Secured Home Equity Loans – Bring Cheap Finance Home with Ease

Home is no more a dwelling place only. For people in need of greater finance, home turns into a tool of borrowings as well. But what is more beneficial is that home makes it possible to take very cheap loan. Well this is thanks to secured home equity loans. In the loan market secured home equity loans are considered as cheaper loans that can be put to any use like home improvements, clearing medical bills or enjoying a holiday tour. Even the loan can be utilized for paying off previous debts.Equity in home is the basis of providing secured home equity loans. How much equity is in a home depends on the current market value of the home and the balance amount its owner owes on it. The difference of the two is taken as equity in home. Secured home equity loans are considered more secured. The borrower places his home as collateral to the lender but the loaned amount is never more than the equity. Hence in case the lender sells the home for recovering the loan, he is sure to get an amount at least equal to equity.The biggest advantage of making equity the base of secured home equity loans is lower interest rate that is lower than any secured loan. This is the reason why secured home equity loans are popular as cheaper loans. Equity plays deciding role also in the amount to be borrowed. The applicant with a higher equity home enjoys greater borrowings. Another attraction of secured home equity loans is convenient repayment duration. The loan can easily be returned back in 5 to 30 years as suits to the borrower’s financial position. Such a large duration enables borrower in spreading the interest in as many installments as suits to him and can lower the monthly outgo towards installments. The borrower is able to save money for other expenses this way.Because secured home equity loans are the most secured ones, lenders are not worried over bad credit of borrowers. Just when the lender looks into annual income, employment and overall financial standing of the applicant for a mere formality, secured home equity loans are approved to bad credit people without hitch.You can find number of secured home equity loans on internet. While searching them, pay attention to the interest rate of individual lenders. Compare interest rate and rest of terms-conditions before applying. Better apply to a online lender for immediate approval of the loan.It can easily be established that secured home equity loans are more suited for lower interest rate and easy accessibility. Take extra care in paying installments regularly or you may loose your precious home to the lender. For bad credit people secured home equity loans are opportunity for repairing credit score as well.

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A New Era Of Electric Vehicle Market In The Coming Years

The electric vehicle market collectively accounted for 1043k units in 2016 and is anticipated to incline to 285188K units by 2030. The governments of various countries are very focused on pushing up EV sales to reduce the pollution level and thereby the global warming. With manufacturers rolling out new models and charging infrastructure picking up speed. The market is anticipated to witness immense growth during the forecast period.
In the Report “Electric Vehicle Market: By Types (BEV, HEV, PHEV); By Modules (Body & Chassis, Powertrain, Infotainment, Safety & Security); By Geography (Americas, Europe, Asia Pacific, RoW) – Forecast (2018 to 2023)”, published by IndustryARC, the market will be driven by development and advanced batteries in the coming decades.Electrification is the most viable way to achieve clean and efficient transportation that is crucial to the sustainable development of the whole world. The present division of year says, the electric vehicle technology including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and pure battery electric vehicles (BEVs) will dominate the clean vehicle market. Asia-Pacific Dominates with Major Growth in the Electric Vehicle Market Geographically, the Electric vehicle market is present in regions of North America, Europe, Asia-Pacific and rest of the world. The new plea of cars has increased by 70% from 2016. In 2016, over 550,000 vehicles were adopted globally which include both battery electric vehicle and plug-in hybrid vehicle. Research say China is expected to extend its industry leadership by making gains across all dimensions of the supply side EVs, including current projected production of EVs and their components. Overall, Germany and United States of America also perform well in the industry, with number of major changes in EV production. These countries saw slight fall of market, due to electric motor production because of China’s expansion. Sales Analysis Done in Full Report: The higher capacity batteries sales has increased. It is noticed that direct re-use is always cheaper than batteries under similar productivity environment. The PHEV is mapping towards sale and expected to come up with best price deal. The pricing concept gives you an idea about the estimation price of the present market, as the advancement in electric motor transmission batteries are under major development. The expansion and product launch will elucidate establishment cost and electric automobiles to sustain for longer period of time. Selected Type and Application Analysis Done in the Full Report: The uptake of EVs is the result of several factors, including strong technological progress, cost reductions and policy support, including purchase incentives, driving and parking access advantages, and increased public charging infrastructure availability. The BEVs dominated the sales over the hybrid cars in most countries until 2015. But, the plug-in vehicle (PHEV) sales have grown rapidly in the past two years and as of now the PHEVs market is nearly equal to BEV sales worldwide. PHEVs have a considerable range of advantages due to its ongoing battery performance improvements and making feasible in cost reduction driving to achieve maximum share in the marketplace. Excerpts on Market Growth Factors After the diesel emission scandal, in the city of California,$44 million investment was made by Electrify America to bring hundreds of electric vehicles to the city. The project includes 260 electric vehicles. The vehicles can locate nearby cars with an app and drive them anywhere within a 13 square mile radius. The vehicles will be available in early 2019.
ISRO announced to start its major project on lithium-ion cell technology to bring the adoption of non-exclusive basis for usage in automobiles. This initiative will accelerate the development of indigenous electric vehicle industry.
The growing adoption of electric cars is creating new opportunity for Volkswagen. It says that quantum computing technology could help to build customized batteries, with a chemical blueprint that will speed up development and production of electric vehicles batteries. This will build a specialized and customized car battery for future green cars.To access / purchase the full report browse the link belowhttps://industryarc.com/pdfdownload.php?id=18508 Key players of the Electric Vehicle Market At present, progress is the key strategy that drives the market, accounting for around 44% of total strategies adopted by key players. The major players profiled in this report include Tesla, BMW Group, Nissan Motor Corporation, Toyota Motor Corporation, Volkswagen AG, General Motors, Dailmer AG, and Energica Motor Company S.P.A. These are the leading market players focusing to expand their business operations in emerging countries. Among all the continents APAC is the emerging region where investors are more focusing on to introduce innovative solutions. Some of the well footholds EVs Cars in the present market are Tesla Model S, Nissan Leaf, BMW i3, Mitsubishi iMiEV, Ford Focus EV; these are BEV available models. BMW i3 REX, BMW i8, Cadillac ELR, Ford Fusion Energi, Ford Cmax Energi, Toyota Prius Plugin and others are the PHEV available type models. Audi Q5 Hybris, Acura ILX hybrid, Cadillac escalade Hybris, BMW Active Hybrid 3 and other are HEV available type models.Browse full report:
https://industryarc.com/Report/18508/electric-vehicle-market-research-report-analysis.html What can you expect from the report?
The Electric Vehicle Market Report is prepared with the main agenda to cover the following 20 points:1. Market Size by Product Categories & Application 11. Demand Analysis (Revenue & Volume)
2. Market trends & Relevant Market Data 12. Country level Analysis
3. Manufacturer Landscape 13. Competitor Analysis
4. Distributor Landscape 14. Market Shares Analysis
5. Pricing Analysis 15. Value Chain Analysis
6. Top 10 End user Analysis 16. Supply Chain Analysis
7. Product Benchmarking 17. Strategic Analysis
8. Product Developments 18. Current & Future Market Landscape Analysis
9. Mergers & Acquisition Analysis 19. Opportunity Analysis
10. Patent Analysis 20. Revenue and Volume AnalysisAny other custom requirements can be discussed with our team, drop an e-mail to discuss more about our consulting services.To request for a proposal, provide your details in the below link:Media Contact:
Mr. Venkat Reddy
Sales Manager
Email 1: [email protected]
Contact Sales: +1-614-588-8538 (Ext-101)

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2 Traits Of Successful Internet Marketers

Do you want to know the secrets of successful internet marketers? Successful internet marketers are like professional athletes. They are the “crème de la crème” of the internet marketing world. Even though they may not seem famous and highly acclaimed as you think they should, they’re still the best of what they do. If you ever hear of someone making $2,000 per month online, and you look at them as if they are amateurs – you’re besides yourself.Do you know how hard it is to make $2,000 per month online? Some people would sacrifice their left pinky toe to have $2,000 per month automatically coming in. That’s why the failure rate of businesses online is so high. But successful internet marketers know that there is massive work involved, and you can’t look at internet marketing as if it’s a lottery drawing.Most people online who have been trying to make money for years believe that if they can get the best copywriter… the best product… or the best marketing consultant, that they can make $10,000 in month instantly. That’s just not true. For 98% of the people selling online, their chances of making $10,000 in one month will indeed come from the lottery. But successful internet marketers know that success online is not a “hit or miss” kind of thing.As a successful internet marketer myself, I can tell you that true success comes from planning. You have to know your numbers, you have to be diligent and persistent with your marketing, and your paid advertising has to make sense – and also bring in high quality traffic. I want to share with you why this is important, and why successful internet marketers have all of these things in common. Take a look at this:1) Successful internet marketers take their work seriouslyNow I just mentioned above that successful people online know their numbers, are persistent, and know that their marketing makes sense. Because of this, they plan ahead with a daily marketing agenda that will help them to reach all 3 of these goals all at the same time. Let me ask you: Before you invested a dime into paid advertising, have you ever took a look at your competition and investigated the nuts and bolts of their operation?Sometimes to be a successful internet marketer, you have to play customer. You have to buy your competitors’ product, see how good the product is, and take notice at how they market to you over and over again to get more sales from you. If you want to copy your competitors’ and have the successful business that they have, you can’t just do some of the things that they are doing… you have to do ALL of the things that they are doing.If they have a online help desk system, you need that. If they have a phone support team, you need that. If they’re selling online as well as offline to prospects and customers, you need to do that also. Don’t think that these people just woke up one day, threw up an ad an somewhere and instantly became successful. It doesn’t work that way. Most people who try to copy their competitors have no idea what they’re doing. So plan ahead and have all of these things ready to go the next time you want to copy a rival in your niche to make money.2) Successful internet marketers have a routineDo you have a daily marketing routine, or do you wake up everyday browsing other peoples’ websites and reading their site? You will never get anywhere by operating like this. A lot of people do this simply because they have no idea of what to do! They’ve read countless books, courses, emails, articles and still have no clue as of what to do NEXT. What you need to do is develop an internet marketing routine that can be executed daily like clockwork.This means that you should go and create yourself a daily marketing plan on a simply text file on your computer. And every single day when you wake up – or when you normally do your marketing – follow each step exactly daily. This is essential because you’re more likely to make money and see results of your business if you write a plan out first, and then visually follow it everyday.So yes, the internet marketer that’s making $2,000 per month online has a daily marketing routine. If you were to take a look at the inside of their operations, you would see tons of content being produced, ads tracked and analyzed, free marketing being implemented, and a time span of when all of this is supposed to be done. You don’t want to spend 12 hours per day in front of your computer trying to do every trick in the world.A lot people enjoy buying “bulk submitters” because they think it will simplify their marketing and bring them massive instant results. And more than likely, I’m pretty sure you’ve tried your hand at these bulk submitters also. But these bulk submitters won’t do anything for you, plus… they’re not 100% automatic! Even though they advertise that they are!Don’t rely on products like these to do your marketing. It won’t get you anywhere and it won’t give you the results that you’re looking for. And it won’t get you the results because websites and companies are constantly cracking down on these idiotic products, and banning people from their platform who get caught using them. If you’re submitting low quality work and information everyday, how will that benefit your targeted prospect? Why should they view you as an obvious expert in your niche if you’re putting out low quality information? Does that make sense to you? It sure doesn’t to me.If you want to be a successful internet marketer, you need to take these words to heart. Change the way that you are doing things and start implementing all of the CORRECT advice that you read. Don’t do it half-way. Do it exactly as shown online with what is said, shown, and read. This way you will know that you did each technique 100% correctly, and you did the best that you could.

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6 Truths About Starting a Business Online (or Any Business)

6 Truths About Any Business… (For those who want to start a business online)You are here to learn how to make money from home…But unfortunately the truth is often disguised by those wishing to either attract you to buy their product “one click of your laptop will instantly win $ $ thousands $ $ on the Internet while watching the soap operas.” Or that “he has been jumping from one MLM company to another in the last 6 months and I swear by your mother, your grandmother, your dog that this is the company that will make you a millionaire if you take this miraculous “cure-all” that can only be found at the tip of this special iceberg “.BY GOD! This seems to be a virus spreading by what they call the New World Order to keep us busy but without hope.So the first thing we will do is learn what thousands of others have learned (including me), and that applies to any business.Truth # 1 There is no such thing as a “free lunch” (Free Lunch)Every Business will cost money to make money, the important thing is to be careful how you spend your initial investment. On the internet you will find so called “Gurus”, “AntiGurus”, and the poor who discovered a system or software and tomorrow night to your laptop spits money every minute and now a month later have race cars, mansions, exotic travel, one month stays in 7 star hotels, surrounded by beautiful women, all in just 1 month. Now these “good people” want you want to buy their book for $ 97 (today’s special $77) and the reason is that you can make money selling the same book you just bought. Pleaseeeeeeeeeeeeee!!When you engage in a business, you have to work it. POINT. Even those programs that claim you do not have to do anything, have a part in its documentation that says something like… “just have to promote your website.”This is the problem that most people have when it comes to developing a strong online business. Anyone who tells you to start and make a business successful online is easy and requires no effort is not being completely honest. Now this does not mean it is not fun, rewarding, honorable, inspiring and lucrative, and even more so when we can retire from a regular job to devote our full time, effort and dedication to our business.Truth # 2 you should always exercise “leverage” (leverage)What is leverage? It is the ability to bring people and / or resources to work for a common goal. When several people work together toward a goal it is much easier and more productive than one person doing all the work themselves.Imagine you paint your house. How much quicker would it be if you had two people instead of one? Or what if you had five working? Alone, maybe it would take 10 hours to paint your whole house, this means with 5 people putting forth the same effort it would only take 2 hours. That my friend is the power of leverage.Truth # 3 Friends and Family do not understand or even really care what you do.They remain in a traditional job, thinking it will last 40 years. Little do they realize that in today’s economy this company could go broke overnight. They are blinded by traditional thinking and will probably never pay attention to your journey to success until you actually arrive.Vacation is reserved for convenience not theirs but of the company, and sick days are limited. While it takes some time and effort to develop your own business to replace your current income, when you’ve achieved your goal you can make your vacation plans and design your business around your life, not vice versa.Truth # 4 The Roman Empire was not built in a day.Likewise your business will not grow from nothing to hundreds $ $ in a week.(it has happened but it is not the norm)Many people become “Opportunity Grasshoppers”, and if an opportunity does not produce them $ $ $ in 3 weeks they move (or jump) to the next.Like the story of the farmer who planted corn, and a week later only saw one green sprout of barely protruding from the ground and decided that he was going to take them out and plant tomatoes because apparently this ground would produce no corn. Because he did not have patience he died without ever seeing a harvest.Any company no matter the product, or compensation can earn you money when you take the time to market it, talk to prospects. Just as plants if you do nothing your business will not prosper if you withdraw your plants too early.Truth # 5 If you want to replace your job, you should work your business as a job.If you treat your business like a hobby, then do not be surprised when it only grows very, very slowly if even at all. You have to make the decision to see it as another job and take more responsibility for your effort so see success.What does this mean in rice and beans? You must take time to market efficiently, talking with a number of people per week, as if you were employed by another to do so. This is your future… your retirement… your ability to stay home with your family and continue to generate revenue. Choosing when and where your next vacation will be. Remember it takes work to achieve all of your goals and desires.Truth # 6 You must develop multiple income streamsCreate multiple streams of income is like having an insurance policy. Don’t put all of your eggs in one basket because if that basket was lost or stolen you would have to start all over from scratch. With multiple income streams flowing into your bank account you never have to worry because should one drop off you have many others to sustain you until you can create another stream to replace the one that was lost.

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Unsecured Personal Loans – When You Are Your Guarantor and not Your Home

Sustainable development is at the heart of every human dream. You work hard every day and you grow emotionally and financially every day. Yet you find that you are still short of money when you want to buy something. There are smart ways to fill in for this financial gap. These are called personal loans. There is one personal loan for every occasion. Yes, even if you have no security to offer. There is a name for this smart borrowing method – unsecured personal loans.Not everybody is easy with placing his home or any other dear possession for taking loans. This is highly understandable. The worst case scenario with secured personal loans is like repossession of home or property. May be it is just a possibility but still it is a possibility. If you do not want to comply with such a demand, unsecured personal loans are the ideal choice. If you are tenant then you won’t find a better and a more deserving way to borrow money than unsecured personal loans!Well, if unsecured personal loans don’t ask for security, what do they ask for? Since loans are a profit making business what does the lender have in for him? Well that would be – interest rates. Interest rates for unsecured personal loans are higher. But that does not mean that Unsecured Personal Loans [http://www.easyfinance4u.com/unsecured_personal_loan.html]
are expensive and out of reach of any regular borrower. Interest rates for unsecured personal loans are relatively higher than secured personal loans.Interest rates for unsecured personal loans are well defined by banks and other lending institutions. Lenders may still find that they are not offered advertised interest rates for unsecured personal loans. Interest rates on loans are a very ‘personal’ thing. This implies that rates are dependent on some factors. Scoring well on these factors will mean getting better rates.Credit ratings are a very good way to get better interest rates with unsecured personal loans. Since you are not placing any security, your credit rating will be a picture of your credit worthiness. Find out your credit score before you apply for unsecured personal loans. Unsecured personal loans are possible for those with bad credit history like late payments, arrears, CCJs, bankruptcy etc. It is not that you won’t find unsecured personal loans for bad history; it is just that the accountability is in terms of interest rates.Fixed or variable interest rates for unsecured personal loans are available. Interest rates are vulnerable grounds to tread on for both borrower and lender. They can make or break the loan lending decision for any borrower. Since borrowing market is basically consumer oriented, the choices for unsecured personal loans are many. In other terms it means – competition. Competition reduces interest rates and you may find better interest rates for your particular condition.To find better rates for unsecured personal loans you would have to look through the internet. You will see extensive loan sites which offer unsecured personal loans. The loan amount that you qualify for with unsecured personal loans is £500-£25,000. Repayment term will be 6 months to 10 years. Unsecured personal loans can solve any kind of financial problem like holiday, home improvement, debt consolidation, wedding, car or whatever that shows up your doorway.Unsecured personal loans at the end of the day are loans. It will have to be paid back. Though the lender cannot claim your property if you fail to repay but he can still legally claim his money through any civil procedure which will ultimately mean risking your home. Unsecured personal loans on which you have faltered will show in your credit ratings.Unsecured loans take lesser time for approval. There is no collateral that has to be reviewed for approval. But before you apply have you reviewed the checklist. No?? Check for pre payment penalties, interest rate, loan term, reputation of lender, your credit rating. What else? Read, gather information, do whatever it takes to find a good unsecured personal loan. Just remember – there are ways to smart living and they don’t always ask for guarantee.

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Low Interest Rates on Auto Loans: It Can Make Your Life Pleasurable

Every person borrows money on credit. A loan on your name marks your progress. It also shows your appetite towards a luxurious life. Thanks to the lenders, borrowing money for a new car isn’t difficult at all.Although, what bothers people are the interest rates that the lenders charge. It is inversely proportional to your credit rating. It means the higher your credit score; lower will be the interest rate on the auto loan.What are the Benefits of obtaining Low-Interest Rates on Auto Loans?Let’s understand how low-interest rates on auto loans can leave you tension-free and make your life pleasurable.· You can buy Expensive CarsYou can buy expensive and luxurious cars without any worry. The reason is simple. As you get low-interest rates, you need not take tension of a large down payment in order to minimize the loan amount.So, you need not to worry about saving up too much money for the down payment. Just pay a nominal amount and obtain an auto loan for the remaining amount.· You won’t end up paying more MoneyLet’s take an example to understand the number game easily.For a loan of $10,000, with an interest rate of 15% for 10 years, you pay a total amount of $19,360.19. It means you pay more than $9000 in the form of interest. If the rates of interest reduces to 6%, the total amount will come down to $13,322.46.It is simple to understand how the total payable amount differs with a simple change in the interest rates. Hence, become a credible and punctual credit borrower. In return, you will be able to enjoy low rates on your next loan.· Lenders will trust you Every company values a genuine customer. If you make payments regularly, you will never face any difficulty in getting an auto loan. Lenders will stay in touch with you and provide you with special discounts as well as cash benefits for buying a car.Your punctuality will earn you respect and trust of lenders. They will understand your situation and provide you with other benefits such as relaxed lending terms, higher LTV ratio, etc.· You can apply for Multiple LoansThe best thing about low-interest rates is that you can apply for multiple auto loans without any tension. Whenever you feel like buying a new car for your family member, you will have no problem in getting approval from a lender. Also, you will be able to make the purchase at affordable rates.Nobody likes to borrow less money and pay more in the form of interest amount. So your priority should be to lower the interest rates. And, here’s how you can achieve your goal:1) Always keep a check on your credit score – It is a crucial measure for lenders that enables them to judge your credibility.2) Convey your sincerity – Be confident when you face the lenders. Also, try to convey your sincerity by explaining your plan of making regular payments.3) Never miss payments – Making payments on time is the key to become a good credit borrower.4) Be on the move – Your credit behavior determines your growth. So, apply for multiple loans, make payments regularly and do not let your bank account sit idle.5) Do you have a low FICO score? -You should start by applying for an auto loan of a smaller amount. Repay it on time, build your credibility and carefully nurture your credit score. Make payments regularly and improve your credit ratings. In return you’ll be able to enjoy low-interest rates on your next auto loan.Considering the interest rates is a very important aspect of the car buying process. Remember that low-interest rates on auto loans can make your life pleasurable. So, strive hard to convince the lender and ensure that you he provides you with a better deal.

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What Investors Should Know About Commercial Real Estate Loans

Your commercial real estate transaction does not close unless the loan is approved. You can also improve the cash flow if the interest rate for the loan is low. So the more you know about commercial loans, the better decision you can make about your commercial real estate investment.Loan Qualification: Most of you have applied for a residential loan and are familiar with the process. You provide to the lender with:
W2′s and/or tax returns so it can verify your income,

Bank and/or brokerage statements so it can verify your liquid assets and down payment.
In general the more personal income you make the higher loan amount you qualify. You could even borrow 95% of the purchase price for 1-unit principal residence with sufficient income.For commercial loan, the loan amount a lender will approve is based primarily on the net operating income (NOI) of the property, not your personal income. This is the fundamental difference between residential and commercial loan qualification. Therefore, if you buy a vacant commercial building, you will have difficult time getting the loan approved since the property has no rental income. However, if you
Occupy at least 51% of the space for your business; you can apply for SBA loan.

Have sufficient income from another commercial property used as cross collateral; there are lenders out there that want your business.
Loan to Value: Commercial lenders tend to be more conservative about the loan to value (LTV). Lenders will only loan you the amount such that the ratio of NOI to mortgage payment for the loan, called Debt Coverage Ratio (DCR) or Debt Service Ratio (DSR) must be at least 1.25 or higher. This means the NOI has to be at least 25% more than the mortgage payment. In other words, the loan amount is such that you will have positive cash flow equal to at least 25% of the mortgage payment. So, if you purchase a property with low cap rate, you will need a higher down payment to meet lender’s DCR. For example, properties in California with 5% cap often require 50% or more down payment. To make the matter more complicated, some lenders advertise 1.25% DCR but underwrite the loan with interest rate 2%-3% higher than the note rate! Since the financial meltdown of 2007, most commercial lenders prefer keeping the LTV at 70% or less. Higher LTV is possible for high-quality properties with strong national tenants, e.g. Walgreens or in the areas that the lenders are very familiar and comfortable with. However, you will rarely see higher than 75% LTV. Commercial real estate is intended for the elite group of investors so there is no such thing as 100% financing.Interest Rate: The interest for commercial is dependent on various factors below:
Loan term: The rate is lower for the shorter 5 years fixed rate than the 10 years fixed rate. It’s very hard to get a loan with fixed rate longer than 10 years unless the property has a long term lease with a credit tenant, e.g. Walgreens. Most lenders offer 20-25 years amortization. Some credit unions use 30 years amortization. For single-tenant properties, lenders may use 10-15 years amortization.

Tenant credit rating: The interest rate for a drugstore occupied by Walgreens is much lower than one with HyVee Drugstore since Walgreens has much stronger S&P rating.

Property type: The interest rate for a single tenant night club building will be higher than multi-tenant retail strip because the risk is higher. When the night club building is foreclosed, it’s much harder to sell or rent it compared to the multi-tenant retail strip. The rate for apartment is lower than shopping strip. To the lenders, everyone needs a roof over their head no matter what, so the rate is lower for apartments.

Age of the property: Loan for newer property will have lower rate than dilapidated one. To the lender the risk factor for older properties is higher, so the rate is higher.

Area: If the property is located in a growing area like Dallas suburbs, the rate would be lower than a similar property located in the rural declining area of Arkansas. This is another reason you should study demographic data of the area before you buy the property.

Your credit history: Similarly to residential loan, if you have good credit history, your rate is lower.

Loan amount: In residential mortgage, if you borrow less money, i.e. a conforming loan, your interest rate will be the lowest. When you borrow more money, i.e. a jumbo or super jumbo loan, your rate will be higher. In commercial mortgage, the reverse is true! If you borrow $200K loan your rate could be 8%. But if you borrow $3M, your rate could be only 4.5%! In a sense, it’s like getting a lower price when you buy an item in large volume at Costco.

The lenders you apply the loan with. Each lender has its own rates. There could be a significant difference in the interest rates. Hard money lenders often have highest interest rates. So you should work with someone specialized on commercial loans to shop for the lowest rates.

Prepayment flexibility: If you want to have the flexibility to prepay the loan then you will have to pay a higher rate. If you agree to keep the loan for the term of the loan, then the rate is lower.
Commercial loans are exempt from various consumers’ laws intended for residential loans. Some lenders use “360/365″ rule in computing mortgage interest. With this rule, the interest rate is based on 360 days a year. However, the interest payment is based on 365 days in a year. In other words, you have to pay an extra 5 days (6 days on leap year) of interest per year. As a result, your actual interest payment is higher than the rate stated in the loan documents because the effective interest rate is higher.Prepayment Penalty: In residential loan, prepayment penalty is often an option. If you don’t want it, you pay higher rate. Most commercial loans have prepayment penalty. The prepayment penalty amount is reduced or stepped down every year. For example on a 5 year fixed rate loan, the prepayment penalty for the first year is 5% of the balance. It’s reduced to 4% and then 3%, 2%, 1% for 2nd, 3rd, 4th and 5th year respectively. For conduit loans, the prepayment amount is huge as you have to pay for the interest between the note rate and the equivalent US Treasure rate for the whole loan balance for the remaining term of the loan. This prepayment penalty is called defeasance or yield maintenance.Loan Fees: In residential mortgage, lenders may offer you a “no points, no costs” option if you pay a higher rate. Such an option is not available in commercial mortgage. You will have to pay between ½ to 1 point loan fee, appraisal cost, environment assessment report fee, and processing/underwriting fee. A lender normally issues to the borrower a Letter of Interest (LOI) if it is interested in lending you the money. The LOI states the loan amount, interest rate, loan term and fees. Once the borrower pays about $5000 for loan application fees for third party reports (appraisal, phase I, survey), the lender starts underwriting the loan. It orders its own appraisal using its own pre-approved MAI (Member of Appraisal Institute) appraisers. If the lender approves the loan and you do not accept it, then the lender keeps all the fees.Loan Types: While there are various commercial loan types, most investors often encounter 3 main types of commercial loans:1. Small Business Administration or SBA loan. This is a government guaranteed loan intended for owner-occupied properties. When you occupy 51% or more of the space in the building (gas station or hotel is considered an owner-occupied property), you are qualified for this program. The key benefit is you can borrow up to 90% of purchased price.2. Portfolio loan. This is the type of commercial loans in which the lenders use their own money and keep on its balance sheet until maturity. Lenders are often more flexible because it’s their money. For example East West Bank, US Bank and some life insurance companies are portfolio lenders. These lenders require the borrowers to provide a personal guaranty for the payment of the loans. And thus these loans are recourse loans.3. Conduit loan or CMBS (Commercial Mortgage-Backed Securities) loan. This was a very popular commercial loan program prior to the 2007 recession where its market size was over $225 Billion in 2007. It was down to just a few Billion in 2009 and is making a comeback with issuance of almost $100 Billion in 2015. Many individual loans of different sizes, at different locations are pooled together, rated from Triple-A (Investment grade) to B (Junk) and then sold to investors over the world as bonds. Therefore it’s not possible to prepay the loan because it’s already part of a bond. These are the characteristics of conduit loans:
The rate is often lower. It is often around 1.2% over the 5 or 10 year US Treasury rates compared to 1.85-3% over the 5 or 10 year US Treasury rates for portfolio loan. Some CMBS loans have interest only payments. Since the rate is lower and borrowers are required to pay interest only, the LTV can be over 75%. Low rates and high LTV are the key advantage of conduit loan.

Conduit lenders only consider big loan amount, e.g. at least $2M.

Lenders require borrower to form a single-asset entity, e.g. Limited Liability Company (LLC) to take title to the property. This is intended to shield the property from other the borrower’s liabilities.

The loans are non-recourse which means the property is the only collateral for the loan and the borrowers do not have to sign personal guaranty. And so these loans are popular among investment firms, REIT (Real Estate Investment Trust), TIC (Tenants in Common) companies that invest in commercial real estate using funds pooled from various investors.

If the borrower later wants to sell the property before the loan matures, the new buyer must assume the loan as the seller cannot pay off the loan. This makes it harder to sell the property because the buyer needs to come up with a significant amount of cash for the difference between the purchase price and loan balance. Furthermore, the lender/loan servicer could reject the loan assumption application for various reasons as there are no strong incentives for it to do so. The loan servicer can also impose new conditions to loan assumption approval, e.g. increase reserve amount by several hundred thousand dollars. If you are a 1031-exchange buyer, you may want to think twice about buying a property with loan assumptions. Should the lender reject your loan assumption application, you may end up not qualifying for the 1031 exchange and be liable for paying capital gain. This is the hidden cost of conduit loan.

Even when you are allowed to prepay the loan, it costs an arm and a leg if you want to prepay the loan. The prepayment penalty is often called Defeasance or Yield Maintenance. Basically you have to pay the difference in interest between the note rate of your loan and the applicable US Treasury rate for the remaining years of the loan! This amount is often so high that the seller normally requires the buyer to assume the loan. You can compute the defeasance from www.defeasewithease.com website. Besides the defeasance, you also have to pay 1% loan assumption fee. This is another hidden cost of conduit loan.
Conduit loan may be the loan for you if you intend to keep the loan for the life of the loan that you agree to at the beginning. Otherwise it could be very costly due to its payoff inflexibility.Lenders Coverage Area: Commercial lenders would do business in areas they are familiar with or have local offices. For example East West Bank will only consider properties in California. Many commercial lenders don’t lend to out-of-state investors.Lenders Coverage Property Types: Most commercial lenders would only consider certain types of properties they are familiar with. For example Chase would do apartments and owner-occupied office buildings but not retail properties or gas stations. Westford Financial specializes on church financing. Comerica concentrates on owner-occupied properties.Lenders Escrow Accounts: Most lenders require borrowers to pay 1/12 of property taxes each month. Some lenders require borrowers to have repairs and/or TI (Tenants Improvement) reserve account to make sure the borrowers have sufficient funds to cover major repairs or leasing expenses should existing tenants not renew the leases.Conclusion: Commercial loans are a lot more complex and difficult to obtain with loan approvals more unpredictable than residential loans. As an investor, it is in your best interest to employ a professional commercial loan broker to assist with your commercial loan needs. By doing so, you will vastly improve your chances of paying lower interest rates, avoid potential pitfalls and improve your chance on getting the loan approved.

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Easy Home Based Business – Fact Or Fiction?

Easy home based business advertisements are everywhere these days. Our business is easy to make money with, or so they say. In order to determine if an easy home based business is real, we need to define easy. It isn’t a simple answer because easy means something different to different people. It is a matter of one’s perspective or expectation of what is easy. Even though you might think the definition of easy is pretty simple, the differences in understanding for people is more complex. When you look up the word easy, you’ll find more than seventeen explanations.What may be easy for one person may not be so easy for someone else. What we should really be asking is what are individuals truly seeking in their search for an easy home based business? We should then ask what is actually being promoted when someone posts an ad about an easy home based business?What Individuals Really Want With An Easy Home Based BusinessAgain, this is a difficult question to answer, as it may have several meanings. Are people looking for a get rich quick scheme or more for a simple way to generate an extra income? One group of people might want an opportunity that won’t require a ton of work. Some might want a business that allows them to stay in their comfort zone. Yet, others might need an easy home based business that can be implemented in a few easy steps. Whereas, having a highly sought after service, or a wide demographic, might be the definition of easy for someone else. The point being made is there is no one size fits all answer.The Easy Home Based Business Advertising TrickWhat is the real promotion in an easy home based business advertisement? Personally, I believe they are promoting a basic idea or a concept. The promotion itself leads people to believe they can make money easily from home. They’ll use some kind of pitch regarding the simplicity of their program, or how it’s so easy that anybody with a computer could do it. The infamous claim that it requires very little time at all usually follows. You can do it in just a few hours each week. You determine how little or how much effort you want to put into it. Finally the prospect of the potential income you can generate, working as little as possible, is dangled in front of your face. The idea of easy is basically an idea.In order to know if it’s really that easy, you first need to find out what easy means to the person promoting the opportunity. Reality is, if you are looking for a legitimate opportunity, the word easy is usually not attached to it. You see, the majority of opportunities that return real measurable results are not being promoted as an easy home based business. Sure, if you want to make a few extra bucks to have some play money around the house, you might be able to find an easy home based business. The truth in most of these cases, is you usually trade blocks of time, doing a basic activity, for blocks of money. This can be a frustrating avenue however, because in my research of easy ways to make money at home, the income you produce isn’t worth the time and effort. A venture such as this hardly allows you to work smart, since you end up working more for less pay. In my book this is classified as a job, not really fitting into the category of business.Is There Really An Easy Home Based Business?The answer really relates to exactly what it is that you want. My personal thought is that if you want a career level income or to be able to replace your job, then I would have to say no. However, finding the right opportunity and being successful with a home business does not need to be super challenging either. It can actually be quite simple when you know what you are doing. Keep in mind, simple does not equate to easy.If you’re looking for a solid home business, you might not want to focus your search on an easy home based business. You can find plenty of legitimate opportunities that provide training for basic systems. No matter how basic the plan, you should still have proper expectations, because learning something new can take time. Instead, you should focus on finding something that you can get passionate about. Nothing will destroy a business venture as swiftly as choosing something you are lukewarm about. I advise you to steer clear of the easy home based business claims. You will have a much better chance at accomplishing your goals if you learn how to find the best home based business for you, first.

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Commercial Agents – Tips to Increase the Sales of Commercial Property Today

When it comes to the sale of any commercial property today, there is plenty of competition to contend with. In most cities and towns, there are many good properties listed and being actively marketed. The biggest frustration in selling commercial property today is in finding the right buyers who can act with appropriate finance. In simple terms there are fewer buyers around; the experience and expertise of the real estate agent is more important than ever before in the sale process.From the outset of the property marketing campaign, the specific target market should be the focus. All of the advertising should be written with a view to the targeted buyer. Clarity is important here.All of the advertising for the property should be structured around the target and what they are looking for today; the advertisements, promotional material, Internet listings, and direct mail campaigns should all be similarly structured.To understand this target market ask yourself these questions.
Where is the buyer for the property coming from?
What is the buyer looking for in selecting a property?
How much can they spend and on what terms?
What are the real features of the property that the advertising should be built around?
What is the best time of year to attract a buyer to the property?
What is the best method of sale that will attract the buyer to enquire and then to purchase?
What are the negative issues relating to the property that should be addressed prior to the campaign commencing?
What are the comparable properties nearby that frustrate the marketing process?
So these questions are critical to the property promotion strategy. The buyers in today’s property market are selective and fickle. There are fewer buyers around and negotiations take longer. That being said, the experience and skills of the real estate agent in the promotion, inspection, and closing of a property transaction is now more important than ever before. Knowledge and practice will help the process.Every marketing campaign has to address the target market and promote the individual property. The days of generic marketing are gone. Specific target marketing with dedicated advertising that really encourages enquiry should be the main focus of every campaign.The best ways to increase the levels of enquiry in every commercial property campaign include the following:
The buyers of commercial property typically come from the local area. This means that your campaign should be directed to the local property owners and the local business owners. To achieve this focus, it is best to direct mail and telephone the owners and the businesses that own or occupy local property. Every piece of direct mail should be followed up to optimise the enquiry and the information.
When any property comes on the market, within the first 24 hours ensure that flyers and information brochures are personally delivered to the neighboring properties and businesses within a radius of 500 metres.
Place a prominent signboard on the property at the start of the campaign. This is perhaps the best and most cost efficient way of promoting any property. If possible ensure that the signboard has specifically been created with property information and sale details.
When you draft your advertisements for the property promotion, use the keywords that apply today to the property type and location. These keywords will help the Internet Marketing and Internet listing. You can research the keywords from the larger search engines on the Internet. These keywords will be the words that the buyers of property are entering into the search engines when looking for properties to purchase.
When the promotion of property commences, make personal contact with the database within your office. This means telephone calls and meetings with the appropriate people. The information and leads that you gather from the campaign will be helpful in other property promotions at a later time. All the information should be entered into your database.
E-mail marketing will be a useful tool for every property promotion. Most agents are selectively sending out e-mail marketing each week. Any property promotion can be merged into this process.
To sell a property today, the best method of sale should be selected. That will be the method that buyers respond to and act within. Do not choose a method of sale that can frustrate the potential purchasers. The
Vendor paid marketing remains the normal and sensible alternative in every marketing campaign. Any serious property vendor will commit marketing funds to the promotion of their own property. Always ask for vendor paid advertising to comprehensively cover the target market.
Create an inspection process and strategy that covers the property and its features. Understand exactly how you will take people to and around the property. Identify the right things to talk about with buyers, and get market information to support your presentations or inspections.
Even in this tougher property environment, good properties will sell. It is a matter of the agency working hard to locate the buyers and then promote the property effectively. This is a personal process when it comes to each and every property.Open listings are generally a waste of time today as they always take longer to sell. Every serious vendor that needs to sell their property should commit to an exclusive listing and marketing campaign with one specialist commercial agency for a period of at least three or four months. If the property is unique then that time line will be longer.

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There is an excessive amount of traffic coming from your Region.

#EANF#

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