Seller financing is extremely powerful because the buyer and the seller have control over all the terms of the transaction. That means that there are virtually unlimited applications for seller financing. However, all of the options for seller financing fall into just a 2 major categories: financing after the closing and financing before the closing.The following 4 types of financing occur after the closing:1. Free and Clear Financing – When a seller owns a property “free and clear” there are no liens or encumbrances on the property. In this situation the seller and the buyer are free to make any terms they want to in order to make a deal successful.2. Equity Only Financing – This type of financing means that the seller only finances their equity in a property. The buyer is responsible for getting new financing to pay-off all of the seller’s encumbrances and liens. The seller is then free to finance the equity in the property.3.Wrap Financing – This is also known as “subject to” or “blanket” financing. In this situation the buyer takes the property “subject to” the existing mortgage. The buyer is responsible for making mortgage payments to the seller and the seller is responsible for making mortgage payments to the original lender.4.Combo Seller Financing – This type of financing is a combination of the financing options #2 & #3. The buyer can “wrap” the underlying mortgage and finance the seller’s equity.The next 4 types of seller financing occur before the closing:5.Purchase Option – Any time the buyer gives money to the seller (option payment) for the right to purchase the property at a given price (option price) and within a given timeframe (option period) the buyer has a “purchase option”. This is a form of seller financing because the seller still is responsible for the property and any payments until the buyer purchases the property (exercises their option to purchase) or the option expires.6.Extended Closing – An extended closing is similar to a purchase option except that the extended closing is done with a Real Estate Purchase Contract (REPC). In the extended close the closing deadline is extended or put into the future significantly further than a typical real estate purchase.7.Open-ended Closing -The open-ended close is also done with the REPC except the closing deadline is tied to a future event (such as the completion of an addition or remodel). The closing only occurs after the future event has occurred or has been completed.8.Seller Partnerships – In this situation the seller may sell the property or may retain ownership. In either case, the seller contributes the property (and possibly some capital) as their contribution. The buyer would contribute the work and knowledge (and possibly some capital) to create or enhance the property value. The property would then be refinanced by the buyer or sold to a third party. The seller would get his equity and capital contribution plus an agreed partnership split of the additional profits on the transaction.The great thing about these 8 types of seller financing is that every option can be used to benefit both the buyer and the seller. Using these seller financing options a seller can actually get a buyer to come in and improve their property, do all the fix-up and repair work at the buyer’s expense, and the buyer is excited about doing the work! I’ll explain how this can be in my next article…
Even though it seems as if almost everyone dreams of running a home based business, not everyone has what it takes to succeed with a home based business. There are certain attributes that you should have if you want to have a higher opportunity for success with a home based business.There is no doubt about the fact that you need to be a hard worker if you are going to succeed with your work from home business. A lot of people see a work from home business as a way to get out of the 9 to 5 job work frame. The truth is you will have times when you are up very early and working very late to make your business a success. You will find that there are times when you need to work on weekends and perhaps even on holidays. You cannot be intimidated by hard work if you want to run a home based business.It is important to be a highly motivated individual if you are going to run a home based business. You need to keep yourself on task no matter what line of work you select for your business. There will no longer be a boss telling you what to do and what to do it. You will need to be able to keep yourself motivated to succeed as well as anyone you might have working for you.Determination and optimism are important if you want to work from home. Many businesses will fail and those that don’t will have times when business is not good at all. You need to use determination and optimism to ride through the bad patches so that your business can excel. Do not give up hope the first time things do not go your way with the new business. If you believe in yourself and your business, you have more opportunity for success.People skills are important if you are going to operate a home based business. Anyone who is going to run a home based business must be able to have the best possible communication skills. If you have people working for you, you want to be able to motivate and inspire them. It will also be necessary to communicate well with your clients. As a business owner, you will want to have the people skills you need to keep customers satisfied even when things go wrong.Although not all home based business owners are organized, it is beneficial if you are. Being organized will make it less likely to make billing errors and other errors in your business paperwork. You are less likely to miss deadlines or to misplace items you need to provide clients with the intended products or services. If you are organized you will be able to stay on task and to make plants for the future of your business.Creativity is also an important attribute if you have a home based business. You want to have the creativity necessary to offer products and services that stand out from products and services offered by your competitors. You want to find creative ways to attract customers.The attributes listed above are very helpful if you want to have a successful home based business. If you have some or all of these attributes, you could be well on your way to success.
As predicted, E-commerce has boomed (and is still booming). People buy not just through PCs but through phones and tablets as well. Buyers loved the idea! E-commerce’s market and competition is huge, now how do you keep up and advance?The word is “empathy”-put yourself in your customers’ shoes! Your goods are wonderful, your target market is all credit classes yet your customers are just coming from the mid to upper scales. Say you sell apparel-everyone needs clothing. Come on, you don’t want to be deprived of clothing purchases just because you do not have a credit card or have a low credit limit, do you? NOT EVERYONE HAS/CAN HAVE A CREDIT CARD.That’s where financing comes in. I know, you’ve heard about it. House, auto, cash, etc.-e-commerce financing is different. How do you benefit from it?Not everyone can get a credit card. However, not everyone who owns credit cards pay their credit cards. How do you help the minimum waged guy who’s got a job, good payment records and a guarantor?Easy!#1 Forget you are JUST helping the guy -Look, the guy helps you and your business in return! If you offer a financing payment method for an eBay or Amazon product (which cannot be purchased easily without credit cards), you get a big chunk of the market-those without credit cards.# 2 Know the types of e-commerce financing -Financing is making a product affordable for your customers while earning yourself MORE SALES at HIGHER VALUES. There are two ways you can venture in e-commerce financing:A. Plain Financing – You just find the leads, verify their payment capabilities, and finance no particular product-anything goes.B. Retail Financing – You have particular stuff/service to sell and you offer financing as a payment method.#3 Know your clientele -Now, there are three general categories: (1) Those who’ve got 680-850 credit scores with high credit limits (not your financing target); (2) Those with 600-680 scores, typically with $600-limited credit cards or GE capital (the perfect targets!); and, (3) Those with 300-599 scores, NO credit card (great for lay away programs*)#4 Know your risks as a financier -Financing wouldn’t be around if it isn’t profitable. However, as in any business venture, there are risks you would have to deal with. One of which (but rarely happens) is when a customer screws you upon shipping the product-like, they get it and don’t pay you or get it and opt for a return/exchange. Worry not since you can…#5 Secure Yourself & Your Business-Issue in #4: What if a customer screws you? That is exactly why you charge double or triple the worth of the product you finance-to fill in such gaps expenses. That is not the only way, however, to secure your financing business (whether plain or retail). As a customer shows his interest in being financed, he fills out a form for your evaluation and signs an electronic (since we’re talking e-commerce here)/ e-signing agreement that states your ‘financing terms & conditions’ such as his paying for the restocking fee, etc.Now, there you have it: the basic steps to your e-commerce financing success. Also note that you won’t have to use money from your own pocket to start financing. You can have your financing financed by banks and “middle men” a.k.a. financing firms (whom you’d be liable to) depending on your business situation (number of years, operating costs, turnovers, etc.).—-*Lay away financing program – You offer an installment method for your client where he pays you on a weekly/monthly basis and you keep the product until he has completed the payment. Upon completion, you ship him the item.
What do you do if you want to learn driving a car? You will try to find an expert teacher, isn’t it? You do not want to avail the services of a novice individual to help you out, but a professional person can provide you the vital tips and most importantly guide you efficiently. Similarly, when it comes to investing in the stock market for the first time, you require a knowledgeable advice to attain your financial goals and get profitable returns.
If you are a beginner, then it is quite obvious that you may be having no information about the process of buying the right shares in the market. In such a situation, getting the right tips from an experienced financial advisor or a registered advisory company will truly prove to be a great blessing in disguise. However, there are some of the important things that have to be kept in mind while choosing the top stock market advisory company, which are as follows:
How much assistance do you actually require?
Before you make up your mind to hire an advisor, it is imperative that you must first decide about the kind of service you require from them. You may need their help at the beginning or during the time of any issues. This is because an advisor has to formulate a map according to your requirements. Hence, it is suggested to ascertain your needs first and then take further action.
Choose a top ranked advisory company
It is a very important point that has to be taken into the consideration. Availing services of the well known advisory company or a financial advisor is an absolute necessity. Make it a point to carry out a proper background or research work about the company. Check out their credentials, reputation, experience, etc before hiring them.
Asking for a sample financial plan initially makes sense
When hiring a financial advisor, then do not forget to ask for sample plan first. It is imperative to note that there is no such thing called the perfect plan. A sample plan will help you to determine whether an advisory company is actually making sense according your requirements or not.
The financial planners or advisory companies can really turn out to be the greatest asset for you if you choose the best one. They are just like the professional sailors who can help you out to sail through stock investment related problems quite efficiently.
Deepak is a financial advisor who likes to provide quality tips to the people facing any issues with regard to investing in the stock market. He likes to keep himself updated about the stock market by reading articles, news and blogs, etc.