UND-Pilsa Blog

Albeit the Property Index service is generally viewed as a newcomer agency, (they were established only in March 2007), they have very quickly proven their mettle. Actually, they are a incredibly easy-going agency focusing on proposing guidance to any person intending to sell, buy, rent or let realty almost anywhere in the world. They pledge to be of assistance to you to discover squarely what’s required quick and, of course, sans pain.

Estate can easily be found all over the world now, possibly the elite area being estate available in France. It should be easy as one-two-three to catalogue the tremendous real estate available in France, the argument for looking into realty here is real property for sale and the opportunity of spending your life amid such a peppy population. It’s one of the truly trendy countries now, and considering the scenic splendor and great climate surrounding you, who could say no! Estate in France is very rich in history and culture, this part of the world has been and still is home to various sophisticated nations.

The Property Index site has a vast range of property for sale in France, view the range online.

Some 20 years ago you would find only very few of British people keen on real estate in France. Ask just about anyone who has moved to France and they’ll certainly back this up. There’s many people who would would view it as a passing trend and others would view it as a close to an infatuation! Customers that are willing to remove to this place will range from young well to do couples in search of a challenge to seniors meaning to have a break and enjoy themselves. Do bear in mind, though, that there may well be drawbacks when looking to acquire real estate in a foreign country - there are obviously a million actions to manage when budgeting, calling in or finalising. If you miss out on one single minute procedure that is certain to escalate huge drawbacks plus, of course, more important, financial damage.

As can be counted on with this popular destination, real estate might be extraordinarily pricey in this location and this, of course, is simply a consequence of the increasing market pressure. Yet, patrons are presently pretty spoilt in a region so full of phenomenal geography and beaming panorama. It patently has the whole enchilada a patron could need, and then some.

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For small business owners, commercial real estate investment is the hottest new retirement asset. If your mind has already jumped to “REITs” or shares in Real Estate Investment Trusts think again. I’m referring to the ownership of the commercial facilities small business owners currently lease, or new commercial facilities they can buy or develop.

Small business owners can thank the U.S. Small Business Administration for this rather substantial opportunity.

The SBA sponsors a specialty lending program designed to assist successful small business owners who want to acquire or develop their own facilities. The SBA did not design the program as a vehicle for creating superior retirement assets, but it doesn’t take a financial genius to connect the dots and the business owners who have done so already are profiting enormously from their decision.

It’s called the SBA 504 program and it’s been around, though not well promoted, for nearly twenty years. If a banker failed to mention it as an alternative, don’t be too dismayed. Traditional lending institutions prefer conventional financial instruments because they offer traditional lending institutions greater profit margins. The SBA 504 program is clearly intended to benefit small business owners, not necessarily the financial community.

Here’s what SBA 504 loans offer qualified small business owners: below market fixed interest rates, longer terms and with a cash investment as low as 10 percent of the total project cost. Typically, small business owners can reduce real estate expenses by up to 40 percent while building an asset that benefits them long after they’ve sold or shuttered their business. As an investment, this type of financing offers the highest cash-on-cash return available for commercial real estate, which means not only does their capital work harder for them, but they keep more of it to grow their business too. You can’t find a traditional lending product that can beat this.

Next to home ownership, being your own boss is the number one American Dream. That’s why most small business owners started (or acquired) their own business. And their success is almost entirely dependent on their drive, ambition, innovation and attention to detail. Eventually, however, they’ll sell their business or pass it along to their children or shut it down (very few small businesses go public). With SBA 504 financing, they can turn that drive and ambition into another long-term asset that offers immediate and significant tax advantages, as well as makes great sense for long-term financial planning.

It’s important to take an innovative approach to commercial real estate ownership. For most clients, it is beneficial to establish a separate real estate holding company to own the real estate asset it separates their operating company - the one they may eventually sell or pass on to their children from this new and important real estate asset.

The result is that, in 10 years or 25, when a small business owner sells their business or gift it to their children or shutters it, the real estate asset will retain important appreciated value in a separate holding company.

They will also have been paying themselves rent instead of some faceless landlord, effectively growing their real estate asset, building their equity and benefiting from the tax advantages all at the same time.

And once they sell their business, they’ll still have an income-generating asset that is one of the soundest long-term investments anyone can make.

Small business owners can continue to be landlords in their retirement, or they can sell the asset typically at a rather significantly appreciated value.

Even if they gift the business to their children, the new owners will have to continue paying rent. Who would make a better landlord their children than themselves?

The value of the SBA 504 lending program is clear. Most business owners that are educated about this financial planning strategy adopt it.

For successful small business owners, this is almost a no-brainer. If they haven’t already done so, it’s time to stop paying rent to someone else and consider owning for all the right reasons.

* * *

By Christopher Hurn

(Ed. Note… Hurn is president and chief executive officer at Mercantile Commercial Capital based in Altamonte Springs. His company handles commercial loans and specializes in 90% financing for small business owners who want to acquire or develop their own facilities. The company, in business for 19 months, has closed some $30 million in loans already and opened offices in Miami, Tampa and Chicago.)

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There are three specific criteria that make any loan work. They are:

1. Collateral - What you have of value (assets) to place at risk if you should default on the loan.

2. Capacity - Your ability to pay back the loan over time. This includes income reporting such as IRS Form W-2 or 1099. Capacity also includes credit. You got to have it for banks to consider your loan with any hopes for approval. Banks will review your most current credit rating at the time of the loan application and sometimes one more time before closing. Credit reports will list several trade lines and the more you have in good standing, and at least 12-24 months since the trade line was opened, the better. Trade lines considered are home loans, car loans, student loans, credit cards, cell phones and more. There is also a numbered scoring process that determines your overall credit worthiness. Credit could also be argued as a form of collateral as I will explain further into this article.

3. Capitol - Banks look for a down payment to lessen their risk of defaulted loan. This money will usually come from a gift by relative, personal savings or proceeds from equity on a previously sold property.

There are three types of loan programs available

Full Doc Loan - This concerns Full Documentation. Most people use this loan because it’s the only loan type available through their bank. I’t also the least expense to originate not because it’s easier, but because it’s more competitive in the marketplace. Also due to the strict underwriting FHA guidelines and verifiable documentation of the loan.

Low Doc Loan - These loans are also known as streamline. For Military Veterans using VA loans, the cost is almost nothing (except for pre-paid escrow fees) because of the rebate paid to the loan originator by the bank. The rebate is broken down on your Settlement Statement some where on Page 2. Typically it’s called Y.S.P. or yield spread premium. Good lenders will usually cover the upfront costs of VA Streamline loans such as appraisals, closing costs, etc. Only the client can pay their own prepaid escrow accounts by law. Often within three months, the old pre-paids from the previous mortgage loan’s escrow account and refunded. So it’s really a no-brainer. The only underwriting guideline for the veteran is to demonstrate current mortgage payments for the last 12 months.

For civilians that use Conventional loans by banks these loans will usually be slightly increased in either point origination fees or interest rate or both depending on your mortgage research shopping. Low Doc loan criteria for the first time homeowner or the long time renter producing a clean rent history for the last 12 months and copies of cancelled rent checks both from and back. Sometimes a letter or a phone verification from the present landlord is a requirement but very easy to do. Another could be a phone verification of employment. They cannot ask for income wage, just that you work there and maybe how long you’ve been employed. Privacy Act Statements prevent employers from disclosing too much information. No Tax Forms are needed. Usually just the last three months bank statements will suffice. What determines the best overall rate and cost of the loan is going to be if your loan is considered prime or sub-prime. That is determined either by the middle of three credit scores or the lesser of two credit scores. These scores are generated by the three major credit bureau agencies: Experian, TransUnion and Equifax.

No Doc Loan - If you can fog a mirror, you can get this loan in most cases! The loan can also be coined as ‘Tell me a (believable) story and I will give you a loan.

Sometimes referred to a NINA (No Income, No Asset) loan, this loan can either have 20 percent down payment or less with excellent middle credit score. There is no proof of income and no proof of assets. This loan will cost more to originate and in interest rate but is the easiest lon to obtain.

No Doc loans are great for people who are in transition. They have not been at the same job for two years but they have been in the same industry. They have relocated, married, divorced, out grown the home with new family members, downsized as empty-nesters or just have to have that signature trophy home.

So there you have it in a nutshell. Go find the right lender and level the playing field to your advantage. It’s your money.

http://www.ult.net

You may freely reprint this article on your website or in your newsletter provided this courtesy notice and the author name and URL remain intact.

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At Common Law a landowner has the right to control the air space above the land he owns subject to statutory restrictions for zoning, aviation and the like. As such, landowners may create one or more air space parcels above their land. Once this is done, the title to each air space parcel may then be dealt with separately from the other titles. Since an air space parcel is treated as land, it may be subdivided into strata lots with common property.

The vertical division of real property is based on the legal conception of land as a volume of space with boundless height and depth. As the density of building in urban areas increases, fewer sites are available for new construction and land values escalate. This trend has produced a growing interest in developing air rights. The concept of land as a three-dimensional entity underlies the land title scheme pretty much everywhere in North America, which allows air space parcels to be created, transferred, mortgaged, leased and subdivided.

Since air space parcels still have a physical relationship to the land because air space rights are part of the land and the ownership of land, the Land Title Act (in British Columbia) as well as other statutes allow landowners to treat their air space as if it were land by depositing a survey of the air space above their land at the Land Title Office. Such survey is called an ‘Air Space Plan’. If the landowner keeps the underlying land but allows someone else to occupy the air space parcel, he becomes what it is commonly known as a ‘remainderman’.

Developers have used the air space parcel concept to construct mixed-use strata projects. This method is typically used where the same structure contains different uses. In effect developers create different air space parcels to contain single-use strata developments. By this means, the same complex may contain one or more separate strata plans, each having a different use. For example, one strata development may be residential while another is commercial. Although they share the same complex, each strata corporation controls a separate portion of the structure.

Virtually every air space development involves construction of a strata building over top of land or buildings owned by the developer as remainderman. It is very important to ensure that there are appropriate arrangements to compel the remainderman to maintain the necessary physical support and related services to the air space parcel, even if the remainderman’s property suffers damages. The major concern is that the creation and unregulated sale of such vacant airspace strata lots will, at some future date, through fraud or financial difficulties of a developer, result in the purchasers of such lots being left with vacant airspace strata lots which have little value, as the contracted building will not be built or not completed.

In each air space strata development, furthermore, there should be one or more written agreements between the strata corporation as the occupier of the air space and the remainderman, who is likely the developer. These agreements deal with obligations of support, access, provision of utilities, insurance and other important matters. Finally, the owner of an air space strata lot must be familiar with the relevant agreements between the strata corporation and the remainderman. Since these agreements are usually complex, an owner should obtain legal advice when reviewing such agreements.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC. Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

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Here are some helpful and realistic tips to buying a home.

Get pre-approved for a mortgage

Getting a mortgage pre-approval will save yourself the grief of
looking at homes you can’t afford and put you in a better
position to make a serious offer when you do find the right one.
Don’t just get pre-qualified for a mortgage, which is based on a
quick review of your finances, pre-approval from a lender is
based on your actual income, debt and credit history.

Make sure you are working with a good lender

Getting a mortgage is a very important part of the equation.
Make sure you are working with someone reputable, preferably in
the area that you are buying. When I deal with buyers who are
using out of town banks there are typically more snags in the
transacation.

Learn the market

Do your homework on where you plan to buy. Visit Realtor
websites and search through the properties for sale. Most
Realtor websites offer free access to the MLS. Use it and see
what is out there. Become educated on the market. Here in
Sarasota, Florida I get many requests from people who want to
buy a beachfront condo overlooking the water for about half of
what they cost. It does not exist. Be realistic about what you
can get in your price range. Realtors are not magicians. We just
show you what is for sale and do not dictate market prices.

Be realistic about home prices

Since you learned the market you should know not to look for the
property that does not exist. I am not saying just accept a
sellers price. Once you learn the market you can determine which
properties are overpriced, underpriced or priced just right.

Hire a professional Realtor

Your time is very valuable. Hiring a real estate agent will save
you time a money. Driving around aimlessly on weekends and
scanning the weekend newspaper is time consuming. Find,
preferably through referral, a professional, full time Realtor
that knows the market and you will save yourself tons of time
and energy.

With a hot real estate market comes a rise in the number of
Realtors. Many of them are part time. Make sure you hire someone
who can adequately handle your transaction.

Don’t try to find the deal of the century

I see too many people try to find homes undervalued or a
“steal”. They have waited on the sidelines for a long time
looking for that deal of the century. In the mean time home
prices have been going up. These people would have made out
better if they just picked out the best home in their price
range that suited their needs.

Hire a home inspector

This is typically the largest purchase you ever going to make.
Spend a few extra bucks and get a home inspection. It could save
you alot of money in the long run.

Don’t Let Your Emotions Take Over

Keep a cool head during the entire home buying process,
especially during and after a home inspection. Be realistic. No
home is perfect, especially older homes. It’s not unusual for
new owners to take care of some repairs themselves. Don’t let
the seller’s refusal to do a small repair kill the deal on a
home you truly love.

On the other hand, don’t fall so much in love with the house
that you’ll buy it no matter what needs to be done–unless
you’re sure you can handle it emotionally and financially.
Decide what type of repairs you can realistically tackle, then
stick with the decision.

Work with a good attorney or title company

There are alot of people that go into handling the purchase and
sale of a home. Any one of these parties can foul up the
transacation. Get referrals to find good people to work with.

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Those purchasing a home for the first time may be unfamiliar with tips
and techniques for selection a good mortgage lender or broker. If
buying a home, choosing the right broker makes a big difference. You have
the option of completing a loan application with individual lenders, or
opting to use the assistance of a mortgage broker.

The Role of Mortgage Brokers in California

Using a mortgage broker to find a fitting loan program is very
beneficial. Each homebuyer has a different situation. Fortunately, there are
many loans available to help homebuyers achieve their dream. For example,
if you have poor credit, it is possible to find a loan that is catered
to those with low credit scores. Secondly, programs that offer closing
costs assistance are available for those with little money.

The responsibility of a mortgage broker is to match you with a
potential lender. There are many mortgage lenders to choose between. Thus,
selecting the right lender may be challenging. Besides, contacting each
lender and inquiring of their loan programs is time consuming. If using a
broker, you avoid the legwork.

Mortgage brokers will gather all your personal information, and submit
it to lenders for review. Within a few hours, you can expect mortgage
quotes from lenders eager to have your business.

Benefits of Using a Mortgage Broker to Find a Lender

Brokers have access to many different types of loans. In fact, a broker
can match you with a lender that offers specialized assistance. For
instance, many government programs and private lenders provide huge down
payment assistance to families with moderate to low incomes.

Furthermore, if using a mortgage broker, you will receive more than one
mortgage offer. When using a broker, lenders literally compete for your
business. After lenders remit their quotes to the broker, the broker
will email you with their offers. This gives you the opportunity to
thoroughly review offers before selecting a lender

Why Apply Online?

The easiest and most effective method of finding a lender is to work
with online brokers. The internet offers convenience and speed. Some
brokers offer instant quotes. Upon receiving and reviewing lender quotes,
you may be able to submit a formal loan application through the broker’s
site. Once the loan approval is finalized, the lender will deliver the
necessary documents for you to sign.

View our recommended California mortgage lenders online.

Carrie Reeder owns ABC Loan Guide, an online resource with information about mortgage brokers and bad credit mortgage lenders online.

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