Distressed property has garnered national attention in the real
estate industry, as so many lenders have wound up with foreclosures that
they must move quickly to limit losses. However, because of the sticky
situation that many lenders are currently in, finding financing to
acquire such properties seems nearly impossible for most buyers. Not
only have we seen the banking industry take a tumble, but most lenders
are now doubly cautious about lending money to purchase these properties
again. So, what is one to do?
There are some investors out there
that have enough liquid capital to simply snatch up these properties,
restore them, and sell them for a substantial profit. But, for most of
us, the necessary capital simply isn't there; and, for those of us
fortunate enough to have deep pockets, the risk doesn't match the
reward. Further, if you DO purchase the property outright, what does
that do to your overall portfolio, much less the smart leverage that you
currently have?
Fortunately, there are several avenues that an
investor can take when pursuing a distressed investment property. But,
before we dive into the ways in which you can finance distressed properties, let's first address what you should do before to work on the acquisition!
What To Do Before You Finance?
Distressed
properties are usually in disrepair, as many owners of the now
foreclosed properties didn't care too much about the state of the
property while vacating. While this may seem like a significant issue,
it can also help to lower the overall asking price by the mortgagee,
which can help to add a level of "built-in profit" for those interested
in restoring and flipping the location.
So, before you get your
heart set on a particular location, get various appraisals of the
necessary repairs. This will give you a better idea of how much capital
you'll have to invest, in addition to the asking price, before turning
the property and enjoying your profit!
Finding Financing Amidst a Recession
Publications
will continue to remind us that the recession is "over". If that's the
case, then why aren't lenders ponying up the money we need to acquire
property? Exactly. So, with that in mind, remember that banks do not
want to hang onto these properties, so most of them are priced to move.
Conversely, and ultimately adding to the recession, these banks are also
hesitant to put any money back into the locations. In other words,
those that can find financing have the real estate industry at their
fingertips!
The Original Lender
Though it
may seem strange, some banks are willing to offer up some financing on a
property that they already own, provided that the new buyer can
actually make the payments. This can be a great way to go, provided that
you have ALL of the necessary documentation (and be ready, it's a lot)
and are willing to endure the incredibly strict evaluation process. If
you do, and are up to the challenge, this is one of the better ways to
go!
Transactional Funding Option
Transactional
funding has seen a nice boom in recent years, given the large number of
foreclosed properties currently sitting on the market. Investment firms
provide capital for a property's purchase, with a pre-contracted profit
margin/sale date already in place at the time of issuance. This lending
option is great for properties that will be purchased and sold within a
short period of time.
Saturday 24 May 2014
Improve Your Health Through Positive Thinking
Your mother probably repeatedly told you to "think good
thoughts," especially if something was troubling you or if you had a bad
day. The power of positive thinking does not make problems magically go
away, but it can help you reduce stress and maintain a positive outlook
on life, which is a good stress management tool. By helping to manage
stress, positive thinking has many health benefits.
The Benefits of Positive Thinking
Although scientists keep exploring how the power of positive thinking produces health benefits, it is unclear exactly why it does. Some of the benefits gained from positivity include both medical and mental health benefits. People who maintain a positive outlook have lower rates of depression and they experience fewer instances of distressful thinking. People who practice positive thinking are psychologically healthier than people who do not have a happy outlook on life.
Medically, positivity can help to reduce the effects of stress on the body and improve the immune system, helping people to be more resistant to viruses. Less stress also helps to put less strain on the cardiovascular system by keeping blood pressure levels lower and reduces the risk of death from heart disease or strokes. Reducing stress can also help to increase a person's life span.
How to Practice Positive Thinking
While it may seem that some people are naturally more positive than others are, it takes a conscious effort to practice positive thinking. All too often, people are stuck in a pattern of negative thought and self-talk, which will continue if not consciously stopped. Be more aware of your thoughts so you can catch the negative ones as they begin to form. As they do begin to form, you can make an effort turn them around to be more positive.
When you catch yourself starting to have negative thoughts, you can reframe those thoughts so they become positive. Work to get rid of absolutes when you think negatively. Using "I never" or "I always" often has negative implications, which you need to change in order to produce more positive thoughts.
It takes courage to recognize when you need to change something about yourself, even if it is something internally like your thoughts. When you take steps to stop negative thoughts and start thinking more positively, you will find it easier to face your problems and resolve them. Making a conscious effort to change negative thoughts will help you live happier.
The Benefits of Positive Thinking
Although scientists keep exploring how the power of positive thinking produces health benefits, it is unclear exactly why it does. Some of the benefits gained from positivity include both medical and mental health benefits. People who maintain a positive outlook have lower rates of depression and they experience fewer instances of distressful thinking. People who practice positive thinking are psychologically healthier than people who do not have a happy outlook on life.
Medically, positivity can help to reduce the effects of stress on the body and improve the immune system, helping people to be more resistant to viruses. Less stress also helps to put less strain on the cardiovascular system by keeping blood pressure levels lower and reduces the risk of death from heart disease or strokes. Reducing stress can also help to increase a person's life span.
How to Practice Positive Thinking
While it may seem that some people are naturally more positive than others are, it takes a conscious effort to practice positive thinking. All too often, people are stuck in a pattern of negative thought and self-talk, which will continue if not consciously stopped. Be more aware of your thoughts so you can catch the negative ones as they begin to form. As they do begin to form, you can make an effort turn them around to be more positive.
When you catch yourself starting to have negative thoughts, you can reframe those thoughts so they become positive. Work to get rid of absolutes when you think negatively. Using "I never" or "I always" often has negative implications, which you need to change in order to produce more positive thoughts.
It takes courage to recognize when you need to change something about yourself, even if it is something internally like your thoughts. When you take steps to stop negative thoughts and start thinking more positively, you will find it easier to face your problems and resolve them. Making a conscious effort to change negative thoughts will help you live happier.
Understanding Securitization: Hard Money Lending and the Weak Secondary Loan Marketplace
A loan's terms are directly related to the security that the lender
has that they will have their investment returned. As it pertains to
real estate investing, things have dried up considerably in the last
decade due to the mortgage crisis and the financial sector's reluctance
to lend money. This puts those interested in "flipping" commercial
properties in a tough position, as the loan market isn't what it used to
be.
This dynamic is causing many investors to turn to hard money lending firms as a means of generating the necessary capital to pounce on investment opportunities. While the interest rates are often higher, the process is streamlined, giving borrowers an incredible advantage.
But, in order to fully understand the climate in real estate lending, we must first analyze the nature of lending and how the mortgage crisis may have changed the lending landscape permanently.
The Secondary Loan Marketplace
When a lender issues a real estate loan to a borrower, the intention is not to hold the loan for its entirety, as many would believe. Instead, the loan is often initiated, held for a short period of time, and then sold to another lender. Organizations such as Fannie Mae and Freddie Mac are perfect examples of secondary lenders. Though they did not initiate the loan, they have purchased it from its original lender.
Why does this matter?
When secondary lenders stopped purchasing mortgages due to their suddenly high risk, first-tier lenders stopped issuing loans. After all, they don't want to keep the loans for the duration of their terms, so if the secondary market isn't buying, they certainly aren't going to issue new loans.
And, while some lenders DO still have an interest in lending, they certainly aren't interested in offering capital to ANYTHING that carries even a remote amount of risk. The securitization of the loans simply isn't enough to sway their decision, leaving many real estate investors waiting for weeks for a decision, before eventually learning that they have been declined.
In other words, the secondary lending market has EVERYTHING to do with the current climate in real estate finance, and those without access to capital simply cannot makes moves within the industry.
The Emergence of Lending Alternatives
With the previous information in mind, it isn't difficult to see why hard money lenders have enjoyed a rapid ascent within the real estate industry. By eliminating much of the red tape that traditional lenders endure, these agencies can help investors access capital quickly. Anyone who has "flipped" a property can attest to the importance of timing when it comes to borrowing.
Hard money lenders, or "private lenders" as they are often called, have helped bridge the gap between investors and the newly created "stingy" policies found in the finance sector. These loans often carry higher interest rates, but because the capital shouldn't be tied up for long (the goal is to "flip", remember?), the prospect of a higher interest rate isn't alarming.
We always have to remember that RISK is the single, largest factor when a lender considers your request for capital. Will the investment pay off? What if you default? Will the money get recouped? These questions will determine the outcome of your loan submission, which brings us to our last topic...
This dynamic is causing many investors to turn to hard money lending firms as a means of generating the necessary capital to pounce on investment opportunities. While the interest rates are often higher, the process is streamlined, giving borrowers an incredible advantage.
But, in order to fully understand the climate in real estate lending, we must first analyze the nature of lending and how the mortgage crisis may have changed the lending landscape permanently.
The Secondary Loan Marketplace
When a lender issues a real estate loan to a borrower, the intention is not to hold the loan for its entirety, as many would believe. Instead, the loan is often initiated, held for a short period of time, and then sold to another lender. Organizations such as Fannie Mae and Freddie Mac are perfect examples of secondary lenders. Though they did not initiate the loan, they have purchased it from its original lender.
Why does this matter?
When secondary lenders stopped purchasing mortgages due to their suddenly high risk, first-tier lenders stopped issuing loans. After all, they don't want to keep the loans for the duration of their terms, so if the secondary market isn't buying, they certainly aren't going to issue new loans.
And, while some lenders DO still have an interest in lending, they certainly aren't interested in offering capital to ANYTHING that carries even a remote amount of risk. The securitization of the loans simply isn't enough to sway their decision, leaving many real estate investors waiting for weeks for a decision, before eventually learning that they have been declined.
In other words, the secondary lending market has EVERYTHING to do with the current climate in real estate finance, and those without access to capital simply cannot makes moves within the industry.
The Emergence of Lending Alternatives
With the previous information in mind, it isn't difficult to see why hard money lenders have enjoyed a rapid ascent within the real estate industry. By eliminating much of the red tape that traditional lenders endure, these agencies can help investors access capital quickly. Anyone who has "flipped" a property can attest to the importance of timing when it comes to borrowing.
Hard money lenders, or "private lenders" as they are often called, have helped bridge the gap between investors and the newly created "stingy" policies found in the finance sector. These loans often carry higher interest rates, but because the capital shouldn't be tied up for long (the goal is to "flip", remember?), the prospect of a higher interest rate isn't alarming.
We always have to remember that RISK is the single, largest factor when a lender considers your request for capital. Will the investment pay off? What if you default? Will the money get recouped? These questions will determine the outcome of your loan submission, which brings us to our last topic...
Mean Girls in the Office
I've been listening to a lot of professional women tell me how they
see themselves and other women in their workplaces. While they often
appreciate each other and get and offer support from their work friends
and colleagues, their interactions with a few Mean Girls in the office
can make for a long day.
And it's not just the typical office environment where women find conflict with each other. Stories from the world of women's professional tennis suggest not all of the ladies get along together. "What can I say," admits Russian player Nadia Petrova, "Girls are girls. We always find something to fuss about." (1) Reasons for this animosity, say Tour followers, stem from the constant media attention, the player's frequent use of social media to criticize each other, and the younger ages of female tennis stars, as opposed to their older male counterparts.
Whatever the reasons, what happens in professional tennis locker rooms is not uncommon in the office environment either. One of my female clients, who works in a government office, tells me, "We get along with the men in the offices. With a few exceptions with some idiot guys, it's mostly about business and getting the work done. We don't always get along so well with the women in our offices, because for a lot of them, it's more about catty stuff, hurt feelings, hidden agendas, and long memories and grudges over small, stupid things that happened."
To be sure, men and women working together still have a lot of significant obstacles to surmount, including pay disparities, promotional barriers, and overt or covert sexual harassment. To say that women have it harder than men when it comes to making it to the C-level in our organizations understates it. According to Catalyst.org, women hold 4.6 percent of CEO positions in both the Fortune 500 and Fortune 1000 lists. (Academics and others who study this sad lack of female involvement at the highest levels in an organization point to a critical fact: Most CEOs come from backgrounds in finance or technology, two areas where women are not as prevalent.)
Many women I've asked tell me males are often less emotional about workplace decisions than females. "Men get over it," says one woman who has worked for the same organization for 26 years. "You can disagree with one of your male colleagues about something important and they move on. They let it go. A lot of women file it away for later." She says given her choice, she would usually rather work for a male boss than a female one. "There are some exceptions, of course. I've had some lousy bosses who were men too. But a lot of the female supervisors I've worked for over the years seemed to be trying too hard. What they think is 'being hands-on,' everyone else sees as micro-managing. They are often too emotional about their decisions and think that when people have other views they are challenging their authority."
Female leaders at every level in an organization find themselves walking a behavioral tight rope not required of their male counterparts. "If you're a male manager," says one of my female friends, who is a boss, "and you're assertive and demand high-performance from your team, then you're called a good leader and you're rewarded. If you do the exact same as a female manager, they give you the Bitch Label." So how can women succeed as managers of both male and female employees? Turn into a robot? Be passive and unassuming? Wear the "Bitch Label" with pride? Tough it out until the organizational climate changes? Not necessarily. Successful female executives, managers, and supervisors know how to manage their emotions, balance being assertive with being empathic, and change their communication approach by focusing on the words they choose.
Consider the use of language to illustrate gender differences at work. A male manager will say to one of his employees, "Please get this done and get it back to me by 10 tomorrow." A female manager might say to one of her employees, "Could you please get this done and get it back to me by 10 tomorrow?" Note the use of "qualifying language" in her request. For the male manager, it's more of an order, a command; for the female manager, it seems like more of a request. Eliminating these qualifiers may help change the perception of her male and female employees about her leadership style.
Think about how appearance plays such a part in assumptions, acceptance, and the re-creation of the usual stereotypes at work. If a woman takes a position as an administrative assistant, clerical employee, secretary, or receptionist, and she dresses provocatively (low-cut tops, short skirts, Saturday-night-at-the-club shoes, etc.) on a daily basis, in defiance of the office dress code or culture, what is the reaction from her co-workers? Some men may hang around to try and flirt, some men may roll their eyes and keep moving, and most men will ignore it and keep their focus on business. "But for some of the women in the office," says one of my female friends who works in healthcare, "out come the claws. We start calling her 'hoochie mama' or 'that bitch' behind her back, or make assumptions that she's trying to sleep her way to a promotion."
Angie Dickinson is best known for her blonde bombshell persona and being the star of the 1970s TV drama, "Police Woman." The show was one of the first featuring a female lead in a primetime drama. She once said, "I dress for women. I undress for men." Women who dress outside the formal or informal dress codes can find themselves ostracized by their female counterparts, and not know why. Perhaps their choice of clothing is intentional or unintentional; the results can be the same. They are labeled, shunned, and dismissed by their female colleagues. If this is true, and many women tell me it is, shouldn't a forward-thinking female supervisor, female HR employee, or more experienced female co-worker take this woman aside and explain the benefits of dressing more appropriately? A female colleague who works in marketing asks me, "Why don't women do this for each other?" already knowing the answer is complex.
Appearance plays a big part in female office politics, another female friend tells me. "I worked in an office where the really cute, skinny young girls called us older, heavier women, 'Shreks,' like from the movie. They had numbers for us, like, 'I'm going to a meeting with Shrek 2' or 'Give this to Shrek 5.' It was all very funny to them until we found out about it. Then the silent treatment began."
Can we agree that both genders in the workplace could benefit from more outcome-based communications (what's right versus who's right), less scorekeeping, and not holding grudges? Can female co-workers agree that being judgmental, using passive-aggressive behaviors, or gossiping about other women is counter-productive to their success? And can we agree that males and females at work would all benefit from more support, more patience with each other, and more social intelligence? The battle for civil treatment at work, between the genders and with them, continues.
And it's not just the typical office environment where women find conflict with each other. Stories from the world of women's professional tennis suggest not all of the ladies get along together. "What can I say," admits Russian player Nadia Petrova, "Girls are girls. We always find something to fuss about." (1) Reasons for this animosity, say Tour followers, stem from the constant media attention, the player's frequent use of social media to criticize each other, and the younger ages of female tennis stars, as opposed to their older male counterparts.
Whatever the reasons, what happens in professional tennis locker rooms is not uncommon in the office environment either. One of my female clients, who works in a government office, tells me, "We get along with the men in the offices. With a few exceptions with some idiot guys, it's mostly about business and getting the work done. We don't always get along so well with the women in our offices, because for a lot of them, it's more about catty stuff, hurt feelings, hidden agendas, and long memories and grudges over small, stupid things that happened."
To be sure, men and women working together still have a lot of significant obstacles to surmount, including pay disparities, promotional barriers, and overt or covert sexual harassment. To say that women have it harder than men when it comes to making it to the C-level in our organizations understates it. According to Catalyst.org, women hold 4.6 percent of CEO positions in both the Fortune 500 and Fortune 1000 lists. (Academics and others who study this sad lack of female involvement at the highest levels in an organization point to a critical fact: Most CEOs come from backgrounds in finance or technology, two areas where women are not as prevalent.)
Many women I've asked tell me males are often less emotional about workplace decisions than females. "Men get over it," says one woman who has worked for the same organization for 26 years. "You can disagree with one of your male colleagues about something important and they move on. They let it go. A lot of women file it away for later." She says given her choice, she would usually rather work for a male boss than a female one. "There are some exceptions, of course. I've had some lousy bosses who were men too. But a lot of the female supervisors I've worked for over the years seemed to be trying too hard. What they think is 'being hands-on,' everyone else sees as micro-managing. They are often too emotional about their decisions and think that when people have other views they are challenging their authority."
Female leaders at every level in an organization find themselves walking a behavioral tight rope not required of their male counterparts. "If you're a male manager," says one of my female friends, who is a boss, "and you're assertive and demand high-performance from your team, then you're called a good leader and you're rewarded. If you do the exact same as a female manager, they give you the Bitch Label." So how can women succeed as managers of both male and female employees? Turn into a robot? Be passive and unassuming? Wear the "Bitch Label" with pride? Tough it out until the organizational climate changes? Not necessarily. Successful female executives, managers, and supervisors know how to manage their emotions, balance being assertive with being empathic, and change their communication approach by focusing on the words they choose.
Consider the use of language to illustrate gender differences at work. A male manager will say to one of his employees, "Please get this done and get it back to me by 10 tomorrow." A female manager might say to one of her employees, "Could you please get this done and get it back to me by 10 tomorrow?" Note the use of "qualifying language" in her request. For the male manager, it's more of an order, a command; for the female manager, it seems like more of a request. Eliminating these qualifiers may help change the perception of her male and female employees about her leadership style.
Think about how appearance plays such a part in assumptions, acceptance, and the re-creation of the usual stereotypes at work. If a woman takes a position as an administrative assistant, clerical employee, secretary, or receptionist, and she dresses provocatively (low-cut tops, short skirts, Saturday-night-at-the-club shoes, etc.) on a daily basis, in defiance of the office dress code or culture, what is the reaction from her co-workers? Some men may hang around to try and flirt, some men may roll their eyes and keep moving, and most men will ignore it and keep their focus on business. "But for some of the women in the office," says one of my female friends who works in healthcare, "out come the claws. We start calling her 'hoochie mama' or 'that bitch' behind her back, or make assumptions that she's trying to sleep her way to a promotion."
Angie Dickinson is best known for her blonde bombshell persona and being the star of the 1970s TV drama, "Police Woman." The show was one of the first featuring a female lead in a primetime drama. She once said, "I dress for women. I undress for men." Women who dress outside the formal or informal dress codes can find themselves ostracized by their female counterparts, and not know why. Perhaps their choice of clothing is intentional or unintentional; the results can be the same. They are labeled, shunned, and dismissed by their female colleagues. If this is true, and many women tell me it is, shouldn't a forward-thinking female supervisor, female HR employee, or more experienced female co-worker take this woman aside and explain the benefits of dressing more appropriately? A female colleague who works in marketing asks me, "Why don't women do this for each other?" already knowing the answer is complex.
Appearance plays a big part in female office politics, another female friend tells me. "I worked in an office where the really cute, skinny young girls called us older, heavier women, 'Shreks,' like from the movie. They had numbers for us, like, 'I'm going to a meeting with Shrek 2' or 'Give this to Shrek 5.' It was all very funny to them until we found out about it. Then the silent treatment began."
Can we agree that both genders in the workplace could benefit from more outcome-based communications (what's right versus who's right), less scorekeeping, and not holding grudges? Can female co-workers agree that being judgmental, using passive-aggressive behaviors, or gossiping about other women is counter-productive to their success? And can we agree that males and females at work would all benefit from more support, more patience with each other, and more social intelligence? The battle for civil treatment at work, between the genders and with them, continues.
How to Make a Natural Body Lotion
If you haven't tried doing one yet, I can tell you that it's really
easy and fun to do. Plus, one great perk is if you get to make an extra
amount, you can put them in cute little containers and give them as
gifts to your family and friends. They'd love your creation and
appreciate the fact that it's a healthy product as well.
So here are the things that you'll need:
Procedure:
Part 1
So here are the things that you'll need:
- Three fourths cup of pure oil. Almond oil is what most people recommend because it's good in absorbing and doesn't leave a greasy feel. You can easily buy it in food stores as well.
- One cup of water or if available, rose water.
- Two tablespoons of shaved beeswax. Make sure what you buy is labeled shaved as most food stores have the plain beeswax. Moreover, other kinds of wax are petroleum byproducts.
- Thirty drops of essential oils. Do refrain from buying fragrance as it's synthetic. Lavender is especially good because not only is it aromatic, it also comes with healing properties for any skin type and can soothe sunburns as well.
- A covered glass jar for storage.
Procedure:
Part 1
- Pour the pure oil into a measuring cup. Preferably a Pyrex one. Add in the shaved beeswax.
- Set this up in a saucepan containing water that comes halfway up the side of the Pyrex cup.
- Heat until the beeswax dissolves then immediately remove from the stove.
- Let it cool for one to two minutes but not a minute longer as the beeswax would harden.
- Pour the water or rose water into the blender and blend at high speed with the lid on. Make sure there's a hole on the lid's left side where you'll add in the oil and beeswax mixture so that it's combined with the water or rose water.
- As you pour the oil, the mixture will emulsify.
- You will see it start to thicken when three quarters of the oil has already been poured.
- Continue pouring the oil until it's completely incorporated into the water or rose water.
- Add in the 30 drops of your preferred essential oil.
- Blend them to complete your lotion.
- Pour the lotion into the glass jar for storage.
- Wipe off any remaining lotion residue from the blender using a spatula.
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