Always Bet on Safe Real Estate Investment Rather Than Quick Investment

Financial planning and investment is all about finding out where to invest your money so that you can get the best possible returns. Real estate investment has always been considered as safe because seldom the demand for real estate witnesses a dip. Property investment is the safest and there are strong reasons as to why it is given priority than other forms of investments like mutual funds, bonds, stocks and ETF. You can literally grow your money through property investment with minimum risk.Investors skittish of stock market investments prefer to invest in the real estate market but there are many who have not yet got over the 2008 downturn. Scars of those days have not yet healed for many and they are not ready to invest just for the sake of property investment. They need strong and logical reason behind this investment; they prefer to wait it out rather than put in all their money hastily.If you take property investment decisions in haste, chances are high that you will end up with something in your portfolio that would fail to produce the desired ROI. In property investment, only four different routes prevail; however, here we are going to look at only two of the most popular ones.First: You can go ahead and invest in a rental propertySecond: You can buy shares in the REIT or real estate investment trustBuying the rental property is quite straightforward method wherein you buy a rental property and give it out on rent. However, this type of investment is not for everyone as many fail to juggle their professional lives and at the same time upkeep a property like a landlord. It takes a lot of time and effort to maintain the property you buy unless you are using the services of a management company. You can obviously use the services of a management company but be ready to take a cut in your profits.On the other hand if you invest in REIT, you don’t have to actually own a property on the ground and go into the landlord-mode. It operates just like a mutual fund and the only difference here is that it is property investment. The trust is a group of investors who make property investment and lets the individual investors buy its shares. The trusts are able to receive tax benefits as they pay a major chunk of their income to their shareholders. You can buy shares on public investments, which implies that your investment is quite liquid. You are ensured of regular dividends.Two other methods of property investment that are often used by investors include notes and croudfunding portals.Notes – You will be able to invest in second mortgages, paper notes etc. You can even sell or buy notes just like other real estate invest estates. The best thing is that there are no brokers involved in this.Crowdfunding Portals – Many people with similar investment interests can come together to fund real estate investments. This is a new form of investments and is being tried out by some.

Commercial Lender Changes Hurt Small Business Financing Options

Most small business owners are likely to be severely impacted by recent commercial lender changes. In almost all cases, the business lending changes are permanent and cannot be avoided if a commercial borrower wants to continue their present banking relationship. One noteworthy exception is illustrated by a few new and more flexible commercial lending sources.One of the biggest commercial lending changes involves new guidelines for working capital financing. Most banks appear to be quietly eliminating business lines of credit or severely reducing the amount they are willing to finance to a level which is not helpful to an average business. Very few businesses can survive without a reliable source of working capital, so this change promises to receive the highest priority from most small businesses. To replace the disappearing commercial lines of credit, the most practical options for business borrowers include working capital loans and merchant financing from one of the alternative commercial finance sources still active in small business financing programs.Another business lender change is illustrated by the difficulty of locating investment property financing. An increasing number of banks will make commercial mortgage loans only when the commercial property is considered to be owner-occupied (which means that the commercial borrower occupies a substantial portion of the building). Commercial properties like apartment buildings and shopping centers are often owned by investors that do not occupy the property. For many banks, it appears that they are currently restricting their commercial lending activities to those which qualify for SBA loans (Small Business Administration) which generally exclude investor-owned situations.A third significant business lending change is demonstrated by revised guidelines for refinancing commercial real estate loans. In almost all cases, commercial lenders have dramatically reduced the loan-to-value percentages that they will lend. In some areas and for specific types of businesses, many banks will no longer lend over half of the appraised value. The difficulty for a commercial borrower refinancing an existing commercial loan reach a crisis level very quickly when this happens. In many cases the original business loan was based on a much higher percentage of business value than the bank is currently willing to provide. When a current appraisal reports a decrease in value since the original loan was made, the lending problem is further compounded. This outcome is especially common in the midst of a distressed economy which leads to decreased business income that in turn often produces a lower commercial property value.For a fourth commercial lending change example, many small business owners have already discovered an inflated fee structure from most banks for virtually all small business finance programs. Perhaps the bank perspective for some of the commercial financing fee increases is that they need to find a revenue source to replace the diminishing income from small business loans which has resulted from bank decisions to decrease commercial loan activity. Except for unusual and unavoidable circumstances, business borrowers should seek different commercial funding sources when they encounter suddenly increased business financing fees levied by their current bank.Banks changing their overall guidelines for small business financing produce a final and widespread example of commercial lender changes. Many banks have effectively stopped making any new commercial loans to small businesses regardless of business income or creditworthiness. Unfortunately these banks are not announcing publicly that they have discontinued small business finance activities. This means that while they might accept business loan applications, they do not intend to actually finalize commercial financing in most cases. Whenever it becomes obvious that the bank has no real intentions of making a requested working capital loan or commercial mortgage, this approach has clearly frustrated and enraged business borrowers.The five commercial lending changes described above are unfortunately the proverbial tip of the iceberg. As they approach business lenders to obtain commercial real estate financing, working capital loans and small business financing, business owners will need to be especially skeptical and diligent.

Top Business Internet Marketing Tips on Succeeding in Online Financing

Online financing had been the source of many full time workers if their income falls short in comparison to their month’s expenses. Effective as a part time job, they find it easier to stretch the limits of their income with the help of these business Internet marketing options. If you have been looking for an extra source of income, you may do well to consider the Internets helping hand.Since communication is the primary reason why many log in, you can harness this fact to gain some bucks. For example, in doing an affiliate job, you can extend your percentages for each deal by recommending the products into a wider variety of market members. You may advertise the current list of available products in your Facebook accounts, or in any other site that has prospective clients. In doing this, you can easily close a deal and eventually, receive your fair share in the money.Have you noticed that in gaining a profit in this field, you didn’t have to use some cash as capital? This is the beautiful thing on affiliate working: there is zero chances of losing money. The two probable conclusions of your efforts are just gaining profits or gaining nothing (which is obviously more acceptable than gaining a negative profit).Of course, if you want to have a more creative way of generating income, other options are available for grabs. Research on some of them and compare it to the capabilities and skills you are willing to share. In this way, you can take full advantage of your extra talents in creating cold cash.