The modern era is filled with online solutions. We can shop online, order groceries online, book a vacation online and even study at online universities. These options are generally embraced by consumers, but when it comes to online personal loans, a certain fear factor comes into the picture.The truth is that there is very little reason to rule out any of the online financing options that exist, though there is, as always, a need to have a high level of care when giving personal and financial details over the internet.Nevertheless, personal loans from online lenders are nothing to be fearful of, with the lending institutions having to meet the same criteria to operate commercially as every other financial institution.These criteria are very strict, and online lenders have business offices, tax and trading documentation, accreditation and staff that are answerable. Therefore, lenders providing online loans can be trusted.The DifferencesThe key difference between getting an online personal loan and a personal loan from a traditional walk in bank is that it is possible to view a lot more options in a lot shorter period of time. Like everything else that is available on the internet, online financing solutions it is possible to consider a vast amount of options from the comfort of your own home.This means that when looking at personal loans from online lenders, it is easier to make an educated decision on which is the best to choose, based on different interest rates, APRs and repayment options.The task of searching for the best finance deal is made much easier, and lenders providing online loans know this very well. With competition so acute, and best deals are usually to be found online.Loan CriteriaAs already mentioned, there is no great difference between the criteria required to secure online personal loans and those from traditional lenders. However, when bad credit rating is a factor in an application, there is arguably a better chance to get a loan over the internet than from a bank.The reason why comes down to two simple factors. Firstly, online financing is more easily searched, meaning that the specific terms and conditions that a borrower is looking for can be located. In contrast, a borrower may only go six or eight banks and financial institutions in their city, so the search options are limited.The second reason is that competition levels are so high, lenders providing online loans know that higher profits can be attained if they are willing to take the risk. After all, most people with bad credit seeking personal loans from online lenders are intent on improving their rating. Loans for people with bad credit can, therefore, be a good niche market to capture.Simple Application and Fast ApprovalSome of the suspicion that people have with online personal loans comes from the fact they are applied for and approved so quickly. This is at odds with what is expected from banks. But this is one of the key advantages with online financing when a borrower needs fast confirmation. What is more, it is usually possible to communicate directly with the lenders, through online chatting, emailing and even video conferencing.Personal loans from online lenders are perfectly legitimate, though it is always a good idea to check the lending company out. But just as traditional personal loans come with conditions and terms, and is considered a legal contract, online personal loans are also subject to strict obligation.Repayments directly from your bank account is normal, reducing the chance of missed payments, and providing a great opportunity to rebuild credit rating.
Private Party Real Estate Financing is an OptionCreating a valuable financial assetThis article explains an alternate way to finance the purchase of real estate, and a way to creation a financial asset that can provide monthly income at a rate above traditional rates available in today’s market. Our discussion is about private party promissory notes used to finance the purchase of real estate. This alternative type of finance has several names-”private party financing”, “seller financing” and “owner-carry financing”.You can create this investment (financial asset) by selling a property and not having the buyer borrow from a bank; you can become the bank and earn the interest. Or, you can buy an existing note from a private party who did the financing: you can become the lender, and earn the interest yourself. Mortgage notes (bank notes or private promissory notes) are a major component of every real estate transaction. If you creation or own the note that puts you in financial control of the transaction. At a later date you have the option of selling the note if the need for cash arises, or keeping it for monthly income.Maximizing the value of the noteLike any item made or constructed, the note’s value to you, and to others if sold, depends on how well it is constructed. A poorly constructed note, like a poorly constructed house, is not a very desirable asset. There are several important factors that will enhance value if done correctly, or significantly detract from value if done poorly. The cash you get from your note if you hold it, and how much cash you get for your note if you sell it, depends on these factors:BorrowerThe most important consideration when originating or purchasing a note is the quality of the borrower. Two elements determine the quality of the borrower, (1) having the financial capability to keep the payment promise, and (2) having the right attitude toward the importance of the promise. If the borrower does not have the ability to keep the promise to repay, the value of the note is diminished, regardless of having a positive attitude; and, if the borrower has the financial capability to pay, but does not have the right attitude toward making the payments, the note’s value is diminished. Get a credit report on the buyer. Make sure the buyer doesn’t have a history of late payments, non-payments, lawsuits, or judgments. Financial capability and personal attitude are the two critical factors.CollateralThe real estate pledged (by mortgage or deed of trust) is the back-up protection securing repayment if the borrower is unable or unwilling to repay. It is the safety-net. The collateral should have a market value of at least 125% of the loan amount: $100,000 loan requires $125,000 collateral security; stated differently, the loan amount should be, at most, 80.0% of the value of the collateral. Be certain that a sufficient down payment has been made.Interest rateThe interest rate should be at the least 1.5 X the prevailing bank rate for a similar loan. Example: bank rate is 5.5% X 1.5 = 8.25% rate for a private party real estate loan. The borrower is willing to pay the higher rate because the bank is unwilling to make him the loan; the private party loan is his only option. This rate is fair because the borrower has been labeled by the bank as a “high risk borrower”. The private party lender is assuming a greater risk by making the loan.ConclusionProviding private party real estate financing to a qualified borrower, supported by adequate collateral security, at an appropriate interest rate is a sound investing strategy. Don’t overlook this opportunity!
While you may think that you do not really know that much about internet marketing as compared to some of the internet marketing gurus out there, you basically know a lot more than a huge number of people who are trying to get into online marketing arena. This kind of knowledge that you have can actually be a money maker for you if you simply use it to your advantage. The way you can use your knowledge about online marketing to make money from is to put up an internet business education site that gives neophytes to internet marketing some basic information on how to get their own internet marketing ventures to work.You can choose to make an internet business education site that offers tips and tricks on different aspects of internet marketing. For example, you can offer modules to those who want to learnt how to drive traffic to site, how to create the right kind of website that people will gravitate towards, how to be successful with a drop shipping venture and whole lot more. You can also offer people e-books that give them a step by step guide on how to put up their own affiliate marketing website and how to choose the right kinds of products to sell.You can also offer people tutorials on how to find online job opportunities or work at home opportunities and how to make money by working for others while in the comfort of your own home. If you have knowledge about certain money making ventures online and you feel that people will want to know about these things and are willing to pay a price for such information, it can become a business for you.