Real Estate Investing Is It a Cash Cow or Dud

Originally posted 2011-08-31 12:01:08. Republished by Blog Post Promoter

Is real estate investing still a good way to make money?  To answer this question, we will examine what occassional debt  such as credit cards can do to your financial future.

Most people use a credit card like it is a never ending money tree and spend, spend, spend.  If this occurs, you will never achieve wealth.  Here is why.  If that credit card’s interest rate is eighteen percent, you are paying eighteen dollars, for every one hundred dollars you spend.  The latter is an example of “living rich while growing poor.”

The objective in growing rich is to use the concept that the rich use.  It is, use OPM, other people’s money, to become financial free.

The steps are simple.  Reduce consumer debt.  Next, build assets through homeownership, save money, and invest.  Third, borrow against those assets to increase your net worth.

A critical requirement of OPM is that the moeny acquired needs to be used to maintain and/or improve your wealth.  In other words, it is not wise to use your newly acquired funds to purchase stock because the stock may be a higher risk proposition than real estate.

After all, real estate can reduce in value, but it will never be worth zero, unlike stock.  Yes, real estate is always  worth something even if there is no structure on the land.

The land, the dirt, the trees, the air, is all worth something.  So, next time you have some extra money do your homework and consider real estate as your

Who is at Fault When a Blog Covers More than Real Estate

Originally posted 2009-12-15 17:07:42. Republished by Blog Post Promoter

Recently, I received a comment or clique from a fellow Realtor who stated that this blog has several topics.  Well, my colleague may not realize that real estate is affected by several things.  One of which is economics.  This blog was developed with that in mind.

I mean, let’s face it if an individual does not have a job he or she does not have income to purchase a home.  If an individual does not understand how to maintain good credit or rebound from bad credit, he or she can not purchase a home.  If an individual does not understand how to get reduction on personal taxes or property taxes, then an individual can not keep a home.

I would love to know how you, the reader, feels should this blog stick to real estate only or give you current events and topics and relate them to how it influences your ability to purchase or keep your home.  Is it right or wrong to cover more than real estate?

Related Real Estate Articles

• What Recession? Florida Investor Garners 17.35 Percent on $1.34 Million (prweb.com)
• How to Prepare Your Credit for a Home Loan (homeloans.org)
• Accountant puts his money on, and in, bank GICs (thestar.com)
• Media Advisory – The Real Estate Market and Implications for Calgary: Exclusive Inside Look from Industry Experts (newswire.ca)

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How to Raise Your Odds of Getting Approved for a Mortgage

Originally posted 2009-12-15 19:16:46. Republished by Blog Post Promoter

Your credit score is the catalyst to you receiving or not receiving a mortgage.  Advantage Mortgage has taken some of the guess work out of obtaining a mortgage.  The company has included an easy to understand tutorial on mortgages and common terms to help the buyer understand common terms that will be used during the acquisition of a mortgage.

Not only does Advantage Mortgage prides itself on providing information on the terms related to mortgages, it wants to be the company that you think of no matter what your credit score.

Advantage Mortgage has cutting edge mortgage programs for:

• self employed
• first-time home buyer
• investors
• move up buyers

No matter what your mortgage needs let Advantage Mortgage guide you through the process.

All to often a buyer finds him or her self alone when considering purchasing a home.   Advantage Mortgage holds your hand with its knowledgeable professionals.  These professionals will answer all questions pertaining to mortgages.  They will provide you with a good faith estimate of all charges as well as, explain the difference between a fixed and adjustable rate mortgage.

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Second Mortgage, What is It?

Second Mortgage What Is It Exactly

Everyone has heard a friend or relative complain about
having to take out a second mortgage but don’t really know
what that means. Let’s find out!

The real term for this is called a home equity loan. This
is a common loan type that homeowners can use for whatever
they want.

A home equity loan requires that you use your house for
collateral just like a normal home loan. There are
different types of home equity loan out there and you can
always use the money for whatever you want.

College, bills, and home repairs are some common uses. You
will need outstanding credit to be approved for this kind
of loan though.

A closed end type home equity loan gives you a big chunk of
money immediately and you can’t get another loan until this
one is fully paid.

The amount you can get depends on factors such as how much
your home is worth, your income, credit score, and similar
things. A closed end loan usually comes as a fixed rate
type and allows you up to 15 years to pay it off.

An open ended home equity loan is a little different. This
loan will let you borrow money whenever you have a need for
it.

The loan lender will set up a line of credit that is pretty
much based on all the same factors as the closed end loan.
These usually have an adjustable rate and you can make
payment for 10, 15, or even 30 years.

So why are these called second mortgages Because you are
adding yet another loan payment that uses your house as
collateral and adding another monthly payment. Though
tempting, it can cause you a lot of problems in the future.

 

Related articles

• A Guide To Mortgage Equity Loan Options (massrealestatenews.com)
• Home Equity Loan Alternative: Peer Lending (bargaineering.com)

Effective Anti-Recession Tips for Your Taxes

Tips for Effective Tax and Personal Anti-Recession Steps

Ask an economist to define recession for you and chances are, they’ll tell you that it is a state of the economy where it declines for at least 6 months.  But that’s just a pretty, picture-book definition.  Recession can affect not just cities and countries, it can also affect individuals and families on a more personal level.  To help you implement tax and personal anti-recession steps, here are things you can do:

Start saving.  Now.

If you have a nest egg stashed somewhere, good for you.  Boost it with more savings.  If you don’t, it’s time to start immediately.  Implement tax and personal savings steps in order to fight the effects of recession.

Cut back on spending immediately.

If you think you need everything you buy, gather your last few weeks’ worth of receipts and rate each item according to necessity.  Chances are, there are a few things there that you’ll realize now that you didn’t really have to buy.

If you see the same pattern in most of your receipts, that’s a sign that you ought to cut back on your expenses and seriously implement a budget or spending plan.  You could, for example, cancel gym memberships and take up running or home exercises instead, buy items on sale instead of at regular prices and put off any large purchases – cars, TVs, video equipment, furniture, etc.

Take big chunks out of your debt.

Your debt can get you down and it will not hesitate to do the same thing to your credit score.  During a recession, a bad credit rating is just not something you want to have.  If you have debts in some form (loans, credit cards, mortgage, etc.), try to pay off as much of your debt as possible.  The earlier you do this, the better it will be for your finances.

Clearing your debts is an excellent anti-recession step because it helps save you money in terms of interest.  It will also give you peace of mind and the personal satisfaction of being in charge.

Consider investing?  Ask a professional.

An experienced financial adviser can help you understand the kind of options you have, given your own resources and the type of risks you are willing to take.  Recession can make investing much more of a challenge, particularly for the uninitiated.  That is why you’ll need all the help you can get in order to find the best places where to put your money in.

Know your deductibles.

Review your tax code for the types of items that you can include in your deductibles.  Remember that not all expenses can be used as deductions.  Only if you can prove them ‘ordinary and necessary’ will the tax man consider them.

Keep all receipts for deductions.

Audit or no audit, it pays to have documents that support your tax claims, especially if they refer to deductions.  Get organized regarding your files, particularly those that pertain to your business or work.  Keep things where you can readily access them and use for reference later.

Consider leasing your business vehicle.

If you want to give yourself better tax performance, a good anti-recession tip to follow is to lease that car of yours.  This will help get you better deductions compared to what you’ll receive if you purchased the vehicle.

When in doubt, always refer to a professional.

The personal anti-recession tips you obtain will usually work seamlessly but some steps involving taxes might have certain limitations.  Before implementing these steps, you might want to consult a basic taxation guide or see an accountant or bookkeeper.  They can guide you on what you can and should do based on your own unique circumstances.

Related articles

• Simple Ways to Recession Proof Your Home (taylorbrownrealestatetalks.com)
• How to Write Off Sales Taxes (turbotax.intuit.com)
• Four Tax Tips to Reduce Your 2006 Taxes (turbotax.intuit.com)
• Video: Federal Tax Deductions for Home Renovation (turbotax.intuit.com)

Is It Possible to Save Money During a Recession

Saving Money During a Recession: Mission Impossible?

Recession is a word that fills people with dread and bad visions.  It’s a time people consider bad for finances, a time capable of magically shrinking a dollar’s value overnight.  It also automatically increases the cost of basic living.  And where money is a huge concern, people always ask, ‘Can I still save for real during a recession?’  The answer is: of course you can.  You just need to be wise and creative about the whole thing.  Here are ways how:

Plan your purchases.

By planning your purchases, you’re effectively planning your expenses.  This will help eliminate the danger of impulse buying and unnecessary spending.  Try to look at the bigger picture when it comes to your basic needs.

Plan for a week’s worth of groceries, for example, so you’ll have an idea of which items you truly need (and want) and which items you can do away with.  To make sure that you maximize your planning efforts, consider incorporating items on sale into your planning.  If there are foods on sale that week, for example, why not plan your week’s menu using what’s currently on slashed down prices?

Implement the ‘B’ word.

Budget, that is.  If you want to be able to save money during a recession, learn to discipline yourself and your family.  Using your plan as a reference, come up with a weekly or monthly budget and then stick to it.  If you must overshoot it, you should have a very good reason to do so.  Otherwise, don’t spend.

Keep an eye out for bargains and discounts.

Learn to monitor stores for seasonal sales.  You’ll save a lot of money by buying items on sale than in their regular prices.  During a recession, that’s considered wise spending.  Check out store or newspaper ads and don’t be shy about asking for cheaper alternatives, getting store rebates or using discount coupons.  Consider buying at discount stores as well.  Each dollar you don’t pay is a dollar you save.

Buy in bulk.

If there are items in your house that are often in use (paper towels, canned beans, yoghurt, etc.), consider buying in bulk.  Many stores offer items in packs, which means you’ll save money in the long run if you buy them instead of paying for individual items.

Put off bigger purchases.

A good rule of thumb is, if you can’t afford it, don’t buy it.  If, for example, you have enough money for a downpayment on a new LCD TV but will have to borrow money off your credit card just to tide you over for the next few weeks, it would be really insane to make a purchase.  Wait until you can truly, comfortably afford something.  The worst you can do during a recession is not just failing to get money saved but also going into debt.

Practice prevention, not cure.

If you look closely, there are many things you do in your home that are siphoning precious dollars from your wallet.  Simple steps such as repairing and maintaining your home and appliances, using more efficient equipment and cutting down on unnecessary consumption can do wonders for your wallet and piggy bank.  And what better way to treat a recession than to be prudent?

Earn extra money.

If, after all your efforts, the money you have saved is still not enough, don’t let recession get the better of you.  There are times when your efforts are just not sufficient – mostly because you don’t earn enough.  Instead of asking for a raise that might never occur or waiting for a promotion to drop on your lap, consider finding other means with which to earn (and save) money.

Consider getting a part-time job, work extra hours, do selling on the side or offer your skills as a freelancer.  The extra income you earn, along with your recession-powered money-saving plan, will help you make enough until after the tough times are over.

Related articles

• Simple Ways to Recession Proof Your Home (taylorbrownrealestatetalks.com)
• Tips for Buying Property During a Recession (taylorbrownrealestatetalks.com)
• Billeater: 9 Money Saving Tips to Help You Conserve Cash (savings.com)
• 7 Tips on Improving Personal Finance Post Recession (moneyning.com)

Has Your Credit Got You Down? There is Hope.

Today’s post is by Tara Colquitt, and she would like to share with you some tips on improving your credit.

 

“Though no one can go back and make a brand new start, anyone can start from now and make a brand new ending” – Carl Bard, theologian

 

Hello, I am Tara Colquitt, The Credit Woman. I am here to help you make a brand new ending.

 

Let’s first agree, credit
affects everything. But death, divorce, health issues and our all time favorite
un/under employment can cause anyone to have credit issues. However, credit
isn’t cancer. You can live with poor credit. It is just more expensive and
usually inconvenient. I am not here to make you feel less than Who You Are. I am
here to help you move from Where You Are. If you are ready. I cannot do this
without your
full cooperation. May I have your cooperation?

 

Great!
Then let’s do the following:

●Check your credit at www.annualcreditreport.com. It’s free. And it shows
the approximate date of removal from the report. Sometimes my advice to people with seriously challenged credit is to wait. They do not have the resources to get out of their situation but that is why you get a “do over” in 7+ years. But that does not mean to do nothing now.

●Make a budget and stick to it. Find your “Why”. Home, Savings, Education,
Retirement?

●Save $20 a week.

You can do this yourself, and some people do. But most don’t and
many don’t do it well. Did you pay the delinquent account without negotiating to have it removed from your credit report? Well, is difficult if not impossible to do anything once you have paid the creditor.
The hammer, your money, has been eliminated. Just as important to removing negative items is to build  credit. No one is going to loan you $100k if you can’t handle $1,000. You need to get a prepaid credit card and/or a secured bank loan. These are great trade-lines to build credit.

 

I am frequently asked how long does it take to improve your credit. Hmmm…how long does it take to lose weight? Well, it’s your effort, right? Breaking those habits. And so many other factors.  Budget and desire to make changes is key. If you do not have the money to repay debt or establish
a secured bank loan, it will take more time. I had a client in February I spoke
to on a Tuesday and by Thursday she did everything I advised her to do and then I had a client that after two years, she and her husband were ready to purchase a home. But they both had plans.

Now, I am also passionate about making myself obsolete. Any young adult with a job has the ability to establish excellent credit and purchase their first home within five years of graduation (high school or college). The concept is simple. Remember that $20, $20/week, $80/month which is approximately $1000 a year.  In 3 years that is $3000 and a starter home can be purchased with an FHA loan. This creates generational wealth. By the way, this concept works for anyone at any age. You must have a plan!

 

So, let me leave you with this offer: If you will not for any reason, but desire to carry out the advice I have just given, I can help you do this.

 

I am Tara Colquitt, The Credit Woman and I am here to help you Begin your New Ending.

Tara Colquitt, The Credit Woman
“Turning Self-Worth Into Net-Worth”
Tara@thecreditwoman.com
TheCreditWoman.com
www.SendOutCards.com/53116
215-350-2483 (c)
267-535-2907 (f)

Related articles

• 5 Tips for Checking Your Credit Report Before Buying a Home (doorfly.com)
• 7 Smart Tips For First-Time Homebuyers (casasugar.com)
• How does credit repair works (wiki.answers.com)

Latest Mortgage News

The latest news in mortgages from around the blogsphere:

Mortgage Rate At 38-Year Low
Wall Street Journal
By JOAN E. SOLSMAN Mortgage rates generally fell again this week, with the average rate on 30-year fixed-rate mortgages reaching the lowest level in at …

Weekly Mortgage Rates Reach Record Lows: Freddie : HousingWire …
By AUSTIN KILGORE
Freddie put the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) at 4.19% with an average 0.6 point, up from last week’s average 4.18%. The one-year Treasury-indexed ARM averaged 4.25% with an average 0.6 point, …

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• Why Now May Be a Good Time to Consider Refinancing a Mortgage (bucks.blogs.nytimes.com)
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• Homebuyers Give Thanks for Low Mortgage Rates (hsh.com)
• Mortgages Hit Five-Week Low (online.wsj.com)
• Mortgage rates edge higher says Bank of England (telegraph.co.uk)
• Mortgage lending drops amid warnings it will remain “subdued” (telegraph.co.uk)