and accurate records is something you’ll thank yourself for, this April. You don’t necessarily need elaborate documentation to do this. An easy and a very cost effective way would be to keep all your expenses jotted down in a diary. It is a good idea to collect evidence as well (in case the IRS decides to do an audit later) like receipts, bills, and statements for cheque payments etc.
- Shop for your taxes: this financial year you will have a choice to either deduct your state income tax or your state sales tax. Do some math and compare the two to see which tax deduction is higher. Major purchases in the last financial year should be crosschecked to see in which category they yield a larger deduction.
- Itemize your deductions: Before you decide to settle down for standard deductions ($4,850 for singles and $9700 for married couples filing jointly), fill out Schedule A to see if your itemized deductions are larger than the standard deductions. You might be in for a surprise. Consider itemized deductions in areas like: Home ownership, charitable donations, Medical expenses and miscellaneous deductions. According to the IRS’s most recent numbers, those filers who itemized back in 2002 deducted an average of $19,673 from their taxes
- Go beyond the usual deductions: This year look beyond the good ol’ mortgage interest deduction to save some more. Consider medical and dental expenses, sales tax and personal property tax, education expense, damage cause by disaster or theft and miscellaneous expenses. Miscellaneous would include job search expenses, investment expenses like brokerage fees, safety deposit boxes and subscriptions to investment publications. Also included in miscellaneous is..Believe it or not expenses of filing your taxes! This is still not over: add depreciation on your computer and cell phones used for business purposes.
- Entertainment and meal expenses: nothis doesn’t include lunch with friend to swap Christmas part ideas. Establishing the business purpose of a meeting is crucial for deducting expenses on entertaining.
- Transport expenses: if you use your own car for getting about on business, you can claim deductions on that too. Take care to religiously note down details like mileage, tolls, parking fees and maintenance costs.
A good way of finding out what more you can use for maximising your deduction is to get tax preparation software.
A word of caution here: keep ‘creative deductions’ like kid’s allowance, silicone implant etc. out of the picture. It is rather difficult to outrun the IRS, as they have three years to decide they want to verify your records and can drop in for a surprise audit.
Maximise your tax deductions in 2005 with these tips and see all the cash flow back in into your business.
Also see:
http://money.cnn.com/2005/03/30/pf/saving/willis_tips
http://www.bankrate.com/brm/search/story-taxes.asp
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These real questions are answered by me and US Master Builders after receiving them from readers of my e-book, “Residential Development Made Easy.”
Question 1.
‘Design / Build,’ sometimes called ‘Design / Construct’ is a development process where the contractor (the builder) engages all the consultants for the project and submits a price for the design and construction of the project to the developer
meeting the developer’s requirements as far as aesthetics and space requirements.
The builder, if awarded the project, goes ahead and builds the project without the developer having to deal with any consultant. This generally saves the developer the hassle of going through various tender exercises. Can you elaborate further on this issue please?
Master Builders & Developer’s Reply:
Essentially what you have said above is correct, however as with most things in life, there is a “BUT” involved.
“But” – not all builders can provide ‘Design / Build services.
Just because a builder can build a house, does not mean he can design one or supervise the design of one. Remember, in the
pecking order of seniority in the industry, the designer architect usually ‘tells’ the builderwhat to do. ‘Design / Build reverses these roles.
Builders are usually practical people – they get things done – and like to complain about the fancy ideas of designers. However it is the fancy ideas that distinguish your house for the one next door and makes it work better and sell better.
Now lets go up a few rungs on the builder expertise ladder to the Master Builders level. Well as with all human endeavors, there are different levels of expertise.
Design / Build is basically what I do at USA Master Builders.com (formally ProCustomHomes.com) except we have taken the process several steps further.
We call our Design / Build teams, “Residential Development Teams.” Where we go further than other Master Builders is as follows:
* We do the basic market research for you.
* We create demand for the properties.
* We locate the buyers.
* We provide financing and insurance.
* We locate a developer who develops properties in a specific price range we’ve specified.
Question 2.
Will the builder be able to work out a package with me where I provide the initial concept and schematic design whist the builder provides all the working details and specifications to
come to an agreed fixed price plus agreed profit?
Master Builders & Developer’s Reply:
Depending upon the Master Builder you choose they should be able to do this for you. Let me walk you through how we work with developers.
Let’s say that you’ve done your home work.
Know what property you want to build.
Know how much you want to budget for each property. (If not, we can assist)
I want you to tell me:
1) Fair Market Value $X
2) Appraised Value $X
3) Cost of each lot $X
4) How much you have budget for each property.
5) If you have floor plan that would be good. If not, we would help you with that. You would tell us what you have budgeted for each unit and ask us if we can build for that? We review the information, discuss details with you and give you a quote.
When we provide you with a final quote it is all inclusive.
It includes everything we can control. Included are the:
*Certified architect blueprints,
*Structural engineering reports,
*Cost for building the property,
*Providing financing for those who will be purchasing the property,
*Insurance for those purchasing the property,
*Realtors trained to sell and create a demand for your properties.
In addition, to the above we would provide you with a 100% Money Back Guarantee which simply stated, “If you don’t like the property once it is completed you don’t have to buy it.”
We insist that you hire the property inspector of your choice to inspect the property BEFORE you take possession of it. We also provide you with daily video updates on the project so you
have video documentation of the progress of your property.
Unlike a lot of builders we think “long term” not short term. We understand that we make our money building and you make your money selling at retail. If we want more business from you
it’s important to help to ensure your profitability as much as possible.
Question 3.
What kind of warranties do Master builders offer?
Master Builders & Developer’s Reply:
Depends upon the property and place. Some areas require warranty on plumbing, gas lines, etc
We provide all standard warranties in each area. In addition our structural warranty is 20 years instead of five or ten that local builders offer. Our roofs are 20 years. And, we have a 100% Money Back Guarantee to ensure you’re not stuck with a lemon.
Oh yes, one last point that does not really come under warranties, but it does give peace of mind to out clients. Every part of the house we build for you is computerized for you.
So What?
Well let’s say, in 4 years or 10 years, you have a window badly damaged, a door, a kitchen bench – whatever – think about what you would have to do to get it fixed. Well with us, you just phone or email – tell us which part you want replaced, it’s exact location, and we’ll have the exact part, in the right size, in the right material sent to you, after you have approved
the pricing.
So you see that the “BUT” I mentioned above covers a lot that is within the term ‘Design / Build.’
Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling Teaching ‘How-To’ E-book,
“Residential Development Made Easy,” With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries. His Independent Web Site is:
http://www.realestatedevelopmentcoach.com/ez
Most great generals know how to design winning battle plans. They also know how to use their resources to gain advantages over the enemy. For these military leaders, getting enough tanks, aircraft, ships and armaments into the hands of the right personnel can spell military victory or defeat.
In the business arena, gaining access to certain resources and getting them into able hands can also determine success. Many successful business leaders have discovered that equipment leasing can make a significant difference when competing in the marketplace. In fact, equipment leasing has become a competitive weapon for business managers who understand how and when to use this helpful financing tool.
Here are some ways savvy business owners and managers use equipment leasing to gain advantage over their competitors:
Developing a Financing War Chest
Equipment leasing allows companies to finance more activities to compete effectively. It supplements other forms of financing, such as equity capital, bank debt, trade credit and mortgage financing. Astute business managers understand that access to a variety of useful financing affords them certain options and gives them an advantage over competitors with limited financing.
Maintaining State-of-the-Art Technology
Being able to acquire and use state-of-the-art equipment and software can give many companies a noticeable competitive advantage. This advantage can be particularly significant in research, product development, marketing and operations. By using equipment leasing, companies are able to better manage technology turnover. Many managers use operating leases to acquire state-of-the-art equipment for fixed time periods. At lease end, they are then able to rid themselves of obsolete equipment by returning the equipment to the lessors.
Stretching Equity Capital
Equity capital is often the most flexible form of business funding. It allows companies to undertake high-impact growth activities like adding key personnel, conducting research and development, and expanding marketing programs. Equipment leasing is dedicated financing. It permits companies to add equipment efficiently. In this context, equipment leasing helps to leverage and stretch a company’s equity capital by freeing it up for other uses. When used properly, the overall impact of equipment leasing is to leverage equity returns. High equity returns attract investors and permit companies to source more equity capital in the future.
Equipping Talented People to Engage In Battle
Using leasing to get the best software and hardware into the hands of talented personnel is a competitive advantage. Companies that quickly get equipment into the hands of talented workers at every level usually compete more effectively in the marketplace.
Accelerating Company Growth
Equipment leasing facilitates faster company growth. It allows companies to add infrastructure faster by bringing in equipment earlier and paying over time. In this regard, leasing affords a competitive advantage over companies that wait to purchase equipment outright.
Defending Working Capital
Astute business managers have discovered how to keep pressure off of their companies’ working capital. Compared to outright purchase, equipment leasing has a low impact on working capital. Leasing allows companies to avoid large upfront outlays while spreading equipment acquisition costs over an extended period. Using equipment leasing to manage working capital permits companies to pay bills on time and to operate smoothly. They are then able to gain a competitive advantage over companies that have not mastered this technique.
Maximizing Tax Benefits
Sophisticated companies are able to maximize tax benefits by carefully using equipment lease structures. By entering into operating leases and being able to fully deduct lease payments, companies that can’t otherwise use depreciation write-offs can still realize tax benefits. Capital leases allow companies that can use depreciation write-offs to take advantage of this feature. Tax benefits further reduce the cost of acquiring equipment. These benefits can often make equipment leasing a more efficient means of acquiring equipment compared to other methods.
Turbo-Charging Equipment Sales
For companies selling equipment, offering equipment leasing to customers at the point of sale can help establish a significant competitive advantage. Convenient equipment financing at the point of sale can eliminate a major selling challenge the customer’s lack of financing for the purchase. Equipment sellers offering leasing give their customers a means of acquiring the equipment and realizing the full benefits of equipment leasing. This sales-financing strategy represents a clear advantage over sellers who let customers fend for themselves.
Savvy business owners and managers understand the benefits of equipment leasing. They also understand how to exploit leasing for competitive advantage. The challenge for them is to optimize leasing to realize the biggest gains and to compete more effectively. It is no wonder that equipment leasing in the U.S. has grown to over $ 240 billion annually and accounts for more than 30% of equipment acquisitions. Consider equipment leasing when designing your battle plans. Don’t allow your competitors to use leasing against you to win the battle in your market.
George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”). He is responsible for overseeing the company’s marketing and financing efforts. One of the co-founders of LTI, Mr. Parker has been involved in secured lending and equipment financing for over twenty years. Mr. Parker is an industry leader, frequent panelist and author of several articles pertaining to equipment financing.
Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in direct equipment financing and vendor leasing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at http://www.ltileasing.com.