Soft Market + Motivated Seller + 6% Seller Contribution = 5.50% Fixed Rate 30 Year Mortgage Rate Buydown
Published Thursday, November 8, 2007 by mortgage-lead-networkzglvcwpc.
An anomaly is defined as a deviation from the normal order. At this very moment in many real estate markets in many parts of the country a soft market can lead to opportunities for many buyers.
With many 30 year fixed rate loans with an 80% Loan To Value (LTV) the mortgage program guidelines will allow a seller to pay up to 6% of the buyers closing cost. For example if there is a negotiated sales price of $500,000 with an 80% LTV of $400,000. A seller contribution would be allowed up to 6% on $400,000 mounts up to $24,000. This would need to be a very motivated seller who needs to sell now. Unless a borrower tolerates total gouging on closing costs, this would be a heavy amount. However, a sum of $8,000 to $10,000 or less would handle the closing costs for this property, not including prepaids such as insurance and tax escrows. On the surface, it would seem the difference between $24,000 less say $10,000 would allow $14,000 in additional costs. With todays rates, a one percent (1%) lender discount could buy the rate down from say 6.25% to a rate of 5.5%. Thus, $400,000 x 1% = $4,000.00. A buyer borrower would need to be armed with the facts prior to negotiating a real estate contract so that the seller can determine their bottom line at closing.
For the benefit of the buyer, if they are going to stay in the home for a long-term period then there will be great benefits for the buyer to get a lower rate. Looking at the principal and interest payment for $400,000 at 6.25%, 30-year term the payments then is $2,462.87/month for principal and interest. With the same terms with a rate of 5.5% the payment is $2,271.16/month for principal and interest. That would result in a monthly savings of ($2,462.87- $2,271.16) is $191.71/month in savings versus a 6.25% interest rate.
Example of payment at 6.25% shows $2,462.87/month x 360 months = $886,633.20
Example of payment at 5.50% shows $2,271.16/month x 360 months = $817,617.60
Life Time Mortgage Savings------------- $ 69,015.60
A borrower simply being armed with the information on a rate buy down can enter negotiations that may lend some long term benefits. Six months ago, seller help was just a dream. Today, its a real consideration of any purchase. Will it last forever? No, its an anomaly. Temporary and fleeting. Sobuyers need to get it while they can.
Where are these opportunities to be found? In any area look for vacant homes, on a lock box with some sort of sales pressure. If the lender allows for a 6% seller contribution of the contract price on say an 80% Loan To Value loan then why not go for it. Many of these potential properties can be searched and identified using a Realtor and the local MLS system. Builders who are setting on a huge inventory of homes may be willing to grant major concessions in order to keep the price levels consistent until the home prices firm up. This would be a situation where a borrower would need to determine that the market in that particular subdivision is at a temporary lull and not a trend. Otherwise it would be a case of throwing good money after bad. Working with a Realtor who knows the market will go a long way in avoiding those kinds of pitfalls in builder subdivisions where resale homes are less than the new homes on the market. In that case, the builder is upside down on pricing. This will need to be avoided. What we are talking about here is temporary anomalies that a buyer will want to exploit, like now in the current market. The best evidence of a buyers market is where there are more homes for sale than ready buyers and there is a glut of homes on the market just sitting. A forest of for sale signs.
With lower priced homes with say FHA and VA loans there be an opportunity where the seller in addition to paying all the closing cost and prepaids could pay say 2 points to buy the rate down on a 2-1 Buydown Program. The beauty of this program allows a buyer to buy using a FHA mortgage with as little as a 3% investment and a VA mortgage with zero down. This is a great program of for Debt To Income challenged borrowers who are just squeaking into the property.
If the rate were 6.75% on a mortgage of $205,000 on a thirty-year basis the payment would normally be $1,329.63/month for principal and interest. If the taxes are $300/month, the hazard insurance is $220/month and Mortgage Insurance Premium (MIP) of $85.42/month then the total payment is $1,935.05 per month with $1,050 in installment and credit card debt for a total monthly debt load of $2,985.05 including the new housing expense. If the income were $6,395/month the Debt To Income (DTI) ratio would be around 47%. Lets assume, due to credit history and other factors, the underwriter is not willing to accept this level of DTI nor will any Automatic Underwriting system accept it. An alternative would be to consider the 2-1 Buydown Program with the first year interest rate of 6.75% - 2% = 4.75%, the second year would be 6.75%-1%= 5.75% with the third year and beyond 6.75%. With this program the borrower can qualify at the start rate of 4.75%. The principal and interest payment with this start rate is $1,069.38/month or $260.25/month less at the fully loaded rate of 6.75%. The DTI than is 42.60% and the underwriter will sign off on that. The theory is that the borrowers will have two years to cut debts and increase their income and get their ratios in a more satisfactory position.
Whats the point of all this. If the home is selling for $208,200 and the seller is willing to pay up to closing costs and prepaids which would be $208,200 x 6% = $12,492 and the costs add up to say $9,500, why not use the allowable seller contribution to buy down the loan rate. The main benefit is to get the borrowers DTI in line and lower the payment in the early years all funded with the seller contribution. VA loans can go much higher and in certain areas, FHA loans can go a lot higher as well.
This anomaly will not last. It is a buyers market so why not maximize the buyers benefits by applying part of the 6% sellers contribution to buy the loan down and not leave any money at the closing table which can be utilized for the buyers benefit. Negotiation is king.
Dale Rogers
http://www.sellerhelpsbuyer.com
http://www.brokencredit.com
Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog. The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending.Live Mortgage Leads
Mortgage Lead Programs
Exclusive Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Programs
Exclusive Mortgage Leads
With many 30 year fixed rate loans with an 80% Loan To Value (LTV) the mortgage program guidelines will allow a seller to pay up to 6% of the buyers closing cost. For example if there is a negotiated sales price of $500,000 with an 80% LTV of $400,000. A seller contribution would be allowed up to 6% on $400,000 mounts up to $24,000. This would need to be a very motivated seller who needs to sell now. Unless a borrower tolerates total gouging on closing costs, this would be a heavy amount. However, a sum of $8,000 to $10,000 or less would handle the closing costs for this property, not including prepaids such as insurance and tax escrows. On the surface, it would seem the difference between $24,000 less say $10,000 would allow $14,000 in additional costs. With todays rates, a one percent (1%) lender discount could buy the rate down from say 6.25% to a rate of 5.5%. Thus, $400,000 x 1% = $4,000.00. A buyer borrower would need to be armed with the facts prior to negotiating a real estate contract so that the seller can determine their bottom line at closing.
For the benefit of the buyer, if they are going to stay in the home for a long-term period then there will be great benefits for the buyer to get a lower rate. Looking at the principal and interest payment for $400,000 at 6.25%, 30-year term the payments then is $2,462.87/month for principal and interest. With the same terms with a rate of 5.5% the payment is $2,271.16/month for principal and interest. That would result in a monthly savings of ($2,462.87- $2,271.16) is $191.71/month in savings versus a 6.25% interest rate.
Example of payment at 6.25% shows $2,462.87/month x 360 months = $886,633.20
Example of payment at 5.50% shows $2,271.16/month x 360 months = $817,617.60
Life Time Mortgage Savings------------- $ 69,015.60
A borrower simply being armed with the information on a rate buy down can enter negotiations that may lend some long term benefits. Six months ago, seller help was just a dream. Today, its a real consideration of any purchase. Will it last forever? No, its an anomaly. Temporary and fleeting. Sobuyers need to get it while they can.
Where are these opportunities to be found? In any area look for vacant homes, on a lock box with some sort of sales pressure. If the lender allows for a 6% seller contribution of the contract price on say an 80% Loan To Value loan then why not go for it. Many of these potential properties can be searched and identified using a Realtor and the local MLS system. Builders who are setting on a huge inventory of homes may be willing to grant major concessions in order to keep the price levels consistent until the home prices firm up. This would be a situation where a borrower would need to determine that the market in that particular subdivision is at a temporary lull and not a trend. Otherwise it would be a case of throwing good money after bad. Working with a Realtor who knows the market will go a long way in avoiding those kinds of pitfalls in builder subdivisions where resale homes are less than the new homes on the market. In that case, the builder is upside down on pricing. This will need to be avoided. What we are talking about here is temporary anomalies that a buyer will want to exploit, like now in the current market. The best evidence of a buyers market is where there are more homes for sale than ready buyers and there is a glut of homes on the market just sitting. A forest of for sale signs.
With lower priced homes with say FHA and VA loans there be an opportunity where the seller in addition to paying all the closing cost and prepaids could pay say 2 points to buy the rate down on a 2-1 Buydown Program. The beauty of this program allows a buyer to buy using a FHA mortgage with as little as a 3% investment and a VA mortgage with zero down. This is a great program of for Debt To Income challenged borrowers who are just squeaking into the property.
If the rate were 6.75% on a mortgage of $205,000 on a thirty-year basis the payment would normally be $1,329.63/month for principal and interest. If the taxes are $300/month, the hazard insurance is $220/month and Mortgage Insurance Premium (MIP) of $85.42/month then the total payment is $1,935.05 per month with $1,050 in installment and credit card debt for a total monthly debt load of $2,985.05 including the new housing expense. If the income were $6,395/month the Debt To Income (DTI) ratio would be around 47%. Lets assume, due to credit history and other factors, the underwriter is not willing to accept this level of DTI nor will any Automatic Underwriting system accept it. An alternative would be to consider the 2-1 Buydown Program with the first year interest rate of 6.75% - 2% = 4.75%, the second year would be 6.75%-1%= 5.75% with the third year and beyond 6.75%. With this program the borrower can qualify at the start rate of 4.75%. The principal and interest payment with this start rate is $1,069.38/month or $260.25/month less at the fully loaded rate of 6.75%. The DTI than is 42.60% and the underwriter will sign off on that. The theory is that the borrowers will have two years to cut debts and increase their income and get their ratios in a more satisfactory position.
Whats the point of all this. If the home is selling for $208,200 and the seller is willing to pay up to closing costs and prepaids which would be $208,200 x 6% = $12,492 and the costs add up to say $9,500, why not use the allowable seller contribution to buy down the loan rate. The main benefit is to get the borrowers DTI in line and lower the payment in the early years all funded with the seller contribution. VA loans can go much higher and in certain areas, FHA loans can go a lot higher as well.
This anomaly will not last. It is a buyers market so why not maximize the buyers benefits by applying part of the 6% sellers contribution to buy the loan down and not leave any money at the closing table which can be utilized for the buyers benefit. Negotiation is king.
Dale Rogers
http://www.sellerhelpsbuyer.com
http://www.brokencredit.com
Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog. The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending.Live Mortgage Leads
Mortgage Lead Programs
Exclusive Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Programs
Exclusive Mortgage Leads
Super Bowl XL
Published by mortgage-lead-networkzglvcwpc.
This is it: Super Bowl Sunday! The old adage You win the turnover battle, you win the game, is especially true come playoff time. Looking back at last seasons game, we find that the Patriots won the turnover battle 4-1, largely because of three Donovan McNabb interceptions. The Pats won the game 24-21, though they failed to cover. The year before, the Patriots and Panthers were even in the turnover department, 1-1. New England won again, 32-29, but failed to cover. Before that the Bucs had a huge edge in turnovers and destroyed the Raiders as a dog, 48-21, and before that the Patriots were a 14-point dog but won the turnover battle 3-0 in upsetting the Rams, 20-17.
Overall, the turnover department is huge. So who has the edge this Sunday? The Steelers are +7 on the season in turnovers, and the Seahawks are +9. Not much of a difference. In the payoffs, the Steelers won the turnovers battle +2 in their win at Cincinnati, and repeated that in a 34-17 rout at Denver in the AFC Championship game with a +4 edge in turnovers. However, they were minus-2 against the Colts, yet won the game 21-18. Seattle won the turnover battle in the NFC Championship rout of Carolina (+4), but were actually minus-2 against the Redskins, but still prevailed, 20-10.
Perhaps the most intriguing aspect of this weeks Super Bowl preparation has been the war of words. Seattle TE Jerramy Stevens made the cardinal sin of dissing the enemy this week, saying about RB Jerome Bettis, "It's a heartwarming story and all that, but it will be a sad day when he leaves without that Super Bowl trophy. Oops! Big mistake. Seattle coaches no doubt took him aside and told him to keep his trap shut. The last thing anyone should do before a big game is give verbal fodder to fire up the opposition.
Pittsburgh linebacker Joey Porter responded by saying that the Steelers will be so physical in the Super Bowl they will try to make Seattle quit playing. Them sounds like fightin words, pardner! Porter said, "We're going to try to tap out as many people as we can. We're going to try to send as many people to the sideline as we can." Someone is going to look like a hero on Sunday night, saying the opponent fired them up.
Rest assured, players and coaches seize on stuff like this. I recall five years ago when the Steelers were a double digit favorite in the AFC Championship game over the Patriots and made comments about how they already had their bags packed for the Super Bowl. After the Patriots' 24-17 upset win, the New England players all spoke about how they were incensed that the Steelers would talk like that.
Added Porter, "Tell him he's soft. He's a tight end and I've never, ever been afraid of a tight end. They better not make him block me on Sunday. I bet they're not going to make that coaching mistake. Wow! You dont usually hear trash talk like that the week of the Super Bowl.
Perhaps the most important thing to assess before this game is that the Seahawks have been outstanding at home the last few years, but mediocre on the road. Even this season they were 5-3 on the road, winning both playoff games at home. They have a significant edge at home partly because its a long road trip for opponents to Seattle, and also because of their 12th man -- their raucous fans. That home field caused more opponents to be called for false starts than at any other venue in the NFL this season. Thats also an edge the Seahawks wont be bringing to Detroit on Sunday. And theyll be facing a tough, Pittsburgh team that just dispatched Cincinnati, Indy and Denver all on the road! If Seattle wins this title, they will have to earn it without those edges. Good luck, as always...
Live Mortgage LeadsExclusive Mortgage Leads
Live Mortgage Leads
Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
Mortgage Leads
Exclusive Mortgage Leads
Commentary By Douglas R. Andrew on the Federal Reserve Bank of Chicago Study
Published by mortgage-lead-networkzglvcwpc.
The Tradeoff between Mortgage Prepayments and Tax-Deferred Retirement Savings
From the Working Papers of the Federal Reserve Bank of Chicago
By Gene Amromin, Jennifer Huang, and Clemens Sialm,
One of our own federal banksChicago's Federal Reserve Bankhas determined that by accelerating mortgage payments instead of stashing money in tax-deferred accounts, more than one in three Americans are making the "wrong choice ," and are giving up potentially important arbitrage gains.
The mortgage overpayments, the Fed's recent report says, is a "mis-allocation" of funds that costs people $1.5-billion a year. If consumers changed their allocation by not sending excess payments to their mortgage company, and instead put that money in some form of tax-advantaged savings, they would reap a median gain of between 11 and 17 cents per dollar.
This is the very first time the Fed has compared these two kinds of "savings," write the authors. They conclude that "many households have significant amount of money" in both tax-favored and taxable accounts, but that a "large proportion" of American taxpayers apparently are not taking the smarter route to asset allocation, which would put substantially more money in their retirement savings.
I am delighted to see that the Fed's own experts now believe deductible mortgage interest can be an excellent choice for many taxpayers to use in structuring their retirement funding strategy, even though I do not agree with the report's narrow focus on only qualified plans such as IRAs and 401(k)s.
What's more, the paper says arbitrage is a "rather conservative" way of optimizing retirement wealth. Taxpayers gain when interest rates go up, since the newly invested amount earns higher rates than the mortgage debt costs. Should interest rates go down, taxpayers still come out ahead, because they are "likely to exercise their option to refinance," thus "reducing the downside risk of the arbitrage strategy."
The Fed report ends by saying that despite the risks (and rememberthere are risks associated with all investment strategies), saving retirement money in a tax-deferred plan "has the additional benefit of providing a good hedge against the combination of housing price risk and liquidity risk."
Finally, the Fed says that taxpayers with incomes over $100,000 a year who use mortgage-deductible interest as part of an arbitrage strategy in retirement accounts would appear to have the most to gain, and the authors find it "puzzling" that more people who are in "better financial shape" than the average taxpayer don't take advantage of this kind of strategy.
I have no idea if the authors of this Federal Reserve paper have read my Missed Fortune books or have heard of me. But it is gratifying to see government experts themselves validate and support a key element of my wealth optimization program. If you would like to read the entire study, it is available at http://www.MissedFortune.com/ChicagoFedStudy as found in the "working papers" section of the Federal Reserve Bank of Chicago's Web site.
The study also points out that:
* 46.1 percent of households are prepaying their mortgage by an average of $3,140 per year
* only 49 percent of households relied on advice from professionals
* having access to better financial information (financial advisor or personal education) substantially increases the likelihood of making the right choice
The key reasons Americans make these mistakes are:
* not having resources to make decisions
* greater emphasis on savings habits they perceive as more liquid
* limited information on the cost-benefit analysis
* rational response to institutional factors
The actual quote from the abstract at the beginning of the report reads as follows:
We show that a significant number of households can perform a tax arbitrage by cutting back on their additional mortgage payments and increasing their contributions to tax-deferred accounts. Using data from the Survey of Consumer Finances, we show that about 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice. For these households, reallocating their savings can yield a mean benefit of 11 to 17 cents per dollar, depending on the choice of investment assets in the tax deferred accounts. In the aggregate, these misallocated savings are costing U.S. households as much as 1.5 billion dollars per year
http://www.missedfortune.com
Douglas R. Andrew is the founder of the Missed Fortune movement, a national revolution in financial planning launched by his best-selling books, Missed Fortune: Dispel the Money Myth-ConceptionsIsnt It Time You Became Wealthy? and Missed Fortune 101 (both published by Warner Business Books).Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
Live Mortgage Leads
Mortgage Lead Transfers
Live Mortgage Leads
Live Mortgage Leads
From the Working Papers of the Federal Reserve Bank of Chicago
By Gene Amromin, Jennifer Huang, and Clemens Sialm,
One of our own federal banksChicago's Federal Reserve Bankhas determined that by accelerating mortgage payments instead of stashing money in tax-deferred accounts, more than one in three Americans are making the "wrong choice ," and are giving up potentially important arbitrage gains.
The mortgage overpayments, the Fed's recent report says, is a "mis-allocation" of funds that costs people $1.5-billion a year. If consumers changed their allocation by not sending excess payments to their mortgage company, and instead put that money in some form of tax-advantaged savings, they would reap a median gain of between 11 and 17 cents per dollar.
This is the very first time the Fed has compared these two kinds of "savings," write the authors. They conclude that "many households have significant amount of money" in both tax-favored and taxable accounts, but that a "large proportion" of American taxpayers apparently are not taking the smarter route to asset allocation, which would put substantially more money in their retirement savings.
I am delighted to see that the Fed's own experts now believe deductible mortgage interest can be an excellent choice for many taxpayers to use in structuring their retirement funding strategy, even though I do not agree with the report's narrow focus on only qualified plans such as IRAs and 401(k)s.
What's more, the paper says arbitrage is a "rather conservative" way of optimizing retirement wealth. Taxpayers gain when interest rates go up, since the newly invested amount earns higher rates than the mortgage debt costs. Should interest rates go down, taxpayers still come out ahead, because they are "likely to exercise their option to refinance," thus "reducing the downside risk of the arbitrage strategy."
The Fed report ends by saying that despite the risks (and rememberthere are risks associated with all investment strategies), saving retirement money in a tax-deferred plan "has the additional benefit of providing a good hedge against the combination of housing price risk and liquidity risk."
Finally, the Fed says that taxpayers with incomes over $100,000 a year who use mortgage-deductible interest as part of an arbitrage strategy in retirement accounts would appear to have the most to gain, and the authors find it "puzzling" that more people who are in "better financial shape" than the average taxpayer don't take advantage of this kind of strategy.
I have no idea if the authors of this Federal Reserve paper have read my Missed Fortune books or have heard of me. But it is gratifying to see government experts themselves validate and support a key element of my wealth optimization program. If you would like to read the entire study, it is available at http://www.MissedFortune.com/ChicagoFedStudy as found in the "working papers" section of the Federal Reserve Bank of Chicago's Web site.
The study also points out that:
* 46.1 percent of households are prepaying their mortgage by an average of $3,140 per year
* only 49 percent of households relied on advice from professionals
* having access to better financial information (financial advisor or personal education) substantially increases the likelihood of making the right choice
The key reasons Americans make these mistakes are:
* not having resources to make decisions
* greater emphasis on savings habits they perceive as more liquid
* limited information on the cost-benefit analysis
* rational response to institutional factors
The actual quote from the abstract at the beginning of the report reads as follows:
We show that a significant number of households can perform a tax arbitrage by cutting back on their additional mortgage payments and increasing their contributions to tax-deferred accounts. Using data from the Survey of Consumer Finances, we show that about 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice. For these households, reallocating their savings can yield a mean benefit of 11 to 17 cents per dollar, depending on the choice of investment assets in the tax deferred accounts. In the aggregate, these misallocated savings are costing U.S. households as much as 1.5 billion dollars per year
http://www.missedfortune.com
Douglas R. Andrew is the founder of the Missed Fortune movement, a national revolution in financial planning launched by his best-selling books, Missed Fortune: Dispel the Money Myth-ConceptionsIsnt It Time You Became Wealthy? and Missed Fortune 101 (both published by Warner Business Books).Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
Live Mortgage Leads
Mortgage Lead Transfers
Live Mortgage Leads
Live Mortgage Leads
Didier Drogba and the Ivory Coast Men's National Soccer Team
Published by mortgage-lead-networkzglvcwpc.
Didier Drogba was a smash hit at the African Nations Cup which was produced by CAF (Confederation of African Football) and hosted in Egypt. The final with Ivory Coast took place on February 10 2006 and was won by the host country Egypt 4-2 on penalty shoot-out.
Didier Drogba had the most impact of any other national player of any other of the participaying teams during the course of the intra African match-ups. He is essentially a centeral force on any of the teams he has played on.. This also includes Chelsea of the English Premier League of which he is also a striker.
For team mate, Toure, Drogba presents a potentially decisive edge in the first competitive meeting between Ivory Coast and Nigeria since the 1994 Nations Cup semi-final won by the Nigerians on penalties.
"Drogba is a really great player and he is something special. We are really proud of what hehas a done for the team". "It's going to be a very hard game. But now we are in the semi-finals, anything can happen. We've got our chance," said defender Toure.
Seconds into the second half, the whole difference was made when Drogba netted his fourth goal of the tournament and the Elephants could afford to sit back for most of the second half. The goal stung the Nigerian bench who immediately replaced Mikel Obi with Jay Jay Okocha and Kanu Nwankwo with Julius Aghahowa, but still the Nigerians could not turn the game round. This is the first time the Ivorians, who have qualified for the World cup, will have played in the final since winning the title in 1992 in Senegal.
The Egyptians must thank goalkeeper Essam EL Hadary for saving two penalties as Ivory Coasts Didier Drogba missed a crucial first spot kick for the Elephants.
COTE D'IVOIRE (Ivory Coast) National Team Line-up
01.Tizie Jean-Jacques Hobrou
02.Akale Kanga Gauthier
03.Boka Etienne Arthur
04.Toure Kolo Abib
05.Zokora Deguy Alain Didier
06.Kouassi Koffiblaise
07.Fae Emerse
09.Kone Arouna
11.Drogba Tebily Didier Yves
21.Eboue Emmanuel
19.Toure Yaya Gnegneri
How many of these following substitutes will make their way to other Premier League teams in Europe and Asia?
10.Yapi Yapo Gilles Donald
08.Kalou Bonaventure
14.Kone Bakari
15.Dindane Aruna
16.Gnanhouan G. Amoukou Okosias
17.Domoraud Depri Cyrille Leandre
18.Tiene Siaka
22.N'dri Koffi Christian Romaric
23.Barry Boubacar
20.Demel Guy Roland
12.Meite Abdoulaye
13.Zoro Kpolo Marc Andre
The battle for African Footballer of the year
Drogba overshadowed Samuel Eto'o, his rival for the African Footballer of the Year award usually held in late February. Didier Drogba scored the decisive penalty to put Ivory Coast into the last four in a dramatic shootout victory over Cameroon in Cairo.However it might be blindsided by a contender from Egypt. Could Mido be in the mix?
Live Mortgage LeadsLive Mortgage Leads
Exclusive Mortgage Leads
Voice Broadcasting
Live Mortgage Leads
Voice Broadcasting
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Where To Get Money For A Franchise Idea
Published by mortgage-lead-networkzglvcwpc.
How often have you thumbed through a business opportunity magazine, noticed a franchise opportunity advertisement, and felt you'd really like to get in on that...if only you had the money? If you're like most who are seeking greater opportunity and wealth, this probably happens with you more often than you care to admit, except perhaps in strictly private conversations.
When the average person sees one of these opportunities, or comes up with a similar idea of his own, the problems of start-up capital may seem formidable. But in reality, they may not be. In fact, just about anyone with a good credit record and an "insider's sense of business" can get the capital he or she needs, whenever it's needed. The secret is in knowing how to put together a proper proposal, and to present it to the right per son. These are the "how-to" instructions we're going to give you in this report.
The first thing you're going to need is a complete business plan. This is a complete and detailed description of exactly how you intend to operate the proposed business. Your business plan should detail precisely the product or products you plan to sell; how you're going to produce or manufacture the product; your costs (inventory costs if you're purchasing them from a supplier); who is going to sell those products for you; how they're going to be sold; the attendant costs; when you expect to recoup your initial investment; your plans for growth or expansion; and the total dollar amount you're going to need to make it all work according to your plan. Your business plan must be detailed - complete with projected income and expense figures - through at least the first three years of business.
Now, assuming you have your business plan all worked out, put together and ready for presentation with your request for capital, let's talk about your capitalization proposal.
First, keep in mind that whenever you ask somebody for money, whether it's for a small personal loan or a large amount of money to finance a business, you're involved in a selling situation. You have to prepare a "sales presentation" just as if you were getting ready to sell an automobile or refrigerator. Within this sales presentation you must have all the facts and figures; you must anticipate the questions and the possible objections of the prospective lender with answers or explanations; and you must "package" it as impressively as you would yourself for an audience with the president of IBM or General Motors.
The more money you ask for, the more "in-the-know" will be the people you want to borrow from, and so the more detailed and organized your proposal must be. This shouldn't cause you too much worry however, because you can hire a CPA to help you put it together properly, once you've got the facts and have a business plan he can work from. See Http://workathomecoop.com
Look at it this way: The more money you request for your business, the more your lenders or prospective investors are going to want to know about you, your planning, and your business. They want to be impressed with the fact that you've done your homework; they want to see that you've researched everything and documented your facts and figures; they want to be assured by your presentation that investing in your business will make money for them. It's just that simple at the bottom line. Unless you can instill confidence in them with your business plan and loan or investment proposal, they're just not going to give much positive thought to your request for capitalization.
So you'll need a balance sheet describing your net worth - the worth of what you own compared to the amount of money you owe. You'll also have to prove your stability and money-management talents relative to how successful you've been in paying off past obligations. If you have had credit problems in the past, get them "cleaned up", or at least explained on your file at your local credit bureau office. Under the law, credit bureaus are required to give you all the information they have about you in their files, and it's your right to correct any errors or enter explanations regarding negative reports on your credit. Do this without fail because prospective lenders or investors will definitely check your credit history.
So, now you have your balance sheet prepared; your credit history organized in a light that's favorable to you; your business plan (with costs and income projected over the coming three years), you're ready to start looking for lenders or investors.
Almost all franchisors offer help in setting up with one of their franchises. Most will go out of their way to assist you in getting the financing you need. Some will lend you the entire amount, with payments coming out of the income they expect you to make from their franchise operation. Many will carry this loan themselves, while others will carry part of it and find you a lender to finance the remainder.
Franchisors have two objectives in mind when they offer franchises to the public: They are trying to expand their operation, thus increasing their profit, and they are trying to raise capital for themselves. Generally speaking, if you have a good credit history, and if they feel you have the necessary business personality to achieve success with one of their operations, they'll do everything within their power to get you in a franchise outlet. Keep this in mind the next time you see an advertisement for a promising franchise opportunity requiring a substantial amount of cash outlay. You don't necessarily have to have all the money. They want you, and they'll help you!
Many people seem to be unaware that most of today's largest corporations started on a shoestring - on borrowed money. Many people seem to feel that unless they've got it all "in hand" in savings, then they'll just have to keep plugging away until they can save up enough to take the big plunge. Nothing could be farther from the truth. Just a quick bit of research will show that 999 out of every 1,000 businesses were begun on borrowed money.
Look to your family and friends for financial help. Approach them in a business-like manner; tell them about your idea or plans, and ask them for a loan. Agree to sign a formal statement to pay them back in three, five or ten years, with interest.
When you have your proposal assembled, you might even want to think of a limited partnership or even a general partnership arrangement as a way to finance your project. In any kind of partnership, each partner shares in the profits of the company, but in a limited partnership, each person's loss liability is limited to the amount of money he initially invested. The truth is, in this kind of a situation, you'll be doing all the work and sharing your gain with your partners, but then it's a fairly sure way to obtain needed financing.
Another common method of obtaining business financing is through second mortgage loans on a home or existing piece of property. Say you purchased a home ten years ago for $35,000, and today the assessed valuation is $85,000, with a mortgage of $25,000 still outstanding. A lender may consider your home to be security or collateral for a loan up to $60,000. In many instances, this is the easiest and surest way of getting the money needed for franchise or other business investment. And, it makes sense; you've got "net worth" available that is doing nothing but sitting there. Take this equity and invest it in a worthwhile business, and you could double or triple your net worth each year for the rest of your life.
Deciding to obtain a second mortgage on your home in order to finance a business opportunity is without doubt a major decision, but if you are sure about your investment project, and are determined to succeed, you owe it to yourself to go ahead. You could incorporate yourself, borrow money from your family through a second mortgage on your home, and protect against the loss of your home through the Federal Home stead Act. The important point here is that all business opportunities involve risk and sacrifice. It's up to you to determine the feasibility of your success with your proposed venture, then decide on the best way possible to proceed.
In every instance where you run into reluctance on the part of a lender to lend you the money you need, explore the feasibilities of "two-name" or "co-signed" loans. You can have the franchisor sign with you, or one of your suppliers, a business associate or even a friend. Oftentimes you can borrow or rent collateral such as stocks, bonds, time certificates, business equipment or real estate, and in this way give greater confidence to the lender in you r abilities to repay the loan. Whenever you can show a contract from someone who has agreed to purchase a certain number of your products or services over a specified period of time, you have another important piece of paper that most lenders will accept as collateral. Still an other possibility might be to get a bank or a firm that has loaned you money in the past to guarantee your loan. They simply guarantee that they'll lend you money in the future if ever the need should arise.
Going straight to you neighborhood bank, applying for a business loan and walking out with the money is just about the most unlikely of all your possibilities. Banks want to lend money, and they must lend money in order to stay in business, but most banks are notoriously conservative and extremely reluctant to lend you money unless you have a "regular income" that "guarantees" repayment. If and when you approach a bank for a business loan, you'll need all your papers in order - your financial statement, your business plan, credit history and all the endorsements you can get relative to your succeeding with your planned enterprise. In addition, it would be a good idea to take along your accountant just to assure the banker that your plan is verifiable. In the end, you'll find that it all boils down to whether or not the bank officer studying your application is sold on you as a good credit risk. Thus you must impress the banker - not only with your proposal, but with your appearance and personality as well. In dealing with bankers, never show an attitude of doubt or apology. Always be positive and sure of yourself. However, don't come on so strong to them that you're either demanding or overbearing. Just look good, know your stuff, and project an attitude of determination to succeed.
Your best bet, in attempting to get a business loan from a bank, is to deal with commercial banks. These are the banks that specialize in investment loans for going businesses, real estate construction, and even venture programs. Look in the yellow pages of your telephone or business directories; call and ask for an appointment with the manager; and then explore with him the possibilities of a loan for your project. One of the "nice things" about commercial banks is that even though they may not be able to approve a loan for your business ideas, they will almost always give you a list of names of business people who might be interested in looking over your proposal for investment purposes.
A lot of commercial banks stage investment lectures and seminars for the general public. If you find one that does, attend. You'll meet a lot of local business people, some of whom may be able to and interested in helping you with your business plans.
When you're looking for money to move on a business deal, it does not really matter where the money comes from, or how it all comes about. It's important that you get the money, and at terms that are suitable to you. Thus, don't overlook the possibilities of an advertisement for a lender or investor in your local papers. Place your ad as well in national publications reaching people looking for investments. Other avenues to seriously consider are foundations that offer grants, local dental and medical investment groups, legal investment groups, business associations, trust companies and other groups or organizations looking for tax shelters.
Basically, it isn't a good idea to go to a finance company or other commercial lender of this type for a business loan. The most obvious reason is the high interest rates you have to pay. These companies borrow money from larger money lenders, and then turn around and lend it to you at a higher interest rate than they pay. Herein lies the means by which they make money from granting loans to you. The more it costs them to provide the money for you, the more it's going to cost you to borrow their money. The only element in your favor when borrowing from one of these agencies is that most will generally lend you money against collateral other lenders just won't accept. Insurance companies, pension funds, and commercial paper houses are not too out of sight with their interest rates, but they generally will not even consider talking to you unless you're requesting $500,000 or more. They'll also pretty much require that your business proposal be backed by the best possible plan.
Finally, the bottom line is this: You must have a well-researched and detailed business plan; you must have all your documents and projections put together in an impressive presentation; and then, you will have to be the one who does the final selling of your proposal to the investor or lender. This means your appearance, personality and attitude, because - make no mistake about it - before anyone lends you any size able amount of money, they're going to want to take a close look at you personally before they hand over the money.
Actually, the different ways of financing a franchise opportunity are as many and varied as your own creativity. The sources of obtaining money are virtually limitless, and available to anyone with an idea.
One word of caution before you jump into any franchise purchase agreement: The price you pay to participate in a franchise operation is not always the total cost involved in getting the business off the ground. With some franchise operations, you may find other costs such as down payments on the purchase of property, building construction costs, remodeling or site improvements, equipment, fixtures, signs, advertising, and training. Virtually all franchise deals require that in addition to the purchase price or the license fee of the franchise, you're required to give a certain percentage of your gross business income to the franchisor, plus extra payments for promotion and administrative costs. Above all else, before you get involved in a franchise, or any business venture for that matter, make sure you've conducted a complete and thorough investigation of the opportunity presented. If it's a good deal, then go with it; but if you have any doubts or feel as though you're getting in over your head, back off and look around for something not quite so ambitious, or perhaps expensive.
There are a lot of good franchise opportunities, and some not so good. It's important that you be sure of what you're investing in, and that you can make money with it. From there, preparing the proper business plan and the necessary financing, while not always a snap, can be done. Now's the time to do it! We wish you outstanding success with your franchise business.
Andrew Adams writes for http://www.magfranchise.org where you can find out more about franchising and other topics.Exclusive Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Mortgage Leads
Mortgage Leads
Exclusive Mortgage Leads
Mortgage Lead Transfers
Exclusive Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
When the average person sees one of these opportunities, or comes up with a similar idea of his own, the problems of start-up capital may seem formidable. But in reality, they may not be. In fact, just about anyone with a good credit record and an "insider's sense of business" can get the capital he or she needs, whenever it's needed. The secret is in knowing how to put together a proper proposal, and to present it to the right per son. These are the "how-to" instructions we're going to give you in this report.
The first thing you're going to need is a complete business plan. This is a complete and detailed description of exactly how you intend to operate the proposed business. Your business plan should detail precisely the product or products you plan to sell; how you're going to produce or manufacture the product; your costs (inventory costs if you're purchasing them from a supplier); who is going to sell those products for you; how they're going to be sold; the attendant costs; when you expect to recoup your initial investment; your plans for growth or expansion; and the total dollar amount you're going to need to make it all work according to your plan. Your business plan must be detailed - complete with projected income and expense figures - through at least the first three years of business.
Now, assuming you have your business plan all worked out, put together and ready for presentation with your request for capital, let's talk about your capitalization proposal.
First, keep in mind that whenever you ask somebody for money, whether it's for a small personal loan or a large amount of money to finance a business, you're involved in a selling situation. You have to prepare a "sales presentation" just as if you were getting ready to sell an automobile or refrigerator. Within this sales presentation you must have all the facts and figures; you must anticipate the questions and the possible objections of the prospective lender with answers or explanations; and you must "package" it as impressively as you would yourself for an audience with the president of IBM or General Motors.
The more money you ask for, the more "in-the-know" will be the people you want to borrow from, and so the more detailed and organized your proposal must be. This shouldn't cause you too much worry however, because you can hire a CPA to help you put it together properly, once you've got the facts and have a business plan he can work from. See Http://workathomecoop.com
Look at it this way: The more money you request for your business, the more your lenders or prospective investors are going to want to know about you, your planning, and your business. They want to be impressed with the fact that you've done your homework; they want to see that you've researched everything and documented your facts and figures; they want to be assured by your presentation that investing in your business will make money for them. It's just that simple at the bottom line. Unless you can instill confidence in them with your business plan and loan or investment proposal, they're just not going to give much positive thought to your request for capitalization.
So you'll need a balance sheet describing your net worth - the worth of what you own compared to the amount of money you owe. You'll also have to prove your stability and money-management talents relative to how successful you've been in paying off past obligations. If you have had credit problems in the past, get them "cleaned up", or at least explained on your file at your local credit bureau office. Under the law, credit bureaus are required to give you all the information they have about you in their files, and it's your right to correct any errors or enter explanations regarding negative reports on your credit. Do this without fail because prospective lenders or investors will definitely check your credit history.
So, now you have your balance sheet prepared; your credit history organized in a light that's favorable to you; your business plan (with costs and income projected over the coming three years), you're ready to start looking for lenders or investors.
Almost all franchisors offer help in setting up with one of their franchises. Most will go out of their way to assist you in getting the financing you need. Some will lend you the entire amount, with payments coming out of the income they expect you to make from their franchise operation. Many will carry this loan themselves, while others will carry part of it and find you a lender to finance the remainder.
Franchisors have two objectives in mind when they offer franchises to the public: They are trying to expand their operation, thus increasing their profit, and they are trying to raise capital for themselves. Generally speaking, if you have a good credit history, and if they feel you have the necessary business personality to achieve success with one of their operations, they'll do everything within their power to get you in a franchise outlet. Keep this in mind the next time you see an advertisement for a promising franchise opportunity requiring a substantial amount of cash outlay. You don't necessarily have to have all the money. They want you, and they'll help you!
Many people seem to be unaware that most of today's largest corporations started on a shoestring - on borrowed money. Many people seem to feel that unless they've got it all "in hand" in savings, then they'll just have to keep plugging away until they can save up enough to take the big plunge. Nothing could be farther from the truth. Just a quick bit of research will show that 999 out of every 1,000 businesses were begun on borrowed money.
Look to your family and friends for financial help. Approach them in a business-like manner; tell them about your idea or plans, and ask them for a loan. Agree to sign a formal statement to pay them back in three, five or ten years, with interest.
When you have your proposal assembled, you might even want to think of a limited partnership or even a general partnership arrangement as a way to finance your project. In any kind of partnership, each partner shares in the profits of the company, but in a limited partnership, each person's loss liability is limited to the amount of money he initially invested. The truth is, in this kind of a situation, you'll be doing all the work and sharing your gain with your partners, but then it's a fairly sure way to obtain needed financing.
Another common method of obtaining business financing is through second mortgage loans on a home or existing piece of property. Say you purchased a home ten years ago for $35,000, and today the assessed valuation is $85,000, with a mortgage of $25,000 still outstanding. A lender may consider your home to be security or collateral for a loan up to $60,000. In many instances, this is the easiest and surest way of getting the money needed for franchise or other business investment. And, it makes sense; you've got "net worth" available that is doing nothing but sitting there. Take this equity and invest it in a worthwhile business, and you could double or triple your net worth each year for the rest of your life.
Deciding to obtain a second mortgage on your home in order to finance a business opportunity is without doubt a major decision, but if you are sure about your investment project, and are determined to succeed, you owe it to yourself to go ahead. You could incorporate yourself, borrow money from your family through a second mortgage on your home, and protect against the loss of your home through the Federal Home stead Act. The important point here is that all business opportunities involve risk and sacrifice. It's up to you to determine the feasibility of your success with your proposed venture, then decide on the best way possible to proceed.
In every instance where you run into reluctance on the part of a lender to lend you the money you need, explore the feasibilities of "two-name" or "co-signed" loans. You can have the franchisor sign with you, or one of your suppliers, a business associate or even a friend. Oftentimes you can borrow or rent collateral such as stocks, bonds, time certificates, business equipment or real estate, and in this way give greater confidence to the lender in you r abilities to repay the loan. Whenever you can show a contract from someone who has agreed to purchase a certain number of your products or services over a specified period of time, you have another important piece of paper that most lenders will accept as collateral. Still an other possibility might be to get a bank or a firm that has loaned you money in the past to guarantee your loan. They simply guarantee that they'll lend you money in the future if ever the need should arise.
Going straight to you neighborhood bank, applying for a business loan and walking out with the money is just about the most unlikely of all your possibilities. Banks want to lend money, and they must lend money in order to stay in business, but most banks are notoriously conservative and extremely reluctant to lend you money unless you have a "regular income" that "guarantees" repayment. If and when you approach a bank for a business loan, you'll need all your papers in order - your financial statement, your business plan, credit history and all the endorsements you can get relative to your succeeding with your planned enterprise. In addition, it would be a good idea to take along your accountant just to assure the banker that your plan is verifiable. In the end, you'll find that it all boils down to whether or not the bank officer studying your application is sold on you as a good credit risk. Thus you must impress the banker - not only with your proposal, but with your appearance and personality as well. In dealing with bankers, never show an attitude of doubt or apology. Always be positive and sure of yourself. However, don't come on so strong to them that you're either demanding or overbearing. Just look good, know your stuff, and project an attitude of determination to succeed.
Your best bet, in attempting to get a business loan from a bank, is to deal with commercial banks. These are the banks that specialize in investment loans for going businesses, real estate construction, and even venture programs. Look in the yellow pages of your telephone or business directories; call and ask for an appointment with the manager; and then explore with him the possibilities of a loan for your project. One of the "nice things" about commercial banks is that even though they may not be able to approve a loan for your business ideas, they will almost always give you a list of names of business people who might be interested in looking over your proposal for investment purposes.
A lot of commercial banks stage investment lectures and seminars for the general public. If you find one that does, attend. You'll meet a lot of local business people, some of whom may be able to and interested in helping you with your business plans.
When you're looking for money to move on a business deal, it does not really matter where the money comes from, or how it all comes about. It's important that you get the money, and at terms that are suitable to you. Thus, don't overlook the possibilities of an advertisement for a lender or investor in your local papers. Place your ad as well in national publications reaching people looking for investments. Other avenues to seriously consider are foundations that offer grants, local dental and medical investment groups, legal investment groups, business associations, trust companies and other groups or organizations looking for tax shelters.
Basically, it isn't a good idea to go to a finance company or other commercial lender of this type for a business loan. The most obvious reason is the high interest rates you have to pay. These companies borrow money from larger money lenders, and then turn around and lend it to you at a higher interest rate than they pay. Herein lies the means by which they make money from granting loans to you. The more it costs them to provide the money for you, the more it's going to cost you to borrow their money. The only element in your favor when borrowing from one of these agencies is that most will generally lend you money against collateral other lenders just won't accept. Insurance companies, pension funds, and commercial paper houses are not too out of sight with their interest rates, but they generally will not even consider talking to you unless you're requesting $500,000 or more. They'll also pretty much require that your business proposal be backed by the best possible plan.
Finally, the bottom line is this: You must have a well-researched and detailed business plan; you must have all your documents and projections put together in an impressive presentation; and then, you will have to be the one who does the final selling of your proposal to the investor or lender. This means your appearance, personality and attitude, because - make no mistake about it - before anyone lends you any size able amount of money, they're going to want to take a close look at you personally before they hand over the money.
Actually, the different ways of financing a franchise opportunity are as many and varied as your own creativity. The sources of obtaining money are virtually limitless, and available to anyone with an idea.
One word of caution before you jump into any franchise purchase agreement: The price you pay to participate in a franchise operation is not always the total cost involved in getting the business off the ground. With some franchise operations, you may find other costs such as down payments on the purchase of property, building construction costs, remodeling or site improvements, equipment, fixtures, signs, advertising, and training. Virtually all franchise deals require that in addition to the purchase price or the license fee of the franchise, you're required to give a certain percentage of your gross business income to the franchisor, plus extra payments for promotion and administrative costs. Above all else, before you get involved in a franchise, or any business venture for that matter, make sure you've conducted a complete and thorough investigation of the opportunity presented. If it's a good deal, then go with it; but if you have any doubts or feel as though you're getting in over your head, back off and look around for something not quite so ambitious, or perhaps expensive.
There are a lot of good franchise opportunities, and some not so good. It's important that you be sure of what you're investing in, and that you can make money with it. From there, preparing the proper business plan and the necessary financing, while not always a snap, can be done. Now's the time to do it! We wish you outstanding success with your franchise business.
Andrew Adams writes for http://www.magfranchise.org where you can find out more about franchising and other topics.Exclusive Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Mortgage Leads
Mortgage Leads
Exclusive Mortgage Leads
Mortgage Lead Transfers
Exclusive Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Soft Market + Motivated Seller + 6% Seller Contribution = 5.50% Fixed Rate 30 Year Mortgage Rate Buydown
Published by mortgage-lead-networkzglvcwpc.
An anomaly is defined as a deviation from the normal order. At this very moment in many real estate markets in many parts of the country a soft market can lead to opportunities for many buyers.
With many 30 year fixed rate loans with an 80% Loan To Value (LTV) the mortgage program guidelines will allow a seller to pay up to 6% of the buyers closing cost. For example if there is a negotiated sales price of $500,000 with an 80% LTV of $400,000. A seller contribution would be allowed up to 6% on $400,000 mounts up to $24,000. This would need to be a very motivated seller who needs to sell now. Unless a borrower tolerates total gouging on closing costs, this would be a heavy amount. However, a sum of $8,000 to $10,000 or less would handle the closing costs for this property, not including prepaids such as insurance and tax escrows. On the surface, it would seem the difference between $24,000 less say $10,000 would allow $14,000 in additional costs. With todays rates, a one percent (1%) lender discount could buy the rate down from say 6.25% to a rate of 5.5%. Thus, $400,000 x 1% = $4,000.00. A buyer borrower would need to be armed with the facts prior to negotiating a real estate contract so that the seller can determine their bottom line at closing.
For the benefit of the buyer, if they are going to stay in the home for a long-term period then there will be great benefits for the buyer to get a lower rate. Looking at the principal and interest payment for $400,000 at 6.25%, 30-year term the payments then is $2,462.87/month for principal and interest. With the same terms with a rate of 5.5% the payment is $2,271.16/month for principal and interest. That would result in a monthly savings of ($2,462.87- $2,271.16) is $191.71/month in savings versus a 6.25% interest rate.
Example of payment at 6.25% shows $2,462.87/month x 360 months = $886,633.20
Example of payment at 5.50% shows $2,271.16/month x 360 months = $817,617.60
Life Time Mortgage Savings------------- $ 69,015.60
A borrower simply being armed with the information on a rate buy down can enter negotiations that may lend some long term benefits. Six months ago, seller help was just a dream. Today, its a real consideration of any purchase. Will it last forever? No, its an anomaly. Temporary and fleeting. Sobuyers need to get it while they can.
Where are these opportunities to be found? In any area look for vacant homes, on a lock box with some sort of sales pressure. If the lender allows for a 6% seller contribution of the contract price on say an 80% Loan To Value loan then why not go for it. Many of these potential properties can be searched and identified using a Realtor and the local MLS system. Builders who are setting on a huge inventory of homes may be willing to grant major concessions in order to keep the price levels consistent until the home prices firm up. This would be a situation where a borrower would need to determine that the market in that particular subdivision is at a temporary lull and not a trend. Otherwise it would be a case of throwing good money after bad. Working with a Realtor who knows the market will go a long way in avoiding those kinds of pitfalls in builder subdivisions where resale homes are less than the new homes on the market. In that case, the builder is upside down on pricing. This will need to be avoided. What we are talking about here is temporary anomalies that a buyer will want to exploit, like now in the current market. The best evidence of a buyers market is where there are more homes for sale than ready buyers and there is a glut of homes on the market just sitting. A forest of for sale signs.
With lower priced homes with say FHA and VA loans there be an opportunity where the seller in addition to paying all the closing cost and prepaids could pay say 2 points to buy the rate down on a 2-1 Buydown Program. The beauty of this program allows a buyer to buy using a FHA mortgage with as little as a 3% investment and a VA mortgage with zero down. This is a great program of for Debt To Income challenged borrowers who are just squeaking into the property.
If the rate were 6.75% on a mortgage of $205,000 on a thirty-year basis the payment would normally be $1,329.63/month for principal and interest. If the taxes are $300/month, the hazard insurance is $220/month and Mortgage Insurance Premium (MIP) of $85.42/month then the total payment is $1,935.05 per month with $1,050 in installment and credit card debt for a total monthly debt load of $2,985.05 including the new housing expense. If the income were $6,395/month the Debt To Income (DTI) ratio would be around 47%. Lets assume, due to credit history and other factors, the underwriter is not willing to accept this level of DTI nor will any Automatic Underwriting system accept it. An alternative would be to consider the 2-1 Buydown Program with the first year interest rate of 6.75% - 2% = 4.75%, the second year would be 6.75%-1%= 5.75% with the third year and beyond 6.75%. With this program the borrower can qualify at the start rate of 4.75%. The principal and interest payment with this start rate is $1,069.38/month or $260.25/month less at the fully loaded rate of 6.75%. The DTI than is 42.60% and the underwriter will sign off on that. The theory is that the borrowers will have two years to cut debts and increase their income and get their ratios in a more satisfactory position.
Whats the point of all this. If the home is selling for $208,200 and the seller is willing to pay up to closing costs and prepaids which would be $208,200 x 6% = $12,492 and the costs add up to say $9,500, why not use the allowable seller contribution to buy down the loan rate. The main benefit is to get the borrowers DTI in line and lower the payment in the early years all funded with the seller contribution. VA loans can go much higher and in certain areas, FHA loans can go a lot higher as well.
This anomaly will not last. It is a buyers market so why not maximize the buyers benefits by applying part of the 6% sellers contribution to buy the loan down and not leave any money at the closing table which can be utilized for the buyers benefit. Negotiation is king.
Dale Rogers
http://www.sellerhelpsbuyer.com
http://www.brokencredit.com
Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog. The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending.Voice Broadcasting
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Transfers
With many 30 year fixed rate loans with an 80% Loan To Value (LTV) the mortgage program guidelines will allow a seller to pay up to 6% of the buyers closing cost. For example if there is a negotiated sales price of $500,000 with an 80% LTV of $400,000. A seller contribution would be allowed up to 6% on $400,000 mounts up to $24,000. This would need to be a very motivated seller who needs to sell now. Unless a borrower tolerates total gouging on closing costs, this would be a heavy amount. However, a sum of $8,000 to $10,000 or less would handle the closing costs for this property, not including prepaids such as insurance and tax escrows. On the surface, it would seem the difference between $24,000 less say $10,000 would allow $14,000 in additional costs. With todays rates, a one percent (1%) lender discount could buy the rate down from say 6.25% to a rate of 5.5%. Thus, $400,000 x 1% = $4,000.00. A buyer borrower would need to be armed with the facts prior to negotiating a real estate contract so that the seller can determine their bottom line at closing.
For the benefit of the buyer, if they are going to stay in the home for a long-term period then there will be great benefits for the buyer to get a lower rate. Looking at the principal and interest payment for $400,000 at 6.25%, 30-year term the payments then is $2,462.87/month for principal and interest. With the same terms with a rate of 5.5% the payment is $2,271.16/month for principal and interest. That would result in a monthly savings of ($2,462.87- $2,271.16) is $191.71/month in savings versus a 6.25% interest rate.
Example of payment at 6.25% shows $2,462.87/month x 360 months = $886,633.20
Example of payment at 5.50% shows $2,271.16/month x 360 months = $817,617.60
Life Time Mortgage Savings------------- $ 69,015.60
A borrower simply being armed with the information on a rate buy down can enter negotiations that may lend some long term benefits. Six months ago, seller help was just a dream. Today, its a real consideration of any purchase. Will it last forever? No, its an anomaly. Temporary and fleeting. Sobuyers need to get it while they can.
Where are these opportunities to be found? In any area look for vacant homes, on a lock box with some sort of sales pressure. If the lender allows for a 6% seller contribution of the contract price on say an 80% Loan To Value loan then why not go for it. Many of these potential properties can be searched and identified using a Realtor and the local MLS system. Builders who are setting on a huge inventory of homes may be willing to grant major concessions in order to keep the price levels consistent until the home prices firm up. This would be a situation where a borrower would need to determine that the market in that particular subdivision is at a temporary lull and not a trend. Otherwise it would be a case of throwing good money after bad. Working with a Realtor who knows the market will go a long way in avoiding those kinds of pitfalls in builder subdivisions where resale homes are less than the new homes on the market. In that case, the builder is upside down on pricing. This will need to be avoided. What we are talking about here is temporary anomalies that a buyer will want to exploit, like now in the current market. The best evidence of a buyers market is where there are more homes for sale than ready buyers and there is a glut of homes on the market just sitting. A forest of for sale signs.
With lower priced homes with say FHA and VA loans there be an opportunity where the seller in addition to paying all the closing cost and prepaids could pay say 2 points to buy the rate down on a 2-1 Buydown Program. The beauty of this program allows a buyer to buy using a FHA mortgage with as little as a 3% investment and a VA mortgage with zero down. This is a great program of for Debt To Income challenged borrowers who are just squeaking into the property.
If the rate were 6.75% on a mortgage of $205,000 on a thirty-year basis the payment would normally be $1,329.63/month for principal and interest. If the taxes are $300/month, the hazard insurance is $220/month and Mortgage Insurance Premium (MIP) of $85.42/month then the total payment is $1,935.05 per month with $1,050 in installment and credit card debt for a total monthly debt load of $2,985.05 including the new housing expense. If the income were $6,395/month the Debt To Income (DTI) ratio would be around 47%. Lets assume, due to credit history and other factors, the underwriter is not willing to accept this level of DTI nor will any Automatic Underwriting system accept it. An alternative would be to consider the 2-1 Buydown Program with the first year interest rate of 6.75% - 2% = 4.75%, the second year would be 6.75%-1%= 5.75% with the third year and beyond 6.75%. With this program the borrower can qualify at the start rate of 4.75%. The principal and interest payment with this start rate is $1,069.38/month or $260.25/month less at the fully loaded rate of 6.75%. The DTI than is 42.60% and the underwriter will sign off on that. The theory is that the borrowers will have two years to cut debts and increase their income and get their ratios in a more satisfactory position.
Whats the point of all this. If the home is selling for $208,200 and the seller is willing to pay up to closing costs and prepaids which would be $208,200 x 6% = $12,492 and the costs add up to say $9,500, why not use the allowable seller contribution to buy down the loan rate. The main benefit is to get the borrowers DTI in line and lower the payment in the early years all funded with the seller contribution. VA loans can go much higher and in certain areas, FHA loans can go a lot higher as well.
This anomaly will not last. It is a buyers market so why not maximize the buyers benefits by applying part of the 6% sellers contribution to buy the loan down and not leave any money at the closing table which can be utilized for the buyers benefit. Negotiation is king.
Dale Rogers
http://www.sellerhelpsbuyer.com
http://www.brokencredit.com
Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog. The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending.Voice Broadcasting
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Transfers
Lessons for Life Pornography
Published by mortgage-lead-networkzglvcwpc.
Purpose: Our bodies are the temples of our spirits. We are co-creators with God. Modesty is a virtue. The domination of others, and the enticement of them into unsavory acts, degrades the human race and casts the participants into disgrace and jeopardy.
The Lesson:
Parents, there is only one thing you can do to protect your children and yourselves from pornography. That is to avoid it.
More money is generated by porn than most honest commercial endeavors on the Internet. A description of these activities only leads to curiosity.
Some of the operators of commercial porn businesses are crude, evil, and ruthless. One operator said in a television interview that he didn't care about the people that work in his business. He said he didn't care about their drug addictions, their degradation, nor their welfare. He once cared, he said, but the participants, in his opinion, are just low-lifes that come and go.
Control Your Computer
The computer is the easy way to find porn. It can pop up at most any time. Your child makes a search for a school report and up come the porn sites. One click and he or she is there.Your child (or you) receives an e-mail and it immediately zaps to a porn site. One porn site can pop up fifty other porn sites.
What to do about your computer.
Their are security options on your computer. First, erase the history in your browser. Then use the security functions that your browser provides. Use the Help Menu to learn how to set security for your system(s). Make sure you password protect the security options.
If you can't seem to do this, find a friend that knows the ropes of computers. At last resort, call a computer professional or visit a computer store and have the clerk show you how to secure your computer.
What to do about your television.
You can protect your children and yourself by not subscribing to cable channels that broadcast X- or R-rated movies or pornographic movies and programs. If you can still see these channels even though you are not a subscriber, have the cable company put the proper filters in their system to block the offending channels out. Don't pay for this service. It is their problem not yours. One of my sons has a device that bleeps out all crude dialogue from his television, CDs, and VCR tapes.
What to do about movies.
Make sure your local movie companies are not allowing minors to enter the theater to watch R- and X- rated movies. It is the theater's management's job to see that your child doesn't buy a ticket for Bambi and then slip into the theater that is showing "Tootoo Comes of Age."
What to do about pornographic books and magazines being sold at your supermarket.
Take a look at what's on the shelves and magazine racks at your supermarket. If their are offensive materials, tell the manager that you don't like it and that, if they are not removed, you are not only not going to patronize the store, you are going to raise a great stink about it in the community by writing to the newspapers and calling in on talk shows and talking to schools, friends, and neighbors.
A lesson from the Knights of Columbus
A friend of mine was a member of that group. He told me that in Denver, the Knights decided they had enough of grocery stores selling pornographic magazines and displaying them to the children and the rest of their customers.
They thought up a great little scheme.
They each went to a grocery stores and each Knight filled his cart to overloading with several hundred dollars worth of groceries. Then he proceeded to check out.
At the checkout stand where the magazines were exhibited, he picked up a magazine and asked for the manager. When the manager arrived, the Knight said, Why do you sell pornographic magazines, and in addition, display them for children to see?
The Knight didn't wait for an answer. He walked out of the store--leaving the filled cart for the store employees to unload back to the shelves. It wasn't long before the store managers got the word. The magazines were out!
Porn is profitable. When you support it, you are demoralizing not only yourself but other human beings.
According to members of the porn industries, most all workers in the industry are addicted to drugs and alcohol, suffer from venereal disease, from time to time, or AIDS. Their careers are short and not fulfilling. The next step from porn is prostitution. Do you really want to support such endeavors? Of course not.
Remember that the Bible says that "...you are the temple of God:" See: 1Cor:3:16: "Know ye not that ye are the temple of God, and that the Spirit of God dwelleth in you?"
Also: 1Cor:3:17: "If any man defile the temple of God, him shall God destroy; for the temple of God is holy, which temple ye are."
And, 2Cor:6:16: "And what agreement hath the temple of God with idols? For ye are the temple of the living God; as God hath said, I will dwell in them, and walk in them; and I will be their God, and they shall be my people."
For The Little Children
There is no children's story with this lesson. I didn't know how to cover the subject. I suggest that you teach your children to be modest in dress and actions. Teach them to keep their minds and bodies clean and pure. Be a good example to them at all times. Keep your eye on your children.
Live Mortgage LeadsVoice Broadcasting
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Illinois Foreclosure Listing Tops 11,000 Addresses, Governor Steps In!
Published by mortgage-lead-networkzglvcwpc.
Illinois foreclosure listings represent the fourth highest in the country. California is at the top of the list with 32,500 followed by Florida with approximately 27,000 listings and Colorado at roughly 11,000 filings. Combined with Illinois, these four states account for 52% of all homes in foreclosure nationwide.
The staggering foreclosure rates in Illinois prompted Governor Rod Blagojevich to file amendments to HB 4050, the Illinois Predatory Lending Database Program. HB4050 protects consumers fight predatory lending practices by shifting focus on the lenders who offer non-traditional types of loans.
Under the proposed rules for HB 4050, Cook County first time homebuyers and owners opting to refinance their primary residence will be recommended for financial counseling if the loan they are considering contains any of the following provisions:
* Permits interest-only payments;
* Allows payments that results in negative amortization;
* Total points and fees payable by the borrower exceed 5% of the amount of the mortgage;
* Approval of the loan relies on the stated income of the borrower;
* A pre-payment penalty is included; or
* The financing transaction includes a second lien on the property, often known as an 80/20 loan.
HB 4050 main purpose is to alert consumers that subprime lending practices can lead to financial ruin. Todays housing market focuses so much on the credit history of the homebuyer, and with some homebuyers who have had past credit issues, spotty employment or not enough funds for a down payment --- some lenders have gone to great lengths to get their business. However, this practice is costing the same homebuyer way more than they can afford without them even realizing it. By enacting HB 4050, these same homebuyers will be instructed and informed regarding the types of loans available, the type of loan they are considering and what it means to their financial future. Many of these items are not currently provided by the lenders who practice subprime loan lending.
Luckily, Governor Blagojevich has an eye on his Illinois homebuyers and the lenders who serve the Illinois residents. Currently, HB 4050 is in the pilot program phase and is being piloted in Cook County. Illinois residents outside of Cook County should expect to see it offered to them also in the near future. The governors mission is to see the Illinois foreclosure listings numbers drop and this is a great start to realizing that mission.
Bob Smith is a freelancer but regularly writes for ForeclosureListingsNationWide.com. You can get more information on Illinois foreclosure listings at http://www.foreclosurelistingsnationwide.com.Live Mortgage Leads
Live Mortgage Leads
Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
Mortgage Lead Programs
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
The staggering foreclosure rates in Illinois prompted Governor Rod Blagojevich to file amendments to HB 4050, the Illinois Predatory Lending Database Program. HB4050 protects consumers fight predatory lending practices by shifting focus on the lenders who offer non-traditional types of loans.
Under the proposed rules for HB 4050, Cook County first time homebuyers and owners opting to refinance their primary residence will be recommended for financial counseling if the loan they are considering contains any of the following provisions:
* Permits interest-only payments;
* Allows payments that results in negative amortization;
* Total points and fees payable by the borrower exceed 5% of the amount of the mortgage;
* Approval of the loan relies on the stated income of the borrower;
* A pre-payment penalty is included; or
* The financing transaction includes a second lien on the property, often known as an 80/20 loan.
HB 4050 main purpose is to alert consumers that subprime lending practices can lead to financial ruin. Todays housing market focuses so much on the credit history of the homebuyer, and with some homebuyers who have had past credit issues, spotty employment or not enough funds for a down payment --- some lenders have gone to great lengths to get their business. However, this practice is costing the same homebuyer way more than they can afford without them even realizing it. By enacting HB 4050, these same homebuyers will be instructed and informed regarding the types of loans available, the type of loan they are considering and what it means to their financial future. Many of these items are not currently provided by the lenders who practice subprime loan lending.
Luckily, Governor Blagojevich has an eye on his Illinois homebuyers and the lenders who serve the Illinois residents. Currently, HB 4050 is in the pilot program phase and is being piloted in Cook County. Illinois residents outside of Cook County should expect to see it offered to them also in the near future. The governors mission is to see the Illinois foreclosure listings numbers drop and this is a great start to realizing that mission.
Bob Smith is a freelancer but regularly writes for ForeclosureListingsNationWide.com. You can get more information on Illinois foreclosure listings at http://www.foreclosurelistingsnationwide.com.Live Mortgage Leads
Live Mortgage Leads
Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
Mortgage Lead Programs
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Secured Loans: The solution for those with Less than Perfect Credit
Published by mortgage-lead-networkzglvcwpc.
Even if you are undergoing financial difficulties, you can get the finance you require by applying for a secured personal loan. For those who have bad credit the safest way of obtaining the money they need is to use their property as collateral. If done so, the lender wont pay so much attention to the borrowers credit score and history and will focus on the value of the asset used as collateral.
Uses and an Extra Benefit
There are many uses for secured loans, ranging from home improvements, going on vacations, paying for college, consolidating debt, etc. But there is another benefit you can obtain from a loan. The fact that you pay regularly your loan installments will be recorded in your credit history and thus, your credit score will start improving.
Collateral explained
In order to secure a personal loan, the borrower is required to provide an asset to guarantee the loan. This asset, known as collateral, usually has a higher value than the loan amount. The lender will have a legal right to repossess the property if the borrower fails to make the monthly payments on the loan.
As for the borrower, by providing collateral, he will be able to obtain a higher loan amount with a lower interest rate and a longer repayment program. Collateral can consist on a home or apartment, a vehicle, valuable titles or stocks, etc. The main purpose of collateral is to assure the lender that he will be able to collect the money owed by selling the asset if the borrower fails to comply with the loan terms.
Loan amount and equity
The loan amount will vary according to the value of the asset used as collateral. There are no limits as to the credit; the only limit is the propertys worth. Also, it is possible to borrow from the asset's equity. If the property has been already used as collateral, its value may be higher than the amount owed so youll be able to borrow the difference.
Loan duration
As regards to loan length, there are many repayment program alternatives ranging from 1 to 25 years and more. As always, this depends on the type of loan, the quality and value of the asset and the borrowers credit score and history. The interest rate will be affected by the loan length, longer repayment programs carry higher interests and the opposite is also true.
The solution for Bad Credit
Since the collateral is securing the loan, customers with bad credit score and history can apply for a secured personal loan with great possibilities of being approved. The truth is that if suitable collateral is offered, lenders rarely decline a loan application, however, the interest rate charged will be higher and the loan amount may be limited because of the higher risk involved in the transaction.
Refinance in the future
Keep in mind that once approved youll be able to refinance the loan in the future. Once your credit score gets better you shouldnt even doubt it, youll be able to obtain a much better deal and save thousands of dollars in interests and you may also be able to pay off your loan a lot sooner.
Bryan Quinn is a financial advisor with more than thirty years of experience in the field of finance who aids people undergoing financial problems and helps them obtain personal loans, home loans, student loans and grants, consolidation loans, car loans and many other financial products regardless of their credit situation. For more smart tips on Secured Personal Loans you can visit http://www.badcreditloanservices.com and also learn more about other financial options.Mortgage Lead Transfers
Live Mortgage Leads
Exclusive Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Transfers
Mortgage Lead Programs
Mortgage Leads
Exclusive Mortgage Leads
Mortgage Lead Programs
Uses and an Extra Benefit
There are many uses for secured loans, ranging from home improvements, going on vacations, paying for college, consolidating debt, etc. But there is another benefit you can obtain from a loan. The fact that you pay regularly your loan installments will be recorded in your credit history and thus, your credit score will start improving.
Collateral explained
In order to secure a personal loan, the borrower is required to provide an asset to guarantee the loan. This asset, known as collateral, usually has a higher value than the loan amount. The lender will have a legal right to repossess the property if the borrower fails to make the monthly payments on the loan.
As for the borrower, by providing collateral, he will be able to obtain a higher loan amount with a lower interest rate and a longer repayment program. Collateral can consist on a home or apartment, a vehicle, valuable titles or stocks, etc. The main purpose of collateral is to assure the lender that he will be able to collect the money owed by selling the asset if the borrower fails to comply with the loan terms.
Loan amount and equity
The loan amount will vary according to the value of the asset used as collateral. There are no limits as to the credit; the only limit is the propertys worth. Also, it is possible to borrow from the asset's equity. If the property has been already used as collateral, its value may be higher than the amount owed so youll be able to borrow the difference.
Loan duration
As regards to loan length, there are many repayment program alternatives ranging from 1 to 25 years and more. As always, this depends on the type of loan, the quality and value of the asset and the borrowers credit score and history. The interest rate will be affected by the loan length, longer repayment programs carry higher interests and the opposite is also true.
The solution for Bad Credit
Since the collateral is securing the loan, customers with bad credit score and history can apply for a secured personal loan with great possibilities of being approved. The truth is that if suitable collateral is offered, lenders rarely decline a loan application, however, the interest rate charged will be higher and the loan amount may be limited because of the higher risk involved in the transaction.
Refinance in the future
Keep in mind that once approved youll be able to refinance the loan in the future. Once your credit score gets better you shouldnt even doubt it, youll be able to obtain a much better deal and save thousands of dollars in interests and you may also be able to pay off your loan a lot sooner.
Bryan Quinn is a financial advisor with more than thirty years of experience in the field of finance who aids people undergoing financial problems and helps them obtain personal loans, home loans, student loans and grants, consolidation loans, car loans and many other financial products regardless of their credit situation. For more smart tips on Secured Personal Loans you can visit http://www.badcreditloanservices.com and also learn more about other financial options.Mortgage Lead Transfers
Live Mortgage Leads
Exclusive Mortgage Leads
Mortgage Lead Programs
Live Mortgage Leads
Mortgage Lead Transfers
Mortgage Lead Programs
Mortgage Leads
Exclusive Mortgage Leads
Mortgage Lead Programs
Entrepreneurs- Millions To Be Made in Home Laundry
Published by mortgage-lead-networkzglvcwpc.
New appliance could be the next microwave oven, and those that get involved early will become millionaires. The market is HUGE! Every second of the day, 1,000 loads of laundry are started in the world. Each load will discharge 25-30 gallons of phosphate laden water back into our environment and consume an estimated $6 Billion of laundry detergent in the US alone. A new technology is now available that gets clothes cleaner using only cold water and no detergent, bleach or fabric softener; and, you dont have to throw away your washing machine.
Technology entrepreneurs can smell money in the air. An amazing new technology has just hit the market that is revolutionizing the way families have historically washed their clothes and there is HUGE money to be made. An exciting paradigm shift is occurring away from the old technology to a brand new technology. Maybe laundry isnt exciting, but if you are an entrepreneur looking for a huge market, consider this: every second of the day approximately 1000 loads of laundry are started in the world. An enterprising marketer, with a plan and a respectable networking machine only needs to capture a small fraction of less than 1% of this market to create a powerful business for themselves. If they have a large, established network, then huge fortunes can easily be made. Environmentalists love this too, because this system can potentially reduce anywhere from 25,000-30,000 gallons of phosphate laden rinse water back into our environment every second of the day.
This is a WIN-WIN situation- cleaner clothes and cleaner environment. Clothes arent just cleaned; they are sanitized and deodorized with this system. Because cold water is used, colors and whites can be mixed. Colors are more vibrant. Fabrics are softer and fluffier. Because detergents are eliminated there are no chemical skin sensitivities. Use the existing washer in most cases. Your market is everyone that washes clothes.
This is not a toy, or a gimmick. It is a rugged system that simply attaches to the washing machine. It has undergone 2 years of field testing. This is not a start-up company; they have a history of bringing high quality innovative technology to the market that works, and is affordable. There is a proven marketing plan in place and training and support is already available. The company controls manufacturing in their own U.S. facilities.
This is an opportunity that only comes along once in a generation. Enthusiastic, experienced, motivated entrepreneurs looking for that new product should contact us for more detailed information at http://www.laundryplus.com/teamhope.
Bruce Bley is founder of BCB Associates, a marketing consulting firm that deals with issues pertaining to family health and wellness. He has a B.S. Mechanical Engineering from Cornell University, an MBA from University of Hartford as well as numerous corporate sponsored management training programs conducted by major universities. He has served on the Boards of Directors of several professional organizations, has represented international corporate co-owners of joint-ventures and has been responsible for product management and business development of industrial environmental controls and air handling equipment.Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
Technology entrepreneurs can smell money in the air. An amazing new technology has just hit the market that is revolutionizing the way families have historically washed their clothes and there is HUGE money to be made. An exciting paradigm shift is occurring away from the old technology to a brand new technology. Maybe laundry isnt exciting, but if you are an entrepreneur looking for a huge market, consider this: every second of the day approximately 1000 loads of laundry are started in the world. An enterprising marketer, with a plan and a respectable networking machine only needs to capture a small fraction of less than 1% of this market to create a powerful business for themselves. If they have a large, established network, then huge fortunes can easily be made. Environmentalists love this too, because this system can potentially reduce anywhere from 25,000-30,000 gallons of phosphate laden rinse water back into our environment every second of the day.
This is a WIN-WIN situation- cleaner clothes and cleaner environment. Clothes arent just cleaned; they are sanitized and deodorized with this system. Because cold water is used, colors and whites can be mixed. Colors are more vibrant. Fabrics are softer and fluffier. Because detergents are eliminated there are no chemical skin sensitivities. Use the existing washer in most cases. Your market is everyone that washes clothes.
This is not a toy, or a gimmick. It is a rugged system that simply attaches to the washing machine. It has undergone 2 years of field testing. This is not a start-up company; they have a history of bringing high quality innovative technology to the market that works, and is affordable. There is a proven marketing plan in place and training and support is already available. The company controls manufacturing in their own U.S. facilities.
This is an opportunity that only comes along once in a generation. Enthusiastic, experienced, motivated entrepreneurs looking for that new product should contact us for more detailed information at http://www.laundryplus.com/teamhope.
Bruce Bley is founder of BCB Associates, a marketing consulting firm that deals with issues pertaining to family health and wellness. He has a B.S. Mechanical Engineering from Cornell University, an MBA from University of Hartford as well as numerous corporate sponsored management training programs conducted by major universities. He has served on the Boards of Directors of several professional organizations, has represented international corporate co-owners of joint-ventures and has been responsible for product management and business development of industrial environmental controls and air handling equipment.Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Exclusive Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
The Price of Gold and CDO Structured Products
Published by mortgage-lead-networkzglvcwpc.
Years and years of monetary inflation have completely desensitized us to risk. From a national, corporate or even individual level, the availability of cheap debt has conditioned us to borrow without abandon.
And nowhere has the debt binge been more apparent than in the housing market. Low mortgage rates have been a boon for homebuyers and created an insatiable demand for structured products from investors hungry for yield. Eager to oblige, Wall Street has been having a feast. Making loans to homebuyers then packaging them up and selling them to pension funds, hedge funds and large insurers. The fees have been MASSIVE.
When you package up individual loans into a product (called a CDO but with many name variations) you are able to pick and choose the exact payout you want to achieve. Add in some AAA rated mortgages, mix in BBB+ paper and stir in Toxic Junk bonds (bound to default) and voil you have an instrument with very specific yields and cash flows.
Ofcourse there are bands as to what constitutes for example BBB- Investment Grade Bond. And all the structurer has to do is use the loosest defined Bond to comply. Compliance is overseen by ratings agencies that help banks put the products together. Its a cozy lucrative arrangement and its complicated stuff. One of the highest paying jobs on Wall Street is for Correlation Traders. Quants who make sure the underlying paper behave according to their promise.
And then theres the leverage. And boy is there leverage! Payouts can be magnified by up to 10x using synthetics or derivatives that link to even more mortgage pools.
The party was going great until interest rates started to rise and housing began to fall.
Chart 1 - Centex homebuilder and 10 year Bonds (bottom) breaking support - CDO reaction 1 week later
Last week the financial world was awoken by the harsh reality that hey, maybe these mortgages are not going to perform as originally planned. Maybe the risk of default is a lot higher than originally thought GULP! Bear Sterns announced a $3.2Bn loan to bail out one of its troubled hedge funds doing exactly what I detailed above.
Based on the banking indexes sharp fall on Friday, this problem may be a little more widespread than that.
Chart 2 - Banking index (top) reacting to CDO news; price of gold trending lower (bottom)
Earlier this month we detailed how higher interest rates would benefit the price of gold. That is, in the long-term the fundamentals for Gold are incredibly bright, but there will be short term pain. The reason is that Gold has been bid up along with all other assets under the current wave of liquidity. A repricing of CDO risk would likely curtail the issuance of these instruments and cause a sharp contraction in liquidity with a commensurate drop in ALL asset classes if last week is an indication, the speed of this deflation will be mind blowing and completely overwhelming. However, Golds Credit rating has been and always will remain sterling. When investors realize the incredible DANGER in front of us, they will return to Gold in droves!
More commentary and stock picks follow for subscribers...
Greg SilbermanExclusive Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Voice Broadcasting
Mortgage Lead Programs
Exclusive Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
And nowhere has the debt binge been more apparent than in the housing market. Low mortgage rates have been a boon for homebuyers and created an insatiable demand for structured products from investors hungry for yield. Eager to oblige, Wall Street has been having a feast. Making loans to homebuyers then packaging them up and selling them to pension funds, hedge funds and large insurers. The fees have been MASSIVE.
When you package up individual loans into a product (called a CDO but with many name variations) you are able to pick and choose the exact payout you want to achieve. Add in some AAA rated mortgages, mix in BBB+ paper and stir in Toxic Junk bonds (bound to default) and voil you have an instrument with very specific yields and cash flows.
Ofcourse there are bands as to what constitutes for example BBB- Investment Grade Bond. And all the structurer has to do is use the loosest defined Bond to comply. Compliance is overseen by ratings agencies that help banks put the products together. Its a cozy lucrative arrangement and its complicated stuff. One of the highest paying jobs on Wall Street is for Correlation Traders. Quants who make sure the underlying paper behave according to their promise.
And then theres the leverage. And boy is there leverage! Payouts can be magnified by up to 10x using synthetics or derivatives that link to even more mortgage pools.
The party was going great until interest rates started to rise and housing began to fall.
Chart 1 - Centex homebuilder and 10 year Bonds (bottom) breaking support - CDO reaction 1 week later
Last week the financial world was awoken by the harsh reality that hey, maybe these mortgages are not going to perform as originally planned. Maybe the risk of default is a lot higher than originally thought GULP! Bear Sterns announced a $3.2Bn loan to bail out one of its troubled hedge funds doing exactly what I detailed above.
Based on the banking indexes sharp fall on Friday, this problem may be a little more widespread than that.
Chart 2 - Banking index (top) reacting to CDO news; price of gold trending lower (bottom)
Earlier this month we detailed how higher interest rates would benefit the price of gold. That is, in the long-term the fundamentals for Gold are incredibly bright, but there will be short term pain. The reason is that Gold has been bid up along with all other assets under the current wave of liquidity. A repricing of CDO risk would likely curtail the issuance of these instruments and cause a sharp contraction in liquidity with a commensurate drop in ALL asset classes if last week is an indication, the speed of this deflation will be mind blowing and completely overwhelming. However, Golds Credit rating has been and always will remain sterling. When investors realize the incredible DANGER in front of us, they will return to Gold in droves!
More commentary and stock picks follow for subscribers...
Greg SilbermanExclusive Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Live Mortgage Leads
Voice Broadcasting
Mortgage Lead Programs
Exclusive Mortgage Leads
Live Mortgage Leads
Mortgage Lead Transfers
About me
- I'm mortgage-lead-networkzglvcwpc
- From
- My profile
Last posts
- Numerology's Life Path (5); the Path of the Seller
- Stores Where You Can Find Drapery Blinds
- Funerals - Eastern Star Service
- What is Networking?
- How To Harness The Power Of Email For Marketing Su...
- Getting Money From A Reverse Mortgage
- 10 Essential Ingredients For Setting Up The Perfec...
- Why Should You Have A Home Business?
- Corporate Identity: It's More Than a Logo
- Foreclosure Investing Lifestyle