Real Estate Investment Trusts

Royalty trusts, in Finance, are classic flow-through investments vehicles. The trust, like a mutual fund, holds a portfolio of assets, which can be anything from producing oil and gas wells to power generating stations to interests in land. The net cash flow, i.e. the total cash flow minus revenues, is passed on to the unit-holders as distribution.

The purpose of a Real Estate Investment Trusts is to reduce or eliminate corporate income taxes. In the United States, where they are generally more widespread as investment vehicles, Real Estate Investment Trusts pay little or no federal income tax but are subject to a number of special requirements set forth in the Internal Revenue Code, one of which is the requirement to distribute annually at least 90 percent of their taxable income in the form of dividends to shareholders.

Real Estate Investment Trusts are, therefore, a special type of royalty trust. They specialize in real property, anything from office buildings to long-term care facilities. For illiquid assets like real estate, closed-end funds of this type make good sense. Open-end or ‘mutual' real estate funds are subject to new money and redemption problems, entirely absent in closed-end trusts. The first Real Estate Investment Trust was introduced in the United States in 1960. The vehicle was designed to facilitate investments in large-scale income-producing real estate by smaller investors. The US model was simple, enabling small investors to acquire equity interests in vehicles holding large-scale commercial property.

But the birth of Real Estate Investments Trusts as a mass investment vehicle can be traced directly to the liquidity crisis encountered by open-end real estate mutual funds all the way back to 1991-92, during the slowdown of real estate that characterized those years. Faced with redemption demands on the part of unit-holders, real estate mutual funds were presented with the unpalatable option of selling valuable real properties into a distressed market to raise cash. Many of them, therefore, chose to close off redemptions and converted into Real Estate Investment Trusts, since then most commonly known as REIT's. Only a few open-end real estate mutual funds continue to own real estate directly. Most now invest in shares of real estate-related companies.

The typical REIT usually distributes about 85 to 95 percent of its income (rental income from properties) to the shareholders, usually on a quarterly basis. This income gets a special tax break, because REIT's shareholders are entitled to a deduction for the pro-rata share of capital cost allowance (depreciation on the real properties). As a result, a high percentage of the distributions are normally tax-deferred. However, the amount will vary from year to year and will differ depending on the particular REIT.

As with royalty trust, the value of tax-deferred income will reduce the adjusted cost base of the shares owned. For example, if an investor purchases 1,000 units at $15.50 per unit, receives $3,000 ($3.00 per share) in aggregate tax-deferred distribution over time, and the sells the shares for $17.50 each, the capital gain will be calculated as follows:

[1,000 x ($17.50 - $15.50 + $3.00)] = $5,000 before adjustments for commissions. In Canada, this gain will be subjected to capital gain treatment, so only 50 percent or $2,500 will be included in income and taxed accordingly. In fact, Canada allows preferential tax treatment to REIT's by making them RRSP-eligible and by not considering them foreign property (which would taxed at a higher rate), so long as the real estate portfolio does not contain non-Canadian property in excess of the allowable limit.

REIT's yields and the market price of units tend to be strongly influenced by interest rates movements. As rates drop, prices of REIT's rise thus causing yields to drop. On the other hand, when interest rates rise, prices of REIT's drop thus causing yields to rise.

For example, when interest rates were pushed up by both the Federal Reserve Board and the Bank of Canada all the way back in 2000, the typical REIT was yielding close to 14 percent as prices per share fell. When interest rates subsequently dropped, yields fell to less than 10 percent as demand for REIT's increased thus pushing share prices higher.

This is a very important consideration to be kept in mind when investing or otherwise trading units involving this type of trusts. If interest rates appear to be poised to rise, investors may want to defer purchases, and those who own this type of shares already may consider reducing their exposure by selling and take in some profit.

There are typically two catches with REIT's. The first is that since investors are ‘unit-holders' rather than shareholders, they are potentially jointly and severally liable together with all other unit-holders (plus the trust itself) in the eventuality of insolvency. Instead of limited liability, investors rely on the REIT's management to have property, casualty and liability insurance, prudent lending policies and other reasonable safeguards in place. Nevertheless there is always the possibility of a problem - say a catastrophic fire or a building collapse - that is not covered by insurance. This may have seemed like a very small matter prior to the attacks on the World Trade Center in 2001. Since then, however, it is something that has to be taken seriously.

The second problem with REIT's is less transparent. All real estate properties depreciate in value over time (not the land, only the buildings). Depreciation can be somewhat slowed down by earmarking at times significant amounts of money for maintenance and renewal of facilities. Since most of the REIT's income is being distributed and the capital cost allowance is being allocated to investors, investors are factually getting their own capital back over time. As such, the book value of the underlying real properties will be steadily depleting.

Obviously, if real estate markets are on the upswing the depreciation factor will not be overly important, since it will be offset by the appreciation of the underlying assets. But in essence, the point is that the long-term income stream is quite variable, certainly more variable than some managers would have investors believe.

As stated above, the inverse relationship between interest rates and prices of REIT's shares plays an important role. On average, it is safe to assume that interest rate increases are likely to be met by REIT's price declines in the Stock Exchange, because increasing rates correspond to a slowdown in the economic growth and less demand. But out of the context of the frantic buy and sell of Wall Street, even a slowdown in the market for single-family houses can actually benefit REIT's. This is so, because even though real property prices are in decline, it is still cheaper to rent than to own, especially during a period of rising interest rates. And REIT's thrive on rentals. In fact, no city is a better environment for REIT's to operate in than New York City, where some 70 percent of residents rent.

Luigi Frascati

For Real Estate - Commercial Real Estate Loan

Buying a real estate for commercial purpose is always a trouble as it require huge amount of investment. A real estate can be defined as a combination of property in form of land with any other property on it such as buildings, complex etc and is highly profitable for your business ideas. Commercial real estate loan can be your financial partner for such investments in real estate deals at the right time. Commercial real estate loans are available for all types of income producing commercial properties including:

oOffice buildings and shopping centers

oOwner occupied buildings

oMotels and apartments

oAutomobile dealerships

oHealth care facilities

oManufacturing facilities

oMiscellaneous

Commercial real estate loans are secured by the real estate itself and offers you huge amount ranging between ₤100000 to ₤300000 and can further extend if required. As the amounts are bigger, the repayment period also has to be longer...yes, the repayment term lies between 10 to 30 years. You can choose a repayment term while keeping your repayment capacity in mind. The borrower is required to place the title of the real estate to the lender at the time of loan agreement, while the possession remains with the borrower. The lender can only take the possession if any default is made in repayments for the commercial real estate loan.

There are certain points which you should consider while applying for a commercial real estate loan:

oA Definite plan - A plan for the use of loan money will convince the lender in a much better manner. Lender will also like to know the expected period in which you anticipate completion of planned project.

oCash ready to put into the project - Lenders will also look that you have sufficient ready cash to be put in the project to cover a percentage of the project.

oReviewing balance sheet - Review your balance sheet and analyze your cash flow and liabilities before applying for a commercial real estate loans. This will ensure that you have sufficient money for running your commercial property simultaneously paying off the loan.

oNegotiate the best deal - You can take the help of a competent real estate attorney who can help you negotiate and get the best deal while reviewing commercial real estate loan offer.

oDocumentation required: It is recommended to arrange all the documentation which a lender can expect. Also you should be prepared to convince the lender that your idea of commercial real estate project will yield enough finances to repay the loan.

oResearching your options - make sure to go through all the option available before finalizing any commercial estate loan deal. You can take the help of online websites to search among numerous free loan quotes available on these sites.

In conclusion, we can say that considering all these points will ease your task of getting a commercial real estate loan and shorten the gap between you and your success ideas with your own real estate.

Ninety-nine Years Of Fiscal (cliff) Policy

The Senate spent an intense and grueling 3 whole minutes pouring over the American Tax Payer Relief Act of 2012 before voting and passing the bill, 89-8. Our Senators are truly amazing as they must have read one page per second and still spent 26 seconds discussing it. Congratulations are certainly in order as both parties came together in a collegial spirit of compromise and goodwill to do the work of the people. Now we can all expect tremendous financial recovery since our politicians have saved us all from the ‘fiscal cliff’…a dreadful combination of porkless spending cuts and tax increases. The proverbial can has been kicked merrily into the distant future. We can all breathe easy and forget about it until March. No doubt, by that time, our servant-leaders in Washington D.C. will then spell out specific cuts and increases, agree on a new debt ceiling and good times will be here again. Historians will be writing about the miraculous recovery implemented by the most brilliant and responsible economic geniuses to grace humanity in 6,000 years.

Specific numbers are coming out and the spin doctors are now explaining to us who the winners and losers are from the bill. But we only need look at two numbers and compare them to know we have all lost again. The annual tax increase is projected to be $62 billion. Last year’s budget deficit was $1.1 trillion (or $1,100 billion). This leaves our politicians with only two choices. Government can take a massive pay-cut, essentially bankrupting itself. Or it can arbitrarily raise the debt ceiling one more time.

The truth is, America has been on this losing streak for a century. Ninety-nine years ago, the powers that be created the fiscal cliff. In December of 1913, President Woodrow Wilson signed a bill that gave away control of America’s money supply to the largest privately owned banks in the world. We call it the Federal Reserve System but there is nothing federal or reservist about it. Created to eliminate recessions and depressions, the exact opposite has occurred over and over again. Instead, the Federal Reserve marked the beginning of fiscal cliff policy—the monetization of debt.

This is how fiscal cliff monetary policy works. When the government needs more money (and when does it not?) it must raise taxes. But raising taxes is usually not politically expedient. So instead, the government goes to the Federal Reserve, hat in hand. In the hat are treasury debt certificates, or T-bills. The Federal Reserve purchases these notes of indebtedness. They create money out of nothing, pass it on to the government, and then proceeds to charge the government interest on this money that does not exist. The government uses the counterfeit dollars to buy votes. This counterfeit money makes its way into the money supply and the government’s back-door tax increases begin to take effect. We call it inflation. The American people get higher prices, higher interest rates, higher unemployment, economic slow-down—a recession. This creates a boom-bust cycle that intensifies in pain on a regular cycle or is delayed by more debt purchasing. This cannot go on forever. The real cliff will eventually be reached and Biblical laws of cause and effect that exist in the realm of finance MUST push us over.

Our fiscal cliff monetary policy violates biblical principles concerning debt, just weights and measures, stealing, coveting, partiality, rules on collateral, multiple indebtedness and the insanity of fractional reserve banking to name a few. All of these will be dealt with in more detail in future articles. Needless to say, it will take massive national repentance from the top down to avoid our coming fiscal cliff. I’m talking the kind we read about in the book of Jonah. But I don’t see our president sitting in sack-cloth and ashes and that goes for your neighbors too.

I can’t help but be reminded from a scene in the movie, Dumb and Dumber every time I think or write about debt monetization. Lloyd and Harry recover a million dollars that was supposed to be used as ransom money to recover a kidnapped man. While working their way to the rightful owner of the money, they decide it would be okay to spend some of the money along the way. When the kidnapper finally catches up with Lloyd and Harry, pistol in hand, he demands they open the case. What falls out of the case are dozens of slips of paper. The kidnapper is furious but Lloyd confidently assures him that, ‘the slips of paper are better than cash…they are IOU’s.’ Needless to say, the guy with the gun wasn’t buying it.

Phoenix Arizona Real Estate Schools

There are many colleges and schools located in
Phoenix. Are you searching to head off to school in
Arizona, or do you want to retire, or perhaps you want
to raise your family in Arizona! When you go to
Phoenix Arizona real estate school, you will graduate
with all the knowledge needed to have a successful
real estate business. Arizona produces more
professionals than any other state in America.
Phoenix Arizona real estate investments are scattered
through out the state and has plenty of opportunity to
new graduates. Areas like Scottsdale can be a great
investment to both the buyer and the seller, as this
is a real estate are that is booming right now.
Singles and families alike are moving to the Arizona
area, where jobs are found, and the fun in the good
weather is a great time for all. If you are
interested in going to college in Arizona, or if you
want to live in Arizona, the opportunities are just
waiting for you around every corner!

Phoenix Arizona home for sale real estate is what you
find here on the pages that are included on this site.
Information about how to get a mortgage and how to
complete the process is made easy for you. To make it
convenient for you to move from one area of the world,
to the real estate found in Arizona, you can find
homes for sale, that will meet your demanding family
needs, or you can find that suitable home for your
pets, your hobbies and your tastes. If you are looking
for a home in Phoenix, you should really start your
search online. Here, in the Phoenix home for sale real
estate section of these pages, you will not only find
homes that have the exact number of bedrooms that you
want, but also the yard, the driveway, the flowers,
the trees, the schools, and where employment is found.
There are over one million people living in Phoenix,
but there are plenty of homes, and exciting adventures
just waiting for you.

Phoenix Arizona homes for sale real estate is a
combination of many types of homes, such as one
bedroom, two bedrooms or even five bedrooms. There are
almost 500,000 homes in Phoenix, and the average age
of the homes found in Phoenix is just thirty years
old, making some of the most luxurious homesaffordable! Are you interested in a large home? You
will find that in that 500,000 homes in Phoenix, there
are about 23% that are four bedroom homes, and 49% are
three bedroom homes. Your entire family, or the family
you are still planning will feel at home, in your new
home in Phoenix. No matter how small or large you are
planning your family to be, you can have it all in the
home of your dreams in Arizona.

Phoenix real estate for sale is going to be difficult
to sift through if you are not sure what type of home
you want to purchase. We do suggest that you make a
listing of what you need, expect and want in your new
home. Do you want a deck, a large yard, a sunroom, or
you want to have three bathrooms, four bedrooms, or do
you require a home that is very centrally located to
where you work? Thinking about these items and topics
before clicking on the search button is going to help
you find that home you really want without getting
sidetracked with the many types of Phoenix luxury real
estate that is available for you to also choose from.
The luxury homes that are available include some of
the largest kitchens, the largest lots, swimming
pools, and have other perks such as home indoor
swimming pools, sauna rooms, attached greenhouses, and
much more. Making a list of what you expect from your
dream home will allow you to search for that home in a
speedy manner and without having to settle for any
less than what you would expect!

Phoenix residential real estate can be searched
online, in the pages of this site, where we show you a
complete listing of homes from the starter home, to
the high-end luxury homes that are available. The
market is constantly changing, so when you come across
a listing that you just love, that the layout fits
your every dream, be sure that you contact us about
starting your mortgage process right away. Have you
checked your credit lately? If you haven't checked
your credit score, and you are ready to get a
mortgage, order a credit report so you can review your
credit worthiness before settling on a home. You may
find your good credit will allow you to purchase an
even higher priced home that you can afford with your
new job while living in Arizona! If you already have
your career in place, and you are searching for a new
home in the Phoenix area, you are in luck; many homesare available now in areas near schools, near industry
and close to the conveniences you want most.

Scottsdale is one of the best places to buy and sell
real estate because it is the area that everyone
wishes to live in, no humidity, lots of sunshine and
exciting American culture. This is one of the best
resort locations in Phoenix if you are looking for a
high end, luxury home. Scottsdale is where some of the
most expensive houses are and the best real estate,
with homes that are not comparable to anywhere else in
the world. When it comes to buying a home, think
about living near Scottsdale. Scottsdale is one of the
most sought after real estate ventures, because the
area is exciting, fun, and prominent. Buying a home
in Scottsdale is one of the best investments a real
estate company or client could ever make.

Real Estate in Phoenix Arizona is quite a hot spot.
By the end of 2005, the number of houses sold in the
area was 35% more than it was at the end of 2004. It
is still considered a hot spot for real estate.
Although the economy has been weak, Phoenix Arizona
real estate for sale has risen, as well as, the buying
rates. New houses are being developed and Phoenix is
still a hot market for newly graduated students from
the Phoenix Arizona real estate school. It is
definitely the place where the market still seems to
be wide open and will easily attract buyers or estates
to new companies.

Once a client has located a home from the real estate
listings in the Phoenix, Arizona area, they will want
to talk to a representative. Your education from the
Phoenix Arizona real estate school comes in handy, or
your knowledge from any real estate education you have
had. With persuasiveness, you will be able to close
the deal by the end of the working day. Remember real
estate in Phoenix Arizona is easy to sell because of
the wonderful benefits the area offer the client; it
doesn't take too much persuasive skills to seal the
deal.

You may have to work some charm, but the selling won't
be hard because the houses or commercial real estate
will practically sell themselves in the Phoenix area.
When it comes to Phoenix Arizona commercial realestate listings, you may have to work a bit to get the
buyer who have the ability to complete the purchase,
but the area again will practically sell itself. The
area is not only one of the most beautiful places in
Arizona, but the security that the area offers can put
clients and potential clients at ease.

Are you interested in learning more about the
population in Phoenix and in Arizona as a whole? In
Arizona, you will find that the average income is just
under $47,000 per year. Compared to the 12% of African
Americans living in the US, the rate of African
Americans living in Arizona is about 5%. The
population is about just over 71% white compared to 2%
Indian and 2% Asian, and 24% Hispanic. No matter what
your ethnic background, you will find that the Phoenix
communities are a combination of Americans living
together, growing as a city, and expanding as new
homes are built yearly.

Professional Liability Insurance Costs for New Architectural Firms

A ubiquitous concern among architects who wish to start their own practice is "How much will my professional liability insurance cost?" Coverage costs vary by:

· State in which the practice is located,

· The limits of coverage purchased,

· Project types being designed, and

· The experience loss history of the Architect applying for coverage.

The cost of insurance also varies annually as the insurance market hardens or softens.

What should an architect expect upon applying for PLI (professional liability insurance) for the first time? Professional liability insurance protects firms against claims and/or allegations of negligence, errors or omissions in delivery of professional services. In order for an insurance company to evaluate and price their risk in insuring a firm, they require completion of an application. The application captures information about business locale, annual revenue, the discipline and project mix of the firm, and the risk management protocols implemented to help minimize exposure to claims. They will also inquire regarding claims history.

When in the process of starting a new firm, the underwriter will expect estimates of anticipated business. A solid business plan goes a long way in terms of providing underwriters comfort, so submitting a brief narrative stating goals and direction for the new firm is crucial. Previous project experience will also be highly relevant. In order to qualify for Architects Professional Liability insurance, you must hold a registered and/or licensed architectural license.

To get a quote, one must submit:

· A complete application. Be judicious, as submissions compiled hastily tend to be priced higher or declined by underwriters.

· A resume showing representative projects, education and any Society/Association affiliations held. Associations convey professional commitment to the insurer. Engagement in continuing education has a similar effect.

· A mission statement including the direction intended for the business goals for growth.

Once committed to purchasing a policy, annual renewal will be necessary to maintain coverage on work performed under the new firm. Professional liability insurance is written on a "claims-made" basis. This means a policy must be in force at the time a claim is made in order for coverage to apply. Also all policies contain a "retroactive date", which is the inception date of the initial professional liability insurance policy.

It is not possible to get coverage for work that you performed before applying for professional liability insurance. In essence, the key to covering architectural professional liability is to purchase from a trustworthy provider, and to do so immediately upon inception of a practice.

Why Real Estate Investment?

Why should you invest in real estate? Well, investing in real estate for profit is one of the most popular approaches to generating additional income in the United States today. In fact, if you pay attention to recent press you will have seen numerous reports about the real estate investment craze that seems to be sweeping the Nation.

When done carefully and intelligently, real estate can yield fantastic benefits that can not be achieved through any other type of investment. Here are just a few examples of why real estate investing can be such a powerful wealth generator.

1. Real Estate Markets Are Slow to React - Although real estate, like everything else, has ups and downs, it is generally a lot slower to react than the stock market. For example, you won't get up in the morning and discover that your real estate investment is worth ten or twenty percent less than it was yesterday.

2. Leverage. You can borrow money to buy real estate, whereas, generally you can not borrow money to buy stocks. You can control a large dollar value of real estate with a small amount of your own money by using loans and mortgages. The stock market, by law, limits the amount of leverage (margin) you can use to buy stock. There are no such limits with real estate.

3. You Can Purchase Real Estate For Less Than Its Market Value. In many cases you can purchase a property for as low as 60 to 70 percent of the market value. When buying stocks, you may be able to find a stock that is considered "under valued" but generally it's tough to do that on a regular and consistent basis.

4. Real Estate Offers A Tremendous Amount Of Tax Advantages Through Depreciation. Real estate basically has two values, the land and the building(s) on the land. For example, if a property is valued at $250,000 and the assessed value of the land is $75,000, the building would be worth $175,000.

The government allows real estate investors to depreciate the value of the building in equal parts over its "useful life" which is defined as 27.5 years. So for example, based on the $175,000 building value above, the annual depreciation value would be $6,363.63 ($175,000 divided by 27.5). This means that for tax purposes, the investor would be able to reduce his/her annual income by $6,363.63!

Many people find the notion of depreciation to be confusing since it's not really a loss of money. I recommend you check with a qualified tax professional for more details and how this can benefit you.

5. Real Estate Markets Are Insulated Local Markets. For instance, when the stock market falls, it takes down just about everybody and everything involved with it. When home values drop in one city such as New York, generally it does not affect property values in other cities like Boston or Chicago. To protect yourself, you can have a "geographically diversified" portfolio of real estate investments to hedge against these types events.

6. You The Investor Can Control The Value. Another aspect of real estate investment is that unlike any other investment, this investment is controlled by the investor. For example, as an investor, you can increase the value of your investment property by making some modifications to the property such as adding a garage or replacing the carpet, etc. With stocks or any other investment, the investor can't do anything to increase the value of the investment.

7. The Efficient Market Hypothesis (EMH). When a market has prices that always "fully reflect" available information, it is called "efficient". The stock market for example is considered by most to be an efficient market. When you call your broker to purchase or sell a stock, you can be sure of one thing - the price you bought or sold the stock for was indeed the "correct" price for that stock on that day and at that time. Why? Because the existing price for the stock will already incorporate and reflect all relevant available information about the company such as earnings, and other metrics.

With real estate, the market is very inefficient. Unlike the stock market, with real estate, the "correct" price discovery mechanism is left to each buyer and seller to figure out on their own. There is the almost always uncertainty as to whether the price offered by the seller is too high or too low. Moreover, there is typically little to no help available from analysts and research agencies (like when dealing with stocks) in this respect. This inefficiency is the very reason why real estate offers such a great investment opportunity to be smart and win! But it requires experience and a sharp eye for good deals and great negotiation skill. This expertise can be developed.

If done correctly, real estate is probably one of the smartest investments you could ever make. Hopefully this short rambling has provided you with a fresh perspective of the many benefits of real estate investing. So be smart, continue to learn and above all don't wait for some magic moment, just get started.

To Your Success!

Rik Foote

Professional Indemnity Insurance - Why Is It Necessary for Professional Service Providers?

Professional Indemnity (PI) insurance is associated with providing protection for professionals who sell their skill or knowledge. At times, in course of professional work, errors are prone to occur which attract a liability. PI insurance is meant to protect you against such liabilities.

Professionals like architects, chartered accountants, software consultants and the like are at risk. Some of the causes which can lead to liability are inadvertent disclosure/loss of data, malfeasance, infringement of copy rights and professional negligence. Howsoever expert you are in the area of specialization, you are at risk because of the reasons just stated. It is for this reason that you, as a professional, should buy PI insurance of appropriate cover.

Things covered under the policy
• Professional negligence: PI insurance offers you protection against law suits because of your professional negligence which entails some loss to your client. It covers problems arising from accidental mistakes, which are not within the purview of your personal control; say, your employee inadvertently deletes data from the database while in course of work, which leads to the loss of crucial data. The insurance provides the needed financial indemnity that ensues in the event of a legal liability.

• Circumstances unforeseen: Many of the faults that take place are not done by the professional intentionally. They are very much unexpected, but may lead to huge financial loss. As one is not prepared to face this unforeseen financial burden, having professional indemnity insurance can be of great help.

Apart from the financial compensation that you have to pay in case of litigation, professional indemnity insurance will also take care of precautionary advice which you, as a professional, deserve. These differ widely across professions. It will point to the remotest possible error on your part that may cause you to suffer a lawsuit.

• Lawsuits with malicious intent: At times, businesses or people with a malicious intent might drop you in trouble by suing you. In such cases, you can neither ignore the severity of the case, nor do you have the competency given the manoeuvring tactics at court of law. PI insurance would play the role of a lifebuoy at such predicament.

Who needs PI insurance?
PI insurance is meant for professionals who offer their knowledge, experience or skills as a paid service. Architects, engineers, brokers, solicitor, financial advisers, accountants are a few professionals who can take advantage of PI insurance. Above all, self-employed professionals should buy it at any cost, as they are solely responsible for their profession.

The clients can sue you because of your professional negligence of any sort.

Other benefits offered by the policy
Note that the law suits raised because of negligence on your part are difficult to handle in terms of time, resources and professional expertise. Sometimes, these legal claims might be too big to pay yourself, unless you have enough financial strength. Further, it may go to the extent to bring disrepute to you as also to your profession.

PI insurance is hence advisable for you, as it covers all the accidental mistakes which are potential enough to give rise to legal suits and claims for compensation. It avoids financial crippling in case of claims, saves reputation and enables smooth run of business.

Professional indemnity insurance may prevent you from having needless strain and your business from having a debilitating effect. Buying this insurance might cost a little, but the benefits thereof are manifold which you take into account.

5 Things To Ask Yourself Before You Buy Professional Indemnity Insurance

Professional Indemnity Insurance is designed to protect you when a problem arises with any professional work you have done. In today's litigation culture, this form of insurance is becoming increasingly relevant for a range of professions. Are you thinking about Professional Indemnity Insurance? Before you buy, it pays to consider the crucial 5 questions:

What exactly is Professional Indemnity Insurance?

Professional Indemnity (PI) Insurance is designed to protect you in the case of professional error. In the course of your working life an instance may occur where unfortunately, the professional skill you exhibit is deemed inadequate. In this situation, a dissatisfied client may seek some form of compensation, resulting in financial implications for you and your business. This is where PI Insurance comes in: it provides financial support for defense costs, withheld fees and any compensation which may be awarded against you. In simple terms, Professional Indemnity Insurance is financial protection against professional error.

Why do I require PI Insurance?

This type of insurance is typically relevant for professionals who regularly give advice to their customers, and/or who are responsible for customers' data and other intellectual property. It can loosely be regarded as protection against non-physical but nonetheless detectable damages. PI Insurance can be voluntary, but it is mandatory for some professions, such as Architecture, Accountancy and some IT Consultancy.

How does PI Insurance benefit me?

If you are at all liable to be challenged in the competency of your work, or there is scope for your services failing to meet the expectations of your client, then PI Insurance will certainly benefit you. PI Insurance will provide you with financial support if you are accused of professional negligence, misuse of intellectual property, loss of data, dishonesty and defamation incurred by your business. Despite best intentions, no one is immune to mistakes or accusations of mistakes - PI Insurance tackles the consequences of these errors.

When does the cover come into action?

Most forms of PI Insurance work on a claims-made basis. This means that the insurance only covers the claims made during the policy period. If an incident occurs whilst you hold the policy, but the claim is made after you have discontinued the insurance, then the claim will not be covered. On the flip-side, if an incident occurred before the time of holding the policy, but the claim is made once you have the insurance, then you can be protected. Each claim is treated individually - as the policyholder, you can usually select your own limit of indemnity.

Where are there exemptions and conditions?

To ensure the most comprehensive insurance, it is advisable to thoroughly research the policy options available. Many providers of PI Insurance offer industry-specific policies. Requirements are different for each sector: for some, cover is restricted to business carried out within the EU, for example. The policyholder will usually be required to pay an excess for each claim, and the amount varies according to policy. Suitability of Professional Indemnity Insurance can be achieved by the varying levels of cover available. This suitability can be further tightened by bespoke policies which can be continually amended.

It is important to tailor Professional Indemnity Insurance to the requirements of your individual business. The insurance is ultimately designed to protect you in the case of professional mistakes - choosing the right Professional Indemnity policy is the first step towards annulling these errors.

Real Estate Software - An Agent's Guide to Software

Each, day thousands of real estate professionals go online to research real estate software. But what is real estate software, and how can it help you improve your real estate business? These are the questions we will address here.

What is Real Estate Software?

When we talk about real estate software, we're actually covering a wide spectrum of software products. In general terms, real estate software is any software that helps you manage some aspect of your real estate business.

The "some aspect" part of that definition is important, because to date there is no real estate software that will help you manage all aspects of your business. Instead, most types of real estate software are designed to help you manage a certain element of your business, like contract preparation for example.

Various Types of Real Estate Software

Below, we look at some of the most popular types of real estate software. As you will see, each type of software is designed to help you perform a certain part of your real estate business. Please note that this list is not all-inclusive. There are more types of real estate software than I could possibly cover in this one resource. So at the end of this guide, I've listed some additional resources where you can find any type of real estate-related software imaginable.

Content Management Systems

Some types of real estate software are designed to help you manage property listings on your website. Basically, these are content management systems (CMS) that have been adapted for real estate purposes. A good example of such a program would be Realty Manager by Interactive Tools.

Such programs allow you to add, edit or remove property listings (including house photos) within your real estate website -- without any knowledge of web coding. If you have listings on your website that require constant management, you can see the convenience of this kind of real estate software.

Real Estate Contract Software

As the name implies, this type of real estate software helps agents prepare real estate contracts. As you well know, contracts are a big (and often time-consuming) part of the real estate business. So anything that can streamline and simplify the process would be welcomed by real estate agents. That's what contract-management software strives to do.

One of the best features of real estate contract software -- a feature you should look for when purchasing this type of software -- is the ability to create contract templates by pulling in required disclosures and other commonly used items from your city and state. This way, once you have the real estate contract software set up how you want, you would simply enter new client details and listing prices to generate contracts.

Real Estate CMA Software

Once again, the name tells you what this type of real estate software does. CMA software helps you prepare comparable listings / sales reports that you can show to clients. The biggest benefits of this type of software are time savings, professional appearance, and basic mathematical functions. CMA software will help you produce an attractive and informative CMA report in less time than doing it without software assistance.

Contact Management Software

Contact management software is not to be confused with contract management software. Though they only differ by one letter, these two types of software have nothing in common. Contact management software helps you manage your contacts, or client communications.

Most of these applications are built around databases. You enter client information into the database (with details such as name, phone number, neighborhood of interest, etc.), and then you can easily search the data later.

When choosing a contact management solution, look for one that allows customization of the data fields. You want the ability to create whatever info fields for each contact that's important to you. All of these programs will let you enter the basics, like name, phone number, address and the like. But what if you wanted to also label people with buyer vs. seller? Or by price range? Or by the neighborhoods they're interested in? You'll need this kind of flexibility, and any good contact managements solution should offer it.

Real Estate Educational Software

This is another popular type of real estate software. As the name implies, this kind of software helps you advance your professional education. The most common types of real estate educational software are the test preparation programs. These programs help you prepare for state licensing exams and other real estate-related professional exams. For just about every real estate exam you can imagine, there's a piece of software that can help you prepare for it.

Virtual Tour Software

Virtual tours are extremely popular among real estate professionals these days. Home buyers love virtual tours, so when you add them to your real estate website, you've increased your website's value for your key audience. The only problem is, virtual tours are not an easy thing to put together. That's where this type of real estate software comes in.

One way to create virtual tours is to have a virtual tour company do it for you. With this option, you shoot the photos or film footage yourself, and send it to a virtual tour company who creates the finished product. But for the more adventurous agents, there is also the virtual tour software path. Using this software, the agent creates his or her own virtual tours, using photos taken by the agents themselves.

Real Estate Website Software

This software covers a pretty broad spectrum. Real estate website software can help you with many aspects of your website, from creating graphics to capturing leads. But one product rarely does it all. Most types of real estate website software are highly specialized, performing a certain aspect of website enhancement.

Conclusion

So we've seen that for every type of real estate business function, there's a piece of software to help you do it more efficiently and (ideally) more effectively. Does that mean you need all of the real estate software on this list? Obviously not. My advice is to look at the business functions where you spend the most time, and shop for a software product that can simplify that process for you.

It's also a good idea to play around with different types of real estate software before buying. Most software vendors have either a free trial or an online demo through which you can judge the product for yourself. If you come across a software vendor who offers neither of these trial options, then keep shopping. When purchasing real estate software, always follow the rule of "try before you buy."

* You may republish this article online if you retain the author's byline and the active hyperlinks below. Copyright 2007, Brandon Cornett.

Chicago Suburb Real Estate

The real estate market in the Chicago suburbs is as vibrant as it is in city itself. A large number of residential and commercial real estate are always available for sale or purchase in Chicago's suburban areas such as Cook County, Lake County, McHenry and Boone counties, Kane and DeKalb counties and DuPage and Will counties. There are also other Chicago suburbs where real estate market continues to flourish.

There are real estate firms which deal exclusively with one particular suburb, and others that deal with all suburbs. The south suburbs are relatively new. The real estate prices are high here. Some of the buildings have still preserved the architecture of previous centuries.

Excellent commuting facilities leading into the city have resulted in relatively higher prices for real estate in this area as compared to some other suburbs. The northern suburbs are considered ""elite."" Here we have villages with beautiful houses and magnificent churches, a good choice for those who are looking forward to buy residential real estate. The northwest suburbs cover huge tracts of land. The population density is low. The architecture of most of the buildings reminds one of a typical 20th century urban landscape.

Those looking for commercial real estate can go for vacant spaces in shopping malls. Residential real estate is also available in the countryside as one keeps on moving farther out in these suburbs. In the western suburbs one finds a variety of real estate, as these suburbs have a very diversified culture and economy.

There are affluent sections, as well as agrarian and industrial communities with their feet on the ground. One can get a range of real estate in western suburbs. It is clear that in general the real estate prices might be a bit on the lower side as compared to the main city area of Chicago, but as all of them have good connectivity with the main city area, one can settle down in one of these suburbs without having any major impact on one's quality of life.

How Trading Binary Options With Traderxp Rebates Or Bbinary Rebates Works

In today’s world, more and more people are finding that they are dissatisfied with their single income stream and are constantly seeking ways to augment their income with secondary income streams. One of the best ways of doing this is through trading and among the increasingly popular financial products to trade are binary options. In order to trade binary options, you need the services of a broker, and almost all brokers charge a fee for the use of their services. With Traderxp rebates and Bbinary rebates, however, you can reduce the overall amount that you pay for the services of a broker because you get rebates when you sign up for their services.

Binary Options

The origin of options actually comes from producers who wanted to achieve greater financial certainty so that they could better plan their activities throughout the financial year. In order to do this, they had to fix the prices of the materials that they required for production. A manufacturer that required iron, for example, might estimate the amount of iron necessary for production over the entire year and the times at which that iron would have to be purchased. Based on market predictions, it would then estimate what the cost of iron should be at those times. The manufacturer would then enter into an agreement with an iron supplier to buy iron from them at that particular price on a particular date. This agreement came to be known as an options contract.

Binary options, however, function in a different manner from simpler options mentioned above. Instead of being an option to purchase a particular product, binary options have two outcomes. The first outcome is a win for the trader, and involves a payout of a certain percentage of the value of an underlying asset. The second outcome is a lose for the trader and simply means that he or she gets nothing back. Some brokers offer a certain percentage of your money back on losing trades, but that is a feature of the particular broker rather than of the binary options themselves.

Getting Money Back

As with most online service providers, brokers require that you sign up for an account and pay a fee in order to trade in binary options. With the sheer number of binary options brokers operating online, however, some brokers have had to market their services aggressively in order to attract customers. One way that they have done so is through partnerships with broker databases that offer rebates for sign-ups. This way, the brokers are able to attract more customers while customers feel greater satisfaction at having gotten some of their sign-up fee back.

It was common practice for database websites to receive a commission in return for each sign-up that they successfully referred to a broker. As more database websites were created, the databases themselves encountered heavy competition. Some of the better databases then started to share their commissions with their customers in order to attract more customers. When you sign up with Traderxp or Bbinary through the right database website, you will get your brokerage membership and enjoy Traderxp rebates or Bbinary rebates at the same time.

The Real Estate Blog Alphabet - 26 Benefits and Best Practices

This alphabet lists 26 key benefits and best practices of using a real estate blog. Not all of these entries will apply to every individual blogging scenario, but they all apply to real estate blogs in general. So you are bound to find something useful here that you've never considered before.

Here you have them, real estate blog benefits and best practices ... from A to Z.

Authoritative

Everyone knows you have to understand a subject well in order to write about it or explain it to others. When agents blog about the real estate scene in their cities or towns, they position themselves as authorities on the subject. In this way, a real estate blog can be a useful tool for positioning, branding and differentiation.

Believable

If used properly, a real estate blog can make the agent (or company) behind it more believable. And let's face it ... in the post-Enron, low-trust world of corporate skepticism, a little believability can go a long way. Use your real estate blog to communicate openly and honestly with your audience. Lose the fluff and the jargon. Be candid and sincere. And speaking of being candid...

Candid

It's a mistake to treat your real estate blog as "Website, Part 2." Blogs are easy to publish, so you can publish to them more frequently. In this way, a real estate blog can become an ongoing dialogue between you and your audience (potential clients). To get the most out of this dialogue, and to achieve the believability mentioned above, a real estate blog should take on the candid, heartfelt voice of the author.

Direct

Real estate blogs are direct-to-reader / direct-to-consumer. You simply type your message, click the "Publish" button, and your message becomes instantly viewable online. Unlike other forms of business communication, there are no journalists or editors to put their own spin on things. Your message goes from you, directly onto your blog, and directly to your audience.

Enthusiastic

In a perfect world, only the truly enthusiastic bloggers would publish real estate blogs. But this is not the case, and as a result there's a lot of "half-hearted" blogs online today. Half-hearted commentary stands out like a purple elephant in the blogosphere. This kind of blogging actually does more harm than good. On the other hand, enthusiasm comes across in blog posts -- but enthusiasm is both positive and contagious.

Flexible

The number of ways you can use your real estate blog is limited only by your imagination and energy. Maybe your blog will be a source for local real estate news. You can do that. Or maybe your blog will cater to a certain niche, such as condo buyers or home sellers. You can do that too. With the versatile publishing capabilities of most blogging programs, you can set up your blog to support any business, marketing or communication objective.

Google-friendly

A real estate blog can help you increase your online visibility in several ways. For one thing, a blog can help you expand your website with new content, easily and efficiently. Blog daily for a year, and you'll have 365 new pages of content. And search engines love topical content. A real estate blog is also more "social" than a regular website, so with time and effort your blog can acquire links from other blogs. This "link popularity," as it's known, can do wonders for search engine ranking.

Happening

Generally speaking, real estate blogs are much more "happening" than their website counterparts. Blogs are easier to update than regular websites, which is important in the ever-changing world of real estate, interest rates, etc. When you update your blog often with quality content, it becomes an active resource that people are more inclined to read, revisit and recommend.

Informative

When you keep people in your area informed about the local real estate scene, you increase the usefulness of your real estate blog. You also increase the likelihood of future business from those readers, not to mention the likelihood they will recommend your blog to others. Blogging is a simple but effective way to keep people informed. Before you publish a new post, get in the habit of asking yourself, "How will this blog post help my readers?" If you can answer that, publish a way. If you can't answer it, rethink the topic.

Jargon-free

In general, blogs are not the place for corporate speak or "fluff" content. This applies to the real estate blog as well. Write your blog in your own voice. Don't try to impress people with your vocabulary. The best blogs convey quality information in a conversational style. This will increase your readership, the level of dialogue, and (ultimately) the blog's profitability as a client-acquisition tool.

Knowledgeable

Dr. John Tuccillo, former Chief Economist for the NAR, recently said: "With the expansion of the number of Realtors, the level of competence has fallen to its lowest point ever." If this general perception spreads to the public in general, it could cause real problems for real estate professionals. This is another area where a real estate blog can benefit you. Use your blog to show readers how knowledgeable you are on your subject. Just remember, some of your readers will know as much about the subject as you do. So check your facts before posting!

Lead-producing

You stand to gain a lot from the interaction and trust mentioned previously in this list. When you interact with your blog readers in a positive way, you have a much greater chance of turning them into clients. You can also configure your blog to allow reader comments, which is another way to generate leads and start a dialogue.

Manageable

Blogging programs simplify the web-publishing process to such a degree that anyone can do it, regardless of their web experience. In fact, a single individual could easily manage a large web presence if it were built on blogging technology. This is ideal for real estate agents who operate independently, without the benefit of an I.T. department.

Non-invasive

A well-written real estate blog will "pull" readers into the message, as opposed to pushing the message on the reader (like magazine ads). People can sign up for your blog in total privacy, either by using the blog's RSS feed or an email subscription option (if you provide one). The readers come to the blog -- it is not thrust upon them. As long as blogs in general adhere to this non-invasive, respectful approach, they will be held in higher esteem than other communication channels like email.

Operational

A real estate blog is more than a simple communication tool. It can serve operational roles as well. This could include internal collaboration (like an intranet) or outward instruction (like a home buying seminar online).

Purposeful

Before you publish your first blog post, you should determine the purpose of your real estate blog. Sure, you can always dive right in and figure out your purpose as you go. But your blog will be more effective (and easier to produce) if you have a purpose and plan ahead of time. Ask yourself, "What do I want to accomplish with my blog? Who is my ideal audience? What information would they find useful?"

Qualitative and Quantitative

When real estate blogging is done well, it has both a quantitative and qualitative affect. The quantity of content will increase your website's usefulness and search engine visibility. The quality of content helps you position yourself as an expert and differentiate yourself from other agents in your area (see entry for "Knowledgeable" above).

Recyclable

Blog content can be reused for many purposes. For example, you could expand your blog posts into article-length and publish them online for additional exposure and web traffic.

Straight-shooting

This point is somewhat repetitive of 'C' for candid. Guilty as charged. But it's worth repeating, so I'm repeating it. The most popular real estate blogs got to where they are partly by being straightforward. In this context, straightforward refers to both the design and the content of the blog. Real estate blogs that are "overly designed" tend to look more like websites than blogs. I truly believe this reduces their candidness and authenticity. The same goes for the blog's content. Blog postings that are straightforward and candid will generate more interaction and "buzz" among readers.

Thoughtful

The best real estate blogs are thoughtful. I don't mean thoughtful in the sense of "kind" -- although kindness does go a long way on the Web -- but thoughtful as in "full of thought." Each time you publish a blog post, put some thought into the content. Make sure it (A) supports your overall blogging goals, (B) gives your readers useful information, and (C) reflects well upon you as a real estate professional.

Usable

When you first set up your blog, it will be straightforward and easy to use. The default settings of most blogging programs are designed this way for a reason. But some people feel the need to clutter up their blogs with all kind of nonsense, reducing the blog's usability and readership in one swoop. Avoid this. Keep you blog clean and easy to read. Web readers and researches are skilled at hopping from site to site. They don't need much of a reason to bail out on you, and they'll do just that if your blog is hard to navigate.

Voluntary

You should blog because you want to, not because you think you have to. If you start a real estate blog just because everyone else is doing it, it will lack the heartfelt enthusiasm that's a trademark of popular blogs. (See "E' for enthusiastic above.)

Wise

Your real estate blog is the ideal place to share your wisdom about the industry. This will help you position yourself as an authority in your field (letter 'A' above) and foster the trust mentioned under the letter 'T' above. A "tip of the day" series is a prime example of this. It's a great way to share your real estate wisdom, and it's the kind of thing that will keep people coming back to your blog and recommending it to others.

Xstensible

Yes, I cheated with this letter. But real estate blogs are truly extensible (and you try to produce an adjective starting with 'X'). Your blog can grow as your audience grows, or as your company grows. You can add additional authors, perhaps a colleague in the mortgage industry. You can add sections to cover additional topics. You can expand a blog however you need to support your objectives. And it doesn't require an I.T. department to get it done. Blogging programs are designed to be extensible.

Yours

A real estate blog can have one author or several authors. I've seen popular blogs published by individual agents, as well as some published by teams of writers. But the blog has to belong to somebody. It should be yours, or his and hers, or all of yours. Somebody needs to own the blog. Otherwise, nobody will trust what it has to say.

Zippy

The dictionary defines zippy as "lively and full of energy." These are great traits for a real estate blog. If you are passionate in the way you publish your blog, it will eventually connect with readers who are equally passionate about the subject matter. These are the kind of people who will promote your blog without being asked to do so! It goes something like this: "Hey, Barbara, you have to check out this real estate blog I've been reading lately. Let me send you the link..."

* You may republish this article online if you retain the author's byline and the ACTIVE hyperlinks below. Copyright 2007, Brandon Cornett.

Debt Consolidation Loans For Bad Credit Management: What To Consider

Many Americans have suffered the same fate in recent years. After almost a decade of easy credit card and loan approval, the economic crises hit hard leaving honest borrowers with a mountain of debt before them. And for many Americans, the ideal solution is getting a debt consolidation loan for bad credit management.

It has been no secret that this solution is one of the most popular, but it is worth noting too that it is not a matter of erasing all debts – as some people think. Rather, it is a matter of clearing debts quickly by buying out the balances with a more affordable loan at a more flexible repayment structure.

What this means is that the crippling debt is replaced by a single debt consolidation loan, which must be repaid. This in turn means that applicants need to prepare their applications properly, so there are some issues that should be considered before submission.

When Clearing Credit Cards

One of the chief debts cleared through consolidation is credit card debt. But getting a debt consolidation loan for bad credit management means all debts can be cleared at the same time. This means a wide variety of interest rate structures need to be considered.

For example, a credit card may charge 22% APR on their balance, with the result that very quickly the sum owed becomes significant. When 4 or 5 cards are involved, then the debt can become huge. But it is important to consider the other debts too before agreeing consolidation terms, so when clearing debts quickly, everything can be managed effectively from the start.

What makes a debt consolidation loan so effective is that the whole financial mess can be wiped clean in favor of a more manageable situation. And it can only remove the financial headache if the monthly repayments are less than the combined repayments already being made.

Compare With Other Fast Loans

There are other options out there that might be considered too. Admittedly, it is hard to find any that offer the same kind of breaks, so getting a debt consolidation loan for bad credit repair is arguably the one everyone prefers to turn to.

But what is the main alternative? A payday loan is the key one, and is almost certain to be approved if the applicant has a large enough monthly income. The loan is granted on the back of an upcoming paycheck, and can be approved and deposited into an account in a matter of hours. So, it is ideal when clearing debts quickly is a must.

But it only suits small debt sums, with most payday loans maxing at $1,500. Anything more than that will need a more detailed loan agreement, with repayments over 90 days or so. Interest is also huge, as much as 500% APR, so a debt consolidation loan is clearly more affordable.

What Out For Unnecessary Charges

A third key point is the fee that debt consolidation companies charge. While it is always possible to get a debt consolidation loan for bad credit management independently, when the debt is very high, a professional service might be needed.

As service providers, the consolidation company will charge a fee, but remember that nothing should ever be paid in advance. If a company suggests that this be done, then it is best to walk away. The correct process is for the company to deduct the fee from the sum borrowed as it is deposited into your account.

Clearing debts quickly is always desirable, but remember there is always the risk of unscrupulous operators. So, check out the background of any prospective company before agreeing any debt consolidation loan with them. The Better Business Bureau website is the best option.

Real Estate Investing For Beginners - Part 2, Types Of Properties For New Real Estate Investors

Not all real estate property types may be appropriate for new real estate investors. There are many factors to consider when making the decision to add real estate to an investment portfolio.

When deciding on a residential real estate investment strategy, some options for new investors to consider include:

Rental units

Rental units can be considered both long term and short term investments. Types of properties that may be considered for this category would include:

• Detached single family homes
• Attached single family homes
• Multi-Unit properties
• Condos/Townhomes

Being a Landlord

Not everyone has either the desire or inclination to be a landlord. Dealing with tenant and property issues can be very stressful and time consuming. One way to minimize the impact of being a landlord is to hire a professional property management company.

Hiring a professional property management company has several advantages:

• Allows owners of rental properties to be 'shielded' from dealing with tenant and property issues directly.
• Provides a buffer allowing the owners to maintain a hands off approach to managing their properties.
• May provide a less stressful experience
• Offers the ability to purchase real estate investments not immediately local to the investor.
• Provides a single contact point for all issues regarding the investment property.

Professional property managers are well versed and prepared to manage tenant and property issues as they arise. They will typically take care of all issues relating to the property.

Many offer their services at reasonable prices and rates while others can be quite expensive depending on additional services being offered. You may expect property managers to provide the following services:

• Advertise properties available
• Recieve applications for tenancy
• Perform Credit and Background checks for applicants
• Recommend rental pricing
• Pay maintenance and/or repair bills for the owner
• Send monthly statements and rental income (Less any outstanding bills. Typically these are deducted and itemized from the rental income and will appear on monthly statements)

Flipping or The Bane of New Investors

Often times, new investors in real estate are overly anxious to 'flip' properties and make a significant profit. Rumors of how friends or acquaintances have made allot of money is often the incentive for 'flipping'.

The real estate market fluctuates greatly. Yesterdays great 'flipping' market may be (recent market trends as an example) tomorrows 'Hold on to it' market. While this is certainly a desirable quality of an investment property, it is and should not be the primary consideration for new real estate investors. The competition for this type of real estate investment is fierce and occupied by seasoned, experienced professional builders and investors

Property Types

Let's discuss the various property type which may be considered by new real estate investors.

The selectionof the type of real estate property for investment purposes may be based on several factors.

These factors include:

• Financial considerations - How much can you afford?
• Availability of properties - What types of properties are available?
• Location - You've heard this one a thousand times - Location...Location...Location...
• Income potential - Does the property in question match your real estate investment strategy?

Detached and attached single family homes
Single family homes whether attached or detached are often the first real estate property type new investors seek. In many areas, they offer the most availability of any property type.

Prices obviously vary greatly with these property types as well.

Multifamily Properties

Apartment units such as duplexes and triplexes should be considered as a viable option for new real estate investors.

Many investors and real estate professionals use apartment buildings as a point of entry to a portfolio of commercial real estate holdings and to build their equity before moving on to larger commercial real estate investments.

Duplexes, triplexes and fourplexes are two, three and four-unit buildings that may or may not be owner occupied.

Summary

Selecting an appropriate type of real estate property in which to invest is a primary consideration for all serious real estate investors.

Real estate investment strategies include the decision of whether or not to become actively involved in the management of the property. Professional property managers offer alternatives to assist in a "hands off" approach to owning residential income property.

Knowing there are options on the various types of properties to purchase as investment may provide new real estate investors the information needed to make that final decision to become a real estate investor.

End of Part 2

Starting Over With The Help Of Declaring Bankruptcy In Cleveland

It will be very hard to find anybody who purposely wants to go through a bankruptcy, the fact of the matter is that sometimes folks try their best and find themselves needing to declare bankruptcy when there is no way to remedy their financial situation. If you are falling so behind on your bills that you have got collection agency after collection agency calling and you are in danger of foreclosure or wage garnishments, Cleveland bankruptcy will help.

Personal bankruptcy can help you if you are mired in debt as a result of medical bills and credit cards. Once your bankruptcy is complete, your credit report will show a zero balance on all of your unsecured debt accounts. This is usually a huge relief to know you will no longer have to worry about how you are going to make those payments. You do not have to fear bankruptcy. While it may have some stigma connected with it, the truth is that it's nothing that you need to be ashamed about. Aside from helping you to get out of debt, experiencing a bankruptcy has other benefits, too.

As soon as you start your bankruptcy proceedings, credit collectors can no longer harass you. This is often a welcome relief for someone who has been dealing with creditors and collection agencies for an extended time. You'll get to start over and have a brand-new chance at building good credit. Of course it's true that Cleveland bankruptcy will stay on your credit report for several years, but in the meantime, you can get yourself back on track to becoming more responsible and wise about how you spend your money. You can start building your credit back again more quickly thanks to the elimination of all the debt that you tried to pay on, but couldn't keep up with. You won't need to struggle to purchase the basic things you truly need in order to get by in life, thanks to not having debt hanging over your head that kept you from affording even basic necessities.

If you've been thinking about a bankruptcy filing, it's essential that you speak with a knowledgeable attorney who will walk you through all of the steps needed and enable you to understand which type of bankruptcy fits your specific situation. Filing for bankruptcy is not a simple thing to do by yourself, and there are many steps that have to be taken to get the filing done correctly. That is why having someone who is experienced in filing for Cleveland bankruptcy help you start the process is a good idea. The legal representation you have will be in command over organizing the only hearing you will need to attend if you file for Chapter 7 bankruptcy, and that is called the "meeting of creditors." This hearing will typically be a speedy one. Creditors may show up at and ask you questions.

A bankruptcy case often takes anywhere from four to six months to finalize but with the assistance of a legal professional, you may be able to have it done quicker than that. It's important to find legal representation that you feel safe working with. They should be professional, friendly and definitely happy to help you. There really isn't any reason to work with an attorney who passes negative judgment or is rude to you. A good attorney will understand that bankruptcy is not a simple thing and that it can affect people in a big way emotionally. As soon as you hire one who knows this, it will make the process easier.

As soon as your bankruptcy has been filed, it might be wise to get credit counseling so that you can learn to make new and better financial choices. If you're searching for a fresh new start to controlling your finances, Cleveland bankruptcy may be the answer. Be sure to perform a little research to make sure you know it is right for you. An attorney or legal professional can discuss your options with you and assist you to understand more about filing for bankruptcy.

The Keys to Success to Investing in Real Estate

Most real estate professionals flunk within the first few months of trying to create a business enterprise out of real estate investing. The trick begins with a beneficial marketing plan and then practicing a disciplined effort to the marketing plan on a even basis. There is a lot more required to succeed, and you will encounter more tips, tricks and unique real estate marketing techniques in this article.

Is there anyone in your town that doesn't recognize that you buy homes or that you are a real estate professional? If so, you aren't performing as well at marketing or rendering real estate investing information about your real estate investing business enterprise as well you could be. I find out real estate investors telling all the time that they aren't receiving seller phone calls and subsequently aren't receiving the leads they need to find the real estate business deals they require to earn a living. I say increase the marketing and the sellers will Call. Not only that but if you are canvassing the world (or at least your area) that you buy problem real estate holdings, eventually you will be acknowledged for what you do and sellers will telephone you strictly on your reputation. this is what is called cost effective marketing.

One real estate professional was in a home, garden and hardware store a few calendar weeks ago and went past a couple of guys in an aisle. A conversation was heard while he walked by, I overheard one state, "That is the real estate man". Now I had never known either of those men and have no idea who they are but that experience lets me acknowledge that I must be doing my business at letting the world to recognize my business is buying real estate in that area. There are many ways to let the area know that you are in the real estate investing profession and getting information out there that helps people realize you buy foreclosures, distressed real estate, do real estate short sales and have got a lot of real estate information and experience to flip properties. Some methods are cheap and some are more expensive. You are going to have to attempt many things and acquire a feel for what brings about for you the best results in your region to get the calls you require to transact real estate deals. I have tried many forms of marketing methods for real estate commercial enterprises of all varieties and have come back to a few that consistently create enough leads for me to purchase the 2 or 3 real estate holdings and houses I want to purchase every single calendar month. They are as follows:

Classified Ads

The classified advertisement in the most prominent newspaper in the region is by far the heaviest producer of leads for local real estate investors that I have determined. I understand it is costly and I understand there are instances it does not generate phone calls but if you are going to persist in the real estate investing business sector just place it in there and leave it. Get used to it making up part of the toll of performing the real estate business. You may expend about $350.00 a calendar month for my 4 line ad and that is the commercial range. I'd consider running it 365 days a year to constantly cue everyone that you are a real estate professional and you purchase real estate in their region.

Over the past few or so years I have watched many "real estate investor" ads come and go. Most folks put them in for a many or even just a couple of calendar weeks and then remove them or try just placing them in on the week ends. Real Estate Marketing just simply does not work this way. Put your real estate ad in the paper and leave it in there. It will more than make up for the price, trust me, and you will see after you finish your first deal. If you are distressed because there are real estate investors ads from many other investors in there, don't be. They are there because they are getting responses. Just be sure to and actually answer your cell phone and keep it on all the time otherwise you'll be squandering money.

When a fresh ad for real estate investor information shows up in my newspaper, I will always call on the advertisement. 9 times out of 10 I get a message device or answering service. This is a significant turn off to somebody who needs a resolution to their real estate trouble now. They want to speak to a person who can quiet their anxiety over their current issues with their home and tell them everything is going to be ok. Your answering device won't do that, they need a human being. As for what to put in the advertising, you will have to work on this one. I have tried various idea and the one I have now hast not changed for over 4 years. I haven't switched it because I get responses. My ad is:

We Pay CASH FOR HOMES In 24 Hours! Any area, price or condition Call xxx-xxx-xxxx

Now I have had other real estate professionals jockey for place and interchange their ad copy to be leading of mine in the column but it has not made whatsoever difference, at least as far as I can discern. Don't worry about those things, just get the advertising out there and leave it. It could possibly take a bit of time, perhaps a several weeks to get going but sellers will telephone. As soon as you have your classified advertising running, then you should start working on your other marketing techniques right away. If you only go through one idea a week, within a few weeks or a couple of months you will have a significantly powerful real estate purchasing process.

Ads in the "Freebie" Papers

You might also run advertisements in the freebie papers in your local region or the region you want to conduct real estate investment deals. These are the "Thrifty Nickel", or whatever they are named in your region. We run both a column ad and a display in this newspaper and expend about $175.00 or so a calendar month for these ads. They pull in seller leads reasonably well and have always rationalized the costs. Remember that these guys are usually open to talking terms on your rates and you will probably get a better rate if you commit to a longer advertising agreement.

Bandit Signs or Road Signs.

Bandit signs are great. They are some of the best lead producing tools around. I have yet to put out a bunch and not be bombed with calls right after I arranged my marketing. I just don't position them out that often. I might place out a few to a half dozen or so a calendar month and the ones that continue and don't get taken down continue to pull in phone calls. At an average price of less than $4.00 per sign, they are one of the greatest real estate marketing and advertising values available. Check the net for sign manufacturers for discount signage costs. I use 18 x 24 signs and set them at high traffic crossings around the town I wish to purchase houses in.

I also position a sign in the front yard immediately after purchasing any house. I have purchased several homes in the same regions as a result of marketing this way.

You can either use wood stakes or the wire stakes with your signs. I like the wood stakes because they do not bend like the wire ones, in addition, they are more less expensive and you can find just about any reasonably sized stick of wood or stake at your local hardware store for a really good value. Just get long lengths and trim down to fit. Then just nail the sign to it with the roofing nails with the orange or green plastic tops or you can use screws. There are many variants on what the wording on the sign can say. Keep in mind that traffic will be moving so you want to keep your message short and simple so it may be read. Plus your telephone number must be big, large and easy to read.

If you search the sign advertisement content, you will discover that it is same resemblance my paper ad. I like to brand my advertising because I believe that helps with identification that is probably why the two guys noticed me as a Real Estate Professional..You want to have contrast, so a white sign with dark blue letters usually is the best draw. Some folks swear by black on yellow or black on orange. Again, I say it's not what or how you say it rather simply that you're out there marketing and placing out signs that counts. You'll build a 'brand image over time if you stay logical with your real estate marketing endeavors. When dealing with bandit signs, be sure that your local code enforcement laws are aware of them. In some areas or counties they can lax on them but a few miles down the road in another county or city, they can be super strict and will ticket you in a minute, pull the signs down and lead off looking for your next posters to go after you again. Some retail merchants in high tax areas can't put out any A board signage without having them sized and then fined.

Flyers and Bulletin Board Postings

Flyers and related collateral are another cheap way to get the word out that you are a real estate investor buy property, foreclosures or distressed properties. Just create a flyer with any one of the free on-line flyer software internet sites telling people that your are a real estate investor and how to get in touch with you. Make copies for few cents apiece and you have some really inexpensive real estate marketing and advertising. It really is that simple. Then place these flyers on every bulletin board in your Town or region you would like to buy your property, foreclosure or distressed home.. I also recommend that you place some of them in those plastic sheet shielders so the rain won't ruin them and put them up on phone poles around neighborhoods I like to buy property in.. While not as prominent as the bandit signs, on poles actually in the neighbourhood they still attract phone calls. I carry a file with me in my automobile and put them up whenever I stop at a grocery store or major discount shop or really wherever. Some of the other area to put them are:

· Laundromats
· Taped to the inside of telephone Booths.
· On the counter of any business organization that will let you place them at.
· Bulletin boards at any local or major rebate store (lots of traffic)
· Grocery store bulletin boards
· Fax to Mortgage agents, call first
· Fax to Real Estate Agents, call first and they may get a lot of these.
· Take them Door to Door in target regions
· Employment centre Bulletin board
· County Courthouse or public office Bulletin board

These are just a few illustrations. Any place that will allow you to set one is a good place. You can never let too many people know that you are a real estate investor and are in the foreclosure market.

Imprinted and/or Promotional Items

Optimum Real Estate Investor Marketing Ideas - These no-lose ideas are sure to get you top hits on leads and calls for your Real Estate Investing occupation.

These are some of my favourites and most fun. While they are not the top producers of leads or the least costly, they will sure position you apart from the average investor.

Pen Knives - These tiny Swiss army knives are the neatest things. They are actually key chains etched with your content, mine being: WE BUY HOMES - All cash or take over payments within 24 hours! Call xxx-xxx-xxx I assure if you give one of these to somebody they will hold on to it it and if they conceive of selling, they will think of you. They are about $1.75 each.

Key Chains - I give these to all my buyers with the keys to their new house on them and leave them all over the place. They come in the shape of a house or #1 or whatever style you like and have your message on them. You can guess what mine says. Cost - about $. 25 cents apiece.

Pens - I use these all the time. Whenever I sign a sales receipt or anything I leave my pen. I cannot tell you how many outcries I have gotten off of these things and since I often need one, I always possess one to give away. My attorney even has a supply on his closing table. I possess two types printed. One for sellers says "We Buy Homes!" and one for buyers says "Everyone Qualifies". Cost - about $.26 cents per unit.

Coin Holders - These you hardly find anymore so everyone is surprised when I have them. I leave these things everywhere. Mine are bright yellow with blue letters and my message. Cost - about $.30 cents apiece.

I leave all of these promotional items everywhere, on the top of gas pumps, on end-cap displays in grocery stores and in department stores. I look at it this way, if I give away 100 pens, 50 knives and 50 coin holders a month, that is only a little over $100 bucks a month. That is still cheap advertising. And with the money you can make in a real estate deal, it is 'no cost' marketing strategy. You can get any of these promotional advertising products at many major promotion marketing manufacturer, and you can find companies online as well.

Business Cards

I order business cards by the 1000's and you should as well, there are a lot of great places online that can print up nice (and cheap) cards for you and that specialize in real estate as well. As for business cards, well, they are cheap, mine are about $50.00 for 2000, and I pass them out and leave them everywhere I possibly can. I leave my cards everywhere, in pay phones, on restaurant tables, my kids even have their own supply to pass out. Try to get a box a week out. The card doesn't have to be fancy, in fact the simpler the better. My card is bright yellow with blue letters and says:

WE BUY HOUSES Foreclosure? Need Repairs? Bad Tenants? Divorce? CASH IN 48 HOURS! OFFERS MADE ON ALL CALLS! XXX-XXX-XXXX

Car Magnetics

Magnetics are one of those things where you spend once and get use for a long time. Mine cost about $75.00 and are yellow with blue letters. They say:

WE BUY HOUSES! FA$T CA$H XXX-XXX-XXXX

or

SELL YOUR HOME FAST WE PAY CA$H XXX-XXX-XXXX

I have gotten several deals from these signs. Remember to order a smaller set for the back of your car/truck. People have more of a chance to read the message when they are riding behind you.

Clothing

I like golf shirts and oxford dress shirts with my logo on them. There's plenty of adverting houses that will help you design a logo if you don't have one or use the one you already have. There is no charge for set up and all items ordered include your embroidered logo free.

I pass custom imprinted hats out to everyone I know who wears one and have given away many shirts as well. They really look nice and present a nice image for your business.

Other Advertising Tools

There are many other shapes of advertising, some I have tested in the past such as billboards, door hangers, yellow pages, television and radio advertisement. I even have a traveling billboard, an old SUV painted bright yellow with blue WE BUY HOUSES! and my telephone number that I drive around and park overnight at dissimilar places. It brings the calls! Get the marketing going and let the world know who to call when they have a house to sell, a pre-foreclosure, distressed property or someone who just wants to get out of their house.. If that phone isn't ringing, you aren't making money so you need to get a good marketing strategy going and stick with it!

I sincerely hope these tips will help you in your next real estate marketing efforts and get you the real estate investing deals you're after.

Consolidating Private Student Loans: The Key To College Debt Recovery

Graduation is supposed to be a reason to celebrate, but instead many students see it as the end of their repayment deferment period and the start of their financial woes. In fact, the size of their college debt can be debilitating, but consolidating private student loans is a very viable route to financial recovery.

The reality is that even a decade after graduation many people are still repaying their college loans, so the ability to take control the debt is a huge attraction to students. Getting onto a loan consolidation program, even while at college, is seen as a practical way to accomplish this.

Of course, getting the best terms possible is very important, with a range of benefits to be enjoyed if the right deal can be found. But the aim is to pay off the student loans once and for all. A consolidation program offers the chance to clear them in one fell swoop, then repay a single loan on more affordable terms.

Key Advantages: Recent Graduates

Graduates should take a look at the options available before consolidating private student loans. In fact, there are two forms of graduates: recent graduates and long-term graduates. Recent graduates have the maximum debt before them, but because they have not yet had a chance to build a career and are still low earners, it remains difficult to make repayments.

The best option for them is to agree a long-term consolidation deal, extending the repayment term to perhaps 20 or even 25 years. With fixed interest rates, they are easy to budget for, and over such a long length of time, payments on the loan consolidation program are very small.

It is not considered advisable to choose a variable interest rate because the repayments can fluctuate, making them more difficult to manage. In order to consolidate student loans effectively, it is necessary to have a reliable repayment structure.

Key Advantages: Long-Term Graduates

Long-term graduates are those who have been out of college for at least 5 years, though some might still be repaying college debts after 10. They differ from the alternative category in that they usually have a larger income and are on a definite career path. But they look to consolidating private student loans to allow them to finally control of the debt.

The structure of the loan consolidation program may be short or long, and since these graduates have a larger available income, accepting a variable rate may be a good choice. Although rates will fluctuate, they may go down and, over a number of decades, that could lead to significant savings.

Of course, even if the interest increases and the repayments along with it, a full-time employed graduate should be able to shoulder the rise. It is a useful option when the student loan balances are still quite high, and the available income is not so big.

Find the Best Program

Effectively consolidating private student loans is as much about finding the best deal as getting the best loan is. With the wrong terms, the program can turn out to be quite expensive. With the development of comparison websites, the task of finding the best program is made easier.

Online lenders tend to offer the best deals in almost every category of financing, but sifting through the hundreds of deal, offering specific terms and conditions, to find the one that matches the needs of the applicant, is simplified too.

Remember, a loan consolidation program should make repaying debts much easier, so before choosing a program know your current debt, calculate the affordable monthly repayments, and ensure the repayments of the new loan beat the old ones hands down. Then student loans can be gotten rid of in confidence.

Online Real Estate Schools

Buying a home or office is a major decision with several long-lasting implications. It cannot be denied that the most important one is the financial aspect. Real estate brokers help a buyer gauge and select the right property to suit his needs.

For this reason, almost all real estate buyers enlist the services of a real estate agent or broker to help them with this complex procedure. A real estate agent is a person licensed by the state to handle real estate sales. A real estate broker, licensed by the state, is a person who may own a real estate company, or has overall responsibility for the agent's actions. A real estate agent may also require the services of a real estate appraiser to determine the fair market value of a home for sale. In order to practice the profession of a real estate agent one must pass a licence course from a real estate school.

The courses offered by the school contains 12 review sessions of over a 100 questions each. Each state specific prep course includes over 200 US state specific questions in addition to national questions. Major areas of study include license law, principles and practices of real estate and real estate math. This also includes reviews, express study, live exams and final exam modes. Online real estate schools offers up-to-the-minute information regarding the most recent state law changes.

The real estate courses offered by online real estate schools provide high quality, time-saving, and effective real estate license exam preparation tutorials to assist future realtors in passing their exam. On application to an online school, the student gets a starter kit which includes a "virtual tutor system" (VTS). It is an interactive CD-ROM that prepares the candidate to take and pass the real estate exam. This enables the student to study at his own pace. This software is specifically designed to be used in conjunction with the home and office computer.

Online real estate licensing courses are the fastest, and most convenient way to get a real estate license. With up-to-date courseware and state-of-the-art teaching tools, these online schools are increasing in popularity with every passing day.

Have You Sorted Out You Cass Resolution Pack? The October Deadline Is Nearly Here

The FSA’s regulations for CASS resolution packs becomes active on the 1st October 2012. The main objective of the CASS resolution pack is to clearly provide signposts to a company’s insolvency practitioner to help swiftly resolve any returning of client money and assets to clients.

The new legislation requires firms to be able to find the information described in the resolution pack as soon as possible and in any event within the period of 48 hours. To sum up what is required the pack must include the following:

• the place where copies of executed agreements can be found.
• details of any third party that have been used to perform CASS operational functions as well as a document which provides specific instructions about how to access relevant information that is held by a third party.
• the means to process a transfer of any client money or assets;
• copies of the organisation’s processes for the management, recording and transfer of the client money and safe custody assets that it holds.

Find out more specific information about the exact credentials that are required under the new FSA regulations by referring to the article that we published back in May.

The FSA has selected CASS compliance as of its core regulatory risks in its 2012/13 Business Plan. The requirement for each company to prepare and maintain a resolution pack means that it will be much easier for the FSA to carry out inspections and assess a firm’s compliance with these regulations.

Firms should be aware that there will be a higher frequency of thematic reviews that will specifically focus on the existence and usability of these resolution packs. Firms that do not prepare or maintain them will be in breach of the new regulations.

If you are affected by this new FSA legislation, IMS has put together a navigation pack that clearly states all the requirements and provides a basis for collecting the information required by the new rules in a transparent and consistent manner.