Currency Exchange update 5/20/15

Currency EXCHANGE CAN SAVE YOU MONEY

Currencies

The USD is slightly stronger against G-10 currencies with the lone exception being the GBP. Among G-10 currencies, the Danish krone and euro show the greatest decline with both lower by about 0.5%. Among emerging market currencies the South African rand, Argentine peso and Turkish lira are all better by nearly 0.3% while a host of currencies are lower with the Russian ruble and Polish zloty off in excess of 1.0%
5-20-2015

If we can help you with any Foreign Exchange needs, please do not hesitate to contact us.

Please note a minimum per transaction is $US 100,000
Free Consultation (2)

Resources at our Amazon Corner:



Real Estate Lenders nationwide…? (residential & commercial)

Investors or Borrowers have challenging credit issue…?  Our private real estate lender network may provide funds for your project.  If you have a good credit score, our relationship with Wells Fargo bank may provide funds for your project.  Please contact us with your inquiry information.

Real Estate Lender


DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

DAJK GROUP

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What is an alternative investment real estate versus vacation home…?

NET LEASE Big Buyers

Mortgages on vacation properties have harder terms—and more expensive to own than a primary residence.

Is your vacation home an investment property?  Homeowner would need to consider and calculate

  • Cost of the mortgage
  • Insurance
  • Taxes
  • Maintenance & Repair

Lender’s requirement are higher down payment and at least 50 basis point on the second home comparing with your primary home.

In addition, lender would calculate your debt-to-income (“DTI”) against the borrower when they apply for another mortgage.  Under current federal laws, a borrower’s DTI must be 43% or lower to qualify for most mortgages.   This DTI percentage measures the borrower’s overall monthly debt payments relative to income—the lower the debt, the better.

In fact, many lender also calculate the vacancy rates, roughly from 25 to 30% of the year.

Borrower may have to research for lender who are non-traditional lenders for the investment-home market who would willing providing 30-year, fixed-rate mortgage specifically developed for landlords who cannot qualify for loans from traditional lenders.

In general these lenders term at higher interest rate and loan-to-value (“LTV”) is approximately 75% the property’s appraised value.  Please note the minimum credit score is 650.

The rental income covers mortgage payments and still enjoy the property for some personal use.

Here are some consideration for using a vacation home for rental:

Documentation & Paperwork. Borrowers hoping to qualify for an investment loan can expect lenders to ask for proof of ongoing occupancy, such as a copy of the lease and evidence that a security deposit was collected

Higher taxes. Non-primary residences aren’t eligible for homestead exemptions on local property taxes. Mortgage interest on investment homes isn’t deductible for federal income tax purposes.

States and local municipalities require vacation-property owners to collect and pay the same lodging taxes as hotels and charge stiff penalties to nonpayers.

Maintenance & Repair.  Maintenance and insurance costs will have higher rates than homeowner’s policies. Vacation rentals also require cleaning and marketing, which can be handled by a real-estate management company—at an additional cost.

DAJKGROUP3

Alternative, net lease commercial real estate (“NNN CRE”) investment is a long term, secured by real estate, low risk, reasonable yield and fixed income.  You may not need to factor a maintenance and repair if you know how to select a right net lease property.

  1. BIG BUYER of NET LEASE REPORT – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. Typical net lease commercial real estate
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!

Please subscribe for our monthly selection of NNN CRE USA and investment resources.

Also, please sign up for your free consultation if you need further discussion.

Resources at Amazon Corner

  1. The Little Book of Triple Net Lease Investing: Second Edition
  2. The NNN Triple Net Property Book: For Buyers of Single Tenant NNN…
  3. The Little Book of Triple Net Lease Investing
  4. The Due Diligence Process Plan Handbook for Commercial Real Estate…
  5. Real Estate Mail Box Money: The Passive Investors Guide to…
  6. Investing in Retail Properties a Guide to Structuring Partnerships…
  7. How to Succeed in Commercial Real Estate
  8. How To Win In Commercial Real Estate Investing: Find, Evaluate…
  9. What Every Real Estate Investor Needs to Know About Cash Flow…
  10. The A B C’s of SITE SELECTION: How to Pick Winners and Avoid Losers
  11. Commercial Real Estate Investing For Dummies

Publication/Article


Case Study: Sale-Leaseback Technique of Wendy’s and McDonald

Sale-leaseback

Wendy’s Refranchising 640 Stores

Following a pattern we’re seeing in the wider market, Wendy’s this week announced that they were going to sell as many as 640 stores to their franchisees. This on the heels of McDonald’s announcing they would do the same for 3,500 stores as part of their effort to boost the bottom-line.

It’s not exactly clear how many, but certainly some sizeable percentage of these stores may be candidates for sale-leasebacks by the Franchisees. Sale-Leaseback activity in the franchise space has been brisk this year and a flurry of new inventory of this type is exactly what the market is looking for.

With constrained supply and high demand, these franchisees would likely have no problem doing sale-leasebacks to help them finance the store purchases, particularly if the stores in question have a good sales history and the franchisee is substantial enough.

This refranchising trend has been increasing lately largely as a mechanism of the franchisors to trim corporate overhead costs.  [1]

Why and How?

Commercial real estate owner find ways to generate revenue and increase capital. A sale-leaseback technique unlock the equity a company has in its real estate and to convert that equity into cash. This involves selling the institution’s headquarters or branch offices and simultaneously leasing them back long-term.

In addition, many property-owners are recognizing the tax benefits and other advantages of these transactions. Finance adviser/consultant can advise clients on the benefits and help them find sale lease back providers.

In general by sale-leaseback its property, a property-owners can lower its operating costs and use that money to increase its cash flow.

Six benefits of sale-lease back transactions:

1)  Favorable Impact on Earnings.  A sale-leaseback transaction converts noncurrent fixed assets such as real estate into current liquid assets— i.e. cash.  It can generate a gain on the sale when properties’ market or appraised values are more than the depreciated book value. Property-owners often can improve their earnings by reinvesting the cash at a greater rate, retiring high cost debt funding mergers and acquisitions, expanding operations, or taking advantage of special investment opportunities.

2)  Total Facility Control. Simultaneously with the sale, the company leases back the property for an initial lease term — typically 15 years with renewable five-year options. In effect this gives the company control of its real estate for at least 40 years. This would be identical to ownership of the property’s normal useful life.

3)  Low cost of Money.  A sale-leaseback transaction can be a quick economical way to raise capital compared to the process of originating a new stock issue. Issuing new stock may result in an ownership dilution at unfavorable prices or with unwanted investors.

The leaseback is a low-cost technique that avoids these consequences as a rule, a sale-leaseback transaction should provide capital at an effective cost of 100 to 150 basis points less than that of long-term mortgage financing or the long-term conventional debt market. It should have no restricted covenants and no principal repayment after all lease payments.

4)  Recapture all costs. In a typical sale-leaseback transaction, the company would recapture all costs relating to the property’s current market value, including legal fees, surveys, architectural engineering, title, and any other closing costs or property- related fees. This contrasts to conventional long-tern mortgage financing, which is usually restricted to percent of the current market value.

5)  Regulatory Compliance. The cash a business receives from a sale-leaseback transaction can help it improve its primary and total capital-to-assets ratios The profit on a sale-leaseback transaction from depreciated value to current appraised value can increase a company’s net worth.

6)  Off-balance-sheet Finance. By carefully structuring an operating lease, the transaction would not require capitalization under Financial Accounting Standards Board is criteria.  In turn, this allows off-balance-sheet treatment, which in effect would have a more favorable impact on the company’s earnings and improve its financial ratios.

RESOURCES from Amazon Corner

  1. Principles of Real Estate Syndication: With Entertainment and Oil-Gas Syndication Supplements Included
  2. Maverick Real Estate Financing: The Art of Raising Capital and Owning Properties Like Ross, Sanders and Carey
  3. Real Estate Investment
  4. Real Estate Finance

Publication

[1] Wendy’s Refranchising 640 Stores


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Mortgage Rate Update – May 8, 2015

Mortgage 6

Friday May 8, 2015

Mortgage Rate Watch – 5/8

Mortgage Rates Lowest This Week After Jobs Report

Mortgage rates had been under heavy attack for several weeks before finally striking back yesterday. The counterattack could only go so far with today’s important Employment Situation …

MND NewsWire – 5/5

Are There More First-Time Buyers Than we Think?

Given how critical first-time homebuyers are to the housing system the Urban Institute says it is important to accurately measure how present they are in the market. The National Association …

MND NewsWire – 5/7

Mixed Signals in Fannie Housing Survey

Fannie Mae said on Thursday that while the results of its April National Housing Survey showed some improvement in housing sentiment, it was “likely not enough to trigger any breakout …

MND NewsWire – 5/5

Supply/Demand Pushing Home Prices Higher

Nationwide home prices are now within 10 percent of their pre-crash peaks and seven states have surpassed those peaks, some have been establishing new high marks for several months …

  • Banks Agree to Remove Credit Notations on “Zombie” Debt
  • GSEs Continue Financial Winning Streak
  • Vendor Updates; SAFE Act Changes on The Way?
  • Servicer Complaints Ebbing with Delinquencies
  • Final Rules for AMC Supervision Released by Regulators
  • MBS MID-DAY: Bullet Dodged After Weaker NFP, But More Coming?
  • Earlier Intervention Policy is Best for Housing Boom/Bust Cycles
  • 10% of Americans are “Credit Invisible”
  • Rate Increases Take Toll on Refi Apps

Today’s Rates

Best Execution
Rate Change
30 Yr FRM 3.87% -0.08
15 Yr FRM 3.17% -0.05
FHA 30 Year Fixed 3.75% +0.00
Jumbo 30 Year Fixed 3.77% -0.06
5/1 Yr ARM 3.00% -0.02

Average Mortgage Rates

Rate Points Change
FHFA *
15 Yr. Fixed 3.47% 1.11 +0.02
30 Yr. Fixed 4.33% 1.33 -0.01
MBA **
30 Yr. Fixed 3.87% 0.38 +0.01
15 Yr. Fixed 3.16% 0.29 +0.01
30 Yr. Jumbo 3.84% 0.35 +0.03
30 Yr. FHA 3.67% 0.23 -0.02
5/1 ARM 2.82% 0.40 +0.06
Freddie Mac **
30 Yr. Fixed 3.80% 0.60 +0.12
15 Yr. Fixed 3.02% 0.60 +0.08
1 Yr. ARM 2.46% 0.40 -0.03
5/1 Yr. ARM 2.90% 0.40 +0.05

RESOURCES at Amazon Corner

Buying First Home: Tips, First Home Owners Grant & First Mortage Guide, Home Buying Process

Willie and the mortgage, showing how much may be accomplished by a boy

Should I Short Sale My Home?: You do have choices in this Real Estate Market.


TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!

Real Estate Lenders nationwide…? (residential & commercial)

Investors or Borrowers have challenging credit issue…?  Our private real estate lender network may provide funds for your project.  If you have a good credit score, our relationship bank Wells Fargo may provide funds for your project.  Please contact us with your inquiry information.

Real Estate Lender

A Great business consultant must see a white space around the black dot…

Biz Consultant

A business consultant’s job is to consult. Nothing more, nothing less. It’s that simple. There’s no magic formula or secret that makes one consultant more successful than another one.

But what separates a good business consultant from a great business consultant is a passion, drive for excellence and creativity. And–oh yes–a great business consultant should be knowledgeable about the subject he or she is consulting in. That does make a difference.

Creativity is not only helps a Great business consultant can “see” things surrounding of his client’s issue,  but it also provides right guidance and assists with precise and correct solution.  For illustration, place a small black dot on a blank piece of fresh paper represents your client’s issue. It could be involved human resources, account receivable, account payable, expansion funds, equipment, budgeting, personnel, or even community relations. It is your client’s black dot.

Unfortunately majority of good business consultants will see ONLY the black dot.  Their eyes will focus and become fixated on it.  As a great business consultant, you must see all the white space around the black dot.  Fill the white space with all the positive recommendations and solutions. Start to make notes.  Keep thinking and writing.  A great business consultant is constantly searching for right solutions to solve his client’s issue.

Within no time the white space will fade, and the dot will become unnoticeable. Your client’s issue will become workable. Furthermore, involve team members or partner with your client’s black dot. A fresh set of eyes may be all you need to make the impossible, possible. By taking on your client’s issue in pieces and parts, you can develop strategies to chip away at it. In the end, the seemingly insurmountable black dot no longer exists―you have made progress. As a great business consultant you have found ways to cope with and improve your client’s situation.

biz consultant 8

Top 10 Consulting Businesses Thriving Today

Although you can be a consultant in just about any field these days, the current top 10 consulting businesses include:

  1. Accounting:Accounting is something that every business needs, no matter how large or small. Accounting consultants can help a business with all of its financial needs.
  2. Advertising:This type of consultant is normally hired by a business to develop a good strategic advertising campaign.
  3. Auditing:From consultants who audit utility bills for small businesses to consultants who handle major work for telecommunications firms, auditing consultants are enjoying the fruits of their labor.
  4. Business:Know how to help a business turn a profit? If you have a good business sense, then you’ll do well as a business consultant. After computer consulting, people in this field are the next most sought after.
  5. Business writing:Everyone knows that most businesspeople have trouble when it comes to writing a report–or even a simple memo. Enter the business writing consultant, and everyone is happy!
  6. Career counseling:With more and more people finding themselves victims of a corporate downsizing, career counselors will always be in demand. Career counselors guide their clients into a profession or job that will help them be both happy and productive as an employee.
  7. Communications:Communications consultants specialize in helping employees in both large and small businesses better communicate with each other, which ultimately makes the business more efficient and operate smoothly.
  8. Computer consulting:From software to hardware, and everything in between, if you know computers, your biggest problem will be not having enough hours in the day to meet your clients’ demands!
  9. Editorial services:From producing newsletters to corporate annual reports, consultants who are experts in the editorial field will always be appreciated.
  10. Executive search/headhunter firms:While this is not for everyone, there are people who enjoy finding talent for employers.

You decide which type of business consultant you want to be – I choose to be a GREAT one.

Resources

Amazon Corner’s Books

Publications

  • Consultants News
  • Business Consultants Directory, American Business Directories Inc., 5711 S. 86th Cir., Omaha, NE 68127

Growing – Evolving – Pushing Forward

Currency Exchange update 5/6/15

Managing Your Money_Image 4

Currencies
 
The USD is down sharply against both the major and emerging market currencies. There is a very strong correlation between the direction of German 10-year interest rates and euro over the past weeks; European currencies are all higher led by Norway which has been helped by the surging oil prices. Emerging market currencies are higher also helped by stronger commodity prices and somewhat better global equities. Colombia is the top performer today up by 1.38% with only India slightly weaker on the session.
5-6-2015

If we can help you with any Foreign Exchange needs, please do not hesitate to contact us.

Please note a minimum per transaction is $US 100,000
Currency EXCHANGE CAN SAVE YOU MONEY

Our Payroll Service is bonded $US 100 million and registered with Internal Revenue Service.  If we can help you with any Payroll needs, please do not hesitate to contact us.

Payroll Service

Our net lease commercial real estate investment is also available for investors who are seeking for an alternative investment secured by real estate, low risk, reasonable yield and provide fixed monthly income.


Real Estate Lenders nationwide…? (residential & commercial)

Investors or Borrowers have challenging credit issue…?  Our private real estate lender network may provide funds for your project.  If you have a good credit score, our relationship with Wells Fargo bank may provide funds for your project.  Please contact us with your inquiry information.

Real Estate Lender


DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Updates Products_Services_AmazaonCorner

Financial Planning is like garlic to a vampire

DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Other books are recommended here

You can browse through our Amazon Corner for any other interests.  Taking advantage of addition 10% OFF for any first time purchase.

Building a Finance Plan Geared to Growth

 BuildingFinancePlan 30pcOFF

I would like to share with you our book reviewer from Ms. P. Fisher, “Garlic to a vampire“.

I recently read Daniel Nguyen’s Building a Finance Plan Geared to Growth, and have decided to keep this as my small business guidebook to finance management.  I am not an expert, hardly even a novice, when it comes to managing my business.  As a “creative” type, financial planning is like garlic to a vampire.  And yet, financial planning is essential to running a successful business.  I believe that part of my resistance comes from lack of understanding the definitions and how to do things such as create financial statements like profit and loss, cash flow, etc.  When we don’t understand how something works it becomes twice the job and, in my case, gets put on the bottom of the “To Do” pile.  What I really like about this guidebook on how to build a financial plan is that Mr. Nguyen explains what all of these terms mean. He gives us not just a textbook definition, but also shows HOW they work in relation to the overall picture of getting a small business loan, for example. He then shows a sample of what that financial statement should look like.  THIS I can understand!  He also tells the reader what to ask for –and what NOT to ask for.  There is information on establishing credit well in advance of going for a loan, things that I can do now to prepare for my possible or projected business needs in the future. He includes guideposts of ways to evaluate the progress and effectiveness of my current business needs, and then how to assess my possible future needs. Then, for when I am ready to go for a loan, I like the True-False test that he includes in the text.  This test allows me, as the business owner, to self-score how prepared I am to go meet with the banker.  This book is a wealth of good advice, resources and tools that I can use in understanding and applying good financial practices in my business.

I feel that if I follow the outline of this book that I could meet with a bank lender and not appear to be an idiot.  Mr. Nguyen has thought of not only the standard things that I will need to bring and think about beforehand, but also other possibilities that a lender might want to know.  For example, he writes that I, as a business owner, should have not one, but two possible repayment plans, to reassure the lender that I am a good risk. This is good, easy-to-understand information- he gets a score of “10” from me on a practical help scale.

Growing – Evolving and Pushing Forward!


Other related topics:

Manage Your Money – Free ebook

5 IRS Categories’ Audit Risk for Small Businesses

Always protect your investment against risks

4 fundamental Ways Really Increase Your Revenue and Asset in Business

Three recommendations improving your communication with business person

Top 6 Terms You Should Know Before Investing in net lease commercial real estate


 

Business consultant’s book at Amazon Corner

Amazon Corner’s Books