The Do's and Don'ts of Private Lending

The Do's and Don'ts of Private Lending
I have received a number of email questions recently on
very similar issues and thought I would address them as a
group versus individual emails. The questions are broken
down into general areas and include things to do and things
not to do. The Don'ts include advertising on Craig's List
and the use of the word "Guarantee". The Do's include what
are the best marketing methods. My comments on each are
below....

Don'ts

Advertising on Craig List - I do not recommend that you
advertise on Craig List. It is too public and there are
state and federal watchdogs looking for people who may be
violating securities rules. I have said on many occasions
that I do not recommend any advertising that is on a
national scale including your own web site. This kind of
advertising will get you into trouble with securities
regulators and may be considered a securities offering to
the public.

I know this from personal experience. Several years ago a
person responded to my Craig's List ad requesting
information about my investment program. After several
emails, the individual said he was ready to invest and I
directed him to my title company to prepare the appropriate
documents. Strangely, I never heard from the individual
again after that.

A short time later, I received a "cease and desist" letter
from the Pennsylvania Securities and Exchange. The letter
had several direct quotes from the emails I had exchanged
with this individual. The State did not fine me, but asked
that I never advertise on Craig's List or on my web site.
Needless to say, I am complying.

Guarantee - Do not use the word "guarantee" in any form in
any of your advertising. Do not use the word "guarantee" or
ever imply that somehow your investments are "guaranteed".
This is a sure fire way of attracting the attention of the
wrong people. You may say your investments are secured by
real estate, which is accurate, but do not use the word
guaranteed.

Do's

Schedule at least one breakfast meeting per week - This
simple advice might be the best and almost certain way to
attract large amounts of capital. Schedule a breakfast
meeting every week with someone who has extra cash
available and is interested in your lending program. You
will not get everyone to invest, but the chances are you
will get enough to support a reasonable real estate buying
business. At these meetings, be sure to ask the person for
the name of at least one other person they know who might
be interested in your programs.

Hand out 5 to 10 business cards per week - Again, this
simple but very powerful advice will ensure that you have
plenty of people on your prospect list. These are the
people you have breakfast meetings or schedule a group
meeting with. Everyone you come in contact with may be a
potential lender. Do not overlook people just because they
do not fit the perfect profile. You would be shocked that
people that you would never think of as investors may
become one of your best clients.

----------------------------------------------------
Mike Lautensack is a real estate entrepreneur and creator
of the Private Lender PowerPoint Presentation Kit. This
kit is loaded with tools and techniques to attract a
consistent stream of private investors. To learn more
about this powerful step-by-step kit go to
http://realestatewealthtoday.com/index.html

Bookkeeping Software Spreadsheets Are Essential Small Business Accounting Tools

Bookkeeping Software Spreadsheets Are Essential Small Business Accounting Tools
Businesses generally make extensive use of spreadsheets
both in accounting and all other business fields. Being a
numerically based system of analysing information
spreadsheets are used throughout every accounting function
as the technique presents an ideal basis to maintain
accuracy and automate the collection of financial
information.

Every small business needs to keep records of sales
invoices and income received and purchase invoices in
respect of expenses. It is not sufficient for accounting
and taxation purposes for these receipts and payments to be
left in the office or the back of a van in a carrier bag.
At some stage these prime bookkeeping documents need to be
processed.

Processing the financial documents related to a business
enterprise basically means they need to be listed. For
taxation and financial control purposes the invoices also
need to be added up and analysed. The most basic method
would be to simply make a list of the sales income and a
second list of the purchase expenses.

Using a manual method of listing the information falls
short of the analysis required and is more time consuming
that using a little technology to both ensure the summation
is accurate and the analysis simplified. Listing the sales
and expenses of a small business on spreadsheets is no more
difficult then a manual paper system and has tremendous
advantages in automating and ensuring accuracy.

Hence the use of bookkeeping spreadsheets to prepare the
accounting information required. Instead of listing the
items on a paper list the items can be just as easily
listed on a spreadsheet which will add up the items as
required without the requirement to double check the adding
up is accurate. Such a list has a history in accounting
term as a sales daybook and a purchase daybook

To achieve the required analysis of sales and purchases
all that is required is to write into the top of each of
the spreadsheet columns the titles of the analysis headings
required. Then repeat the value of each transaction in the
total column into the analysis columns. Use the spreadsheet
technology to add up each column and you have an effective
bookkeeping spreadsheet.

Preparing such a bookkeeping spreadsheet might and often
does suffice the needs of the smallest business enterprise
and is a close step towards achieving a valuable tool for
this purpose, bookkeeping software. Bookkeeping software
can be as simple as a home produced spreadsheet but with
additional facets that can have significant financial
benefits to the business.

Bookkeeping software produced on spreadsheets would
normally be a series of spreadsheets with the columns
preset and titled and formulae written into the sheet to
automatically add up each column. In addition the columns
used would normally be restricted to general headings to
include a full analysis of all items.

Small businesses that might produce their own spreadsheet
would often do this on an annual basis. Bookkeeping
software is much more likely to provide these bookkeeping
spreadsheet templates on a monthly basis to enable a degree
of financial control to be exercised by the small business.

That is the second real value of bookkeeping spreadsheets,
the ability to provide the business with financial
information and through that data financial control over
the business activities. The first value is of course the
simplicity of listing with automated summation of the
figures.

Small businesses can also benefit from professionally
produced bookkeeping spreadsheets that have been
specifically arranged not just to produce a list of income
and expenses but also in a way that analyses that
information in the way the small business requires it.
There are two main requirements of the way the financial
records are analysed being to produce a financial profit
and loss account for the business on a periodic basis but
also to provide the totals of the categories required for
taxation purposes.

Buying a piece of bookkeeping software written on
spreadsheets can thus become an essential tool for the
business. The essential element being to both make the
accounting simple and easy as listing items, automated
analysis and summation assisting the financial control and
improved financial performance while also producing the
benefits of being analysed to make the completion of annual
tax return forms easier.

Everyone in business wants to make a profit making
financial control important. Everyone in business has to
fill in tax forms and submit accounts in the tax authority
format. Bookkeeping spreadsheets provide an essential
accounting tool for every business to achieve these
objectives.

----------------------------------------------------
Terry Cartwright a qualified accountant at DIY Accounting
in the UK designs accounting software for limited companies
at http://www.diyaccounting.co.uk/companyaccounts.htm on
excel spreadsheets and self employed bookkeeping software
http://www.diyaccounting.co.uk/bookkeeping.htm

The Fab Five: 5 things you can do right now to improve your credit score

The Fab Five: 5 things you can do right now to improve your credit score
Happy 2008! Well, the holidays are over and we all know
what that means: it's time to make our list of resolutions.
From eating less to exercising more, everyone has different
goals for the New Year. There is one, however, that should
be on all our lists...

Make a resolution to manage your credit, every day.

Whether you have good credit that you want to maintain, or
need to improve your credit score a bit, there are 5 things
you can start doing right now to make your credit
resolution a reality.

1. Review your credit report. Inaccurate information on
your credit report can harm your credit health. So, one of
the first things you should do is order your 3-in-1 Credit
Report, read each section and make sure all the information
is correct. If you do find errors, you can dispute the
information and get it fixed.

It may surprise you, but your credit report can change on a
daily basis. Ordering it once a year just isn't enough. You
should check your credit report regularly (and remember,
checking your own report does not negatively impact your
score). The best way to stay on top of changes is by
monitoring your credit reports & credit scores regularly.

2. Pay your bills on time, put big red circles on your
calendar. Write yourself notes. Send reminder emails. Do
whatever it takes to pay your bills on time every time.
Late payments have one of the greatest negative effects on
your credit scores, so know your due dates.

If you struggle with paying on time, consider paying your
bills online or signing up for automatic payments. Many
lenders and companies offer these services for free.

3. Don't let credit card debt pile up. It's easy to charge
a little here, a little there, and the next thing you know
your credit card is maxed out. While it's okay to have
credit card balances, it's not okay to charge your cards to
the max. If you do carry balances month to month, keep them
below 35% of your credit limit. Have a limit of $1,000? Aim
to stay below $350.

4. Apply for new credit in moderation. Every time you apply
for credit, it shows up as an inquiry on your credit
report. When you have a large number of inquiries within a
short period of time, it makes you look desperate for
credit. And that, in turn, can lower your credit score.

5. Establish yourself. When it comes to improving your
credit score, time is on your side. Establishing a long
history of paying your bills on time and continuing to be
smart with your credit can add points to your score.

You can do it. Follow these fab five tips and you'll be on
your way to a better credit score. Here's to an incredible
year of credit!

----------------------------------------------------
Since 1999, TransUnion's TrueCredit.com has helped millions
of consumers manage their own credit health. Through a
suite of educational materials, free monthly newsletters
and easy-to-use products, the company helps consumers
understand personal credit management and empowers them to
achieve greater financial well-being. TrueCredit.com's
online products include credit reports, credit and
insurance scores, credit monitoring, debt management tools
and identity theft insurance services. TrueCredit.com is
the direct-to-consumer arm of Chicago-based TransUnion
Interactive, a subsidiary of TransUnion, a global leader in
credit and information management. Manage your credit.
Manage your life.(SM) http://www.truecredit.com .
For more information or to schedule an interview with Lucy
Duni, contact Steven Katz, TransUnion, at 312.985.2373
(skatz@transunion.com).

Nil-Rate Band Will Planning - Your Options Explained (Post 9 October 2007)

Nil-Rate Band Will Planning - Your Options Explained (Post 9 October 2007)
Since Alistair Darling's Pre-Budget Speech on October 9
2007, there have been a number of reports in the press
stating that will planning using the nil-rate band of the
first of a married couple to die will no longer be
necessary as you can now transfer the nil-rate band between
spouses and civil partners.

(The Nil-rate Band is currently £300,000, and upon
death a tax rate of 0% applies to the estate value up to
this amount).

This is generally true, but there will still be a number of
occasions when you may want to establish a discretionary
will trust:

1. Where a partner wants to benefit their children from a
former marriage on first death.

This could be achieved using a life interest trust in the
will, with income payable to the surviving spouse and
capital to the children from the first marriage. The
downside to this route is that it lacks flexibility,
especially if there is an intention to make capital
payments to the widow or widower by way of an interest-free
loan.

2. Where there may be a desire to avoid assets being
available to the local authority in the event of the
survivor going into care.

By leaving assets to a trust on first death, those assets
will not count as part of the surviving spouse's resources
for the purposes of the local authority charge. Indeed, the
split ownership of certain assets between the trust and
surviving spouse may reduce the value of the asset in the
hands of the surviving spouse (for example in the case of a
private residence).

3. Where it may be desired to avoid children inheriting
assets outright.

By passing assets to them via a trust, it will mean that
they are protected from the claims of creditors and
ex-spouses.

4. Where further Inheritance Tax could be available by the
trustees of the will trust making loans to the surviving
spouse.

This creates a debt and so reduces the taxable estate of
the survivor on his or her subsequent death (however be
aware there could be a restriction on the ability to deduct
the loans from the survivor's taxable estate.

Summary

These are just some of the issues that need to be
considered when drafting a will and giving thought to
whether a nil-rate band trust should be inserted in the
will or assets left outright to the surviving
spouse/partner.

What if you have already set up a Discretionary Will Trust?

It is thought that the most flexible route will be to
retain the trust in the will and then review matters after
the first death.

The Financial Tips Bottom Line:

Tax and will planning can be quite a technical subject,
therefore it is VITAL that you get the right professional
advice from an expert who can guide you through your
options.

By being proactive you could soon be utilising estate
planning strategies that you didn't even know existed!

----------------------------------------------------
Ray Prince is an Independent Financial Planner with
Rutherford Wilkinson plc, and helps UK Resident Doctors and
Dentists get the best deals on mortgages, protection and
investments, as well as helping them achieve their
financial objectives. Just visit
http://www.medicaldentalfs.com to get your free retirement
planning guide. Rutherford Wilkinson plc is authorised and
regulated by the Financial Services Authority.