You can Afford Your Home with CitiMortgage & Citibank Loan Modification
Everyone is welcome to apply, even if you have already tried to get a loan modification and been turned down. The government requires that this plan be available to every homeowner if CitiMortgage and Citibank are to be part of this program. If you need this help, now is the time to ask for it. If any one of the following conditions applies to you, you may qualify for a loan modification:
1. Do you live in the home for which you are requesting the loan modification?
2. Did you negotiate your loan before 2009?
3. Is your remaining mortgage debt less than $729.750?
4. Is your current mortgage payment more than 31% of your gross income (this includes all dues, insurance and taxes)?
If your answer to any of these questions is yes, you are eligible to apply for an affordable home plan. Note everyone who applies will be approved however. If you can show good reason why you qualify under these requirements, you may be able to have your loan's interest reduced to as low as 2% for as long as 40 years. The reason the government has put this plan into place is to help you get a mortgage you can afford, and this is deemed to be 31% of your income before taxes. Citibank is motivated to help you as they receive money from the Treasury Department for every approved application. Another additional incentive is a payment of $5,000 to homeowners that do not default or fall behind on their newly negotiated mortgage for five years.
Before you call Citibank and before you fill out an application, make sure you have everything that is required so there are no glitches in the process. Take the time needed to study the application since the application is vital to your success. Once you know you have everything you need to precede, call Citibank and begin the loan modification process.
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Buying Real Estate - A Guide For the Savvy Investor
The world is smaller. Internationals are looking to buy property here because it is cheap and abundant. There's a fire sale going on and you don't want to miss out.
Warren Buffet said in his famous quote "Be fearful when others are greedy, and be greedy when others are fearful."
My financial mentor by proxy, Robert Kiyosaki says that we are moving from a three class system --the Poor, the Middle Class, and the Rich, to a two class system -- the Poor and the SuperRich. I don't know about you, but I choose to be in the SuperRich class. Guess how most of us will come to be a part of the SuperRich? You guessed it...most will make their money in Real Estate! Even if you, like me have other interests and hobbies, real estate is a great place to start building a nest egg!
Folks, now is the time to let go of fear and get greedy. Not greedy in the bad Mr. Scrooge-sort of way, but get greedy in the let's make it happen now - I have the power to uplift my whole community if I can get my stuff in gear and make some moves in this market - sort of way.
The pundits say that the market will bottom out this year, which means act now. Act soon. Just Act.
So how can you get in now, when the getting's good?
Step 1: Stop Listening To The News.
Alternately, I should say stop internalizing it. The news is driven by fear. There is opportunity everywhere. Realize this before it is too late. People will look back on this time we are living right now and say "Wow - that was when the money was made." In five years you will wish you had acted now. The wealthy are still strong. You can become one of them. Live in the world of infinite possibilities.
Step 2: Get Informed
Use the Internet as your first step. The more informed you are, the better you are able to snag some deals. You can research target markets, trends, neighborhoods etc, and learn about the good deals cheaply and often before everyone else does. Get your preliminary information together. Craft your housing dream. This may include a personal residence or investment residences that you plan to buy and hold for later.
Step 3: Figure Out What You Really Want
After you have done your research, make a list of what it is you really want. Make a plan for what you really want. Maybe you're just starting a family and are a first time home buyer (you get the sweet $8,000 first-time home buyer tax credit!). Maybe you simply want to buy your first home for now, and build up to owning a couple of investment properties that you will rent out. Maybe your kids are grown and you want to rent your home and move into a smaller apartment. Maybe you would like to take a humanitarian role and buy a couple of section 8 homes (which cash flow like crazy!). Maybe you want an apartment building. Maybe you want to purchase some commercial properties. Find something you like that fits you.
Also, figure out what you can afford vs. what you are willing to pay (these can be very different). For instance, I wouldn't recommend paying more than a third of your income toward your property if you are paying off a mortgage.
Some advice and things to consider when deciding what it is you really want:
DO buy in a district with good schools. When you are ready to sell your property, this will count a lot to most home buyers and substantially raises the value.
DO plan for holding costs, such as the mortgage you will be paying while you are fixing your property up preparing it for sale, or while you are finding a good tenant.
DO your due diligence in finding a tenant - a bad one will cause you a world of pain. Spend time up front finding a good one.
DO buy with equity.
DO get a good deal on a home that has been on the market a long time.
DO make good use of the fact that we are in a buyers market.
DO think long-term. A buy and hold strategy works better in this market than buy and flip.
Step 4: Cash, Credit, and Hard Money
Once you have figured out what you want, you need to figure out how you will pay for it. It's no secret that we are in a new matrix. Banks aren't giving away loans like they were two years ago.
1. Cash
If you are among the wealthy and can pay cash - all the better (get those jaws off the floor - there are still, and will continue to be, scores of people that can afford to do this!). My advice is to definitely contact a real estate wholesaler because cash is still king. With a wholesaler you can easily find what you are looking for for as low as 50 cents on the dollar.
2. Credit
If you need financing from a bank, they have tightened their requirements and you will need a better credit score and a good down payment. Regardless, you can still get a mortgage loan if that is what you are looking for. Have a good credit score or raise a poor one. This is not as daunting as it sounds. It can be relatively easy. Pay off old debts. Clear negative remarks. Get some help. It can be done. Next, you will need a 20% down payment.
3. Hard money
Hard money is awesome. They are like banks but their terms and rates are very different. If you are not familiar, find and read a good article on hard money lenders.
Hard money is an option when cash and bank credit are out.
Step 5: Shop for It
Communicate your needs and wants to either an agent or a wholesaler that can help you get what you want. Develop this relationship. Real estate wholesalers often have their finger on the pulse of the deals and they can find you what you want before everyone else does, and at a much cheaper price. Whichever way you decide to go, whether it is with a realtor, a wholesaler, or even on your own through a for sale by owner sale (FSBO), take advantage of the glut of homes on the market.
No matter what you do, you should look for a discount. In this market, the deals are out there and you would be crazy to buy retail.
I would be very wary of those websites and 800 numbers that make you pay for listings of discounted properties, as these are usually scams and/or use old listings that are probably sold already. Also, banks keep information about their failed loans private, so any site that says that they list REOs (bank owned properties) is probably also a scam.
When considering a property, hire your own inspector and appraiser that are looking out for your interests exclusively.
Step 6: Buy and Enjoy
Congratulations! Whether your new purchase is for your personal use or for building your wealth portfolio, enjoy it and build upon it. Keep moving toward your goal of joining the SuperRich.
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Running Your Business Like A Pro: Focusing on 7 Areas of Business Management
Do you know how the lion tamer train a lion?
He enters the lion cage with a wooden stool on his hands. He points the four legs towards the lion. The lion, unable to determine which one to attack first, become helpless and powerless.
If you are a businessman or you know someone, you are aware of the many business activities that are going on in the life of a business. Entering into a situation where all of them clamors for attention can lead the business owner immobile and helpless. The phenomenon is known as paralysis by analysis.
Fortunately, all business activities can be boiled down to seven areas of business management.
The seven areas of business management are:
1) production
2) marketing
3) finance
4) accounting
5) human resources
6) management information system
7) product research and development
How do you know if your business is healthy? How do you know if your business needs help?
Ultimately, your net profit will determine if you have a good business or not.
The art of business management (in my own definition) is the ability to detect problems and address them as soon as possible.
Early detection is the key... before it reflects in your profit.
I made up a checklist to help diagnose the problem before it is too late.
This is not comprehensive but I believe it covers the essentials.
1) production
Supplies
Do the supplies of raw materials arrive on-time?
Do you have alternative raw material suppliers?
Production
How many percent of the time are your machines operating?
How many percent of the products that you produce where defective?
How much is your production cost?
Delivery
How many percent of the orders are delivered on-time?
How many customer complaints did you receive?
How many customer returns did you receive?
2) marketing
How much money did you spend in advertisement?
How many additional sales (from new customers) did you get after advertising?
Is the amount of money you earn from new customers greater than the amount of money you spend for advertisement?
3) finance
Is your personal money and your business money separated?
(this is a No - No. For small business owners, make sure you have separate accounts for the two)
Do you have enough capacity to pay for your business debt (liquid asset greater than liability)?
Are your customers paying off their debt (for those with installment payments)?
Do you have ability to pay your suppliers and other debts on the agreed time (payables)?
Are your receivables growing (amount of money owed by people from you) ?
Is your business expense growing faster than your sales?
Is your profit margin growing? (Profit Margin = Net Income / Gross Sales)
4) accounting
Do you pay your taxes correctly?
Are your financial records updated?
Do you have a financial system? (you can use free software like quicken or you can hire accountants)
5) human resources
Are your employees productive?
How many percent of your employees are constantly leaving (turnover ratio)?
Are your employees happy and satisfied?
If you are in a technology business, did your employee signed non-disclosure agreement when they started to work in your business?
Do you have a good relationship with your employees?
Do your employees have a good relationship with one another?
6) management information system
Who else know your trade secret? (Ideal should be only YOU).
Do the bad news travel fast and reach you? (Being hands-on has an advantage here)
Are your files safe? (who knows the password)
Do you have back-ups?
7) product research and development
Do you know your customers?
Do you know why they are buying from you and not from your competitors?
Do you know your competitors?
Are you doing things to improve your products?
Are your products customized for the needs of the customers?
How much budget do you allocate to research and development?
Are you protecting your intellectual property rights through patent, trademark and copyright?
Mastering the art of business management is a lifetime process. This is worth repeating. The key to running a good business is to detect the problem early and address them. Go for offensive. Don't wait for the problem to occur. work to improve the seven areas daily..
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