Financing a Large Office Complex – Going To The Bank

In the first two articles of this series (Financing a Large Office Complex — Making The Offer and Financing a Large Office Complex — Structuring The Deal), we discussed the numbers you need to make your offer and how to get the seller to partner with you to obtain financing. Now we get set to take the deal to the bank for funding.

The next step for the two of you (you and the your seller/partner) is to go to the bank and sign off on the deal. Even though you have an LLC, you should sign personally because the bank already has the property as collateral and they are more interested in the cash flow. That’s two of the C’s — all that’s missing is the credit, but this property doesn’t have any, so what they want is the credit of the people who own it.

Even if you have a FICO of 500 they aren’t going to refuse this deal because you have a partner with $3,500,000 of equity in the deal, who is going to sign personally.

That is one less obstacle, because the bank is going to view this as a viable deal. Your partner has real equity in the property, so they can use that for his down payment and they don’t care where the money comes from-they don’t even mind that it comes out of the equity of this property, because it conforms to the laws of their auditors.

When you are working on financing a large office complex, getting the seller to be your partner is the best form of financing there is. The seller has a substantial amount of money, has had this business for some time, and has some real motivation to execute this deal. Therefore, he is a prime candidate for this type of arrangement.

The “You and Me LLC” will buy the property for $6 million. Then, the owner leaves and takes out a big chunk of cash, meaning $3.5 million, of which he contributes half to the You and Me LLC. Then, he takes $1,700,000 out of the deal in cash, but you still own half the property.

Your partner now has a safe, profitable investment with which he feels very comfortable, it’s a built-in reinvestment plan. One of his biggest benefits is tax-wise, he now has half the capital gains on which to pay taxes, had he sold the property without reinvesting.

If he took $3.5 million out of this property, he would have to invest that somehow. When people sell something, they may be very pleased that they took all of that money out. However, if it hadn’t occurred to them up to that point, they have to begin to worry about reinvesting issues. This approach gives this owner a chance to reinvest the money in his own property, one that he knows quite well.

The new deal has the Him and Me LLC paying $6 million for the property. You must give him $1,700,000 and pay off the $2.5 million mortgage, so you need $4.2 million to complete the transaction.

The $4.2 million you need to borrow is 70% of the total property value. With this figure in mind and your contract in your hand, you and the owner go to the bank together. Hand them your contract showing that the Him and Me Corporation just bought this building for $6 million. You have $1.7 million for the down payment. Therefore, all you need is a 70% loan to value, since the building carries itself.

If you found this article helpful, be sure to read the rest of the series Financing a Large Office Complex — Making The Offer and Financing a Large Office Complex — Structuring The Deal.

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Customer Finance Programs Key to Increasing Sales

While studies show that technology spending is once again on the rise, there’s a reason you haven’t heard a collective sigh of relief from the software industry. While many budgets are once again allowing for the purchase of enterprise software, hardware and peripherals, there’s no question that today’s purchasers are smarter, savvier and more selective than ever.

Even though the purse strings have loosened, competition is at an all-time high. It’s no longer enough to provide a software solution that meets the potential customer’s needs, or even to provide it at the best price. Today, smart vendors are constantly looking for ways to stay one step ahead of the competition.

While increasing sales is always part of a competitive business strategy, software development companies often overlook a simple method of accomplishing this objective – making it easier for customers to buy.

One option increasing in popularity among software vendors is to establish a customized finance program that provides no-hassle financing solutions for your prospective clients. In addition to “one-stop shopping,” your customers can reap the other benefits of financing that make it easier for them to commit to technology purchases, including:

100 percent financing — Many finance companies offer 100 percent financing for the cost of software and maintenance contracts, which requires no down payment. Because customers don’t have to come up with a down payment, they can make a purchase immediately, rather than hold up the sale with a “wait and see” mentality that often accompanies a dip into cash reserves. It also allows your customers to invest more capital in revenue-generating activities.

Improved cash flow management – With software financing, your customers can conserve capital for reinvesting in their business and improve budgeting accuracy through fixed monthly payments. Financing also makes it easy for customers to access multiple-year budgets by paying for the benefit of your software over its useful life.

Flexible payment structures – Customers can optimize project budgets by taking advantage of the flexible payment structures available through financing to maximize the return on their investment. For example, with software financing, customers can ramp up payments to match the revenue generation of a new technology project that is utilizing the software being financed.

While financing provides a clear advantage for the buyer, when a program is well planned, the list of advantages for software developers, distributors and resellers can be even more beneficial.

Improved Customer Relations

As noted above, financing packages add value for the customer by enhancing their buying power, offering greater flexibility and providing convenience. It also increases their satisfaction through the ability to leverage their budget to acquire the total technology solution – which could include software, hardware, service, support, integration and training – rather than only the parts and pieces they could afford through an outright purchase.

Shorter Sales Cycles

On the sales side, any customer who expresses some interest in a product seems like a good lead. However, there are many times when the question of how to pay for the new software prevents the sale from happening. Time lost on dead-end deals can be eliminated when financing is part of the sale, as the ability to pay is immediately considered in the equation. In addition, many finance companies now offer fast, easy credit and documentation processes, so you can complete a sale quickly and avoid costly processing delays.

Another benefit is that as software needs are being discussed in the sales process, the finance specialist can work with the chief financial officer or accountant to determine which financing option and payment plan best suits business needs and cash flow.

Direct customer financing can also save software vendors millions of dollars each year by reducing the number of days a sale is outstanding. Consider a company with quarterly cash sales of $50 million. On average, it can take 45 days to collect payment. Assuming a borrowing rate of 6 percent, the 45-day lag in payment results in a carrying cost of $371,204. If the same numbers are run with a leasing finance program that generates payment within 2 days, the carrying cost drops $82,253, saving the company more than $288,951 in one business quarter.

The Big Picture

Overall, equipment financing programs can:

Generate larger, more profitable sales faster;

Increase account control;

Improve sales efficiency and productivity;

Lower days-sales-outstanding;

Improve cash flow;

Differentiate your company from its competition; and

Provide complete solutions for your customers.

Taking the Next Step

After identifying an interest in offering flexible financing as part of the sales process, the next step is to develop a finance program. By partnering with an experienced leasing company to develop a finance program for your customers, you can transfer all of the uncertainties of extending terms to your customer to the finance company.

Partnering with an experienced finance company also means you can concentrate on what your company does best – developing software – while letting a finance expert handle the intricacies of a finance program. Put simply, by working with a third party, your company will receive all of the benefits with none of the risk.

Whether you choose to refer your clients directly to your financing program partner or to work with a third-party finance partner to develop an in-house program, it is essential to choose an experienced equipment finance partner. During the sales process, the finance expert will be working closely with your customers, and it’s important that his or her actions and service levels reflect your company’s ability to meet your customers’ expectations. When searching for a finance partner, look for a company that:

Is flexible and willing to work with your management team to develop a program that will meet your financial objectives;

Is experienced in the IT and software finance world, since the sales process, client-decision criteria, and revenue recognition issues are different than that of capital asset sellers;

Provides marketing support and materials to help you promote your financing program

Is willing and able to provide your sales team with materials and training to ensure sales team members are comfortable and easily able to raise financing as an option with their clients; and Is a financially stable, long-term business partner.

Choosing the Correct Partner for Leasing and Financing

One of the best ways to limit your company’s overhead, particularly when you’re in the early phases of development for your business, is to lease equipment that you will need to conduct all of your business operations. If you have a bit more cash to work with and want to buy equipment to save money in the long run, financing could also be an option.

But when you’re looking to find a partner for leasing or financing, how can you be sure that you’re working with an organization that will be reliable in providing you with the financial assistance you need?

Know exactly what your needs are

Before you even begin to look around for the right leasing or financing partner, you need to know exactly why you are looking for help in the first place. What are the exact services you need? How much cash flow do you have moving in and out of your business’s accounts? Are you registered as a business yet? The answers to all of these questions could have an impact on your decision.

Even if you know that you’re just getting started out and believe that all you need in terms of your finances is a checking account and one or two pieces of equipment, you need to consider the growth potential of your business in the coming years. Will you be expanding so much that you’ll need a loan? Does your equipment need to be regularly upgraded?

Take the time to figure out what your needs are as a business before approaching any leasing or financing partner, because that will help you to find the most effective partnership.

Analyzing potential partners

After you have determined what your needs are as a company, you can start to more closely analyze potential leasing and financing partners.

When choosing the right partner for your company, you should first look to make sure that it has a history of excellence in providing services for your company’s industry and that those services fit your business’s needs. As you would with any other potential business partner, do some research into the company’s reputation, including its track record of success and any reviews that are available from previous clients.

Customer service should also be an extremely important factor in your decision. Your business’s needs are important, and anyone that you are in contact with at a potential leasing or financing partner should be attentive to them. They should be extremely responsive and willing to have an in-depth conversation with you about your company’s goals and what the best leasing or financing strategies are to fulfill them will saving you money and hassle. Knowledgeable sales representatives can be a great help in clarifying your options.

Make sure that you’re taking note of any potential red flags, as well. For example, you should never be expected to do business without a contract, and you should never have to pay any fees up front. If your potential partner has terms that seem unreasonable, then you shouldn’t have to feel as though you’re locked in to using their services. You should be absolutely comfortable with the decisions that you make.

Using Equipment Leasing Company

Pick a leasing company that will understand your needs for current and future needs. The goal as a customer is to find a company that will satisfy your financing / leasing needs for the next 12 to 18 months. Creating that budget with a equipment leasing company will help your business to grow.

The 4 Types of Real Estate Investor Financing

Throughout my real estate investing career, I’ve spent many dozens of hours speaking with lenders and potential financiers of my deals. With all the different types of loans and equity financing products available to investors these days, it’s important to have a good understanding of the benefits and the drawbacks of each, so you can choose the most appropriate financing option for your particular need(s).

Of course, given today’s credit situation, options are not only more limited than they were a couple years ago, but the definition of a “good deal” from a lender has changed as well. When I first started looking at financing for single family houses, I passed on a couple potential options that in hindsight were pretty good given today’s tight credit market; so it’s important to not only understand the types of financing that’s out there, but also which types are most prevalent and most easy to come by.

The point of this article is to define the four most common types of financing available to real estate investors; while there are, of course, more than four ways of financing real estate investments, most are a derivative — or combination — of the four we will discuss here.

1. Traditional Financing

This type of loan is generally done through a mortgage broker or bank, and the lender may be a large banking institution or a quasi-government institution (Freddie Mac, Fannie Mae, etc). The requirements to qualify for a loan are based strictly on the borrower’s current financial situation — credit score, income, assets, and debt. If you don’t have good credit, reasonable income, and a low debt-to-income ratio (i.e., you earn a lot compared to your monthly obligations), you likely won’t qualify for traditional financing.

Benefits: The benefits of traditional financing are low-interest rates (generally), low loan costs (or points), and long loan durations (generally at least 30 years). If you can qualify for traditional financing, it’s a great choice.

Drawbacks: There are a few drawbacks to traditional financing for investors, some major:

The biggest drawback to tradition financing is what I stated above — it’s difficult to qualify these days. Just a year or two ago, you could have qualified under a “sub-prime” variation of traditional lending, where income and credit were less of an issue; but given the sub-prime meltdown (many of these borrowers defaulting on their loans), these sub-prime options have gone away. So, unless you have good credit, income, and small debt, you’re better off not even bothering with trying to get traditional financing these days.
Traditional lenders generally require that at least 20% be put down as a down payment. While this isn’t always true, investor loans with less than 20% down can be tough to find via traditional lending these days.
As an investor, it can be difficult to deal with traditional lenders who don’t necessarily understand your business. For example, a house I closed on last week with traditional financing almost fell-through because the lender wouldn’t provide the funds until the hot water heater in the investment property was working. As an investor, it’s common that I’ll buy houses with broken hot water heaters (among other things), and I can’t generally expect the seller to fix this for me, especially when my seller’s are usually banks. In this case, I had to fix the hot water heater before I even owned the house, which is not something I want to do on a regular basis.
Traditional lenders take their time when it comes to appraisals and pushing loans through their process. It’s best to allow for at least 21 days between contract acceptance and close. As an investor, you often want to incent the seller to accept your offer by offering to close quickly; with traditional lending, that can often be impossible.
If the lender will be financing through Freddie Mac or Fannie Mae (and most will), there will be a limit to the number of loans you can have at one time. Currently, that limit is either 4 or 10 loans (depending on whether it’s Freddie or Fannie), so if you plan to be an active investor going after more than 5 or 10 properties simultaneously, you’ll run into this problem with traditional lending at some point.
There are no traditional loans that will cover the cost of rehab in the loan. If you plan to buy a $100K property and spend $30K in rehab costs, that $30K will have to come out of your pocket; the lender won’t put that money into the loan.
2. Portfolio/Investor Lending
Some smaller banks will lend their own money (as opposed to getting the money from Freddie, Fannie, or some other large institution). These banks generally have the ability to make their own lending criteria, and don’t necessarily have to go just on the borrower’s financial situation. For example, a couple of the portfolio lenders I’ve spoken with will use a combination of the borrower’s financial situation and the actual investment being pursued.

Because some portfolio lenders (also called “investment lenders”) have the expertise to actually evaluate investment deals, if they are confident that the investment is solid, they will be a bit less concerned about the borrower defaulting on the loan, because they have already verified that the property value will cover the balance of the loan. That said, portfolio lenders aren’t in the business of investing in real estate, so they aren’t hoping for the borrower to default; given that, they do care that the borrower has at least decent credit, good income and/or cash reserves. While I haven’t been able to qualify for traditional financing on my own due to my lack of income, portfolio lenders tend to be very excited about working with me because of my good credit and cash reserves.

Benefits: As mentioned, the major benefit of portfolio lending is that (sometimes) the financial requirements on the borrower can be relaxed a bit, allowing borrowers with less than stellar credit or low income to qualify for loans. Here are some other benefits:

Some portfolio lenders will offer “rehab loans” that will roll the rehab costs into the loan, essentially allowing the investor to cover the entire cost of the rehab through the loan (with a down-payment based on the full amount).
Portfolio loans often require less than 20% down payment, and 90% LTV is not uncommon.
Portfolio lenders will verify that the investment the borrower wants to make is a sound one. This provides an extra layer of checks and balances to the investor about whether the deal they are pursuing is a good one. For new investors, this can be a very good thing!
Portfolio lenders are often used to dealing with investors, and can many times close loans in 7-10 days, especially with investors who they are familiar with and trust.
Drawbacks: Of course, there are drawbacks to portfolio loans as well:
Some portfolio loans are short-term — even as low as 6-12 months. If you get short-term financing, you need to either be confident that you can turn around and sell the property in that amount of time, or you need to be confident that you can refinance to get out of the loan prior to its expiration.
Portfolio loans generally have higher interest rates and “points” (loan costs) associated with them. It’s not uncommon for portfolio loans to run from 9-14% interest and 2-5% of the total loan in up-front fees (2-5 points).
Portfolio lenders may seriously scrutinize your deals, and if you are trying to make a deal where the value is obvious to you but not your lender, you may find yourself in a situation where they won’t give you the money.
Because portfolio lenders often care about the deal as much as the borrower, they often want to see that the borrower has real estate experience. If you go to a lender with no experience, you might find yourself paying higher rates, more points, or having to provide additional personal guarantees. That said, once you prove yourself to the lender by selling a couple houses and repaying a couple loans, things will get a lot easier.
3. Hard Money
Hard money is so-called because the loan is provided more against the hard asset (in this case Real Estate) than it is against the borrower. Hard money lenders are often wealthy business people (either investors themselves, or professionals such as doctors and lawyers who are looking for a good return on their saved cash).

Hard money lenders often don’t care about the financial situation of the borrower, as long as they are confident that the loan is being used to finance a great deal. If the deal is great — and the borrower has the experience to execute — hard money lenders will often lend to those with poor credit, no income, and even high debt. That said, the worse the financial situation of the borrower, the better the deal needs to be.

Benefits: The obvious benefit of hard money is that even if you have a very poor financial situation, you may be able to a loan. Again, the loan is more against the deal than it is against the deal-maker. And, hard money lenders can often make quick lending decisions, providing turn-around times of just a couple days on loans when necessary. Also, hard money lenders — because they are lending their own money — have the option to finance up to 100% of the deal, if they think it makes sense.

Drawbacks: As you can imagine, hard money isn’t always the magic bullet for investors with bad finances. Because hard money is often a last resort for borrowers who can’t qualify for other types of loans, hard money lenders will often impose very high costs on their loans. Interest rates upwards of 15% are not uncommon, and the upfront fees can often total 7-10% of the entire loan amount (7-10 points). This makes hard money very expensive, and unless the deal is fantastic, hard money can easily eat much of your profit before the deal is even made.

4. Equity Investments

Equity Investment is just a fancy name for “partner.” An equity investor will lend you money in return for some fixed percentage of the investment and profit. A common scenario is that an equity investor will front all the money for a deal, but do none of the work. The borrower will do 100% of the work, and then at the end, the lender and the borrower will split the profit 50/50. Sometimes the equity investor will be involved in the actual deal, and oftentimes the split isn’t 50/50, but the gist of the equity investment is the same — a partner injects money to get a portion of the profits.

Benefits: The biggest benefit to an equity partner is that there are no “requirements” that the borrower needs to fulfill to get the loan. If the partner chooses to invest and take (generally) equal or greater risk than the borrower, they can do so. Oftentimes, the equity investor is a friend or family member, and the deal is more a partnership in the eyes of both parties, as opposed to a lender/borrower relationship.

Drawbacks: There are two drawbacks to equity partnership:

Equity partners are generally entitled to a piece of the profits, maybe even 50% or more. While the investor doesn’t generally need to pay anything upfront (or even any interest on the money), they will have to fork over a large percentage of the profits to the partner. This can mean even smaller profit than if the investor went with hard money or some other type of high-interest loan.
Equity partners may want to play an active role in the investment. While this can be a good thing if the partner is experienced and has the same vision as the investor, when that’s not the case, this can be a recipe for disaster.
J Scott is a professional real estate investor and house flipper in Atlanta, GA. His company, Lish Properties, specializes in the purchase, renovation and resale of bank-owned foreclosures, and flips approximately 20 houses per year.

Finance and Business Benefits For a Limited Partner

You might want to invest in a business but do not want to deal with the daily business management that comes along with owning a company. You might want to consider investing in a company as a limited partner. In this way the general partner will deal with the daily running of the company and you do not have to, while you will enjoy the benefits of the profits.

Explanation of a Limited Partnership

A limited partnership is when somebody provides the capitol that a business needs but has limited control. The amount of control the limited partner has is decided upon either by a contract or the limited partnerships general rules. They can’t be held liable personally for any transaction that take place within the business. They also can’t lose any personal property by law if the corporation needs funds.

The limited partner usually gets to vote at different types of business meetings, and also has the right to vote a general partner out if the majority votes to as well. Even if the partnerships general partners change the limited partnership stays. Usually all profits are divided equally between all partners unless stipulated otherwise. All losses or profits must be reported on their tax returns, whether its a personal or company return. Limited partnerships are non tax entities, so before the income reaches the limited partner it is only taxed one time.

Limited Partnership Could be the Right Choice for You

When dealing in finance and business this could be a right choice for you if you want the convenience of not dealing with the daily running of a company and still have an income coming in with your investment.

If you have a partner that wants to go into business but that does not want the responsibilities of the day-to-day business dealings, this could be right for you and them. As long as the company is effectively managed then the limited partners funds should not be in jeopardy. The limited partnership stays in place as long as there is a general partner.

How To Look Professional Online

There are billions of people who are using internet for professional purposes. It is called online reputation management. No matter what field of work you are in, online content is powerful in making and marring the image of a person. Though no specific rules define professional behavior online but it is advisable to follow some basic steps in order to look more like an expert and less like an amateur. Here is a guide to help you put your best foot forward on the Web-

The best stands out

The internet does not filter out items you don’t want other people to see. If somebody key in your name into Google then it will deliver the most relevant results. So, load the web with professional content that reflects well on your name.

Maintain your reputation

Your privacy and reputation should be taken care of. This process is time consuming but try to dedicate some time to find out and remove dubious content. For e.g. If your friend an objectionable photo on Facebook, try and remove the tag yourself. Make sure, no questionable content should be available related to you on web. Though it is virtually impossible to entirely remove the content once published online but your best option is to keep negative materials from ever hitting the web at the first place.

Protect personal information

Protecting password and other vital information is of supreme importance on the web. If anyone gets access to your account, it may ruin things beyond repair. People get victims of identity theft, sometimes financial resources get stolen and other times computers are hacked. So, the password should not be easy-to-guess thing. Keep on monitoring all accounts on daily basis.

Branding is must

Maintaining online reputation is not just being safe about your data but think of your online reputation as a product that needs to be marketed continuously. Creating a business fan page on Facebook, joining professional sites like LinkedIn, writing a blog are some of the effective ways to manage your professional presence. It will be great if colleagues and clients review your services or goods. Honest reviews are powerful. Never forget smart web surfers can quickly spot fake reviews. Try to be consistent with messages and profiles. While writing content, make sure you use the same logos, slogan and even fonts. When anybody offers criticism, respond amicably and figure out the solution to solve the problem.

Cash your expertise

It is important to be online to pump up your reputation in unlimited ways. There is no better way to present yourself as a well-rounded, trustworthy professional than blogging about a topic that interest you. This initiative will help you establish as an expert on a relevant subject. Even you are not among world’s top experts but putting a thought and value into online content is always appreciated.

The internet memory is accurate

Internet never forgets. If you put write anything online, it is there forever. So be cautious and vigilant what you are feeding it. Not everyone is happy with the internet’s long memory but your vigilance is your best protection.

Impact of Smart Technology on Data Entry Processes

With evolving smart technologies, the entire process of rendering data entry services has become way easier. Smart technologies are now helping businesses strategically and economically by generating data from every possible source including mobile phones, industrial equipment, smart accessories and personal computers.

Data entry services are considered to be “smart” on their responsiveness with respect to the incoming data. Businesses are looking for effective ways to manage data for obtaining better value and supporting their ultimate objectives.

Smart technologies tend to engage people and various smart devices with the related business, for better processing and collection of data from designated sources. For supporting and coping with the current evolution of such technologies, processes are being constantly renewed.

There are various smart applications that enhance data analytics processes and make them even better. These include Cloud Computing, Internet of Things, Smart Data and Machine Learning.

Need of Smart Technology
Data entry services, when offered with smart technologies provide real-time data processing, thus improving business’s economic growth and providing a business-friendly option with efficient data management.

When looking for a suitable smart app for your business, you should always consult a data entry outsourcing company.

Nowadays, businesses are striving for more innovative strategies while incorporating these smart apps.

It eradicates the need of paper documents.
It provides innovation with a customer-centered approach.
These technologies are all industry-oriented, providing accurate results
These are scalable and easy-to-adopt.
They work even better with unorganized data volumes.

Collection of Data via Smart Technologies
Smart technologies assist in collecting and assembling data through:

Intelligent Capture replacing template-based data extraction with an efficient capturing module and natural language understanding.
Mobile Data Entry for collecting data on various mobile devices, enabling smart data entry services.
Robotic Process Automation (RPA) providing the latest smart recognition technology for improved data processing.

Data Alteration through Smart Technologies
For better use of these technologies, data entry services and methodologies are continuously being reshaped and revised, allowing organizations to take competitive advantage, along with enhancing cost-efficiency and security of business operations.

Smart technologies include Artificial Intelligence, Machine Learning, Internet of Things have now replaced manual processes that are more time-consuming, providing lesser room for human errors.

Let’s talk about a few of these technologies:

Artificial Intelligence and Machine Learning are more responsive and secure when it comes to managing any repetitive task, recognizing various patterns and enhancing the accuracy level.
For expanding number of data sources and creating a connection between people, internet, devices and businesses, IOT (Internet of Things) is used extensively these days.
From cloud computing services based on data entry services, businesses can derive benefit and manage the complexity of their data infrastructure.

Effect of Intelligent Technologies
Smart technologies are drastically casting a positive impact over data entry services and rendering a friendlier approach, providing benefits in the following ways:

Better and more composed process, leading to reduction of human errors.
It has become faster and more efficient with easy management of data in bulk and from different sources like paper forms, scanned images and much more.
Streamlining the business operations and changing the perception of businesses to deal with data management projects.
Increasing the potential to scale data entry processes and utilize innovative techniques.
Enhancing the ability of businesses to manage remote projects more effectively and receive client data irrespective of network availability.

With data entry services supported by smart technologies, you can better achieve your business goals with an efficient management and processing of data.

Understanding the Importance of Residual Income

This article is aimed at explaining the importance of building residual income and also to explain the need for individuals to leverage network marketing business model if their dreams are to gain financial and time freedom. So, even if you presently work a job or business, it is needful that you pay attention to network marketing so as to develop residual or passive income over time.

The commonest way that people define residual income is “income earned while sleeping”. Is it really possible to earn income while, all the while, you are asleep? This may sound strange to some people but, yes, it is possible.

The importance of residual income in a man’s life finds expressions in the statement of the billionaire investor, Warren Buffet, in which he stated that “if you don’t find a way to make money while you sleep, you will work till you die”.

Residual income is a concept that many ignore without understanding that their future well-being is dependent on it. And with what result? With damaging consequences.

By going to work every workday and receiving a salary at the end of the month, you’re simply exchanging time with money. Your salary is not residual. If your work stops, your income stops automatically.

Let me explain residual income with the following example.

Imagine two men in a village. Both have to walk a mile every day to a river to get water for their families. After a month, one man starts working on building an underground pipeline to connect the river to his house. For an entire year, he expends extra energy working on his pipeline. When he finishes, he has the source of the water directly to his house, while the other person continues to visit the river.

Residual income is like building a pipeline to connect water from the source to your house so that you don’t always have to go to the river.

In that short example, you will notice that it took some time for the pipeline to be constructed. But having done that, the man continued to enjoy water supply effortlessly.

However, the second man who failed to take the same initiative had to continue to visit the river for his water supply. What will happen if he becomes indisposed? He and his family will stay without water and suffer its consequences.

There exist many business initiatives that you can leverage in your effort to build residual income. But I do recommend network marketing, or MLM as some would like to call it, due to the fact that it doesn’t requre a tonne of investment capital to set up.

A lot has been said about network marketing by various network marketing professionals but many still feign ignorance about it.

The reasons people WON’T take a look at network marketing is NOT:

• because they don’t have the money.

• because the opportunity or business isn’t good.

• because they are worried about being scammed.

• because the profit margins aren’t high enough.

• because the demand for the product isn’t wide enough.

• because they need to ask their spouses first.

• because they need a night to sleep on it.

• because they need more time to research the company.

• because they need to get on the phone with you to join.

• because they have to ask other people on Facebook to see if you’re a good sponsor.

• because they need to see your bank account to prove the results.

• because they don’t believe in it.

The real reason they don’t join network marketing business opportunity is that they have been conditioned by society to be consumers of goods and not producers.

.They have been conditioned to buy “education” but not to buy knowledge.

.They have been conditioned to have a “job” but not to own a “business”.

.They have been conditioned to be workers but not to be their own bosses.

.They are non-thinkers instead of go getters

.They are intimidated by anything that challenges them.

That is what this is really about. It’s about people who are so afraid of learning, and stepping out of their comfort zones and being paralyzed by their fears.

It’s about being comfortable and caring what other people might think. It’s about their family thinking they are FAILURES if they do anything besides just having a JOB.

If you’re working presently, understand that you are only exchanging your time and effort for the pay cheque you receive at the end of the month. That’s okay though but by going to work every day, you are not building residual income which is the pipeline that will enable you to get water supply without having to go to the river.

Why It Pays to Have a Multiple Quote Website

Why it is necessary to get a reliable insurance company in today’s world: there are certain straightforward trademarks of all insurance companies, through which we can distinctly differentiate between them.

Go through the reviews of well-reputed and creditable resources which can assure you that the insurer you are opting for works for your benefit and secured contentment.
Shop around for comparison because there might be companies in market providing premium policies at a dirt-cheap rate, but many a times those companies aren’t legitimate. So, go through policy details and settle for that particular insurer who facilitates all coverage without cutting down the market rate to 50% but at the same time is comparatively cheaper.
Lastly, consider experience as the most important trait of the insurance company. Check their expertise in the field you are concerned about, and if their issue of license has a greater number of years in terms of longevity, then go for it without hesitation.

Categories of coverage: A cobweb of insurance companies is present, offering insurance for multiple categories like:

Insurance for Cars: Two things every car owner should keep in mind while selecting the insurer:

While liability insurance is over-priced, the common policies are quite cheaper in comparison and some other policies are dependent upon the model of your car.
Never allow lapsing of the policy you are paying for.

Insurance for Homes: The most fundamental and common homeowner insurance policies cover at least four of the following criteria:

Coverage that shields your home.
Coverage that protects other liabilities.
Coverage that guards personal properties.
Coverage for the surplus living cost one has to pay in life.
Coverage for undone properties.

Insurance for Health: In this resilient economic condition that we are living in, there is one insurance policy called HDHPs or Catastrophic Health Insurance policy on which every consumer is banking for fortification in emergency situations.

Life Insurance: Points to be noted when investing in life insurance premiums:

Check your financial service aids from which your family can draw.
Write down a rough description of all your long-term financial requirements.

For some companies, there isn’t one particular website for all the information on these categories. Hence, digging through multiple sites and reading along the lines of criteria for multi-categories of policies is tedious and difficult.

So, for all the purposes mentioned above, you need a website which contains concise and updated information on multiple insurance quotes.

The kind of information available on multiple quotes websites: The procedure for proper operation of the websites varies, but the end result remains the same, which includes the following:

They are equipped to present us with the perfect coverage plan according to the basic details about us and our personal requirements.
Easy comparison of multiple insurance quotes so that every doubt is clarified and we choose the optimum and ultimate plan for our own benefits in terms of long term protection.
Based on the range of rates that we have set for us, we get both variety and reliability in the form of information proffered by these websites.

Webinars – A Guide to Creating The Perfect Webinars

With the ever-increasing technology in today’s world, the demand for high speed information is at an all-time high, and along with this, the modes of information delivery are also increasing a lot more. With this increase has come a powerful new medium known as Webinars. The term for a Webinar is a “Web Seminar”, which a live-streamed video conference that can be used for businesses and their employees over long distances, which can also be used for online video interviews and related services. Businesses that use this tool can boost productivity and efficiency, as it can cut down travel time and costs and allow issues and tasks to be solved quickly. In this guide, we will explain exactly what needs to be used to make a webinar work correctly, allowing you to break out into the crowd.

As stated above, a webinar is a tool used for live conferencing. This is not just limited to business meetings, but can also extend to business interviews, school and college interviews, marketing a product and even general Q&A’s. However, using this tool can prove to be difficult for those who have no general idea where to start from, and with little to no experience, things could lead to be sloppy and unappealing for viewers which can lower traffic and interest. In order to make sure the experience is a pleasurable one, you will need to know a number of things that will help you expand your knowledge in the field of webinars. In this entry, we will be focusing on a specific aspect of webinars, which is marketing a product, item, or service to a particular audience or demographic.

As a first, arguably the most important aspect of hosting a Webinar is the equipment being used. It should be obvious, but a lot of people will quickly lose interest if the video quality is poor, as viewers will not want to spend their time trying to figure out what exactly it is they’re looking at, quickly prompting them to be annoyed. The next item that may lead them to be just as disgruntled is the general audio quality. If the audio is choppy and inaudible, it will most likely render them unable to hear the opposing party, causing issues and possibly resulting in miscommunication. These issues can usually be resolved by simply acquiring a faster internet connection, as these can be the result of poor connection between both ends. However, if the issue still persists after this, it is more often than not a result of low-quality equipment, and it may be wise to invest in an external microphone and a High Definition camera.

Next, maintain a connection. When it comes to creating webinars, you are constantly competing for someone’s attention. This is why it’s important to make sure your content is both relevant to what the viewer is looking for, and just as important to make the webinars fun and entertaining as to make sure you keep the potential customer hooked in. On average, a general video viewers attention span only lasts ten minutes in, however with marketing webinars, it is an even smaller window. On average, you have only ten seconds hook in a viewer’s attention and maintain it, as more often than not, if this attention is not held they will simply move on to the next appealing product that is being offered. This first ten seconds is crucial and critical. Start out with a relevant and relate-able joke, as a humorous tone will help draw in a viewer.

Finally, learn to keep it real. As stated in the previous entry, it can pay off to maintain a connection and relate with your viewers. This is to make sure you can hook in as much potential customers as possible. The more viewers there are, the more attention your webinars will draw, in turn, bringing even more viewers and creating an upward spiral of success. A good way to do this is being your webinars by introducing yourself with a real life story that will help our viewers to relate to you. By doing this, it shows that you are also a real and relate-able person, prompting viewers to be even more interested in your offers. You can also use the advantage of analytics as a tool. By inputting real life statistics into your webinars, this shows your viewers that you aren’t simply trying to sell than item, but you are showing them a crowd of other customers that also believe they need this item. This can trigger a response in your viewers that lead them to be even more interested.