Easy Financing Options for Rental Property

By David McCammon

Lots of people are now finding that rental property can be an excellent way to create wealth. If you are considering getting involved in rental property investing, it is a good idea to educate yourself as much as possible. First, you need to find out what it takes to become qualified to purchase investment property because it is actually somewhat different than becoming qualified to purchase a normal home.

One of the reasons for this is the fact that a significant number of investors either walked away from properties or declared bankruptcy during the early 1990s. While you should certainly not be punished for someone elses problems, neither do lenders want to be left holding investment properties. Therefore, it is important to understand that the requirements for being approved for a mortgage on rental properties are somewhat different from what you may be accustomed to.

A home can often be purchased with a minimum down payment, especially if you are a first-time home buyer this is often not the case with rental property. Many who loan money require a minimum down payment of 15%.

Fortunately there are many different sources you can tap into for possible financing. These options include: Mortgage broker Local savings and loan or bank Private lender FHA; which stands for Federal Housing Association.

It matters not which option you choose, you will find that most lenders will want to be assured that you will have a sufficient amount of rental income in order to cover not only the mortgage payment but also other expenses such as insurance, taxes and maintenance. Depending on the amount of income that will be provided from the property, some lenders sometimes actually require a larger down payment.

Of course there are many different types of loans which you can use to finance the purchase of a rental property. One option would be a residential loan. This type of loan can be used to purchase from one to four units. The exact options that are open to you often depend on whether or not the property will be occupied immediately.

An even other option would be a commercial loan. This is an option when the property is five units or more or it will be non-owner occupied. Due to the fact that it is a commercial loan, it is often far different from a residential loan in regards to terms and requirements. One of the main differences between a commercial loan and a residential loan is the fact that fees and rates are very often higher on loans like this.

A larger down payment is also often required. The down payment on a commercial loan typically runs between 25% and 35%. While there are some lenders who may be willing to agree to a higher loan to value ratio; the requirements for qualifying for such loans are usually more stringent.

Owners should also carefully examine the ability of the property to generate a cash flow that will allow you to repay your loan. As a result, the lender will typically examine the property to ensure it can provide an income that will not only allow you to cover the mortgage payments and other expenses but also provide enough of a cash flow that you will have additional income to do other things with.

Private party lending is another option for many prospective investors. One option would be to approach the current owner about seller financing. With this option the owner carries back the loan for a down payment and fair interest rate. You may find that you can save lending fees with the options and may also be able to take advantage of making a smaller down payment.

Of course another option would be what is known as a hard-money loan. This is a type of short-term financing where a third-party makes a loan to assist the investor with purchasing the property. Generally, this type of loan involves a higher interest rate due to the fact that the buyer has poor credit or because the property is in disrepair and requires lots of work.

FHA programs are often offered through traditional lenders. Keep in mind; however, that FHA does not actually lend money. They do provide insurance for lenders; offering numerous loan programs. Regardless of which financing tool you choose, remember that there is always the option to refinance at some later point in order to obtain a better terms. - 23218

About the Author:

If the thought of profiting greatly in the wide world of real estate investing stimulates you, then you should download Davids free guide and Free Real Estate Course. To find out the quickest and best profitable strategies visit Davids website Real Estate Investing.

The Three Hidden Traps of Getting a Debt Reduction Loan (and How You Can Avoid Them)

By Sean Payne

If you're in debt up to your eyeballs, you're probably on the telemarketers' list. They call, offering to give you a debt reduction loan. At first, this kind of loan sounds like a dream come true. After all, why wouldn't you want to lump all your smaller debts into one easy-to-pay loan with a low interest rate?

My dad always said that there's no such thing as a free lunch, and this definitely applies to debt consolidation loans. Getting a debt consolidation loan can be full of hidden traps that can actually get you in more trouble than you were to start with. Here's a list of the top three hidden traps of getting a debt reduction loan:

Trap #1: You're not fixing the problem, just treating the symptom.

The problem with debt reduction loans is that they treat the symptom of being in debt, rather than curing the problem of spending more money than you have. What you end up with after getting one of these loans is a large loan that you're making payments on, as well as new debts that will pop up when you inevitably spend more money than you have.

Statistics will tell you that people who use these loans to pay off their debts will likely end up with the same level of debt, and probably more, in two years or less. This is on top of the consolidation loan that they're making payments on.

Trap #2: Transforming unsecured debts into secured debts.

Most consumer debt is what is known as "unsecured debt". This means that the loan is not backed up by collateral. The majority of consolidation loans are "secured debt", which is debt that is backed up by collateral. Usually, the collateral takes the form of the home that you live in.

The main problem with this is that when you can't pay off your loan (and this is not uncommon), the creditor has the ability to foreclose on your home. On the original debt, the only thing the creditor could do was sue you in a court of law. They couldn't take your home from you.

What taking out a secured loan does, in effect, is to put your home at risk of being foreclosed on. Not the brightest thing you've ever done, is it?

Trap #3: Now you're paying higher interest rates.

Even if you dodge the bullet of getting a secured loan by getting an unsecured loan, you're still gonna get smacked with higher interest rates. This is because your inability to pay off your current debts makes you a credit risk, meaning that anyone who is willing to give you credit is going to charge you a higher interest rate to offset the additional risk.

The use of tricky math, including a longer loan repayment term, can make these loans seem like a deal, since they may offer you a lower monthly payment than you're currently paying. But what this really means is that you will end up paying a lot more over the long run. People who are already in debt can't afford this.

So, what's the best way to steer clear of these traps?

You can avoid these pitfalls by taking the daring step of managing your own debt. Unless you've already filed for bankruptcy, you can still get out of debt without the help of some shady loan shark or credit counseling. It may take some drastic modifications to your way of life, but once you've changed those behaviors that got you into debt in the first place, you'll be well on your way out of debt. - 23218

About the Author:

Sean Payne has been studying personal finance and how to pay off debt for over 10 years. To get more information about how to pay off debt without a debt reduction loan, check out Sean's excellent free course on how to pay off your debt quickly.

S&P 500 Futures (Part II)

By Ahmad Hassam

Regular trading hours for S&P futures contracts are from 8:30 A.M to 3:15 PM. S&P futures contracts are another example of how 24 hours a day trading enables traders to respond to economic news releases in pre-market and after-market sessions. S&P futures contracts are valued in ticks worth 0.1 index points or $25.

The evening session continues on the Globex until 8:15 AM overnight. It starts at 3:30 PM (15 minutes after the close at 3.15 PM). Individual S&P futures contract holders are limited to no more than 20,000 net long or short contracts at any one time.

A price limit is how far an S&P futures contract can rise or fall in a single trading session. The limits are set on quarterly basis. If the index experiences major declines or increases beyond these limits, a procedure is set in place to halt trading. If these price limits are crossed, circuit breakers are triggered.

Collar Rule: The collar rule addresses price swings related to program trades that move the Dow Jones Industrial Average (DJIA) more than 2% by requiring index arbitrage orders, or orders that bet on the spread between the futures and the cash of stock indexes to be stabilizing. This limits the traders from piling buy or sell orders in an attempt to exaggerate the gains or losses of the market. What this rule does is limit the chance of huge gains or losses as a result of futures trading.

Its time to learn how an S&P futures contract ticks once you have mastered futures basics such as the performance bond margins, the mark to market requirements and the account specifics. Especially during slow seasons in the stock market such as summer, fall and around the winter holidays, overnight or pre-market trading can be thin and dangerous.

CMEs most actively traded contracts are S&P futures including the E-minis and Eurodollar futures. There are hundreds of futures contracts that trade on the federally regulated futures exchanges in the United States. Each of these exchanges trade futures contract that are somewhat unique to it.

E-mini S&P Futures contracts: The E-mini S&P futures contracts (ES) are the favorites of the day traders because of its high intraday price volatility and major price swings on a daily basis. The E-mini S&P futures contracts (ES) are among the most popular stock index futures contract because they enable you to trade the markets trend with only one fifth of the requirement.

The value of the E-mini S&P futures contract is $50 times the value of the S&P 500 stock index. One tick on E-min S&P futures contract is equal to 0.25 of the index point or $12.50. The E-mini S&P futures contract can be very volatile and can move even more aggressively during times of extreme market volatility. - 23218

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading futures and currencies. Trade Dow Futures and S&P Futures!

Currency Trading Training Get The Profit You Want

By Chris Green

It is essential to know currency trading training to survive in the continuously changing forex market. Everyday, there are more and more people getting into forex, and there is a high demand for the best knowledge. Finding useful information over the internet can be difficult these days, especially if you are new to forex.

Nearly every company offers currency trading training once you sign up with them, as they try to convince you that spending thousands up front with no results is a good idea. It can be difficult to come up with such a large amount of money up front with no guarantee on any results. Is it guaranteed that their certain training approach will even work? Are they really offering anything? Most cases with huge upfront charges like that, they are just going to feed you their tips on trades, and not teach you a damn thing. The tips on trades stop coming when you stop their pay roll.

Trying to decide on the best currency trading training can be tricky sometimes and leave us asking our selves: What is there expected up front investment? What is the true potential to their training? What kind of profit potential are we getting out of it? Do they offer any kind of support? Find out the answers to these questions and the secrets to making forex trading a complete success.

There are tons of offers of currency trading training out there, and most too expensive. If you were able to find something under a thousand dollars, it would be rare. Better yet, if it offered returns in the first few days after the initial cost, that would also be rare. What if there was a way to get training at an affordable cost, and get returns from it within days of the initial investment? Sounds too good to be true doesn't it? Well it is possible this time and age to actually get that result, you just have to know where to look.

If you have spent countless hours researching for the best currency trading tutorial then you have to look no further. I have done the countless hours of searching myself, and when it comes to the best bang for buck out there and the best returns, there is no other. To get the profits you want and to start the training you need, take a step onto the greener grass, take a step forward into high profits and the results that you need to get today! - 23218

About the Author:

If your looking for the best Currency Trading Training out there, you simply cannot miss the secrets you will learn about in this guide. Others say they are the best, but the proof is in the guide. Get your guide while they last.

Stocks Vs Metals

By Adela Thomas

As a stock trader, you should ask, is the trader in you? if you like stocks and bonds and the exciting life of a financial trader, then it very well may be. The first thing to test this hypothesis out is the stock market. This is an area where you can see if you have what it takes to make it in the crazy fast world of high finance. The typical image of the floor of the Mercantile Exchange being filled with a bunch of guys that couldn't land jobs anywhere else is very outdated and sad. Instead stock traders are increasingly becoming some of the most sophisticated investors on earth. The ability to pick a winner in the stock market is what it all boils down to.

You can try trading for free using what's known as a paper money account. Of course when we think of money we think of the actual paper, but in this case paper money refers to fake money. There are paper accounts on numerous web sites on the internet. Most stock brokerage firms will have paper trading accounts, and there are many virtual stock market games and simulations around the net as well.

You can trade for stocks, but another market many people like to look into is the commodity market. Commodities consist of oils, metals, grains, and raw material and generally assets that are consumable.

The gold and silver game, precious metals and currency go hand in hand like peanut butter and jelly goes on a sandwich. The reason that precious metals are well, very precious to the human race is that we believe that they are rare and unique. This is true to a degree, however one should think about the supply and demand factors first and foremost. If diamonds and gold were easily excavated and mined and everyone could just dig into the soil of the earth and pull out tons of it, then would it be so valuable? Most likely it would not be.

One area that also gets a whole lot of attention is that of precious metals. Precious metals have always been a small piece of the industrial machine but mostly are used as an inflation hedge and as an asset backed alternative currency as more and more of the fiat currencies look long term bankrupt. When everyone thinks of precious metals they first think of gold. Gold has always been the standard by which most of the worlds economies are pinned to. The shiny piece of coin that moves worlds markets and commands a tidy sum. - 23218

About the Author:

Adela writes about many topics related to businesses and financing. He teaches about various things including business, finance, and money market accounts.. You can also learn more from him about how to make money online