Archive for June, 2011

So, What’s The State of the Commercial Mortgage Market? Will I be Able to Get One?

If you are in need of a mortgage on your business property, there are many different reasons why a commercial mortgage can assist you.  Owning your business property is actually an investment in itself. It can also help with longer term financial needs, as you are able to select a fixed rate mortgage so that you know exactly how much will be going out each month.

A current issue, however, since the recent market crash is that the lenders are not quite so happy to allow mortgages for smaller companies.  Cash to expand your company or to buy business premises is scarce and so it has become harder to agree lending with a bank or other financial institution.  Whilst banks are continuing to lend billions of pounds to small businesses, it is vital that you follow these four steps to improve your chances of being approved for a commercial loan.

Get a Large Deposit Together: A lender wants to see that you are committed and that you don’t see yourself as a risk by putting down a good deposit on your property. And remember whatever you put on the property as a deposit will be owned by you outright from day one. So if you put down 50% of the property value you’ll own 50% straight away.

A deposit on commercial property is usually much more than on personal property – usually 25-50%. So you will need some good funds built up before you think about buying business premises.

Have a brilliant, well thought out business plan: A well researched, well thought out, realistic business plan will go a long way to increasing your chances of success when applying for a commercial mortgage. Your commercial lender will want to go through the plan in detail.

If your business plan is inaccurate or incomplete, it will make it very difficult for a commercial lender to agree a loan.  Only by being confident in your business plan will they consider advancing the funds you need.

Show that you can responsibly manage debt: One of the best ways to demonstrate that you will keep up repayments on a commercial mortgage is to show that you have responsibly managed other financial commitments.  If you have made all your payments on time in the past, it is likely that you will do so again in the future.

Show any potential lender proof that you have always made your payments to loans or other commercial borrowing.  Demonstrate that your rent has always been paid on time and that your company credit card payments are in order.  If you can prove that you have a track record of managing debt responsibly, a commercial lender is much more likely to agree your borrowing.

Be Prepared: A commercial mortgage lender is not going to lend to anybody without making a few enquiries first. Whether it be about your current or past financial status, the integrity of your Directors and Shareholders or how you sit financially be prepared to answer questions about you and your business.

Not only will knowing your business make your application stronger, it may also help your application to be dealt with much quicker which is always more preferable when buying a property.

Howard writes for Just Commercial the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.

Protecting Your Real Estate Investment From Title Fraud

Title fraud is one of a number of situations that is hard to imagine even now occurs in the property market with all of the court precedents, safeguards and documentation mandated to buy and trade real estate. Unfortunately, the sad reality is that title fraud arrives in quite a few distinct types and can develop complications that were certainly not foreseen in the original legilative documents and can result in serious economic consequences for the real estate owner. When confronted with unsubstantiated ownership disputes, document forgeries and identity theft there is almost no recourse besides for the home owner to commit their own time and resources while lawmakers try to plug the holes in the system. Once possession to your title is being challenged, you should be glad you have undertaken measures by employing a excellent property attorney to assist you foresee these kinds of assaults and invested in title insurance coverage to cover such contingencies. 


In Canada, many property owners find themselves encumbered with a legal load of defending themselves against title fraud, in particular in the provinces of Saskatchewan, British Columbia, Manitoba and Alberta wherein the Torrens Property registration network tends to make very little use of the provincial assurance pools created to defray this kind of legal expenditure. In Ontario, the Ministry of Government Services addressed this issue to an extent with the Consumer Protection and Service Modernization Act of 2006. This act plugs the apparent hole that was being brought about by enabling non-authorized personnel to access the electronic property registration repository so that fraudsters may basically tweak the name on the property, but there still remain quite a few techniques to challenge a legitimate title. For these kinds of circumstances, Ontario has designed a significantly a lot more direct public access to money by means of the Land Title Insurance Fund for Homeowners. As a purchaser looking for Aurora real estate this is excellent because it supports in developing confidence in the market.


Good land holders know that the authorized legal system even now has a lot of loopholes and that they need to assume some duty for guarding themselves — particularly from id theft that is the root of the most damaging sorts of title fraud. To hold another person from landing the data essential to tamper with your ownership, you need to become aware of the type of document — and digital — trail you leave behind you concerning real estate acquisitions. Most common sense methods like shredding all delicate documents which contain provate info and defending yourself whilst online with strong passwords, advanced viral software packages and robust firewalls can solve some issues in their tracks. Also be on the alert for missing financial institution statements, unusual billing cycles or interrupted subscriptions as these are indicators another person may have taken hold of your id and the quicker you take measures, the better your odds are of stopping any escalation. For a buyer of Toronto condos and lofts it can a be a terrible feeling to see your purchase taken without consent from under you.


Title fraud insurance is another avenue property holders can take to safeguard themselves in opposition to future contingencies and claims in opposition to their ownership. As a buyer engaged in Toronto MLS listings you may locate that your lender demands you to acquire title insurance. Bear in mind that similar to any insurance coverage policy, title insurance has its constraints and limitations and may not automatically deal with all facets of a intelligent title fraud scheme. By using the adage that the finest protection is a great offense, smart house owners should deal with as many bases as achievable to be capable to capture a fraud prior to it has a opportunity to get a full blown legal battle.

Dwelling For Sale On Installment

A legitimate way of avoiding taxes is to allow the buyers of your Miami Homes for sale to spend the sum in installments. For instance, In case you have put up a massive Property on sale, chances are that You’ll not be able to sell it at a lump sum down payment of the total amount. So, why pay tax? The common cases where installment schemes are readily available are in Properties that involve significant amounts of funds. The real state installment method typically follows the all acquire-win deal for the participating parties. While, the seller gets to defer the payment of tax divided into the tenure taken to receive the payment, the purchasers procure the keys of the house and also Acquire to avail the quick scheme of payment.

There is one fundamental need which has to be achieved for qualifying the scheme. The buyers have to agree to spend at least one installment every tax year. So, if the prospective consumer agrees to pay a fixed installment, each year, then such a sale can be split into installment payment mode. However, if all the installments are immediately made within one year only, then the installment scheme will obviously not be used. With the agreement of selling, the installment system starts. As the agreement of transferring of ownership of the Miami Homes for sale between purchasers and sellers is carried out, the sales installment starts, then on.

The seller of the Miami Homes for sale will choose if he desires to charge any interest on the monthly installment. As the deal gets closed, the customer will be able to move into the Asset and start living, while paying their yearly installments. Now, instead of recording the total sale in your books of accounts, You will treat it as an individual installment. Hence, your income, as per your book of records is a great deal less. With low income, the tax liability payable will also be less. Hence, at the end of the day, the customer will not have to Find into any muddle of loan and finance, and the seller might also spend less tax and earn more cash Through the sale.

Thus, the installment method of payment in selling Miami Homes for sale ensures which the seller instantly receives the payment, yearly, without delay, along with the interest component, and the customer can peacefully generate the payment by accumulating funds all over the year, and pay it at the end of the month.

For further queries on Miami Homes for sale, call us. We invest in and sell all sorts of Properties. If you are Browsing for Miami Homes you have come to the Proper place.

Go Outside The Box and Choose an Offset Mortgage, Everything You Need To Know is Here…

Offset mortgages are the kinds of financial arrangements that make prospective borrowers apprehensive, worrying that there might be all manner of hidden pitfalls. They are actually quite easy to understand and they have benefits and drawbacks depending on how they fit an individual borrower’s circumstances.

Offset mortgages first appeared in the UK in 1997 after being developed in Australia (indeed, they were often called ‘Australian mortgages’ on their launch).  The simple idea of an offset mortgages is that your mortgage is linked to a savings account.  When you have a balance in your savings account it reduces your mortgage balance, meaning more of your monthly payment goes to repaying what you owe.

The term ‘offset’ comes from the fact that your savings ore ‘offset’ against the balance of your mortgage.  So, whilst you have savings in your account, you can repay your mortgage balance faster than with a traditional mortgage.  And, in addition, you will pay less interest over the term of your mortgage.

Offset mortgages can have the potential to save a borrower huge sums of money over the life of the loan. They are best suited to people who receive bonuses or commission as well as basic salary, as these lump sums can be placed in the savings account which then pays the mortgage.

Many offset mortgage contracts will allow you to make overpayments and even at times underpay. It’s important to remember though that if you underpay or take a payment break, you’ll be slightly extending the term of your loan, although this is essentially not so important on an offset mortgage as the rest of the time you’ll be reducing it.

It is possible to link your current account to the mortgage on an offset deal instead of or as well as your savings account. This means that if you have any money in your current account left over then you can also put that into an offset mortgage account. Offset mortgages do clearly benefit people who have taken the decision to make paying off their mortgage a priority.

One of the problems faced by lenders who offer offsets is that there is a perception that they are too complex and risky and just too unfamiliar to borrowers for them to feel they are an attractive proposition.

Now for a few of the major downsides, the savings account which is also set up will, in most cases, not be able to earn interest. The reasoning you will hear behind this is that the lenders are already allowing you to overpay on your mortgage without penalty costing the lenders thousands of pounds in lost interest over the life of the mortgage.

Whilst in the past, according to lenders London & Country, offset mortgages have made up a mere ten per cent of the mortgage market, they have grown in popularity in recent years and are closer to taking a 15 per cent market share. As this happens and they become more mainstream, many of the concerns about them will hopefully be dispelled.

So, if you are considering taking out a new mortgage, make sure that you consider whether an offset deal would be right for you.  Taking advice from a professionally qualified mortgage broker may be worthwhile as they can determine whether a fixed, discounted or an offset deal is the right thing for you.

Howard writes for Just Commercial the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.

Real Estate And Creative Financing Go Hand In Hand

When times get hard, folks get innovative, especially when it comes to funding their homes. A lot of property buyers and loan merchants are devising creative approaches that don’t contain dangerous get-rich-quick schemes but do help people who cannot scrape up a traditional down payment or don’t possess the common evidence of income which financial institutions’ applications acknowledge as legitimate. All sorts of financing establishments have realized that by developing intelligent funding methods, they can help meet the criteria potential customers who might not meet up with conventional chances of necessities to have the option to become responsible homeowners.


One of the initial stumbling blocks house buyers experience are the large down payments, but quite a few personal creditors have packages that can offer certified applicants a 5% downpayment mortgage so that one can have cash in hand when you approach the bank. The only out-of-pocket expenditures you can incur could be closing costs. Being qualified for these mortgages involves excellent credit, job security and the potential to come up with the 1.5% closing price independently. Cash-back mortgage organizations can additionally help you develop a good imaginative financing method which can beat a bank’s interest charge and make it possible for you to get at least 3% of the money back at closing. Taking advantage of these cash back programs implies that if you are purchasing real estate Vaughan you might be able to stretch yourself a little further in your price range.


Approving self-employed people turned into such a typical impediment which many loan merchants have come up with mortgage products to assist to accurately recognize this kinds of incomes. This has turned out to be essential due to the fact many small enterprise revenues and side jobs do not create the kind of standard funds flow which is reflected on income tax claims, bank information and ledgers. Thus, quite a few banks have designed alternative approaches that people can use to validate their proof of earnings and good credit. It is feasible to claim a portion of you mortgage as a business cost and for many individuals seeking condos for sale in Toronto that can make the mortgage loan qualification process a bit much easier. Generally these mortgages just enable you to borrow 80% of the property value, which means you need to both conjure up the balance in cash or find a separate loan.


Most folks uncover they do not meet the requirements for home loans because of too quite a few monthly payments. By obtaining any consumer debt consolidation loans, a lot of folks find when A straightforward option to it is to get a credit card debt consolidation loan so that all of the installment payments change into a solitary lump sum each and every month, which helps make the cash-to-debt ratio look considerably greater on a mortgage loan application.


A different creative economic ploy is to produce partnerships, especially on more costly homes which are good investments. By creating a pool of investors who are all looking for Brampton real estate possibilities, you can more easily gather deposits, meet the requirements of mortgages and share the obligation for the finances and the administration of the property.


As governments try to stimulate the housing market, personal allowances are cropping up which are targeted at energy-efficient properties and clean-power neighborhood solutions. The U.S. the federal government site lets you to look and see which sort of mortgage inducement programs can be utilized to your circumstances. In Canada, there are a variety of Federal programs and Providence-specific subsidies like the Home Buyers Plan that allows individuals to deduct as much as $25,000 and couples up to $50,000 for a downpayment from their Registered Retirement Savings Plan.

Bangalore Real Estate Industry

Over the past few years India has become the main centre for the software outsourcing business.  Bangalore, India  has contributed the maximum towards the software outsourcing business as it hosts large IT parks currently occupied by almost all the IT companies in India like  Google, TCS, Infosys, Wipro  etc. The unprecedented growth in the Bangalore IT industry created  premium  jobs in the city which enticed the talented Indian population to the city and this led to the  greater demand for properties  in Bangalore.

 In the last decade  the prices in Bangalore real estate have  increased mainly due to the increase in demand for luxury living due to the developing IT sector. Although the real estate developers are coming up with premium luxury properties in Bangalore  with amenities like swimming pools, tennis courts, gymnasiums etc the civic infrastructure in the city is poor with bad transportation facilities and roads. The Karnataka government  has not been able to provide the right resources for the IT industry to flourish.

Higher standard of living has created a genuine demand in the real estate market but this has also caught the attension of the speculators invest in real estate for better ROI  . The genuine demand clubbed with the Bangalore property investments has caused the real estate prices to touch the  zenith . A normal project gets sold out in the  launch phase and more than half of the flats are booked by investors (often supported by the builders) who then look to exit  with better returns . Off late this has caused the price to rise very steeply and is slowly taking the shape of a balloon inflated beyond capacity which may burst any time leading to the instant fall in the real estate charges which in turn will cause all investors to exit by pressing the panic button to minimize losses which may cause a further fall in prices.  we will have to wait and watch the outocome in such situations ! 

Wrongful Foreclosure – Claims and also Damages

In certain instances of foreclosure, there may possibly be sufficient cases of misconduct by the lender to show that the entire process constitutes a wrongful foreclosure. Quite a few states even have common law concerning this concern, as well as a trigger of action specifically for “wrongful foreclosure.” Despite the fact that the claim has not been well-liked in recent history, homeowners could be able to use this claim after losing their house.

When extreme circumstances affect the procedure of using the home back, homeowners could have a better case to make for wrongful foreclosure. Cases of mortgage servicing abuse, for example, have been used within the past as a total defense to foreclosure. When notices are not provided to borrowers or the servicing firm refuses to negotiate for an alternative remedy to foreclosure, there may possibly be a defense to the whole action.

When homeowners are unable to get through to the lender to negotiate for a loan modification or other answer, claims of wrongful foreclosure could be raised. Quite a few distinct types of mortgage contracts (FHA, for example) demand some sort of preforeclosure meetings or negotiation, and courts have held that foreclosure is such a harsh remedy that it ought to be relied upon as a last option.

On the other hand, numerous banks are notoriously hard to speak with, typically calling homeowners dozens of times each day, but with no actual resolution to the problem even if the borrowers answer and would like to negotiate. Collection calls rarely turn into productive discussions of options to repaying all of the arrears at when, entering into an costly repayment program, or losing the house to foreclosure.

When borrowers are not able to get through to someone authorized to make a choice about their account, and the foreclosure procedure keeps moving through the courts, there may well be a case for wrongful foreclosure. Homeowners might want to resolve the scenario, but no superior alternative is regarded as by the bank beyond lawsuits or the sale of the property at a county auction.

A wrongful foreclosure claim may be also raised in instances in which the lender or servicing firm has added excessive late fees, interest charges, property inspection fees, appraisal charges, improper escrow advances, forced placed insurance, as well as other charges. Lenders will add these fees so as to make a little default on a property with substantial amounts of equity, and then to eat up any remaining equity between the time of default as well as the sheriff sale.

Homeowners should be aware that there is certainly comparatively little recent case law on the claim of wrongful foreclosure; nonetheless, depending on the circumstances, it may well be worth raising it as component of a defense to foreclosure. As often, state statutes and laws will affect just how much this claim is worth pursuing, so it might be in the best interests of the borrowers to speak with a knowledgeable attorney.

Cash Flow Valuation with a Spreadsheet Model

Cash flow valuation spreadsheets are widely-used by individual and professional investors to value companies, assess their future upside, and estimate earnings drivers. This article discusses the method and some factors to consider in such a financial valuation model.

If you are using an Excel spreadsheet or dedicated software, the first thing is getting the background data needed to understand the business’s past financial returns. This may take a bit of effort. The standard sources are Yahoo Finance, Thomson, the SEC EDGAR, stock exchanges, or financial publication companies such as the Investor’s Business Daily. If you are capable it’s best to get the information in Excel or text format so that it can be massaged. Be sure the complete financial statements are available for at least 5 annual periods. These should be in quarterly format if at all possible.

Now is where the heavy cash flow valuation work begins. Bring the data into the worksheet or your software then arrange it into dedicated tabs. Create a new sheet dedicated to your cash flow valuation calculator, with portions for EBITDA, additions and subtractions, Cash Derived from Ops, cash from investments, and Funding Activities. Arrange the quarter by quarter schedule headings at the top for at least 5-10 periods, with a terminal exit cell at the conclusion. Now you have the structure set up for your valuation spreadsheet.

Link up the earnings before interest taxes and depreciation/amortization data with the exact same line in the Income Statement if it exists, otherwise compute earnings before interest, taxes, depreciation, and amortization by linking the correct Income Statement lines. With your Adjustments section, go ahead and reverse any items you don’t think will repeat or add stuff you think need to be in EBITDA. This is commonly applied to non-reoccurring revenues or expenses and deferred income or expenses and pure accounting rule items. Now, pull out your depreciation and amortization expenses to acquire EBIT and include the typical company blended taxation percent minus these two costs. Finally, add depreciation and amortization in again to arrive at the cash flow from operations.

The next phase in your cash flow valuation model is cash from investments. Subtract cash expenditures for first time investments in short and long-term assets and intangibles. Add inflows received for sale of investments. Execute any adjustments as appropriate, and add up the total. Repeat this for your cash from financing section. Subtract amounts spent for paying off debt, share repurchases, as well as other sources. Bump up cash for brand new loans, stock sales, and the like. Make changes and sum to obtain a total.

Including cash from operating, investing and finnancing activities gives your free cash flow. This is likely to be different than the official public financials. Now, project these numbers into future periods according to your beliefs about the company’s future. Put in a final exit value at the end of the period. Finally, using discounting, do a cash flow valuation to obtain the NPV.

As First Time Buyers Are Squeezed Out More, Shared Mortgages Are On The Ascendancy.

Getting on the property ladder can be tough.  After ten years of house prices rising faster than wages, for many people buying has become less affordable.  So, first time buyers have had to look for ever more imaginative ways to buy their first home.

A shared mortgage is just as it sounds. It’s a group of people clubbing together to obtain a mortgage on a property. Not only do you share the mortgage, you also share the deposit, so if you need a £30,000 deposit and there are 4 of you, you only need £7,500 each.

In reality this type of financial commitment can work for some and not for other. As with most things in life going into a shared mortgaged needs to be done with eyes wide open. Mortgage lenders can allow multiple applicants to collectively mortgage a property, and can offer two and a half times the collective salary pot in cases where other criteria are met. This will obviously vary by circumstances and on a case by case basis.

There can be some issues with property and mortgage sharing, so it is imperative that you understand the contract from the beginning, including what is expected from your as a borrower and  the ‘rules’ involved with such a contract.

 Every member of the agreement is both is party is individually and collectively liable for repayment of the mortgage. Which means and many don’t quite understand this but if one member fails to pay, the remaining members have to make the full repayment. Shared mortgage are often taken out between friends, which could be classed as mixing business with pleasure, you have to ask yourself if that is going to work for you?

 Make sure that you are prepared for change too, as most of the time shared mortgages are taken on by young friends and they may eventually want to move in with their partner or go travelling – you just never know. Again, this is a good reason to know the contract and ensure that you have a plan in place in case this kind of this occurs.

 Know your stuff too – there are different ways in which to purchase a property. You can buy as tenants in common or in joint names. The rules are slightly different on each in terms of what happens if someone dies so you need to be aware of these differences and decide what’s best suited to you as a group accordingly. It may be an idea to talk with a financial adviser to ensure you’re well advised on what happens in certain circumstances.

 A ‘joint tenancy’ divides the property into equal shares distributed between the owners.  ‘Shares in common’ means that each property owner’s share of the property is decided by them.  Whichever way the property is divided, these choices offer substantial legal protection for each party in the event of their death.  It means that their share of the property can be distributed according to their wishes.

 A mortgage is still beyond the financial means of many thousands of people and so a shared mortgage can be a viable method of getting on the property ladder.  With rising house prices, pooling salaries can be the only way to secure the mortgage you need to buy.  However, a shared mortgage can test the strength of your friendship and so it is important that it is not a decision you take lightly.

This does not by any means mean that it is not a good idea however, as it is a great way for people to make an investment that they would otherwise not been able to afford. Just think about things clearly and responsibly, and make sure you know who you’re entering into the contract with.

Howard writes for Just Commercial the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.

Do-it-yourself Conservatories Are A Hit

Suddenly, after not seeing them for years, conservatories or sunrooms, and more specifically do it yourself conservatories are sprouting up all over the place. It’s a fast easy way to add an extra room to your home, as well as some extra value to your home quickly, and with not too high a price to pay. In the United Kingdom , you don’t presently need building permission , although there are a few restrictions on height, and width, but it is easy to work around these .

The diy conservatories are all prefabricated – they all come with detailed instructions on how to put them together – in the manufacturing workshop, the costs are lower . You can then put the conservatory together yourself, if you are a do it yourself type of person, or get a builder to do it for you, and it still works out way cheaper than having a building company put up a conservatory from scratch for you.

Ok, so diy conservatories are a good investment , giving a healthy return on the investment, but does this mean that I am limited to just a few shapes and designs? Not at all, there are a many different types and designs available, mainly glass, if that is your choice, like the old conservatories used to be made from, or brick or wood, pretty much whatever you need. And the size is adjustable too. In fact, every effort is made by the manufacturers to give you a conservatory that blends in with the rest of your house. The conservatory will not stick out like a sore thumb, unless you make a bad choice in the first place!

There really isn’t a good deal for you to do when you have decided on the type of walls and roof that you want for your do it yourself conservatory . The most important factor is to get the dimensions correct for the foundation of your conservatory, and as soon as your foundation is built, the prebuilt room can quickly be set up on it. Now constructing a foundation seems simple enough, but if you are not absolutely sure what you are carrying out, get a competent contractor to prepare it for you. After all, you are expecting that this room wil add value to your property, so it needs to be a proper foundation. Having sorted this out, you will have to decide on single pane windows or double glazed. This is dependent on your budget, and most likely the sound level in your vicinity. If it is a very noisy area, you might prefer to go for the double glazed windows to help keep some of the noise out, but that is totally your personal preference.

The hardest, most challenging component of the whole diy conservatory might just be organizing the builder to get the base done, and then put the sections together for you, as his timing may vary depending on the weather. But however long it requires to get it set together, it will be worth the delay, and before you know it, you will be choosing window shades for it, and maybe a nice fitted floor covering, whatever you have decided is right for your new room.

Just one quick word about the company you choose to purchase your diy conservatory from. Make sure that they are a reputable company, and make sure they have a customer service phone line, just in case you have a question that needs answering before you go onto the next part of the building. The chances of this are slight, but it is always a good idea to be prepared! Then order your diy conservatory, and be the envy of your neighbours, who may just have to order their own diy conservatories.