August 31, 2006, 8:42 pm : What is Your Legacy
Filed Under: Probate Real Estate, Real EstateDiscussion: C[0]mments
How will you be remembered after you are gone? Perhaps you don’t care or perhaps you haven’t thought about it. Maybe, if you are like me, you have thought about it quite a bit. Two events in my life really got me thinking about this issue. The first was at my grandmother’s funeral. She lived in a small town in the south and I remember looking back on the funeral procession and seeing that it stretched as far as the eye could see. That small town must have been shut down that day. Then came my father’s funeral. I remember a stream of people coming up to me, many whom I didn’t know, telling me stories of how wonderful a person my father was. I wondered how many people would come to my funeral and what they would tell my children about me. What will your legacy be? Here are some questions to ask yourself.
How is your estate plan
Do you have a will? If not, you have chosen to leave your assets to your heirs in the most confusing and time consuming manner possible. If so, that’s a great first step but it may not be enough. A well thought out estate plan leaves your belongings to your heirs in the most efficient manner while taking into account their different needs and wants. Your will might cover large items but what about the small stuff lying around your house? If have heard horror stories about siblings who no longer talk because of fights over trivial items not included in the will. Have you left your home equally to your two children knowing full well that one will want to live in while the other will want to sell it? People do things like these all the time, yet it’s a recipe for disaster.
Are you properly insured?
Will you leave behind enough money for your family to maintain their lifestyle or a stack of bills? A simple rule of thumb measure to figure out if you have proper insurance is cut in half and drop the zero. For example, if you have $500,000 in life insurance you divide that number in half ($250,000) and drop the zero ($25,000). This is how much annual income your heirs could expect to receive from the life insurance proceeds. This example ignores a number of variables but it is a good starting point in figuring out if you have proper insurance.
Are you making smart choices with your money?
Are the choices you are making with your money today in line with the kind of legacy you want to leave? Are you teaching your children to be financially literate? If you want to be charitable what are you doing to achieve that goal? If you want to help with your grandchildren’s education how are you doing it? You can use your money to accumulate as many possessions as you want but after you are gone it is all meaningless. I will never forget going through my father’s effects after the funeral and seeing tie collection that he was so proud of. Unfortunately, they were too outrageous for me to wear and my brother doesn’t wear ties.
August 31, 2006, 10:13 am : A Guide To Debt Reduction Credit Card Consolidation
Filed Under: Debt ConsolidationDiscussion: C[0]mments
Debt Reduction Credit Card Consolidation Crisis
A credit card started off as a great financial tool, and has over the years degenerated into a debt trap. It was a great way to make payments without the need to carry large sums of money, and still is, provided you know how to manage credit cards. Credit cards come with great benefits, and whatever its disadvantages, they are self generated by you. Injudicious use of your credit card can land you in trouble, which is very difficult to come out of. Credit card debt consolidation is one popular way to crawl yourself out of the debt hole, but before this let us see how you can get into trouble.
Most people make the mistake of making only the minimum monthly payment. You still need to pay the balance, which if not paid may attract a monthly interest of, say, 15 percent – a steep rate. Every delay in paying the balance geometrically increases the debt, until it gets completely out of hand. You make a $50 minimum monthly payment on a $1,000 purchase. The balance of $950 attracts a 15 percent interest next month, which is $142.50!
Debt Reduction Credit Card Consolidation is not a Debt Consolidation Loan but a Debt Management Service
Credit card debt consolidation is one of the best techniques to reduce your credit card debts. It is not a debt consolidation loan but a debt management service. An expert on debt consolidation negotiates on your behalf with your creditors. The outcome could be reduced rates of interest, along with waived, or reduced, fees and penalties. Your total debt is brought up to date and you start making your monthly payments.
If the payment plan is strictly followed, you may be in a position to become debt free in a period of 3 to 6 years, by paying off your debts. Credit card debt consolidation allows you to get out of your debt through paying less. Though it may not improve your credit rating, it will at least set you on the path to freedom from debt.
August 30, 2006, 9:11 pm : Condo Hotels: What Investors Need to Know
Filed Under: Real EstateDiscussion: C[0]mments
Condo Hotel projects are on the rise. From skyscraper hotels to luxury resorts, condo hotels dot the landscape of popular vacation destinations, such as Florida and Las Vegas. And big hitter personalities like George Clooney and Donald Trump, wanting to capitalize on its popularity, can’t wait to attach their name to a condo hotel project. Even Nicky Hilton is jumping into the condo hotel craze. Her boutique style condotel, befittingly named Nicky O, opens this November in Miami, and she has plans for another condotel in Chicago.
But because a star is successful, does that assure his/her hotel will be, too? Steven Roszell, owner and broker of CondoHotels.com and HotelsforSale.com, doesn’t quite think so. “A big name on a project does not guarantee success,” says Roszell. “Ivana Trump, George Clooney, Michael Jordan, and even the famed Hard Rock Las Vegas project are some of the most recent examples of scrapped projects.” Roszell cautions potential buyers not to invest in a condo hotel solely for its illustrious name. “Big brands, such as Marriott, Hilton, and Four Seasons, and seasoned developers and management companies are a better indication of a project’s success. This is their business—they’ve been doing it for years,” Roszell adds.
The condo hotel’s location also does not predict its success. Orlando, the world’s top vacation destination, has reached its saturation point with condo hotels. “It may come down to there is too much supply,” says Roszell. “If investors buy with the intent of flipping the property to make a fast buck, the Orlando market may not be for them.” Roszell also adds, “Investors anticipating a high rental income may need to rethink Orlando for the time being. There’s potential for too much supply.”
Roszell advises his clients to look at three factors when considering a condo hotel: location, growth, and future income. “We tell investors that a condo hotel purchase is a lifestyle investment. Buy in locations where you want to vacation for the next 5 to 25 years.” Roszell also notes how condo hotels have become prevalent in major metropolitan cities, such as Boston, Chicago, and New York. “There is a limited amount of prime location areas that can be built upon in these major cities, and in time it’ll be harder to get a room during peak season in those locations.”
Condo hotels or condotels are hotels that convert a portion of rooms into condominiums and make them available for purchase. Once a property is bought, owners may enjoy their new luxury condo and/or choose to rent it. Owners receive a percentage of any rental proceeds and hotel management takes care of maintenance and cleaning.
August 30, 2006, 10:31 am : Be Debt Free At Low Cost on Availing Unsecured Debt Consolidation Loan
Filed Under: Debt ConsolidationDiscussion: C[0]mments
Debt pile-up has high potential for turning borrowers’ life into financial crises if timely adequate steps to eliminate them are not in place. Debt consolidation loan therefore has gained importance and popularity with the rise in debts and related incidents. But in case, loan for debt consolidation is to be taken without securing it, the loan seeker faces hurdles. Unsecured debt consolidation loan however is an exception as borrower gets the loan in hassle free manner and terms-conditions are kept easier considering the necessity of the loan.
Debt consolidation means all previous debts are merged under one lender. The lender takes fresh loan at least of the amount of debts including interest rate and pays off debts immediately. Thus instead of paying various monthly installments to different lenders, now borrower pays the installments to just one lender. As debt consolidation is done on taking lower interest rate loan, lot of money is saved after high interest rate debts are paid off.
A borrower generally opts for unsecured debt consolidation loan as either he does not own property to take loan against or despite the property does not want to risk for a loan for fear of its repossession. So with the elimination of collateral from the loan scenario, lenders have to ask for credentials of the borrower for offering unsecured debt consolidation loan. In case you possess good credit history then unsecured debt consolidation loan is easily available at comparatively lower interest rate, though normally it remains higher. Problem arises in case of bad credit history. The lender would like to ensure safe return of the loan.
Borrowers should furnish proof of their income source and financial standing to the lender at the time of asking for unsecured debt consolidation loan. Though borrower needs the entire amount necessary for paying off debts, still the amount will depend on to what extent the lender is satisfied with his credentials. Normally unsecured debt consolidation loan seekers are the one who have lesser debts.
Unsecured debt consolidation loan comes at lower interest rate as compared to the interest rate the borrower was paying on previous debts. Comparatively lower interest rate is the main reason for availing the loan. One can compare different loan providers for lower interest rates before sealing the deal. The loan is offered for shorter repayment duration of few years but if smaller amount is borrowed, the loan can easily be paid back in time.
Apply online as this way you can compare different loan packages of numerous loan providers. Study carefully the terms and conditions before you seal the deal. The loan should be paid back in time to escape another debt and further adverse creditability.
If taken after careful thought, unsecured debt consolidation loan not only lessens your debt burden but makes you financially stronger as well.
August 29, 2006, 9:47 pm : How to Select a Real Estate Agent
Filed Under: Real EstateDiscussion: C[0]mments
The purchase of a home, for the vast majority of individuals, is the single biggest financial decision made in their lives. Clearly, then, it becomes evident that the selection of a real estate agent is a serious consideration which should not be taken lightly. But what factors should be considered in the selection of a real estate agent?
The Real Estate Agent of Reputation
Not all real estate agents are the same. Some real estate agents have a reputation for being difficult to work with. For example, an agent that is pushy, argumentative, unprofessional, is late for appointments, or misses deadlines can frustrate the buying process. A real estate agent should have a reputation for getting along well with all parties to a transaction, buyers and sellers included. An agent that takes a lawyer-like approach of zealous advocacy for one side in a real estate transaction cause the other side to walk away from the deal. Communication and “people” skills are important, as well as diplomacy and tact in the event a difficult situation should arise. And clearly, honesty is tantamount.
Communication skills involve more than just communicating information – in fact, the primary test of effective communication skills is the ability to listen. An agent should listen to your needs, consider them, and then use that information to guide you to the neighborhood and home that is perfect for you.
Ascertaing the reputation of a real estate agent requires some detective work. It is wise to ask for references, on both sides of the transaction. Ask about problems that occurred during the process, and how they were handled. Talking to both buyers and sellers about their experience in dealing with a particular agent can provide insight as to how you can expect your real estate experience to unfold.
Geographical Area of Real Estate Expertise
It is important as well to ensure you are dealing with a real estate agent who is a “local specialist”. Many states technically allow licensed real estate agents to participate in real estate transactions anywhere within the state. However, a local specialist will be familiar with local selling practices. For instance, property transfer taxes vary by locale, as do the party responsible for paying them. In some locations, there may be different customs for the division of city and county property transfer taxes. You want to be sure that you are dealing with an agent familiar in local custom so as to avoid paying unnecessary fees.
One idea is to canvass the neighborhoods in which you are considering buying. If you see lots of yard signs for a particular agent in those neighborhoods, it is a good bet that the agent is a local specialist.
A local specialist will also be able to provide you information on schools, recreation, churches and synagogues, shopping and entertainment options in the area.
How to Select a Real Estate Agent
Word of mouth is usually the best and most reliable source of information regarding any particular real estate agent. This type of information is reliable in that it has not been “spun” by the agent and the source of the information has no particular motivation one way or the other, except to relate his or her experiences.
Be sure to interview more than one agent. Prior to conducting an agent interview, make a list of items that are important to you. These items might include proximity to freeways or commuter rail lines, style of home, age of home, proximity to schools, local tax rates, or any other number of items which may or may not be “deal breakers” in your mind. Additionally, you may be interested to find out whether or not the real estate agent has support staff which will assist in the handling of various aspects of transactions. Additionally, making a list of these priorities will assist your agent in finding the perfect home for your family.
Ask the real estate agent you are considering for referrals to other real estate agents for you to interview. An agent that is secure in his or her quality of service and reputation will have no hesitation to provide you with the names of competing agents for you to consider. An agent that provides this information to you is likely an agent with whom you would want to do business.
Other factors to consider are whether or not real estate is the agent’s full time career, the number of years of experience the real estate agent has, and any real estate designations possessed by the agent.
August 29, 2006, 10:36 am : Debt Consolidation Loan Tips to Improve Credit Scores
Filed Under: Debt ConsolidationDiscussion: C[0]mments
With summer passing us by, many consumers begin the process finding their first home to purchase while others put their current home up for sale and look for a new house. Before looking to buy a a new home, refinance your 1st mortgage, or take out a new second mortgage, it is important to learn more about their credit score and how it affects their ability to borrow money for a mortgage.
A credit score is a determined scientific number from 300-850, which indicates the level of risk for repayment of debt to a lender at the time of the credit inquiry. Credit scores are based on a consumer payment history including mortgages, credit cards, auto loans, bankruptcy filings and any other public records, along with how long their credit has been established and a mix of credit types they are using. The number of inquiries about their credit during the last 12 months may or may not be a factor influencing their credit score, depending on all the other factors present in their credit file at the time of the inquiry.
Mortgage experts suggest that consumers seek professional mortgage counsel to determine the areas of concern on your credit report. We recommend that you get a game plan for rectifying your credit history, fico score and credit profile. when you sit down with a home finance specialist, we suggest applicants consider the following tips to repair their credit and eventually increase your fico score before locking into a long-term loan at a subprime interest rate…
How to Improve Credit Scores
1. Pay off as much debt as you can for all your revolving credit accounts. Get your balances down 25% of the credit line limit. Reduce the balances on all credit cards. This is a better strategy than carrying high balance where exceeding more than 30% of your available credit limit would indicate you were a higher credit risk profile.
2. Do not play the transfer game of pushing your balances from one card to another. It always catches up to, and you end up with more revolving debt. Consolidate your credit card accounts to one or two cards and close out other high interest accounts. Consolidation of your credit card balances will noticeably distort the appearance of your credit utilization.
3.Keep your credit card accounts open and active by using your cards at least once every five months, even if it is for a tank of gas. When you receive the bill for a credit card you do not use that often, make sure to pay the bill in full. Do not close accounts without the advice of a knowledgeable mortgage broker, as doing so may negatively impact the balance of the variables weighed by the scoring model in assessing your risk profile and credit score.
4. Review your credit report for accuracy at least ninety days before applying for a mortgage. Have any inaccuracies reported and have outdated information in your credit file modified by that specific repository by sending them a written dispute requesting the item be reviewed again to verify its accuracy. You may want to ask your mortgage broker how you go about filing a written dispute with the appropriate repository.
5. Have your credit card documentation organized so that you can support your claim about why you are filing a dispute request and mail that documentation to the reporting repository with a return receipt requested. Remember, that the Fair Credit Reporting Act states that the process to make necessary modifications will take approximately 30 days.
6. Paying off a collection account or judgment will not eliminate it from your credit file. Paying off or derogatory credit items will show a zero balance, but will not disappear from your credit file for a seven-year period from the occurrence of the negative item. A late or collection account will still be reflected in your credit file even if it has been paid off recently, as it was late or did go to collection therefore it is accurately reported.
August 28, 2006, 9:07 pm : Overseas Property Investment - Tips For Maximizing Your Profits
Filed Under: Real EstateDiscussion: C[0]mments
Overseas property investment is more popular than ever. You can make triple digit gains and many investors do, but many lose heavily, so what seperates winners from losers?
Here we are going to give you tips for overseas property investment that will help you enter the small minority who make the big profits and make your overseas property investment a success.
Here are your 4 tips for overseas property investment success
Overseas Property Investment Tip 1: Look for best price in terms of risk – reward
Many people when trying overseas property investment simply look for the cheapest price they can find and assume that prices will go up in value and they make all sorts of projections but thats all they are projections and not based on reality.
In most instances the cheapest properties do have high profit potential if the market takes off, but in most instances they don’t.
Many investors find their overseas property investment was cheap when they bought it but gets cheaper!
The way to avoid this sceario is to buy property that may not be the cheapest but has the best potential for reward in relation to risk.
This means buying a market that has taken off is attracting investment and has a track record.
Overseas Property Investment Tip 2: Buy a trend in motion
Investors in any market to do with money know that “a trend in motion should be bought” and this applies to overseas property investment.
Regardless, of whether you are buying a villa, a vacation home, or a condo, you want the location you buy to be rising in value.
It’s a fact that if you have a property trend in motion its likely to last for decades, as steady and rising investment attracts more investment.
For example, in Central America Costa Rica has been the leader for years and many investors have made 30 – 100% profits annually.
Many investors however have decided there is more potential in “newer markets” such as Honduras, Belize or Nicaragua, but the risk is higher and a long term trend is NOT Established.
Costa Rica has huge established expat community and record investment and the fact that a huge community exists means it’s popular and will grow.
Will potentially unstable and poorer countries come to rival it? Maybe, but you are buying potential and NOT a long established trend.
It’s for each investor to decide how much risk they want to take in their overseas property investments – A proven market with solid gains and an emerging market with higher risk reward.
Keep in mind that with most new overseas property investment hot spots they remain “hot” for a while and quietly die.
Overseas Property Investment Tip 3: Be careful with location real-estate.
No matter what country you make your overseas property investment in, don’t buy unless you are buying near developments or infrastructure that will see real estate values rise in price.
Don’t buy in an area you think will become popular. Buy in an area you know WILL become popular as it’s either near new infrastructure such as roads, marina’s etc, or near resorts that are likely to expand.
Overseas Property Investment Tip 4: Make sure you know the country’s financial policy
When buying you need to do a complete review and make sure it’s a safe and stable market for you to invest in.
Get a good realtor with solid track record to help you and don’t try and save by doing your own legal work!
Get an attorney who knows the law and make sure your overseas property investment is done correctly.
August 28, 2006, 10:29 am : The Best Kept Secrets to Reducing Your Debt
Filed Under: Debt ConsolidationDiscussion: C[0]mments
This is a process that cannot be completed in a short amount of time; sometimes it will take years to become debt free. However if you take the time to follow this basic tips it will turn up to be a process that won’t affect your daily life.
Taking control over spending
Eliminating debt requires a bit of sacrifice, you need to understand that you have to take control over your spending. The first step would be to reduce inefficient expenditure, avoid buying things you won’t need. In fact, don’t buy anything other than what is strictly necessary. Tag your needs with labels such as “urgent”, “highly necessary”, “slightly necessary”, “unnecessary”, etc. Once you’ve established and committed to a strict budget you’ll be able to save money for leisure but till then avoid careless expenditure.
Budgeting
Design a budget where you will state your income and your spending, don’t conceal anything. Don’t forget to add any non regular expenses as your overall spending is not only made of everyday expenses. If you prepare it consciously you’ll see that you have expenses on a daily basis, weekly, monthly, bimonthly, yearly, twice a year, etc. You must be very careful in the process of making a budget since it will determine how much money you’ll be able to destine to eliminating debt.
Debt Settlement Agencies
You can contact a debt settlement agency. This agencies are specialized in providing assistance to those in debt and are known to reduce peoples debt up to 70% in some cases, don’t expect such a high reduction however since it is only achieved in special circumstances. But you can expect a consistent reduction on the amount of interests that you pay and sometimes a modification in the length of the outstanding loans. Getting a cut on the principal of loans and credit card debts can sometimes be achieved but is more unlikely. Ironically there are more chances to get a higher reduction when your accumulated debt is out of control and your ability to repay is poorer.
August 27, 2006, 9:52 pm : Home Staging Can Help You Sell Your House Quickly
Filed Under: Real EstateDiscussion: C[1]mments
Real estate prices have hit record levels in the United States during the last five years. In some parts of the country, prices have tripled. For those selling houses in the first half of the decade, business was very good, indeed. Rising interest rates and sticker shock have slowed the market down, however. In some parts of the country that used to be hot, sales have slowed to a crawl. In those markets, people who want to sell houses are now waiting months when homes used to sell in days or weeks. What can a homeowner who wishes to sell as quickly as possible do to accelerate the process?
A relatively new service called home staging may be the answer. Staging a home essentially means setting it up so that it makes its best possible presentation to the market. Professional home stagers will, for a fee, come to your house, examine your property, and make recommendations as to what you might do in order to make the house as sale-friendly as possible. In some cases, they will simply recommend a coat of paint, a bit of landscaping, or some new drapes. In other cases, more dramatic help may be needed.
It is often difficult to sell a home that has been vacant for a while. Buyers have a hard time imagining what their belongings might look like in an empty house. A good staging company will have in their inventory a selection of different types of furniture, lamps, decorative accessories and more so that a vacant home can look like a showcase. A fully and tastefully decorated home is much easier to sell than a vacant one.
The service isn’t necessarily inexpensive. Homeowners might expect to pay several hundred dollars for an initial consultation as well as a fee of several times that amount for the first month of a fully furnished, professionally decorated home. Rates for subsequent months tend to be lower than for the initial month, but many homes that have been professionally staged aren’t on the market much longer than a month. In fact, studies have shown that staged homes often sell in half of the time of other comparable properties.
Having your home professionally decorated in order to sell it isn’t something that everyone needs to do. But in markets with slowing real estate sales, staging a home may be the difference between selling the house this week and selling it three months from now. For many sellers, the investment is more than worthwhile.
August 27, 2006, 10:33 am : How to Use Credit Cards for Debt Consolidation
Filed Under: Debt ConsolidationDiscussion: C[0]mments
Do you have a few cards that you are constantly paying super high interest rates on? Do you have a few credit cards that you can only pay the minimum amount each month? If you answered yes to either of these questions, using credit cards for debt consolidation may be helpful for you.
What is credit card debt consolidation? Simple, credit card debt consolidation is when you use one credit card with a large limit to pay off your other credit cards with either higher interest rates or high fees. This strategy is not for everyone; however for some people it can be very helpful.
Two things to keep in mind, the credit card that you do the consolidating with must be a lower interest rate and have lower fees than the other cards, or else, you are not fixing the problem. If you have three store cards that you owe $500 each for a total of $1500 and you are paying an average of 21% interest rate per year, you can consolidate all three credit cards with a new card having a limit of $1500 and only a 9% interest rate per year. You can see how you can easily save a few hundred dollars per year just by consolidating.
The only way the consolidation will truly work, is if use this tool to get rid of your debt and not a way to rationalize to yourself to spend more money because you have zero balances on your other cards. Before you consolidate your credit cards, make sure you can transfer balances to your new card and makes sure these balance transfers do not cost any money or result in higher interest rate fees, or else it might not be worth it. However for an effective strategy to limit your credit card debt, look into consolidating your credit cards.