National Home Equity Loan

The Options to Make Money From Obsolescent Properties That Can Be Put to More Profitable (bad credit home loans)

By Franco Zinzi

 The name of the game in this business is to buy options on undervalued properties with immediate resale profit potential. And the only way to maximize a property’s profit potential is to put it to its most profitable use. That is why in this chapter I give you the lowdown on how you can use options to control properties that can be put to more profitable uses. Over the past 40 years, the U.S. economy has gone from a manufacturing base to a service and technological base. Today, we live in an age of rapidly changing technology where whole industries can be rendered obsolete overnight. This change in the American economy has resulted in a lot of structurally sound buildings that are functionally obsolete by today’s standard, and they are sitting vacant. And most Americans today are caught up in the notion that anything new is automatically better and superior to anything old.

So, when people with this mindset come across a property that has been vacant for an extended period of time, they just assume that there must be something wrong with the property. After all, why on earth would a piece of property sit vacant for a long time without attracting any offers to buy it? The truth is that many vacant buildings are relatively new and have a lot of years of use left in them. But we live in a society where people are accustomed to replacing things instead of repairing and reusing them. And this throwaway mentality has carried over into real estate as well. For example, how many times in your own town or city have you seen what appear to be perfectly sound buildings being torn down and replaced when they could have easily been put to another use?

As far as I am concerned, this is financial lunacy, when you consider that it is almost always much more cost-effective to buy an existing building that can be adapted for reuse than it is to go out and buy a piece of land and build a brand spanking new building from the ground up. And this is especially true today, given the shortages of building materials and the lack of qualified workers within the construction building trades. The fact of the matter is that when an existing building is put back into use, the property owner avoids all of the rigmarole that is part of the expensive and time-consuming new construction approval and building process, which can include:

1. Opposition from local antigrowth activists.
2. A long drawn-out building approval process.
3. Paying exorbitant building permit and impact fees.
4. Delays caused by shortages of critical building materials and inclement weather conditions.
5. A lack of qualified building contractors.
6. Construction cost overruns that can take years of appreciation in a property’s value to recoup.

Definition of an Undervalued Property with Immediate Resale Profit Potential:

For the purpose of buying a real estate option, I define an undervalued property with immediate resale profit potential as: “Any property that can be purchased for at least 20 percent below the sale price of comparable properties in similar condition that have sold in the past six months, within a two-mile radius of the potential option property under consideration.”

Franco Zinzi has been involved with online marketing for nearly 3 years and likes to write on various subjects. Come visit his latest website which discusses of Online Stock Trading and stock trading tips for the owner of his own business.

Be Careful When an Insurance Broker Tries to Replace Your Policy

By Shah Rizvi

 An insurance broker may try to sell you on one big policy to replace the various smaller ones you carry on your home and its furnishings. Is it a bargain? Maybe yes, maybe no. It depends on the policy, the company behind it, your needs and your resources. You certainly should not go for it without examining what you’re buying. We have seen one such package policy which increased the “deductible,” restricted the terms of coverage, lowered the face amounts, and increased the premium - over the sum of the smaller policies it was calculated to replaces.

The broker touted it as advantageous. It certainly was - to the company and the salesman’s commission check. Why, then had he recommended it to a regular client? Closer analysis showed that it did have certain other advantages, mainly in the coverage generalizations. Choice between it and the previous separate policies was really a toss-up. Such ‘packaging’, has two basic advantages, one for the company, one for you.

1) It saves the company a considerable amount of bookkeeping, thus money. You are one policyholder, not several.

2) It saves you bookkeeping, too. You need keep track of one policy and remember only what is in it. What’s more, you become a rather more favored client, and that is no insignificant item, since the company’s performance when called upon to back up its guarantees is at least as important as what the policy says. All companies in any business favor a client who buys more or from whom they make a better profit.

The rule here is the same as in all insurance questions. Read the policy. If there is some wording you don’t understand, look it up in the dictionary and ask to have it explained so you understand it by your agent.

If you still can’t understand it, go further by looking it up in an insurance reference book such as you will find in any good public library. Just ask the librarian.

If this effort finds you still confused then you have wandered into that never-never land of the true meaning of an insurance policy. Beware! If you go a step further you will have entered upon a lifelong quest. Get a good insurance broker in a conversational mood and ask him a few fundamental questions about the actual meaning of what it says in the policies he sells. Rare is the broker who can answer intelligently.

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Monday, February 8th, 2010 at 10:30 am and is filed under finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.