Archive for the business Category

The Definitive Guide to Plantation Shutters: What You Need to Know

By on November 7, 2023

As a homeowner, you want to make the best choices when it comes to home decor and functionality. Plantation shutters are an attractive and versatile option for many rooms in your house. They provide privacy, control the amount of natural light, enhance the architectural details of your space, and increase energy efficiency. However, with so many materials, styles, and customization options to consider, choosing plantation shutters can be an overwhelming process. This guide will walk you through everything you need to know to find the perfect plantation shutters for your home. We’ll explore the different materials like wood, composite, and vinyl, the various styles from full-height to tier-on-tier, how to measure for and install your new shutters, and tips for maximizing their benefits. By the end, you’ll have the knowledge and confidence to make an informed decision about this timeless window treatment.

What Are Plantation Shutters?

Plantation shutters are interior window coverings made of horizontal slats of wood, vinyl, or composite materials. The slats are connected by vertical rails and can be tilted open and closed. They allow for light and privacy control.

Originally used on plantations in the American South, plantation shutters have become popular for home decor. They suit many architectural styles and come in a range of prices.

Wooden shutters made of basswood, poplar or mahogany are the most traditional. Vinyl and composite shutters offer lower maintenance but may not achieve the same custom look.

Shutters can be installed within the window frame (inset) or on the wall around the window (full height). Inset shutters maximize light and views when open. Full height shutters cover the entire window area for enhanced light control and design impact.

The slats, known as louvers, are usually 2 to 3.5 inches wide. Wider louvers allow for optimal light control and airflow. Narrower louvers provide more privacy. The slats can be left stationary or made movable for adjustable light control.

Plantation shutters enhance privacy, reduce heat gain, and add architectural detail to homes. They are a timeless and versatile choice for any window. With options for DIY installation or professional custom design, plantation shutters suit most budgets and styles.

The Benefits of Installing Plantation Shutters

Installing plantation shutters in your home offers several benefits. 

Increased Energy Efficiency

Plantation shutters provide insulation, helping to regulate the temperature in your home. When closed, they form an effective barrier against heat and cold transfer through windows. In the winter, they help retain heat inside the home. In the summer, they block heat and sunlight from entering, reducing the load on your HVAC system. This can lower your energy bills and increase the comfort of your living space.

Enhanced Privacy and Light Control

Plantation shutters give you maximum control over the amount of light and privacy in your home. You can adjust the louvers to let in as much or as little light as needed. When fully closed, they provide complete window coverage for maximum privacy. They are also very durable and long-lasting.

Improved Aesthetic Appeal

Plantation shutters enhance the appearance of any home with their classic, stylish look. They are custom made to fit your windows precisely, providing a clean-lined, custom appearance. The wood material options, like mahogany, poplar and basswood, allow you to choose a shade that matches your home’s decor.

Increased Property Value

Plantation shutters are highly desirable and add curb appeal, which can significantly increase your home’s resale value. They are considered a premier window treatment and upgrading to them is an investment that can pay off later.

In summary, installing plantation shutters in your home can save you money, enhance comfort, provide privacy, and even boost your property value, all while maintaining an attractive appearance. They are a practical yet stylish choice for any home.

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How To Effectively Access The Value Of Your Real Estate Investments

By on June 15, 2020

When you have invested in real estate, you need to know how to access the value in all your investments. You may not realize that all your investments can be used in different ways to make money or even borrow money. There are a few tips listed below that explain how to access the value in your investments. You can work with partners, bankers, and buyers to continually access cash from properties you own.

Improve, Improve, Improve

David Ebrahimzadeh suggests that you make improvements to the properties that you have invested in. When you make improvements to these properties, you can access their increased value. For example, a property that has $100,000 of improvements might rise in value by $500,000. You will make an extra $400,000 if you sell the property.

If you do not sell the property, you can cite the increased value of the property when raising the rent. You are accessing cash in one of two very simple ways, and you can continue to make extra money from the property if you are improving and raising the value consistently.

Sell

You can sell the property when you would like to make money after holding onto it for some time. When you sell a property, you plan to make a lump-sum figure that allows you to pay off the debts on the property and make extra cash.

You should work with a broker who can help you find the best buyer, secure the highest bid, and make the most money.

Leverage The Value Of The Property

When you own real estate, you can leverage the value of the property to get a loan for other properties. You might want to use the value of the property when you would like a new loan, and you could use the potential value of the property to get a construction or remodeling loan.

Leveraging the value of the property is a good way to continue working on other investments. This may be the easiest way for you to invest in more real estate. You may also want to use the value of the property to entice more people to invest. For example, you can show an investor how much the value is worth, how much the value can rise, and how much you need to make the property even more profitable.

Sublet Your Home Or Condo

David Ebrahimzadeh recommends that people sublet their homes or condos when they move. There is no reason to sell if you do not need the money right away, and you can access more cash in the home when you are collecting rent from your tenants. Subletting is a quick and easy way for people to make money on a property, and you could hold onto a home or condo for many years without selling.

When you are subletting homes or condos, you do not need to sell them. Your tenants will pay them off, and you can sell off the property when you are ready to retire. Many investors use these properties as a retirement plan because they can sell them off quickly when they want to stop working.

Offer More Options To Tenants And Customers

When you are investing in real estate, you need to give your tenants and customers as many options as possible. You may own an office building or apartment complex, and you should offer more than empty spaces for clients and tenants. You might offer furnished apartments to corporate clients. You might offer shared workspaces for companies, and you could make new spaces for companies that would like to open restaurants, bars, and several other businesses that would thrive in the area.

When you offer more options for tenants and customers, you will attract more clients. As the property becomes more popular, you can begin to raise the rent. The value of the property will rise, and you will continue to make money over time. These properties could be so valuable that you will get offers to sell that you cannot refuse.

Conclusion

As you plan to invest your money in real estate, you also need to know how to access the value of your properties. You can invest in properties that will make quite a lot of money in the future, and you can invest in a home that you owned or lived in in the past. You can sublet to make money, and you can sell your properties if you like. You also have the option to leverage the cash value of the property at any time

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Jeff English NJ Gives 5 Tips For Qualifying For a Mortgage As a Freelance Graphic Designer

By on June 3, 2020

Working as a freelance graphic designer comes with many benefits like more freedom, flexibility, and the convenience to work when and where you want. Freelance work is becoming more and more popular in today’s society. There are currently about 56 million freelance workers today in the United States. While it is becoming more popular because of the many benefits that it offers there are also some downsides. One of the most frustrating things that a freelance worker must deal with is the ability to get a mortgage.

When working as a freelance graphic designer you typically do not have a steady income. You likely get hired from one form and then another. You may bounce around from job to job because the work you do is not full time. This often results in banks and other financial instructions not wanting to give you a loan because your work history is sporadic. Here are some of the tips that a popular and reputable freelance graphic designer, Jeffrey English NJ gives to help other freelancers qualify for a mortgage.

#1) Look For Lenders that Offer Self-Certified Mortgages

One of the best ways to secure a mortgage is through a lender who offers self- certified mortgages. These mortgages allow you to certify your own income and find a budget that you can afford. You can bring all of your income records to the financial institution and they can help you find a mortgage that is right for you.

One key thing to remember is that not all financial institutions will offer this type of mortgage. These mortgages are often at a higher interest rate, which can be a little more expensive than traditional mortgages. The more financial records that you have the less risk there is for the financial institution and the lower your rate may be.

#2) Bring At Least 2 Years of Income Returns

One crucial thing that all freelancers need to have is proof of two years of income. Showing that you have had constant or adequate work for the last two years helps give the financial institution confidence in your ability to pay your loan. The more records that you have the less risk there is for the bank. While people that have had a steady income for a few years will likely only need sixty days of pay stubs, freelancers are in a different situation and will need more records.

#3) Shop Around

One of the best things you can do before getting a mortgage, according to Jeffrey English NJ, is to shop around at different lenders. Be careful not to let each lender run your credit because this could have adverse effects. The more hard checks you have inot your credit the worse your credit will go. You should explain your financial situation and work history to each lender, bring necessary paperwork, and give them a rough estimate of what your credit score is.

If each financial insulation has this information they should be able to give you enough information about what type of loan they can provide you with. Shopping around for a mortgage allows you to find the best possible loan for you and your family.

#4) Ask Family To Co-Sign With You

If you are having a lot of trouble getting a loan because of your freelance career you may want to ask a family member to co-sign your loan for you. Asking a family member that you trust and respect to cosign a loan for you may help you get a very good offer and a loan that is better than you could have gotten on your own. Do not ask a family member that you do not trust because this could cause problems in the future.

#5) Wait

If you really are unable to secure a mortgage using these tips the best thing you may be able to do is to wait. Waiting until you have a steady income or have the necessary two years of work income may be your best option. There is no need to rush into buying a home if you are not fully qualified. Rushing into a home could cause you to do more than you need to.

If you are a freelance graphic designer it may be difficult to secure a mortgage. While you are able to get work and provide a steady income for you and your family, many financial institutions are still not comfortable lending to freelance. These tips can help you secure a loan

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How to Continue Building Your Real Estate Empire During a Pandemic

By on April 7, 2020

There are curve balls being thrown into every industry on the planet. Real estate is not immune. But good ideas and innovations are coming out of the crisis. People are not willing to give up business or buying homes.

But, according to Rusty Tweed the logistics are the issue. The main arena where selling takes place is inside the home where the agent does their best work. How can you lose the magic of the home staging process during a pandemic?

The way to win in the Real estate business right now and continue to build your empire is thinking about standing out. People are going to want to connect. Be the Real estate company or agent that is seen and taking care of business. We do this with these few, simple and common-sense steps below.

1. Keep them Informed:

If you’re not selling then put yourself out there as a helpful safe space in the COVID 19 disaster. Create a page on your website especially for this. Then, create a free downloadable report providing guidelines for staying safe during the outbreak. Make sure there are internal links from that report and the landing page to your blog. Te blog should cover helpful things apart from germ warfare.

Tell people how to set up their home office, how to handle their kids being at home while you work in creative ways. Go as far as recipes for feeding your household at this time. Since you compete in your area, maybe research and tell others where to find food and supplies. Anything they can turn to you for is a good thing and will keep you in their mind says Rusty Tweed.

2. Stay Relevant:

Consider every way you can stay in the face of your clients and potentials. Use every platform you’re on consistently. Provide information where necessary. Do live FB or IG video to answer questions live. Start a watch party on an informative video. Start a YouTube channel and invite people to it. Make sure there are lines of communication open and your clients have your number and email.

Allow them to get in touch with you whenever they have a question. Remember that people are looking for comfort even when they don’t that’s what they’re doing. Be the person they go to when they’re concerned about the impact the virus will have on buying or selling their homes. Comfort them in a way they can trust. Always be honest. This means that in times to come, they can trust you and that means a lot for your reputation.

3. Use Technology To Show Homes:

The virtual world is a blessing for all of us in so many ways. Real estate agents are able to use this to show homes. Make sure you get the seller’s permission and show homes with a 3D panoramic view. Most people want to be there for certain stage in the home buying or selling process like inspections and such. For this, you can plan and take precautions. But, for showing homes you need not wait. Most people don’t mind viewing their homes of interest online. It also gives you the opportunity to FaceTime or Skype or Zoom conference with your people. They’ll appreciate it and it shows your dedication to your business.

4. Automate your Tech Platforms:

As we said before, social media is a must for times like these. In fact, it’s more necessary. It will be the most important part of the connection between you and your clients. If you need to be doing other things or have kids and added responsibilities then make sure you have a platform like Hootesuite or ones that have a nominal monthly fee or free trials and time out your posts. You can also go to Upwork or Fiverr and get someone to do the social media management for you.

The most important thing to remember is that people are looking for comfort and leadership. These are the only reason why you are doing the posting and serving at a time like this. People are still concerned about their own interests and they’re still afraid of change. The unknown seems to be right in our face now. So, you have to be the one that’s the light at the end of the tunnel. Out of this, we believe, everyone finds their tribe. Be sure that you put your best foot forward to attract yours by showing that you care and you’re the real estate agent for the people

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What To Consider When Hiring A Green Architect

By on August 5, 2018

Brian Setencich

Nothing is more exciting than building your own home. You’ve got to have the right architect during the initial phase. They have to envision your ideas and vividly map out your intention. The architect is first in line towards assisting you in making the best decisions regarding your ideal home.

You’ve already made the decision that you want to create a sustainable home, that’s energy efficient. So how do you know if an architect is compatible with your visions or not? The architect’s job is to determine the design and functionality of your home, as well as help you with the financial costs involved in construction, plus the actual construction itself.

The Architect’s Purpose

What defines an architect’s purpose? Is it just the stylistic appearance of the home, or are performance and durability a factor in the equation? An architect has to consider aspects that are more than just aesthetics. Some people seem to think that it’s the main factor regarding the home. There’s so much more that goes into consideration during a home buying experience.

As an architect, you have to think about the functionality and efficiency of the home, before its beauty. If these factors are not integrated into the designing, it becomes an afterthought and takes away from the overall integrity of the home.

One of the things that great architects like Brian Setencich have to do is educating the home buyer on the benefits of investing in the energy efficiency aspects of a home. Building science is an integral part in maintaining long-term durability of a home. It’s a component of architecture, just like the interior and structural designs are as well. All of these factors fit into the overall architecture of the home.

Investing For A Bigger Purpose

There seems to be a stigma regarding making the house more green; it will increase the initial costs. Sometimes, that is a fact. Although it might cost a little bit more initially to create the level of preferred performance, the benefit of taking this step is that it will cost less to operate the home. There are lots of simple techniques in framing and insulation, that can be detailed into a set of construction drawings, which doesn’t necessarily cost more, it’s just a change in technique. The fact that the homeowner is exchanging upfront costs for lifetime savings means you can get more home for your money. Your money will be going towards the mortgage which is most people’s biggest investment.

Start With Green To Save Some Green

Being one of the biggest investments people will make in their lifetime. Consumers owe it to themselves to research that process thoroughly. Investing in a green inspired architect can be beneficial in many ways. From saving on energy expenses to reducing our carbon footprints. The architect’s purpose, style, and integrity have a lot to do with happy homeowners. And yes, aesthetics are still an important factor, but so is durability, performance, and efficiency. Designing and building a holistic home is another easy way to be green, and it’s a whole lot easier when you work with an architect like Brian Setencich.

We all have to work together toward a greener future for humanity’s sake. Brian Setencich is on a mission to help you see green, so you can be green, and inevitably, save a little green.

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How To Tell If An AC Repair Company Is Honest

By on June 12, 2018

When your air conditioning is down, the heat it on, literally and figuratively! You want to be able to return your home to the comfortable temperatures you enjoy year round as fast as possible, but you also don’t want to pay for shoddy work or unnecessary repairs. So, the question is; how do you tell if an air conditioning repair company is honest?

You should check basic reviews and licenses for any company. Angie’s List, HomeAdvisor and Yelp are all basic places to check the review of a company. Any company’s website should display their license and certifications. If they are not displayed, move on to the next one. The Better Business Bureau is also a reputable organization that can tell you the reputation of a business at a glance. All Year Cooling Florida BBB rating of A+ is the kind of rating you’re looking for.

With a reputable HVAC company, you should also feel confident in their prices and their diagnosis. If the price is shockingly low or for a “limited time only” think seriously about getting a second opinion. Major repairs shouldn’t be taken on without at least sleeping on it, and don’t feel pressured to make a choice as soon as possible. A trustworthy repair company with be happy to let you take your time and get a second opinion from All Year Cooling Tommy Smith if necessary.

Of course, the best way to be sure that you can trust your HVAC contractor is to build a relationship with them. The ideal way to go about this is through regular maintenance of your HVAC system with your preferred contractor. With a company like All Year Cooling duct cleaning, fluid checks and other regular maintenance can ensure that major problems are caught ahead of time, as well as helping to build a trusting relationship with a service provider.

Beware of HVAC repair scams and make sure that any contractor has good ratings and a good reputation before calling them, and look out for the warning signs of a fraudulent contractor. Reputable companies like All Year Cooling Florida would never sell you a used part, an oversized HVAC unit, or try to schedule routine maintenance services more than once or twice a year.

A diligent and professional repair company should listen to your concerns, be straight with you about the pricing, try to diagnose the problem, and give you as much information as you ask for. If they are unwilling or unable to answer a question for you, they are not the right company for your needs. Part of their job is to help you understand what needs fixing and what could be done to prevent the problem in the future.

As with any business transaction, use your common sense too. This is especially important as an HVAC system can have a huge impact on your quality of life and the quality of your home. If the company is unprofessional when you call, keep going down the list. If they suggest that they know the problem over the phone, keeping on moving down the list! A repairman who comes out and doesn’t seem to have any details that you haven’t already provided, is rude, disrespectful, or doesn’t examine your equipment is a red flag and means you should move on and call another company.

In closing, we hope that you will consider vetting All Year Cooling Florida for your HVAC repair and maintenance needs. We offer A+ BBB ratings, financing, and professional, knowledgeable repairmen. Enjoy your summer, and your home by keeping your HVAC in good, working order!

 

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Reasons Why Commercial Real Estate Brokers are Loving Phoenix Arizona

By on May 10, 2018

Luis Enrique Coll
Since the recession 2008, the real estate market in Phoenix has made tremendous recovery, thanks to a healthy growing economy, increased purchasing power among the populace and self-confidence. For years, the market has consistently ranked among the top 10 in job growths. The number of professionals working in the real estate sector has also been growing due to the increased opportunities. According to AZ Big Media, Arizona had slightly over 45,000 sales agents and 12,000 brokers as of January 2018. Statistics also indicate that as many as 57,000 active licensees operated in the state during the same period. An assessment of the Metro Phoenix Area indicates that limited inventory is the key driver of property sales. With the hottest markets being North Scottsdale, Paradise Valley, North Glendale, Central Scottsdale and Sky Harbor South.

Although the real estate prices have been rising steadily, they remain largely affordable compared to the others in western US metropolitan areas. The Metro Phoenix median home prices stood at $247,000 in 2017. During the recession, Metro Phoenix experienced some of the highest rates of repossessions. Today, the number has dropped to near normal levels. The rates of foreclosures in 2016 and 2017 fell by 22% and 28% respectively. The other interesting development concerns the entry of Millenials and the return of renters into the city’s real estate arena. The surge in Millenials is attributed to recent changes in the conventional loan limits, which was raised by 7% from $424,100 to $453,100. The adjustment has made it easier for new home buyers to go for pricey properties. Analysts expect the growth curve for residential and commercial real estate in Phoenix to continue growing into 2019 as builders buy more lots and expand inner-city infill projects.

Why the commercial real estate brokers love Phoenix Arizona 
The stable Phoenix Arizona, commercial real estate market is witnessing many new constructions driven by macro demand factors like positive job outlook and population growth. The brokers working in the city have also been expanding their operations. The ranking of brokers is largely based on the number of agents working under the broker’s auspices. According to the Real Estate Show, brokers and buyers are drawn to the commercial real estate market in Phoenix due to the following prospects:

1. Capital of Arizona – as the state capital of Arizona, Phoenix enjoys a head start when it comes to resources and opportunities. With these benefits, many people, including professionals, home buyers and brokers have been relocating here in large numbers thus boosting the local real estate market.

2. Affordable real estate – the real estate market in Arizona is generally more affordable, and this is drawing many real estate brokers and buyers into the city and state in general. The elegant homes and commercial properties in Phoenix also feature bigger lots and ample parking space, which makes them highly ideal for growing families.

3. Outdoor paradise – the great year round weather permeated by clear, sunny skies make Phoenix an ideal place for families and homeowners to live and enjoy outdoors activities. The beautiful scenery is further enhanced by presence of lush desert valleys, lakes and crimson mountains.

4. High quality of life – Phoenix residents enjoy high quality of life due to high levels of income and reduced expenses. Real estate investors and brokers are enjoying handsome rewards because the number of people with disposable incomes is growing. Unlike other big cities in the US, people living in the city also enjoy hassle free living.

5. Promising office, industrial and retail markets 
Commercial real estate ventures in Phoenix promise great returns to would be investors. According to AZ Big Media(2), the net absorption rate for offices surpassed 4.7 million in 2016 due to strong jobs growth. The sales and leasing activities for industrial properties has also been on an upwards curve. In 2016, the absorption rate hit 6.9 million square feet. The growth was attributed to positive signals in the housing market. Regarding the retail real estate market, the rent rates went up in 2016 while the net absorption rates fell. Real estate experts see this development as a sign of measured, but steady improvement.

About Luis Enrique Coll 
Luis Enrique Coll is a real estate magnate, whose company, the Alco International Group has interest in the US, Venezuela and Panama. One of the latest developments to be undertaken by the company is the mixed use Adagio Fort Lauderdale in Florida. Every project that comes into stream is developed in line with the company’s mission of creating life changing spaces that generate value and enthusiasm. Besides the functional architecture, Alco International Groups has greatly transformed the communities it is operating by creating jobs. Under Luis Enrique Coll watch, the company is committed to bringing more commercial and residential properties to fill the demand gap.

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Should You Take Out a Loan to Get Your Land Development Company Off The Ground?

By on January 19, 2018

Marty Stallone

The real estate market is booming in many places across the country. As a result, there are numerous people who are interested in investing in real estate. When most people think of investing in this asset class, they envision purchasing a home and renting it to tenants. However, there are many ways to invest in real estate.

Land development is a great opportunity for people who have the capital to invest. Land development is a type of investment that usually takes several years to see a return. Some people are interested in starting a land development company.

How to Get Started in Land Development

Developing land is a long process. Marty Stallone is someone who has a lot of experience in this industry. He is the owner of Metropolitan Development Group. Over the years, he has worked on countless projects designed to help cities develop areas of land into commercial or residential areas.

One of the most important aspects of land development is simply having a vision for the future. There are cases where rural land has turned to a commercial paradise in under a decade. Marty Stallone likes to work with people who have both real estate and business experience. Owning a business teaches people many aspects of the business world.

In order to get started with a land development company, getting some sort of education in the industry is critical. There are few people who understand the process of developing areas of land. In addition, there are few college classes that people can take on the subject. Although a degree in real estate would help, working with a land developer is really the best experience anyone can get. Before starting a company, it is highly recommended to get experience in this field.

Financing

One of the biggest obstacles in starting a land development company is the financing required. Few people have the cash to buy and develop large areas of land. As a result, borrowing money is often required.

There are some people who think that borrowing money is bad in a business. However, Martin J Stallone has had a lot of great results from borrowing and investing money. He recommends that new business owners start off slowly at first. Borrowing too much money can restrict the cash flow of a business.

Working with a local bank is usually the best way to get a business loan for land development. Local lenders are generally more willing to lend money to people who are going to use the capital to invest in the local area.

Finding Property

When starting a land development company, finding customers is not an easy process. There are numerous people who do not even understand what land development is. In addition, few people want to give up land to see it developed for commercial or residential reasons.

There are several ways to find a property to purchase. Going to an estate sale is a great way to find distressed property. In many cases, relatives of someone who has died live in other parts of the country. Instead of managing the property, the family members would rather sell it to someone else. As a result, it is possible to purchase a property at a steep discount.

Martin J Stallone recommends purchasing a few properties in the beginning. This will give a business owner the opportunity to develop land on a small scale in the beginning. Some people are in such a rush to get started that they end up making major mistakes along the way. This is the wrong approach to take in running a land development company.

Paying Down the Debt

Once a business owner has a lot of customers, managing the debt payment is usually fairly easy. However, it is a good idea to pay down the loan over a long period of time. With less debt, a higher percentage of the income coming in can be used to invest in the business. There are some land development companies that have millions of dollars in debt. Although it is possible to run a business with a ton of debt, it is much less risky to pay down the debt and use the proceeds of the company to invest in new land ventures.

Although starting any business is hard, there are many opportunities for new land development companies with the growth of the real estate market. Now is a great time to get started in this area of the economy. People like Marty Stallone are a great resource to learn from.

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Why Taking Out a Loan to Start Your Dream Business Isn’t Such a Bad Idea

By on January 16, 2018

Chrissy Weems

Starting a business requires initial capital, perfect timing, a lot of research, and a very sizeable dose of luck. Failing to meet any of these conditions can be detrimental to the long-term success of the company. Generally, the hardest criterion is obtaining the necessary investment as most businesses require purchases of initial equipment, legal and start-up fees, employee costs, and other fixed expenses like prepaid rent and utilities. Thus, obtaining a loan could be one of the best options available to those who may lack the necessary lump sum of money. Further, there is an entire break-down of all the positive consequences of taking out a loan!

Builds Credit

Credit scores matter. Not just because successful entrepreneurs like Chrissy Weems know so, but because they quantify someone’s trustworthiness. Positive spending histories can help obtain business partners, get involved with larger projects, and take out heftier loans in the future. Thus, when a business is first starting, the owner might get a chance to (re)build their credit through financing which lays the foundation for any future growth.

Great Offers

As financing companies and large banks compete with one another, the party that gains the most are consumers. By driving down each other’s interest rates, these lenders make it possible for prospective businessmen to take out a loan and actually make money on it! How? Time value of money. The rule of thumb states that money someone has right now is worth more than the money they will hold in the future. This is why banks expect more to be repaid through loan interest. However, with low yield, businesses can take out a loan and pay it back fast enough to actually benefit from the time value of money concept.

Motivates

In case someone’s business is just starting up, banks will, by default, not have a lot of trusts. To compensate for that lack of faith, they will require the borrowers to classify certain assets as collateral. For example, failing to make a payment means that someone loses their company’s truck. Although it sounds intimidating, it can be a motivational factor. After all, not a lot of things will push someone to meet their sales expectations as the fear of losing assets or having to pay high late penalties.

Opens Many Doors in the Future

The first point mentioned that building a respectable credit can be useful in the future. One of the ways is that a good relationship with a major lending company can be fruitful infinitely. If someone takes out a loan that gets repaid in time, they will be a welcomed customer in case they need any more loans later. Since growth often requires expansions like purchases of additional equipment, openings of new locations, and so on, being able to get additional loans could be important.

Emergency Funds

If the initial cost of business is $100,000, hypothetically, the entrepreneur should have at least 1.5 times that amount. This is because of all the unforeseen consequences that can occur. Unless someone’s experience matches that of Chrissy Weems, they may not be aware of countless issues that often come up with manufacturers, business partners, tax implications, shipment dates, legal perspectives, and more. All of those can facilitate a lack of revenue and one will have to fall back on their original capital that might already be spent. This is why it is important to have a cash-based emergency fund that contains liquid assets. So, a portion of the original capital should be left aside and a loan should be taken for any differences. Postponing the loan process is not beneficial as it will also delay the delivery of the capital that may be needed fast.

Not Too Many Other Options

Unless someone intends to do an initial public offering and sell stocks in their corporation, raising money can be a nightmare. Small business owners could, theoretically, look to their friends and family to help with the cost, but this will not happen if they do not share the vision. Also, letting outsiders aid with expenses may be leveraged with a high-position within the company. This often results in a long-term loss of authority that no business owner wants to go through. Hence why a lot of corporations always leave the owners with 51 percent of outstanding shares. Therefore, getting a loan could be the only way to sidestep this money-borrowing stage.

Skepticism related to financing is often justified due to factors like high APR, long repayment period, and unreasonable collateral. At least that is what applies to personal loans. With larger, business-starting loans, however, all of those factors should be outweighed by the potential of making money. If one is profitable, they will cover all of their liabilities without paying much thought to it!

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Best Way To Predict Cycles In Real Estate To Invest Wisely

By on July 17, 2017

Investing in the real estate industry is a decision that comes with a lot of potential for benefits as well as the likelihood for losses if you toss the coin recklessly. In many cases, people emerge with success but the few that fail are the ones you need to focus on so you will not make the same mistakes. Predicting cycles in the real estate industry is one of the easiest ways you could obtain useful information that will help you invest based on facts and with the assurance that you will get your returns within the right duration.

What are cycles in real estate?

Before working on the specifics, it’s vital to understand what cycles in real estate are. Basically, real estate cycles are phrases that signify changes in the market. The market generally rotates through four cycles and this is repeated through a predictable pattern. The cycles, in this case, include recovery, expansion, hyper supply and recession. To help you understand each better, here is an overview of the different real estate cycles and what they mean to you as an investor.

  1. Recovery

Let’s pick an arbitrary starting point and assume that the market just recovered from a downward trend. The phase into which the market moves from a downturn to regain stability is what is referred to as recovery in real estate. This simply means the market is not in a ‘free fall’ any longer and has begun taking an upward trend. If you would like to make profits shortly after, this is an opportune moment to buy real estate.

Some of the indicators of this phase include widespread yet stabilized unemployment, many foreclosures and general fear in the population. At this phase, many people will be swearing that they would never waste their money in real estate, but you should not go with their ideas because they are informed by the frustrations that come with the downward trend of the market.

  1. Expansion

The second phase is an expansion, and in this one confidence in the real estate market starts to return. It basically represents calm and the beginning of prosperity in the market. Profit margins look good and the environment is favorable with prices rising due to a decrease in supply and increase in demand. It is a phase where more people can now afford buying their homes as opposed to renting.

  1. Hyper supply

Going by the perception that the market has recovered and the returns are attractive as seen in point number two, more people invest their money into new projects and this leads to an oversupply while the demand remains unchanged. Mass building projects also mean a skyrocketing of prices because investors are too ambitious and their perception is that the market is open and fully recovered to accommodate their new projects. However, this is what leads to the last phase of the cycle explained below.

  1. Recession

As supply rises beyond the level of demand in the market, the market collapses and projects that seemed promising few years ago cannot sell, a case that drives prices down quickly. Foreclosures follow and more owners realize they cannot pay huge mortgages they took because rent prices are forced down, and vacancy becomes commonplace. This is the scenario that was seen in 2007 and 2008. If you have any idea to invest in real estate, consult with several experts including a Tampa auto accident lawyer who is also experienced in matters real estate to help you make a smart decision based on the phases explained here.

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