Top 5 Benefits of Hard Money Loans

Hard money loans refer to financing provided by non-institutional lenders. There are many hard money lenders who offer fast funding at attractive interest rates.

As the borrower, you’ll need to perform a thorough check on the lender’s reputation and business, but as you do your research you’ll find that hard money lenders can provide a great advantage in your quest to fund your real estate investment project.

Benefits of Hard Money Loans

Faster Approvals: Without a doubt, one of the major benefits of a hard money loan is the fact that investors can secure the pre-approval within one or two days, given they have submitted the handful of documents that the lender has requested. Hard money lenders primarily focus on whether the asset itself has good market value and that borrower equity is at least 20%. Financing can take place in less than a week, as compared to normal loans which may take a month or even more. When inquiring about hard money lenders, a key question to ask is how quickly they can fund.

Flexible Payments: With a private lender, you will have more freedom to create a customized repayment plan. With a big financial institution, you won’t have this freedom. Instead, you will have to accept the payment terms set by the bank. However, with a private lender, you can discuss and come to a mutually agreeable repayment plan that you think is suitable for you.

Fewer Requirements: When applying for a loan from a normal financial institution, you will be expected to meet many hard-set requirements, like income history, experience, etc. It is no secret that bank approvals can become a cumbersome process. It is likely that you will not be burdened with so many requirements by a hard money lender. As long as you have a high-value asset with at least 20% equity stake in it, there are good chances that you will qualify for the loan.

Zero Prepayment Penalties: If you obtain a loan from an established bank, you may be subjected to prepayment penalties if you pay off the loan prior to the maturation date. Most fix and flip lenders do not charge prepayment penalties, so if you come across extra cash and decide to pay off your loan before the due date, you can confidently do so without having to worry about being penalized for it.

Credit History Not a Big Issue: In the case of big lending institutions, your credit history can have a huge impact on whether you will get a loan or not. With private lenders, less emphasis is placed on a weak credit history. This is because of a private lender bases loan approval on property value, borrower equity, etc. As long as you meet these criteria, you stand a good chance of getting funded.

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10 Red Flags to Business Lenders

Banks need to take into account both financial and non-financial factors when assessing any lending proposal. Here we list 10 common non-financial issues that may raise the red flag of concern and reduce your lending application’s success.

1. Poor communication of the deal

Communication is key. If the bank is not convinced that you understand your business, how can it have the confidence to support you? Don’t confuse, be specific and get it right first time. As well as discussing your financial needs (supported by relevant data), ensure you can confidently discuss your market, strategy and competitive edge.

2. Weak industry outlook and external pressures

Whilst lenders continue to support their existing cyclical business clients through peaks and troughs, if the industry outlook is negative and future cash flow uncertain a new bank may not wish to take on this risk just now. Furthermore, growing external pressure from competitors or legislative changes over which you have no control will be taken into account.

3. Inadequate spread of risk

If the future of your business is reliant on one key client, supplier, product or region, the downside risk may be considered too high to the bank. Notwithstanding your current situation, the unexpected does happen and the bank needs to factor this into its risk assessment.

4. Opaque business structure and hidden liabilities

Complexity doesn’t impress – A bank needs to clearly see where debt lies and who controls the assets that support the debt. A complex and unnecessary multi-layer structure comprising subsidiaries, associates, investments or joint ventures may not help your case. The structure should reflect the size and type of your business. Furthermore, if related companies have different year ends a lender cannot be confident that assets have not been double counted.

Out of sight out of mind – Guarantees, contingent obligations and pending litigation may also add to a future debt burden. In certain sectors obligations such as performance bonds are considered a necessity but if you have considerable off-balance sheet liabilities this will lead to investigation.

5. A weak management structure

If your business relies on one key individual, has an unbalanced or inexperienced team, has seen a quick succession of those undertaking major roles or has a less than competent financial controller or director this will ring warning bells for the bank.

6. Poor management decision history

Past errors in judgement will come back to haunt you. Having said that, a successful remedy, with plans swiftly implemented to avoid a recurrence, could be viewed positively by the bank. The strength of your management team will be seen as dictating the strength of your business.

7. Inadequate internal monitoring systems

If internal monitoring systems are poor and financial staff inadequately trained this will not install confidence that the bank’s lend is safe moving forward.

8. Unauthorised operation of the bank account

A poor repayment history, excesses, unpaid items and covenant breaches are clearly not going to help your case but more subtle incidents such as undisclosed issues having previously come to light and excessive man-hours needed to chase requested information will be recalled.

9. Expansion planned beyond your comfort zone

There is nothing wrong with expansion into a new area but if it becomes evident that you have undertaken insufficient research or do not have the necessary skills and resources to carry it through, the bank will have little confidence in your venture.

10. High exposure to country risk

If your business is exposure to a country that is unstable, either politically or economically, this will raise your risk profile. This may be directly in terms of currency exposure or in terms of customers, sources of raw materials or a manufacturing base.

The hard numbers of the deal itself are clearly key in any lender’s decision but it is not all about the numbers. For a successful lending application financial and non-financial considerations will be taken into account by a bank and red flags should be avoided.

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Get Back to Work to Avoid the Train Wreck

When the coronavirus stay-in-place orders started, the time at home seemed like a timeout from the frenzy of office life. With considerable curiosity, I absorbed the statistics, news articles, videos and just about all the information that I could find. New concepts of the day featured: social distancing, flattening the curve, asymptomatic, and reaching the peak. The stories of human suffering, sudden onset, and family tragedy are a heartbreaking addition to the evening news.

Through all the focus on the pandemic, there are quiet, yet steady voices about the economy. However, these voices are not loud enough to counter the hysteria of the virus. What are we going to do? Is it realistic to just turn off the economy for an unspecified amount of time. Imagine not paying the mortgage.

Of course, warning signs will emerge after 30 days, and there is still plenty of time to get things back on track. At 60 days, the mortgage company demand letters and phone calls become continuous. Credit is severely downgraded and all the parties involved know that without a major change, the full impact of the foreclosure train wreck is around the corner.

Since I live on the edge of Denver, visiting small, country towns is a short drive away. I will often go on shopping trips to these places in an attempt to push my expenditures towards the entrepreneurs, who can gain considerable benefit. I will often ask how are things are going with the current situation. The first response I see is the fear in their eyes about the unknown. One gas station manager told me their cash register often rings up less than $100 in an entire day. Projecting out to 30 days, imagine trying to run a business on $3,000 per month to pay the rent, employees, vendors, and still make a living.

The federal government is making a valiant attempt to backstop business and individual bills through stimulus packages and unemployment compensation. With a combined federal debt level of $20 trillion, how much more debt can we absorb without severely damaging our economy for generations? Despite the best of intentions, millions of individuals and businesses will not become financially whole again for many years. A bankruptcy late in a career will postpone and permanently alter retirement.

There is another way forward to prevent the train wreck and climb out of financial despair. First, insist on sheltering-in-place for seniors, anyone with an existing health condition, and residents of hard hit areas, such as New York City, Detroit, and New Orleans. Next, starting with rural areas with a modest number of cases, open up the economy with social distancing guidelines in place. As the virus continues to slow, phase back in the remaining businesses with altered arrangements, such as fewer tables per location for restaurants and customer limits with other retail businesses. Telecommuting, masks, and wide scale testing can be implemented as well.

There are millions of people, such as me, who are willing to accept the risk of obtaining the virus to protect our own livelihoods as well as contribute to the resurgence of the economy. If anyone does not feel comfortable, they can opt out for now and re-enter at a later time as long as they understand the financial risks. The longer the shelter-in-place orders remain, the deaths from economic despair will begin to significantly surpass the deaths from the virus.

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5 Advantages of Online Rent Collection

Landlords and property managers certainly want to improve cash flow on their rental property and to do this they have to maximize operational efficiency. Some of them continue to collect checks and money manually then enter all transactions in a blue ledger, which is outdated. This article will talk about 5 advantages of online rent payment for property owners, some of which can benefit tenants as well.

Saves Time

Property owners and their managers make the most of their time to get more of the work done. Instead of spending time in manually collecting rent, they can use it in maintaining their property and searching for more investment opportunities.

Online rent collection will save them the costs of paying an extra fee for clearing cheques. In case the cheque bounces, they have to get it back, tell their tenant to replace it then go through the whole process again.

They can avoid all the hassle by choosing online rent collection. This fast and efficient system allows them to get a digital receipt of all transactions and store them so they have a digital record of rent collection. With online rent collection they can forget about the paperwork and long bank lines.

Saves Money

People can find it tedious to do the bookkeeping especially when this is not their line of work. Even the slightest errors in figures can be costly and time-consuming to adjust without a physical receipt. Since online rent collection digitalizes the process, they just need to copy-paste the figures on an excel sheet. This minimizes the possibility of making a mistake plus it saves money as well.

Enables Informed Decision Making

Multiple analytical tools are available online, which they can access to get an accurate idea of the management system’s efficiency. When they use property management software they can utilize these analytic tools so they can verify if it is functional like it claims. It helps them to make informed business decisions by letting them track late payments, tenant requirements and preferences.

Provides Flexibility

With online rent payment, tenants will be able to transfer their rent to their landlord any time and anywhere they are. Even if they are away on a vacation at the beginning of the month, they do not have to worry about a late payment.

On the other hand, if property owners/managers are away on a business trip or are busy to collect the rent personally, they can always get it by means of transferring it online.

Improves Tenant Landlord Relationship

Since online rent collection provides more flexibility, this eventually increases the satisfaction of tenants. What used to be a stressful process will turn out to be simple, fast and efficient. In doing so, the tension between landlords and tenants are minimized and this allows a healthy relationship between the two parties.

There are still innumerable other benefits given by online rent payment to both landlords and tenants. Now is the time to benefit from it to maximize operational efficiency and get peace of mind.

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How to Write an Article to Be SEO Friendly

What does an SEO-friendly article look like these days?

Ask 100 people and you will probably get 100 different answers. The problem is that a lot of marketing ‘experts’ are still stuck in the past when it comes to the best strategies for getting a post to the top of Google and this results in a lot of low quality content and a lot of wasted time.

The best way to make an article SEO-friendly is actually quite simple, so read on and let’s dive into what you need to know.

Provide Value

To understand how to write the best SEO-friendly article, it pays to get inside the mindset of Google a little. What is Google trying to achieve?

The answer is simple: it wants to serve its users by linking them to the very highest quality and most relevant content that it can find. Thus, any signals that you can send to Google to show that your content is high quality and relevant, will ultimately results in a boost to your SEO. The question is just how you go about doing that.

One example is to include outward bound links to other useful resources, relevant to the content of your site. This shows Google that you’re interested in providing as much information as possible to your readers, it aligns you with high quality sites and it provides references to back up your claims (suggesting accuracy).

What this shouldn’t mean is that ‘every article needs at least two outward bound links’. This is entirely missing the point as it will create a predictable pattern on your site that will look like manipulation. Link out when it is relevant and useful and don’t be cynical about it.

It’s also for this reason that Google likes to see long content – of around 800 words+. While reports vary, it is generally thought that the ideal content length for SEO is approximately 1,800 words – and this will improve your chances of being features as News.

Keywords

It’s painful to see, but some SEO companies still think that a good SEO article is one that has the same keywords repeated over and over, to the detriment of the reading experience. This is one of the fastest ways to have your content flagged as spam, if not by Google, then by the human readers on your site.

Instead, keywords should be used very sparingly. A density of around 1-2% is recommended but only when that is appropriate and when it fits with the content naturally. This is one reason to write longer-form content though, as longer posts are going to have more space for repetitive keyword use. It’s also important to recognize that synonyms and related terms are just as important, if not more so. Try to write around the subject and let related terms enter your content naturally. This is something you can expect to play a bigger and bigger role in future.

Readability

Finally, space out your content and use lots of headings. Use large fonts and a narrative, user-friendly structure. This will help to keep people on your pages for longer and that’s one of the other things that Google looks for when ranking content.

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Jump A Step Ahead With These Amazing SEO Tips

SEO is known as the best process that helps to increase the rank of a website. It is also a fact that you need a perfectly build website that must be error free. There are many factors that you need to check before starting the SEO process. We all know that SEO is a slow process that takes time to deliver the results. Many people use wrong techniques to promote their websites, but that can be a wrong move because it will lead to penalizing the website. White hat is an ethical process of doing SEO that helps you to get a higher ranking for a quite long time. Here are some great points that you must follow before doing SEO.

Domain Authority – It is the most important factor that you must check before stating the promotion process. The domain authority is the number that determines the success of a website in the search engine result page. Always remember that a domain with high-ranking provides better traffic and better search ranking. There are many tools that help you to check the domain authority so, you can review them easily.
Backlinks Matters – A backlink is mainly a link that connects your website from external sites. The main purpose of doing SEO is to create the good number of backlinks. Many people focus on the quantity, but this can be their biggest mistake that can lead to lower the ranking of their website. It is important to be linked with high PR sites, as it will help you to increase your website on search engines.
A Good Number Of Index Page – Index pages refers to the number of the page that is available on the website. The robot crawls on every page and returns back, this helps to improve the ranking of the given keywords. It is recommended to post the regular articles and blogs on your website and get them crawled by the spider.
These are the most important points that you should consider because SEO will only going to help you if you do it in a right manner. Besides this, there are many other factors that play an important role in SEO process. It is suggested to analyze the website and check the errors before starting this process, as any kind of error will lead to lower down the ranking of a website. It is strictly recommended to apply white hat to get the long-lasting results.

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8 Secret Tips To Optimize Your Content For SEO

This article is especially for my readers who want to learn everything about SEO. Here I will share with you all the extensive and the advanced SEO techniques you need to know to be successful. I present to you the most advanced SEO strategies that exist. These are the proven methods to increase the rank of your website. With these proven strategies you can speed up the site performance, and get more targeted traffic. Here are eight secret tips to better optimize your content for search engine optimization.

Accessibility And Indexation

Do you know what matters the most for SEO? The content! But is that it? The answer is NO! You might have a website full of amazing, creative and unique content, but if the search engines like Google do not index the site, the search engines can’t crawl the site properly; the unique and attractive content and a beautiful website will not matter at all.

Performance And Website Speed

You may know that site speed is not a large factor in listing the website at the top. It affects the ranking by 1%, but that 1% is often neglected. Google may not give it that much importance, but think of it like this, if your website is quick, easy to load, responsive, then the visitors will be happy visiting it again, any authentic SEO expert services provider will tell you that. Make sure that you understand efficiency makes the user experience better. Once the users get a quick response, they have a better control of the experience.

Now that the search engines index your website let us go further to the next level. The second allows you to analyze & control the performance of your site and also the speed.

Advanced Search

Today SEO is not just about the back links or tags. SEO has evolved over time. The search engines will not rank your website if it is not relevant. Once you understand this part; you will get ahead of others.

SEO Expert Services Prefer WordPress

WordPress is an excelled source. We say source because it is. You will find that almost every blog is created in WordPress. It is an excellent CMS with dozens of capabilities which are SEO oriented. Most of the people know the basics of WordPress, so we will skip those and take things one step ahead.

Advanced Research For Data

When you are running an SEO campaign, it’s like being a detective. It is fun, and it is challenging. To ensure the best you need to get the data or let’s say, pull the data from different sources available on the web. There are many ways in which you can dig the data from various sites.

Research For Keywords

Keyword research is a big thing in SEO. You must have used the popular Google AdWords tool. We suggest you do not stick to only a single tool. Try other dozens of tools available on the web.

Techniques For Link Building

You may use penguin and panda to create the links. But still, you will need some excellent strategies and techniques to make sure that your content is out there. You need to deploy proper methods to ensure that the people see and read the content, and they link back to it.

Other Search Items

It may be easy to rank the text i.e. the content or the article but what about the media on the site? How will you rank the photos? How will you get good ranks on the mobile search? A good SEO expert services provider will also look into these things and will optimize the content for you in a fruitful way for your business.

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Benefits of Credit Card Machines for Business

Other than credit card machines, technology has produced many notable effects, including the credit card machine. In the 21st century, people open themselves up to technology from the very center of their being. It has the added benefit of leading to an increase in the use of credit and debit cards. Additionally, the coronavirus’ arrival has also contributed to the increased use of contactless transactions. EMV cards are replacing magistrate premium cards. EMV chip cards give you the ability to make contactless payments. The merchants must have advanced payment terminals to accept such payments.

Credit and debit cards are used almost exclusively in today’s business world. To take your business to the next level, you must associate it with a credit card machine. The processing and payment services you need for online sales include a merchant processor that provides you with an online payment gateway. There will always be online modes that people will prefer to use, regardless of the volume of transactions. As a result, you have to use an advanced piece of equipment, such as a credit card machine, in tandem with your business.

Advantages:

Just because we’re living in the 21st century, it’s impossible to conceive of life without modern technology. A large number of businessmen prefer to stick to established business models. However, sometimes you have to alter your plans according to the current situation. This means that you need to be one step ahead of everyone else in the business. You will lose customers otherwise. An establishment that gets access to a credit card machine will enjoy countless benefits. Listed the benefits; so, don’t miss the following:

Obtain Legal Recognition for Your Company:

Accepting card payments using digital payment terminals is a legitimate business practice, so it should help your company a lot. The card brand name will be printed on the POS, and thus the customers will have no problem noticing it. This logo will be featured on the same online marketplace as well. The greater the number of customers from outside the country, the more money you’ll make.

Increase Your Profitability:

To accept various forms of payment, like credit cards, Google Pay, Apple Pay, and more, use a credit card machine at your business. Creating a positive impression on your customers is quite simple, but it also keeps your customers loyal. A credit card machine, thus granting flexibility in the ecosystem of online payment, provides customers with many payment options, thus allowing them to pay bills in various ways.

How to stay ahead of the competition:

Many businessmen have not yet fully embraced digital equipment, making small-business models in the early stages of transition. To accept online payments, your business equipment must be upgraded. If customers are no longer carrying cash, you can outpace your competitors. Research has shown that when customers use their cards to make a purchase, they spend more. Additionally, because you will make a substantial profit from accepting card payments, it’s highly recommended that you do so.

Cash Flow Improving Measures:

The customers’ card payments get settled quickly when they pay with a card. Everything is done electronically, so you don’t have to go to the bank to deposit the money. Additionally, you don’t have to wait for customers to pay you. Your cash flow will thus improve.

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Are You Choosing the Right Stock Market Advisory Company

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.

Conclusion

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.

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5 Areas Where Interest Rates Matter!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!

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