Why should you become a property financier? To answer that I need to ask you another question. Why do you invest in property?You probably have the following three reasons.1. It gives you chance to make outstanding profit potential through using your bank’s money2. It provides you with a steady monthly cash flow; and3. Provided you buy sensibly it is a safe investment!!!However you also know what are the absolutely worst things are about being a landlord.1 You have to put up with annoying tenants and pay the costs for all repairs to the property after they have trashed it!! There are also other large costs involved in owning property.2. You can tie up a lot of cash – as much as 20% of the value of the property.3. Property cycles can last as long as 20 years. We are now in the middle of a housing bust. If you have bought or are thinking about buying now you might not see much cash from your property until you sell in the next 10-15 years.In short, although I love property, it also has its headaches. This is why I love being a property financier!! It gives you the freedom of investing in the safe property asset class and provides you with fantastic monthly cash flow. So what is property financier. In short it is a person, or group of people (commonly called a ‘syndicate’) who lend money to property developers in order for the developer to use the funds to build a new property or to improve an existing property to significantly enhance its value.For example the property developer finds a site to build a house on. He knows he can buy the land and build the house for $200,000 and sell it for $350,000. The developer takes his plan to the bank who like it and provide him with 80% of the funding for the project (just like Buy to Let mortgages, a bank will not provide 100% funding) on the basis that the bank will take a first charge over the property. The developer therefore needs to obtain a further $40,000 in funding.This is where you come in.You look at the developer, the site, the plans and the area and think that this house will have no trouble for selling at $350,000. You agree to lend the Developer (or lend part of the money in a syndicate) the $40,000 on the basis that you receive a second charge over the property after the bank (this basically means that if the property is sold, the bank is entitled to its money first and then you are entitled second). Because you are taking a second charge, your risk is greater and therefore you are entitled to charge a high rate of interest on your $40,000.This is the juicy part!!!Typically, as a private investor you will be looking to receive 2-4% per month on your money. 4% on $40,000 is a whopping $1,600 per month you will receive in your pocket, every month for the life of the loan. Now that is what I call explosive cash flow!!! And what have you done – nothing other than carefully check out the investment and the developer. Of course you don’t get to keep the property at the end of the project, but you do get your money back plus a dynamite return and you did not experience one property related hassle!!! Your investment is also fairly safe in that you will have carried out your due diligence on the project AND you have the second charge.
How to Become a Property Financier
Discount Homeowners Insurance – Where to Get It
Homeowner’s insurance protects you against financial loss if your home or property is damaged by theft, fire, lightning, smoke, or other disasters. Thanks to the internet, you can easily find discount homeowners insurance that meets your needs. Here’s how …Complete Your InformationYou can get quotes for discount homeowners insurance by visiting an insurance comparison site. On the site you’ll complete a simple questionnaire with information about your home and your insurance needs, including …* How much coverage you want for your home and for your home’s contents. It may be helpful for you to make a detailed inventory of your home’s contents to figure out what coverage amounts you need. (You’ll also need this inventory if you ever need to make a claim.)* The deductible you want to apply to your homeowners insurance.* The square footage of your home and the year it was built.* The number of miles from your home to the nearest fire station and the number of feet to the nearest hydrant.* Any discounts for which you might be eligible. For example, many discount homeowners insurance companies give discounts to non-smoking customers, as well as for security features such as deadbolts and smoke detectors.Get Answers to Your QuestionsThe best insurance comparison sites will also have a chat feature available. With the chat feature, you can get answers to all your homeowners insurance questions from insurance professionals. (See link below.)Get Your Discount Homeowners Insurance QuotesOnce you complete the questionnaire, you’ll quickly receive discount homeowners insurance quotes from multiple A-rated insurance companies.What if the Quote is too High?If the quote for your discount homeowners insurance is more than you can afford, follow these tips to try to get it lower:* Lower your coverage limits and raise your deductibles. Note that your mortgage company probably requires a specific minimum coverage.* See if you can qualify for more discounts. Perhaps you can install more smoke detectors, burglar alarms, or buy fire extinguishers.* If your credit is poor, work on improving it.
Airline Travel Tips For Traveling With Children – The Most Practical Tips Part 3
Planning to travel with children? Getting stressed out trying to prepare for your trip with your kids? Here are some more handy airline travel tips.1.) Make the trip excitingGenerate some hype to your kids of your upcoming trip with them. This is to build some anticipation to make the trip as exciting as possible for your kids. Especially for young kids who haven’t flown before, they may be nervous, therefore by making it exciting they may tend to forget their fears.2.) Separate your kids if they quarrel a lot with each otherSeparate any siblings that tend to quarrel with each other a lot. One simple way is to just sit in between them. This will help to ensure everyone has a peaceful journey, including the other passengers around you. However if your kids tend to play well with each other, then definitely let them sit together so that the entire journey will be as entertaining as possible for them.3.) Ensure your kids drink lots of waterInside the airplane tends to be very dry, therefore your kids can get dehydrated very quickly. So make sure your child drinks plenty of water, and avoid any sweetened carbonated drinks, such as cola, as this will make it worse for your kid.4.) Bring extra clothing on board the planeThe plane can get chilly at times. Therefore rather than having your extra clothing stuck in your check in luggage, bring some extra jackets or sweaters on board the plane in your carryon luggage. This will come in very handy in the event your child feels cold.5.) Keep your kids close to you at all timesPlaces such as the airport can get very crowded sometimes. Therefore keep your kids close to you at all times to ensure they do not get lost in the crowd. It is the worst possible feeling to lose sight of your child, even if it was only for a few seconds!6.) Bring your kids to the toilet before boarding the planeYou will be surprised how many last minute calls from your kids to go to the washroom right when the plane is about to take off! Therefore to lower the chances and prevent this from happening, be sure to bring your kids to the toilet right before boarding the plane. This will help ensure you will have a smooth take off.Flying with children can be very hectic. However follow some of these effect airline travel tips above, and it will help to keep things under control when you travel with your kids.