Posts Tagged ‘money’

Money Matters-Things Banks & Other Lenders Won’t Tell You

Monday, July 5th, 2010

Everyday people go to the bank with a loan request written on the back of a napkin and end up getting denied for a loan. Ever wondered why? The obvious reason is they are not qualified for the loan because of a lack of employment, insufficient income, too much debt, poor credit, no previous credit or any combination of these factors. But are these the only reasons? Maybe, maybe not. Keep in mind that bankers are on a salarythey get paid the same amount of money whether they work hard on your deal or not. You see, lenders tend to group people into categories known as A, B or C-borrowers.

A-borrowers tend to be perfect people with perfect credit and high income to debt ratio. B-borrowers tend to be people who have decent income, decent credit and a decent income to debt ratio. C-borrowers, on the other hand, have marginal income and marginal to poor credit ratings. And then there are the projectslenders also tend to group projects into categories known as A, B and C-projects. Here are a few examples of how projects are ranked: A-projects are the kinds of loans the lender likes to doclass-A residential home loans from, say, $100.000.00 and up. B-projects may be a used car loanC-projects could include a debt consolidation loan for a marginal borrower. C-borrowers and projects are often quickly denied. You can see more clearly now how borrowers and projects are basically ranked in the mind of lenders.

Remember; bankers are human and humans tend to take the path of least resistance. If you were a banker, would you rather do a slam-dunk million dollar loan to someone who didn’t need the money or work real hard (day in and day out) trying to fund risky C-projects for marginal borrowers? Most people are not perfect borrowers and you may fall into this category. So what do you do to increase your chances of getting the loan you need? Here’s a few secrets that can help get the loans you need: First, ask yourself a few questions Does your loan request make economic sense? If it doesn’t make sense to you, it probably won’t impress the lender. What can you do to structure the loan to make sense? Secondly, if you were a lender, would you (really) loan yourself the money considering your income, credit and project?

Whether you answer yes or no, you should identify why or why not? Do you have a professional bank package or is your loan request written on the back of a napkin? By having a professional bank package you will get the attention of the lender because most people don’t know how to assemble a bank package. By having a bank package, you can move yourself from a C-borrower to a B-borrower status in the mind of a lender. If you are a B-borrower you can move to A-borrower status. Why? By creating a bank package you have done your homework (and much of the work the lender needs to make a decision) in a format that professionally communicates with the lender. Here’s an outline for a basic bank package for consumer (or business) loan proposals in the order shown below:

1) Cover letter (to the lender, lending institution, brief overview of package and purpose)

2) Loan summary (purpose of loan, use of funds, payback plan, economic justification, etc.)

3) Table of contents

4) Standard bank application for review (get it from the bank)

5) Statement of assets (everything you own that can be used as collateral)

6) Statement of credit debt (all outstanding debts with totals and account numbers)

7) Photo-copies last two (2) years of tax returns

8) Photo-copies last two (2) years of payroll stubs

9) Supporting documentation (borrower’s resume’, explain past credit problems, documents, etc.)

You want to organize your bank package using an inexpensive 3-ring binder. A bank package does not guarantee financing but it can greatly improve your chances for funding tough deals.

Copyright © 2006
James W. Hart, IV
All Rights reserved

James W. Hart, IV, a consumer advocate and CEO of Smart Books Publishing http://www.smart67.com has been involved in the field of residential and commercial real estate mortgage financing since 1987. Hart, previously licensed to engage in the sale of real estate in the state of Ohio, has been directly involved in the origination of residential and commercial mortgage financing and has worked with residential and commercial mortgage lenders, large commercial mortgage banking firms and life insurance companies for financing. Hart is an honorably discharged veteran of the U.S. Army, graduate of the University of Toledo and graduate of the Cleveland Institute of electronics. He is a member of the National Panel of Consumer Arbitrators and the Council of Better Business Bureaus, Inc. During 1992/93 Mr. Hart appeared on a number of radio and TV stations throughout the U.S. including WJR-AM, WWWE-AM, WHUR-FM, WRC-AM, WLW-AM, WTVN-AM, WSPD-AM, KDKA-AM, KBGS-AM and CNBC-TV and many others

Tags: , , , , , , ,
Posted in Financing | No Comments »

30 Day Financing – Interest-Free Intelligent Use Of Credit and OPM

Monday, January 12th, 2009

Credit cards allow anyone to have access to 30 days interest free financing. Pay off your balance every month and you have access to OPM, Other People’s Money. Actually, even if you don’t pay it off, you have the access, but along with added challenges, which we aren’t discussing here!

They say that using OPM is the way of the big investors, the wealthy. And you have the same opportunity on a small scale. If you can find opportunities that produce a return in a short period of time or require short-term ‘bridge financing’; you have that option of interest-free, with credit cards.

Do not allow yourself to rely on the monies for any extended period of time. This is short-term financing only. If you require funds for longer periods, other forms of financing must be secured.

The value of having cash in hand allows you to leverage this money to invest, purchase real estate or grow a business. Even start a business.

They say you need money to make money. Well, here’s a source of money. Be careful with it. Use it wisely and even cautiously. In some ways it may be too easy to access.

Have a clear picture of how you will spend the money. What level of risk you are taking and most importantly, your exit strategy. What will you do if something goes wrong, what is your contingency plan?

All that to say, you do have access to 30 days of interest-free money. Know the dates and work wisely around them.

Stephanie Mundle is the managing editor of http://www.MoneyMasteryForum.com an informational forum site for the average investor. Take a look. Information on forex, debt, money management, investing and business.

Come check out the forum at http://www.MoneyMasteryForum.com/forum.html
country.html

Tags: , , , , ,
Posted in Financing | No Comments »

Looking for Harvey Weinstein – The Book and the Business

Sunday, October 19th, 2008

Two Immigrants Live The American Dream

Some may call it a purpose driven life yet the only thing religious about life for two middle aged British “resident aliens” living in Los Angeles is they rise at 5am and are usually asleep by nine.

They rack up about a hundred hours between them in their average work week and have been in the same business for the last four years. However, unlike most who boast the identical grind, Holly and Shirley Yanez, lifelong best friends who married and divorced American brothers, don’t have a 401K, medical insurance or cell phones. They work for themselves, one of the perks, accrued vacation time.

Although both women have excellent backgrounds, one an ex business owner with a five million dollar turnover company, the other, a seasoned technical sales executive, when desperate, found it impossible to get jobs in LA. After submitting hundreds of applications, resumes and cover letters, the 39 and 47 year old women were even turned down for receptionist and retail sales assistant positions due to lack of experience.

With no one to rely on, no friends and family for support, the women, willing to work hard, had to build a business from scratch that could support them and two small children if they were to survive in a new country.

They needed a low cost product they could market globally for free. With very little investment available and no established credit, their only way of effectively and cheaply marketing anything was over the internet.

After relentless research they discovered 55% of all books published in the U.S. are self published and many first time authors have broken all the rules, springing from obscurity onto bestseller lists thanks to brilliant internet marketing strategies. The Naked Warrior and I Love My Life. A Mom’s Guide to Working From Home.

Although the women were not writers by trade both enjoy a good story and had hilarious journals of life in Los Angeles already written. After many committed hours at the keyboard they turned their parallel veracity into a book for less than $2000 online giving them their inexpensive, wholly owned product, to sell. Looking for Harvey Weinstein was born.

With absolutely no experience they started to build a channel to their buyer using the internet. Since the launch of their product at the beginning of 2004 they have developed their publishing house of one into a name that is all over the internet. They distribute through Baker and Taylor and Gardner Books and supply all the major retail and online chains here and overseas. They also enjoy profitable relationships with Amazon and E Online.

Using Bloggers, indie media, online book reviews, discussion boards and chat rooms they continue to market for free and strategic email blast campaigns are highly effective sales generators.

Due to the dynamic nature of the internet, the more places you are the more people see you and the more people see you, the more places you are. It’s magic marketing for a company with zero liquidity. High ranking on multiple keyword searches draws traffic to your website or blogger (free if you can’t afford a site) and the more traffic you receive the higher you rate on major search engines, all of which charge for placement but don’t make any promises.

The women no longer enjoy the lavish lifestyles they once took for granted and never imagined being stranded and penniless in a place where “resident alien” felt like “aliens in residence.” Nevertheless they have fought back, built a business and now have another story to tell. How, through adversity, they have lived the American …

The self published co authors of Looking for Harvey Weinstein available from http://www.amazon.com

Tags: , , , , , , , ,
Posted in Financing | No Comments »

Our World Of Credit Cards! Which One Is Right For You

Friday, August 29th, 2008

There are not many of us who do not have a credit card these days. But, not all of us are as wise in the area of understanding how they work and how they make money. There are many types available to the young and old. Student credit cards even begin to get teenagers into the world of credit cards. Secured credit cards, cards that usually can’t be written off, are even misleading in their name. So, what does that discover credit card in your wallet actually do for you?

Even young adults are being lured into the world of credit cards. Student credit cards are widely available. Some link the parent to the card, others are geared towards college students who most of the time don’t even have jobs to pay for them. They seem like a great way to pay for college expenses, but the fees can be outrageous.

A big trap is secured credit cards. While there are always options out there that are legit, there are many others that are not. Often times, people with little or no credit or even bad credit can get a secured credit card. These are credit cards that are linked to savings accounts which require a minimum balance to be kept. While this seems easy enough, if you default on it, they can claim their money through that savings account. Another aspect of these types of credit cards are the fees associated with them. They often require set up fees, sometimes in the hundreds of dollars. They may have monthly and yearly fees as well. They may seem like a great way to establish or reestablish credit, but you will need to read the fine print for the secured credit card.

The goal of any credit card company is to make money. They do this by charging you an interest rate. The rate varies greatly from one company to the next depending on your credit status and credit history. But, your goal is to find the low interest credit cards. Many times, if you are in good standing with a credit card company, you can call them and request that they consider you for an interest rate cut.

Next to paying off your entire credit card bill each month, finding the lowest rates is often very important in order to save money. With the Internet as a tool, you can search for different types of credit cards and learn which companies offer the lowest rates. Many companies are equipped to take and accept credit card applications online within minutes. But, be wise and read the fine print to avoid falling into traps and outrageous fees.

About The Author

Mike Yeager, Publisher

http://www.a1-loans-4u.com/

mjy610@hotmail.com

Tags: , , , , , , , , ,
Posted in Financing | No Comments »