Article written and provided by Joshua Geary, Best Online Results
Texas hill country is a region in central Texas comprised of more than 14.000 square miles of majestic beauty spread –out across more than 50 cities/areas such as Fredericksburg, and Llano. With picturesque landscapes that can only be describes as, "Inspired by Heaven."
Great hills made of limestone stand tall, reaching upwards to meet the horizon. Wildflowers with the most brilliant colors blanket the fields. Crystal-clear streams (running cool and fast), abundant wildlife roaming about free: all make for some breathtaking sight-seeing and award-winning photo opportunities.
The city of Fredericksburg is at the heart of central Texas and its hill country. Fredericksburg rests near Enchanted Rock State Park, a 1,643 acre park which has the 2nd largest granite outcrop in the United States. You can take a leisurely nature walk, or hike up one of the many hills. For the truly adventurous you can rock climb and repel. Have a family picnic or camp out in the park. Take a tour of some of the homes and buildings located in the 'historical district of Fredericksburg. You can see 18th and 19th century-era homes that remain today as testaments to the influences that German immigrants had on the area. Some of these historical homes and buildings have been turned into quaint bed and breakfast Inns to welcome guests. You will also find well-known shops, restaurants and beer gardens this Texas hill country town.
Other sites of interest to visitors to Texas hill country include:
The historical Fort Martin Scott, a pre-civil war military outpost which was the 1st. frontier post in Texas.
The Old West Museum: which depicts the lives of early settlers, and the Indians that populated the area in the 1800's and beyond?
The Rope and Herd Ranch: Learn how to rope and herd longhorns here at this western ranch
Are you looking for a special get away for just you and your sweetheart? Consider taking a romantic driving tour through Texas hill country's many vineyards, with colorful grapes on the vine, ready for harvest. The town of Fredericksburg has 4 wineries in the area. Stop off at any of these wineries along the way for some wine-tasting, or to attend one of the special events held by these wineries throughout the year for visitors. You can find more than 15 different vineyards and wineries throughout Texas hill country. Touring a winery or vineyard is wonderful for couples, the wine 'connoisseur' or anyone who enjoys tasting new wines.
RV parks are popular throughout Texas and especially in hill country as camping offers you the chance to get closer to nature. Some of the most spectacular RV Parks rest among the rolling hills and wooded areas of the Texas Hill Country. The Spring-fed waters of the Llano River make for a perfect RV camping opportunity.
For a relaxing atmosphere that is just minutes from nearby attractions take your next vacation in the Texas Hill Country and stay with us. The Texas Llano River RV Park is located on US highway 87, 30 miles north of Fredericksburg, Texas. Our RV Park has 700 feet of river access and is located at the deepest part of the Llano River. Each one of our 46 RV camping sites has a view of the pristine Llano River.
Kamis, 09 Desember 2010
How to Build a Financial Moat With Real Estate
Ages ago, people lived in elaborate and magnificent castles that were often protected by moats. A moat is a wide, deep ditch dug around a castle to prevent enemies from overtaking the castle. By surrounding the castle with water, moats served as an effective deterrent and provided the castle with the security it needed to prosper.
Today, many of us live in our own plain and simple financial castles that are much more vulnerable than the castles of yesterday. Not only do our financial castles not have any sort of moat for financial security, many real estate investors do not know how to build a moat to accumulate wealth and retain it.
Why do most people today not have a financial moat? Why no financial security? Why are most people so financially vulnerable? We live in a culture that has brainwashed us into thinking that we should be paid per hour of work.
If you are like most people, you have to work for a living. If you don't work, you don't get paid. You see, most people have "linear" income. So while linear income may be the way most people earn their paychecks, it is also the reason many of us cannot afford to retire. This type of income continues only as long as you continue to work.
1. If you are an attorney, you get paid whenever you represent a client. If you don't provide legal services, you don't get paid.
2. If you are a teacher, you get paid when you teach our children. If you decide not to teach, you don't get paid.
3. If you wholesale or retail houses, you get paid when you flip a house to another investor or sell it to an owner occupant. If you quit wholesaling or retailing houses, you don't get paid.
The real test is that if you are let go by your employer as I was in June 2002, your income definitely stops. After almost 30 years of working for "security" for different companies, I was left out in the cold in the middle of summer. I discovered I was not secure; I only had the illusion of security. Working for a company is fine, but you must understand it will never give you security.
That's how linear income works. You receive income when you work. Usually you earn just enough income to pay your bills. When your income stops, you're on the brink of disaster. In fact, if you're like most folks, you're no more than two or three paydays away from a serious financial catastrophe.
OK, so how do we start to build the moat that will provide us with financial security?
You start digging a ditch around your financial castle with "residual' income. A complete change happens when you start earning residual income. Residual income means you continue to earn money for a long time. When you do something right just one time, you get paid over and over again for what you did.
a. If you write a hit song, you get a small royalty every time the song plays on the radio.<
b. If you write a book that becomes a best seller, you receive a regular royalty check from your book sales.
c. If you're already a multi-millionaire and had a few million to invest in quality stocks and bonds, you now get a regular dividend check.
Residual income sounds nice, doesn't it? Unfortunately, most people have trouble developing a residual income.
Why?
We can't sing or write music. We don't know the first thing about writing a book, much less how to go about having it published. And I really can't remember the last time someone came up to me and told me they had a few million dollars sitting in their checking account waiting to be invested.
However, there is hope.
There is another way to develop residual income. There's a way to get monthly checks so that we can do the things we want in life. So that we can achieve our dreams. And best of all, almost anyone can develop this residual income that will give you the financial moat you need to accumulate and retain your wealth.
It was only after my wife asked me how many properties I had kept for ourselves at the end of 2004 that I realized that my "buy and sell" plan was making us very good money, but it would not make us wealthy. I realized I had to keep buying and selling properties to keep making the money. So I launched a strategy that complemented our buy and sell strategy. The approach is to buy properties at substantial discounts, rehab the properties, and then rent them out. And the best part is that the tenants pay for my properties. Once the properties are paid for, I will continue to have rental income for the rest of my life.
But what about tenants and toilets, you ask. Well, everything has a price and you'll have problems with your tenants. But you have options. You can (a) develop a system to minimize your problems with tenants, (b) retain a realty management company to deal with the tenants or, (c) offer seller financing to your tenants so they become owners and they no longer call you.
Personally, I like the buy and hold strategy for two principal reasons. First, I continue to accumulate assets or rental properties. Second, I will continue to receive residual income for the rest of my life whether I continue to rent the properties or elect to use a seller financing approach so I deal with a buyer/owner and not a tenant.
The more properties you accumulate, the more residual income you receive. And the more residual income you get, the wider and deeper the financial moat you will build for yourself. The wider and deeper your financial moat, the more difficult it will be for circumstances to penetrate your financial castle. You will have the security you need to truly prosper.
Today, many of us live in our own plain and simple financial castles that are much more vulnerable than the castles of yesterday. Not only do our financial castles not have any sort of moat for financial security, many real estate investors do not know how to build a moat to accumulate wealth and retain it.
Why do most people today not have a financial moat? Why no financial security? Why are most people so financially vulnerable? We live in a culture that has brainwashed us into thinking that we should be paid per hour of work.
If you are like most people, you have to work for a living. If you don't work, you don't get paid. You see, most people have "linear" income. So while linear income may be the way most people earn their paychecks, it is also the reason many of us cannot afford to retire. This type of income continues only as long as you continue to work.
1. If you are an attorney, you get paid whenever you represent a client. If you don't provide legal services, you don't get paid.
2. If you are a teacher, you get paid when you teach our children. If you decide not to teach, you don't get paid.
3. If you wholesale or retail houses, you get paid when you flip a house to another investor or sell it to an owner occupant. If you quit wholesaling or retailing houses, you don't get paid.
The real test is that if you are let go by your employer as I was in June 2002, your income definitely stops. After almost 30 years of working for "security" for different companies, I was left out in the cold in the middle of summer. I discovered I was not secure; I only had the illusion of security. Working for a company is fine, but you must understand it will never give you security.
That's how linear income works. You receive income when you work. Usually you earn just enough income to pay your bills. When your income stops, you're on the brink of disaster. In fact, if you're like most folks, you're no more than two or three paydays away from a serious financial catastrophe.
OK, so how do we start to build the moat that will provide us with financial security?
You start digging a ditch around your financial castle with "residual' income. A complete change happens when you start earning residual income. Residual income means you continue to earn money for a long time. When you do something right just one time, you get paid over and over again for what you did.
a. If you write a hit song, you get a small royalty every time the song plays on the radio.<
b. If you write a book that becomes a best seller, you receive a regular royalty check from your book sales.
c. If you're already a multi-millionaire and had a few million to invest in quality stocks and bonds, you now get a regular dividend check.
Residual income sounds nice, doesn't it? Unfortunately, most people have trouble developing a residual income.
Why?
We can't sing or write music. We don't know the first thing about writing a book, much less how to go about having it published. And I really can't remember the last time someone came up to me and told me they had a few million dollars sitting in their checking account waiting to be invested.
However, there is hope.
There is another way to develop residual income. There's a way to get monthly checks so that we can do the things we want in life. So that we can achieve our dreams. And best of all, almost anyone can develop this residual income that will give you the financial moat you need to accumulate and retain your wealth.
It was only after my wife asked me how many properties I had kept for ourselves at the end of 2004 that I realized that my "buy and sell" plan was making us very good money, but it would not make us wealthy. I realized I had to keep buying and selling properties to keep making the money. So I launched a strategy that complemented our buy and sell strategy. The approach is to buy properties at substantial discounts, rehab the properties, and then rent them out. And the best part is that the tenants pay for my properties. Once the properties are paid for, I will continue to have rental income for the rest of my life.
But what about tenants and toilets, you ask. Well, everything has a price and you'll have problems with your tenants. But you have options. You can (a) develop a system to minimize your problems with tenants, (b) retain a realty management company to deal with the tenants or, (c) offer seller financing to your tenants so they become owners and they no longer call you.
Personally, I like the buy and hold strategy for two principal reasons. First, I continue to accumulate assets or rental properties. Second, I will continue to receive residual income for the rest of my life whether I continue to rent the properties or elect to use a seller financing approach so I deal with a buyer/owner and not a tenant.
The more properties you accumulate, the more residual income you receive. And the more residual income you get, the wider and deeper the financial moat you will build for yourself. The wider and deeper your financial moat, the more difficult it will be for circumstances to penetrate your financial castle. You will have the security you need to truly prosper.
Living A Life Of Luxury In Miami Beach, Florida
A lot of people have many reasons for moving to Miami Beach, and these include the sunny skies, diverse culture and wide array of employment opportunities. No matter what the reasoning behind their moves, everyone runs into the same logistical challenges.
Most likely, a prospective homeowners' first priority is choosing a place to live. Whether you plan to rent an apartment or purchase a luxurious mansion, your home search is probably best started by selecting a neighborhood. The Neighborhood Guide from the Greater Miami Convention and Visitors Bureau is a great venue to start looking. Once you've selected an area or two, take a look at the Apartment Hunting and Real Estate subject pages to locate the home of your dreams.
Blessed with year-round mild climates and unrivaled ocean access, America's southernmost resort city is also a sought-after international recreation destination. Ranked as one of nation's healthiest cities by Natural Health Magazine in 2002, Miami Beach caters to visitors from around the globe with some of the world's top golf, tennis and sporting facilities.
Tourism is growing and so is the Miami property market, which was dubbed the New Manhattan by the US property media. The Greater Miami association of Realtors states that the Miami Beach property boom will add more than 100,000 homes to Miami. A lot of these Miami real estate properties are built with foreign buyers in mind. Exchange rates at present are favorable in Europe and with 28 per cent rises in prices in one year the time to buy Miami Beach property is now. <
There are quite a number of good reasons to owning a Miami Beach or South Beach condominium or residential unit. The azure-blue Atlantic waters off the coast brings warm breezes and gentle waves to the coast, offering a relaxing freedom from the hustle and bustle of many urban lifestyles, and by night, the ocean settles and these cities come alive with fabulous food and endless entertainment options. All of this relaxation and entertainment are just outside the front door of a luxury Miami Beach or South Beach condo or apartment unit.
You should consider owning a Miami Beach or South Beach property if you're a boating enthusiast who would like more time on the water and less time fighting gridlock to reach the marina, a rabid sun-and-sand lover who prefers a quick walk to the beach, a fun-loving nightclub fanatic who still knows what happens after midnight, or a a busy executive who wants the exotic lure of a tropical getaway without picking up a passport.
Currently, the median price asked for vacant for-sale houses and condos in 2005: $328,300 (lower quartile is $218,800, upper quartile is $617,600) Median contract rent in 2005: $764 (lower quartile is $603, upper quartile is $937). For a better estimate and view of the wide array of real property choices in the Miami beach area, it is notable to check on online guides, such as www.miami-realestate.net, www.miamirealestateinc.com, www.luxurylivingrealty.net,
www.miamirealestateinc.org and other Miami Beach property online guides.
Most likely, a prospective homeowners' first priority is choosing a place to live. Whether you plan to rent an apartment or purchase a luxurious mansion, your home search is probably best started by selecting a neighborhood. The Neighborhood Guide from the Greater Miami Convention and Visitors Bureau is a great venue to start looking. Once you've selected an area or two, take a look at the Apartment Hunting and Real Estate subject pages to locate the home of your dreams.
Blessed with year-round mild climates and unrivaled ocean access, America's southernmost resort city is also a sought-after international recreation destination. Ranked as one of nation's healthiest cities by Natural Health Magazine in 2002, Miami Beach caters to visitors from around the globe with some of the world's top golf, tennis and sporting facilities.
Tourism is growing and so is the Miami property market, which was dubbed the New Manhattan by the US property media. The Greater Miami association of Realtors states that the Miami Beach property boom will add more than 100,000 homes to Miami. A lot of these Miami real estate properties are built with foreign buyers in mind. Exchange rates at present are favorable in Europe and with 28 per cent rises in prices in one year the time to buy Miami Beach property is now. <
There are quite a number of good reasons to owning a Miami Beach or South Beach condominium or residential unit. The azure-blue Atlantic waters off the coast brings warm breezes and gentle waves to the coast, offering a relaxing freedom from the hustle and bustle of many urban lifestyles, and by night, the ocean settles and these cities come alive with fabulous food and endless entertainment options. All of this relaxation and entertainment are just outside the front door of a luxury Miami Beach or South Beach condo or apartment unit.
You should consider owning a Miami Beach or South Beach property if you're a boating enthusiast who would like more time on the water and less time fighting gridlock to reach the marina, a rabid sun-and-sand lover who prefers a quick walk to the beach, a fun-loving nightclub fanatic who still knows what happens after midnight, or a a busy executive who wants the exotic lure of a tropical getaway without picking up a passport.
Currently, the median price asked for vacant for-sale houses and condos in 2005: $328,300 (lower quartile is $218,800, upper quartile is $617,600) Median contract rent in 2005: $764 (lower quartile is $603, upper quartile is $937). For a better estimate and view of the wide array of real property choices in the Miami beach area, it is notable to check on online guides, such as www.miami-realestate.net, www.miamirealestateinc.com, www.luxurylivingrealty.net,
www.miamirealestateinc.org and other Miami Beach property online guides.
How Much Is My House Worth?
Are you wondering "how much is my house worth?" I have two answers for you. First, if you don't really need to move, it is worth whatever you say it is. If you think, "I wouldn't sell this house for less than $300,000," then it is worth that much to you. If you need to sell it, though, what it is worth to you is irrelevant.
Market value is the only relevant value once you are ready to sell. This is the value according to all the home buyers out there. They don't care what you spent renovating the house, or what you originally paid. Spend $50,000 adding a pool, and they may only pay $20,000 more for the home. Real estate is worth what the market says it is worth.
How Much Is My House Worth - Part One
To estimate the market value of your home, use "comparables." This is how appraisers do it. Find at least three similar homes nearby that have sold within the last six or maybe twelve months (these are your comparables). This information is in county records (sometimes online now), or ask a real estate agent with access to the multiple listing service. Get the sales prices, terms of sale, description of the property, and other information.
Take your first comparable, write down the selling price, and review the description item by item. Add to the sales price of the comparable for each thing it doesn't have that your subject home has, and subtract for each thing it has that your subject home does have. This sounds confusing, but it will make sense once you try it a couple times.
For example, if your home has a second bathroom, and the comparable doesn't, add the value of the bathroom to the sales price of the comparable. If the comparable home has a blacktop driveway, and your's doesn't, take the value away. You'll have to estimate what these things are worth, or ask for professional help.
You are rectifying differences, to see what the comparable home WOULD have sold for if it was just like yours. If a comparable sold for $242,000, with one less bathroom than your home, and a bathroom is worth $15,000 in your area (ask a real estate agent for help with these figures), then you ADD $15,000 for the bathroom it doesn't have. Subtract, say $5,000, for the paved driveway it does have, that your home doesn't have. $242,000 plus $15,000, minus $5,000 gives you a comparable sales price of $252,000.
Do this with each comparable, then average the three comparable prices. If, for example, the three comparables now have adjusted sales prices of $252,000, $262,000, and $249,000, add the three figures and divide by three. The indicated value of your home is $254,300. This is about what it should sell for.
How Much Is My House Worth - Part Two
Appraisal is an inexact science. If you can only find houses sold over a year ago, you should probably estimate appreciation in the area, and add that. If one sold with seller financing, you have to adjust for how this affected the price. These complications make it tough to appraise your own home, so what if you need help?
There are other ways to find out what your house is worth. You can pay for a professional appraisal. This way you will also have something to show to prospective buyers who doubt the value. Be sure to tell the appraiser about anything she might miss, like a newer roof, or specially imported tiles.
What about online services that tell you what your house is worth? They don't have enough access to sold prices of homes around the country to have a program figure the value of your house. Instead, they usually just take your basic information, e-mail address, and phone number, and sell this "lead" to a real estate agent that will contact you.
It is better to find a real estate agent on your own, and ask "How much is my house worth?" Find one who has sold homes in your area, and ask if she can do a "market analysis" of your house value. Normally this is free, with the agent hoping to impress you and get your business. Often, if the agent has experience and has worked in your neighborhood, they'll do a better job than an appraiser, and the price is right.
Market value is the only relevant value once you are ready to sell. This is the value according to all the home buyers out there. They don't care what you spent renovating the house, or what you originally paid. Spend $50,000 adding a pool, and they may only pay $20,000 more for the home. Real estate is worth what the market says it is worth.
How Much Is My House Worth - Part One
To estimate the market value of your home, use "comparables." This is how appraisers do it. Find at least three similar homes nearby that have sold within the last six or maybe twelve months (these are your comparables). This information is in county records (sometimes online now), or ask a real estate agent with access to the multiple listing service. Get the sales prices, terms of sale, description of the property, and other information.
Take your first comparable, write down the selling price, and review the description item by item. Add to the sales price of the comparable for each thing it doesn't have that your subject home has, and subtract for each thing it has that your subject home does have. This sounds confusing, but it will make sense once you try it a couple times.
For example, if your home has a second bathroom, and the comparable doesn't, add the value of the bathroom to the sales price of the comparable. If the comparable home has a blacktop driveway, and your's doesn't, take the value away. You'll have to estimate what these things are worth, or ask for professional help.
You are rectifying differences, to see what the comparable home WOULD have sold for if it was just like yours. If a comparable sold for $242,000, with one less bathroom than your home, and a bathroom is worth $15,000 in your area (ask a real estate agent for help with these figures), then you ADD $15,000 for the bathroom it doesn't have. Subtract, say $5,000, for the paved driveway it does have, that your home doesn't have. $242,000 plus $15,000, minus $5,000 gives you a comparable sales price of $252,000.
Do this with each comparable, then average the three comparable prices. If, for example, the three comparables now have adjusted sales prices of $252,000, $262,000, and $249,000, add the three figures and divide by three. The indicated value of your home is $254,300. This is about what it should sell for.
How Much Is My House Worth - Part Two
Appraisal is an inexact science. If you can only find houses sold over a year ago, you should probably estimate appreciation in the area, and add that. If one sold with seller financing, you have to adjust for how this affected the price. These complications make it tough to appraise your own home, so what if you need help?
There are other ways to find out what your house is worth. You can pay for a professional appraisal. This way you will also have something to show to prospective buyers who doubt the value. Be sure to tell the appraiser about anything she might miss, like a newer roof, or specially imported tiles.
What about online services that tell you what your house is worth? They don't have enough access to sold prices of homes around the country to have a program figure the value of your house. Instead, they usually just take your basic information, e-mail address, and phone number, and sell this "lead" to a real estate agent that will contact you.
It is better to find a real estate agent on your own, and ask "How much is my house worth?" Find one who has sold homes in your area, and ask if she can do a "market analysis" of your house value. Normally this is free, with the agent hoping to impress you and get your business. Often, if the agent has experience and has worked in your neighborhood, they'll do a better job than an appraiser, and the price is right.
Waterfront Real Estate: The Ins and Outs
As with any type of real estate, waterfront real estate comes with a few special considerations.
If you are purchasing real estate on the water, be it a river, lake or oceanfront, you'll want to know for certain what your rights and responsibilities are to that water and its shoreline. For example, are you obligated to build a certain type of dock? Many areas have regulations governing what type of dock can be built. Are you even allowed to moore your boat there? Sometimes your rights end at the waterline. Is your beach accessible to the public or can you limit who goes there? Can you build right beside the waterline, or do you have to have any structures a certain distance away? Be sure you investigate the maximum water levels, and research the flooding history of your area. All of this will be important in your future at your waterfront home, so be sure to get the facts before you buy, so you know exactly what you'll be working with.
Living beside a body of water, realize that it is a delicate ecosystem and be sure to consider the environmental impact of what you do. It might be best to avoid things like weed killers on your lawn if it's just running down a slope into the water. There may even be laws governing what is safe to use and what is not. For this similar reason, homes with septic systems will have special regulations beside the water. Because the water level is higher underground, follow the rules carefully to avoid sewage leaching either into the lake, into your drinking water or into your basement during especially wet times of year.
You will also definitely want to consider safety when living beside the water. Ask around about any local dangers such as hidden currents or underwater rocks close to the surface. Also rusty old boats or garbage that has sunk that could hurt unaware swimmers.
Once you've figured out everything you should know about your own unique piece of waterfront, it's time to sit back and enjoy some of the benefits. Not only will you enjoy living in such a beautiful area and taking advantage of the local recreation, you'll have peace of mind knowing you've invested in some of the most valuable real estate around.
If you are purchasing real estate on the water, be it a river, lake or oceanfront, you'll want to know for certain what your rights and responsibilities are to that water and its shoreline. For example, are you obligated to build a certain type of dock? Many areas have regulations governing what type of dock can be built. Are you even allowed to moore your boat there? Sometimes your rights end at the waterline. Is your beach accessible to the public or can you limit who goes there? Can you build right beside the waterline, or do you have to have any structures a certain distance away? Be sure you investigate the maximum water levels, and research the flooding history of your area. All of this will be important in your future at your waterfront home, so be sure to get the facts before you buy, so you know exactly what you'll be working with.
Living beside a body of water, realize that it is a delicate ecosystem and be sure to consider the environmental impact of what you do. It might be best to avoid things like weed killers on your lawn if it's just running down a slope into the water. There may even be laws governing what is safe to use and what is not. For this similar reason, homes with septic systems will have special regulations beside the water. Because the water level is higher underground, follow the rules carefully to avoid sewage leaching either into the lake, into your drinking water or into your basement during especially wet times of year.
You will also definitely want to consider safety when living beside the water. Ask around about any local dangers such as hidden currents or underwater rocks close to the surface. Also rusty old boats or garbage that has sunk that could hurt unaware swimmers.
Once you've figured out everything you should know about your own unique piece of waterfront, it's time to sit back and enjoy some of the benefits. Not only will you enjoy living in such a beautiful area and taking advantage of the local recreation, you'll have peace of mind knowing you've invested in some of the most valuable real estate around.
Putting your estate in order
Estate planning for business owners.
For business owners, an effective estate plan addresses a number of concerns over and above the desire to care for surviving family members. Control over who will run the business, conservation of the owner's assets in the face of legal expenses and taxes, and the liquidity to pay estate taxes due shortly after death are just some of the most pressing issues.
For the sake of their heirs, business owners should plan for the orderly transfer of their wealth - including their business interests - well in advance.
Prepare for Estate Taxes:
Depending on the value of business and personal assets at the time of death, the law may require that estate taxes be paid on the value of the business. If there is not enough cash on hand, heirs may have no choice but to sell the business prematurely or for less than the real value.
Some business owners use an irrevocable life insurance trust to purchase policies on their life, collect any death benefits, and distribute the money according to prearranged terms. The proceeds can be used to pay any estate taxes due, so heirs are not forced to sell a business, property, or other assets they would prefer to keep in the family. The use of these approaches can involve a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional before implementing such strategies.
Plan for Successful Succession:
A buy-sell agreement may be forged between the owners or shareholders of a business, outlining the terms for a buyout in the event of death or disability. It usually includes a pre-negotiated sale price, but can also explicitly request individuals to sell their interests to others or indicate who should manage the business operations.
Payments from a life insurance trust may also be used to buy assets from an estate, such as transferring ownership of a family business according to a pre-existing buy-sell agreement.
Your business is not just your livelihood. It's likely to be the largest portion of your estate and thus the core of the legacy and security you intend to leave behind for your family. A solid estate plan can help keep your business intact through the most difficult transition of all.
For business owners, an effective estate plan addresses a number of concerns over and above the desire to care for surviving family members. Control over who will run the business, conservation of the owner's assets in the face of legal expenses and taxes, and the liquidity to pay estate taxes due shortly after death are just some of the most pressing issues.
For the sake of their heirs, business owners should plan for the orderly transfer of their wealth - including their business interests - well in advance.
Prepare for Estate Taxes:
Depending on the value of business and personal assets at the time of death, the law may require that estate taxes be paid on the value of the business. If there is not enough cash on hand, heirs may have no choice but to sell the business prematurely or for less than the real value.
Some business owners use an irrevocable life insurance trust to purchase policies on their life, collect any death benefits, and distribute the money according to prearranged terms. The proceeds can be used to pay any estate taxes due, so heirs are not forced to sell a business, property, or other assets they would prefer to keep in the family. The use of these approaches can involve a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional before implementing such strategies.
Plan for Successful Succession:
A buy-sell agreement may be forged between the owners or shareholders of a business, outlining the terms for a buyout in the event of death or disability. It usually includes a pre-negotiated sale price, but can also explicitly request individuals to sell their interests to others or indicate who should manage the business operations.
Payments from a life insurance trust may also be used to buy assets from an estate, such as transferring ownership of a family business according to a pre-existing buy-sell agreement.
Your business is not just your livelihood. It's likely to be the largest portion of your estate and thus the core of the legacy and security you intend to leave behind for your family. A solid estate plan can help keep your business intact through the most difficult transition of all.
Learning to Buy VA Repo Homes
Finding savings on a new home may seem tough in the competitive market of today, but with the help of BankForeclosuresSale, it doesn't have to be so difficult. We'll show you how there are actually many different kinds of discount real estate out there available for purchase at extremely low prices. One of the most lucrative types of properties available is VA repo homes, and we can help you learn all about them.
VA repossessed homes are a particular type of property that is available for purchase from a division of the federal government known as the Department of Veteran Affairs. This department is responsible for a great deal of lending to homeowners for mortgages. However, when a homeowner defaults on their mortgage payments, and is unable to find a way to settle the debt, the lending agency will be forced to repossess and then sell the property in question through an auction.
This is where the potential for savings presents itself to homebuyers and investors. Since homes for sale at these kinds of sales only need to be sold for the remaining debt owed by the homeowner and not their full value, many real estate VA is often undersold. If you pick the right sales, you can often find savings of anywhere from 10 to 50% the market value of an incredible home!
Finding Foreclosure Real Estate
With BankForeclosuresSale, you'll be able to search for thousands of real estate homes available for bargain prices all over the United States. We'll show you all kinds of repo for sale at auctions and sales in every state, and not just through government agencies. There are also all kinds of distressed properties available from banks and lending institutions like Fannie Mae and Freddie Mac. But whether you choose to pursue VA repossessed homes or any of the many other options, we'll teach you all about how to buy it for the best price possible.
Using Our Repossessed Homes Resources
Our online educational library is chock full of great educational information and advice on procedures and processes for pursuing a wide range of real estate repo. We also provide insider tips and advice on getting the most value for your money by assessing values and forecasting costs. And our 24-hour Customer Support service is always there to help you choose the best deals out there and answer any questions you run into along the way.
So instead of relying on a real estate broker to help you find a good value on a home, let BankForeclosuresSale show you how to buy VA repo homes!
VA repossessed homes are a particular type of property that is available for purchase from a division of the federal government known as the Department of Veteran Affairs. This department is responsible for a great deal of lending to homeowners for mortgages. However, when a homeowner defaults on their mortgage payments, and is unable to find a way to settle the debt, the lending agency will be forced to repossess and then sell the property in question through an auction.
This is where the potential for savings presents itself to homebuyers and investors. Since homes for sale at these kinds of sales only need to be sold for the remaining debt owed by the homeowner and not their full value, many real estate VA is often undersold. If you pick the right sales, you can often find savings of anywhere from 10 to 50% the market value of an incredible home!
Finding Foreclosure Real Estate
With BankForeclosuresSale, you'll be able to search for thousands of real estate homes available for bargain prices all over the United States. We'll show you all kinds of repo for sale at auctions and sales in every state, and not just through government agencies. There are also all kinds of distressed properties available from banks and lending institutions like Fannie Mae and Freddie Mac. But whether you choose to pursue VA repossessed homes or any of the many other options, we'll teach you all about how to buy it for the best price possible.
Using Our Repossessed Homes Resources
Our online educational library is chock full of great educational information and advice on procedures and processes for pursuing a wide range of real estate repo. We also provide insider tips and advice on getting the most value for your money by assessing values and forecasting costs. And our 24-hour Customer Support service is always there to help you choose the best deals out there and answer any questions you run into along the way.
So instead of relying on a real estate broker to help you find a good value on a home, let BankForeclosuresSale show you how to buy VA repo homes!
Real Estate Industry Problem - Mortgage Fraud
Mortgage fraud may continue to plague the real estate industry. Maybe, I am seeing only the 20% Fraud for Property/Housing, as defined by The Federal Bureau of Investigations.
Reasons why mortgage fraud may continue:
1) The escalating cost of housing and the "American Dream" of owning your own home.
2) Licensing for real estate agents and mortgage brokers is much too easy. The requirements for licensing need to require a greater level of education, more than a high school degree as a prerequisite for licensing and harder licensing requirements, such as more pre-licensing education and harder tests. This will result in better people and less people entering the real estate profession.
3) Lenders need to offer less loan programs, for example, stated income loans (some refer to this as inflated income loans) and no doc (no documentation loans).
4) Most lenders require an IRS (Internal Revenue Service) Form 4506 at time of closing. Now, there is something that an underwriter or lender can request information and stop an inflated (a.k.a. stated) income mortgage application dead in its tracks. If they lie on their income tax return, is it possible that they would lie on their mortgage application?
5) Lack of educational programs in the real estate profession to identify mortgage fraud - could be wishful thinking, due to the Privacy Act - but at least a start. Where individuals and professional can report suspected mortgage fraud situations to the appropriate law enforcement authorities.
6) The credit reporting and scoring system needs an overhaul. Too often, I find errors on credit reports, where the creditor is not reporting timely or accurately information. For example, a customer settled in full his collection action in the later part of February '06. The collection agency in the later part of April is still showing a portion of the account as outstanding with a current date. Yes, they reported the payment, but did not remove the negotiated portion of the balance.
7) Lack of control points within the existing system.
What could possibly be done to reduce the mortgage fraud:
1) More checks and balances within the system to identify potential mortgage fraud situations.
2) More education for all real estate professionals - real estate agents, REALTORS, underwriters, lenders, etc.
3) Greater licensing requirements for all. And licensing requirements where no licensing is required at this time.
4) Implementation of a "whistle blower" protection system and telephone hotline.
5) Proactive preventative action on the part of lenders.
6) Enforcement of Section IX - "ACKNOWLEDGEMENT AND AGREEMENT" located on page 3 of the Uniform Residential Loan Application (FNMA 1003):
"Each of the undersigned specifically represents to Lender and to Lender's actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.;...7) the Lender and its agents, brokers, insurers, servicers, successors and assigns may continuously rely on the information contained in the application, and I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the Loan;..."
7) Enforcement of the paragraphs from the typical mortgage, which reference the borrower's loan application and acceleration clauses: Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of the Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to the Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence.
Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument...(d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property.
8) Better and possibly required education of prospective borrowers, so they can recognize the impact and identify situations.
Implementation of number 6 above will send shock waves into the communities and cause the less desirable professionals out of business and awareness to borrowers. Many may argue that this will be costly to the overall economy or lenders if foreclosure proceedings are needed, but in the long run there could considerable savings for all.
In summary, mortgage fraud may continue, until such time that the losses reach greater levels unless there is a proactive preventative overall program to curb it. Old country saying "you don't close the gate after the horse leaves the corral."
Reasons why mortgage fraud may continue:
1) The escalating cost of housing and the "American Dream" of owning your own home.
2) Licensing for real estate agents and mortgage brokers is much too easy. The requirements for licensing need to require a greater level of education, more than a high school degree as a prerequisite for licensing and harder licensing requirements, such as more pre-licensing education and harder tests. This will result in better people and less people entering the real estate profession.
3) Lenders need to offer less loan programs, for example, stated income loans (some refer to this as inflated income loans) and no doc (no documentation loans).
4) Most lenders require an IRS (Internal Revenue Service) Form 4506 at time of closing. Now, there is something that an underwriter or lender can request information and stop an inflated (a.k.a. stated) income mortgage application dead in its tracks. If they lie on their income tax return, is it possible that they would lie on their mortgage application?
5) Lack of educational programs in the real estate profession to identify mortgage fraud - could be wishful thinking, due to the Privacy Act - but at least a start. Where individuals and professional can report suspected mortgage fraud situations to the appropriate law enforcement authorities.
6) The credit reporting and scoring system needs an overhaul. Too often, I find errors on credit reports, where the creditor is not reporting timely or accurately information. For example, a customer settled in full his collection action in the later part of February '06. The collection agency in the later part of April is still showing a portion of the account as outstanding with a current date. Yes, they reported the payment, but did not remove the negotiated portion of the balance.
7) Lack of control points within the existing system.
What could possibly be done to reduce the mortgage fraud:
1) More checks and balances within the system to identify potential mortgage fraud situations.
2) More education for all real estate professionals - real estate agents, REALTORS, underwriters, lenders, etc.
3) Greater licensing requirements for all. And licensing requirements where no licensing is required at this time.
4) Implementation of a "whistle blower" protection system and telephone hotline.
5) Proactive preventative action on the part of lenders.
6) Enforcement of Section IX - "ACKNOWLEDGEMENT AND AGREEMENT" located on page 3 of the Uniform Residential Loan Application (FNMA 1003):
"Each of the undersigned specifically represents to Lender and to Lender's actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.;...7) the Lender and its agents, brokers, insurers, servicers, successors and assigns may continuously rely on the information contained in the application, and I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the Loan;..."
7) Enforcement of the paragraphs from the typical mortgage, which reference the borrower's loan application and acceleration clauses: Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of the Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to the Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence.
Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument...(d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property.
8) Better and possibly required education of prospective borrowers, so they can recognize the impact and identify situations.
Implementation of number 6 above will send shock waves into the communities and cause the less desirable professionals out of business and awareness to borrowers. Many may argue that this will be costly to the overall economy or lenders if foreclosure proceedings are needed, but in the long run there could considerable savings for all.
In summary, mortgage fraud may continue, until such time that the losses reach greater levels unless there is a proactive preventative overall program to curb it. Old country saying "you don't close the gate after the horse leaves the corral."
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