Archive | March 2016

Different Reasons For Getting Personal Loans Today

download (80)Personal loans are being accommodated by banks and other lending institutions. Although they have various processes when it comes to approving these loans, they are very much knowledgeable about the common purposes why most people obtain such services.

Different Loan Purposes

For their children’s education – Most people are aware that tuition is not cheap. Apart from tuition, there are miscellaneous expenses linked to sending your child in school. These days, plenty of people are struggling with budgeting so they can efficiently accommodate the huge cost of tuition.

For home improvements – Oftentimes, the need for replacements and repairs happen during unexpected times. Hiring the right professionals to handle the necessary job will certainly cost you a significant amount of money. And personal loans can help cover such expenses.

For emergency situations – When you least expect them, health issues happen. In fact, even when you have health insurance, the cost of hospitalization along with other medical expenses can pile up into a huge amount. Indeed, personal loans can take the stress out of paying for such fees. This can certainly be of great help for people who want speedy recovery for their loved ones.

For holiday getaways – Everyone surely needs some time to be away from their daily routines. Oftentimes, they will bring with them their loved ones so they can have a more enjoyable experience. You will certainly need a significant amount of money for accommodations and flight arrangements.

For weddings – Wedding preparations will require a huge amount of money. In fact, the wedding dress alone is expensive. Other details such as catering, venue and limousine rental can cost a lot more.

Indeed, there are a lot of great reasons for obtaining such. This financing option can be of great help during times when you have limited budget. Remember though that when applying for loans, you are not getting free money. Rather, this is just an early provision allowing you to efficiently manage your cash outflow. This is an option for you if you do not want to miss out the great opportunities to enjoy excellent and happy life experiences.

Be aware also that a lot of banks nowadays are offering flexible arrangements for getting such kind of loan. In fact, there are those who will not require insurance which most lending institutions demand. Moreover, they offer lower interest rates so that the loan can easily be paid off based on the terms provided. More information mentioned here.

 

Are You Giving Your Future Away

download (81)How to Build Your Life as a Business Shark Loans – Why you’re keeping yourself poor by giving away your future wealth.

Today is the day you come to find the reasons why many people stay poor. As a part of Building Your Life as a Business, you have to understand this fundamental truth. That no matter what you do with your money, there is and will always be someone who is more than willing to liberate you of the burden of weight keeping it in your wallet.

Because of this truth, you need to be just as wary of the opposite. Which is anyone who is willing to lend you money. As borrowing money is one of the easiest ways for you to keep yourself poor as you continuously give away your future wealth for something nice now.

This profession of giving money to people to buy things they don’t need or can’t afford has been around for ages and still exists today. These Lenders are called sharks and the loans they give are shark loans. They are given such a name because of their predatory nature. Because the loans have too high of interest rates and other bad terms that take advantage of you and your ability to pay.

Let’s go over two bad examples of people who give shark loans:

Shark Loan One: (Based off a true story.)

You need a car.

You need one as soon as possible.

You walk onto a Used Car Lot.

You walk away with a $12,000 loan and a Used Car.

You have a 4 year loan at $400 dollars a month.

Which means you will pay $4,800 dollars per year for 4 years.

Coming out to $19,200 for a car that is only worth $12,000.

Even worse, you drive it off the lot and it immediately loses $3,000 dollars in value. (As most cars do.)

So if you ran into money trouble and couldn’t make your car payment, you couldn’t even sell the car to cover the original loan amount.

You pay your car off for 2 years, and then something expensive breaks in the car. You have to pay it off because if you don’t you can’t go to work so you can keep making payments.

The extra expense ultimately affects your ability to pay your car payments, and you miss a few.

Your car is then repossessed and they demand all your past car payments plus current ones to get it back.

But you don’t have the money and even worse you need the car to get to work.

Because you can’t get to work, you lose your job, and the loan company sells your car to someone else. However the amount they sell it for isn’t enough to cover the loan and they still demand that you pay the rest of the loan. Even though you will no longer have a car and have no job. You are still legally liable to pay the loan back.

Shark Loan Two: (Based off a true story.)

You go to college for an education.

You take out $100,000 for a degree that isn’t in high demand.

You get out of college and can’t find work.

You end up taking a job offering low pay and is far below your education level.

You still can’t make the extremely high payments of a $100,000 shark loan and get a second low paying job.

You work 80 hours a week and still can barely make ends meet.

Because you have conventional loans, the bank won’t let you consolidate your loans or lower your payments without charging high interest and fees.

Even worse, your parents co-signed on the loan. Because you have been missing payments, you have ruined their credit. They cannot get refinanced when they hit hard times and need to lower their monthly payments. This causes them to not be able to make their payments a few months down the road and they end up losing the house.

The house becomes the exact same situation as the car loan. And they are still liable for any leftover loan.

In both these situations, you have loans that were given without concern of whether what you were buying would actually help you pay back the loans. No consideration was given to see if this decision would benefit you in the future. It was simply made to take your future wealth from your current income with no thought about the risk of you losing your job, having money trouble because a big expense came up, or another one of life’s little reminders that she hates you.

What does this mean to you?

It means don’t go to college unless you know it is a valuable investment that will increase your income potential by 10x. That means researching to see that the job you want is in high demand and pays very, very well. The idea here is not that you go for your passion. The idea is to get work that pays, and once you’re financially sound, you pursue your passion.

DON’T PURSUE YOUR PASSION USING SHARK LOANS UNLESS YOU KNOW THE MONEY IS THERE.

It means don’t buy nicer things now if you can’t afford it. Don’t buy a $20,000 car and make $500 payments a month when you only make $1000 a month. You’re creating a situation where your finances can be easily stressed if you have even one bump in the road.

DON’T SACRIFICE YOUR FUTURE FOR A SHORT-TERM PLEASURE SUCH AS A NICE CAR, HOUSE, OR ANYTHING THAT SHARKS WILL LEND YOU MONEY FOR.

In the end, ensure that any money you’re borrowing is an investment that will pay for itself.

For example:

Buy a $150,000, 4 bedroom house with a mortgage payment of $850.

Live in one of the rooms and rent out the other 3 for $400 each.

Pay off the mortgage with the $1200 and enjoy your extra $350 a month.

Knowing that not only are you saving thousands a year by not paying rent, your making money as well as paying into a house you can resell for much, much more.

This is your life and you have to treat it like a business.

 

Why Not Share and Show Kindness

images (49)When you are blessed with abundance, or even if that is not the case, why not share and show kindness to others? Recently, I heard about a man who fell upon hard times. Although he had previously had more than enough money, he was having financial problems which made it difficult for him to keep up on his bills. He asked his cousin for a loan of several thousand dollars to tide him over and help him pay some bills during a rough period. The cousin, who was worth millions, refused with the explanation that he had made it a practice to never lend out money. He said he needed to keep the money for his family.

A few thousand dollars would not make a dent in the financial well being of someone who has millions. Yet this person was unwilling to help out a relative. Families should be willing to help each other out through hard times.

Warren Buffet, one of the richest people in the world, has encouraged his fellow billionaires to give away money. Rich people often start foundations to help people in need. These are worthy gestures, but sometimes the people closest to you are the ones you could help out most. Families should be concerned with each other and should be happy to help if their situation warrants it.

During World War II, Americans of Japanese heritage were extremely persecuted and were even stripped of their freedom and incarcerated in camps which had been built in remote areas of the country. They were forcibly removed from their homes on the West Coast of the United States with little time to prepare. Some of them had neighbors or friends who said they would take care of their property and belongings while they were imprisoned. Some of the Japanese Americans entrusted their possessions to people they thought were their friends. Most returned to find nothing remained. However, a few families returned after the war ended to find that kind neighbors had been true to their word. They had taken care of their property. They then shared what they had with the displaced persons who returned after years of being incarcerated.

Lending money is not always a good thing. If a person wants to help someone out, they could give them a loan. However, the person providing the money should probably not plan on having the money returned. If it is paid back, that would be a bonus. It could be considered as a kindness and a good deed.

Sharing what one has need not be that difficult. It is not easy to ask for help or feel like you have to beg for help during hard times. If someone requests a helping hand, why not share what you have and show kindness. It would make the world a better place if more people would do it.

Getting a Fix and Flip Loan

images (48)A fix and flip loan is a great way to get financing if you’re just starting out in the housing industry. Buying a home, renovating it, updating it, and then putting it back on the market is a great way to make a living or to earn extra cash. However, if it’s your first time, you may not have the seed money that you will need to get started. Here are some things to know if you need a boost to get into this industry.

Turnaround

Keep in mind that the turnaround in most of these cases is less than a year. That makes getting a flip and fix loan from a traditional bank almost impossible. Banks make their money from the interest accrued from long-term financing agreements. They don’t like having the borrowed amount paid off within a year. To get this type of funding, you’ll have to look for a lender who will agree to a short-term deal.

The Right Property

The first step is to find the right property. You’ll want to find something that you can get a really good deal on, and it should also be in need of renovation. Keep an eye out for foreclosures or those homes that have been damaged by fire or water. Once you’ve found the right place, one that you think you can make a profit on, it’s time to secure a fix and flip loan.

Have Your Paperwork in Order

Before you head over to meet with someone to discuss securing financing, make sure you have everything in order. Look over your credit score to make sure that the lender won’t think that you are a risky borrower. Make sure you have your documents in order to show how much reserve capital you have. You should also be able to verify your income by having pay stubs, a W-2, and tax returns on hand.

Understand the Calculation

Financing is calculated a little bit differently in these cases. Remember, this isn’t a traditional mortgage. They will calculate the amount they’re willing to front you by looking at your money reserves, your credit, your expertise, and the purchase price of the unit you’re going to rehabilitate. They also take into consideration the estimated costs of renovating and repairing the property and the estimated value of the finished product.

Know the Term

Always keep in mind that the term for these deals is usually between six and eighteen months. While some companies will sometimes allow for three-month extensions, you should have a realistic plan in place for completing the rehabilitation and selling the property before your time is up. If you don’t give yourself enough time, you could be in trouble.

If you want to get into the home renovation field but don’t have the cash on hand, a fix and flip loan may be what you need. However, your chances of securing the financing will be improved if you follow the tips above.

This entry was posted on March 2, 2016.