Thursday, August 30, 2012

Streamlined FHA 203K Loan - The FHA Home Loan Program For Fixer-Upper Homes!

In latest reports, home ownership rates have raised continuously due to the implementation of the FHA Home Loan Program. Acquiring homes continues to be made a lot easier mainly because of this particular advantage. But if you want to buy a home that needs repairs the best way to finance it is a Streamlined FHA 203K Loan.

Through the years, FHA has aided Americans to realize their rights in buying the houses which they desire. Sensible home loan rates for middle class, creating property for the seniors and people with lower earnings, and funding military housing are only some samples of what the FHA has been doing on their behalf. But one of the best ways to finance or refinance a home that needs a lot of repairs is a Streamlined FHA 203K Loan.

The Streamlined FHA 203K Loan is one of the best loans of the FHA Home Loan Program. You can get more information on the Streamlined FHA 203K Loan and the FHA Home Loan Program by clicking on the links at the bottom of this article.

The full course of action starts with the loan companies advancing the mortgages to those whom commonly could not purchase a home devoid of their support. However, these individuals have got to satisfy the FHA specifications just before they can be provided with the mortgages which they may be trying to get. One qualification they have to satisfy is that they ought to possess a good credit score ranking.

When they have a poor credit history, they may have difficulty having their application accepted. Whenever they do have it accepted, it may mean that they will have to pay out an increased rate of interest when compared with anyone who has favorable credit history. FHA does have more lenient credit requirements than conventional loans.

Furthermore, FHA loans provide advantages to the people who desire to get houses but can't make down payments simply because they may be fresh college graduates, newlyweds, or individuals who will be still attempting to finish their schooling. The down payment for FHA Home Loan Program is only 3.5%.Additionally , there are several loan companies whom make it possible for folks having bad credit score to be eligible nevertheless. They are aware that these individuals are marred by foreclosure or bankruptcy nevertheless they are going to provide them with an additional opportunity.

The Streamlined FHA 203K Loan is one among the most favorite FHA home loan. There is a fixed interest rate and this is the most perfect for first time home buyers. It enables the people pay up to 96.5 percent of their entire mortgage loan. What this means is the down payments are managed on a controllable level and also the settlement costs will also be at a minimum.

The Streamlined FHA 203K Loan is the only mortgage loan where the sum of the settlement costs might be provided as gift from family, employer, or non-profit or governmental agency.

Nonetheless, the guidelines to consider in this entire transaction whenever working with the FHA 203K Mortgage is that there exists a minimum income requirement. The person should be eligible for this prior to be given an FHA 203k loan.

Your debt ratios can also be specific, based upon on the state he could be residing in. The Streamlined FHA 203K Loan is a good investment decision since one can possibly obtain the house he's been seeking and have the repairs rolled into their mortgage.

The best place to do more research on the Streamlined FHA 203K Loan and other FHA Home Loan Program loans is the Internet. You will be able to find websites with additional information that will help you buy your dream home even though it does need repairs!

Sunday, August 26, 2012

IRA Distribution for Self Directed Owners Who Hold Real Estate

Self directed IRA account holders are allowed to invest in real estate, and this is a simple process with big benefits since the account holder has the power to make all the investment decisions on behalf of the IRA. The biggest advantage of a real estate IRA is that all income is tax deferred until such time that a distribution is taken. With a traditional IRA, until the owner turns 70.5 years old, no distributions are required. If it is a self directed Roth IRA LLC, the owner enjoys completely tax-free gains.
Here is an example. If, as the self directed Roth IRA owner, you buy a property through the self directed IRA for 0,000 and sell it at 0,000, the profit is tax free. But if you invested in the property with your personal funds, you would need to pay federal income tax on the 0,000 profit in addition to state income tax, depending on where you live.
Buying your property
Your IRA custodian will most likely let you invest in land, residential or commercial properties. There are custodians who also allow overseas or leveraged property. In certain situations, the cost of the property may be more than what's available in your IRA. In such cases, you can buy the property jointly with other owners or leverage the purchase by applying for a non recourse loan. The property thus purchased cannot be used as your personal residence or business premises, the point being that you cannot personally benefit from the property as this can result in tax implications.

Distributing your real estate IRA Property

When you reach the retirement age of 59.5 years, you can withdraw your real estate IRA to use the property as a second residence. At this point, you can choose to sell the property through your IRA or opt for a distribution in kind. What happens in a traditional IRA is that the IRA custodian assigns you the property title, making you liable for income taxes on the property's present value. If it is a Roth IRA, the distribution is tax-free.

Rules related to required minimum distribution in self directed real estate IRA
At the time of establishing the self directed IRA, the account holder must nominate primary and secondary beneficiaries. These are usually a spouse or children. The benefit here is that the IRA can be rolled into the spouse's name and this carries a tax benefit. If a specific trust is nominated as the beneficiary, the account holder must adhere to the required minimum distribution rules or RMD.
According to the RMD rules, the IRA holder or beneficiaries must withdraw their retirement money at a specific time in the future. There are different rules related to traditional IRAs and Roth IRAs. In the case of a self directed IRA the rules are unique. If the IRA has pre-tax funds, the account holder's distributions must begin at the age of 70.5 on an annual basis. If it is a real estate IRA or other private business interests, there is a likelihood of the IRA having no cash and the distributions become complex. The account holder could end up paying large income taxes or incur penalties for not taking the RMD, all without actually seeing the cash.
It is important to know your options when you invest in real estate with your self directed IRA. Most self directed IRA owners prefer to opt for a non recourse loan through non recourse lenders as it benefits them by protecting their other assets and from personal liability.

Thursday, August 23, 2012

Start Up Business Financing Alternatives You Must Try Out

To successfully fund your start up business, we recommend that you employ one of the following alternatives:

- A business loan. This kind of loan is often considered the most traditional form of business financing. With it, you can look forward to receiving sufficient funds to finance a business requirement. In return, you will be asked to submit payments to your lender, on a monthly basis, until you can completely pay back the funds you borrowed, plus a reasonable interest charge.

However, you should remember that applications for traditional business loans often take as much as four months to receive approval. And so this might not be the best financing option for you, especially if you need a huge sum of cash to finance an urgent business need.

- A small business credit card. Did you know that there are credit cards especially designed to meet the needs and special requirements of business owners? They're called business credit cards. You can apply for one and use it for covering the bills and expenses you will incur, especially if you don't have enough cash to settle them, right away.

There are two basic types of business credit cards - secured and unsecured. To get a secured business credit card, you need to make a substantial deposit to your target card issuer. This initial cash-out serves two important purposes. First, it guarantees the repayment of your credit card charges, in case of default. Second, it determines the spending limit that will be imposed on your business card account.

An unsecured business credit card, on the other hand, does not come with a security deposit requirement. Instead, it carries strict credit score requirements and steep interest rates. Still, it is worth mentioning that such lines of credit come with much higher spending limits or caps as compared to their secured counterparts.

- An equipment lease. If your business has limited financial resources and you need expensive equipment, such as heavy machinery, vehicles or office furniture then, we encourage you to lease, instead of purchasing, them. Look for an equipment supplier nearby and arrange for a true lease. After all, with this option, you can receive the equipment you need without shelling out a significant percentage of your working capital. Moreover, you can use your business finances for covering more urgent startup costs you will soon incur.

- Invoice factoring. If you're in dire need of cash to settle your financial obligations and to keep up with your loan payments then, we suggest you sign up for invoice, or accounts receivable factoring. In this arrangement, you will submit some of your unpaid invoices to a factoring company, for cash. This will provide you with at most 80% of the sum of cash tied-up with your accounts receivable. The remaining 20% will be given to you by the factoring agency as soon as it receives complete payment from your customers.

Now, to avoid problems, we suggest you carefully select the invoices you will submit for factoring. Look for the receipts from your most reliable customers and file them with your chosen factoring agency. By doing so, your enterprise can avoid getting penalized for payment delinquency or default.

Copyright (c) 2013 Irish Taylor

Thursday, August 16, 2012

What Different Types of Real Estate Agents Do

When buying a new home, it's important to hire a real estate agent. If you choose to hire a realtor, they will be the person you are in contact with the most. There are several different types of real estate agents that all do different things, What they do will sometime overlap with each other but it's important to know that you're hiring the right type of real estate agent for your purpose and that means knowing the difference between them. Here's a look at the different types of real estate agents and their areas of expertise:

Agents - Agents have gone through the necessary education and training needed to help somebody buy or sell a home and has been licensed through the state. Educational requirements will cover the state's laws, practices, policies, and regulations regarding real estate. Real estate agents will be associated with a broker and act under their authority. Real estate agents can be called by several other titles depending on the state that they are located. These names include real estate sales people, sales agents, subagents, and oddly enough brokers.

Brokers - Brokers are similar to agents, they do most things that the other can do. What sets a broker apart from an agent is the fact that brokers typically have more experience and they have met the requirements set by the state in order to own, operate, and manage their own real estate company. These requirements usually involve a certain amount of experience as an agent in addition to some advanced coursework and a written exam. Like agents, real estate brokers can also be called other things depending on location. These alternate titles include principal brokers and qualifying brokers.

In the process of buying a home, you will consistently be in contact with your real estate agent. In this process, the word agent takes on a different meaning. The word "Agency" is used in lieu of "Representation" and "Agent" in lieu of "Representative". In this sense, during the home buying/selling process there are three types of agents:

Seller's Agent - This is an agent that works with just the seller on any home buying process. They are also commonly referred to as the listing agent. If you do not hire a real estate agent when purchasing a home, all of the real estate agents you speak to will be listing agents. These agents typically do not work exclusively as seller's agents but actually switch based on the needs of their clients.

Buyer's Agent - These are the agents that help homebuyers through the process. They will work exclusively with the homebuyer in order to help them get what they want and will help negotiate a fair price. Typically, hiring a buyer's agent consists of signing a formal agreement stating that they represent you and your interests in buying a home.

Dual Agent - As the name implies, Dual agents work with both the buyer and seller in a particular home buying deal. This can cause a conflict of interest for the agent but it is legal so long as both of the parties involved in the process agree.

If you're looking to buy or sell a home, it's important to know exactly what you're getting into. This information should assist you in your search for a real estate agent. Find out whether your prospective agent specializes in one of these areas and use that information to find the real estate agent that best suits your interests.

Thursday, August 9, 2012

Keynesian Economics Is A Failure

Keynesian exuberance for the powers of stimulating demand or the 'consumer' has been in vogue since the 1930s. It is sheer nonsense which is taught in every school across the globe. Keynesian economics is little more than intellectual pablum used by those in power or by a technocratic and largely illiterate elite to increase their power; enhance government; print money and otherwise destroy normal economic relationships. Keynes' theory, so believed by professors is in practice a disaster.

Keynes was a left wing wall flower and a member of the deranged Bloomsbury group of inter-World War British pacifists. He was an arrogant theorist who truly believed in the magical elixir of large government and in the technocratic dream of controlling billions of personal, business and economic decisions, to programmatically construct a perfect world order. Keynes gave intellect and jargon filled cover and rationale to politicians and demagogues who would cite his book, 'The General Theory of Employment, Interest and Money', to justify state interventionism.

According to this theory which has failed in practice every time it has been tried, governments can stimulate an economy through granting consumers, workers and businesses sums of borrowed money. This is termed a 'stimulus'. This debt or current deficit financing stimulus, is then paid back or retired, when the economy strengthened by consumer spending and business investment, produces a surplus of tax revenues. The stimulus is needed, so argued Keynes, to overcome business cycles, downturns and unexpected events which would decrease jobs, increase unemployment and impact state revenues. By macro and micro-managing economic and production processes, the state, so thought Keynes, would avoid cyclical variations and ensure that the lowest level of unemployment could be maintained. Government power was thus indispensable to full employment and income equality.

There are many problems with such a counter-rational plan to economic management. None of Keynes' core assumptions make sense when they are analysed either separately or together. Business cycles have historically been caused by governments, and they are usually a response to government policies to increase the size of the state through trade barriers, higher taxation, more spending, more regulation and programs of fear and compliance. The Great Depression, the 70s Stagflation and the current financial crisis are all obvious examples of this fact. Government causing economic malaise would appear to mean that government programs are not the solutions required to either get out of an economic downturn, nor to prevent future derailments from taking place.

The main impact of Keynesian economic stimuli is to increase debt; raise future tax rates and distort the normal functionings of economic markets and personal and corporate decision making. Governments choose winners and confirm losers. The winners will include companies which get bailed out, those receiving welfare, unions and others having their jobs protected, those receiving redistributed incomes and those paid off for political support. The losers invariably include firms both domestic and international who want fair and free trade; higher income families; small businesses who are classified under high income categories; future generations who must pay off the debt; and consumers who pay a higher costs for all products and services.

Under Keynesian philosophy, government and technocrats assume the role of God. Given the poverty of God heads throughout history, this is probably not a noble supposition to support.

Brian Reidl from Heritage Institute wrong an excellent article recently on the fallacy that government spending, or what is termed Keynesian deficit spending, run by God-heads, is beneficial (see Reidl
In this article he makes the following important points about demand-side management and the Keynesian fetish for economic control.

Government cannot create new purchasing power out of thin air. If Congress funds new spending with taxes, it is simply redistributing existing income. If Congress instead borrows the money from domestic investors, those investors will have that much less to invest or to spend in the private economy. If Congress borrows the money from foreigners, the balance of payments will adjust by equally reducing net exports, leaving GDP unchanged. Every dollar Congress spends must first come from somewhere else.

This does not mean that government spending has no economic impact at all. Government spending often alters the consumption of total demand, such as increasing consumption at the expense of investment.

When stimulus packages are created the money has to come from someone via taxes, or be printed. Both are net negatives to the economy. Economic growth only results from producing more goods and services (not from redistributing existing income), and that requires productivity growth and growth in the labor supply as productivity not only increases wealth but also wages and wage opportunities.

Historically of course government spending has reduced productivity and long-term economic growth due to some obvious reasons. As government spends more it raises taxes which reduces profits, productivity and wage and job creation. As government incurs more debt through stimulus and demand side packages it reduces the incentive to produce and displaces money by removing the more productive private sector from the economic equation and replacing it with a far less effective state dollar, taxed or printed on government printing press. The inefficiency of government policy in health, housing, education, and general industry are obvious creating huge costs which must be borne by ordinary taxpayers ineffective solutions at a higher price one can say.

And as Reidl sources and proves:
Mountains of academic studies show how government expansions reduce economic growth:
1.Public Finance Review reported that "higher total government expenditure, no matter how financed, is associated with a lower growth rate of real per capita gross state product."
2.The Quarterly Journal of Economics reported that "the ratio of real government consumption expenditure to real GDP had a negative association with growth and investment," and "growth is inversely related to the share of government consumption in GDP, but insignificantly related to the share of public investment."
3.A Journal of Macroeconomics study discovered that "the coefficient of the additive terms of the government-size variable indicates that a 1% increase in government size decreases the rate of economic growth by 0.143%."
4.Public Choice reported that "a one percent increase in government spending as a percent of GDP (from, say, 30 to 31%) would raise the unemployment rate by approximately .36 of one percent (from, say, 8 to 8.36 percent)."

It is obvious that Keynesian economics and demand management are tools for fools. Wealth, a better society, a cleaner world, a higher level of development is not coerced by government. It only occurs when free people operating in free markets are allowed to interact and determine the price and supply of various goods and services. Government involvement ensures the opposite and is a theory mired in cultish theological absurdity.