Commercial Mortgage Types

Commercial Mortgage Types
A commercial mortgage is any loan that is secured by either
a rental (income-producing) property (including apartment
buildings, shopping centers, and office buildings) or by a
business related property (including owner-occupied
buildings and manufacturing facilities).

There are a number of different types of commercial
mortgages:

Permanent loan: The most straightforward commercial
mortgage is the permanent loan - really any long-term first
mortgage. Lenders typically issue permanent loans in the
5- to 10-year range, amortized over 25 years.

Takeout loan: A permanent loan that is used to pay off a
construction loan.

Construction loan: When a developer is constructing a
building, the first type of loan he'll typically look for
is a construction loan, which will cover development costs
until the property is user-ready (at that time the
construction loan is typically paid off with a takeout
loan).

The most typical construction loan today is an uncovered
loan under which the lender does not require a forward
takeout commitment. (It used to be that lenders often
required forward takeout commitments - agreements between
the developer and the lender that the lender will fund the
takeout loan to pay off the construction loan as long as
construction proceeded according to the plan.)

Forward takeout commitments may help a developer sleep
easier at night, but they typically cost 1-2 points, plus
an additional point (at least) if the takeout loan funds.
With so much commercial mortgage money available today, an
uncovered construction loan is usually sufficient.

Bridge loan: A short-term loan, typically in the 6-month to
5-year range (3-year terms are the most common).

Mezzanine loan: A mezzanine loan is the commercial
alternative to a second mortgage (few commercial real
estate lenders offer second mortgages). In contrast to a
second mortgage, a mezzanine loan is secured by stock in
the company that owns the property rather than by the
property itself.

Who sells commercial mortgages?

Commercial mortgages are typically offered by banks (both
small and large), CMBS (commercial mortgage-backed
securities) lenders, life insurance companies, and
hard-money lenders.

A CMBS lender makes a loan according to very specific
guidelines then assemble that loan with others like it into
a large pool and issue securities to investors. CMBS
lenders typically offer attractive interest rates, but also
usually add in lock-out clauses and large pre-payment
penalties.

Life insurance companies typically only look at the most
desirable properties in a given region, and often lend no
more than 60-70% loan-to-value.

Hard-money loans are typically very expensive, but can be
much more flexible than loans made by banks, CMBS lenders,
or life insurance companies. Developers looking for fast
cash or loans on distressed properties - or those
developers turned down by other lenders - can typically
find a loan with hard-money lenders.

----------------------------------------------------
Advisory Capital, Inc.
http://www.advisorycapitalinc.com
Apply for a commercial mortgage online at
http://www.advisorycapitalinc.com/commercial_applications.ht
ml

Low Interest Credit Cards

Low Interest Credit Cards
The credit card is one of the most dynamic products in the
consumer finance market. It is always evolving and now
offers so many variations to fit the wide range of
cardholders' needs. If you are in the market for a credit
card, getting the best credit card rate is one of your top
concerns.

There is no one best rate among credit cards. If there
were, you would not have all this variety from 0% or very
low rates to 18% or higher rates. It really depends on your
spending patterns and lifestyle, and you will have to
compare credit cards to determine which suits you best.

It is very important to pick the card appropriate for your
needs. This will depend on your spending and paying
behaviour: if you prefer to pay off all your balance on
every monthly statement, if you leave a balance on each
statement, if you accumulate a large balance, or if you are
a big spender.

Those who pay off the whole balance You may be the type who
does not like to carry debt. When you receive your monthly
statement, you pay off the balance on the statement in
full. In this case, the interest rate will not be of much
consequence to you, since interest is calculated only on
debt that you carry into subsequent periods. The best
credit card for you would be one that does not charge any
annual fee and has a longer interest-free period.

Be sure you always pay off the balance each time. If you
don't, the high interest rates associated with
no-annual-fee and long interest-free-period credit cards
will kick in.

Those who carry debt beyond the grace period You may pay
only a portion of the amount billed in your monthly
statement and carry debt over to the next cycle. You should
look at low interest credit cards that also have low annual
fees.

If you regularly carry debt on your credit card, each
percentage point of interest will matter a lot. If your
average debt balance is $2000, every 1 per cent difference
in interest rate means $20 saved. A high annual fee can be
equivalent to 1 per cent or more of interest, depending on
your average debt, so you want it as low as possible. There
are many low interest credit cards on offer, so check them
out and be sure to compare credit cards, feature for
feature.

Those with large outstanding balances You may have a
substantial outstanding balance and having difficulty
paying it off. You may get a lot of help from low interest
credit cards specially designed for balance transfers.

These low interest credit cards allow you to transfer
balances to a new card at very low or even zero interest
rate. The low-rate period may last several months, which
gives you a breathing spell to raise funds to pay off the
debt. To really maximise the benefits of these low interest
credit cards, you should work hard to pay off the entire
debt within the low-interest period.

Those who spend a lot and pay off in full You may be among
the lucky ones who make a lot of purchases with their card
and are able to pay off their balance in full every month.
You would be more interested to compare credit cards that
offer rewards programs. The important aspects to examine
are the rewards points given per dollar spent, the annual
fee, and the length of the interest-free period.

These cards tend to have higher annual fees and interest
rates. But since you don't carry debt, the interest is less
significant to you. Check if the rewards scheme will offer
value to you commensurate to the annual fee.

----------------------------------------------------
Richard Greenwood is founder of
http://www.click4credit.com.au - one of Australia's leading
credit card comparison websites

Sell California Property Quickly and Easily - Real Estate Investors May Be a Valuable Option

Sell California Property Quickly and Easily - Real Estate Investors May Be a Valuable Option
California real estate is probably the most valuable asset
anyone could own and is desired over almost any other
state. Over the years, California property values have
soared, and more recently there is an abundance of
properties for sale with values dropping every day. This
opens the door to opportunities for buyers as well as
sellers.

California real estate is being affected by lowering prices
and includes all types of real estate from homes, duplexes,
multifamily, commercial, industrial, office to land. Most
people will own single family homes, but later branch out
into other types of investment properties, often building a
sizeable portfolio of properties. Unfortunately, there may
also come a time when the portfolio is stretched thin and
there is a great need to sell property fast. If repairs or
vacancies are high or tax bills need to be paid on income
properties, for example, an owner may have no choice but to
sell and sell quickly.

Fortunately, there are ways to sell California property
fast. The first is to put it on the market with an agent
that you have thoroughly interviewed by checking out
references, current listings and sales and then hope that
an approved buyer comes along quickly and strikes a deal.
This may be wishful thinking. The second, more reliable
method is to call a real estate investor who has available
cash or credit to purchase a lot of real estate. Usually
they can close a deal within a matter of days, and spare a
seller from having to pay out of pocket broker and escrow
fees.

A property owner may be reluctant to sell California real
estate without the aid of a real estate agent because of
the complications of completing a transaction. This is a
reasonable concern. But what if the buyer were to be a
seasoned professional, able to handle all the details for
the seller, and offered cash or other options that solve
the seller's problem? If the sellers call an investor, that
situation becomes their reality. Investors are very
familiar with all the intricacies and difficulties
associated with selling a home. In summary, while getting
the most money for your property is always the goal, a
seller needs a buyer to make that happen. Selling to an
investor makes the process simple, easy and seamless method
with the investor doing all the paperwork and in return the
burden of ownership is removed and you can go on with your
life, yet there is a cost for this convenience.

For informative articles on mortgages, foreclosures and
selling tips visit www.property-partner.com.

Copyright Property Partners, LLC 2008

----------------------------------------------------
For informative articles on mortgages, foreclosures and
selling tips visit http://www.property-partner.com .

Sacramento New Homes for Sale

Sacramento New Homes for Sale
Sacramento, California is located along the Sacramento
River and is the Capital of California. In 2007, Sacramento
was California's 7th largest city and had a population of
nearly 470,000 people. For years, because of the climate,
economic opportunities and available homes, Sacramento has
been a sought after destination for many families. Below is
information about some Sacramento new home communities.

Westshore by K. Hovnanian Homes - Westshore is located in
Sacramento's Natomas area and consists of a variety of new
home communities offering single family and active
lifestyle homes. At its completion, Westshore will feature
31acres of pares, a 26 acre lake and nature preserve.
Single-family homes in Westshore have as many as 4
bedrooms, 3 bathrooms and start in the low $200s. Active
adult homes in Westshore offer buyers up to 4 bedrooms, 3
bathrooms and start in the mid $200s. To find out more
information about Westshore, or the Sacramento homes for
sale that Westshore offers, visit www.khov.com.

Wickford Square by Richmond American Homes - Wickford
Square is located in Sacramento and offers residents a golf
course, community parks and schools. Homebuyer's can choose
from 6 floor plans, offering 2-4 bedrooms and up to 2.5
baths and 2-car garages. Homes in Wickford Square range
from 1,200 - 2,200 sq. ft and start in the low $200s. For
more information about Wickford Square, visit
www.richmondamerican.com.

Cordillera at Serrano by Pulte Homes - Cordillera at
Serrano is located within the Serrano master planned
community in El Dorado Hills, California. This new home
community offers residents city views and access to a
championship golf course. Homebuyer's can view three model
homes ranging in size from 2,897 - 4,019 sq. ft. These
model homes have 3 or 4 bedrooms and up to 3.5 bathrooms.
The model home floor plans start in mid $500s. For more
information about Cordillera at Serrano, visit
www.pulte.com.

Sacramento, CA has many new home communities and new homes
for sale. The city is home to several national and local
home builders building single-family, condominium, custom
and active adult homes. There are new homes to meet every
budget, need and want. For more information about
Sacramento, home builders or Sacramento new homes visit New
Homes Section.

Information about the new home communities was found on
each home builder's website and is considered reliable.
Please refer to each builder's website or sales office with
questions.

----------------------------------------------------
New Homes Section features information about real estate,
new home builders, new homes and resale homes for sale.
Find your next real estate property or new home by visiting
http://www.newhomessection.com .

Test your credit IQ

Test your credit IQ
This time of the year, everybody is thinking about their
finances. Money is on our minds. So while you're rummaging
through your receipts and reviewing those W2 forms, add a
credit report to your list.

Why get your credit report right now? Making sure your
credit report is accurate can get you lower interest rates,
save you money and help protect you from identity theft.

Wow! A credit report can do all that? Well, yes. It's quite
a powerful financial record. The more you know about your
report, the better off you'll be when getting a
mortgage...buying a car...renting an apartment...even
getting a job.

Put on your thinking cap. Let's test your credit IQ.

True or false: You have 3 separate credit reports, and each
one can contain different information. True. Each of the
big three credit bureaus—TransUnion, Equifax and
Experian—keeps its own record on you and gathers
information independently. That means each report is
unique, and that can mean three different credit scores as
well. In order to get your complete credit history, you
should consider all three credit repots and scores. This
combines all your information in one easy-to-read report.

True or false: You only need to check your credit report
once a year. False. If you truly want to manage and
maintain healthy credit, you should check your report every
month or so. This allows you to ensure everything is
accurate and help keep your name safe and secure. And
ordering your credit reports online makes monitoring your
information a breeze.

True or false: Requesting your own credit report lowers
your credit score. False. A lot of people get this one
wrong. There is a difference between checking your own
credit and having a creditor check your credit. When you
check your own report, it does not harm your credit score

Whenever you apply for new credit, the creditor will
request a copy of your credit report, causing an inquiry to
appear. An inquiry from a credit application can impact
your score, so it's important that you apply for new credit
in moderation.

True or false: Most negative records stay on your credit
report for 7-10 years. True. Bankruptcies, collection
accounts and even late payments will stay on your report
for seven years or more. Positive records can stay on your
credit report longer. And don't be tricked into thinking
that a credit repair agency can remove accurate (or
inaccurate) information from your report.

True or false: Routine check-ups can help your credit
score. True. Making sure your credit report is accurate,
along with doing things like paying your bills on time and
keeping your credit card balances below 35% of their
limits, will help you maintain a healthy credit profile.

So how did you do? Even if you're not a credit whiz yet,
you'll look like a genius when you get lower rates on your
loans. It pays to be smart about your credit.

----------------------------------------------------
TransUnion's TrueCredit.com has helped millions of
consumers manage their own credit health. TrueCredit
provides all the information individuals need to manage
their credit. TrueCredit.com products include online credit
reports, credit and insurance scores, credit monitoring,
debt management tools and identity theft insurance, all
designed to help individuals achieve greater financial
well-being, http://www.truecredit.com/

Managing Stock To See Off The Credit Crunch By Improving Cash Flow

Managing Stock To See Off The Credit Crunch By Improving Cash Flow
The first sign of problems is often a reduction in net
profit while the last post, literally the last post is a
severe cash flow deficiency. Sound accounting procedures
should produce financial control information on stock
levels, debtors and creditors and financial investment to
provide early warning systems of impending cash flow
problems.

Larger businesses have accountants producing financial
information who also review and monitor all major financial
influences within the business. Smaller businesses often do
not have these finance details and financial controls and
put themselves at risk since as the credit crunch tightens
the businesses that are most at risk are those which fail
to manage their liquidity until it is too late.

Major significant areas where businesses produce or
purchase goods for resale are the stock levels. Finished
stock, raw materials, work in progress and consumable stock
all require attention to ensure adequate stock levels are
available to the business and overstock positions are
eliminated.

All stock has to be financed and funded from either the
working capital of the business or external funding. If the
business has no external funding costs then high stock
levels may be advantageous in obtaining better supplier
discounts when purchasing. When the value of stock has to
be financed then it is important the stock levels are
managed to use up the minimum financial resources.

Stock management is not just about reducing the volume but
is about always having just enough for the level of sales
without stock shortages. Businesses employing accountants
set a stock policy while this duty is left to the business
owner in small businesses.

The first step would be to carry out a stock audit through
a physical stocktaking and produce financial statistics of
the sales volume for each item in the stores. Where
appropriate the accounting system adopted should produce
easily accessible stock figures so the situation can be
constantly monitored.

Monitoring stock quantities by including sales and
purchases can also provide indications of abnormal stock
losses through loss and theft. Valuable stock especially
with a potential resale value should be kept separately,
protected and access restricted.

Armed with the stock levels and turnover figures policies
can then be developed to manage the stock investment by
initially eliminating or reducing purchase orders for those
items over stocked and increasing the stock levels of those
items under stocked to maintain maximum sales volume by
eliminating shortages.

In addition other factors affecting stock levels include
purchase order quantities and delivery schedules and
reliability of the supply chain. By ordering less more
frequently and arranging better delivery schedules stock
quantities can be reduced saving valuable cash resources
and improving liquidity without reducing sales.

Commercially, minimum stock levels are not always prudent.
Advantage has to be taken of bargains, volume discounts and
the risks of stock shortages but these decisions should
always be taken based upon the financial advantages of over
stocking outweighing the cost of financing that stock. High
stock values affect cash flow.

Sales policy can also have a strong influence on stock
levels and should be managed with a view not just to
achieving maximum sales but also to minimise the business
financial investment in working capital. Sales can achieve
this by directing policy towards a higher turnover of
goods, selling goods bought at bargain prices faster and
clearing slow moving items.

If goods are bought at a cheap price there is every chance
such items are at higher volumes than normally required and
sales policy can move these items faster to reduce the cash
flow requirement and improve business liquidity.

Every business has slow moving items and products that
become obsolete. Such items are using valuable cash
resources required in a credit crunch and turning such
stock into cash benefits the business and provides
additional funding for more profitable items.

Delivery policy affects stock levels and might be reviewed.
Delivering faster and perhaps outsourcing the delivery
function can get the goods to the clients faster. That
reduces the stock levels and should result in cash being
received faster as the customers can be invoiced earlier
improving cash flow.

Retail businesses often have limited policies of stock
quantities other than filling the shelves while retaining a
back room full of goods which are not available for sale
until displayed. Every stock item in the back room is
costing money while sitting there. That cost can only be
justified in commercial terms if the quantities being held
will be required before the next delivery is due or has
been purchased at an abnormally lower price.

Every different type of business has its own inventory
requirements with many different factors being applicable.
The important message is not what should be done about this
item or that item but the fact that there is an overall
stock policy appropriate to the type of business to enable
the business to function at maximum volume with minimum
financial investment in stock.

Reviewing stock and inventory policy can reduce the cash
flow and working capital requirements of business. The
increased cash flow can then be used to improve the
purchasing policy to take advantage of market conditions
and offers as they arise to increase overall profitability.

A lack of inventory control can result in a fire sale
operation should cash flow and liquidity be so strained
that the financial cash resources of the business run out.
Good stock control can avoid such drastic measures.

----------------------------------------------------
Terry Cartwright is a qualified accountant designing UK
Accounting Software at http://www.diyaccounting.co.uk/
providing complete accounting solutions for small to medium
sized business in the UK written on excel spreadsheets at
http://www.diyaccounting.co.uk/smallbusinessaccounting.htm