Also known as seller financing, owner financing is growing in popularity in today’s economy. With the credit markets slowing down and people finding it harder and harder to borrow, owner financing is looking better and better as an alternative to traditional financing. Owner financing is when the seller of the property basically agrees to take payments rather than a lump sum. Here are a few things that need to happen in order for the owner to be able to finance your deal:1. The owner needs to have considerable equity in the property. The owner will usually have their own mortgage they will need to pay back in full when they sell the property to you. If they don’t have a whole lot of equity, they usually can’t offer to finance a whole lot of the deal. The best scenario is an older owner that is close to retirement. Odds are that they have a good amount of equity or even own the property free and clear. They are looking to retire and just want a steady cash flow rather than a lump sum when they sell the place.2. The owner should have a desire to accept owner financing. If the seller wants to roll the funds over into another property or needs the lump sum of cash for one reason or another, they probably won’t want to take on very much seller financing.3. The terms need to be right for both parties. The interest rate, duration and repayment structure need to be acceptable for both parties. This usually requires a good deal of negotiation.If you have all your ducks in a row and seller financing seems like it might be a possibility, here are some of the benefits to consider if you are thinking about locking in owner financing:1. You might not have to get traditional financing. This depends on how much the owner is willing to finance. If they are willing to finance just a little bit, this might help you lower your down payment or help you qualify for traditional financing, but won’t completely eliminate traditional financing unless you pay the remaining amount due as a down payment.2. You could get more flexible terms than you would on a standard mortgage. You have the power of negotiating so that both the buyer and the seller walk away with a fair deal. You typically can’t do this with a traditional bank.3. The seller is still somewhat on the hook for the property. You know that you aren’t getting totally ripped off, because the seller still hasn’t received all their money. There is a possibility that you could pay a little bit of a premium for the deal. If they end up totally screwing you, and the property completely falls apart in a few years and you let it fall into foreclosure, the seller only stands to get the property back. The seller isn’t going to want to lend to you using a bum property as collateral.If owner financing seems like it would work for you, there is no reason to start looking for properties for sale with owner financing. Even if a property isn’t advertised as offering owner financing, you may be able to talk with any seller and see if they are willing to negotiate on terms.
Top 10 Home Based Business Ideas
Congratulations in the first place for searching for home based business idea. Like you, I have tried numerous opportunities based on ads, sending off credit card to get the insight from some millionaires, taking paid surveys, acted quickly to receive a 50% discount. I spent thousands of hours and dollars to explore a quick rich scheme to find the best home based business idea.Out of these exercises, I learnt to do the proper due diligence and I learnt to pick the ones that worked. And I am more than happy to share the top ten home based business ideas with you.Home Based Business Idea 1: Converting Your Hobbies into a Business
There are basically only two types of things in the world, one type is things you like to do, and the other is things you don’t like to do. Imagine how great life would be if you had a chance to live all your day by only doing the things you love to do.
I would call it living! Athletes call it Zone, Artists call it Flow.
You can live the life of your dreams when you convert those dreams into hobbies. Nothing else is more value than honesty, knowledge and true enthusiasm. Whatever your hobby is, you could make a great living out of it by turning it into a home based business.
What Do You Need?
Passion! You need to identify what your true passion is!
Ranking 5/5Home Based Business Idea 2: eBay and Auction Selling
For just one moment, remember those days. No internet, no e bay. You put up a garage sale sign, and are awake from 5 in the morning, trying to sell the old lawn mower.
Now come back to current time. If you have the same lawnmower, you can get it listed into e bay, some one from 500 miles away from your home has just bought it for $400.00
Do you see the point? Could you turn it into a profitable business? I made six figure incomes by importing goods from drop shippers, and selling them through online local auction called trade me. Time Spent may be 1 hour a day or less.
What Do You Need?
How to add, subtract, email and know how to list in online auctions.
Ranking 5/5Home Based Business Idea 3: Web designing
What on earth do you think made me learn web design at an age of 27, being a civil engineer?
Because I knew for what I am trying to achieve, I will need a website. I tried to get quotes from some local companies; sexy sales reps came to meet me and present quotations from 5 to 10k.
I knew there must be some other ways. I put an ad in the local student club, got it done at half the price and the designer showed me how easy it was. I downloaded demo version of Dream weaver and created my next website myself.
If you can design quality websites, I recommend right now quit your day job and start your own web design business.
What Do You Need?
A good PC, web design software (there are plenty of them available on the net even for free) and a bit of marketing
Ranking 5/5Home Based Business Idea 4: Desktop Publishing
When I first started up my physical business, I knew the value to desktop publishers. How much I wished I could be one. Unfortunately my brain does not work that way! I called up so many people; I required logo, cards and brochure to be designed, and explored so many places, and they were so expensive!
If your brain works in this way, you have the gift to put together brochure and newsletters, you could offer your own desktop publishing service to other small businesses.
What Do You Need?
Although highly profitable, it is not for everyone. You need to be good in designing and efficient in using relevant software
Ranking 4/5Home Based Business Idea 5: Business Coaching
There are two ways to learn, learning the hard way, by doing the mistakes yourself, and secondly learning the wise way, by learning from others mistakes.
Most of the successful small business owners are smart people and they prefer learning by looking at others mistakes. Also doing a silly mistake may become fatal to the small business owners. That’s why business coaching and mentoring is becoming increasingly popular everyday.
If you have relevant background or experience, by all means go ahead and start your own coaching business. If not, there is plenty of great business coaching franchises available for you.
What Do You Need?
An open mind, ability to feel others problem as your problem, leadership skills, knowledge and industry experience
Ranking 4/5Home Based Business Idea 6: Child Care Service
Are you a big fan of Daddies day care movie? If you look at your local business directory, you will find that the hot businesses that get sold within two days of listing at a top price are child care businesses.
And the trend will be going up, up and up. As time goes by, parents will be becoming busier, and more willing to spend a fair chunk of their income for a good childcare service.
What Do You Need?
You can deceive the whole world, but you can not deceive a child mind. I really love children and wish I had the childhood connection with super intelligence back. You must be truly caring, and love children, I repeat you must love children
Ranking 4/5Home Based Business Idea 7: Virtual Assistant Opportunity
Again, thanks to the internet and home based business. How much did a small business owner wished, if I could have a shadow secretary, filtering my email, drafting my letters, looking at the accounts, paying the bills and reminding me of my appointments? It’s a shame I can’t afford one!
Now it’s a different scenario. Virtual assistant opportunities in providing the above mentioned solutions are becoming popular and you could easily ride this tide. You could even employ some staff to help you out.
What Do You Need?
Some secretary skills, efficiency in using computers.
Ranking 4/5Home Based Business Idea 8: Free Lance Photography
On my graduation day, for the first time in my life I used the service of a professional photographer. I was amazed to see his luxurious studio, his home theatre and audio system, and his collection of cameras and classical music (that is my one weakness).
Did you ever try to purchase a picture of a photographer for your article or college wall journal? Was it an easy task? Definitely not cheap!
If you like photography, you can combine it with internet to create a very successful home based business. You can offer your services as a free lancer to small and big companies, news papers, magazines. You could offer your service to weddings, college functions and where not?
What Do You Need?
A good camera, a good PC, a good collection of lenses and mindset of a good photographer
Ranking 5/5Home Based Business Idea 9: Writing E Books and Articles
Napoleon Hill, when he wrote his book, got paid $1 a month from the president of USA. But when his book was published and sold, he earned more than a few millions from the sale during the first year.
Publishing a book is another mammoth task, almost a nightmare for a novice writer.
With e-books, you can eliminate this nightmare and enjoy a part of this great success by brilliant authors.
What Do You Need?
A bit of creativity, project planning and management skills and persistence
Ranking: 5/5Home Based Business Idea 10: Interior Designer
No matter when you are moving to a new home, or re-decorating your home, moving to new office, how much do you wish for a consultation from an interior designer? Do you believe in Fang Shui?
If you are good in colour, material selection and arrangement you should go for it. If you do not have a relevant qualification, do not worry, you can just get one in 3 to 4 months from lots of organizations. Do well in whatever you are doing, and your phone won’t stop ringing.
What Do You Need?
A creative mind, passion for space and making things look better.
Ranking: 5/5
Alternative Financing Can Help Offset Cash Flow Challenges Presented By Slow-Paying Customers
The statistics may say that the U.S. economy is out of recession, but many small and mid-sized business owners will tell you that they’re not seeing a particularly robust recovery, at least not yet.There are various reasons for the slow pace of recovery among small businesses, but one is becoming increasingly apparent: A lack of cash flow caused by longer payment terms instituted by their vendors. Dealing with slow-paying customers is nothing new for many small businesses, but the problem is exacerbated in today’s sluggish economy and tight credit environment.This is ironic given the fact that many big businesses have accumulated large cash reserves over the past couple of years by increasing their efficiencies and lowering their costs. In fact, several high-profile large corporations have announced recently that they are extending their payment terms to as long as four months, including Dell Computer, Cisco and AB InBev.So here’s the picture: Many large corporations are sitting on huge piles of cash and, thus, are more capable of paying their vendors promptly than ever before. But instead, they’re stretching out their payment terms even farther. Meanwhile, many small businesses are struggling to stay afloat, much less grow, as they try to plug cash flow gaps while waiting for payments from their large customers.How Alternative Financing Can HelpTo help them cope with these kinds of cash flow challenges, more small and mid-sized businesses are turning to alternative financing vehicles. These are creative financing solutions for companies that don’t qualify for traditional bank loans, but need a financial boost to help manage their cash flow cycle.Start-up businesses, companies experiencing rapid growth, and those with financial ratios that don’t meet a bank’s requirements are often especially good candidates for alternative financing, which usually takes one of three different forms:Factoring: With factoring, businesses sell their outstanding accounts receivable to a commercial finance company (or factor) at a discount, usually between 1.5 and 5.5 percent, which becomes responsible for managing and collecting the receivable. The business usually receives from 70-90 percent of the value of the receivable when selling it to the factor, and the balance (less the discount, which represents the factor’s fee) when the factor collects the receivable.There are two main types of factoring: full-service and spot factoring. With full-service factoring, the company sells all of its receivables to the factor, which performs many of the services of a credit manager, including credit checks, credit report analysis, and invoice and payment mailing and documentation.With spot factoring, the business sells select invoices to the factor on a case-by-case basis, without any volume commitments. Since it requires more extensive controls, spot factoring tends to be more expensive than full-service factoring. Full recourse, non-recourse, notification and non-notification are other factoring variables.Accounts Receivable (A/R) Financing: A/R financing is more similar to a bank loan than factoring is. Here, a business submits all of its invoices to the commercial finance company, which establishes a borrowing base against which the company can borrow money. The qualified receivables serve as collateral for the loan.The borrowing base is usually 70-90 percent of the value of the qualified receivables. To be qualified, a receivable must be less than 90 days old and the underlying business must be deemed creditworthy by the finance company, among other criteria. The finance company will charge a collateral management fee (usually 1 to 2 percent of the outstanding amount) and assess interest on the amount of money borrowed.Asset-Based Lending: This is similar to A/R financing except that the loan is secured by business assets other than A/R, such as equipment, real estate and inventory. Unlike factoring, the business manages and collects its own receivables, submitting a monthly aging report to the finance company. Interest is charged on the amount of money borrowed and certain fees are also assessed by the finance company.Overcoming Fears and ObjectionsSome businesses shy away from alternative financing vehicles, due either to a lack of knowledge or understanding of them or because they believe such financing vehicles are too expensive.However, alternative financing is not hard to understand-an experienced alternative lender can clearly explain how these techniques work and the pros and cons they may offer your company. As for cost, it’s really a matter of perspective: You have to ask whether alternative financing is too expensive compared to the alternatives?If you’re in danger of running out of cash while you wait to get paid by large customers and you don’t qualify for a bank loan or line of credit, then the alternative could be bankruptcy. So while factoring does tend to be more expensive than bank financing, if this financing isn’t an option for you, then you must compare the cost to possibly going out of business.Most business failures occur because the company lacked working capital, not because it didn’t have a good product or service. Unfortunately, this problem is currently magnified for many small businesses dealing with ever-longer payment terms from their large customers. Alternative financing is one possible solution to this common cash flow problem.
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.