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October 18, 2017

ALL ABOUT OWNER FINANCING

property financeYou and your family have made the decision to move out of your house and sell it. Or, perhaps you are wanting to sell an office building or a piece of vacant land. Most people think that there are only two ways that a potential buyer could pay for that property. Either the buyer has to have a load of cash or they must be able to get a loan from their friendly, neighborhood bank (or a less friendly mega-bank, but that is a discussion for another time).

What is Owner Financing?

A third way of selling a property – one which has been used for centuries – is to offer owner financing. You could use owner financing to sell a used car, an appliance, or just about anything else of value, but using owner financing for real estate is the safest and most profitable way to do it. So, what is it? Owner financing means that you are acting in some ways like a small bank, albeit a nicer and easier-to- work-with bank. When selling the property, you receive a down payment from the buyer and set up a real estate note stating the interest rate, term, and monthly payments.

Let’s try an example in which you are wanting to sell a house valued at $100,000. You and Betty Buyer agree that she will give you a $10,000 down payment and make payments to you on the first of every month at an interest rate of 6% and a loan term of 30 years. An attorney or title company would normally prepare the needed documents, including the real estate note, a deed of trust (or mortgage, in some states), and a title commitment. Each side signs in the appropriate places, the deed of trust or mortgage is recorded with the county, and you are done.

Advantages of Owner Financing

  1. There are a number of positives from offering owner financing, which include:
    Can be completed much more quickly than with a bank loan, and you have the flexibility to set up the note however you want, subject to state and national laws.
  2. The pool of potential buyers becomes much larger. They may be good credit risks but perhaps do not qualify for a bank loan.
  3. More income for you since you are recovering the original profit plus interest from the note.
    4. It helps the buyer to purchase a property that they probably could not have otherwise have bought.

When Not to use Owner Financing

  • Of course, owner financing is not appropriate for any of the following situations:
    You, as the property owner, still owe a lot of money on the property to a bank or other financial entity.
  • You need all of the cash from the property right away.
  • You need the cash from the incoming payments to survive. If the payer ever defaults, you may need to pay for a foreclosure and go without the note income for several months.

What’s Next

You successfully sold the house to Betty Buyer and all of the documents were properly created and signed. The hard work is done, so you can mostly wait for the monthly payments to come in. However, at least once per year, you will want to make sure that the property has adequate fire insurance (with you as the primary beneficiary), that property taxes are kept current, and that the property is kept in good condition.

If, down the road, you decide that you need some cash out of the note right away, you can contact a note buyer. Good note buyers will explain that you can sell all of the note or just some of the payments, how the process works, and when you can expect to receive funds.

There are a lot of note buyers out there, with varying levels of expertise and integrity. Be sure to work with a real estate note buyer with whom you feel comfortable, that is a licensed real estate broker, and that has a high rating from the Better Business Bureau or a comparable entity.

Alan Noblitt is the owner of Seascape Capital Inc., which buys real estate notes and business notes. He may be reached at (858) 672-4678 or toll-free at 1-800-634-4697. If you would like to learn more about real estate notes and read informational articles, visit www.seascapecapital.com.

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September 4, 2017

Loan Types to Consider if You Own a Small Business

offering business loansSmall business owners are earning increasing visibility in Western society, and are increasingly applauded for their courage in setting off on their own. Founders pour their hearts and souls into both startups and other types of small businesses, and for many people their lives revolve around their company. But even once your small business is off the ground, you’ll likely need to take out loans of some type to cover expenses and to help you expand your company. Read on for some basics on the different types of loans that you could take out, depending on your business’ specific needs.

Business Line of Credit

A business line of credit offers you readily available cash whenever you need it for your business. Like a line of credit for a credit card, there is a fixed maximum, but you only pay interest on the amount of money that you actually use. Also as with a credit card, funds are there for your business when you need them, even if what you really need is physical cash.

Different lenders will have different terms with your business line of credit, but some may require that you routinely pay off the entire amount. Even if your specific line of credit only requires you to pay interest, it is always a good idea to pay off portions of the principal as regularly as possible.

Business Credit Cards

Business credit cards are very similar to the personal credit cards that you already have open. Unlike a business line of credit, withdrawing cash from a business credit card typically incurs high fees, but there are other benefits to business credit cards. Depending on the specific card, you can earn cash back bonuses or “points” on various purchases, which may help you cut costs in the future. You can also build your business’ credit, even if you already have the capital you need, by making relatively small purchases on your business credit card and paying them off quickly.

Term Loans

Small businesses can apply for term loans, which would give you a lump sum of money that must be repaid within an agreed-upon amount of time. Term loans do also accrue interest, which typically must be paid back monthly. Term loans may be repayable in extremely variable time periods, from several months to several years. These loans are best for business that are looking to make big purchases or investments, but need a one-time financial boost in order to do so.

Equipment Loans

If your business needs to purchase new equipment or machinery (including computers, printers, or other industry-specific needs), equipment loans may be the way to go. These are especially beneficial when a business has no other costs that require a loan, except for the equipment costs. Equipment loans are typically made for the exact amount of the desired equipment, and may sometimes be kept for the entire lifespan of the equipment. As with all loans, equipment loans will accrue interest, which will need to be paid back regularly.

In addition to these more standard loan types, there are also some less traditional loans, such as competitive loans offered to small businesses by online companies such as LendGenius. To learn more about these non-traditional finance options, and the potential benefits for your business, visit their website.

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August 21, 2017

Money Making Tips for Stay-at-Home Moms

home mom moneyWhen you’re a parent, expensive situations can come out of nowhere! Whether it’s an unexpected medical bill, an important field trip, school supplies, or a seemingly endless supply of diapers, sometimes there’s simply not enough money to cover everything. As a stay-at-home mom, the pressure of financial strain might make you feel as if you have to go straight back into full-time employment, but that’s not always the case. In this article, we’ll discuss some of the ways you can add to the household coffers.

Online surveys

One of the most straightforward ways of making a little extra additional cash is to complete online surveys. Although payouts per survey aren’t huge, over time, consistent survey completion can yield a tidy sum.

Get paid when you shop online

Believe it or not, there are companies that pay you to shop online! Using affiliate links to your favorite stores, you can earn money every time you make a transaction. A percentage of your purchase will be paid back to you; usually you will need to hit a milestone (generally in $5 or $10 increments), and payouts are given as store vouchers or PayPal credits. A convenient way to earn whilst enjoying a little retail therapy!

Transcription

If you have a decent typing speed, reliable internet access, and a good pair of headphones, you could make money from transcription! Online platforms connect freelance transcriptionists with companies looking to have usually short excerpts transcribed. It’s important to note that payments are usually made per hour of audio transcribed, rather the time it takes you to complete the task, so only go into transcription if you can type fast enough to make the task worthwhile. However, if you have the skills, it’s a great way to bring home some extra cash!

Sell old stuff online

Do you have old clothes, shoes, accessories, toys, or gym equipment lying around the house, never used? It’s time to let them go, and earn some money while you’re at it! Selling platforms such as eBay make it straightforward to unburden yourself from the things that are taking up precious room. Simply snap some photos, add a dazzling description, then wait for the bidders to snap up your items.

Start an Etsy store

If you have a creative flair and wish to sell your own products, it’s easy to set up a store on Etsy. Advertise your store across your existing social media, involve friends and family, and create a buzz around your designs. With good word-of-mouth and online reviews, you’ll be making money in no time!

Childminding

If you enjoy looking after children, consider setting up your own childminding business. This may involve gaining some additional qualifications, but your investment can return a significant income once you get going. It will also allow you to keep spending time with your own children while you work.

Cash loans

We all experience times when money is tight; sometimes the best way to go about resolving a temporary cash flow problem is to take out a cash loan. It’s now more straightforward than ever to take out online loans, so do not be afraid to consider it as a solution to your money worries.

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August 20, 2017

5 Advantages of Choosing Term Insurance Online

life needs insuranceThe Internet has revolutionized modern lifestyles. You may use various online facilities like booking cabs, flights, movie tickets, and grocery shopping. Several individuals also find their life partners online.

The primary reason for the increasing popularity of the Internet is its convenience. This same convenience is also available if you choose to avail of an insurance policy online. Here are five advantages of opting for insurance policies online.

1. Lower costs

When you avail of a term insurance plan online, you eliminate the need for agents and brokers. This reduces the expense for the insurance company. In addition, the entire online procedure is paperless, which further reduces the cost for the insurer. These costs savings are beneficial in reducing the premium you pay for purchasing the insurance plan.

2. Informed decisions

Online platforms allow you to compare different types of life insurance policies offered by various insurers. You may compare the terms and conditions, premium amount, and other features of the policies. Furthermore, you may refer to the reviews and comments given by past users. This allows you to make an informed decision while acquiring insurance coverage.

3. Automated services

An online platform not only expedites the process but also enables efficient and quick servicing. You may easily download product brochures, procure estimates from various insurance companies, pay the renewal premiums, and track your payments online. This ensures you do not have to depend on anybody and the entire procedure is quick and hassle-free.

4. Efficient online assistance

Most insurance companies offer live chat assistance to help you understand more about the different policies. You may also call their helpline numbers to resolve your queries and clarify all your doubts. Once you have made your decision, you may either choose to complete the procedure online or request a meeting. The insurance company will send a representative to help you complete the procedure.

5. Customization

These days, several insurance companies offer customized products to suit the distinct requirements of individual buyers. When you opt to apply for a term plan online, you may compare different offerings and choose the plan that suits your preferences. You may also pay the premium online on a monthly, quarterly, bi-annually, or an annual basis as per your financial situation.

Availing of an insurance policy online is a cost-efficient and quick option. Insurance companies understand the benefits of this distribution channel and offer special products covering different types of insurance policies. By opting for the online platform, you may avail of the best term insurance plan in India from the comfort of your home or office.

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August 8, 2017

Things to Consider Before Buying a Life Insurance

comprehensive life policiesLife is unpredictable!

Although we are all aware of this, very few people actually think about the uncertainty of life and take practical measures to protect their loved ones, in case their life unexpectedly comes to an end.

Such wise people usually buy a comprehensive insurance policy to secure their family’s financial future.

Have you decided to be among those who are always prepared for the uncertain future?

Buy a life insurance!

What to Consider Before Buying a Life Insurance?

Searching and buying the right insurance policy can become a daunting task. But, not when you know what things to consider while weighing different insurance policies at hand. To help you do that, here we are highlighting some of the key factors that need to be considered when it comes to buying a life insurance:

• Make Sure That the Company Is Reliable

The foremost thing to consider before you decide to buy insurance is the reliability of the company you are buying from. Ask around for references and always go for the company that enjoys a good reputation. You can also check the company’s social media page to read reviews. This is important because frauds by insurance companies are highly common. Often, buyers find out about the hidden terms and conditions with regard to charges and coverage after buying the insurance.

Therefore, to prevent yourself from becoming a victim of an insurance scam, make sure you do a detailed research and seek references and reviews before choosing an insurance company. The task is quite tedious, but it is worth making the effort.

• Assess Your Needs

One of the many benefits of finding a reliable company is that the insurance agent can really help you in evaluating and assessing your needs and then choosing an insurance policy accordingly, to cover all your specific needs. The process entails evaluating factors such as the number of dependants, family wealth and assets, and whether the family will be able to pay off any remaining debts and bear the cost of funeral services or not?

Your answers to all these questions will help decide what things are more important for you and how much coverage you really need. For example, for some people the most important thing is to make sure their children’s education does not get negatively affected in any scenario and they want it to be covered by the insurance policy. On the other hand, there are people who do not want their family to pay for their burial services.

• Compare Different Policies

Decide your needs based on what things are important for you. For example, if you only want to make sure that your family receives money to pay for your funeral, ask different companies for quotes for funeral insurance. But, if you want multiple factors to be covered, look for a comprehensive life insurance policy.

Also, never settle for the first company you come across. Always compare different aspects of various insurance policies to make sure you find the best or you will end up regretting it later. In addition to your needs, your financial status also plays an important role in choosing a life insurance policy.

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