Archive for the ‘Finance’ Category
July 27th, 2010 | 
Author: Smart Real Estate Investors Reap Hefty Profits
Because Essayas the founder of Premier Real Estate Solutions LLC (www.ReadEstateMadeEasy.net) uses a different strategy he isn’t even breaking a sweat despite the slowing pace of home resales which were down 2.8 percent in January and the 5 percent drop in new home sales. In fact Essayas says that the market slowdown in major cities represents “the most exciting time for our business.
Utilizing private lenders Premier Real Estate Solutions buys properties in northern Virginia central Maryland and the District of Columbia at 25 to 50 percent below market value. The company then renovates the homes and resells them at market value.
Premier Real Estate Solutions makes its profit going into the deal through buying the right properties at the right prices. “As a rule of thumb we do all of our numbers right and build in our profit margin before purchasing the property” says Essayas. “We only buy two types of properties: those where we can quickly create equity through renovations and those where we buy equity from motivated sellers who need a quick sale.”
Now that the real estate market isn’t so forgiving Essayas says that buying the right properties at the right prices is key. “The numbers have to be right not only to ensure that our company makes a profit but to secure our private investors’ loans.”
Those numbers are providing hot returns on investments regardless of the price range of the home. For example Premier Real Estate Solutions purchased a home for 405000 spent 1000 in upgrades and sold the home for 599000. Similarly Essayas put 32000 of renovations into a home purchased for 229000 and sold it for 390000. “Recently within a three and a half week period we bought a home for 77000 spent 12000 fixing it up and found a buyer willing to pay 170000″ he says.
Using private investments to purchase and renovate homes gives Premier Real Estate an advantage over developers using institutional lenders in that the company can move nimbly when it finds a bargain. “The private capital we’ve been using has allowed us to close on these properties in as little as three days” says Essayas.
As for investors they appreciate being able to earn a better return through Premier Real Estate than they can with traditional investments. According to Harry Roupas who has made significant investments in Premier Real Estate Solutions properties over the past three years “The excellent returns I have seen on my investments demonstrates to me that Premier’s business model is sound. Buying properties below market value renovating them and selling them at a profit is the right approach for today’s real estate market but you need a Premier Real Estate to make it all work just right.”
And Premier Real Estate is hard at work planning to purchase between 50 and 60 properties in the Washington D.C. Metro area this year and looking to a future in larger development projects such as condominiums and hotels.
While Essayas anticipates that the market’s cooling trend will result in a longer turnaround time for sales he emphasizes that “we factor higher carrying costs into our equation before making an offer to purchase a property.”
He concludes “Because we never pay market value for a property to begin with we can continue to take advantage of the current real estate market to secure properties at prices well below market level renovate them and sell them at a profit.”
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Smart And Easy Steps To Debt Free Life
Being in debts is not a crime. This is what all consumers should keep in mind before they start taking loans and credits. But the fact remains that most debtors take loans often going beyond their affordability and fail to make the payments. What is required is a little awareness on debt related issues along with a planned budget that will help you to resolve your debt problems. Here are some useful tips to guide you when you are in debts.
Try out various options to repay debts:
Accept the fact that you are in debt and you have to pay off your loans. Do not file for bankruptcy without trying out the other options to get rid off your debts. It is always better to pay off the debt rather than declare a bankruptcy which will have a negative impact on your credit profile.
So coordinate with your creditors discuss your situation with them and initiate the negotiation. Some of your creditors may not be cooperative at all. But then negotiate with those who are willing to cooperate with you. Professional help from creditors can make it easier to deal with debts.
Do not acquire any more credit:
It is a general conception that one can repay previous debts by taking credit from some other creditor. This may help in some cases but if your income level does not support it then you better not go for this option. This is because you have already piled up a lot of debts and it may become difficult for to you to deal with so many loans at the same time.
You may also think of converting unsecured debts into secured debt but you may lose your home or car in case you fail to pay off the secured debt. Moreover you may not be able to find a suitable debt settlement program as these programs do not support consolidation of secured debts.
Assign a priority to your debts:
Prioritize your debts and try to pay off those accounts first which may lead you to trouble in the near future. For instance if you have not paid the power bills then pay them off first; otherwise it may lead to termination of the power supply. Also go for a tight budget and restrict your expenses to those items which are absolutely necessary.
Look for ways to add on to your income:
Look out for a part time job so that you can supplement your primary income with some extra dollars. This will add on to your budget and help you to repay the debts. Along with this also ensure that you are utilizing all the benefits that you are allowed to get. You may contact the independent Welfare Rights Agency to know about the benefits that you can possibly avail. For instance if your income level is low then you may get a discount on your rental expenses or on the council tax payments. Also go for an insurance policy that can help you with payments if you come across an accident.
Seek debt consolidation services:
Analyze your situation and then opt for a suitable debt consolidation company. Know how much their services can help you to recover from bad credit. Carefully go through the terms and conditions of the company and try to find out if there are any hidden costs involved.
Provide the counselor of the company with all the relevant details of your credit history and financial situation. This will help him to have a clear idea of how much you can pay towards the repayment of your debts and then he can come up with a suitable repayment plan so that you can get rid off debts within a shorter period of time. But the plan will only work out if you follow it strictly. For this you may have to spend as little as possible; but this is nothing against a debt free life.
http://www.debtconsolidationcare.com/debtsettlement.html
Knowhow of some useful tips can relieve you from your debt problems as these provide solutions as to how you can manage to pay off debt. These simple and easy steps will help you to get over your debt problems and this ensures that you will be leading a debt free life.
http://www.debtconsolidationcare.com/debtfree.html
About the writer:
Ryan Smith is a contributing writer to http://www.debtconsolidationcare.com/ and is involved with debt and credit related content development.
Small Business Tax Trap 1: Waiting To Incorporate What A Difference A Date Can Make
If you’re a sole proprietor perhaps you’ve consideredincorporating your small business or selfemploymentactivity.
And so maybe you’ve been wondering”When is the best time to incorporate?”
>From a legal standpoint any time is the best time.The sooner you incorporate the sooner you make the movefrom the world of unlimited liability to the world oflimited liability.
>From a tax savings standpoint any time is the best time.The sooner you incorporate the sooner you will startputting more money in your own pocket and less inUncle Sam’s.
(For more about the potential tax savings of acorporation see the second article in this series”Tax Trap 2: Double Taxation Isn’t Once Enough?”http://www.YouSaveOnTaxes.com/taxtrap2.html)
But from a **tax reporting** standpoint there is one timeof year that stands out as best: January 1st.
Why is that?
Assuming you have a sole proprietorship (or other entitysuch as a partnership) that is up and running as ofJanuary 1 and assuming you then incorporate thatexisting entity on any date other than January 1you face the possibility of filing not one buttwo business income tax returns for that year.
Here’s an example to clarify this important point . . .
Let’s say you’ve been operating your sole proprietorshipfor a few years and in early 2006 you decide toincorporate. In January you get around to startingthe paperwork but life gets in the way andyou finally get it done in late February. By the timeyour state processes the Articles of Incorporationthe start date of your new corporation is March 1.
For 2006 you must file a Schedule C for the periodof January 1 through February 28 when your businesswas still a Sole Proprietorship. And you must alsofile a corporate income tax return for March 1 throughDecember 31.
Maybe that’s no big deal. Maybe you enjoy filingone business income tax return so much filinga second one doesn’t bother you. And it may bethat the inconvenience of filing two tax returnsin 2006 is far outweighed by the legal and taxadvantages of incorporating.
Keep in mind too that 2006 will be the only yearyou have to do this “double duty”. In 2007 youwill only have to file the corporate income tax return.
But if you are thinking about incorporating thebest time to do it from a tax paperwork standpointis as of January 1. Only then do you have a “clean break”from the old sole proprietorship to the newcorporation.
This timing issue can also be relevant if youdecide to make the switch late in the year. Ifthe effective date of the incorporation is November 15you will have to file a Schedule C for January 1through November 14 and a corporate return forNovember 15 through December 31. In that scenarioyou should ask yourself “Do the benefits ofincorporating outweigh the convenience of waitinguntil January 1?”
So before you decide when to incorporate take a momentto reflect on the tax reporting consequences ofincorporating on January 1 vs. any other date.
Sometimes it may make sense to wait a few weeks(as in the second example) and sometimes it makes senseto “do it now” especially when January 1 is nearby.
NOTE: This is the first in a series of 5 articles:”Small Business Tax Traps and How To Avoid Them”
About the writer:
Wayne M. Davies is author of 3 taxslashing ebooks for small business owners and the selfemployed.For a free copy of Wayne’s 25page report “How To Instantly Double Your Deductions” visithttp://www.YouSaveOnTaxes.com.