What does my credit score mean?

Are you thinking about applying for a loan, or wondering why your interest rate is what it is? Chances are good that your credit score is going to play a big role in both. What is your credit score? Your credit score is your ability to pay your debts and how big of a risk to a lender you would be. The higher the score, the higher your chances of getting a good loan with a lower interest rate.


How is my Credit Score Calculated?


There are many factors that go into this. Roughly a third of your score is determined by your credit history and whether you pay your bills on time. Other factors that go into your credit score are how many lines of credit your have and how much of your credit you have used up. The more cards you have the better and the less credit your have used up the better.


What are Some Ways I can Check my Credit Score?


The first step to checking your credit score is to get your credit report. How do I get my credit report? You can go to one of the three credit bureaus and request a credit score. You can also go to your bank or credit union and request a copy. Each borrower gets one free copy of their credit report a year.


One thing that can affect your score is the accuracy of your credit report. There could be mistakes on my credit report that could affect my credit score, you might be asking? Yes, not all creditors report accurately on your credit report, so make sure that it is accurate by requesting a copy at least once a year to check for errors that can be holding your score down.


How Else can you Improve Your Credit Score?


Pay your bills on time and make sure that you don't get in over your head with debt. Repossessions and bankruptcies can damage your score and make it less likely to get a loan in the future.


Your credit score is going to be the way that a lender determines whether or not to give you a loan. If you have a high score you are going to have a better shot at getting a loan for a car or a house. Make sure you are keeping up with your credit report and paying your bills on time.


by: William Hauselberg

Using renewable energy for your business

All it takes is for cost of a barrel of oil to spike up, and once again everyone starts talking about renewable energy. Then just as fast as whatever it was that caused the price spike goes away, the conversation dies down. It really is all ridiculous too because the future is coming and it is renewable energy.


Now the fact is that the hardware for assembling your own renewable energy system became cost effective years ago and its growing even more as time moves on. That is that it the cost of putting together, say a solar system is about 30% less than the value of the power it produces over its service life.


The big problem though, is that while the power that comes off your power grid does cost more, it's on an easy payment plan. You simply get your bill once a month, pay it, and that's it. Simple and easy and this is what has so many people hooked. It's just easier that way.


However, for you as a business person, there is the public relations aspect that you have to take into consideration. That is that it's just good for business for you to be seen as a conservationist by your clients or customers and this trend in PR is only expected to grow.


By far the easiest type of system to set up is a photovoltaic solar system that uses solar panels. Now while they are quick to install and get online, they do none the less have a few shortcomings that you will have to contend with.


The first is that they only generate power in the daytime and electricity is expensive to store in batteries, but it can be done. The option that most people take though is to direct excess production back into the grid during the day, get credited for it and then draw it back out at night.


Now if your business is in an area where you have a steady supply of wind, then you need to know that a lot of progress has been made in wind turbines. New off the shelf, high tech turbines that can be generating energy for you in about the same time as it takes to set up solar panels.


The nice thing about wind turbines is that they operate 24 hours a day, just as long as the wind is blowing. Also if you have enough wind and buy a big enough turbine system, you can generate a very large amount of power.


One issue to consider with wind turbines though, is that they do tend to be a bit costly, and it's not just the cost of the turbine that can run up your bill. It's the tower, because good towers can be expensive and that particularly holds true for larger towers that you would mount a large turbine on.

Retirement implications for self-directed IRA investors

There are a number of financial retirement benefits connected to real estate IRAs and their investments. Due to the fact that your investment increases within tax-deferred and tax-free conditions, the amount you can accumulate is magnified greatly.


Real estate IRAs see their investment increase, but with the additional advantage of no taxes. For example, if you made an investment of $4,000 with compound interest under normally taxed conditions at a 31% rate, you would gain $286,752 after 30 years. However, with an IRA account at an 8% compound interest rate you can expect to accumulate $449,133; $162,381 more.


A self-directed IRA is generally called a checkbook IRA. This is because your investment is held in a checking account to which you have complete access. The advantage is that you can invest your funds immediately and you do not have to pay a transaction fee each time.


Some IRAs provide the option to lower how much of your income is taxed. For example, if you paid in $10,000 to an IRA and your income was eligible, then you could expect a tax deduction of $10,000. Some plans deduct over $50,000.


Due to protections of federal bankruptcy law, an IRA is normally protected from being touched by creditors or litigators if bankruptcy should occur.


A number of IRAs avoid taxes if you desire assets to be passed down as an inheritance after your death.


You can invest in non-traditional assets, such as real estate. The only areas in which you cannot invest are life insurance, capital stock in an 'S' corporation and collectibles.


Real estate IRAs provide the chance of a high return faster. This is because with a real estate IRA you are allowed financial leverage: your down payment depends on how much your lender asks for and not the value of the entire stock. For example, if you want to buy company stock at $100,000, instead of paying the whole amount you could purchase 50% at $50,000. If the stock then increases to $150,000 your return would be 50%. However, with your investment of $50,000, the increase of $50,000 will provide you with a return of 100% based upon the cash initially invested by your IRA.


Real estate IRAs allow you to be more diverse with your assets and thus more financially secure.


If you do not have enough capital in your IRA to buy a particular property, you can ask for a non-recourse loan. As you can only use your IRA money in such an investment, a non-recourse loan is the only option. You are not personally responsible to repay a non-recourse loan and if you were to go bankrupt this money could not be touched by any creditors.


With business funding you are entitled to a salary and business profits.


Many IRA companies offer low annual custodial fees. Because custodial intervention is minimal, there are less asset-based, holding and transactional fees.


by: Islandview Mortgage 

http://www.articlecity.com/articles/business_and_finance/article_15994.shtml

Inspirational Quote of the Day by Theodore Roosevelt

 

What to look for in a new garage door - and why you should replace yours now

(BPT) - At first thought, the dead of winter may not seem to be the optimum time to replace your garage door. In fact, quite the opposite is true: frigid temperatures and brisk winds readily prove the need to upgrade your garage door from an older non-insulated version to a modern, energy efficient garage door.

The garage door is generally the largest moving object in your home and offers the greatest exposure to the elements. An insulated garage door will maintain the temperature in your garage in the winter and summer and likely decrease heating and cooling costs. Insulated garage doors not only make the garage more comfortable inside but also affect the rooms adjacent to or above the garage. In addition, a well-insulated garage helps keep moisture out, and its sturdy construction offers a far greater noise-reducing sound barrier than non-insulated models.

What should consumers look for in an energy efficient garage door? For starters, check out the R-value. R-value is a measure of thermal resistance to heat flow and is how most garage door manufacturers show the energy efficiency of their product. The higher the R-value of a door, the more insulation you'll get. Second, look at the door's construction. Well-insulated doors will have a "triple-layer" construction, consisting of environmentally safe polystyrene or polyurethane thermal insulation between two layers of heavy-duty steel.

Homeowner Rob Slaughter in North Carolina recognizes the energy savings and noise reduction values of his new garage door. "The original garage doors that were installed when our house was built in 1999 were non-insulated single-layer of steel.  Insulated doors are far superior to just plain steel doors in performance - not to mention the improved appearance," Slaughter says. "The new doors are much quieter when we open and close them and don't have the hollow rattle of the steel doors.

"I could almost instantly feel our garage warming up after the installation of our new door, which happened to be on an unusually cold day in November. With the old steel doors, the outside temperature would come into the garage," he adds. "I fully expect to see a significant drop in my heating and cooling costs over the next year."

Of all the budget-friendly improvement projects you can complete before spring, a new garage door will not only save on energy costs, it will give you one of the best returns on your investment and provide a great value for your home. Over the last few years, surveys conducted by the Remodeling Cost vs. Value Report indicate that installing new garage doors has been a project in the top rankings for return on investment.

If you're not sure where to begin, check out the "How to Buy a Garage Door" guide on amarr.com or at YouTube.com/amarrgaragedoors. The guide is a helpful tool to get you started, offering great tips on the benefits of different materials and how to match a door with your home's architecture and character.

Whether your garage door withstands heat, wind, snow, rain or all of the above, it's the largest line of defense for your home. Make sure that it's working hard for you by reducing your home's energy consumption, increasing your home's curb appeal and adding to the value of your home for years to come.

 

Which comes first: The real estate deal or the buyer's list?

This question is kind of like another question where people can't seem to agree on the answer; "Which came first; the chicken or the egg"? Real estate investors all have a different opinion when they are asked whether you should find a deal first or start a buyer's list and then find a deal.  For me, the answer has always been "the deal." If you have a great deal, you can always find a buyer for it.


I had someone email me recently that said they had wanted to begin wholesaling houses for a couple of years, but he just couldn't bring himself to buy that first investment property. He was afraid he wouldn't be able to sell it. This man had spent a number of years learning the business, but had become paralyzed with fear over this prospect of putting a house under contract that he wouldn't be able to sell.


If you are just getting started and you find yourself having the same problem, here are 4 tips for you.


1. Know What a Good Deal Looks Like


This is no doubt the hardest part when you are brand new. You almost always pay too much for your first couple of deals. Before you sign on the dotted line, run your potential deal by someone that is an experienced investor. Marginal deals are hard to sell.  If you have any doubt about the numbers or the area where the house is located, just walk away and find another deal. There's always another one around the corner.


2. Know Where Investors Like to Buy


It won't do you any good to get a house under contract at a great price if it is in an area where investors don't like to buy.  Ask experienced rehabbers and landlords where they like to buy. Be sure to find out what types of properties they like, and the price range they prefer. In general, you will be pretty safe in bread and butter neighborhoods; the kinds of neighborhoods for first time homebuyers.  In my area there is a market for more expensive houses, but there are fewer investors in this group.  Buy houses that would work for either a rehab that would be sold to a retail buyer, or a home that would make a great rental and they will always be in demand.


3. Put an Escape Clause in Your Contract


This is vital especially when you are brand new.  Make the deal subject to inspection or partner approval. This is your safety net. It will make it easier for you make offers with confidence.


4. Begin Immediately to Build Your Buyer's List


There is nothing like having a good buyer's list to call or email when you have a property you want to sell quickly. It is truly a wholesaler's secret weapon.  These folks will be loyal repeat buyers if you always have great deals for them, and if you conduct your business with them in an ethical manner 100% of the time.


Implementing these 4 tips will make it easier to make those first offers and get your first few houses under your belt.

Finding a Buyer for Your Deal


There are a number of ways you can quickly find a buyer for the property you have under contract even if you don't have a buyer's list.


You can take the deal to your local REIA group where you will find a group of people that are looking for their next house.  At my monthly meeting, we have a table set up for vendors and for folks that want to put out fliers about properties they have to sell. This is usually the first place people head after signing in.


You could list the house on Craigslist. I have sold several properties there, but I would rather much sell to someone at my REIA group; they are usually more experienced investors.  But even if they are brand new, they will almost always be educated to some degree if you find them at this meeting. Most investors are more than willing to help them if they can close the deal.


Concentrate on getting a great deal, and you can be sure you will find a buyer.


Author: Sharon Vornholt


Sharon's Website: http://LouisvilleGalsRealEstateBlog.com