It opens the doors to the financial world for many retailers. The merchant cash advance industry is growing at an astonishing rate. This growth is due to the fact that traditional banks are not meeting the needs of small businesses.

This product is very unique. It’s a purchase of an asset, not a loan, so we have to use specific language consistent with an asset purchase, such as recovery rate and discount rate instead of interest rate. It’s a lot like factoring, but it’s a sale that hasn’t happened yet.

A cash advance provider gives merchants a lump sum cash advance in advance. In exchange, merchants agree to return the principal and fee, giving the business an agreed-upon percentage of their credit card sales until their balance is zero. This percentage is between 12%-24%. The repayment term is only 5-12 months.

Merchants generally must use the vendors credit card processor because the advance is automatically returned as a percentage of the proceeds from each batch. A small number of merchant cash advance companies do not require the merchant to switch credit card processors. So if this is an issue, be sure to ask the merchant cash advance company you’re thinking of working with.

Cash advances are very different from traditional financing programs. In essence, merchant cash advance providers buy a small percentage of future MasterCard and Visa revenue, and the merchant pays this as a daily percentage of that revenue.

Obtaining cash from traditional financial institutions can be difficult for some businesses, particularly retail, restaurant, franchise or seasonal businesses. These merchants primarily use credit card processing, so merchant cash advance programs offer a number of benefits.

Why merchants like it

Cash is often available more quickly than with traditional loans. These programs are especially appealing to restaurant and retail merchants, not only because these types of businesses can rarely obtain traditional financing, but also because of the immediate liquidity.

Most cash advance providers advertise that cash can be available in about 10 days. Unlike a loan with a fixed interest rate, an amount due, and a set due date each month, with merchant cash advances, the money is paid back as credit card receivables come in.

Merchant Cash Advance programs are cash flow friendly, especially during slow seasonal periods. Traditional loans and leases require a fixed payment every month, whether or not the business has made a sale. Because payments are calculated as a percentage of sales, if sales grow, payback may be faster, but if the owner experiences a business interruption or downturn, payments will be lower.

In most cases, business owners do not offer a personal guarantee or personal guarantee.

How providers make money

Finance charges can vary widely, not only from provider to provider, but also from advance to advance. As an example, the funding range for a $10,000 advance could be as low as $1,500 or as high as $4,000. That’s a 60% difference.

There is no fixed interest rate; the effective interest rate varies depending on the business. If the merchant’s business is doing well and sales are up, the advance provider collects the money sooner and the interest rate is quite high. Since there is no time limit for repaying the loan, the effective annual rate decreases as the payments are spread out over time, although the cash provider usually forecasts a fairly short period for repayment, usually less than a year.

There is no question that the merchant’s cost for this type of financing will be higher than for a conventional loan, but it is practically a foregone conclusion that a conventional bank will turn this merchant down for their much-needed loan.

Merchants interested in a program like this may have incomplete or struggling credit histories. They will have things like past tax problems, a list of delinquencies, collection issues, liens, or judgments that would be an automatic red flag for a conventional bank. The merchant cash advance industry caters to businesses that are unable to obtain traditional financing.

A risk worth taking

There is a risk to cash advance providers and a fairly high risk (hence the higher cost to the merchant for the money), but they use sophisticated models to determine likely future credit card purchases. They also offer cash with relatively short payback periods to help mitigate risk.

Although approval is not as difficult as it is for most bank loans, few cash advance providers will approve new merchants without a history of credit card transactions. Even fewer will approve sums greater than what merchants can reasonably expect to earn from credit card transactions in a year.

The merchant cash advance provider bears all the risk, the risk is high, but since it is paid out of projected future sales, it is usually a risk worth taking. Seasonal businesses that need cash to get them through lean seasons or merchants experiencing an unexpected downturn in business (for example, due to road construction, building repairs, or prolonged illness) may find a need for an advance of cash until the business recovers.

However, commercial cash advance companies say troubled businesses aren’t the only merchants interested in this type of program. Many types of businesses are often underserved by traditional financing institutions. Let’s take a restaurant as an example, it could be a very successful business, but a traditional bank wants to see tangible assets. Perishable food or used restaurant equipment just won’t cut it, even if that restaurant is full every night.

There are many examples of times when healthy small business owners could use cash to help build their businesses, but are unable to obtain the necessary traditional financing. These include franchisees who have exhausted their savings to purchase their first franchise and want to open a second; merchants whose competitors have closed and have the opportunity to purchase their competitor’s old inventory or move to a new location; expansions; acquisitions; or simply the desire to move quickly on a new perceived opportunity.

Bank-owned foreclosures refer to those that have reverted to bank ownership after a public sale. These properties can range from single units to multi-family units, condominiums, apartments, townhouses, duplexes, and other types of structures. Once these properties become REO or bank owned, they will be listed as for sale, usually through listing providers or real estate brokers. Although you can choose from a wide selection of properties on a foreclosure listing, it is important to take note of the following guidelines to ensure your investment is adequately protected and remains an asset rather than a liability.

Always inspect the property

Property inspection is very important. Photos showing the front of a property or any of its angles will not be worth a close, personal inspection. The photos will not show leaks, broken tiles, broken windows, mold and other repairs that need to be made to the property. A licensed home inspector can help you assess the damage and condition of the property, as well as provide you with a written estimate for any repairs that need to be made to the property.

An eye inspection will not only give you a first-hand understanding of the current state of bank-owned foreclosures, it will also give you an idea of ​​the type of neighborhood that surrounds them. You can also ask the people in the neighborhood a few questions about their personal experiences living in the area and other questions that will give you a better idea of ​​what to expect. The information you will gather from a home visit will help you make your decisions later.

research the title

Once you’ve found a property that interests you, do a title search. You may want to search public records to see if there are any outstanding debts, liens, or judgments on the property. Any entry should give you an idea that the property may still have a money debt to satisfy. You don’t want to buy a property for which you would have to pay double what you would have paid for one with a good, clean title. If the property has outstanding taxes or liens on the property, you may need to pay them before you can get title.

negotiate with the bank

Although banks necessarily want as much of a property as possible to recoup any of their losses, they may still be open to negotiations, especially if the property in question has been on the market for too long. Banks are typically flexible when it comes to bank-owned foreclosures that need major repairs. If you are someone who can manage a top property for a fix up and remodeling project, whether for resale or rental, then negotiating with the bank can give you a favorable outcome.

Lizards are not something we expect to see in our homes. In any case, if there is one running around the house, it is more than likely that it is the family pet. However, to some people, these lizards are nothing more than uninvited guests. You’ll see them running across the floor, up the walls, on the ceiling, and maybe even hear them inside the walls or ceiling. If there’s any good news in all of this, it’s that these geckos are harmless.

The fear that you may experience around him is yours alone. If you’re not intimidated by their appearance or this species of lizard in general, you might consider keeping one as a pet. We do not suggest you do that! Like many lizards, the house lizard requires a lot of maintenance. You would have to make a number of purchases and work hard to maintain the proper environment for the lizard. Most people are not willing to give this level of commitment.

House lizards are well known for entering houses through holes or cracks. If you are a homeowner and can visually see any cracks or holes around the perimeter of your home, geckos can too. They are very intelligent when it comes to finding the entrances to our houses. Once inside, if they find a new food source, and they do often, they won’t leave on their own. You will need to take some action to resolve the issue.

These little critters can easily get into foundation cracks or holes in the side of your house. Even if the space seems too small, it really isn’t. House lizards can also enter your home through cracks around windows. If you see one on the wall or ceiling, very close to one of your windows, you should inspect the area around the window very closely.

If you don’t take the time to seal or patch the holes and allow them to live in your home, the problem will not go away. There are some regions of the world where owners just ignore them. This is because they are very effective when it comes to keeping the population of other insects at bay.

This is not a good reason to ignore the problem. You are replacing one pest with another. While a particular insect may decrease in number, the population of the house lizard is sure to increase over time. So you will want to get rid of them. If you have other pets, particularly a dog or cat, they are likely to chase lizards into your home. Keep your house clean and look for different lizard repellants and fly paper to get rid of lizards already in your home.

Bank ownership is a great way to buy real estate at discounted prices. Bank foreclosures consist of residential homes, commercial properties, and vacant land. Whether you are looking for a first home, a vacation home, an investment property or a real estate deal, bank properties may be the perfect solution.

To purchase bank-owned properties, buyers must submit offers through the bank’s loss mitigation division or assigned real estate agents. When banks handle multiple foreclosures, they often use local real estate agents to list and display properties and submit offers. Buyers should be aware that banks rarely deviate from the sales price unless extensive repairs are revealed during property inspections.

Banks often take a huge financial hit during the foreclosure process. The average loss per foreclosed property is estimated at $60,000. The main objective of the banks is to recover most of the losses by selling repossessed properties. Buyers should plan to offer full asking price or slightly below.

Most foreclosures require repairs. This is particularly true of residential houses. Unfortunately, foreclosed homeowners often retaliate against lenders by causing property damage. It is not common to find retired appliances; floors and walls destroyed or mutilated; or broken windows and plumbing fixtures.

Real estate prices are based on current market value and are adjusted based on required repairs. Buyers should do their due diligence when getting property appraisals and home inspections. Repairs discovered during the home inspection that were not recorded in the original documents can be used to negotiate the purchase price.

Bank property is typically priced at least 10 percent below market value. However, there are options that allow buyers to get additional discounts. The first involves buying homes through Fannie Mae’s Home Path Mortgage program.

This government-sponsored mortgage financing program offers a wide range of discounted foreclosure properties. Many of the homes for sale are located in areas experiencing a higher than average foreclosure rate and may qualify for Neighborhood Stabilization Program grants offered through HUD.

Fannie Mae established Home Path to liquidate its national inventory of bank foreclosures by offering special financing options. Home Path may be a good option for buyers with poor credit and those who cannot afford the down payment requirements associated with conventional home loans.

Home Path requires a minimum 3 percent down payment and allows borrowers to obtain down payment assistance from outside sources; which is prohibited when obtaining financing through conventional lenders. Program details and foreclosed property listings are provided at HomePath.com.

Another way to buy bank properties at reduced prices is to look for real estate investors who buy bank portfolios. When investors buy foreclosure properties wholesale, they are getting wholesale prices, leaving them room to make a profit while selling real estate below market value.

Last but not least, buyers should consider looking for a property from a bank that has been on the market for 60 days or more. Banks sometimes negotiate prices when real estate has stagnated or when no one is bidding.

Using grants in conjunction with Fannie Mae foreclosures or wholesale real estate can further maximize savings and return on investment. Those who take the time to research options and educate themselves on the process can potentially save upwards of 30 percent or more.

It’s best to get information from reputable mortgage lenders and government agencies or real estate attorneys and investors who specialize in buying and selling bank-owned foreclosed properties.

A full but complex definition of the word ‘lot’ is found in section 5 of the strata scheme development legislation. It says that ‘lot’ means one or more cubic spaces that are part of the parcel to which a strata scheme refers, the base of each such space being designated as a lot or part of a lot on the floor plan that forms part of the strata plan, a subdivision strata plan, or a consolidation strata plan to which that strata scheme is related, in each case being space the base of whose vertical limits are delineated on a sheet of that plan of floor plan and that has horizontal boundaries as set forth in subsection (2), but does not include any structural space unless that structural space has boundaries described as prescribed and is described on that floor plan as part of a lot.

The definition consists of three elements which are cubic space (or cubic spaces), vertical and horizontal boundaries; and structural cubic space. As for the first element of space, it is the air space occupied or likely to be occupied by a three-dimensional figure. For example, the air space contained within a room is a cubic space. When the surveyor extracts the floor plan from the strata plan for eventual registration in the Registrar General’s office, each lot may be drawn on the strata plan comprising only one cubic space or several spaces, depending on whether the lot will consist of one or more spaces. a number of areas. The base of each of these spaces included in the lot must be clearly designated by the surveyor.

Regarding the second element of the limits, the provisions are technical and difficult to understand. Unless the surveyor has specifically endorsed a note on the strata plan to the contrary, the boundary shall be (so far as vertical boundaries are concerned) the interior surface of any constructed wall, if the wall corresponds substantially to any line drawn on the floor plan of the strata plan; and (as for the horizontal boundary) the upper surface of the floor and the lower surface of the roof that joins the vertical boundary. As for the third element of the structural cubic space, it is defined in the s. 5(1). ‘Structural Cubic Space’ means the space occupied by a vertical structural member, other than a wall, of a building, as well as any pipe, wire, cable, or conduit not for the exclusive enjoyment of a Lot and is in a building. in respect of which a plan of registration as a strata plan was filed with the Registrar General before the appointed day and notified under section 2(3) of the Strata Titles (Development Schemes) Act 1985; or in any other case – are located in a building or in a part of a plot that is not a building. Finally, structural cubic space can mean any space enclosed by a structure that encloses any such pipe, wire, cable, or conduit. The structural capacity is part of the common good that the owners’ association (not the owner, even if it is contained within the lot) is obliged to maintain, repair or replace when the need arises.

In simple terms, structural cubic space comprises any of the following four types of structures. The first is the air space occupied by a vertical structure, but without being a wall. For example, a main vertical support pillar across the lot. The second is any pipe, wire, cable, or conduit in the building that is not for the exclusive use of one lot. For example, an air conditioning duct that runs through one lot and then another lot for the use of both owners. The third is any pipe, wire, cable or conduit outside or inside the building but inside the parcel that is not for the exclusive use of a lot where the strata plan was submitted for registration after March 1, 1986. The last type of structure that has been built with the parcel by the corporation of owners around any of the elements mentioned in (2) above. Examples of structural cubic space include a wood frame built around the air conditioning duct or the cavity separating the first and second floors of a row house that contains such elements.

A kitchen is a very important part of your home that can increase the value of your home when you decide to sell it. Of course, there are also other aspects that go into determining the overall value of your kitchen. You may want to remodel your kitchen so that it is designed to your specifications. You can opt for contemporary designs or give it a traditional touch. Regardless of the options you choose, it’s important to consider a few things before proceeding with your remodeling plan, as your kitchen is such an important part of your home.

Choose kitchen cabinets that offer great value for your money. Ideally, your kitchen cabinets should be able to fit into the overall decor of your home. Cabinets come in different types. They are available in a variety of sizes and shapes, colors, designs, etc. In fact, you can choose these cabinets based on your kitchen needs. If you want to retain a traditional feel, you can opt for oak based kitchen cabinets. You can also look at some of the latest designs to give your kitchen a more contemporary look. Another option that you should really consider is the ready-to-assemble kitchen cabinet, as it offers great value for money and does not compromise on quality.

Ready-to-assemble cabinets have undergone a complete transformation. Until recently, ready-to-assemble kitchen cabinets were made using particle board. Staples and dowels were used to hold the particle board together. Less expensive kitchen cabinets were available with a veneer surface that warped or warped due to contact with water. This used to cause a lot of damage to kitchen cabinets thus reducing their lifespan. However, today you can get the best quality kitchen cabinets made in accordance with the manufacturing guidelines set forth by the KCMA.

There is a wide range of kitchen cabinets available in the market. Most kitchen cabinets you find on the market are made to KCMA specifications. You will find ready-to-assemble kitchen furniture made with very high quality materials. Today, you’ll find kitchen cabinets with wood frames and doors.

Finally, the best option is to go for RTA kitchen cabinets as it has many affordable options and is ideal for those who cannot afford expensive kitchen cabinets.

After reading my previous posts on wholesalers, you should be able to find deals and know that they need to be bought at a big enough discount so you can sell them to investors who, in turn, can make their own profit from them. Here we will assume that you have these great deals and you just don’t have buyers to buy them.

So how do you find cash buyers?

1. First, it is important net at your local REIA meetings. You can find the meetings of your local real estate investors association at NationalREIA.org. Be sure to attend regularly to meet your local investors and what they’re looking for. Some like big rehabs, some like smaller ones, some want properties they can invest less in and then hold long term as rentals and want to buy those with equity already in them.

2. In most areas, you can find diversified investors meetings at MeetUp.com. Once again, attend and network to be known as the local with wholesale properties.

3. Find local Homeowners Association meetings Your attendees are really doing business and are often looking for more properties for themselves.

Four. Call all bandit cartels you can find and see if any of those investors are interested in your deals. Request permission to add your email and phone number to your list of potential buyers.

5. get names, phone numbers, and email addresses at each meeting you attend. This is how you make your list of investors to send by mail. I am constantly asked where to get a list of potential buyers and sellers. The list cannot be bought, you make it yourself. It takes time but you don’t need many names. What you want on the list are quality names, the ones who are actually doing the business, who have the funds, desire, and ability to buy deals from you. It really doesn’t take a lot of names to make a big list.

6. If you have great offers, you won’t need to talk to many investors to sell them. If you talk to six investors and they don’t sell, they’re not deals, which means you’re either paying too much to buy or expecting too much profit when you resell.

7. Be proactive. If there are no good investor meetings near you, start one. This is not an isolated business; You must be in network and be part of the investment group to be successful.

8. If you have too many offers for sale, may not actually be offers. If your properties are not selling quickly, they are probably priced too high.

9. Do you have the right investors? for your offers? If you’re looking for mobile homes, do you have mobile home buyers on your list? If you buy in highly disadvantaged areas, do you have investors who want those deals? Make sure your buyer list is diversified enough to have buyers for any type of deal you find.

10 Are your offers good? If you really have good deals, investors will make a profit when they buy from you and will come back again and again. Soon, you won’t be looking for investor buyers, they’ll be looking for you.

Do you have a list of buyers? Are you able to sell quickly? What tips can you add?

The essential

The escrow company generally acts as a neutral intermediary between all the parties involved in a real estate or mortgage transaction.

These parts may include:

• lenders
• runners
• insurance agents
• appraisers
• notaries

A mortgage loan usually involves a large amount of paperwork. This is necessary to protect all parties involved, including buyers, sellers, lenders, and others.

The escrow agent also handles the transfer of money between the parties. A lender will transfer money to an escrow account. If this is a cash-out refinance, the escrow agent will deduct any applicable fees owed to other parties and pay the remainder to the borrower.

If the transaction is a real estate purchase, the escrow agent will receive money from the lender, pay existing mortgages and closing costs, collect any deposits from the buyer, and deliver the remainder as proceeds of sale to the lender.

After any transaction, the relevant public records are updated to reflect the ownership of a property and the liens on it.

It is a critical job that requires meticulous record keeping.

How does the trust affect you?

Escrow fees are typically around $500-$1,500, depending on the size of the loan. The amount of the escrow fee may change depending on the amount of the loan or transaction.

Comparison of escrow services

Escrow service is typically chosen by real estate agents in the case of a real estate purchase and by the lender or mortgage broker in the case of a refinance.

Professionals who have done many deals usually get a better price per deal from an escrow company, which, in turn, can pass the savings on to you.

You can ask how the escrow agent is selected and find out how their rates compare.

If you have $40,000 dollars and are wondering how to invest it, you need to consider what you expect from an investment. Do you want a safe investment or are you willing to risk losing your $40,000? Do you want to make your bussiness grow? There are many different ways to invest money and there are many different ways to lose your money.

If you were to ask a millionaire how to make more money, they would tell you that if you are really interested in making more money and being successful, the best way to do it is to reinvest your money. That means taking the $40,000 and putting it back in business.

For example, if you were renovating houses and you make a profit of $40,000 dollars, buy another house to flip. If you end up selling that house for $80,000, you’ve just recouped your initial investment and made another $40,000 profit. Every time you get your initial investment, you put it into something else, perhaps an account to earn compound interest or another business venture, which serves to increase your wealth. The point is that you still recoup the initial investment and have a profit to keep the business going. It won’t take long to turn that $40,000 into $1 million.

Following this seemingly simple system has been the creation of many millionaires. It’s a quick and easy method that is simply a process of reinvesting in yourself, and who would be foolish enough to say they wouldn’t invest in their own success?

Huge amount of REO homes still held by lenders; Foreclosure actions rise sharply in other US cities

Fitch Ratings, a global credit rating agency, now estimates that the huge “shadow inventory” of REO properties still held by lenders will take at least 40 months to process and sell.

With an estimated 7.5 million REO homes still to be listed, it will take some time for major banks to liquidate these properties. Of all the family home loans JPMorgan Chase has, for example, one in thirteen is in foreclosure today for a total value of $20 billion. Currently, it takes approximately 18 months to process and resell an REO home, starting from the date of the last mortgage payment.

These numbers guarantee that REO listings will continue to account for a large portion of all real estate sales for at least the next three to four years.

A further spike in foreclosures will also add considerably to the overall REO inventory. Ongoing foreclosure actions are starting to see big jumps in other areas of the United States. While most of the attention has been directed at Florida, California, Nevada and Arizona, the “big four” that have seen the largest increase in REO properties in recent years, other cities and states are suddenly seeing dramatic increases. .

In the third quarter of 2010, foreclosure actions (which include everything from default notices to actual bank repossessions) increased in 65 percent of the top 200 housing markets in the country. Seattle saw a 71 percent increase, Chicago a 35 percent increase, and other cities like Houston and Atlanta also saw double-digit increases. When it comes to actual bank foreclosures, Boise, Idaho saw a 71 percent increase and Philadelphia saw a 38 percent increase.

Unemployment seems to be driving these new numbers, and it’s also affecting the number of prime mortgage delinquencies in recent months, which also rose sharply. Managing director of Lender Processing Services’ applied analytics division, Kyle Lundstedt, said current mortgage delinquencies exceed 7 million.

Loan modifications aren’t helping struggling homeowners either. It was recently reported that of the approximately 16,000 mortgage modifications made on Freddie Mac loans in the second quarter of 2009, 42% had returned to delinquency 12 months after the restructuring. Which explains why Freddie Mac suffered a $2.5 billion loss in the third quarter and requested another $100 million from the US Treasury.

REO agents, brokers, and other professionals trained in this specialized field will continue to be desperately needed as this segment of the real estate market continues to dominate in the coming months.