Friday, June 29, 2012

The Importance Of Currency Conversion

Currency conversion means converting one country's currency into the currency of another country. Anyone wanting to buy or sell a product or service in a country has to use the national currency prevalent there. When people travel to another country they have to change their country's currency into the currency in use in the destination country. Conversion of the currency is a complex process and the exchange rate of a currency fluctuates continuously.

There are various economic, political and natural factors that can affect the currency exchange rate. The foreign exchange market is the biggest financial market in the world used by investors, even though it carries the highest risk among all the investment options. Without conversion of the currency it would be impossible for the governments and large corporations to do international trade. Many companies participate in currency speculation. They want to profit from the fluctuating rates of different currencies.

The fixed value of a currency allows everyone to figure out the amount of currency needed to buy a product or service. People can also check a currency's relative value to another currency. To keep the exchange rate of its currency stable, the central bank of a country sometimes intervenes to sell or buy particular foreign currencies available to them. This is possible because in any country, the central bank is the largest holder of foreign currencies.

A country may use fixed exchange rate for its currency because of its economic policies or international agreements. There are other countries that allow their currency to float freely in the exchange market. Tourists wanting to visit another country must know the basics of money conversion. Otherwise they will face problems in buying any product or service. If tourists use their credit cards in another country then their transactions may be subject to fees. Over time all these fees add up. The total amount can be quite substantial.

In some countries it is possible to find merchants who charge credit cards in US dollars. This type of system is referred to as dynamic currency conversion. In this situation, buyers do not make payments in the local currency but in the currency of their country where the card was issued. At the same time, such transactions are subject to conversion fees charged by the merchant. This makes it necessary to check all these details with the card issuer before planning the trip to another country.

Mature and economically stable countries use a floating currency conversion system. It is considered more effective and efficient. In such markets, there is automatic correction of the currency value according to the economic conditions and inflation. However, in such a system the exchange rates may occasionally experience wild swings and cause losses to the investor.

Thursday, June 28, 2012

3 Month Payday Loans - Use Funds Now and Repay it Within Three Months

Now having got stuck in financial crisis in the middle of the month is not a matter of concern. People living on limited monthly salary often find it tough to manage unexpected circumstances that crops-up in the middle of the month. These are the times when you have already exhausted you salary. Seeking monetary assistance form friends and family does not seem to be a good idea. Here, you can apply for 3 month payday loans. Fiscal market of the United Kingdom has planned this loan scheme for its residents. So, cover your middle month unanticipated monetary troubles without much discomfort.

Money-lenders offering this loan are user-friendly as well as elementary. With online availability of loan you can search properly to fetch the best deal available. It would hardly take any time to approve your loan application. Cash would be deposited directly into your account. No need to wait in long queues and then for the bank officer to approve your loan application. Traditional mode of applying was time-consuming as well delayed. By the time your loan is sanctioned the need for it is over. However, online mode of application offers ease and convenience that cannot be find anywhere else.

Applying online is safe as well. Lenders will keep your personal details secure an safe. They make use of the latest technology to keep your information secured. Internet is much faster, less time-consuming and easier as compared to conventional mode of application. Those who are running short of money can acquire appropriate monetary aid with no extra formalities involved. No paper-work, no documentation and easy approval are a few aspects that make this loan facility a popular choice amidst the loan seekers.

Poor credit holders can take good advantage of 3 month payday loans. This loan is free from any type credit checking formalities. This has made it possible for those living with blemished tags such as county court judgments, arrears, late payments, individual voluntary arrangements, foreclosures and insolvency to have an access to instant funds. Briefly, these loans are just the perfect pick for all those looking for instant source of money.

Wednesday, June 27, 2012

Choosing the Best Property Management System for Commercial Property Managers

Being a commercial rental property manager is not an easy task. What if you don't have the necessary tools that would be of help in your work? If you're a solopreneur who owns or manages commercial rental property, and are looking to make your life easier, why not look for the right affordable property management software for your business. A property management system that would have all your necessities packed in one. In this article we will help you determine what commercial property management software is best for your needs.

First, you must know your needs. What are you looking for in property management software? What are the functions, abilities or features that you are looking for? Second, do you need a desktop application or a web-based program? Third, is the software user-friendly? Fourth, how affordable is the retail property management software?

The common features of a commercial property management software are:

* Keep track of rent payments for tenants which include utilities and other charges such as late charges. Accept partial and government subsidies.

* An easy-to-use database that tracks all the information about your tenants that you will need.

* Keep track of all your work orders, and scheduled repairs.

* Record important information on all of your rental units.

* Organize your tasks and easily create lists of things to do.

* Keep track of deposits, payments to accounts, and other income sources. Generate registers for your income reporting accounts.

* A way to add misc. charges and record full and partial rent payments and print rent receipts.

* Generate rent receipts, statements, and keep track of payments.

* Keep track of any appliances, furniture, etc. that is part of the rental unit with this component.

* Record all your expense payments and travel deductions. View deposits and debits for any number of expense reporting accounts.

* Track of all your income and tax deductible expenses and generate tax form reports.

Some commercial real estate software will also keep track of schedules, generate form letters to be mailed or emailed, and provide other tools to help you streamline your business. Consider these additional features:

* Send promotional materials or other form letters to all of your guests, vendors, family, friends or any other contacts.

* Create Work Orders for any repairs or maintenance, track vendors, schedules, work completed and amounts paid.

* Display your appointments, deadlines and other important events in Daily, Weekly or Monthly Calendar formats.

* Create To Do Lists with room for notes, deadlines, priorities, etc. with project management software.

The best lease management software also includes tools which allow you to look up where area codes are, calculate time zone differences, and has a universal calculator that adds or subtracts numbers, dates and times, converts length, volume and weight measurements, computes discounts, sales tax, foreign money exchanges and loan payment amounts.

One major thing to consider is, should it be a desktop application or a web-based application? Here are some differences between the two:

* A desktop application is an application that runs without the need of an internet connection. A web-based application, which includes any software you log on to a web site to access, requires a fast, reliable internet connection.

* Desktop software is generally much faster and easier to use than web-based software. If you do not have a very fast internet connection, it could take you several times longer to get the same amount of work done.

* If your web connection goes down, or the company's website were to go down, or the company went out of business, you will no longer have access to your data if using web-based applications. A desktop application, if backed-up regularly, is more secure and reliable than a web-based application.

* With web-based applications you rent the software, paying monthly fees and often get only email support. With desktop applications, you generally pay just once, and technical support is often included.

Would you rather pay less on a monthly basis for web-based software, which will add up to much more over time, or pay one reasonable amount up front and get the features, speed and reliability of a desktop application?

As a solopreneur, I'm sure you would rather find ways to save money and at the same time have the features and capabilities you are looking for in commercial rental management software?

With these things in mind, you can now determine what would be the best commercial property management software for your need. The best building management software in my opinion is Rental Property Tracker Plus. It is a reasonably priced desktop application that is easy to use and is available for most Mac and Windows computers.

Tuesday, June 26, 2012

How to Buy Mortgage Notes

When you think of a mortgage, you probably think of it as a way to finance the purchase or refinance of a home. Mortgage notes, however, can also be an investment option where you may be able to earn a return on your investment. Buying mortgage notes may also be referred to as hard money lending or private mortgages, where personal money is being used to fund the financing of a property. In exchange for buying mortgage notes, you receive monthly principal and interest payments on the amount of the note until the note is paid in full.

Find and contact a mortgage note broker. Mortgage note brokers or private mortgage brokers act as liaisons between investors looking to buy mortgage notes and borrowers. Use the yellow pages of your local phone book to locate and contact a local mortgage broker to see if they have any mortgage notes for sale.

Write up and sign a legal contract and promissory note. When you find a mortgage note or notes you want to buy, have an attorney draw up a legal contract between you as the mortgage note buyer and the borrower or seller of the mortgage note. A real estate attorney can draw up the contract as well as the promissory note for the transaction, which both the borrower and buyer must sign and agree to before it becomes a legally binding agreement between the two parties.

Establish and fund the escrow account. After all of the terms and conditions of the mortgage note purchase are in writing, you as the buyer must establish and fund the escrow account. This is the account where you deposit the money you're loaning to the borrower for the real estate purchase. The account is managed by a third party so that the doling out of the funds from the account is fair and equitable and in accordance with the terms of the written legal agreement.

Receive your returns on your investment. Each month, on a quarterly basis or in accordance with the terms set forth in the written agreement, you receive your checks from the escrow account, which is principal and interest on your mortgage note investment. This occurs until the note comes due and is paid in full.

The rate of return for a typical mortgage note can run anywhere from 12% to 15% for a mortgage note buyer.

The escrow account is also the depository for the monthly payments made on the mortgage by the borrower. When it's time for the mortgage investor to receive his monthly payment, the funds are disbursed from the escrow account as well.

Sunday, June 24, 2012

Bankruptcy Car Loan Lenders May Be Found Through An Auto Broker

An auto broker may be a good source to find bankruptcy car loan lenders. A bankruptcy car loan may be obtained easier through a special finance department at the dealership. Car brokers often have a department with salespeople who specialize in helping those that have been through a bankruptcy.

Those that have recently filed bankruptcy and carry this mark on their credit report are considered high risk borrowers. Not all lenders will work with those who have been through a bankruptcy.

Let's further explore how a car broker may be able to find a lender who will loan you the money for a new vehicle.

If the auto broker has a department specific to special financial requests, they have built up relationships with different lenders that will work with those that have less than perfect credit. This provides an opportunity for the salesperson to find you the best possible terms on your special financing loan. And this can save you money.

As well as finding a bankruptcy car loan lender, the broker may find you the perfect used car for you. An auto broker uses many resources such as auto auctions and online resources as well as trade in vehicles to locate quality used cars.

A quality used car could be described as a one previous owner vehicle with between 25,000 and 35,000 miles on it. Typically these cars will only be one or two years old.

In fact, many times you can have the auto broker search for the specific make and model you are looking for, including the exact color you want. How cool is that? That is called customer service!

And with most auto brokers this is simply the beginning of the customer service they provide. This is because with must auto brokers the salesperson is interested in what you need and want rather than simply making the sale today. They work for you, plain and simple.

Because the representative is not interested in making a sale today they will pay attention to other important factors of true customer service. You most likely will feel welcome and compassion from the person you are working with. There is less of a chance that you will be stuck in an office and ignored as you may find with a traditional car dealership. Again, this is because the broker is working for you with your best interest at heart.

If you are in the market for bankruptcy car loan lenders an auto broker may be a very wise choice for you. If you find a quality auto broker dealership you will receive the service you deserve, the compassion you need to feel confident and a great vehicle at a fair price.

Wednesday, June 20, 2012

Foreclosure Liens

Even if you look to flip the property to another buyer, there can be challenges with that as well. This is especially true if you are attempting to flip a property to an end buyer who is financing the acquisition.
What if there was a way you could make money off foreclosures without buying the property at all?

There is a way that you can make money off foreclosures without ever having to purchase the property. It is known as foreclosure liens and understanding this process can create a substantial monthly income stream for you without ever having to own a piece of real estate.
What is a foreclosure lien?
When a property goes into foreclosure, the lending institution seeks to take possession of the property to recoup as much money as possible. The property is sold at a foreclosure auction and the proceeds of the sale from the auction go to paying off the outstanding mortgage balance against the property.
In addition to the mortgage, there is a potential for judgment liens to be recorded against the property as well. When a homeowner fails to pay a bill of any type, whether it is a credit card bill, medical bill, landscaping bill and so on, the company who the homeowner owes could file a judgment lien against the property.
A judgment lien is a court appointed order that requires any proceeds from the sale of a property to be paid to the lien holder prior to being paid to the actual seller of the property. This technique gives the lien holder an option to potentially make their money back.
When a house goes into foreclosure, there are many owners who simply refuse to take the necessary action to rectify the situation. Many homeowners in foreclosure seem to believe that money will fall out of the heavens at the last minute to pay for their outstanding mortgage balance and save their property from foreclosure.
As a result, even if they are offered options by investors and other real estate professionals, they fail to act upon them. They then eventually lose their home in the foreclosure process because they ignored the problem instead of addressing it.

When a property is successfully sold at a foreclosure auction, the proceeds raised from the sale are used to pay off any outstanding debt associated with the property. Outstanding taxes are paid first, followed by outstanding mortgage balances.
If there is any money left over after paying off the outstanding mortgage balance that money must first go towards paying off judgment lien holders on the property. Then, once all of the judgment lien holders have been paid off, if there is still money left over, that money goes to the homeowner who was foreclosed upon.
As an investor, there is a strategy that you can implement with little to no risk to you that allows you to be able to capitalize on this and position yourself to profit.
Suppose you encounter a property that is in foreclosure. You try to negotiate with the homeowner. However, the homeowner refuses to sell the property. Depending on what the outstanding amounts are on the property, it is possible for you to profit regardless of whether or not the homeowner decides to sell to you. In fact, with this strategy you can profit regardless of whether or not you are able to place a winning bid at a foreclosure auction.
When you encounter a property that is in foreclosure where you cannot get the homeowner to sell to you, the first step that you want to take is look and see what the outstanding balances are against the property.
In order for this strategy to work effectively, the ideal scenario is a scenario in which there is equity in the property. A property with equity gives you the best chance at securing the maximum amount of profit that you can generate from a judgment lien.
For example, suppose you find a property that is worth 0,000 on the market after repairs have been made? The mortgage balance is 0,000. The property requires ,000 in repairs. There is also a ,000 judgment against the property. This is a perfect example of a property that you will probably want to go after.
The total amount of outstanding debt obligations tied to the property is 5,000. That means if the property is repaired and all obligations are paid off, there is ,000 in equity available in the property.
So how do you make money?
What you will want to do in this case is contact the lien holder. Let him or her know that you would be interested in purchasing the lien from them. You should pay no more than 40% of the value of the lien. It is not uncommon to offer and have accepted as low as 5 to 15% of the value of the lien.
So let's say you paid ,000 for the judgment lien or 33% of the value. The great thing is you don't even have to come up with the ,000. You can secure the lien by tying it up with an option, which gives you the option, but not the requirement to buy the lien. There needs to be a dollar amount for an option to make it legal so you can offer for the option.
I recommend that you make your option period good for 120 days. This gives you enough time to find out if the judgment lien will get paid off at the foreclosure sale. If it does, you exercise your right to buy the lien and use the excess profit (because you will make ,000 plus interest) to pay the ,000 sale price you negotiated for the lien.
What happens if the judgment lien does not get paid off? You simply choose not to exercise the option and at most, you have lost a single dollar. That is the power behind using foreclosure liens to make money on foreclosures even if you don't buy the property.

Tuesday, June 19, 2012

The Essence of New York Home Loans and Equity Loans.

As a potential mortgage customer you must know the basic process which comprises of four major stages:

Organizing the required documents: You must have all the documents and their copies ready before applying for mortgage loan. These include copies of computerized salary slips, employment letter issued by your employer stating the position you hold in the company; whether you are on probation or have been made permanent and for how long have you been working with them. You would also be required to furnish your income proof and copy of group certificate and tax returns filed. If you are an entrepreneur then you would be asked for a copy of a past few year's tax returns, copies of lease agreement, and written statement from realtors confirming your income from various invested properties. You will have to disclose a complete checklist of assets which include details of your bank accounts, details on any existing properties. Your detailed credit report is an integral part of the documentation process. Disclose the nature of all outstanding loans and debts. If there is an instance of tax defaults, bankruptcy or arrears in the past, than these facts will have to be revealed.

Borrowing limit: You need to assess and analyze your finances based on the existing conditions. You must try to get as many estimates as you can from the various lending agencies. This can be easily done using online tools on the internet or by inquiring your mortgage broker.

Narrowing down the loan options: Once you figure out your borrowing capabilities, you would be able to narrow down your loan options. After mulling over the choices left, you can consult your broker or the loan officer regarding the most suitable mortgage plan. Every borrower's needs are unique and he is looking to borrow a mortgage which will be in accordance with his particular future financial plans.

The sanctioning of the loan: After your application and related documents are verified, the pre-sanction or the pre-qualification process begins. The property which you want to buy is evaluated by the lenders and the loan amount is finalized. The final acquiescence on the loan is made after the legal papers are prepared and signed by the proper authorities.

In a home equity loan the borrower takes out a loan against his home or property. In such cases the worth or equity of an existing home is used as the collateral. The cash worth or the home equity automatically reduces once it has been used as collateral. Home equity loans are also known as second mortgages. They generally have shorter duration or term than the first mortgages. They are available in two options: closed end and open end home equity loans.

As a mortgage borrower in New York you have to be informed of the choices you have in terms of interest rates and loan terms. If you opt to take out a mortgage with adjustable rate of interest then the regular mortgage repayment amount will differ periodically as dictated by the financial markets. Opting for an adjustable rate mortgage would be sensible for those people who don't want to retain the property for more than 5 years and wish to pay the least rate of interest. If you feel that the interest rates would reduce in the future then adjustable rate mortgage would be an insightful choice.

Home loans in New York are also available as hybrid loans. A hybrid or mixed mortgage concerns a combination of the features of both fixed rate and adjustable rate mortgages. In the initial years the interest rates remain level but are converted later to adjustable or floating rates. Then for the remaining term the hybrid mortgage is adjusted according to changing interest rates. Hybrid mortgages will surely give you the piece of mind as the payment amount remains stable for the first few years and you don't have to worry about the fluctuating interest rates and increasing payments.

If you belong to the bad credit history category then the conventional or the traditional lenders may shy away from approving your mortgage application. But all hope is not lost for bad credit borrowers as there are special mortgage lenders who provide loans to them on special conditions and rates.

Monday, June 18, 2012

Personal Loans With Bad Credit: Enhancing Your Approval Chances

The search for personal loans with bad credit can be a very frustrating one, particularly when approaching traditional lenders, like banks. Often, banks are just not willing to take on the apparent risk of lending to bad credit borrowers without charging high interest rates and adding a series of fees and penalties.

This is the last thing that a borrower with a low credit score needs to deal with, but there are ways around this hurdle. Even at a time when bankruptcy, foreclosures and delayed payments have all become commonplace, lenders are willing to lend. And with the right preparation done, and the right boxes ticked, fast loan approval might even be secured.

But what are the options open to bad credit borrowers, and is there really any way to ensure a set of competitive terms is secured that make a personal loan affordable? The simple answer is: yes.

The Best Options Available

Like so many loan products, there are specific terms and conditions that affect the suitability of a loan to a particular applicant. It might sound fanciful, but everyone has the potential to get personal loans with bad credit ratings hanging over their head. It is simply a matter of convincing the lender that repayments will be received on time.

To achieve this, it is necessary to provide all of the information required on the application form, and satisfy all of the basic criteria. A credit score is not as important an influence in the process, the underlining factor in getting fast loan approval is affordability.

Of course, it is true that personal loans are treated slightly differently to titled loans, like home loans or auto loans. This is down to the fact that the precise purpose of the loan is unknown, making it possible (even if unlikely) that the funds be squandered. An auto loan is used only to purchase a car, with the car serving as security if repayments are not made.

Establishing Affordability

The secret to convincing a lender that a loan is affordable comes down to two separate issues. The first is that the applicant has a large enough income to cover the repayments. For example, there is no point in a person earning just ,000 per month seeking a ,000 personal loan with bad credit. The repayments will clearly be too much.

The second issue is the debt-to-income ratio. This relates to how much income is left over after all existing monthly expenses and debts are paid. Lenders have set a ratio of 40:60, which means no more than 40% of income can be used to repay loans. If the new loan is well within the 40% mark, then fast loan approval may be possible.

Once it is proven that the repayments on a personal loan are affordable, lenders have very little reason to reject the application. So, the secret to securing approval is to make sure the debt-to-income ratio is below 40:60.

Improving the Ratio

So, how can the debt-to-income ratio be kept below the 40% mark? Even if the existing ratio is close to the limit, it is possible to lower it and make room for a new personal loan with bad credit. This is done by clearing some of the existing debts with a series of small payday loans. These loans come with fast loan approval, and might amount to just 0, but this can be used to clear a credit card balance or update loan repayments that had fallen behind.

After a few of these loans, the result is that the total amount of existing debt is lowered, thereby making sufficient room to accommodate a new personal loan and stay within the 40% limit. Once this is done, then the chances of getting your loan approval becomes extremely likely.

Basics of Stock Market in Panama

The initial step to understanding Panama stock broker accounts is to know the basics of how the stock markets work. A stock is the term used to connote the smallest component of ownership in a company. If you own a stock, this signifies you are part owner of that company. This means that you have a right to vote on decisions made by the company and if that company distributes out its profits to the shareholders, you will likely get your fair share too.

When choosing your own stock, the key element to look at from the company profile is of course the earnings of the company. The earnings or most commonly known as the profit of the business is the determinant of how much a stock will cost. But when actually buying one, you must also focus on the value of that stock in the future. One thing to look at is the product of that company. Make sure that the product is still saleable in the future for you to reap out all the benefits from being a part owner of any reputable company. Stock brokers will definitely come into play when you choose your stocks from the market. If you have already chosen a stock that will suit your needs and preferences then go ahead and buy it.

Buying stocks have been basically hands on during the years that have passed but nowadays off shore stock trading accounts can be found in some countries. One such country is Panama, the land dubbed as the Bridge of the World.

Panama has a number of exceptional and private features that make offshore stock brokerage accounts safe and easy to use. Panama offers a stable and neutral form of government that eliminates the danger of losing track of your money because of political upheavals that may arise. This peaceful country also holds a treaty with the USA that allows USA to grant protection to it from any form of invasion or upheaval.

You also do not have to be physically present in the country to get a stock brokerage account in this place. Stock brokerage activities can now be done online. Auctions, purchases and other stock activities can now be made through secure email with privacy policies and anonymous services.

Trading can also be done using a personal account, foundation or a corporate account. Personal accounts must maintain balances of over ,000.00. Corporate accounts are those that use the total assets of corporations to purchase or trade stocks. Panama banking accounts arrange full service for stock brokerage accounts done in the area. Privacy and secrecy are valued virtues of these firms, and you can surely safeguard your earnings through their system.

So if you are considering going into the stock brokerage market and opening up an offshore account to safeguard your money, keep in mind that Panama has a lot to offer for you. Their excellent offshore banking system made leaps into advancing offshore trading of the stock market today.

Friday, June 15, 2012

Cheap fast debt consolidation loan!

How would your financial life be, if you were to make a single payment in place of numerous loans? You don't have to shun away from your creditors' calls avoiding his threatening calls nor do you have to miss out on your loan payments. Cheap fast debt consolidation brings you the well deserved solace and replaces all your multiple monthly bills with single cheap debt consolidation bill. The main objective of fast debt management services such as best consolidation loans or direct debt free advice is to clear of a substantial portion of your debts within a span of 5 years.
A cheap debt consolidation loan fast is a consolidation loan procured at a lower interest rate for the benefit of both a debtor and a creditor. A creditor agrees to a debt
consolidation loan as he is sure of recouping at least a portion of his debts if not the whole amount and on the other hand a debtor gets an opportunity to repay back with lesser EMI.
Fast debt management service includes a debt consolidation loan cheap, direct debt free advice and debt relief services. When do you apply for a fast cheap debt consolidation loan?

-When you are tired of repaying numerous debt payments and want to repay back in a single payment
-Not able to meet the high interest loans
-Lock in at fixed interest rate instead of varying interest rate
-Reduce your monthly budget towards debt repayment
-Pay off existing debt and get debt free with best consolidation loans!
Consider the main objective of cheap debt consolidation loan with a direct debt free advice:
Firstly, such a fast cheap consolidation debt will offer financial succour and comforts those borrowers who are battling with the debt problems and are looking out for ways to free of high interest debt.
Secondly, cheap debt consolidation loan fast is offered at a low rate and is approved quickly. And the lender can retrieve the loan amount from the defaulters and non payers,which would have otherwise been difficult.
Also be aware of the fact that best debt consolidation loan is not a panacea of all your debt problems. It can do away with a substantial amount of debts and if you follow your budget properly, you can clear maximum amount of your debts. One needs to understand the importance of debt consolidation loan before opting for one and choose a cheap fast debt consolidation loan lender carefully who not only offers loan to you but also guides you with a free and sound advice that is offered to you directly.

Motivation Letter For Home Loan

Have you ever applied for a home loan? If yes, then the chances are that you must have been told to write a motivation letter for home loan. Let us know what exactly a motivation letter is and why is it needed...

When applying for a home loan, you will be asked for a brief cover letter to convince the bank that you are creditworthy and you can afford the loan. Writing a motivation letter for home loan can help you make a strong statement on your behalf and can make your application stand out from the rest. The motivation letter should be formal, but at the same time it should be persuasive enough to work in your favor. A brief, to the point motivation letter ensures that your case is evaluated quickly and the bank trusts you with lending its money.

How to Write a Motivation Letter for Home Loan

As this letter will play an important role in determining whether you get the loan or not, allot considerable amount of time to write it. To make a strong case, address the letter to a personal banker or a loan officer who is in-charge of the home loans department. Make sure that you know the name of the officer and spell it correctly. Just below his name, write the title, i.e, the capacity in which he is working in the bank. Explain your strengths and emphasize how important this home loan is for you. Do mention some of the weaknesses you might have and your plan of action to overcome these. Make a small introduction to yourself, like your employment, personal history including any other loans that you might have. Remember that the letter is to be written in a formal style and should not contain slang and any other abbreviations. It should have a cordial greeting and a formal exit. The letter should be written in a simple language and the use of jargon should be avoided.

This was a motivation letter format, let us now take a look at an example of motivation letter for home loan.

Sample Motivation Letter for Home Loan



Dear Loan Officer,

This letter is regarding my home loan request as mentioned by you in our appointment on _________. I have enclosed all the required documents along with this letter.

I am requesting a home loan of 0,000 from your bank as I am thinking of fulfilling a long cherished dream of owning a home. I have carefully taken a look at all the options that I have and have decided that the home loan payment plans offered by you are the most competitive in the market, not to forget the easy and flexible repayment options that your esteemed bank has to offer.

I am currently employed with XYZ Private Limited as an assistant manager and have been working there from the past 10 years. For my work related verification, you can call on the number_____________, or you can write to them at _______________.

I have recently checked my credit rating and the report is good, with a decent credit score. I have also enclosed my salary breakdown which shows that how much can I allot for repayment of the loan amount every month.

I will be really grateful to you if you consider my loan application. In case of any questions or clarifications, you can contact me on ______________. I would be available in case you want to have a meeting with me. Looking forward to hear from you soon.

Yours Sincerely



This was a sample motivation letter for mortgage loan. Many times people rush through the letter and miss on the important points or make it too lengthy or informal. As mentioned before, while writing a motivation letter for home loan you have to be careful with your choice of words. It has to be convincing but should not make the bank feel that everyone else has refused you and you are too desperate to make it this time around. We hope that this article on motivation letter for home loan would have familiarized you with the important part a motivation letter plays while applying for a home loan.

Wednesday, June 13, 2012

Walmart Credit Card - A Personal, Safe and Exclusive Experience

The Walmart Credit Card is a Store Offer and is issued by GE Money and aims to be used "personally" and by consumers with a fair credit history. Though not mandatory, yet a FICO score of 632 would put you in a better position as far as the approval for the Walmart Credit Card is concerned. The card issuer may expect a few discrepancies but based on the FICO score recommendation if you have a recently clean credit record without any negative mark on your report you can sail through the approval process with little difficulty and enormous success. However, there are other issues too, which decide in the application for the Walmart Credit Card being approved.

The approval time for the Walmart Credit Card is relatively lesser than its counterparts. It might give you instant approval decision if your application information is complete, is beyond questions and has no other loophole in it. The system shows your approval status to you shortly after you submit your application online, so gone are the days when you had to wait for days on your application status. After your application is approved you can expect your credit card to arrive anytime between 1 to 2 weeks.

The Walmart Credit Card is not a rewards card although it has no annual fee. There is no introductory APR for the Walmart Credit Card hence the lowest standard APR of 12.37% applies immediately; however APR's may vary among applicants. The lowest standard APR of 12.37% is variable and varies according to the fluctuations in the U.S. prime rates. The program's terms and conditions tell you how to compute your applicable APR.

Since the Walmart Credit Card is unlike any traditional credit card, it accepted only in the relative areas. The Walmart Credit Card is a store or catalog card and is aims at consumers or personal use'. Hence it is accepted at places like Wal-Mart, SAM'S CLUB and With the use of the Walmart Credit Card you can save 3 per gallon at all the participating Wal-Mart and SAM's Club gas stations or you can make in-store payments at any Wal-Mart or SAM'S CLUB register. What's more there are special financing offers with the Walmart Credit Card giving you that extra edge. This card gives you the grace period of 25 days in the least; hence you don't have to pay interest charges during those days as they are inapplicable. You can also choose the due date of your payment, so the ball is always in your court.

With the Walmart Credit Card you have fraud liability, so you can sit back and relax without worrying too much. The Walmart Credit Card understands your love for your family and that is why it provides you with additional cards for you family members and that too without any extra cost. If you thought that you needed another reason for applying for the Walmart Credit Card, here's more coming your way. The Walmart Credit Card not only understands your need for security and privacy but also respects it; thus, your access to your account information is absolutely secure, free from prying eyes and potential hackers.

Tuesday, June 12, 2012

Car Lease Specials: The Jaguar XF

With the new year coming up fast, it seems that everybody is gearing up to check out all sorts of car lease specials; especially with the many rumored super cars that are coming out in 2008. One of these cars is more anticipated than any other and that's none other than the new Jaguar XF. Unlike the Jaguar of old, this one really does resemble the mean looks of an actual big cat. The Jaguar XF goes beyond the traditional standards of the classy Jag we are all used to.

What we know about this jaguar that's due out in March is that while it uses the old S-Type bases and suspension from the XK coupe, what it looks like is entirely different. It takes on a sportier more than luxurious look although it doesn't give up too much as it still looks like a million dollars. It will definitely be a head turner for a much younger market, but this doesn't mean it will alienate the Jaguar's dedicated market as it still retains the class that Jag is known for; this is especially true if you manage to get one of these car lease specials in a dark color, like black.

What you see outside is definitely not true inside the XF. The exterior is a lot ore buff but inside, you may be surprised with the luxury of space that you will enjoy. The seats are not as bulky as you might expect and this offers an impression of more air and space. However, this is a good thing, especially with all the things that this car packs in. Expect wood and aluminum alloy on the inner sides, a lowered dashboard, a rotary gear selector in the center and a starter button that flashes upon entering the car. As a standard, consumers get cruise control, heated seats and satellite navigation! That leaves room for the imagination as far as add-ons are concerned.

Speaking of room, the Jaguar XF has just enough of it. In fact, a six-foot person sitting in the back will actually have a lot of head room left between his or head and the ceiling. Foot room is quite spacious but the 500-liter trunk space is a lot more generous and the back seats also fold for additional space.

Expect the Jaguar XF to "hit the shelves" on March 1 2008. It will come in two whopping 4.2 liter V8 models, one with a supercharger and one without. There will also be a 3.0 liter V6 for the slightly less adventurous and a 2.7 liter V6 turbo diesel for the gas-consumption conscious. This is the definitely the cat to beat as soon as it hits the market and at over ,000, this price range is only rivaled by Germany's BMW 550i M Sport. It all depends in what class you choose to belong to when it comes to shopping for the top car leasing specials.

More car leasing specials information can be found at .

Sunday, June 10, 2012

Earn 750000 tax-free! - A capital gains exemption allowed by CRA

If you sell shares of SMALL CANADIAN CORPORATION, you may be able to take advantage of 750,000 capital gains exemption!

Section 110.6 of the Income Tax Act (ITA) allows 750,000 tax-free capital gains to individuals. This exemption is valid for the gain on sale of shares of small business i.e. "qualified small business corporation share", as defined by ITA S.110.6(1) to be considered as such, the business has to meet several criteria:

" means a share of the capital stock of a corporation that,

(a) at the determination time, is a share of the capital stock of a small business corporation owned by the individual, the individual's spouse or common-law partner or a partnership related to the individual,

(b) throughout the 24 months immediately preceding the determination time, was not owned by anyone other than the individual or a person or partnership related to the individual, and

(c) throughout that part of the 24 months immediately preceding the determination time while it was owned by the individual or a person or partnership related to the individual, was a share of the capital stock of a Canadian-controlled private corporation more than 50% of the fair market value of the assets of which was attributable to

(i) assets used principally in an active business carried on primarily in Canada by the corporation or by a corporation related to it"


Mr. Holder owns 30% of shares of Holding Corp. The shares were acquired two years ago for 500,000. Holding Corp. is a Canadian-controlled private corporation that uses its assets in active business done in Canada. This year Mr. Holder sells his shares to Mr. Rich for 1,150,000. Thereby, Mr. Holder will receive a taxable capital gain from sale of his shares in the amount of 650,000. Upon satisfying all criteria for Capital Gains Deduction, the gain of 650,000 will not be taxable. Mr. Holder will also be able to use the remaining 100,000, left from previously available 750,000 to use in future years.

There are several provisions in the Act that leave CRA some freedom of discretion to prevent abuse of the provision by aggressive tax planning. Sections 110.6(7) and 110.6(8)deal with corporation's cost manipulation issue, the second, however, might present an issue to the honest taxpayer as well, by the way it disqualifies the companies that did not distribute dividends in the amounts comparable with their earnings in the past years.

A petty arises when the business is sold and the buyer leans more towards making asset transfer instead of transferring ownership of the Corporation. The buyers are often advised by their lawyers that buying the assets of the business alone safeguards them from any problems from the corporation's past, such as audits, creditor's or customer's claims. In that case the corporation stays with the owner, and the advantage of the capital gains exemption is foregone.

The way to satisfy both buyer and seller in that case may be that the owner sells the corporation to third party and takes advantage of available 750,000 capital gains exemption, and later the third party sells the assets of the business to the intended buyer. The third party retains the corporation.

As the matter is complicated it is highly desirable to obtain professional advice and business deal planning ahead of time. Here, the authors only aimed to grasp the general idea.

Important notice: The information above may reflect a subjective interpretation by the author(s), who, by no means may accept any responsibility or liability whatsoever for the results of proper or improper use of the above information, whole or in part, it as well is explicitly stated that whatever information provided by authors, may not suit specific purpose of specific reader, and it alone may not be relied upon to produce decision. In each individual case professional advice must be obtained.

Serbia To Receive

Al Dahra Pledges to Invest in Agriculture and Boost Serbian Exports

As reported by the United Arab Emirates news agency,WAM, on 25 January 2013, the Arab country has gone firm on its planned investment in the Balkans. At an official ceremony held at the Ministry of Finance and Industry in Abu Dhabi,Serbia's Finance and Economy Minister, Mladjan Dinkic, and Vice Chairman of Al Dahra Agricultural Company, Khadim Al Darei, signed a preliminary agreement for joint investment in the Southeast-European country's agricultural sector.

The Abu Dhabi-based company's pledge to invest in agriculture marks the beginning of a joint venture which will invest in eight Serbian farming companies. The agreement includes the upgrade of agricultural infrastructure and irrigation systems, as well as the acquisition of new farming technologies and machineries. The plan also involves the development of existing agricultural lands for the cultivation of various crops including corn, barley, wheat, sugar beet, soy beans, forage and citrus fruit over an area of about 14,000 hectares of owned and leased land.

Al Dahra is expected to inject an overall amount of about 200 million (170 million) into Serbia's agricultural sector, boosting the Southeast-European country's exports a year after drought caused an output decline of 17 per cent and damage of up to 1.5 billion (1.2 billion), which combined to push the country's gross domestic product down by an estimated two percent.By moving towards the realisation of its plans to invest in agriculture, Al Dahra also aims to meet Abu Dhabi's vision for long-term food security whereby a share of the
Serbian crops production will be supplied to the UAE market.

Khadim Al Darei confirmed that the newventure will enhance Serbia's position on the international agricultural trading map, while also contributing to the Emirates' vision for food security and sustainability.For his part, Serbia's Dinkic was quoted by WAM as saying:"We look forward to jointly reaping the benefits of these investments".

New Agricultural Company

Along with the announcement of its plans to invest in agriculture, Al Dahra stated that it has further ambitions for partnership with the Serbian government. The Abu Dhabi-based company revealed that it has started working on the establishment of a new company to operate in the Balkan country. Al Dahra Agriculture Serbia, which is set to launch this year, will be 80-per-cent owned by Al Dahra, with the remaining 20 per cent share being held by the Republic of Serbia.

Saturday, June 9, 2012

Car Finance Advice

Car financing has constantly evolved and come up with new and innovative ways to allow people to benefit. The latest in car financing is Novated car leasing, popular in countries like Australia and the UK, Novated car leasing allows an employee to lease a car while the employer agrees to pay the instalments. The employee in return agrees to receive lesser pay till the lease finishes. Novated car leasing allows both the employee and the employer the opportunity to access a wider variety of cars at lower costs.

Novated car leases are basically of two types, the first is a regular Novated car lease, and in this case the employee does not receive any finances for operating costs like petrol or any maintenance expenses. The second type of Novated car leasing is a fully maintained Novated lease, in this case the employer pays for operating and maintenance costs of the vehicle too. Depending on the requirement an employer can offer an employee basic leasing or fully maintained Novated car leasing.

For the employee Novated car leasing is useful as it allows him to access cars at lower rates, especially if the employer has purchased or leased cars in a bulk amount. In addition Novated car leasing allows an employee to apply for tax discounts. In addition to tax savings and lower rates, another advantage is that an employee has a wider selection of cars, since employers that offer Novated leasing usually have a large number of cars at their disposal and have tie ups with various car leasing firms.

However there is a downside to Novated car leasing, if an employee leaves his employer, the onus of the payments is completely on the employee and unless the new employer agrees to continue paying for the Novated car finance, the employee has to manage all the payments.

The employer too benefits from Novated car leasing, the biggest advantage is that an employer can actually operate a fleet of vehicles without having to worry about operating costs and maintenance costs, usually employers prefer paying for a regular Novated leasing, thereby ensuring that there are no transportation issues, and maintenance and operating expenses are maintained by the employee. In fact since the employer is actually paying for the leasing for an employee, the employer can actually maintain vehicles off the records, thereby saving on tax while having an effective transportation system in place.

At the end of the day Novated car leasing is a win-win situation for both the employer and employee, in addition to the employer and employee, finance companies too benefit from Novated car financing, by actually having the employer pay for car leasing, the financing company can offer employees with poor credit history cars on lease, as there is a higher probability of receiving payments on time.

In essence Novated car leasing is a tripartite agreement; where there are three parties involved the financing company, the employee and the employer. In fact it is one of the few tripartite agreements where all three parties benefit in different ways.

Friday, June 8, 2012

Help! My Fsbo Appraisal Came In Too Low!

First off, DON'T PANIC. An appraisal is an opinion of market value given by a licensed appraiser on a particular property at a specific point in time. The key word here is opinion. Appraising is not an exact science otherwise there would be no need for appraisers and all anyone need do is get a value from online services like Zillow.

Even though licensed appraisers all have to adhere to the same set of guidelines approved by the Appraisal Foundation, there are so many variables involved that the end result can only be described as an opinion of value. This does NOT mean that the appraiser's opinion is not a correct valuation; it just means that there can be more than one opinion that is correct. These differing values are supported by the appraiser's choice of considerations, and the weight given to each of them, which affect the house being appraised. The differences in appraised value can be even more marked if one of the appraisers is from outside the area where the property is located as opposed to the value given by a local appraiser.

What to do. If you had an appraisal done when you priced your home for sale, get in touch with that original appraiser and ask them to do an updated appraisal for you. Tell them that the value is coming in lower than the amount they appraised it for and you need documentation to support your price. You will probably have to pay for this, but the cost should be lower if the original appraisal was completed not too long ago. If the re-appraisal supports your sale price, get in touch with the buyer's lender immediately and present your case for this value to be accepted. If the difference in value is considerable, the lender might insist on a third appraisal and/or an appraisal review.

What if you didn't get an appraisal before you priced your house? Well then, you have a couple of options. Obviously, the first is to get your own appraisal done and hope that it comes back at the price you need and, if it does, then proceed as above. If this second appraisal also comes in lower, then it would appear you have overpriced your house to begin with. You can then either lower your price to the appraised value or ask that the buyer to come up with the difference in cash if they still want the house, or you could carry a second for the difference. Most buyers won't do this unless there was a burning desire for them to have that particular home. If you then decide that you still want to sell, you can put the house back on the market at the appraised price.

The other option is to challenge the appraiser's findings. This can be very difficult and time consuming. To do this, you will need a copy of the appraisal, not just the summary. The best thing to challenge is the comparable sales the appraiser used. Remember, these are homes that have sold and closed, not those still on the market. Look at these very carefully and then go visit them to see if they are truly comparable to your house. You need to make sure that the appraiser is comparing apples to apples. If there are comps used that are not similar to yours, maybe in a different tract, different and lower quality builder, a builders value priced model, different school district, in the county instead of the city etc. then you have a strong case for an appraisal review. Rather than just going to the lender and saying that the wrong comps were used, you have to go armed with comps that will support your claim of a higher value. To do this, you will need to go to the County Recorder's office and search for homes that are similar to yours which have recorded as sold within the past six months. The more recent solds are the best and most accurate ones to use. When you look at the appraisal report, look carefully to see what adjustments the appraiser made to the comps to compensate for amenities that you do or don't have in your house. Sometimes you might find incorrect allowances made for a/c, pools, spas, new roof, landscaping etc. These all have value but not the same value as the price you paid for them.

After reviewing everything carefully and you can't find any glaring discrepancies in the report, then the best thing to do is accept the findings and move on. If you sold your house using a real estate agent, then there are things that they can help you with, but that's another topic.

Thursday, June 7, 2012

Use The Expertise Of Real Estate Agents To Purchase Owner Financed Homes

If you are planning to buy a home in Austin Texas, you do not have to go through the trouble of getting an approved bank loan. You can follow some basic criteria to purchase owner financed homes and purchase your dream home. Look for any area in or around Austin. Austin boasts of great scenery, beautiful homes, recreational parks and museums. People who visit Austin enjoy the admirable climate and may decide to settle in one of the homes there.

What is Owner Financing? Look online for a real estate agency that can fill you in on the details of owner financed homes. They will offer these homes on their website by city or area. They offer listings by price, school district and also different types of waterfront homes, pool homes, condos & Townhouses, Gated Communities or Farm & Ranch Properties. If you prefer to live in a county, you can get the real estate agent to shortlist some homes for you and talk to you about what is owner financing to help you avail of this excellent opportunity to buy properties without getting bank approved loans.

You may be planning to buy a home in Austin. Your trained real estate agent will be able to help you close the deal with owner financing. Licensed realtors have extensive knowledge of how this works and will explain all about owner financing. You will have access to real estate market reports that will help when you are planning a home purchase. They will communicate regularly with you online or on the phone and update you on the latest listings that fit your search criteria.

You will have to sit through extensive negotiations but with your real estate agent beside you, you can confidently strike the deal with the seller, who will offer owner financing at the right rate of interest to help you clinch the deal in your favor. They will handle the paper work that is part of the sale process and help set up finance for the investment. It is therefore important to select a dedicated agent when you purchase properties or a home. Once you finalize on the right agent, you can give them a call and get them to give you expert guidance coupled with quality service.

To qualify for owner financing, you should be able to put down 8% to 10% of the purchase price, Make sure you have the documents of proof to show you have income to support monthly payment that includes all insurance and taxes.

If you are the seller, you should be able to list your requirements in many places to ensure that it stands out. Contact the right real estate agent who can offer you full market value by getting the right client and giving you the payoff that you were waiting to receive. Try to list your home on Austin MLS with Owner Financing to sell your home fast. Your real estate agent with sit with you and go over the entire process and help you come up with the best sale deed.

Tuesday, June 5, 2012

What Do Vimax Results Tell? - Vimax Pill Reviews

As you know Vimax is among the most effective male enhancement pills for men to enhance their sexual performance on bed. Vimax results tell that customers gained up to 4 inches in length and 24% in girth, which result in greater self confidence because of better performance. You can buy Vimax pills online via their official website. PillsExpert is the company that developed this product since 2000 and its population has been increasing every day due to the best results and high-end and quality product. The manufacturer of this product claimed that your overall sex drive will improve by taking Vimax pills for 6 months. You will notice the change during the first few weeks but the full effect takes place in sex months.

You can only buy Vimax pills via their official website or by phone. You cannot find the product at stores like Wal-Mark, CVS, etc. If you find the Vimax pills somewhere else, you may end up buying the scam products. There are some male enhancement reviews sites that tell about this product. When you enter your credit card information online, the URL must contains VimaxPills. There are some Vimax scams online but will disappear very soon. If you receive spam e-mails advertising about Vimax male enlargement pills, you know for sure they are fake Vimax pills. Vimax will never advertise their product via such spam e-mails. The company thinks that if the customers like them, they will come back without sending an email.

Vimax results are the increase in the penis size both length and girth, stronger and harder erections as the more blood flow to the penis area, longer lasting in bed, and no more premature ejaculation. It is the solution for men who are quietly suffering about small penis which lead to unsatisfactory performance. In other words, your woman will not attain an orgasm with your too small, soft, or short penis. Your little cannot touch most of the sensitive area of her vaginal, she cannot reach an orgasm. She is not satisfied and as a result, she will be seeing someone else. Thousands of relationships are broken up because of this. So, you need to save your relationship when you still have a chance.

Vimax pills are the best penile enlargement pills that really work. Vimax is all-natural since it is made of 100% herbal ingredients. Each Vimax pill is formulated by the correct blend of herbs to make sure it delivers the maximum results. Studies have shown that many positive testimonials from users who have gained up to 3-4 inches in length and 25% in girth.

It is no doubt that Vimax is the only solution to help you get bigger and stronger erections that will result in better sexual performance and greater self-esteem and self-confidence in bed. It is not only for you but also for your woman. Since its ingredients are all-natural, Vimax side effects are none. With 60 day money back guarantee, you have everything to gain.

Monday, June 4, 2012

Twitter Will Shut You Down And Put You In Twitter Jail

I think that at one time or another, we have all asked our selves "How do I get more sales volume from my downline?"

After some contemplation on that problem, many marketers realize that if they train their recruits in proper knowledge of the products and services it will motivate previously unmotivated members that will result in more sales. A process sometimes called duplication. ie: Duplicate yourself and you will have more sales and more recruits.

Kinda like milking a cow. You have to squeeze hard enough to get the milk out of the cow, and you have to squeeze enough times to make sure you get all the milk.

So you milk a cow the right way, you teach your members to milk a cow the right way, and the cow still only gives the same amount of milk each day.

So back to our question: "How do I get more Milk?"

The answer is easy, do the difficult tasks. Training, teaching, and duplication is the easy part. You are working with people who are already your members so there is no rejection. They joined you and want you to help them succeed, so they are willing to listen to you.

To get more "Milk"--GET MORE COWS!

That's it, get more members, recruit, take that risk of rejection and grow your organization. New recruits bring in new enthusiasm, new excitement, and start a recruitment snowball effect with your downline.

In short, your time spent with your downline in training and duplication is valuable but too much time in that area is not the best way to grow your organization.

To get more milk, get more cows.

This is not to be confused with:


The watermelon syndrome goes like this:

Two guys wanted to make some extra cash so they got this idea. They went down to the local farmers market and bought a truckload of watermelons at each. They found a spot beside the road to set up shop and opened up the tailgate with a sign,


Well guess what, they sold every melon in a very short time so they went back to the farmers market and bought another truckload for each. Back to the roadside stop, out with a bigger sign,


Again they sold out. Well one of the two says "Wait a minute here, we aren't making much money. We have to change something, we are selling all our melons every time and we should be making more money." The 2nd guy agrees. Then a light goes on over both these guys and they realize what they need to do.

They both jump up and yell in unison


OK, OK, I know, I just wanted to give you all something to think about.

Have a great and profitable week!

Do you tweet?

If not you should. Twitter is without a doubt the one of the best social media today for marketing online. Twitter is also brutal about shutting down accounts that abuse the system.

Twitter will allow you to have as many people follow you as you would like, which means you can have your own targeted private market. Of course Twitter has rules about followers, rules about sending messages, and rules about your tweets. If you were unaware of some of these rules, you should review them on Twitter to be sure you are in compliance or you may get your account suspended or even closed.

If you think you would like to use Twitter as a marketing source you should do it, but you should do it the right way. That is to follow all the rules. Seem like a lot of rules to follow? Well it is. But I there is a way you can be sure to follow all the rules and stay in compliance at all times.

What will do this? A Robot, or an App. Robots and Apps are allowed by Twitter so you can make your tweets outside of Twitter itself, they then send the tweet to Twitter through their own server. They are aware of all the rules to be followed and they will tell you in advance if your Tweet is going to violate Twitters rules. That way you make the adjustment before you send the tweet and no harm no foul.

So if you are going to use Twitter to do your promotions, I urge you to make the tweets through a third party that has been approved by Twitter already and stay out of Twitter Jail

So be smart, play by the rules,Tweet Later will keep you on track, and my experience with TweetLater Professional is that it put marketing on AutoPilot. (And kept me out of Jail)

Of course the marketing has to reach a large following so make sure you keep increasing you Followers.
Here are two programs that will help you with making your followers viral:

This one builds followers and also your downlines in 3 other programs at the same time Twitter Secrets

This one is easy just publish one viral tweet! TweeterGetter

Happy Tweeting!

Sunday, June 3, 2012

Time Value Of Money

The time value of money is the most fundamental concept in all of finance. Having a grasp of this concept will make anyone a savvier consumer of financial products. From buying a home to leasing a car to saving for retirement, each of these financial decisions cannot be made effectively without understanding the time value of money and its trade-offs.

Before getting into the time value of money, let's ask the question: What is finance? Finance is the process of moving money to when and where people need it. To illustrate this simple point, let's consider the process of financing a car purchase.

We need a car now, but we don't currently have the ,000 we need to buy it. We have a stable job with adequate income, but simply don't have enough cash in our bank account to buy a car.

Getting Financed

Instead we go to a bank to ask for a loan. The bank evaluates our credit situation: steady job, little to no debt, pays bills on time. The bank decides we are credit worthy and grants us a loan.

We receive the ,000 that we need and are able to buy our car. We then begin to make monthly payments of principal and interest back to the bank until our ,000 is paid off. We have engaged in a financial transaction.

So what happened here is that we were able to move money that we would be earning in the future into the present so that we could use it to pay for a car. But what happened on the other end of the transaction? Who was it who gave us the money?

The bank receives its money from depositors people who have money currently and want to save it for future expenses. In other words, these are people who want to move money from the present into the future.

By taking deposits and issuing car loans (or other types of loans such as mortgages), banks engineer financial transactions that meet the demands of two types of people: those who need money now and those who will need money in the future.

Going to the Movies

But when we pay back our loan, we don't simply repay the ,000 that we borrowed. We have to repay the ,000 plus interest. Why do we have to pay interest and how do you determine how much interest to pay?

Here's where the time value of money comes into play. A dollar today is not worth the same amount of money as a dollar tomorrow. That is the time value of money in a nutshell.

Let's illustrate this with a quick example. Let's say one friend offer's to let you borrow so that you can go with him to the movies tonight, but you will have to pay him back tomorrow because he will need it to make a purchase the next day. Another friend offers to lend you , but he says you don't have to pay him back until the next weekend because he has plenty of cash.

Neither friend says that they're going to charge you any interest. They just need the back. Which friend would you borrow from? One you will need to pay back tomorrow. The other you will need to pay back a week later.

You would obviously choose the friend that will loan you the for a week, because you have plenty of time to earn dollars over the course of the week to pay him back. What this example says is that for every day that we borrow money and don't have to pay it back, there is value. This value is the time value of money.

How to Price Money

The price that people pay for borrowing money is called interest. How much interest is charged to a particular borrower is determined by three major factors: the supply and demand of money, the credit quality of the borrower and the expense of the financial transaction.

If there are a lot of people who need to borrow money (to make purchases or to start businesses) and fewer people who need to save money, then interest rates are going to be higher. In this case, money is in high demand and it will be more expensive to borrow it.

If there are many people looking to save money and fewer people taking out loans to make purchases or grow businesses, then interest rates will be lower. Demand for money is low. The supply and demand of money is a major factor in determining how much interest to charge a borrower.

If a borrower has a long history of repaying loans, paying bills on time and has a steady income, they are more likely to receive a lower interest rate because they are less risky to lend to. On the other hand, if a borrower has defaulted on a loan in the past or has a shorter credit history, they may have a higher interest rate or may not be able to take out a loan at all because they are riskier to lend to.

Finally, if there is a lot of paperwork involved or a lot of analysis that has to be done in order to make a loan, the interest rate may be higher or a bank may decide to charge an origination fee. An origination fee is a fee charged upfront for originating a loan. Proceeds from an origination fee are used to cover the expenses involved with the origination process.

Time-Traveling Money

As you can see, pulling money forward in time comes at a price. If you need money now, then you must be willing to pay interest for it until you can fully repay it. If you are a saver, on the other hand, and need to push money back to a later date in time before you use it, you can expect to earn interest. That is the time value of money.

Friday, June 1, 2012

Vacuum Truck Safety and Oil Field Work!

Among other tasks, one of the most common ones for a vacuum truck takes place in an oil field. This equipment is an indispensable tool for collecting the by-products of oil and gas exploration, such as basic sediment and water. Unlike other liquids, waste that is collected from oil and gas exploration is potentially flammable, so even though the equipment is designed to perform this job, there are necessary precautions that must be implemented in order to avoid this type of serious accident.

Risks Involved

While sediment and water collected from gas and oil production wells may seem like just another mix of waste water, they could contain flammable hydrocarbons that can combust at a high rate and therefore carry a great deal of risk and danger. An analysis conducted by the Chemical Safety and Hazard Investigation Board (CSB) on nine wells showed that eight out of the nine tested had flashpoints below 30 F. According to the Occupational Safety and Health Administration (OSHA), any liquids that have a flashpoint of 100 F are considered to be flammable.

The study regarding the potential risk of loading and unloading the sediments and water waste generated by gas and oil wells began when an accident occurred at an oilfield waste disposal complex on January 13, 2003, in Rosharon, Texas, just outside of Houston. A couple of vacuum trucks were in the process of unloading a mixture of sediment and water that had been collected from oil field production wells. The two trucks were parked 16 feet from each other and the drivers were given instructions to unload and rinse out the vehicles. After this was done, the two drivers proceeded to the driver's shed for their papers to be processed. After a few minutes, a huge explosion occurred inside the waste disposal facility killing three people and causing severe burns to three others. The explosion also caused a great deal of damage to the facility.

An investigation conducted by the CSB and OSHA revealed that the condensation inside the tanks caused the explosion and the source of ignition was the truck engines, which were still running. These findings were backed by eye witnesses of the incident, as well as other evidence that was found at the scene.

What Went Wrong

Many factors contributed to this explosion occurring. The shipper failed to identify the flammability of the waste being disposed. The transportation company did not request the Material Safety Data Sheet (MSDS), which could have provided information about the hazards of the material being transported. The waste collection facility also did not have an effective system of determining the hazards of handling and unloading water and sediments from oil and gas wells.

How to Be Safe

Before handling flammable waste liquids including basic sediment and water, an operator must first undergo training for: hazard communication; flammable and combustible liquids; hazardous waste operations and emergency responses; air contaminants; and the proper classification and manifestation of flammable liquids. Below is a list of other precautions the drivers could have taken to save the lives of those affected by the blast.

* Request MSDS - Operators must always request an MSDS, and refer to it to determine the hazards associated with the material before transporting it.

* Be Aware of Hazards - Operators should be aware of any potential source of ignition, including the engine.

* Don't Mix Liquids - Different types of liquids should not be mixed to avoid any possible reaction.

* Test Atmosphere - Atmospheric testing should be done on-site to determine if any hydrocarbon concentration has reached the flammable range.

* Spark Control - Bonding and grounding should be implemented to eliminate any potential source of sparks.

Every vacuum truck is designed to be a safe means of transporting various types of waste material, including those that are hazardous and flammable such as those found in oil field work. Incidents such as the one mentioned above may still occur when operators are negligent in handling their equipment. The information provided above fill hopefully furnish the necessary knowledge about the hazards of handling oil and gas well waste products and how to avoid them be careful!