Cashflow Blog

By Brian Garvin

A Commercial Hard Money Loan isn’t for everyone. But it could be a viable solution for someone that can’t get an everyday traditional Real Estate Loan. Of course with this type of loan Real Estate is always the collateral, with no exceptions. If for some reason the buyer defaults on the payments, the bank can repossess the property in due course of course, no pun intended.

The basic inference of the various types of Commercial Loans can also be defined as Sub-Prime Lending, Near Prime, B-Paper or Second Chance lending options.

So seriously would someone take out a Commercial Hard Money Loan verses a standard Commercial Loan? It’s because there are determining factors such as Slight Credit Score, Enterprise Stability, proven absolute Income Level that would curb someone from getting traditional money financing or custom rates, so the defaulter in these cases will compromise for what they can get.

Some companies have a lowest amount they will lend you when helping you get a Commercial Hard Money Loan. The companies we have researched start out at $300,000 and go up into the millions for Commercial Real Estate Properties.

There are also what they call Mezzanine Loans which is a loan that’s paid back behind the sale or refinance of the Commercial Property. It’s possible for a lender to secure a portion of the proceeds upon sale of the Hard Loan debt. These loans tend to have suitable structures such as good debt and equity ratios.

There’s also a Financial Loan called a Hard Money Bridge Loan. These types of Money Financing solutions are usually temporary until a more permanent solution comes into play. These are used when time is of the essense, when a business move needs to be made quickly to acquire a property. There are no upper limits on this type of loan, and the qualification requirements usually remain the same.

There are also Hard Money Construction Loans, which is another distinctive Money Financing option that can be applied to for limited home projects to larger Commercial Property projects such as the development of a strip mall or tract home development project. In most cases for construction projects there is a reserve account setup to make sure that money is allocated properly as the project keeps moving forward.

A Commercial Hard Money Loan is typically used in both Urban & Suburban areas. The current Prime Rates are from 11 - 16% verses the 6-7% for a standard loan. Usually all associated Points & Fees are included in the loan and payments from these are dispursed upon closing the loan. Also note these are Short Term Real Estate Loans that are usually given from 1-3 years.

It is always comforting to know that there is big money available to you when you need it in the form of a Commercial Hard Money Loan. This article went over the main types of loans and how they can benefit you. However beware of the common Predatory Lenders that lurk in this industry. Expect to pay 11-17% for a Real Estate Loan like this. If you are asked to pay anymore more, imho you are being taken to the cleaners. So before you jump into anything like this, just do your research and you should come out okay.

Let Brian Garvin & Jeff West teach you More about [http://www.commercialrealestateloansnow.com]Commercial Real Estate Loans and learn more about the [http://www.commercialrealestateloansnow.com/commercial-hard-money-loan.html]Commercial Hard Money Loan today. You can always call us for Free Real Estate Advice as we have a lot of resources to help you find what you need, with no obligation.

Read more:
Commercial Hard Money Loan - An Honest Review

Let’s face it; we all don’t make millions of dollars a year, and the odds are that most of us won’t receive a large windfall inheritance either. However, that doesn’t mean that we can’t build sizeable wealth - it’ll just take some time. If you’re young, time is on your side and retiring a millionaire is achievable. Read on for some tips on how to increase your savings and work toward this goal.

Stop Senseless Spending
Unfortunately, people have a habit of spending their hard-earned cash on goods and services that they don’t need. Even relatively small expenses, such as indulging in a gourmet coffee from a premium coffee shop every morning, can really add up - and decrease the amount of money you can save. Larger expenses on luxury items also prevent many people from putting money into savings each month.

That said, it’s important to realize that it’s usually not just one item or one habit that must be cut out in order to accumulate sizable wealth (although it may be). Usually, in order to become wealthy one must adopt a disciplined lifestyle and budget. This means that people who are looking to build their nest eggs need to make sacrifices somewhere - this may mean eating out less frequently, using public transportation to get to work and/or cutting back on extra, unnecessary expenses.

This doesn’t mean that you shouldn’t go out and have fun, but you should try to do things in moderation - and set a budget if you hope to save money. Fortunately, particularly if you start saving young, saving up a sizeable nest egg only requires a few minor (and relatively painless) adjustments to your spending habits.

Fund Retirement Plans ASAP
When individuals earn money, their first responsibility is to pay current expenses such as the rent or mortgage expenses, food and other necessities. Once these expenses have been covered, the next step should be to fund a retirement plan or some other tax-advantaged vehicle.

Unfortunately, retirement planning is an afterthought for many young people. Here’s why it shouldn’t be: funding a 401(k) and/or a IRA early on in life means you can contribute less money overall and actually end up with significantly more in the end than someone who put in much more money but started later.

How much difference will funding a vehicle such as a Roth IRA early on in life make?

If you’re 23 years old and deposit $3,000 per year (that’s only $250 each month!) in a Roth IRA earning and 8% average annual return, you will have saved $985,749 by the time you are 65 years old due to the power of compounding. If you make a few extra contributions, it’s clear that a $1 million goal is well within reach. Also keep in mind that this is mostly interest - your $3,000 contributions only add up to $126,000.

Now, suppose that you wait an additional 10 years to start contributing. You have a better job and you know you’ve lost some time, so you contribute $5,000 per year. You get the same 8% return and you aim to retire at 65. When you reach age 65, you will have saved $724,753. That’s still a sizeable fund, but you had to contribute $160,000 just to get there - and it’s no where near the $985,749 you could’ve had for paying much less.

Improve Tax Awareness
Sometimes, individuals think that doing their own taxes will save them money. In some cases, they might be right. However, in other cases it may actually end up costing them money because they fail to take advantage of the many deductions available to them.

Try to become more educated as far as what types of items are deductible. You should also understand when it makes sense to move away from the standard deduction and start itemizing your return.

However, if you’re not willing or able to become very well educated filing your own income tax, it may actually pay to hire some help, particularly if you are self employed, own a business or have other circumstances that complicate your tax return.

Renting Versus Buying
At some point in our lives, many of us rent a home or an apartment because we cannot afford to purchase a home, or because we aren’t sure where we want to live for the longer term. And that’s fine. However, renting is often not a good long-term investment because buying a home is a good way to build equity.

Unless you intend to move in a short period of time, it generally makes sense to consider putting a down payment on a home. (At least you would likely build up some equity over time and the foundation for a nest egg.)
Buying Expensive Cars
There’s nothing wrong with purchasing a luxury vehicle. However, individuals who spend an inordinate amount of their incomes on a vehicle are doing themselves a disservice - especially since this asset depreciates in value so rapidly.

How rapidly does a car depreciate?

Obviously, this depends on the make, model, year and demand for the vehicle, but a general rule is that a new car loses 15-20% of its value per year. So, a two-year old car will be worth 80-85% of its purchase price; a three-year old car will be worth 80-85% of its two-year-old value.

In short, especially when you are young, consider buying something practical and dependable that has low monthly payments - or that you can pay for in cash. In the long run, this will mean you’ll have more money to put toward your savings - an asset that will appreciate, rather than depreciate like your car.

Don’t Sell Yourself Short
Some individuals are extremely loyal to their employers and will stay with them for years without seeing their incomes take a jump. This can be a mistake, as increasing your income is an excellent way to boost your rate of saving.

Always keep your eye out for other opportunities and try not to sell yourself short. Work hard and find an employer who will compensate you for your work ethic, skills and experience.

Bottom Line
You don’t have to win the lottery to see seven figures in your bank account. For most people, the only way to achieve this is to save it. You don’t have to live like a pauper to build an adequate nest egg and retire comfortably. If you start early, spend wisely and save diligently, your million-dollar dreams are well within reach.

Glenn Curtis started his career as an equity analyst at Cantone Research, a New Jersey-based regional brokerage firm. He has since worked as an equity analyst and a financial writer at a number of print/web publications and brokerage firms including Registered Representative Magazine, Advanced Trading Magazine, Worldlyinvestor.com, RealMoney.com, TheStreet.com and Prudential Securities. Curtis has also held Series 6,7,24 and 63 securities licenses.

See the original post here:
Getting A Millionaire?s Mindset

By Gaston Castro

In the modern world, there are many ways for a person to get the money they need to run a small business. This is true regardless of whether they are looking for start up money or expansion money. For a person that is looking for expansion money however, the options are plentiful by comparison and include two flagship deals known as the business loan and the business cash advance. There is a lot of debate as to which one is better, so here is a close comparison between the two in some key areas. Read the facts and then make up your own mind.

Requirements

The requirements for a particular deal are important because they govern how many businesses are actually eligible. For a business loan, you need to have a good credit rating and a history of good repayment. Having a good relationship with a bank or credit union is also a plus and in many cases willingness to accept terms that includes higher interest rates or higher collateral is also something that can assist you in getting a loan. For this reason, business loan requirements tend to shift wildly with market conditions.

Business cash advances on the other hand are not really tied to the market fluctuations. In order to get a business cash advance, you generally need to have a proven track record when it comes to the actual prosecuting of your business, while at the same time processing a minimum amount of sales in cash value through credit card transactions. If you have these requirements down, then you can generally get a business cash advance regardless of what other circumstances might be surrounding your need for the money.

Amount

Amount is difficult to comment on simply because there is so much individual variation within the market. In general however, a business loan of average size to an average borrower might be between $50,000 and $200,000 in size, with the middle point in terms of volume being somewhere around the $100,000 range. With a business cash advance on the other hand, much larger amounts are possible. There have been many business cash advances issued to smaller businesses that have exceeded $300,000 in size.

Repayment

For a business loan, repayment is very strict. You actually are shown something called an amortization schedule beforehand which actually works out the amount of interest and principle that you will be paying back as time goes on. For most deals, you can not deviate from this payment schedule and falling a few payments behind can result in very bad things for your credit rating.

For business cash advances, the amount of money that you repay is tied to the credit card revenue that your company generates. This revenue essentially goes directly from your credit card generation to the institution that did the cash advance. Your other cash flows are left completely out of the equation. This is perhaps the main practical point of difference between a business loan and a business cash advance.

Gaston C. writes articles about [http://www.cashprior.com/business_loans.php]Business Loans and [http://www.cashprior.com/small_business_loans.php]Small Business Loans for Merchant Resources International

Original post:
Business Loans Vs Business Cash Advances

A sample cash flow statement will improve your cash flow management skills. A clear and comprehensive sample will allow you to easily create and understand your business’s cash flow statement.

See more here:
Jul 23, Sample Cash Flow Statement

Are you using a proven cash flow template to develop your company’s cash flow projections? Be a better manager by really understanding how to forecast your cash gains and losses.

Read the original here:
Jul 23, Cash Flow Template Uses Proven Methods