Monthly Archives: September 2018

What You Need to Know About Financing

Securing real estate financing form a lending institution is never easy. The economic downturn has made it even more difficult. If you are a first-time borrower the lender will not be willing to provide you a loan unless he is thoroughly satisfied about your credit worthiness. There are some steps that you might take before applying for a financing in order to secure the loan.

First of all you must know what the lender is looking for in a potential borrower. Your credit rating is the most important factor in this regard. The lender also calculates your net income and the current debt burden after which he arrives at the conclusion whether it is feasible for you to service the debt with ease. The local laws of the area in which you are settled, are also taken into account.

The rule regarding credit rating is simple in case of real estate or any other financing: the higher your rating, the more chance of you getting a financing from lenders. Your rating reflects you ability to service the debt as well as your level of integrity.

In case of commercial real estate financing, you need to convince the lenders that what you are offering them is a good secure deal. The financier will need to know that you business will generate enough cash flow to pay for monthly rentals. The plan must state clearly how much profit you are going to make and will it be enough to cover the costs and pay the monthly rentals. All the expense must be taken into account before arriving at the profit figure.

The three rules regarding real estate are very simple: location, location and location. The actual placement of the property is a deciding factor which determines whether you get a loan or get rejected. If you are applying for financing of a deserted piece of real estate, you are in for trouble.

One of the main purposes of the lender is to cover his risk from every possible aspect. Naturally he will be looking at different scenarios in which you might default. Consequently, he will lose his money as well. In order to minimize his risk he will take into consideration the current market trends. If the future of your proposed business is doubtful, you might not get loan.

Choose your loan officer very carefully since he is the person who can make your application go smoothly or cause u headaches. If an acquaintance knows and has worked with a loan officer in the past, ask for an introduction.

The loan officer asks some weird questions that might not seem connected to the real estate financing application, but rest assured. The lender needs to be satisfied about every aspect of your financial standing before he approves your financing facility.

Some of the typical questions asked by lenders are as follows. It will be very be very useful if you are already prepared for them before applying for real estate financing:

  1. The amount of income currently being generated by the property. The lender will need to see the income statements
  2. The lender will ask for an appraisal of the property by an approved appraiser
  3. The lender will definitely want to know how you plan to use the property. If you want to make amendments in the property, you should tell them now.

You must keep in mind that the lender is exploring every possible situation that might lead to your default in the future. Whether you need financing for your home or office, the real estate investing project must be undertaken with careful planning and necessary homework.

Quick Tips for Teaching Your Child About Finance

Kids learn quickly and achieve significant results when their five senses are stimulated. In this article there are five simple tips parents can use to teach their children about money while stimulating all five senses. Using all five senses will motivate children with increasing their awareness about the power of money working for them instead of against them.

Finance Tip #1: Monitor Your Feelings about Shopping- Shopping with a purpose (spending plan) will always save your family money. Shopping while feeling stressed or anxious often seduce families toward overspending and produce debt. Choose to experience feelings of patience, fun, and self-control before shopping.

Finance Tip #2 Visit Your Local Bank- Maximize your child’s visual learning about the banking system by visiting your local bank. Improve your child’s vision for saving more and spending less, by opening a savings account with the money they received from birthdays, kids business or allowance.

Finance Tip#3 Volunteer with Your Children- Spend an hour volunteering with your children by helping others who are less fortunate. Stimulate your child’s sense of hearing by speaking to them softly about donating a $1 or more of their birthday money, kids business or allowance to help seniors, abused children, animals or feeding the homeless.

Finance Tip #4 Have Fun- Introduce new ideas and games like “Guess that Smell.” Have your children close their eyes for thirty seconds to guess the smell of the mystery foods you have already prepared for them to eat. For each correct answer allow your children to earn twenty five cent toward the investment of their first penny stock. Pack a variety of foods with different odors; such as oranges, pineapples, strawberries, something with a little cinnamon, a little garlic and of course chocolate.

What You Need to Know About Financing

The majority of new car purchases are financed. Before heading to the auto dealer and signing the contract there are a few things you should know. Even though you can obtain financing from the auto dealer, you may have other options which offer better financing.

Car buying tips:

First off, remember that car salespeople are there to do exactly that – sell cars. Chances are if the car is there today, it will be there tomorrow. And, purchasing an auto is a big purchase.

Remember that you can negotiate, as the sticker price is typically not the actual price of the car. It is common for the dealerships to mark up the sticker price on the vehicle before placing it on the lot. If the auto dealer wants to sell the vehicle he typically expects to have to negotiate. Do not be over enthused about the vehicle. This will give you the disadvantage. Try to maintain a calm demeanor as not to give the salesperson any sort of read.

Zero down, zero interest and zero payments for “x” amount of time. Be very weary of so called deals like this. While they are attractive in the long run the buyer pays an above-average interest rate and larger payment. You may be off the hook from making payments for “x” amount of time, but when the payments do begin, the car dealership is making up for not lost interest and profiting once again.

Even though a car dealer will have on-site car financing, this doesn’t necessarily make it your best option. If you have above-average credit, then likely you will qualify for their wonderful financing. However, most people will not. It is recommended you speak with your bank or financial adviser to see what financing they offer and if it is more beneficial than that offered by the dealer.

It can be quite tiringĀ purchasing a new carĀ as you often have to work with many sales staff. First you have your salesperson. Then they include their manager at the table. Then the manager brings the finance department in. By this time, you are likely exhausted. And, this is the time to be especially aware of hidden extras that have been calculated onto the final bill. It is typical that extras like tinted windows and rust protection are added to the vehicle cost. Make sure to mark off any of these “hidden” extras.

There are many car buying tips to be aware of. One of the most important however, is not to act irrationally and to check with your bank previous to shopping for the vehicles.

Q and A About Finance Jobs

Planning to get into the finance industry? Well there is a lot you will want to know about the much hyped industry before you actually join in. It is indeed one of the most popular career choices today and finance careers are indeed looked upon as golden careers. Finance jobs today pay the best salaries in the job industry and you should stop worrying about the recession coz it is almost over. The finance industry has almost completely recovered from the recession and is back to making a steady progress. Fresh investment is flowing in and finance seems to be thriving like the good old times.

There are many avenues to finance jobs today. Government finance jobs promise you job security and are still a popular preference for many. In fact there are many government institutions which have a good intake for finance jobs. Except for government banks and financial institutions almost every government office does need a finance department.

Now if you are really ambitious and have huge set goals for the future the private sector is where you must concentrate. It’s not that one cannot develop in a government organization but there are many limitations to this growth which are absent in the private sector. There is a huge requirement for corporate finance jobs owing to the big scale corporatization of the business industry. Be it multinational companies or small local companies almost every organization is heading towards corporatization which again is a great advantage for finance aspirants.

Now how to begin a career in finance? The first thing you need is a strong educational background. Make sure you do your academics well and score the best of grades coz these are the only things which will help you in the initial years in finance. You firstly need to graduate from a reputed college for which you will need excellent high school grades. If you are still in high school this is the right time. Start getting serious about your education today itself.

After this you will need to get into one of the best finance internships available. Internships are one of the best ways to learn more about the finance industry. On the job training at an internship will groom the finance professional in you. You will also get a chance to interact with some of the big guns in the finance industry this way. It helps with developing a network in your industry which is very essential to grow high. This network not only helps you with job opportunities in finance but also ensures that your work moves on smoothly no matter where you are.

After the internship you should get into an entry level finance job. It is very essential that you give your 100% in these jobs as the competition is humongous and to leave an impression you have to prove your worth. Do not dream of reaching the skies in a day rather work to achieve your ambitions in a slow and steady way.