Abandoned Properties: a New Opportunity - Part I

Abandoned Properties: a New Opportunity - Part I
The collapsing real estate market is creating some exciting
new opportunities in real estate for savvy investors not
afraid to capitalize on a new opportunity. When real
estate was hot and the market was rising, and interest
rates were stable, millions of Americans opted to roll the
dice on adjustable-rate mortgages. Now the market has
tanked, and so many have lost their bet, rates are
resetting and hundreds of thousands of mortgages are in
jeopardy. A lot of these property owners have become
subprime risks, and as a result are unable to refinance.
Facing payments they can't make, some are simply walking
away from their properties. This is bad for the homeowner,
but for investors it's an once-in-a-lifetime opportunity.

When I mention the phrase "walking away from their
property", I literally mean homeowners are abandoning their
property. When abandoned property is mentioned, the mental
image that comes to mind is typically a dump somewhere in
the ghetto, with boarded up windows, and junk strewn about
the yard. This is a classic example of an abandoned
property, but it's also somewhat antiquated.

In 2007, an abandoned property can be a half million dollar
home in a very good neighborhood. If the owners can't make
payments, rather than face the indignity or the
embarrassment of foreclosure, many of them pack their
belongings into a U-Haul truck and drive away hoping to
avoid the problem altogether. The home owner then mails
the keys to the bank. Banks call this "Jingle Mail".

As a savvy real estate investor, you can cash in on this
opportunity by locating a well-qualified abandoned
property, tracking down the owner, and convincing them to
sell to you.

It's not as difficult as it seems.

The best place to locate abandoned property that might fit
your investment criteria is in middle or upper middle class
neighborhoods. Good signs of abandonment are properties
that are obviously vacant, as well as overgrown with weeds
or covered with unshoveled snow. These properties may have
newspapers piled up on the porch, and may be showing some
signs of distress.

If you simply drive your target neighborhoods you'll locate
possible abandoned properties. You won't know for sure
it's been abandoned until you investigate the property a
little more closely. A good place to start is with the
next-door neighbor.

When you approach the neighbor, be certain to point out
that you're a real estate investor and that you're possibly
interested in purchasing the property. A little
questioning at this point will tell you whether the
property might be worth your time, as well as your effort,
in tracking down the owner and trying to purchase it.

While there are a rising number of abandoned properties, it
can sometimes be a bit of a challenge locating the owner.
These properties lend themselves very well toward creative
financing techniques because the owners are extremely
distressed from a financial standpoint. In situations
where the owner has simply walked away from the property,
monthly mortgage payments are coming due like clockwork on
the first of every month, and whether they're aware of it
or not, the owner is still on the hook. In addition,
property taxes and insurance premiums still have to be
paid. Long story short, this property is a major headache
for the owner.

If the owners aren't making their payments, eventually the
bank is going to foreclose on the property, and take it
back as an REO. If this happens, a major headache for the
property owner becomes an Excedrin headache for the bank.
Your greatest potential for large profits is before the
bank forecloses, so you want to reach the owner before the
bank does.

Next month in Part II, I'm going to explain to you how to
go about locating the owners of these abandoned properties,
so you can take advantage of this unprecedented opportunity
to explode your net worth.

----------------------------------------------------
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/page2.html

4 Revealing Questions Your Mortgage Broker Should Be Able To Answer!

4 Revealing Questions Your Mortgage Broker Should Be Able To Answer!
Okay, so you've decided to refinance your house and save
some cash. Before you get too carried away, there are four
important questions you need to know the answer to before
committing to any mortgage broker:

· How long have you been in business?
· How will you get paid?
· Do you have good references?
· How do you handle rate locks?

Let's take a closer look at these, shall we?

How long have you been in business?

You want and deserve a hassle-free loan process, and a good
way to guarantee this is to ensure that your mortgage
broker has been around the block a few times. Not only do
you want your loan to go through without a hitch, you
deserve great results and even better service. If your
mortgage broker has been doing refinance loans for awhile,
he has a leg up on the competition. That way, if there are
any surprises you can rest assured that you'll be in good
hands.

How will you get paid?

It's always a great idea to find out how your mortgage
broker is going to get paid. As much as you'd like to
think he wants to help you because of your rosy
disposition, without some cash from somewhere he probably
won't be able to do much for you. Some brokers will
generate cash in one of two ways: fees or yield spread
premiums. Fees are usually paid by you and yield spread
premiums are paid by... you.

Here's how that works: pretend for a second that you
qualify for a loan with a 6% interest rate. Instead, your
lender puts you in a 7 1/2 percent loan. He keeps the
difference, you pay it, everybody's happy - right?

You have good references?

Ask your mortgage broker for the names and telephone
numbers of the last three refinance mortgage loans he's
pushed through. If you can try to get recent names, you
can give them a call to see if they were happy with the
service your broker provided. It's always nice to check
with others your mortgage broker has worked with to ensure
that calls are returned, promises are kept, and that your
broker is as golden as you think he is.

How do you handle rate locks?

Ask your mortgage broker for a loan commitment letter
because it could be golden to you. That letter spells out
exactly what interest rate you're facing with your
refinance home loan. Here's a general example of what you
could expect to find in a commitment letter.

By getting it in writing you eliminate any confusion over
your interest rate right before closing. In addition, once
in awhile a mortgage broker will try to squeeze a few extra
dollars out of a loan by gambling with your rate lock.

If it's not locked, and interest rates drop before closing
he can wait to lock your rate until they go down. However,
if he gambles and loses you would wind up paying the
difference. A loan commitment letter keeps your broker on
the straight and narrow and keeps your refinance loan on
track at the interest rate you're expecting.

----------------------------------------------------
Darrin Roseborsky is a Refinance Specialist with OMAC
Mortgages, seminar speaker and president of
HomeRefinanceCoach.com. Darrin shows people how to MAXIMIZE
their equity PROPERLY and how to choose options that make
the MOST SENSE for their situation! An example of exactly
how this works, is at: http://www.homerefinancecoach.com

ID Theft Basics - How to Protect yourself

ID Theft Basics - How to Protect yourself
Current studies show that ID Theft is at epidemic
proportions. The Federal Trade Commission surveys estimated
that there are close to 9.9 million victims and growing by
2 to 3 million a year.

For individuals that are not victims of identity theft, the
best thing you can do is check your credit report
regularly, focusing on two categories.

* Inquiries from unfamiliar companies. Here we are talking
about someone applying for something in your name in a
state that you don't live in. Remember inquiries are the
result of you applying for credit.
* Unfamiliar Accounts (tradelines). Are there debts or new
credit listed on your credit report that you are not
familiar with?

There are 3 major Bureaus that provide services to monitor
your credit report. These services give e-mails to you
promptly if there are any changes to your report.

What to Do if ID Theft happens to you.

You want to keep a detailed log of events as you start the
dispute process. You do this in case you run into problems
with a creditor. The first step obviously is contact the 3
credit bureaus, local police, creditors, etc...... You keep
detailed conversations logs with any of these entities you
communicate with. Also keeps receipts, bills, or out of
pocket expenses you incur during the process of disputing.
I would also make note of the emotional stress and how it
is affecting your work performance and personal
relationships. In addition your expenses and time could be
tax-deductible in certain circumstance.

Contact Law enforcement
Here is the properties procedure for contacting the
authorities so you can file a formal report. You should
include all fraudulent accounts in the report. As the
Credit Bureaus say they are able to remove disputes,
remember to keep a copy of the report number and contact
info.
Who to contact:
* FTC.gov/bcp/coline/pubs/credit/affidavit.pdf
* Local Police Department
* FTC 800-438-4338 or 800—ID THEFT

Credit Bureaus - Steps to take with the CRAs

* Notify one of the credit bureaus fraud units that you are
victim of Identity Theft. This Bureau will be responsible
for telling the other 2 Bureaus. (Equifax: 800-525-6285;
Experian: 888-397-3742; Trans Union: 800-680-7289)
* Tell Bureaus to flag you credit report with fraud alert
* Get a copy of your credit report with scores
* Once you have read your report, send a dispute letter,
accompanied with police report along with the FTC fraud
affidavit specifying which accounts are fraudulent.
* Subscribe to the Bureaus monitoring services of your
credit report
* Consider signing up for Trusted ID services which will
block your credit report so only you can use it.
* Ask the Bureaus to contact the creditors that fraudulent
activities have taken place.

Debt Collectors- You will be getting calls from debt
collectors more than likely. If they call you:

* Get the debt collectors companies name, address and there
phone number. Let him or her know you are noting the time
and date of the conversation in your log activity book
* Inform the collection agency you are a victim of Identity
Theft
* Provide the FTC uniform fraud affidavit
* Ask for number and name of credit issuer.
* Send the debt collector a letter, stating that you do not
owe this debt and that the account has been close.
* Request in writing that the account is being flagged as
fraudulent, and is being closed. You also should request in
writing that the fraudulent account is being removed from
your credit report.

New accounts opened in your name: the Identity Thief has
opened new accounts in your good name: what to do. The
credit report you pulled should list all creditors that
have accounts in your name with contact numbers.

* Notify each creditor of the identity theft that has taken
place to you. You will be asked to send a fraud affidavit.
(Be sure to put all of this in your log)
* Ask the creditors to send you any application or
fraudulent activity that has happened in your good name.
* Add passwords to all accounts
* If the thief has got a hold of your checking account,
credit cards, get replacements with new numbers. Call and
request these accounts to be closed as well.
* Fill out FTC uniform fraud affidavit.

Your Checking account- If the thief has written checks in
your name here is what you do.

* Call your local police, and file a report
* Call your bank and close the account immediately
* Remember to keep good logs
* Typically your bank will refund you your money, and ask
for a copy of police report filed.

This stuff is serious business; I hope this will help you
resolve issues involving identity theft to you.

----------------------------------------------------
About the Author: Mike Clover is the owner of
http://www.my720fico.com . My720fico.com is one of the most
unique on-line resources for free credit score reports,
Internet identity theft software, secure credit cards, and
a BlOG with a wealth of personal credit information. The
information within this website is written by professionals
that know about credit, and what determines ones credit
worthiness.

How To Safe Guard Yourself Against Financial Trouble

How To Safe Guard Yourself Against Financial Trouble
If you suffer from bad credit, it is most likely that
you've had or you still have unpaid debts in your account.
When was the last time you checked your credit report? Are
you 100% sure that your credit report is accurate and that
there are no unauthorized charges in it?

Your Credit Report and Bad Credit

Why should you take an interest in what your credit report
says about you? Most people do not realize that their low
credit score is actually a result of inaccurate information
on their account. By obtaining a copy of your credit
report, you can examine and file a dispute with the three
big credit bureaus and the creditors themselves. This is a
very important to do BEFORE you apply for any new credit
cards or loans.

What if all the charges in your credit report are correct?
Then examining your report will help you see exactly how
much you owe each of your creditors. You can also review
all the payments you already submitted as well as your
existing balances and unpaid dues. Being aware of these
details will help you create your repayment plan more
effectively.

Working on Your Repayment Plan

If your present repayment terms are too difficult for you,
it's best to talk with your creditors and try to negotiate
with them for a lower interest payment or a settlement
amount. Don't be afraid to explain your present financial
situation so your creditor can see why you're having
difficulty in repaying your debts. Ask for a new repayment
plan that will better suit your current financial capacity.

If you're having a hard time creating a budget, consulting
a legitimate credit counseling agency is advisable. A
government accredited credit counseling organization should
be able to help you create a budget plan and a repayment
plan that works.

Guaranteed Approval Credit Cards and Loans

What about guaranteed approval credit cards and loans?
Should you apply for them? If you're in need of a credit
card or loan now, and can not wait to improve your credit,
then there are still options available for you. A bad
credit credit card can be a tool to help you rebuild your
credit. The key is to find a credit card with a reasonable
interest rate. Find one that reports to the three major
credit bureaus so that your credit report can be updated as
you submit your payments.

Finally, be vigilant in keeping up with your payments ,
avoid charging more than you can afford, and always pay on
time.

----------------------------------------------------
Liz Roberts is a loan consultant with NewHorizon Finance
and has been providing consumers and business owners with
financing since 1989. Join our mailing list for FREE tips
on building and repairing your credit . We also have a list
of recommended bad credit credit cards.
http://www.newhorizon.org/Info/unsecured.htm
Copyright 2007

Things You Need To Know Before The Vat Inspection

Things You Need To Know Before The Vat Inspection
The first step to keeping out of trouble is to understand
the basics of the paperwork required. The second step is to
ensure accurate financial records are maintained and many
types of accounting software and bookkeeping software can
assist by at the very least producing a required audit
trail to support the financial figures entered on the
quarterly vat tax return.

To determine the need for accuracy and compliance it is
worth first summarising the work a vat inspector might
carry out when the business is visited to carry out an
inspection of the business financial accounts.

While each customs and excise inspector might tend to
conduct the audit in their own way typically the totals for
several quarterly tax returns will be compared with the
total sales turnover and total expenditure to indicate if
the returns are likely to be accurate. In addition cash and
bank accounts may be examined to determine if the volume of
payments and receipts also reflects the scale of financial
transactions.

Having put the overall financial position into perspective
the vat inspection will involve selecting several previous
quarters which will be audited in more detail. The number
of quarters and the choice of quarters are likely to be
dependent upon the quality of accounting records being
maintained and the overall view of accuracy.

It is quite normal for the inspector to select the most
recent vat return to audit plus a second quarterly return
submitted in the previous 12 months and potentially a third
quarter from a period in the previous 2 years. Any unusual
figures shown up from the audit overview are more likely to
determine which quarters will be examined in detail.

In examining each quarter the vat inspector will establish
the audit trail and verify the totals making up the
financial figures declared on the value added tax return.
Individual amounts making up the audit totals would then be
checked by individually checking sales and purchase
invoices in addition to most major amounts.

Some items selected for audit during the inspection will be
checked through to the cash and bank accounting records.
Many items of major financial significance and items of a
repetitive nature will also be audited through to final
receipt of money from the debtor receipts and creditor
payments.

Several sales invoices and purchase invoices will be
selected by the inspector for tracing through the debtor
and creditors accounts to ensure that customer or supplier
has also entered the same transaction into their financial
accounts.

This cross checking with third parties is also likely to be
carried out as the inspector is likely to have details of
transactions from third parties which he expects to find
recorded in the business vat accounts being inspected.

Maintaining records of the value added tax is an essential
accounting function required from the accounting or
bookkeeping software employed. Getting the basics right can
help considerably to avoid the minefields that lay in wait
for those businesses that fail to address the subject with
sufficient importance.

A first step should be to ensure sales invoices are issued
for each sale and a copy of that sales invoice is retained
and accurately entered in the financial accounting records.
The design and information contained in the sales invoice
should comply with the value added tax rules.

The details to be shown on a sales invoice are a sequential
number to uniquely identify the invoice and the date issued
which is the tax point, business name and address, customer
name and address, vat registration number, a description of
the goods and quantity supplied, the percentage charged and
the amount of output vat.

The accounting software employed and used to record the
sales invoices should produce an audit trail for both
output tax and input tax on purchase invoices received.

Should errors be discovered after the quarterly return has
been submitted which total less than 2,000 the correction
can be made on the next available quarterly tax return. If
an error exceeding 2,000 pounds is discovered the customs
and excise office must be informed in writing

There are a multitude of errors made in the accounting
records supporting the quarterly vat return. Using a
proprietary brand of bookkeeping or accounting software can
eliminate many of these errors and produce an audit trail
which at the very least gains the respect of the vat
inspector.

The vat inspector will find checking easier and having been
presented with an audit trail has greater confidence the
value added tax liability declared is more likely to be
accurate.

Common areas where errors occur in recording sales vat
output include charging value added tax on sales of
business assets, supplies and gifts to employees at reduced
prices, not accounting for the full sales price when an
item is taken in part exchange, including vat on credit
notes.

Errors reclaiming vat inputs on purchases occur because
businesses claim value added tax when a proper vat receipt
has not been obtained, claiming input tax on entertainment
expenses which is not allowed and also claiming input on
vehicle purchases. Businesses may not claim vat on imported
goods until the vat certificate has been received.

Finally an area which confuses many small business owners
is the correct recording and treatment of under and over
assessments of the tax. These items should be accounted for
as receipts or payments into or out of the value added tax
due account and not entered in the sales and purchase
records.

If these assessments are entered into the sales ledger or
purchase ledgers the items will appear in the figures
produced for the quarterly return which is wrong. It is
wrong because the value of the under or over assessment
will effectively be doubled up.

The quarterly vat return should be signed and dated by the
business owner or a designated responsible official who
verifies that the tax return is correct and is legally
responsible for the accuracy when signing the return.

----------------------------------------------------
Terry Cartwright at DIY Accounting provides Accounting
Software that automates the vat return at
http://www.diyaccounting.co.uk/ for self employed business
at http://www.diyaccounting.co.uk/Selfemployed/vat.htm and
small limited companies.