Archive for the ‘Finance’ Category
The Mechanics of a Mtn Private Trading Program
Marcel Ford asked:
Considering that top major banks issue Medium Term Notes (known as MTNs and Mid-Term Notes) to raise funds in both U.S. and Euro dollars, we can better understand that they are for the purpose of generating Operating Loans and issuing Letters of Credit to businesses which wish to buy material and products from other business organizations in other countries. To further expand on this in laymen terms, this therefore results in an International Treaty whereby the U.S. Dollar (or the Euro) becomes the common Medium of Exchange for International Trading.
By Federal Law, a European bank is not allowed to sell such Medium Term Notes directly to the Public. They must be issued and sold through a Federal Reserve Licensed Trader; just as in the same context a Corporation or a Municipality must sell Bonds through a Dealer or Underwriter.
The Trader, aiding in the distributional sales of newly issued MTNs from the major sized Bank will have a $50B (Billion) contract (or of equivalent amounts) with the Issuing Bank to purchase MTNs for immediate resale. This Trader would instigate the following:
A Non-Revocable Contract (see further explanation in Paragraph A) with an Exit Buyer, such as a Pension Fund, to buy those MTNs from them immediately, and with a contract with a Participating Investor, acting as the Trader’s ‘Associate’ to furnish the Proof Of Funds (POF) required, simply as a formality, to start and continue the Purchase and Resale series of Transactions.
The Trader also makes contractual arrangements with their own bank, through their bank’s ‘Back Room’ Trading Department, to act for them during the Transactions of $100M (Million) or greater. This $100M amount is the minimum set by the U. S. Federal Reserve for this type of Bank issued MTN Distribution.
The ‘Associate’ thereby arranges for their own bank to issue to themselves a POF using $100M in Cash Funds, which are wholly owned by them, in their account at their own bank. This enacts the ability to obtain cash credit of $100M for the POF. This POF is then sent to the Trader in accordance with the contract between Trader and their ‘Associate’.
It is important to note that Medium Term Note Trading is a very specific process. When less than experienced Associates expect absolute perfection and “up-to-the-minute” communication, these immediate reactions inevitably cause more delays, short-comings and frustrations on behalf of not only the Associate but the Trade Platform as well.
Several factors influence the timing of entering a trade; the current availability of Medium Term Notes, which can easily be in short supply, the timing of the trade submission and the specific programs that cancel without notice. On occasion, these unexpected market trends give a false illusion resulting in the sophisticated MTN Trading Platform to appear chaotic. Nothing is further than the truth.
Below is a typical scenario of a Private Mid-Term Buy/Sell Program.
a. The Trader’s Bank communicates with the Issuing Bank as well as with the Exit Buyer’s Bank, obtaining a detailed agreement with the Issuing Bank Officer and with the Exit Buyer’s Bank that they are both prepared to commence the contracted series of Transactions. The Exit Buyer’s Bank forwards a POF to the Trader’s Bank for the amount of the first purchase of $100M (Note – When a POF has been issued for the Exit Buyer and forwarded to the Trader’s Bank, there is a legal Funding Commitment to complete that Transaction, which may NOT be revoked while the transaction is taking place).
b. The Trader’s Bank forwards to the Issuing Bank a POF in the name of the Trader and requests that a MTN be issued in the name of the Trader, along with an Invoice at a discounted price, say for example only $97M, payable in 8 Hours.
c. A copy of the Note and an invoice at $97M, is forwarded to the Trader’s Bank, which authenticates signatures and MTN terms to verify compliance with the Purchase Contract.
d. The Trader’s Bank then forwards the copy of the MTN, along with a Conditional Assignment of the MTN, to the Exit Buyer’s Bank, along with an Invoice at the Exit Buyer’s Purchase Contract Price, $100M for example purposes, payable in 4 hours.
e. The Exit Buyer’s Bank authenticates signatures, verifies compliance with the Purchase Contract, and pays the $100M Invoice price to the Trader’s Bank for credit to Trader’s account, within the 4 hour limit.
f.The Trader’s Bank pays Issuing Bank’s Invoice for $97M within the 8 hour limit, along with instructions for the Original MTN to be sent to the Exit buyer’s Bank by courier.
g. The Trader’s Bank debits the Trader a Bank Fee (1/4% for example purposes) for their Services Rendered, and forwards the balance, $100M minus $97M minus 1/4 %, to the Trader, who pays the Trader’s ‘Associate’ for their Service Rendered.
h. The Procedure used for this example, typically takes place 4 times each day of a 4 business day week, and repeats until the Trader’s Purchase Contract is completed. Using this formula, the weekly payments to the ‘Associate’, would be equal to 22% of their POF amount. (3% per transaction x 4 per day x 4 days per week = 48% – 4% as Bank Fee = 44% / 2 = 22% = $22M per week)
Note: The Operation described above is a very conservative one. There are other MTN Trade Operations, of the same MTN basis but involving a resale of the MTNs by the ‘Exit Buyer’, which have a higher Rate of Return to the Trader involved, and therefore an even higher payment to the ‘Associate’ involved.
An experienced Associate can safely state that with the listed procedure and controls for the Transactions, the only reason for a Transaction failing, once commenced, would be for the Exit Buyer’s Bank to default on completing a contracted purchase of a Note, which would result in a jeopardy to their Bank Charter.
Should any default take place, it would be quite simple for the Trader to make the required Payment, using their own Funds, to complete their purchase of the Instrument, and to immediately sell it to a different contracted Exit Buyer. This action by the Trader eliminates any risk of loss by the Buyers and Exit Buyers and ‘Associate’.
NOTE: With minor variances in the connection of an Investor’s Funds to a Trader’s $100M Operating Fund, an Investor may enter into an Operation with $10M, or more, with similar percentage payments to them for services rendered. By the same token, an Investor may enter into a trading operation with as much over $100M as they have available.
Commercial Loans to 65% of Value
Considering that top major banks issue Medium Term Notes (known as MTNs and Mid-Term Notes) to raise funds in both U.S. and Euro dollars, we can better understand that they are for the purpose of generating Operating Loans and issuing Letters of Credit to businesses which wish to buy material and products from other business organizations in other countries. To further expand on this in laymen terms, this therefore results in an International Treaty whereby the U.S. Dollar (or the Euro) becomes the common Medium of Exchange for International Trading.
By Federal Law, a European bank is not allowed to sell such Medium Term Notes directly to the Public. They must be issued and sold through a Federal Reserve Licensed Trader; just as in the same context a Corporation or a Municipality must sell Bonds through a Dealer or Underwriter.
The Trader, aiding in the distributional sales of newly issued MTNs from the major sized Bank will have a $50B (Billion) contract (or of equivalent amounts) with the Issuing Bank to purchase MTNs for immediate resale. This Trader would instigate the following:
A Non-Revocable Contract (see further explanation in Paragraph A) with an Exit Buyer, such as a Pension Fund, to buy those MTNs from them immediately, and with a contract with a Participating Investor, acting as the Trader’s ‘Associate’ to furnish the Proof Of Funds (POF) required, simply as a formality, to start and continue the Purchase and Resale series of Transactions.
The Trader also makes contractual arrangements with their own bank, through their bank’s ‘Back Room’ Trading Department, to act for them during the Transactions of $100M (Million) or greater. This $100M amount is the minimum set by the U. S. Federal Reserve for this type of Bank issued MTN Distribution.
The ‘Associate’ thereby arranges for their own bank to issue to themselves a POF using $100M in Cash Funds, which are wholly owned by them, in their account at their own bank. This enacts the ability to obtain cash credit of $100M for the POF. This POF is then sent to the Trader in accordance with the contract between Trader and their ‘Associate’.
It is important to note that Medium Term Note Trading is a very specific process. When less than experienced Associates expect absolute perfection and “up-to-the-minute” communication, these immediate reactions inevitably cause more delays, short-comings and frustrations on behalf of not only the Associate but the Trade Platform as well.
Several factors influence the timing of entering a trade; the current availability of Medium Term Notes, which can easily be in short supply, the timing of the trade submission and the specific programs that cancel without notice. On occasion, these unexpected market trends give a false illusion resulting in the sophisticated MTN Trading Platform to appear chaotic. Nothing is further than the truth.
Below is a typical scenario of a Private Mid-Term Buy/Sell Program.
a. The Trader’s Bank communicates with the Issuing Bank as well as with the Exit Buyer’s Bank, obtaining a detailed agreement with the Issuing Bank Officer and with the Exit Buyer’s Bank that they are both prepared to commence the contracted series of Transactions. The Exit Buyer’s Bank forwards a POF to the Trader’s Bank for the amount of the first purchase of $100M (Note – When a POF has been issued for the Exit Buyer and forwarded to the Trader’s Bank, there is a legal Funding Commitment to complete that Transaction, which may NOT be revoked while the transaction is taking place).
b. The Trader’s Bank forwards to the Issuing Bank a POF in the name of the Trader and requests that a MTN be issued in the name of the Trader, along with an Invoice at a discounted price, say for example only $97M, payable in 8 Hours.
c. A copy of the Note and an invoice at $97M, is forwarded to the Trader’s Bank, which authenticates signatures and MTN terms to verify compliance with the Purchase Contract.
d. The Trader’s Bank then forwards the copy of the MTN, along with a Conditional Assignment of the MTN, to the Exit Buyer’s Bank, along with an Invoice at the Exit Buyer’s Purchase Contract Price, $100M for example purposes, payable in 4 hours.
e. The Exit Buyer’s Bank authenticates signatures, verifies compliance with the Purchase Contract, and pays the $100M Invoice price to the Trader’s Bank for credit to Trader’s account, within the 4 hour limit.
f.The Trader’s Bank pays Issuing Bank’s Invoice for $97M within the 8 hour limit, along with instructions for the Original MTN to be sent to the Exit buyer’s Bank by courier.
g. The Trader’s Bank debits the Trader a Bank Fee (1/4% for example purposes) for their Services Rendered, and forwards the balance, $100M minus $97M minus 1/4 %, to the Trader, who pays the Trader’s ‘Associate’ for their Service Rendered.
h. The Procedure used for this example, typically takes place 4 times each day of a 4 business day week, and repeats until the Trader’s Purchase Contract is completed. Using this formula, the weekly payments to the ‘Associate’, would be equal to 22% of their POF amount. (3% per transaction x 4 per day x 4 days per week = 48% – 4% as Bank Fee = 44% / 2 = 22% = $22M per week)
Note: The Operation described above is a very conservative one. There are other MTN Trade Operations, of the same MTN basis but involving a resale of the MTNs by the ‘Exit Buyer’, which have a higher Rate of Return to the Trader involved, and therefore an even higher payment to the ‘Associate’ involved.
An experienced Associate can safely state that with the listed procedure and controls for the Transactions, the only reason for a Transaction failing, once commenced, would be for the Exit Buyer’s Bank to default on completing a contracted purchase of a Note, which would result in a jeopardy to their Bank Charter.
Should any default take place, it would be quite simple for the Trader to make the required Payment, using their own Funds, to complete their purchase of the Instrument, and to immediately sell it to a different contracted Exit Buyer. This action by the Trader eliminates any risk of loss by the Buyers and Exit Buyers and ‘Associate’.
NOTE: With minor variances in the connection of an Investor’s Funds to a Trader’s $100M Operating Fund, an Investor may enter into an Operation with $10M, or more, with similar percentage payments to them for services rendered. By the same token, an Investor may enter into a trading operation with as much over $100M as they have available.
Commercial Loans to 65% of Value
Private Lending Secrets – The Top 3 Reasons Why Private Lending is the Key to Real Estate Investing
Michel Lautensack asked:
first got into real estate investing I was always using my own money to pay for everything including the 20% down payment of the purchase price, rehab costs, closing costs and all the other cost that came up unexpectly. It did not take long to drain my bank accounts with this plan.
Get Business Loans Now
first got into real estate investing I was always using my own money to pay for everything including the 20% down payment of the purchase price, rehab costs, closing costs and all the other cost that came up unexpectly. It did not take long to drain my bank accounts with this plan.
This is where I knew I had to have another plan or my real estate investing business was going to come to quick halt. I finally started utilizing private lenders. these lenders would help me fund my down payments, some or all of my rehab costs and even some of the loans costs. I finally had a way to buy real estate without using much or even any of my personal funds.
What is the importance of private lending? The answer is using private lenders to fund your real estate deals. Private lending is a consistent source of funds to purchase real estate deals that you can go back to again and again and again. In fact, the more you use, the more will become available as you develop relationships with more private lenders.
Having the ability to fund all of your projects with private lending is critical to a real estate investors success in this business.
There are three great reasons for using private investors to fund your real estate deals and allow you to grow your investment business.
First, utilizing private lenders will free up your cash to be used for new deals and for making offers versus such things as down payments, rehab costs, and all the costs associated with acquiring a piece of investment real estate. Now you can focus on new deals with your money and use your private lenders to fund the deals you have under contract.
Secondly, private lending is really the only game in town at this time. It very hard, if not impossible for the average real estate investor to get traditional loans from bank or saving and loans with great credit and at least 40% down payment. Hard money lenders are a thing of past as the credit crisis has wipe most of them out. So you are left with private lenders as the only real dependable source of loans to buy investment real estate.
Third, the benefits of private lenders is that the money is relatively cheap at 9% to 15% versus hard money at 25% or more. The documentation and forms are very simple and only require 4 documents to close a private lending deals versus a bank loan with over 4 inches of paper. Lastly, and most important there are no personal guarantees with private lenders like bank money or hard money lenders.
Get Business Loans Now
Private Student Loans Help
Pete Sharpe asked:
Private student loans help are based on both income and availability. What happens if you can not afford college expenses and you do not qualify for a student loan? An alternative choice for you and your parents is a private student loan. These are loans done through private lenders instead of the federal government. The advantages you get from private student loans help is that they have many of the same benefits as federal student loans.
A private student loan is usually a low-interest student loan. The money can be delivered in as little as five days, and the money is given to you instead of the university or school you are going to attend. You are then responsible for paying the various educational expenses acquired.
These private student loans can be used for any and all college expenses. Things like tuition, books, supplies, computers, and living expenses are all things that qualify for private student loans help. These loans are unsecured, meaning that no collateral is needed. The loans are credit-based meaning that you might need a co-signer if you have not established some credit history.
This kind of student loan has other advantages similar to federal loans. The interest and principal payments can be deferred until you graduate from school of your choice. For most of these private student loans, you are required to be attending school at least part time for the deferral of payments and interest.
When you do graduate, the private student loan can usually be deferred for six months until you find employment, and then you will generally have a variety of repayment options available so that you can tailor your payments to your income. When you attain your dream job.
Don’t let the high cost of a college education deter you. There are options available even for those who do not meet low income standards required by federal programs. Take time to do some research and you will soon be on your way to obtaining your student loan.
Other types of Student Loans Help:
Not all student loans for college are obvious and right in front of you. There are two sources for financial aid that are often overlooked. Each of these will be discussed in more detail below. Parents tend to plan their children’s future well before the child is even born. Although mom and dad just know their child will be a genius and will be offered full scholarships, they also try to be ready just in case that isn’t quite the case. To that end, many parents will have life insurance and annuity plans in place that will mature in time for their offspring to take advantage of the financial rewards.
By taking out a permanent life insurance plan, it can be paid for in a certain number of years. This type of insurance can then be cashed in and the payout can be applied to the child’s educational needs. Parents will also cash in this type of policy and invest it in an interest bearing account thus allowing for a growth fund that will grow as the child ages. As with retirement funds below, some companies allow student loans against the face value of the policies that can then be applied to educational expenses.
One or both parents may also set up a retirement fund, such as a 401k. After a period of years, these monies can be taken out, pre-tax and applied to a child’s education. Some company retirement funds allow the employee to just borrow against the fund for educational purposes. For tax purposes the Roth plan is also a possibility. To get a clearer picture of how either of these is best used, one should consult a tax professional. By knowing ahead of time the ultimate purpose of this plan, the professional can help direct the individual into setting up the proper deductions.
3 Day Approvals for Business Loans
Private student loans help are based on both income and availability. What happens if you can not afford college expenses and you do not qualify for a student loan? An alternative choice for you and your parents is a private student loan. These are loans done through private lenders instead of the federal government. The advantages you get from private student loans help is that they have many of the same benefits as federal student loans.
A private student loan is usually a low-interest student loan. The money can be delivered in as little as five days, and the money is given to you instead of the university or school you are going to attend. You are then responsible for paying the various educational expenses acquired.
These private student loans can be used for any and all college expenses. Things like tuition, books, supplies, computers, and living expenses are all things that qualify for private student loans help. These loans are unsecured, meaning that no collateral is needed. The loans are credit-based meaning that you might need a co-signer if you have not established some credit history.
This kind of student loan has other advantages similar to federal loans. The interest and principal payments can be deferred until you graduate from school of your choice. For most of these private student loans, you are required to be attending school at least part time for the deferral of payments and interest.
When you do graduate, the private student loan can usually be deferred for six months until you find employment, and then you will generally have a variety of repayment options available so that you can tailor your payments to your income. When you attain your dream job.
Don’t let the high cost of a college education deter you. There are options available even for those who do not meet low income standards required by federal programs. Take time to do some research and you will soon be on your way to obtaining your student loan.
Other types of Student Loans Help:
Not all student loans for college are obvious and right in front of you. There are two sources for financial aid that are often overlooked. Each of these will be discussed in more detail below. Parents tend to plan their children’s future well before the child is even born. Although mom and dad just know their child will be a genius and will be offered full scholarships, they also try to be ready just in case that isn’t quite the case. To that end, many parents will have life insurance and annuity plans in place that will mature in time for their offspring to take advantage of the financial rewards.
By taking out a permanent life insurance plan, it can be paid for in a certain number of years. This type of insurance can then be cashed in and the payout can be applied to the child’s educational needs. Parents will also cash in this type of policy and invest it in an interest bearing account thus allowing for a growth fund that will grow as the child ages. As with retirement funds below, some companies allow student loans against the face value of the policies that can then be applied to educational expenses.
One or both parents may also set up a retirement fund, such as a 401k. After a period of years, these monies can be taken out, pre-tax and applied to a child’s education. Some company retirement funds allow the employee to just borrow against the fund for educational purposes. For tax purposes the Roth plan is also a possibility. To get a clearer picture of how either of these is best used, one should consult a tax professional. By knowing ahead of time the ultimate purpose of this plan, the professional can help direct the individual into setting up the proper deductions.
3 Day Approvals for Business Loans
The Importance of Private Trade Programs in a Declining Economy
Marcel Ford asked:
Maybe it is the degradation of the economies of whole, or the lackluster performances so many are experiencing in the stock market; whatever the true reasons, many high net worth Investors, as well as companies, are becoming more aware of the close-lipped industry of Private Trade Programs.
As a flower welcomes the rising sun, outstretching its petals to the expectant warmth, apparently Private Trade Programs are doing their part in welcoming their own type of security and warmth for fortunate Investors. When it comes to Investors funds being positioned for the safest and highest rates of returns, they are slowly discovering the little known world referred to as Private Trade Programs (also known as Private Investment Platforms, Private Platforms, Private Trades, Private Trade Opportunities, Private Investment Opportunities, PPPs, PIPs, P3s,).
Most don’t fully comprehend what a Private Trade Program truly is. So, to answer this underlying request the myths will be squashed and by the end of this article, you will realize, these programs are quite simple to understand.
A prevalent concern in this Private Trade world is that it appears to attract a faction of disorders and a growing level of fraudsters who prey on this weakening economy to advance their own motives. Fortunately, the further education of Private Trades is not in a trial and error phase and has witnessed actual, successful case studies to fall back on.
There are educational sites focusing on Private Trade Programs, MTNs, BGs, CMOs as well as the leveraging of instruments, realizes that close to 100% of those who believe they are in the Private Trade business have never been involved in a single successful trade. These are “brokers” who extrapolate information they have heard and regurgitate it to unsuspecting Investors. It also includes Investors who have been led down a path of meandering turns where the end is always, “just out of reach”. And for the fortunate few that actually do reach a legitimate trading platform, many simply don’t believe it to be true and subsequently dismiss the opportunity before them and do not proceed to obtain the returns they can only dream of.
With this being the case, the fog becomes more intense, forbidding the sun to show that Private Trades are what they are, have been in existence for decades and are available to those fortunate enough to be introduced to them through reputable, viable channels.
Following will be a general overview with regard to how successful Private Trade Programs begin and their true “modus operandi”.
The first undeviating step is for the investor to fill out appropriate compliance documents and substantiate the validity of their assets with respect to their origins, place of dwelling and history. At this phase, it is discovered that most assets that lead nowhere are of non-cash qualities. These include certain types of bonds as well as a plethora of instruments that are either fraudulent or have been issued incorrectly that cannot be placed into trade.
Following a successful submission from the investor’s compliance package, the compliance leg of the platform will begin the due diligence phase to verify and validate the standing of the client, in many cases a corporation, as well as the origins of the funds. For liquid investors above $100 million (USD), this process of verification usually does not take longer than one to two days as these investors take precedence over those who carry instruments or liquidity which falls below this mark. For investors with funds below $100 million (USD), the experienced duration for compliance to review, verify and accept an investor into a Private Trade Program is roughly a week from received application. Once an investor passes compliance, the trade platform will initiate trade contracts and investor instructions. At this moment, for this is where many of the “purported platform’s” true colors are exposed, the client is made aware that his investment will always remain in his account and control with no other signatories placed upon it.
Should it be in a bank not recognized as a Top Twenty internationally recognized banking institutions, the Platform will request that the investor open an account, in his, or company’s sole name, at an acknowledged International Banking Institution. It has been discovered that the top traders of these Private Trade Programs prefer the funds to be in an HSBC branch in London. Be wary of those so called “Platforms” who request an additional signatory be added or that funds be transferred into the trader’s control. In infrequent occasions, to work around investor funds that aren’t recognized appropriately or when a banking institution forgoes to stall the investor’s funds, there has been evidenced a necessity to “conditionally assign” the Trader so that the funds can be properly appropriated for trade.
For those investors who fall below the typically required $100 million (USD) level, don’t be dissuaded, the sun has not set on your horizon. There is a specialized technique to allow certain investors to participate within this closed process through what is referred to as a fund of funds scenario. Typically the entry point is $10 million (USD) but we have seen them as low as $1 million (USD) as well.
Following investor receiving a trade contract, documents are annotated with signatures by both the investor as well as the Trader or Platform Manager(s). At this phase, when investors become over-exuberant and begin to think that they can “shop” the Platform and then do not complete the trade transaction, the investor will irrefutably and permanently be barred from participating with any Platform on any Private Trade Program.
Funds then become blocked for the specific enabling of Trade, as well as leverage, into the investor’s specific Private Trade Program. Most Private Trade Program Traders need conditional assignments or the blocking of the assets in favor of them for the period of the trade so that leveraging against those assets can be performed. This is standard protocol and is disclosed within the trade documents that were previously signed.
The Trader will then access a line of credit from the bank. This is typically done within one to three days following the verified block on the investor’s funds. Traders are the only individuals who can propagate a line of credit against the blocked asset. As the Traders we are aware of trade through HSBC, this is why they prefer the funds to be within this banking institution.
The reason a line of credit is drafted is so that bank instruments can be issued at a discount and placed into a successive order. Bank issues the instrument directly to the Trader for a significant discount. The Trader thereafter drafts a contract with a banking institution or equivalent entity who has agreed to purchase it at a higher amount. The trader buys the instrument and then sells it to a “commitment holder” who then sells it to their “commitment holder” for a higher price. This continues until an institution decides to hold it to maturity, collecting the coupon’s interest. Investor receives payments, either weekly or monthly, depending on the valuation of the funds that were blocked and the request of the investor. Generally, the first payment is received a week following the beginning traunches directly to the originally requested Depositor the Investor has requested. It is evidenced that most U.S. Investors’ funds are requested to be wired to international accounts they have set up. Following the disbursements, the Investor begins to fund his projects and humanitarian causes.
Beginning in 2009, the required allocation between humanitarian profits and program profits will change significantly bettering a world that desperately needs money.
To your investing success.
Get Business Loans Now
Maybe it is the degradation of the economies of whole, or the lackluster performances so many are experiencing in the stock market; whatever the true reasons, many high net worth Investors, as well as companies, are becoming more aware of the close-lipped industry of Private Trade Programs.
As a flower welcomes the rising sun, outstretching its petals to the expectant warmth, apparently Private Trade Programs are doing their part in welcoming their own type of security and warmth for fortunate Investors. When it comes to Investors funds being positioned for the safest and highest rates of returns, they are slowly discovering the little known world referred to as Private Trade Programs (also known as Private Investment Platforms, Private Platforms, Private Trades, Private Trade Opportunities, Private Investment Opportunities, PPPs, PIPs, P3s,).
Most don’t fully comprehend what a Private Trade Program truly is. So, to answer this underlying request the myths will be squashed and by the end of this article, you will realize, these programs are quite simple to understand.
A prevalent concern in this Private Trade world is that it appears to attract a faction of disorders and a growing level of fraudsters who prey on this weakening economy to advance their own motives. Fortunately, the further education of Private Trades is not in a trial and error phase and has witnessed actual, successful case studies to fall back on.
There are educational sites focusing on Private Trade Programs, MTNs, BGs, CMOs as well as the leveraging of instruments, realizes that close to 100% of those who believe they are in the Private Trade business have never been involved in a single successful trade. These are “brokers” who extrapolate information they have heard and regurgitate it to unsuspecting Investors. It also includes Investors who have been led down a path of meandering turns where the end is always, “just out of reach”. And for the fortunate few that actually do reach a legitimate trading platform, many simply don’t believe it to be true and subsequently dismiss the opportunity before them and do not proceed to obtain the returns they can only dream of.
With this being the case, the fog becomes more intense, forbidding the sun to show that Private Trades are what they are, have been in existence for decades and are available to those fortunate enough to be introduced to them through reputable, viable channels.
Following will be a general overview with regard to how successful Private Trade Programs begin and their true “modus operandi”.
The first undeviating step is for the investor to fill out appropriate compliance documents and substantiate the validity of their assets with respect to their origins, place of dwelling and history. At this phase, it is discovered that most assets that lead nowhere are of non-cash qualities. These include certain types of bonds as well as a plethora of instruments that are either fraudulent or have been issued incorrectly that cannot be placed into trade.
Following a successful submission from the investor’s compliance package, the compliance leg of the platform will begin the due diligence phase to verify and validate the standing of the client, in many cases a corporation, as well as the origins of the funds. For liquid investors above $100 million (USD), this process of verification usually does not take longer than one to two days as these investors take precedence over those who carry instruments or liquidity which falls below this mark. For investors with funds below $100 million (USD), the experienced duration for compliance to review, verify and accept an investor into a Private Trade Program is roughly a week from received application. Once an investor passes compliance, the trade platform will initiate trade contracts and investor instructions. At this moment, for this is where many of the “purported platform’s” true colors are exposed, the client is made aware that his investment will always remain in his account and control with no other signatories placed upon it.
Should it be in a bank not recognized as a Top Twenty internationally recognized banking institutions, the Platform will request that the investor open an account, in his, or company’s sole name, at an acknowledged International Banking Institution. It has been discovered that the top traders of these Private Trade Programs prefer the funds to be in an HSBC branch in London. Be wary of those so called “Platforms” who request an additional signatory be added or that funds be transferred into the trader’s control. In infrequent occasions, to work around investor funds that aren’t recognized appropriately or when a banking institution forgoes to stall the investor’s funds, there has been evidenced a necessity to “conditionally assign” the Trader so that the funds can be properly appropriated for trade.
For those investors who fall below the typically required $100 million (USD) level, don’t be dissuaded, the sun has not set on your horizon. There is a specialized technique to allow certain investors to participate within this closed process through what is referred to as a fund of funds scenario. Typically the entry point is $10 million (USD) but we have seen them as low as $1 million (USD) as well.
Following investor receiving a trade contract, documents are annotated with signatures by both the investor as well as the Trader or Platform Manager(s). At this phase, when investors become over-exuberant and begin to think that they can “shop” the Platform and then do not complete the trade transaction, the investor will irrefutably and permanently be barred from participating with any Platform on any Private Trade Program.
Funds then become blocked for the specific enabling of Trade, as well as leverage, into the investor’s specific Private Trade Program. Most Private Trade Program Traders need conditional assignments or the blocking of the assets in favor of them for the period of the trade so that leveraging against those assets can be performed. This is standard protocol and is disclosed within the trade documents that were previously signed.
The Trader will then access a line of credit from the bank. This is typically done within one to three days following the verified block on the investor’s funds. Traders are the only individuals who can propagate a line of credit against the blocked asset. As the Traders we are aware of trade through HSBC, this is why they prefer the funds to be within this banking institution.
The reason a line of credit is drafted is so that bank instruments can be issued at a discount and placed into a successive order. Bank issues the instrument directly to the Trader for a significant discount. The Trader thereafter drafts a contract with a banking institution or equivalent entity who has agreed to purchase it at a higher amount. The trader buys the instrument and then sells it to a “commitment holder” who then sells it to their “commitment holder” for a higher price. This continues until an institution decides to hold it to maturity, collecting the coupon’s interest. Investor receives payments, either weekly or monthly, depending on the valuation of the funds that were blocked and the request of the investor. Generally, the first payment is received a week following the beginning traunches directly to the originally requested Depositor the Investor has requested. It is evidenced that most U.S. Investors’ funds are requested to be wired to international accounts they have set up. Following the disbursements, the Investor begins to fund his projects and humanitarian causes.
Beginning in 2009, the required allocation between humanitarian profits and program profits will change significantly bettering a world that desperately needs money.
To your investing success.
Get Business Loans Now
Ideas For Funding Your New Business
Lee Dobbins asked:
So, you have a great idea for a business but no money to start it with? Getting funding for your business can seem impossible, but if you really do have a good idea and a solid business plan you may be able to find more people willing to invest in your idea than you think.
One thing you must be willing to outline in detail is how you intend to service the debt as well as how the potential investor will benefit from your request. In addition, be prepared to do your home work and have thorough market research, projected costs and a detailed summary of how you intend to generate income. This information needs to be projected for a period of three to five years. It’s a good idea to project your expenses on the high side.
Have some idea of what you expect to pay your investor. The only reason someone is going to lend you money is if they can see decent profits in exchange for lending it to you. Your market research had best substantiate that your plan is viable and will provide them with sufficient return on investment to justify their involvement.
Before you begin your search for investors, it’s a good idea to have an attorney and/or accountant take a look at your plan. Be sure to use a qualified business attorney (not your family lawyer). There are a lot of laws pertaining to how equity capital can be raised from the public, and the laws change often so you want to be sure to use someone who is up on this. Also, a good professional may suggest specific points that you may have overlooked.
Once you have all the paperwork and representation in order, it’s time to hit the streets and try to find someone who will invest in your new company.
One thing you might try is getting some relatives to invest. Yes, it can seem like begging, and it’s a difficult thing to have to swallow your pride. Surprisingly, in a recent survey, almost 30% of entrepreneurs said that they raised all or part of the capital they needed through family members. If this is your choice, make sure that you have your attorney draw up a regular business contract. When approaching family members, talk to them about their investment the same way you would any other outside investor. Tell them about how much money they can make, not about how much you need their help. And make sure that you keep to your end of the agreement.
You may have to tap into your own financial resources and drain some of your savings or turn to your credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the projected return on investment (ROI). If you do end up financing your project using credit cards, make sure that you shop around first, and find the card that will offer you the best rate and gives you the most “bang” for your buck.
Use local business directories to find companies that specialize in “investment services.” You can approach a local bank, but try and find a bank that specializes in industrial or business type loans.
You might consider incorporating and selling stock in the company. Although security laws in the U.S. have made it easier for companies to go public, and offer stock as a way to raise needed funds, this is still probably the most risky choice. It is usually not a recommended option for very new or very small companies. Because of the number of legal issues involved, consulting with a knowledgeable attorney beforehand is vital. There is also a lot of stress involved in running a public company, and a considerable loss of autonomy and control. Before making this choice, be absolutely sure that this is the wisest course of action for your business.
When it comes to getting funding, it doesn’t hurt to be creative. If you believe in your idea, don’t be afraid to do what ever it takes to launch. There are plenty of ways to come up with the capital you need. Think outside the box. Whether you are looking for $500 or $500,000 the money is there you just need to dig for it.
Commercial Loans to 65% of Value
So, you have a great idea for a business but no money to start it with? Getting funding for your business can seem impossible, but if you really do have a good idea and a solid business plan you may be able to find more people willing to invest in your idea than you think.
One thing you must be willing to outline in detail is how you intend to service the debt as well as how the potential investor will benefit from your request. In addition, be prepared to do your home work and have thorough market research, projected costs and a detailed summary of how you intend to generate income. This information needs to be projected for a period of three to five years. It’s a good idea to project your expenses on the high side.
Have some idea of what you expect to pay your investor. The only reason someone is going to lend you money is if they can see decent profits in exchange for lending it to you. Your market research had best substantiate that your plan is viable and will provide them with sufficient return on investment to justify their involvement.
Before you begin your search for investors, it’s a good idea to have an attorney and/or accountant take a look at your plan. Be sure to use a qualified business attorney (not your family lawyer). There are a lot of laws pertaining to how equity capital can be raised from the public, and the laws change often so you want to be sure to use someone who is up on this. Also, a good professional may suggest specific points that you may have overlooked.
Once you have all the paperwork and representation in order, it’s time to hit the streets and try to find someone who will invest in your new company.
One thing you might try is getting some relatives to invest. Yes, it can seem like begging, and it’s a difficult thing to have to swallow your pride. Surprisingly, in a recent survey, almost 30% of entrepreneurs said that they raised all or part of the capital they needed through family members. If this is your choice, make sure that you have your attorney draw up a regular business contract. When approaching family members, talk to them about their investment the same way you would any other outside investor. Tell them about how much money they can make, not about how much you need their help. And make sure that you keep to your end of the agreement.
You may have to tap into your own financial resources and drain some of your savings or turn to your credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the projected return on investment (ROI). If you do end up financing your project using credit cards, make sure that you shop around first, and find the card that will offer you the best rate and gives you the most “bang” for your buck.
Use local business directories to find companies that specialize in “investment services.” You can approach a local bank, but try and find a bank that specializes in industrial or business type loans.
You might consider incorporating and selling stock in the company. Although security laws in the U.S. have made it easier for companies to go public, and offer stock as a way to raise needed funds, this is still probably the most risky choice. It is usually not a recommended option for very new or very small companies. Because of the number of legal issues involved, consulting with a knowledgeable attorney beforehand is vital. There is also a lot of stress involved in running a public company, and a considerable loss of autonomy and control. Before making this choice, be absolutely sure that this is the wisest course of action for your business.
When it comes to getting funding, it doesn’t hurt to be creative. If you believe in your idea, don’t be afraid to do what ever it takes to launch. There are plenty of ways to come up with the capital you need. Think outside the box. Whether you are looking for $500 or $500,000 the money is there you just need to dig for it.
Commercial Loans to 65% of Value
Ways of Funding Your Business
Uchenna Ani-Okoye asked:
Many states have Business Development Commissions whose goal is to assist in the establishment and growth of new businesses. Not only do they offer favourable taxes and business expertise, most also offer money or facilities to help a new business get started. Your Chamber of Commerce is the place to check for further information on this idea.
Industrial banks are usually much more amenable to making business loans than regular banks, so be sure to check out these institutions in your area. Insurance companies are prime sources of long term business capital, but each company varies its policies regarding the type of business it will consider. Check your local agent for the name and address of the person to contact. It’s also quite possible to get the directors of another company to invest in your business. Look for a company that can benefit from your product or service. Also, be sure to check at your public library for available foundation grants. These can be the final answer to all your money needs if your business is perceived to be related to the objectives and activities of the foundation.
Finally, there’s the Money Broker or Finder. These are the people who take your prospectus and circulate it with various known lenders or investors. They always require an up-front or retainer fee, and there’s no way they can guarantee to get you the loan or the money you want.
There are many very good money brokers, and there are some that are not so good. They all take a percentage of the gross amount that’s finally procured for your needs. The important thing is to check them out fully; find out about the successful loans or investment plans they’ve arranged, and what kind of investor contacts they have – all of this before you put up any front money or pay any retainer fees.
There are many ways to raise money – from staging garage sales to selling stocks. Don’t make the mistake of thinking that the only place you can find the money you need is through the bank or finance company.
Think about the idea of inviting investors to share in your business as silent partners. Think about the idea of obtaining financing for a primary business by arranging financing for another business that will support the start-up, establishment and development of the primary business. Consider the feasibility of merging with a company that’s already organized, and with facilities that are compatible or related to your needs. Give some thought to the possibilities of getting the people supplying your production equipment to co-sign the loan you need for start-up capital.
Remember, there are thousands upon thousands of ways to obtain business start-up capital. This is truly the age of creative financing.
Disregard the stories you hear of “tight money,” and start making phone calls, talking to people, and making appointments to discuss your plans with the people who have money to invest. There’s more money now than there’s ever been for new business investment.
The problem is that most beginning “business builders” don’t know what to believe or which way to turn for help. They tend to believe the stories of “tight money,” and they set aside their plans for a business of their own until a time when start-up money might be easier to find.
The truth is this: Now is the time to make your move. Now is the time to act. The person with a truly viable business plan, and determination to succeed, will make use of every possible idea that can be imagined. And the ideas I’ve suggested here should serve as just a few of the unlimited sources of monetary help available and waiting for you!
Commercial Loans to 65% of Value
Many states have Business Development Commissions whose goal is to assist in the establishment and growth of new businesses. Not only do they offer favourable taxes and business expertise, most also offer money or facilities to help a new business get started. Your Chamber of Commerce is the place to check for further information on this idea.
Industrial banks are usually much more amenable to making business loans than regular banks, so be sure to check out these institutions in your area. Insurance companies are prime sources of long term business capital, but each company varies its policies regarding the type of business it will consider. Check your local agent for the name and address of the person to contact. It’s also quite possible to get the directors of another company to invest in your business. Look for a company that can benefit from your product or service. Also, be sure to check at your public library for available foundation grants. These can be the final answer to all your money needs if your business is perceived to be related to the objectives and activities of the foundation.
Finally, there’s the Money Broker or Finder. These are the people who take your prospectus and circulate it with various known lenders or investors. They always require an up-front or retainer fee, and there’s no way they can guarantee to get you the loan or the money you want.
There are many very good money brokers, and there are some that are not so good. They all take a percentage of the gross amount that’s finally procured for your needs. The important thing is to check them out fully; find out about the successful loans or investment plans they’ve arranged, and what kind of investor contacts they have – all of this before you put up any front money or pay any retainer fees.
There are many ways to raise money – from staging garage sales to selling stocks. Don’t make the mistake of thinking that the only place you can find the money you need is through the bank or finance company.
Think about the idea of inviting investors to share in your business as silent partners. Think about the idea of obtaining financing for a primary business by arranging financing for another business that will support the start-up, establishment and development of the primary business. Consider the feasibility of merging with a company that’s already organized, and with facilities that are compatible or related to your needs. Give some thought to the possibilities of getting the people supplying your production equipment to co-sign the loan you need for start-up capital.
Remember, there are thousands upon thousands of ways to obtain business start-up capital. This is truly the age of creative financing.
Disregard the stories you hear of “tight money,” and start making phone calls, talking to people, and making appointments to discuss your plans with the people who have money to invest. There’s more money now than there’s ever been for new business investment.
The problem is that most beginning “business builders” don’t know what to believe or which way to turn for help. They tend to believe the stories of “tight money,” and they set aside their plans for a business of their own until a time when start-up money might be easier to find.
The truth is this: Now is the time to make your move. Now is the time to act. The person with a truly viable business plan, and determination to succeed, will make use of every possible idea that can be imagined. And the ideas I’ve suggested here should serve as just a few of the unlimited sources of monetary help available and waiting for you!
Commercial Loans to 65% of Value
Private Equity Jobs Hiring Trends Spring 2008
IC asked:
Ignore today’s negative news about the Private Equity Jobs overall market and related job growth – the media is painting a much worse scenario that what is real – there are still great opportunities for private equity jobs if you now how and where to look for them. Especially if you target small to medium sized hedge funds that are not in as leveraged a position as the much larger Wall Street firms and that are concentrating on deals that the larger firms cannot afford to work with.
Private Equity Jobs via Niche Firms
A lot of the strong growth that is occurring in the private equity jobs market is occurring with smaller or niche private equity firms, not the larger firms on Wall Street that many job seekers target automatically. You want to identify a niche job board that targets private equity jobs and then upload your resume to it and/or look at private equity jobs via this type of a site.
Many of these smaller hedge fund firms are hiring because they don’t have the capital needs of the larger firms and/or need external funding. In most cases these types of firms are working with less borrowed money and as a result, the credit market does not negatively impact their growth and related job opportunities.
Since the credit markets are experience so much turbulence these smaller private equity funds are unearthing more investment opportunities that are more aligned with good business practices, as again, they are utilizing their own capital, not borrowed funds. And, many of these smaller deals would not generate the type of ROI that larger hedge funds need to stay in business; enabling the smaller firms to work on deals that are smaller but lucrative.
So, target these smaller funds for a private equity job as you move forward, as they can be a valuable source for a position based on their leveraging their smaller size and the overall financial structure of their deal flow. And, starting out in a smaller firm can be a good career move as you will develop a broader skill set based on your working.
Commercial Loans to 65% of Value
Ignore today’s negative news about the Private Equity Jobs overall market and related job growth – the media is painting a much worse scenario that what is real – there are still great opportunities for private equity jobs if you now how and where to look for them. Especially if you target small to medium sized hedge funds that are not in as leveraged a position as the much larger Wall Street firms and that are concentrating on deals that the larger firms cannot afford to work with.
Private Equity Jobs via Niche Firms
A lot of the strong growth that is occurring in the private equity jobs market is occurring with smaller or niche private equity firms, not the larger firms on Wall Street that many job seekers target automatically. You want to identify a niche job board that targets private equity jobs and then upload your resume to it and/or look at private equity jobs via this type of a site.
Many of these smaller hedge fund firms are hiring because they don’t have the capital needs of the larger firms and/or need external funding. In most cases these types of firms are working with less borrowed money and as a result, the credit market does not negatively impact their growth and related job opportunities.
Since the credit markets are experience so much turbulence these smaller private equity funds are unearthing more investment opportunities that are more aligned with good business practices, as again, they are utilizing their own capital, not borrowed funds. And, many of these smaller deals would not generate the type of ROI that larger hedge funds need to stay in business; enabling the smaller firms to work on deals that are smaller but lucrative.
So, target these smaller funds for a private equity job as you move forward, as they can be a valuable source for a position based on their leveraging their smaller size and the overall financial structure of their deal flow. And, starting out in a smaller firm can be a good career move as you will develop a broader skill set based on your working.
Commercial Loans to 65% of Value
Private Lenders – 7 Things To Look Out For
George Antone asked:
ght (c) 2009 George Antone
Commercial Loans to 65% of Value
ght (c) 2009 George Antone
Being a Private Lender can be very profitable for individuals, especially when they know how to do it without using any of their own money.
However, there are some things beginner investors should be aware of. Here is a list of 7 things:
1) NEVER ever give borrower money directly! This should be obvious for most private lenders. Whenever lending money, always go through a reputable title company. Title companies are there to protect you and protect the borrower. Worried about fees? Borrower pays for these! You have nothing to lose when you work with a Title company. Remember, one of the main things private lenders always seek is security. Secure loans and great profits!
2) NEVER ever loan money without asking for an appraisal & preliminary title report! Once again, most private lenders should know this. An appraisal (paid for by the borrower) gives you the value of the property. The value is the most important number in private lending. All your decisions are based on that, so make sure you have it right. I would like to also add that in this economy, I would suggest you also get a “BPO” (Broker Price Opinion) from a local real estate agent familiar with the area (where the property is located). One again, the borrower pays for both. I will not bore you with the reasons for now why to get a BPO in addition to an appraisal, just suffice to say that appraisals are done in specific ways and can be used in court against the appraiser, and BPO’s are “opinions” that are not.
3) ALWAYS use a QUALIFIED Loan Broker Always use a mortgage broker used to brokering private funds. They will make sure all the loan paperwork and disclosures are in place and correct.
4) ALWAYS get lender’s title insurance Always get lender’s title insurance. This should protect you from any title issues. Guess who pays for that? Yep, borrower does. In fact, as a private lender, you realize the borrower pays for almost everything! What a concept!
5) ALWAYS be on the borrower’s hazard insurance as loss payee This makes sure that in case the collateral (the property) is damaged due to fire for example, the insurance company will pay you. The title company will add you as loss payee to the borrower’s hazard insurance.
6) ALWAYS know which lien position you are This is pretty basic, but I am surprised how many people walk into my private lending boot camp and have no idea what position they are in (they had tried their hand at private lending before attending my 3-day intensive class). Make sure you know what position you are. 1st or 2nd loan positions are best; avoid 3rd or anything junior to that.
7) ALWAYS know your “LTV” (Loan to Value) This is a VERY important ratio. As a private lender, stick to a maximum LTV you are comfortable with. Keep in mind that the LTV’s vary by property type. For example, with residential 1 to 4 units, you never want to go beyond 65%. For land, 50% is absolute highest. In fact, as a beginner private lender, stick to 1 to 4-units residential properties, and preferably, single family homes in your area (30-minute drive radius from your home).
There are more things one should look out for, but this is a starting list of 7 things to look out for.
Being a Private Lender can be very profitable for individuals, especially when they know how to do it without using any of their own money. I can tell you that a savvy private lender can make more money, with less hassle, and with less money than the real estate investor.
Everyone out there should consider real-estate backed private money lending.
Commercial Loans to 65% of Value
Real Estate Investors: Tips on Starting Out With Private Lending
Michel Lautensack asked:
One of the mistakes I was making early in my real estate investing business was I was putting my own money into deals. I would go out and get a primary mortgage mostly from – I was using WAMU at the time. Fortunately, I think they’re still in business. Then I would put my personal funds as the balance. I’d borrow 80% of the proceeds from WAMU. I’d put in 20% of the remaining purchase price of my own funds and then I would continue to put my own funds to rehab the property.
Like everybody, I have limited funds. I did that for a while and I ran out of money. Then it became kind of a shell game. I had to sell a property and recover all those monies to do the next deal. It became very inefficient.
I knew at that point, after a couple of years of that, that I had to figure out how to do this in a better way. At that point I went out and got a lot of education, started reading a lot, and started learning a lot from various real estate gurus to learn how to do this business the proper way.
Refining Private Lending
One of the things I started out very early on was private lending. I figured this would be the way that I could avoid having to put my own funds into a deal and would suddenly unlock the key here which would be I could go out and buy real estate without necessarily having to have the funds in my own bank account to get the deal done.
We went out and we started doing transactions with private lenders. Some of them went very smoothly. We were very successful and paid them off and were very successful. Other deals did not go particularly as smoothly, but ultimately those investors also got paid off, complete full payoffs. Some of them were very happy and have continued to do business with me today. Some have migrated on to other things.
One of the things we learned in this process was we refined our forms. We refined our marketing approach. We refined our program, what appealed to investors, what didn’t, and we continued to just refine it.
Seller Financing
Today I do some private lending, a lot less than I used to. Today when I do a real estate transaction I deal with seller financing. That’s the only way I’ll do a deal today, flat out. If the seller is not putting in 20-30% of the deal and in some cases 90 or 95%, if they’re free and clear property, I won’t do the deal.
There is less and less reason right now to do it with private lending. Ultimately, you do need private lenders to get off the ground and get started, but today there are a lot of sellers willing to put money into deals. One of the much larger sources of private lending funds right now is the sellers themselves.
As I spoke about, that’s the other half of private lending but that clearly is becoming more and more important, that piece of it. I’m sure it will continue to do so for a couple of years as the mortgage market and the financial market continue to struggle and to deteriorate somewhat. That’s where we’re at.
Get Business Loans Now
One of the mistakes I was making early in my real estate investing business was I was putting my own money into deals. I would go out and get a primary mortgage mostly from – I was using WAMU at the time. Fortunately, I think they’re still in business. Then I would put my personal funds as the balance. I’d borrow 80% of the proceeds from WAMU. I’d put in 20% of the remaining purchase price of my own funds and then I would continue to put my own funds to rehab the property.
Like everybody, I have limited funds. I did that for a while and I ran out of money. Then it became kind of a shell game. I had to sell a property and recover all those monies to do the next deal. It became very inefficient.
I knew at that point, after a couple of years of that, that I had to figure out how to do this in a better way. At that point I went out and got a lot of education, started reading a lot, and started learning a lot from various real estate gurus to learn how to do this business the proper way.
Refining Private Lending
One of the things I started out very early on was private lending. I figured this would be the way that I could avoid having to put my own funds into a deal and would suddenly unlock the key here which would be I could go out and buy real estate without necessarily having to have the funds in my own bank account to get the deal done.
We went out and we started doing transactions with private lenders. Some of them went very smoothly. We were very successful and paid them off and were very successful. Other deals did not go particularly as smoothly, but ultimately those investors also got paid off, complete full payoffs. Some of them were very happy and have continued to do business with me today. Some have migrated on to other things.
One of the things we learned in this process was we refined our forms. We refined our marketing approach. We refined our program, what appealed to investors, what didn’t, and we continued to just refine it.
Seller Financing
Today I do some private lending, a lot less than I used to. Today when I do a real estate transaction I deal with seller financing. That’s the only way I’ll do a deal today, flat out. If the seller is not putting in 20-30% of the deal and in some cases 90 or 95%, if they’re free and clear property, I won’t do the deal.
There is less and less reason right now to do it with private lending. Ultimately, you do need private lenders to get off the ground and get started, but today there are a lot of sellers willing to put money into deals. One of the much larger sources of private lending funds right now is the sellers themselves.
As I spoke about, that’s the other half of private lending but that clearly is becoming more and more important, that piece of it. I’m sure it will continue to do so for a couple of years as the mortgage market and the financial market continue to struggle and to deteriorate somewhat. That’s where we’re at.
Get Business Loans Now
Home Business Start-up Funds
Demetrios Tzortzis asked:
If you’re planning to launch your own home-based business, you have a lot to think about. After you have developed a solid business plan, you are going to need funding. No business operates without cash. It is erroneous to believe that starting a home-based business doesn’t cost anything. It’s true that may not cost as much as a brick-and-mortar business, but it does still have its own costs.
It’s only logical to assume that if you want to begin a business home-based or not you’re going to have to have investment capital. There are expenses to be dealt with. At a minimum, you will need phone lines, fax lines, a computer, a printer, office furnishings, office supplies and at least a little bit of capital to begin advertising with. It’s not that big of a deal to come up with funding. Here’s a helpful list that will get you going in the right direction:
1) You can use your credit cards. That’s what they’re for. Credit cards are convenient and easy to manage. You have to be smart about using them though; interest rates can be high.
2) If you qualify, get a personal loan. One of the best reasons to use your good credit rating is to enhance your life by launching a home-based business. Getting your business off to a good start will enable you to generate the funds necessary for repayment.
3) You can also apply for a business loan. These are difficult to get though, especially for home-based businesses. This is because a home-based business has little or no equity and most likely no proven record of success. If you can obtain one though, interest rates are normally easier to deal with.
4) Consider a home equity loan. Although you have to provide adequate collateral, these loans can provide larger sums of cash if needed. Repayment terms are also quite lenient. Repayment terms of these loans often extend for 15 years or more.
5) Apply for an SBA loan. Home-based business entrepreneurs often have great luck obtaining SBA loans. The U.S. Small Business Administration backs these loans as well as 75% of individual loans made by banks. This means that the lending bank incurs less risk. The website is http://sba.gov. Check it out.
6) You can also use your personal savings. You can either withdraw your funds directly or use their value to obtain a loan. What better to spend your savings on than launching your own business?
Regardless of the method that you choose, launching a new home-based business will require funding. That is a given and you need to think about it. You will hear all kinds of claims that it is not true that you can start a thriving business for just pennies. The reality of the situation is different. Explore your options for funding your home-based business launch today. When you have the freedom that investment capital can afford to you, you will be better able to concentrate your efforts on creativity and customer service.
Commercial Loans to 65% of Value
If you’re planning to launch your own home-based business, you have a lot to think about. After you have developed a solid business plan, you are going to need funding. No business operates without cash. It is erroneous to believe that starting a home-based business doesn’t cost anything. It’s true that may not cost as much as a brick-and-mortar business, but it does still have its own costs.
It’s only logical to assume that if you want to begin a business home-based or not you’re going to have to have investment capital. There are expenses to be dealt with. At a minimum, you will need phone lines, fax lines, a computer, a printer, office furnishings, office supplies and at least a little bit of capital to begin advertising with. It’s not that big of a deal to come up with funding. Here’s a helpful list that will get you going in the right direction:
1) You can use your credit cards. That’s what they’re for. Credit cards are convenient and easy to manage. You have to be smart about using them though; interest rates can be high.
2) If you qualify, get a personal loan. One of the best reasons to use your good credit rating is to enhance your life by launching a home-based business. Getting your business off to a good start will enable you to generate the funds necessary for repayment.
3) You can also apply for a business loan. These are difficult to get though, especially for home-based businesses. This is because a home-based business has little or no equity and most likely no proven record of success. If you can obtain one though, interest rates are normally easier to deal with.
4) Consider a home equity loan. Although you have to provide adequate collateral, these loans can provide larger sums of cash if needed. Repayment terms are also quite lenient. Repayment terms of these loans often extend for 15 years or more.
5) Apply for an SBA loan. Home-based business entrepreneurs often have great luck obtaining SBA loans. The U.S. Small Business Administration backs these loans as well as 75% of individual loans made by banks. This means that the lending bank incurs less risk. The website is http://sba.gov. Check it out.
6) You can also use your personal savings. You can either withdraw your funds directly or use their value to obtain a loan. What better to spend your savings on than launching your own business?
Regardless of the method that you choose, launching a new home-based business will require funding. That is a given and you need to think about it. You will hear all kinds of claims that it is not true that you can start a thriving business for just pennies. The reality of the situation is different. Explore your options for funding your home-based business launch today. When you have the freedom that investment capital can afford to you, you will be better able to concentrate your efforts on creativity and customer service.
Commercial Loans to 65% of Value