The Zen Investor – Knowledge is power!

“An investment in knowledge pays the best interest.” -Benjamin Franklin

Everyone talks about due diligence, but how many investors really know what it means to carry out extensive due diligence on a potential investment, let alone carry it out?

Due diligence is the process of examining all aspects of a transaction.

In the case of a real estate transaction, it involves a process of learning about all aspects of the property you plan to purchase. It also means doing due diligence on yourself – knowing every aspect of your personal investment goals!

Although each investor will have different requirements on their checklist, the bottom line remains the same… Knowledge is Power! The more you can find out about what you’re buying and the clearer you can see how investing will bring you closer to your own financial freedom, the more successful your business will be.

When you’re considering your next real estate investment, ask yourself the following questions. If you don’t know the answers, start asking!

* Does the property meet your desired cash flow goals?

* Do you have an exit strategy in place? Resell, refinance, buy and keep?

* How long do you want to hold this property (taking into account your exit strategy)?

* Does the location show signs of economic growth? (Are there new developments, projects, etc. that will contribute to future appreciation?)

* Is the price within market value? (Have you researched the price of similar properties recently sold within the same area?)

* What are the conditions of the purchase and/or lease contract?

* Have you verified the age of the property, thus determining any possible improvements or repairs needed now or in the near future (roof/electrical/plumbing/cosmetics)?

* Have you taken a look at all the taxes involved? What about utility costs and zoning restrictions?

* Have you researched title/insurance status?

* Is the current rental income above or below market value?

* Are all legal agreements in order (signed by actual tenants, no hidden clauses, etc.)?

* Is the rental agreement transferable to a new owner?

* What are the rental income deposit agreements?

This is just an initial list… I hope you duplicate it, according to your own criteria.

Remember, the name of the game is: Don’t be afraid to ask questions until you get clear answers! Please read all the documents carefully and last but not least (listen to the alarm bells on this one!) Do not give any deposit to the developer if it is not going to a third party trust account, lawyer or notary!

If everything meets your requirements, the property should produce a great stream of passive income, and your new acquisition will be one you’ll enjoy for many years to come. In the end, real estate investing can pay off like no other investment. But you should make your decisions based on specific due diligence facts, not emotions.

Make your investment an asset, not a liability; make it work for you by gaining more knowledge and therefore power over your financial destiny!

Build your dream home with a construction loan

With the current economic trend driving home prices down, many assume that buying a used home is worth every dollar they spend. Others turn to apartment loans, thinking it’s like killing two birds with one stone: owning your own home and earning some extra money through rental income. While these are all great strategies, some families choose to take out a construction loan and build their dream home.

Although it may sound difficult, building your dream home is possible, as long as you understand how a construction loan works. Currently, the construction-to-permanent loan remains the most popular option. This loan covers the entire lot and construction coverage, and even converts to a mortgage once your dream home is established. Once you’ve established the down payment, all you have to do is make interest-only payments at a fixed interest rate. And once construction is complete, the loan will convert to a 15- or 30-year fixed-rate mortgage.

Certain banks will offer interest reserve accounts that allow you to make interest-free payments throughout the construction process. The bank will calculate the amount of the interest-only payments and add the total amount to the overall loan. The funds will be deposited into a different account, which makes it ideal if you currently have pre-existing rent or mortgage payments on your plate. The licensed contractor you have hired will establish a “release schedule” detailing the monthly construction schedule with the necessary funds in tow.

Once you’ve determined that one of these new home construction loans suits your tastes, there are five quick steps to get you on the right track:

1. Know your limits of affordability

You must determine how much of the total loan you can afford using an online loan calculator. Remember that you need at least 20% down payment to avoid PMI payments.

2. Find lenders

Compare current loan rates from online lenders and local banks. Ask a building contractor accredited by previous lenders they’ve worked with and get their contact information.

3. Get pre-approved

Read the pre-approval process of each selected bank. Describe closing costs and estimated tax rates. Ask for a copy of a prior approval letter.

4. Find a contractor

Choose a reputable contractor who is licensed, insured, and experienced in building new homes. Calculate a budget plan, construction costs and architectural drawings to get your house project off the ground.

5. Select the Terrain

Hire a reputable real estate agent to identify a suitable piece of land within your budget. Check all possible building permits from your local municipality and make sure a water and septic system is available.

Once you have all of these five steps pinned down, you are ready to build your dream home!

Buying a house from parents or grandparents: can I get a mortgage loan for a favorable purchase?

Buy Favorable: What is it?

A fair buy is a banking term for what they call a transaction where a property is sold “off market” and below “market value.” Off-market means there is no real estate agent involved, so the buyer and seller know each other or it is a private sale. Low market value refers to the situation where the seller is not selling the home for the property’s value and is therefore, in essence, giving away the buyer’s equity.

The most common example is when mom and dad are retiring or looking to move or downsize and want to sell the family home. Sometimes children decide that they would like to buy the property from their parents. Sometimes parents will sell property to children for less than what they could sell on the open market to help support their children or keep the house in the family.

This is a favorable purchase and different Australian lenders have different policies on this.

How do banks see a favorable purchase when approving a mortgage loan?

It is important to distinguish a favorable purchase from a sale where the buyer believes they are getting a great deal and purchasing the property at well below market value. Banks will always lend and base their LVR and deposit requirements on the sales contract price or appraisal, whichever is lower, unless an exception applies. If, for example, you purchase a property for $500,000 and the valuation was greater than $550,000, the bank will base your LVR and deposit requirements on the lower of the two, in this case the purchase price of $500,000. However, if the valuation is less than the purchase price, banks will base it on the lower of the two valuations.

Simply saying you have a great offer is not enough for the bank to make an exception to the rule and base your deposit and LVR on a higher valuation. There must be a compelling reason why the seller is selling below market value: going bankrupt or defunct estate is not a compelling reason since, in theory, what you are paying it is the market value, since that is what the market has considered. the value of the property on that given day.

The main reason the bank would make an exception is when it comes to a favorable purchase. If the parents sell the children to them, the banks understand that there is a reason, essentially love and affection, why the parents sell below market value. The result is that many lenders will base their LVR and deposit requirements on the actual valuation and not the purchase price.

So what does this mean for me and how much deposit will I need?

When buying a house in Australia and taking out a mortgage loan, you need a deposit. Generally, the absolute minimum deposit you would require would be 5% and the bank would lend you the other 95% of the purchase price.

In the event of a favorable purchase, some banks will see the value of the donation as your deposit. For example, if you were buying a property from your parents for $400,000 that was valued at $500,000, some banks will see the $100,000 of donated capital there as your deposit, and therefore you can borrow the entire $400,000 without having to make any deposit of your own. .

Each bank has its own policy on this and some only lend against the actual purchase price, meaning they can only lend 95% against the purchase price of $400,000 or they will only lend up to a maximum of 80% of the valuation. But there are lenders that lend 100% of the purchase price plus costs up to 90% of the appraisal without the customer having to put up their own cash.

Here is another example to illustrate how different banking policies work:

Suppose David was going to buy his grandmother’s property so that his grandmother could move into a retirement home. The property was appraised at $300,000 and his grandmother needed $270,000 to make sure she had enough to post a rooming bond, etc. So the purchase price was $270,000 below market value and is between related parties. Banks will consider this a favorable buy.

The bank will base the LVR/Deposit on the purchase price of $270,000. This particular lender required a 10% deposit which is $30,000. $300,000 minus $30,000 leaves a loan amount of $270,000, which means David could borrow 100% of the purchase price and only have to pay stamp duty and legal costs.

However, another lender will only lend up to 80% LVR. 80% over $300,000 is $240,000. If David went to this lender, he would need a 20% deposit, which is $60,000. There is $30,000 in capital available, and therefore David would need to contribute $30,000 of his own cash plus stamp duty.

Each lender has its own policy on buyout-friendly mortgage loans, so it is recommended that you hire a mortgage broker who has experience with buyout-friendly mortgages.

How I started investing in Fixer Uppers

My wife and I took the leap into a more rewarding future in 2002, when we bought my first home to fix up, fixed it up, and rented it out.

What motivated us to start home repair was the aftermath of the 9/11 attacks. Funds for environmental projects, like the ones I worked on, were being redirected to military activities, and the future of my work seemed shaky.

Respond to a newspaper ad

Before that, I had been reading about real estate investing and when my wife and I saw a newspaper ad for a property under repair in a relatively nice neighborhood, we made an offer and ended up buying it. We didn’t have much knowledge of what we had done, but we had a lot of enthusiasm. We learned as we went.


In the home repair area we became jacks of all trades, learning to repair just about anything that was in a home repair shop. But, in our top niche business of fixes, we were experts at one trade. We stay focused on what we do best: buy, repair and rent. And, if you do something often enough, you get pretty good at it.

We worked like dogs, slept like logs, and ate like pigs! But, now we have lowered the grind and we are making a lot of money with less effort in our top fix business.

Investing in repairs is a great way to start a business in your spare time. It can allow you to gradually increase financial security and eventually switch to a career where you control your destiny.

Is now a bad time to invest?

When I bought my first house, many thought I was crazy. After 9/11 there was great uncertainty about what would happen next. Would the country go to war? Would I lose my job? Would the economy go down the toilet?

Today, due to the possibility of a recession, people are making the same arguments. But remember, you don’t make money buying houses when the economy is strong. The prices are too high then. You make money when the economy is weak and home prices are low and marketable.

The Smart Woman’s Guide to Retirement Planning by Mary Hunt – Personal Finance Book Review

Money expert Mary Hunt returns with a new book, “The Smart Woman’s Guide to Retirement Planning,” to help women prosper financially in the New Year and beyond. While geared toward women, men can also benefit from Hunt’s money savvy, honed after she racked up more than $100,000 in debt earlier in her life; and she took 13 years to erase.

“Have you had a retirement wake-up call?” Hunt asks at the beginning of the book. “I promise you they intensify with age.”

Hunt publishes a 2012 survey that found 92 percent of women of all ages don’t feel educated enough to meet their retirement savings goals.

Saving for retirement takes determination and hard work; and Hunt believes that women can be successful. “If we lack confidence, it’s because we lack knowledge and desire, certainly not because we lack intelligence and skill,” says Hunt.

Time trumps all factors when saving for retirement. The earlier you start, the better. But, Hunt emphasizes, regardless of where you are in life, you need to start now. “It’s too late if you don’t start now. No matter where you are or how little you think you have, start now. Today. Start. Save.” Take small steps to produce long-term results.

Characteristics of Hunt’s teachings:

Retirement Savings Plan. Hunt promotes a six-step retirement savings plan, which includes:

Create an emergency fund. Also known as the Contingency Fund. Save money for life’s unexpected expenses (car repairs, home repairs, etc.) This money should be liquid (easily accessible within two or three days), safe from erosion (build in a free savings account of risk) and capable of financing at least six months of living expenses in the event of job loss or another event of compromised income.

Get out of debt. Eliminate all unsecured debt (credit card debt, student loans, personal loans). Hunt says they’re like cancer that steals your future. Incorporate Hunt’s Rapid Debt Repayment Plan (RDRP) to abolish debt.

Own your home entirely. Buy half of the house from your mortgage approval. Make monthly mortgage payments equal to the full amount approved to own your residence in half the time. Fiercely protect your home equity (the difference between your home’s market value and the mortgage balance). Avoid taking out a home equity loan or line of credit, which resets the clock on a mortgage to thirty years.

Consider hiring a financial planner once debt has been eradicated or managed, a respectable amount of savings has been accumulated, retirement funds are growing, or an IRA inheritance or other cash windfall appears.

Hunt describes three types of financial planners:

  1. Commission based. This planner does not charge for time, but for selling investment products. He or she earns commissions on those sales.
  2. Based on fees. This planner works on a flat fee or charges by the hour. Fees are set in advance and the planner is a Registered Investment Adviser (RIA). They are required by law to adhere to fiduciary standards, which makes them responsible for putting their clients’ best interests first.
  3. combined This planner is a combination of the first two. Clients pay a fee, flat or hourly, and the planner earns commissions when the client purchases financial products based on the planner’s recommendations.

Choose a financial planner with at least five years of experience, Hunt suggests. Make sure they are acting in your best interest and can explain financial concepts at your level. Beware of any planner who claims to be able to beat the market. Ultimately, collaborate with a planner; however, make your own investment decisions. Hunt stresses that “an adviser’s or planner’s primary allegiance will be to the hand that feeds him. That is just human nature.”

Hunt educates in a conversational tone, avoiding jargon, graphics, and mind-numbing data, making for an engaging read. A Christian, she teaches faith-based money management. Hunt believes that God is the source of all of life’s blessings, including money. An employer, spouse, investments, trust account, parents, or any other entity are the channels through which the money flows, but not the final source. He is making reasonable preparations for retirement without obsession; and trust God for the outcome.

While having retirement savings is important, Hunt reminds readers that there is more to life than money. Health, spirituality, nurturing relationships, staying active, continuous learning, and volunteering are some of the attributes of a well-balanced existence.

Decade-by-Decade Financial Planning, The Five Tools You Need for a Money Management System, Investing Basics (Automate All Payments to Avoid Skipping Monthly Contributions (Out of Sight, Out of Mind), Reverse Mortgages, and Paying Parents for your child’s college education (not required), are other building/saving money topics covered in the book.

Anyone who commits to improving their financial fitness in 2014 will reap life’s treasures beyond the limits of cash by inheriting Mary Hunt’s money practices.

To establish your financial baseline and/or monitor your progress, order your free credit reports from the Big Three credit companies: Equifax, Experian, TransUnion, visit: Annual Credit Report.

Shared office space: what is it?

In general terms, the term “shared office space” refers to a furnished and fully equipped office space that is ready for a quick installation for a business person who does not want to work at home or in a branch office. They are also called executive suites and business centers. The office will provide internet and telephone services, and mail services. When you use a rental location, you can provide a business person with a professional facility at a lower monthly rent than traditional office rentals.

Many times when such an office is rented, mail services, receptionist, business machines such as fax and copiers, and office furniture are included. There are even some that will offer services such as conference room accessibility and publishing or delivery services, in addition to other services. Leases are typically six to twelve months. Some may even offer a three-month rental agreement. Shared office space could also be when you lease a small space from a business or company that has more office space than you need. This is comparable to subletting and with this type of shared office, the company or individual could rent a group of offices within another company’s larger space or just a desk space. With this arrangement, you would share kitchen areas, conference rooms, and other facilities within the company or business.

Telecommuters can use an office type when they enter the office to get some work done. During the time they are there to work, the computer, desk and phone are theirs, but at other times these are all used by others in the office or company. This is a good situation for a free type of business. For example, when a healthcare professional from a different field shares space with another medical professional, one of the medical professionals will work that many days of the week and the other the other days. With this type of arrangement, the one who rents the shared office space for the days that the other medical professional is not working there, will not benefit from any services such as secretarial services. This type of shared office space can work for many different professional services.

Some of the advantages of shared office space can include quick occupancy, less need for support staff like secretaries, and all-inclusive monthly costs. These are the kind of arrangements that are especially attractive to start-ups and small business owners. With shared office space there are no big expenses for furniture and equipment.

How to Get Rid of Hard Water Stains in Your Aquarium

A beautiful fish tank with crystal clear water and some plants, as well as different types of decorative accessories, add extra beauty to any interior, whether it is at home, a hotel lobby, a restaurant or even in the office.

Finding the right type of fish tank can be much easier than keeping it in good condition. Paying attention to proper care and maintenance are two key points. You need to look for the right type of fish tank water treatment items and products.

Why should you look for a fish tank water treatment?

This type of treatment solutions is provided to have clean water and constant temperature. Using the right range of equipment is important to measure the water temperature that is definitely required. Depending on your requirements, you can get different types of water treatment and a variety of products, or you can choose according to your requirements. All these products are original and have a manufacturer’s warranty.

To meet your requirement for the best fish tank water treatment range or to get anything else like tissue culture aquarium plants, all you have to do is search for the right manufacturer and supplier that is convenient for you, review the details and make contact. Searching online will surely improve your experience and provide you with the right solutions.

Tissue culture aquarium plants and the latest range of fish tank water treatment are available in a variety of types and from major brands. When it comes to choosing the best range of such treatment solutions, you will find that the Beena Aquarium name comes out on top. A team of dedicated professionals have been working here, who listen to your requirements and provide you with the right solutions in real time. Review the details and get the right solutions for all your needs.

ADA tissue culture plants are absolutely free of algae and 100% free of snails. ADA has a variety of tissue culture plants, which can be used for planted aquarium tank to make your aquarium tank a natural environment that fish loves too.

Beena Aquarium India brings ADA tissue culture plants at an affordable price and shipping all over India with guaranteed delivery of live plants if you have chosen Express Delivery.

Most of the Farm Aquarium plants come with snail or snail eggs, so it is very dangerous for your planted aquarium if you don’t look at this matter.

5 things to do before renting your house

Renting out your property may seem like an easy way to increase your passive income, but when you start the process, it can be more complicated than expected. Your house can stay on the market for months without a rental applicant because it is priced above fair market rent. A bad tenant may be late or outright refuse to pay rent; they have the potential to do thousands of dollars in property damage and may ignore your attempts to evict them from the property until authorities get involved.

So how can you avoid the headache of these common pitfalls associated with renting a property? Here are five things you should do before you rent your home to reduce the risk and stress of being a new homeowner.

1. Take pictures of the property

Property photographs are necessary for several reasons. They are an important part of online advertising; Otherwise, potential renters often overlook favorable rental listings without property pictures because they don’t want to have to wait for a home tour to discover that the property doesn’t have a layout or design that suits them. . These photos will also come in handy when your future tenants move in, as you can use them to measure any damage to the property that occurred during the rental period.

2. Assess fair market rent

While it may be tempting to charge higher rent to recoup money from any recent renovations you may have done or moving costs when you left the property, the best thing to do is do some market research: check with rental websites. , newspapers, local owners. , real estate agents and property management companies to determine the amount for which properties of similar location, size and condition are rented.

3. Create a concise and effective rental application

An effective rental application will not intimidate prospective tenants with its length, but it will be comprehensive enough that it can be used for tenant screening purposes. Any additional information you need from the tenant in the event they pass the screening can be included in the lease documents. A good app will have spaces for the following elements:

  • Name

  • Date of Birth

  • Social Security number

  • Phone number

  • Current/previous addresses (last 7 years, including owner names and contact information)

  • Current employer (name, address, date of hire, income, contact information)

  • Authorization to Obtain Consumer Report Statement

  • Tenant Signature

4. Consider using a property manager

Property managers typically charge a percentage of the monthly rent for their services, but in return, they will handle things like finding new tenants, creating/signing leases, collecting rent, and issuing legal notices (including evictions). Hiring a property manager reduces the profit you’ll make on your tenants’ rent payments, so you should carefully consider the cost-benefit of these services.

5. Find good tenants

Finding a decent tenant is easier said than done: many applicants may be nice, polite, and will seem like a good fit, but they will create an avalanche of problems for you. The best way to improve the quality of the tenants you are renting to is to conduct tenant background checks, that is, choosing tenants based on measurable rental and fiscal responsibility. Most landlords will charge rental applicants an application fee to cover the cost of tenant screening.

Wastewater Disposal BMP for a Mobile Dog Grooming Van Gray Water Tank

Waste wash water from mobile dog grooming is considered gray water and therefore needs to be managed properly to prevent groundwater contamination. There are soap and biological issues with this water and therefore this needs to be taken into account when designing an operating procedures manual and best BMP management practices for mobile dog groomers.

Why can’t I just drain my water into the gutter?

If you drain your wastewater down the sewer, you are breaking the law, as that water goes into a storm drain and into a river, stream, ocean, lake, or wildlife area. So you can’t do that, since you are most likely violating the NPDES permits for your city.

What I recommend is quite simple. Go to Wal-Mart or Sears/Kmart and buy a vacuum that sucks and pumps. They cost between $50.00 and $145.00 and this will help you with your own discharge to the sanitary sewer system.

You need to connect the vacuum to the drain plug in the wash water holding tank and then connect it to the other outlet of the vacuum using a hose and run it into the house to your toilet, turn on the vacuum, open the drain and let your el toilet floats down. This is a good BMP for your small dog grooming business.

You should also tell the local municipal police that this is what you are doing; he should be fine with that. I certainly hope this article was of interest and thought provoking. The goal is simple; to help you in your quest to be the best in 2007. Thank you for reading my many articles on various topics that interest you.

Repair of damaged Indian wooden furniture

Indian wooden furniture, like any other furniture, is prone to damage. In general, wooden furniture often suffers from nicks, splits, minor cracks, and broken or splintered sections. Many times, porous wood like maple can crack and dry out. Maple, however, is not used much in Indian furniture making. In South India, where the climate is tropical and the temperature is humid, wooden furniture can easily warp. Furthermore, cosmetic flaws can also damage Indian furniture. These include paint peeling and varnish melting. It is not impossible to repair your damaged Indian wooden furniture and restore it to good condition. It just requires a little care.

Before you begin the actual restoration process, transport the furniture to a dry section outside if the weather permits. Open all the windows to ensure ventilation if you find that the furniture is too big to move outside. Put some old newspapers on the floor to protect it from wood dust and chemical spills. Before starting your work, put on disposable rubber gloves and wear a safety mask.

To begin the job of restoring your damaged Indian wood furniture, use any of the available chemical stripping agents to remove the old varnish or paint. Take a clean brush, dip it into the stripping agent, and then spread it over the Indian wood furniture. Wait at least seven minutes for the agent to oxidize. Then start scraping off the top layers of paint or varnish with a putty knife or scraping tool.

Now put on a new pair of gloves to protect your hands from splinters. First, rub the surface of your Indian furniture using power sanding equipment to smooth it evenly and get the grain out. Use sandpaper to gently rub the remote sections of the furniture by hand. After that, remove all the dust with a clean brush.

Use some wood glue to re-glue any of the raised pieces of wood. Now look at the furniture and carefully examine the joints. Re-glue any loose table or chair legs. As usual, first rub the surface with the sandpaper inside the joints to remove any old glue residue. Then apply glue to the inside surface of the joints and reattach the legs. Apply clamps to secure the pieces in place. Remove the clamps only after six to eight hours when the glue dries.

Apply a wood sealant to any splits or hairline cracks. Allow the sealer to dry. When both the glue and the sealer are dry, gently rub the surface again. Next, clean the wood dust off your Indian furniture.

Having done all of the above, stain your Indian wooden furniture. You can use a water-based staining agent for your wooden furniture in a humid or dry environment. You can also choose latex enamel-based paint if you want to paint your furniture. A couple of coats would suffice. Lastly, apply a waterproof and insect-proof gloss finish to the wood.