Tag: Types

What Is Common Stock and What Is Preferred Stock? Stock Types and Their Differences

#investing in stocks

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What Is Common Stock and What Is Preferred Stock? Stock Types and Their Differences Explained

NEW YORK (TheStreet ) — When you step into the investing jungle, what will you find there? Lions (stocks) and tigers (bonds) and bears (cash), for sure. But they’re not as scary as you think.

These three are the main investment classes, but the one we’ll be tracking exclusively in this guide is the king of the jungle: stocks.

You may have heard stocks referred to as equities or securities. The reason they’re called equities is that you purchase an equity, or ownership, share of a company. Stock is also called a security for the same reason, because you’re securing a share of ownership in the company. That’s right; you’ll be a business owner just like you’ve always dreamed!

But, as you know from everyday life, there are terrifically run businesses and there are businesses that make you say, “I’ll never go back there again!” How do you know the difference before you buy the stock? That’s what this guided tour will be teaching you.

So when you buy stock, you become part owner of the company — maybe only a very small part, but still an owner. The size of the part you own, by the way, is irrelevant to your personal objectives.

We won’t cover bonds in this guide, but it’s important for you to know that they’re out there in the investing jungle. When you buy a bond, you don’t become part owner of a company — you’re the bank! You lend the company, or others, money. When companies, counties, municipalities or the U.S. government need to raise money, but not raise taxes or prices, they have bond offerings.

Bonds are loans, with a maturity date, and a percentage rate, promised to you, the Bank of I.O.U. The maturity date and set percentage rates can make bonds an attractive investment as part of a stabilizing influence in your investment portfolio. But you don’t want just bonds in your portfolio — over the long haul, stocks outperform bonds. If you want to purchase and own bonds, it’s very important to have quality bonds in your portfolio. If you want to continue to learn about bonds, see “Why Buy Bonds?”

When financial advisers suggest you diversify, or vary your investments, they’re advising you to spread out any potential risk, or decline, in your investment portfolio. Your investment portfolio is a collection of all of your investments, which could include assets from each of these three classes.

It’s like a nutritionist telling you to eat a little bit of each type of food to maximize your health. A balance of green vegetables, lean meats, dairy products and whole grain breads keep you physically and mentally healthy. Likewise, you want to invest your money in a variety of assets in your portfolio: stocks, bonds and cash products. Cash investments include products such as certificates of deposit (CDs) and money market mutual funds that keep you financially healthy.

Ready then? Get out your compass.


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Two Types of Investments in a Small Business #financing #a #business


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The Two Types of Investments You Can Make In a Small Business

Equity and Debt Are The Choices on the Small Business Investment Menu

When you make a small business investment, you have two choices: Do you take equity (an ownership stake) or debt (lend money in exchange for interest income and future repayment)? Both have their own advantages and disadvantages. Betsie Van Der Meer/Taxi/Getty Images

Updated August 22, 2016

Investing in a small business has always been, is currently, and most likely always will be one of the most popular ways individuals and families begin the journey to financial independence ; a way to create, nurture, and grow an asset that, when intelligently run under the right conditions, throws off surplus cash to provide not only a good standard of living, but to fund other investments. Still, it isn t uncommon, at least in nations with an entrepreneurial history such as the United States, for a small business owner to have never owned a publicly traded share of stock or a mutual fund. opting, instead, to put everything into their own restaurant, dry cleaning business, or sporting goods store.

Frequently, this small business grows to represent the most important financial resource the family owns, other than their primary residence.

In today s economic and political climate, these types of small business investments are often structured as either a limited liability company or a limited partnership. with the former being the most popular due to the fact it combines many of the best attributes of corporations and partnerships. In years past, sole proprietorships or general partnerships were more popular, which provide no protection for the owners personal assets outside of the company.

Whether you are considering investing in a small business by founding one from scratch or buying into an existing company, there are typically only two types of positions you can take: 1.) Equity, or 2.) Debt. Though there may be countless variations, all investments come back to those two foundations.

Equity Investments in Small Businesses

When you make an equity investment in a small business. you are buying an ownership stake. Equity investors provide capital, almost always in the form of cash, in exchange for a percentage of the profits and losses. The business can use this cash for a variety of things, including funding capital expenditures to expand, reducing debt, buying out other owners, building liquidity, or hiring new employees.

In some cases, the percentage of the business the investor receives is proportional to the total capital he or she provides. For example, if you kick in $100,000 in cash and other investors kick in $900,000, totaling $1,000,000, you might expect 10% of any profits or losses because you provided 1/10th of the total money. In other cases, especially when dealing with an established business or one put together by a key manager, this would not be the case. Consider the investment partnerships Warren Buffett ran in his 20 s and 30 s. He had limited partners contribute nearly all of the capital, but profits were split 75% to limited partners, in proportion to their overall share of the capital, and 25% to him as the general partner, despite having put up very little of his own money. The limited partners were fine with this arrangement because Buffett was providing expertise.

An equity investment in a small business can result in the biggest gains, as well as the most risk. If expenses run higher than sales, the losses get assigned to you.

A bad quarter, or year, and you might see the company fail or even go bankrupt. However, if things go well, your returns can be enormous. Virtually all of the research on millionaires in the United States shows that the single biggest classification of millionaires are self-made business owners. If you want to rank among the top 1% of wealth. owning a profitable business in a niche market that churns out dividends each year is your best chance, statistically.

Debt Investments in Small Businesses

When you make a debt investment in a small business, you loan it money in exchange for the promise of interest income and eventual repayment of the principal. Debt capital is most often provided either in the form of direct loans with regular amortization or the purchase of bonds issued by the business. which provide semi-annual interest payments mailed to the bondholder.

The biggest advantage of debt is that it has a privileged place in the capitalization structure. That means if the company goes bust, the debt has priority over the stockholders (the equity investors). Generally speaking, the highest level of debt is a first mortgage secured bond that has a lien on a specific piece of valuable property or an asset, such as a brand name. For example, if you loan money to an ice cream shop and are given a lien on the real estate and building, you can foreclose upon it in the event the company implodes. It may take time, effort, and money, but you should be able to recover whatever net proceeds you can get from the sale of the underlying property that you confiscate. The lowest level of debt is known as a debenture, which is a debt not secured by any specific asset but, rather, but the company s good name and credit.

Which Is Better: An Equity Investment or a Debt Investment?

There is no simple answer to this question. If you had been an early investor in McDonald s and bought equity, you d be rich. If you had bought bonds, making a debt investment, you would have earned a decent, but by no means spectacular, return on your money. On the other hand, if you buy into a business that fails, your best chance to escape unscathed is to own the debt, not the equity.

All of this is complicated by an observation that famed value investor Benjamin Graham made in his seminal work, Security Analysis. Namely, that equity in a business that is debt-free cannot pose any greater risk than a debt investment in the same firm because, in both cases, the person would be first in line in the capitalization structure.

The Preferred Equity Debt Hybrid

Sometimes, small business investments straddle the ground between equity investments and debt investments, modeling preferred stock. Far from offering the best of both worlds, preferred stock seems to combine the worst features of both equity and debt; namely, the limited upside potential of debt, with the lower capitalization rank of equity. There are always exceptions to the rule.


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The Most Profitable Types of Small Businesses #business #database


#most successful small businesses

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The Most Profitable Types of Small Businesses

If you re aiming for a lucrative business idea, it may be time to brush up on your number-crunching skills.

Accounting services topped the list of the top 15 small-business sectors by net profit margin over the last 12 months, according to Sageworks. a financial information company. The list was compiled using a database of more than 1,000 financial statements from private companies with less than $10 million in annual revenues.

The Sageworks data found that accounting led the pack in delivering the best profit margins, but service-based businesses in health care and real estate dominated the rest of the list.

Sageworks analyst Jenna Weaver notes that a lot of these service sectors are consistently at the top of the most profitable list. Service-based industries often have very healthy bottom lines, she says. Their overhead and equipment costs are often relatively low, and much of the time, it doesn t take a lot of upfront investment to get started.

Weaver adds: Often times, in cases like consulting, accounting, and legal services, you can get started right inside of your house, without even worrying about renting a space.

Check out the top 15 industries with the best net profit margins during the 12-month period ending July 31, 2014. For aspiring entrepreneurs, this may be the best place to start when considering new business ideas. (Note: Net profit margin has been adjusted to exclude taxes and include owner compensation in excess of their market-rate salaries.)

Credit: Sageworks, a financial information company (www.sageworks.com )

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Roof Repair Replacement Service, Roofing Materials & Contractors #roof #repair, #roof #replacement, #roof #installation,

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Specialist Roofing Contractors & Repair Services

Roof 101 provides specialist roofing contractors for all roofing needs, including roof installation and roof repair, at highly affordable rates.

Why Choose Roof 101?

Our roofing services are offered to you by reputable, professional roofing contractors, each specializing in different roofing aspects, including all roof repair and roof installation types. Our roofing contractors provide quality roofing services, workmanship and customer service that surpasses industry standards and customer expectation. No longer are you required to shop around for reliable roofing contractors, and fair business practice – we’ve already done it for you!

Our SPECIAL Offers

From residential to commercial roofing, we provide all roof installation and roof repair services for flat and sloped roofs.

Roof 101 to the Rescue!

We provide specialist roofing contractors for both emergency and day-to-day roof repair services. Whether your roof has suffered extreme weather damage, long-term weather exposure, or simple lack of maintenance, our roofing contractors are always on call to come to your aid. Our roof repair services are efficient and long-lasting – we take care of all damage and affected areas, and prevent further development into more serious problems. Roof repair should never be put on hold – contact Roof 101 today by phone or online, for a professional inspection and superior roof repair services.

Roof Installation for Every Situation

Roof 101 roofing contractors specialize in all forms of roofing installation for residential roofing and commercial roofing types. We offer a wide variety of roof installtion services for both flat and sloped roofs, including shingle, compostion asphalt and metal roof installation, flashings, guttering systems, skylights, fascias and a whole lot more. With years of experience and undisputed repuations for professionalsim and good workmanship, our roofing contractors will provide you with quality roofing installation that meets and exceeds industry standards. Call or write to us online to begin your roof installation project the right way – the Roof 101 way!

Roof Replacement

Having a though time deciding between repairing your roof and replacing it all together? If your roofing system is older than 20 years you might want to consider replacing it. Roof 101 Contractors will assist you in selecting the most suitable roofing material based on local climate conditions and the style of your home. Whether you are in the market for a new flat or hipped roofing system, our contractors specialize in all types of roof replacement for both commercial and residential applications. We stand by our work! Your new roof will not only be esthetically pleasing but also provide perfect insulation against heat and cold in addition to withstanding heavy snow, rain and hail.

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Different Types of Mortgage Loans Explained – 2017 Update #mortgage, #types, #explained, #2017


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The Different Types of Mortgage Loans in 2017, Explained

What are the different types of mortgage loans available to home buyers in 2017, and what are the pros and cons of each? This is one of the most common questions we receive here at the Home Buying Institute. This page offers some basic information about the types of loans available in 2017. Follow the hyperlinks provided for even more information. And be sure to send us your questions!

Loan Reps Are Standing By

Did you know you can get free, no-obligation mortgage quotes online? It’s a great way to get the ball rolling.

If you already understand the basic types of home loans, and you’re ready to move forward with the process, use one of the links provided below. Otherwise, keep reading below to learn about the different financing options available in 2017. You can always come back to these links later on.

Types of Mortgages Available in 2017, Explained

There are many different types of mortgages available to home buyers. They are all thoroughly explained on this website. But here, for the sake of simplicity, we have boiled it all down to the following options and categories.

Option 1: Fixed vs. Adjustable Rate

As a borrower, one of your first choices is whether you want a fixed-rate or an adjustable-rate mortgage loan. All loans fit into one of these two categories, or a combination hybrid category. Here’s the primary difference between the two types:

  • Fixed-rate mortgage loans have the same interest rate for the entire repayment term. Because of this, the size of your monthly payment will stay the same, month after month, and year after year. It will never change. This is true even for long-term financing options, such as the 30-year fixed-rate loan. It has the same interest rate, and the same monthly payment, for the entire term.
  • Adjustable-rate mortgage loans (ARMs) have an interest rate that will change or adjust from time to time. Typically, the rate on an ARM will change every year after an initial period of remaining fixed. It is therefore referred to as a hybrid product. A hybrid ARM loan is one that starts off with a fixed or unchanging interest rate, before switching over to an adjustable rate. For instance, the 5/1 ARM loan carries a fixed rate of interest for the first five years, after which it begins to adjust every one year, or annually. That’s what the 5 and the 1 signify in the name.

As you might imagine, both of these types of mortgages have certain pros and cons associated with them. Use the link above for a side-by-side comparison of these pros and cons. Here they are in a nutshell: The ARM loan starts off with a lower rate than the fixed type of loan, but it has the uncertainty of adjustments later on. With an adjustable mortgage product, the rate and monthly payments can rise over time. The primary benefit of a fixed loan is that the rate and monthly payments never change. But you will pay for that stability through higher interest charges, when compared to the initial rate of an ARM.

Option 2: Government-Insured vs. Conventional Loans

So you’ll have to choose between a fixed and adjustable-rate type of mortgage, as explained in the previous section. But there are other choices as well. You’ll also have to decide whether you want to use a government-insured home loan (such as FHA or VA), or a conventional regular type of loan. The differences between these two mortgage types are covered below.

A conventional home loan is one that is not insured or guaranteed by the federal government in any way. This distinguishes it from the three government-backed mortgage types explained below (FHA, VA and USDA).

Government-insured home loans include the following:

FHA Loans
The Federal Housing Administration (FHA) mortgage insurance program is managed by the Department of Housing and Urban Development (HUD), which is a department of the federal government. FHA loans are available to all types of borrowers, not just first-time buyers. The government insures the lender against losses that might result from borrower default. Advantage. This program allows you to make a down payment as low as 3.5% of the purchase price. Disadvantage. You’ll have to pay for mortgage insurance, which will increase the size of your monthly payments.

VA Loans
The U.S. Department of Veterans Affairs (VA) offers a loan program to military service members and their families. Similar to the FHA program, these types of mortgages are guaranteed by the federal government. This means the VA will reimburse the lender for any losses that may result from borrower default. The primary advantage of this program (and it’s a big one) is that borrowers can receive 100% financing for the purchase of a home. That means no down payment whatsoever.
Learn more: VA loan eligibility requirements

USDA / RHS Loans
The United States Department of Agriculture (USDA) offers a loan program for rural borrowers who meet certain income requirements. The program is managed by the Rural Housing Service (RHS), which is part of the Department of Agriculture. This type of mortgage loan is offered to rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing. Income must be no higher than 115% of the adjusted area median income [AMI]. The AMI varies by county. See the link below for details.
Learn more: USDA borrower eligibility website

Combining. It’s important to note that borrowers can combine the types of mortgage types explained above. For example, you might choose an FHA loan with a fixed interest rate, or a conventional home loan with an adjustable rate (ARM).

Option 3: Jumbo vs. Conforming Loan

There is another distinction that needs to be made, and it’s based on the size of the loan. Depending on the amount you are trying to borrow, you might fall into either the jumbo or conforming category. Here’s the difference between these two mortgage types.

  • A conforming loan is one that meets the underwriting guidelines of Fannie Mae or Freddie Mac, particularly where size is concerned. Fannie and Freddie are the two government-controlled corporations that purchase and sell mortgage-backed securities (MBS). Simply put, they buy loans from the lenders who generate them, and then sell them to investors via Wall Street. A conforming loan falls within their maximum size limits, and otherwise conforms to pre-established criteria.
  • A jumbo loan. on the other hand, exceeds the conforming loan limits established by Fannie Mae and Freddie Mac. This type of mortgage represents a higher risk for the lender, mainly due to its size. As a result, jumbo borrowers typically must have excellent credit and larger down payments, when compared to conforming loans. Interest rates are generally higher with the jumbo products, as well.

This page explains the different types of mortgage loans available in 2017. But it only provides a brief overview of each type. Follow the hyperlinks provided above to learn more about each option. We also encourage you to continue your research beyond this website. Education is the key to making smart decisions, as a home buyer or mortgage shopper.

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Texas Theft Laws – Shoplifting Defenses in Texas – Criminal Defense Lawyers #types #of

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Theft

Texas Theft/Shoplifting Laws: Criminal Charges and Penalties

Theft is a broad criminal charge in Texas that includes a range of offenses from shoplifting and larceny to bouncing checks to buying stolen property. The punishments generally depend on the value of the stolen item and can be as little as a fine or as serious as prison time in extreme cases.

The Texas Penal Code defines theft as taking someone else s property without consent, either by deception or by physically stealing it. You don t have to keep the property for it to be considered theft, but only long enough to deprive the owner of its value. And, if you take something, then return it for a reward, that is also theft under Texas law.

To charge you with theft, the police need to show that you acted with criminal intent. meaning you knew the property belonged to someone else and knew you didn t have their permission to take it, and that you actually have or had possession of the property. They can do by that using physical evidence, such as security camera video in a shoplifting case, or by statements from a witness, an accomplice, or you.

Types of Theft Under Texas Law

The four most common ways to commit misdemeanor theft or felony theft in Texas are these:

1. Shoplifting Taking items out of a store with the deliberate intention of not paying the store for the full value of the item. This includes taking, say, a shirt and leaving with it, or switching the tag on an expensive shirt with the tag on a less expensive one and paying the lower price at checkout.

2. Bad Checks Paying for an item on a closed account or an account that does not enough money to cover the amount of the check. If the check is written on a closed account. that alone is evidence of theft under Texas criminal law. If the check bounces. and you do not reimburse the merchant within 10 days of notification, then that is evidence of theft under the law.

3. General Theft Taking an item that belongs to someone else by any means when you do not have permission. Examples of this include taking a woman s purse from her shopping cart when her back is turned, stealing copper from a construction site, or stealing $20 from the cash register at work.

4. Buying/Accepting Stolen Property Taking possession of an item when you know the person selling or giving it to you is not the rightful owner. If you know a friend shoplifted an item from a store, then passed the item on to you, you have committed theft known as receiving stolen property by taking it, whether you paid for it or it was a gift.

Other common theft charges include embezzlement. and theft of services. which is the stealing of something that isn t a physical item. This charge also may be related to fraud or bad checks.

Penalties for Theft in Texas

The punishment for the criminal charge of theft in Texas is relative to the value of the item stolen. Obviously, the more value the item has the higher the penalty for taking it. And if it is more than one item, all the values are added together for the purposes of punishment.

For example, you may be charged with shoplifting five DVDs. Individually, they may be worth about $20 each. But added together, the total of the theft is $100, and that raises the seriousness of the punishment.

Penalties for Theft

5 to 99 years in a state prison and/or a fine of not more than $10,000

Those punishments can also be enhanced under certain conditions. For example, Class B and C misdemeanor theft charges increase one level if you have a previous theft conviction, and a Class A misdemeanor becomes a state jail felony if you have two previous theft convictions.

Also, the theft of some items such as firearms, or metals such as copper or aluminum are felonies, no matter the actual value of the items.

Shoplifting charges also automatically become more serious if you are caught using tools to defeat theft prevention devices, or if you are charged with organized retail theft. meaning you were working with others to steal items for profit.

However, in all likelihood, if you are charged with simple theft by shoplifting and are convicted or enter a plea, you probably will receive only community service and fines, as long as the value is low and it s a first or second offense. However, you are still stuck with a permanent criminal record which may never go away.

The fact of a permanent, public criminal record is the reason why most people hire a shoplifting defense attorney to fight the charges. Avoiding a criminal record in the internet age can save you tremendous headaches in the future. It could prevent you from getting a job, a scholarship or worse.

Civil Penalties for Shoplifting

The criminal shoplifting record for a conviction might not be the end of it, either.

A conviction for the criminal charge of theft frequently includes restitution to the victim, but Texas also has the Texas Theft Liability Act. This civil law allows the victims of theft to sue for damages and is separate from the criminal case.

The suits are typically used in shoplifting cases. The store will send you a letter demanding that you pay the value of the stolen item, as well as costs related to recovery. The law allows the victim to collect actual damages, plus up to $1,000 against an individual or actual damages, plus up to $5,000 against the parents or guardians if the accused shoplifter is a minor.

You should not try to face either the criminal charge of theft or a civil suit in a shoplifting case without consulting a Texas criminal defense lawyer who knows how to defend shoplifting/theft offenses. We can fight the case against you by challenging the reliability of eyewitness or accomplice testimony, and by questioning the legality of any searches by police or admissions you may have made to them.

Free Consultation

Contact our attorneys for a free legal case evaluation on any criminal charge by calling:

(800) 959-3429

Receive our free legal defense consultation and case evaluation. We’ll explain what you are facing in plain language, and tell you how we can help.


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Forms and Types of Business Entities – Choosing a Business Entity #quality #business #cards


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Business Entity Types

To get the most out of your small business, choose the right structure. Selecting the right type of company or corporation for your new business helps maximize your chances of financial and operational success.

Common types of business structures and corporations include C corporations, limited liability companies (LLC), partnerships, S corporations, and sole proprietorships. Learn more about each type of business or corporation:

Limited Liability Companies (LLCs)

  • Independent legal structures separate from their owners.
  • Help separate your personal assets from your business debts.
  • Taxed similarly to a sole proprietorship (if one owner) or a partnership (if multiple owners).
  • No limit to the number of owners.
  • Not required to hold annual meetings or record minutes.
  • Governed by operating agreements.

C Corporations

  • Independent legal and tax structures separate from their owners.
  • Help separate your personal assets from your business debts.
  • No limit to the number of shareholders.
  • Taxed on corporate profits and shareholder dividends.
  • Must hold annual meetings and record meeting minutes.

S Corporations

  • Independent legal and tax structures separate from their owners.
  • Help separate your personal assets from your business debts.
  • Owners report their share of profit and loss in the company on their personal tax returns.
  • Limits on number of shareholders, who must be U.S. citizens or residents.
  • Must hold annual meetings and record meeting minutes.

Partnerships

  • Partners remain personally liable for lawsuits filed against the business.
  • Usually no state filing required to form a partnership.
  • Easy to form and operate.
  • Owners report their share of profit and loss in the company on their personal tax returns.

Sole Proprietorships

  • Owner remains personally liable for lawsuits filed against the business.
  • No state filing required to form a sole proprietorship.
  • Easy to form and operate.
  • Owner reports business profit and loss on their personal tax return.

Review our Business Comparison Chart for more details. Regardless of business structure you choose, incorporate.com can help you incorporate or form an LLC online or by phone for less than the cost of using an attorney.

Ready to Form a Business? Get Started


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Types of Loan Programs: Conforming, Jumbo Loans, FRM, ARM, Balloon Mortgage, different mortgage loan

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different mortgage loan types

Different mortgage loan types

Different mortgage loan types

Different mortgage loan types

Different mortgage loan types

Types of Mortgage Loans

Conventional and Government Loans

Any mortgage loan other than an FHA, VA or an RHS loan is conventional one.

The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit. Go to FHA Programs page to get more information.

If you are looking for an FHA home loan right now, please feel free to request personalized rate quotes from HUD-approved mortgage lenders via our website.

VA loans are guaranteed by U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional loan. Lenders generally limit the maximum VA loan to $203,000. The U.S. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan.

VA-guaranteed loans are obtained by making application to private lending institutions. If you are interesting in obtaining a VA-guaranteed loan you can try our VA loan request form.

Please see also pamphlets published by VA.

RHS Loan Programs

The Rural Housing Service (RHS) of the U.S. Dept. of Agriculture guarantees loans for rural residents with minimal closing costs and no downpayment. Visit our page RHS programs for details.

Ginnie Mae which is part of HUD guarantees securities backed by pools of mortgage loans insured by these three federal agencies – FHA, or VA, or RHS. Securities are sold through financial institutions that trade government securities.

State and Local Housing Programs

Many states, counties and cities provide low to moderate housing finance programs, down payment assistance programs, or programs tailored specifically for a first time buyer. These programs are typically more lenient on the qualification guidelines and often designed with lower upfront fees. Also, there are often loan assistance programs offered at the local or state level such as MCC (Mortgage Credit Certificate) which allows you a tax credit for part of your interest payment. Most of these programs are fixed rate mortgages and have interest rates lower than the current market.

Conventional loans may be conforming and non-conforming. Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These two stockholder-owned corporations purchase mortgage loans complying with the guidelines from mortgage lending institutions, packages the mortgages into securities and sell the securities to investors. By doing so, Fannie Mae and Freddie Mac, like Ginnie Mae, provide a continuous flow of affordable funds for home financing that results in the availability of mortgage credit for Americans.

Fannie Mae and Freddie Mac guidelines establish the maximum loan amount, borrower credit and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac announces new loan limits every year.

The national conforming loan limit for mortgages that finance single-family one-unit properties increased from $33,000 in the early 1970s to $417,000 for 2006-2008, with limits 50 percent higher for four statutorily-designated high cost areas: Alaska, Hawaii, Guam, and the U.S. Virgin Islands. Since early 2008, a series of legislative acts have temporarily increased the one-unit limit to up to $729,750 in certain high-cost areas in the contiguous United States. Permanent limits, which apply to the Enterprises’ acquisitions of certain mortgages originated prior to July 1, 2007, are set under the terms of the Housing and Economic Recovery Act of 2008 (HERA).

For every county and county-equivalent in the country, maximum loan limits for mortgages can be found at: http://www.fhfa.gov/Default.aspx?Page=185

The 2013 conforming loan limits for first mortgages remain at the limits set in 2006, 2007, 2008, 2010 and 2011:


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Life Insurance For Seniors Quotes- SAVE $$ #senior #life #insurance, #senior #life #insurance #companies,senior

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Life Insurance For Seniors

Life insurance is important – though it s not a legal requirement like auto insurance, it still offers a variety of benefits to your children and family. People don’t like to talk about life insurance, mainly because they don’t want to think about death. Still, life insurance is morally required because it s your responsibility to do something to protect your family from running into trouble due to the loss of your capacity to earn an income.

Ironically, most people don’t take things seriously until they actually get in a position when it becomes a tad difficult to obtain a good insurance policy. For instance, it s only after hitting their 60 s that most seniors realize they should go for life insurance – or update it because the existing coverage isn t enough. You should understand that downplaying the importance of insurance could compound your family tragedy by turning it into a financial nightmare. Especially in case of seniors life insurance, which helps your dependents get some ongoing income to replace yours until the time they think they can live on their own. It s equally useful for getting funds to pay legal, medical and funeral costs, in case your family is not able to afford it. Simply put, life insurance for seniorsone sound way of providing your family with replacement income if you kick the bucket unexpectedly.

In addition, elderly life insurance will offer a number of other benefits. For instance:

  • It will work wonders to help keep your family from dealing with financial stress. Not only will they be able to deal with the cost of final expenses, they will also be able to use your insurance policy to pay off any additional debt that you wouldn t want to be covered by your family s estate or your spouse s retirement savings.
  • The senior life insurance will also help bridge the gaps of social security. The problem with Social Security Benefits is that they often change when a spouse dies; moreover, it takes time to get some help from these programs (they don t usually offer immediate benefits).

Basic Types of Seniors Life Insurance

Although you ll be able to see a variety of insurance plans available out there, they usually fall in one of two basic categories. First of all, there is whole life insurance for seniors. This is actually a comprehensive form of insurance, which is also called permanent life insurance .

Whole Life Insurance

The policy pays out to the beneficiary you may have mentioned in your insurance contract – these policies don t consider the age factor. The most important feature of this particular type of life insurance is that they come with an investment or savings component, which is usually supplemental to the original insurance coverage. This is generally another reason why you sometimes have to pay higher premiums for whole life insurance; however, the premiums may come down as you grow older. Many people opt for this type of insurance policy mainly because the payments generally stay the same for the total term of your policy. The other interesting features included in whole life insurance are favorable tax treatment, ability for cash value growth and permanent protection. The good thing with the feature of guaranteed cash value is that you can have access to your cash through loans as well as a number of other withdrawal options. But make sure you compare rates and review the financial status as well as reputation of different insurance providers before taking out a whole life insurance policy.

Term Life Insurance

Unlike whole life insurance, level term life insurance for seniors covers you for a specific term or duration. It helps your family handle their needs in the event of your sudden death within a pre-defined term. The term could be anything between 1 and 30 years, but it may be different (shorter) for elderly individuals. In case you re interested in this type of senior life insurance, do keep in mind that they will not build equity as whole life insurance does. However, you should always take your time and, along with considering senior life insurance quotes, you should compare them for other features. For instance, it makes a lot of sense to select a term life insurance policy if it comes with a renewal option – it allows you to renew your policy if the term is up and you feel you still need coverage. Even if comes with renewal features, make sure if it renews automatically or you have to take an action. Moreover, it s also a good idea to get in touch with your selected insurance provider and ask them if the premiums will remain fixed for the full term or they will change periodically. Some companies that offer life insurance for elderly tend to adjust premiums every few years, so it s important to know the way things work while checking term life insurance quotes for seniors.

How to Find Low Cost Life Insurance for Seniors

Generally, term life insurance is less expensive as compared to its other counterpart – whole life insurance. However, it s also a fact that life insurance rates for seniors for both types of policies will go up. Luckily, you can hope to get a better deal if you pay attention to the following points.

  • Maintain a Good Credit History: Your premiums will depend heavily on your credit history. If it s good and clean, you re always going to have more insurance providers interested in accepting you as a client. For people over 65, it s obvious to have a long history of financial responsibility, and if everything is clean – your mortgages are paid off, no credit card debt is there, etc. – you re sure to get a good deal on senior citizen life insurance.
  • Maintain Good Health Habits: Get in touch with your doctor and follow a better health plan. You may want to quit smoking or regulate your weight a bit before you start shopping for life insurance. Similarly, you should follow your doctor s instructions to ensure that you have your blood cholesterol level and blood pressure under control. Doing all this may trim down your premiums a bit, which is mainly because you won t be considered a risky candidate if you maintain good health. If you don t maintain a good health, you might have to obtain high risk life insurance .
  • Pick the Right Amount of Coverage: Sometimes, it doesn’t make sense to have a coverage worth of hundreds of thousands of dollars when you only want a death benefit. Therefore, it s important to determine your needs and then decide the amount of coverage you require.
  • Contact a Specialist: In order to find the best policy, you should contact an insurance agent who specializes in helping older citizens. It is so because they will have enough information to guide you in the right direction.
  • Use Online Insurance Providers: With so many insurance companies and comparison sites available online, it s a good idea to use them to obtain guaranteed life insurance for seniors. Make sure you get life insurance quotes for seniors from several insurance providers and compare them keeping your needs in mind. This is a surefire way of getting enough coverage for less.

Finding life insurance for seniors over 65 is not that difficult as it was a decade ago. With several insurance companies in business, it s possible to find a suitable insurance plan for you. Still, the fact remains that not all insurance companies are willing to take this risk, and it s mainly because they don t realize that 65 is the new 45 for senior citizens. The companies that realize this fact come up with different insurance plans for the elderly – they have different plans for seniors who are now grandparents and raising grandchildren, as compared to those who are alone and their kids have moved out. Top insurance companies do realize the difference between the rocker on the porch grandparent and an active or involved grandparent; therefore, they re always able to come up with suitable policies and insurance plans.

The progressive and dynamic companies that offer life insurance for seniors over 60 now understand that you may or may not be the same as everyone who is your age. It is due to the same reason that you will have to conduct some research to find a progressive company that helps you find the policy you need, regardless of your sex or age. It s true that life insurance seniors will definitely have higher rates, but it s important to ensure that you re falling for a plan that meets your needs.

One good way of finding cheap life insurance for seniors is to take advantage of comparison sites that generate quotes within seconds, and at the same time, help you make a choice considering the features of different insurance policies for seniors. Number of years working, savings account, years to retirement, investments, annual income, number of children, and mortgages are the most important factors that play into figuring out how much coverage is enough for you and your family. And NEVER forget that each kind of insurance plan will have benefits and drawbacks, which is why obtaining quotes from different companies will help find the right coverage for your family.

Also get sr22 insurance if you have a dui.


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Two Types of Investments in a Small Business #vending #machines #business


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The Two Types of Investments You Can Make In a Small Business

Equity and Debt Are The Choices on the Small Business Investment Menu

When you make a small business investment, you have two choices: Do you take equity (an ownership stake) or debt (lend money in exchange for interest income and future repayment)? Both have their own advantages and disadvantages. Betsie Van Der Meer/Taxi/Getty Images

Updated August 22, 2016

Investing in a small business has always been, is currently, and most likely always will be one of the most popular ways individuals and families begin the journey to financial independence ; a way to create, nurture, and grow an asset that, when intelligently run under the right conditions, throws off surplus cash to provide not only a good standard of living, but to fund other investments. Still, it isn t uncommon, at least in nations with an entrepreneurial history such as the United States, for a small business owner to have never owned a publicly traded share of stock or a mutual fund. opting, instead, to put everything into their own restaurant, dry cleaning business, or sporting goods store.

Frequently, this small business grows to represent the most important financial resource the family owns, other than their primary residence.

In today s economic and political climate, these types of small business investments are often structured as either a limited liability company or a limited partnership. with the former being the most popular due to the fact it combines many of the best attributes of corporations and partnerships. In years past, sole proprietorships or general partnerships were more popular, which provide no protection for the owners personal assets outside of the company.

Whether you are considering investing in a small business by founding one from scratch or buying into an existing company, there are typically only two types of positions you can take: 1.) Equity, or 2.) Debt. Though there may be countless variations, all investments come back to those two foundations.

Equity Investments in Small Businesses

When you make an equity investment in a small business. you are buying an ownership stake. Equity investors provide capital, almost always in the form of cash, in exchange for a percentage of the profits and losses. The business can use this cash for a variety of things, including funding capital expenditures to expand, reducing debt, buying out other owners, building liquidity, or hiring new employees.

In some cases, the percentage of the business the investor receives is proportional to the total capital he or she provides. For example, if you kick in $100,000 in cash and other investors kick in $900,000, totaling $1,000,000, you might expect 10% of any profits or losses because you provided 1/10th of the total money. In other cases, especially when dealing with an established business or one put together by a key manager, this would not be the case. Consider the investment partnerships Warren Buffett ran in his 20 s and 30 s. He had limited partners contribute nearly all of the capital, but profits were split 75% to limited partners, in proportion to their overall share of the capital, and 25% to him as the general partner, despite having put up very little of his own money. The limited partners were fine with this arrangement because Buffett was providing expertise.

An equity investment in a small business can result in the biggest gains, as well as the most risk. If expenses run higher than sales, the losses get assigned to you.

A bad quarter, or year, and you might see the company fail or even go bankrupt. However, if things go well, your returns can be enormous. Virtually all of the research on millionaires in the United States shows that the single biggest classification of millionaires are self-made business owners. If you want to rank among the top 1% of wealth. owning a profitable business in a niche market that churns out dividends each year is your best chance, statistically.

Debt Investments in Small Businesses

When you make a debt investment in a small business, you loan it money in exchange for the promise of interest income and eventual repayment of the principal. Debt capital is most often provided either in the form of direct loans with regular amortization or the purchase of bonds issued by the business. which provide semi-annual interest payments mailed to the bondholder.

The biggest advantage of debt is that it has a privileged place in the capitalization structure. That means if the company goes bust, the debt has priority over the stockholders (the equity investors). Generally speaking, the highest level of debt is a first mortgage secured bond that has a lien on a specific piece of valuable property or an asset, such as a brand name. For example, if you loan money to an ice cream shop and are given a lien on the real estate and building, you can foreclose upon it in the event the company implodes. It may take time, effort, and money, but you should be able to recover whatever net proceeds you can get from the sale of the underlying property that you confiscate. The lowest level of debt is known as a debenture, which is a debt not secured by any specific asset but, rather, but the company s good name and credit.

Which Is Better: An Equity Investment or a Debt Investment?

There is no simple answer to this question. If you had been an early investor in McDonald s and bought equity, you d be rich. If you had bought bonds, making a debt investment, you would have earned a decent, but by no means spectacular, return on your money. On the other hand, if you buy into a business that fails, your best chance to escape unscathed is to own the debt, not the equity.

All of this is complicated by an observation that famed value investor Benjamin Graham made in his seminal work, Security Analysis. Namely, that equity in a business that is debt-free cannot pose any greater risk than a debt investment in the same firm because, in both cases, the person would be first in line in the capitalization structure.

The Preferred Equity Debt Hybrid

Sometimes, small business investments straddle the ground between equity investments and debt investments, modeling preferred stock. Far from offering the best of both worlds, preferred stock seems to combine the worst features of both equity and debt; namely, the limited upside potential of debt, with the lower capitalization rank of equity. There are always exceptions to the rule.


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