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Hotel Reservations

hotel_real_estate — Mon, 21 Jun 2010 16:29:00 CDT

I would like to refer to a recent announcement about a free hotel reservation widget issued by a website for cheap hotels reservations. This widget can be easily added to a blog or personal website in order to enable hotel reservations directly from its installed page. It may be a useful tool if you are a frequent traveller and would like to compare hotel prices anytime is required. In any case is a nice add on to any blog bringing some color and functionality.

Hotel Properties

hotel_real_estate — Mon, 21 Jun 2010 16:26:49 CDT

Good news from the hotels for sale website. It has been chosen by many hotel business operators to advertise hotel properties for sale worldwide and by many persons looking to buy a hotel in order to find actively the needed hotel property.
Statistics tell of more than 260 updated hospitality properties for sale currently advertised. These properties only include actual properties for sale, excluding classifieds that have not been updated for a long time by advertiser or for which the advertiser is no longer reachable at the registered email address. This is an important quality item that can affect a free real estate classifed listing website and it has been resolved by continuously interacting with the hotel sellers to ensure they keep updated the hotel for sale advert and to ensure that the advert is deleted when not anymore taken care of.
It is open and free to add a hotel for sale to the website and to gain a great exposure to the market as this website is very targeted.
A further note to convince hotel sellers to add a property is that the website has a great number of active buyers registered who are ready to know about any new hotel property being offered for sale, hundreds of them in addition to the many visitors that visit the website every day coming through search engines or redirected by other partners websites.

New Hotels For Sale

hotel_real_estate — Tue, 15 Jun 2010 10:09:25 CDT

We are now mid year 2010 and it is time for some review of our activities in the real estate business.

We have more than 260 hotel properties for sale worldwide with a real international coverage. All these are up to date properties without any old or superseded listings.

In addition to this we have a number, which is not going to be disclosed but in the hundreds range, of registered and active international hotel buyers that have chosen to be alerted for new hotel properties on sale.

Both hotels for sale and hotel buyers registrations kept a steady pace in the period and we believe at the end of 2010 the figures will look better. We will gladly update about the status at year end such that people interested in hotel real estate can follow our efforts in this field.

During this first 6 months it seems that increasing trends were for hotels for sale in Spain, here a reason could be in the general conditions of real estate business in the country.

Cheap Hotels

hotel_real_estate — Tue, 15 Jun 2010 09:54:47 CDT

For all business people regardless the field of work, there is a requirement for frequent travel and finding good travel services and prices. Sometimes travel arrangements are made by the travel office of a big company, in other smaller companies a skilled secretary would be taking care of these arrangements. Any business trip will require one or a combination of transport (air,taxi,car rental), accommodation (hotel or motel reservations), entertainment (for the top managers or when building a commercial relashionship with a customer).
In our experience it is good to have separate tools to book different items of the trip, in this respect when it comes to hotel reservations is good to have at hand a list of hotel reservation websites to chose from - in our experience not less than three and not more than four, for efficiency.
With the best websites it is easy to find cheap hotel rates and save yourself or your company a great deal of money as it can be when easy to find cheap hotels in nyc or other usually not so cheap locations. The trend is for now flat and hotel rates still cheap in New York even in midtown Manhattan or for downtown hotels.
Hopefully this can be of help when travelling to check out some property and in need to spend a night away from home.

Business Financing

TraceyDonley — Tue, 04 May 2010 09:22:12 CDT

More and more individuals are looking to make the jump from corporate America to entrepreneurship. Often, financing a business purchase is a topic that people do not address early enough in the process. Although there are many great business opportunities available, how you finance your business venture often determines the level of success you will enjoy. Traditionally, there have been five ways that people finance a business:
* essay papers

Home Equity Line of Credit (HELOC)
Bank Loan
SBA(Small Business Administration) Loans
Retirement Funds
Using Modern Factoring of Receivables

Determining how you will finance a new business purchase is one of the most critical choices you will have as an entrepreneur. The first thing you should do—once you're fairly certain you've found the business that is right for you—is to request information and start looking into your options.

Have you started a business and have experiences to share about how you financed that business?

Do you have questions about how to finance a business?

This is the place where individual investors can share valuable information about how to finance a business.

USA hotels for sale

hotel_real_estate — Thu, 08 Apr 2010 04:44:46 CDT

Investors looking for a hotel business in the USA can find several opportunities listed on HotelBeam.com/sale-index.asp as well as on many other commercial real estate classifieds websites.

A quick selections of hotel properties currently on sale in the USA is given below:

Here is a California great opportunity: a 28 rooms boutique hotel for sale in Los Angeles, in excellent turn key conditions, near studios, beaches, century city, UCLA university, over 1 million in revenue, low expenses, high cap. Quite promising offer, price requested 6.75 Million $.

If you are looking to start a business in Colorado then this offer can be for you: Motel for sale in Colorado, busy 88 Room Exterior Corridor Motel right off I-70 Exit 90 in Rifle the “Heart “ of Colorado’s Oil Gas Country. Double Black Diamond Motel Rating with an Outdoor Pool, Sauna and Laundry. A professionally presented offer tells you more about operating and financial data, asking price is 8.2 Million $.

In central Florida we find a hotel for sale in Florida Lake Wales: RED CARPET INN 48 UNITS RENOVATED 2009, GUESTROOMS AND PUBLIC SPACE EXCELLENT OWNER OPERATOR OPPORTUNITY (3 BED/2 BED MANAGERS SUITE) - Well presented property with vacant land, you can consider it for a sell price of 3.1 Million $.

There are many types of properties for sale out there if you want to start working in the hotel business, between hotels for sale in Wisconsin we have selected a Historic Inn for sale. This is a 17 room full-service historic inn for sale located 1 hour east of Madison and 1 hour west of Milwaukee, possibly a good opportunity for a new starter with a selling price just below one million $.

A number of hospitality properties for sale in Oregon are available, ranging from Chalet hotel, Inn with restaurant and bar, Hotel in metro area, some of these properties come with seller financing as well. Prices from 2.1 to 5.4 Million $.

Finally a sample property from one of the most important states for hotel, casino and entertainment businesses: Nevada. This Nevada motel for sale is located near Reno, in a small town south of Reno. Very strong business presence and military. The owners have been running the property since early 70's and are ready to retire. Property is in very good condition and everything has been maintained properly.

From the above mentioned businesses for sale offers it may appear to be a good time to look at investment opportunities in the USA. Hotel properties for sale are updated regularly and new properties are advertised time by time. For interested hotel investors it is possible to register and receive alerts when a new hotel for sale is advertised, this will save time in searching a good business deal and it will make a registered hotel investor the first person to know when a hotel real estate and business is on sale.

Selling hotels

hotel_real_estate — Tue, 13 Oct 2009 04:00:00 CDT

Hospitality industry professionals together with hotel developers and owners may need to look at opportunities in the real estate market to identify hotels and motels to buy and develop. There are many agencies, realtors, professionals in the real estate business as well as many classifieds websites. Despite this a new service is made available for hotel real estate classifieds and it is a valuable route to follow. In fact this free classifieds service comes from a popular hotel directory, already visited daily by many people in the same business. Of course it comes free as already said. Furthermore visitors can easily view the hotels for sale and contact the hotel owner with a email contact form without any need to be registered users. At the same time if you wish to buy hotels you can add you email to the system and be alerted for newly added hotel real estate properties ads.

UBIT - When does it apply?

guidantfinancial — Tue, 01 Jul 2008 12:22:41 CDT

This article was originally contributed by Forrest Moore, Senior Account Manager for Guidant Financial Group. Forrest is an expert in the field of self-directed retirement plans.

With the popularity of self-directed IRA investing at an all time high (and growing quickly), there is a decent chance that you or someone you know is using retirement funds to purchase real estate, invest in loans, buy a business, participating in a private placement or other “non-traditional” investments. Self-directed IRA holders have many more investment options available to them then those offered through a traditional brokerage house.

It is important to understand what you can do with a self-directed IRA but it is just as important to know what you cannot. Most self-directed IRA investors know that it is prohibited to invest retirement funds in life insurance, collectibles or any investment that involves a “disqualified person” (certain close relationships). One important factor that impacts the investment choices of self-directed IRA investors and is often overlooked or misunderstood is Unrelated Business Taxable Income or UBIT. UBIT is a special tax that Congress created to apply to tax-exempt entities that produce income from business activity rather than passive investments. In addition to churches, charities and non-profits, IRAs are also affected by UBIT. The focus of this article is how this can impact a self-directed IRA.

Many passive investments that your IRA might pursue are exempt from UBIT. Some examples of exempt income to an IRA would include interest from loans, dividends from securities, real estate rental incomes and the proceeds of the sale of real estate that was held for appreciation. These kinds of income are often referred to as “passive.”

The types of income that could subject an IRA to UBIT those earned from the sale of a product or service, whether retail or wholesale and regardless of ownership percentage. If your IRA buys a gas station and earns its income from the sale of gasoline, potato chips and cigarettes, this income is clearly business income – you were selling (or exchanging) products. (Such an investment would be impractical as well because if your IRA owned the asset you would be barred from working for or managing that store personally or even shopping there!) Where self-directed IRA investors are most likely to encounter UBIT is in certain types of real estate projects. However this is where the most confusion is found.

The types of real estate projects where a self-directed IRA investor would most commonly face UBIT are on the profits generated as a result of rehab/flips or development /construction projects that result in resale. In contrast, incomes from properties purchased for appreciation and/or rental incomes are exempt from taxation in an IRA, unless the property is purchased on leverage—which is an entirely different topic that will be covered in a separate article to follow. The area where investors (and OFTEN their tax advisors!) get confused is in determining which projects produce business income (where UBIT would apply) or simply passive, tax exempt income.

The IRS and the tax courts use a series of tests (There are up to 10 factors that can be considered) to determine if an activity is a passive investment or a business activity. No single one of these factors is more important that the others, and no one factor is determinative. Here are some of the most common tests used in no particular order:

Intent – Did the individual buy the property with the intent to hold the property for appreciation? Or did the individual buy the property to resell it quickly? If the intent was to hold for appreciation this is a strong indication that it is an investment and not taxable to the IRA. If the intent was for resale that is a strong factor that the activity will be deemed a business and taxable to the IRA.

Development or Construction – In general development or construction activities are considered to be activities that are designed to increase the value of the asset through action as opposed to appreciation. Development or construction activities are factors that imply the activity is business-related and therefore taxable in the IRA.

Holding Period – The longer the property is held from either the original purchase price or from the completion of development or construction the less likely the income will be subject to UBTI when it is eventually sold. In most cases one year from the completion of development or construction is considered the minimum length of time the property should be held to offset the business factors of any development or construction activities that have occurred – but that must be discussed with a qualified tax professional.

Marketing – Marketing activities include any activities that are designed to attract a potential buyer. The longer you advertise and the more aggressive the marketing, the more likely your investment may be considered a business and be subject to UBTI.

Inventory Replacement – If your IRA sells an asset and then replaces that asset with another similar asset to be sold this is holding the property only as inventory. The more rapid or frequent the replacement and resale cycle the more likely that UBTI taxes will apply.

If you are considering using a self-directed IRA to invest in non-standard assets you should consult with a qualified tax professional to gain a better understanding of the potential tax implications. Because no one factor is determinative it is important to take all of these factors in to account. Your tax advisor may even bring up other factors to consider depending on your IRAs specific investments. If you understand and account for each of these factors then real estate investment can be an excellent way to grow an IRA.

Finding an IRA Custodian

guidantfinancial — Tue, 06 May 2008 12:18:32 CDT

One of the most difficult yet important tasks an investor faces when looking to participate in the self-directed industry is finding the right IRA Custodian. An IRA Custodian works as the bank and are highly regulated by the IRS, state and federal banking commissions and have to meet stringent federal requirements in order to keep their good standing. In most cases, your custodian or trustee will also serve as your administrator for the retirement account. They question is how do you find them and how do you know who to work with? A IRA Facilitator or Guidant Financial Group, works with most custodians nationwide and can help you better understand which one is right for you.

There are very few non-traditional IRA custodians simply because the business is not as profitable as it is for the brokerage houses and it require many more “man hours” to complete a real estate purchase. This is why the fees that non-traditional custodians charge seem so high. Because their systems, for the most part, cannot be automated, they have to charge you asset fees just for having the account and then transactional fees every time you make an investment. This is not unlike fees charged by high-end brokerages instead of commissions for trades.

Traditional brokerage houses don’t compete because it doesn’t fit within their business objectives. They make money by leveraging your money. A bank will charge you very little to administer your IRA (which can only buy securities) because they will take those deposits and lend them to someone else for a car loan, home equity line of credit and so on. You get less than a 1% return in your checking account—they get 5% to 20% for lending it to another party.

In the self-directed industry you get what you pay for. Unfortunately, if you buy cheap—you will likely buy twice. Because the IRA Custodians who allow non-traditional asset participation cannot implement as much electronic atomization, their fees are quite costly. The relationship between you and your custodian is much like that of a parent-child relationship where, if you find an investment, you have to go back to them to for permission. The custodian’s ability to react and service your request in a timely manner is crucial to your success with a “traditional” self-directed retirement account. The custodians who have the capacity to provide great service can be very expensive.

Assuming you found a home that you viewed as an ideal real estate investment, you would have a realtor write up a purchase and sale agreement for the property. The purchase would need to be written up as being purchased by your retirement account. You would then have to download or request a non-publicly traded asset investment authorization form and fill it out. From there you’ll need to fax the purchase and sale, with the authorization form and all escrow wiring instructions and contact info to your custodian for their review. There may be a fee for this review (varying from a flat rate to upwards of $100 per hour) and there will be a fee for the custodian to wire the earnest money to escrow. The time in which that money gets to escrow depends on the custodian, how long it takes them to review the purchase, fill out the necessary documents and whether or not you paid an expedite fee. The closing agent (escrow or attorney) will forward the appropriate documents to your custodian to sign and fund the purchase of the home. There is a fee involved for a notary, additional wiring fees, recording fees, safekeeping and more. Once a purchase is recorded and funded—the deed will need to be forwarded to your custodian for safe keeping. Guidant can help you eliminate transactional fees for your investments.

Home

guidantfinancial — Fri, 18 Apr 2008 11:15:13 CDT

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Real Estate Investment News

Italian Real Estate

InvestorEric — Wed, 05 Mar 2008 15:52:52 CST

With its beautiful countryside and Mediterranean getaways, Italy has long been a favorite vacation destination with travelers across the world. The country’s popularity with tourists could make Italian real estate a prime opportunity for investors.

Italy is located in Southern Europe, where it juts out into the Mediterranean Sea. The country shares borders with Austria, France, San Marino, Slovenia and Switzerland. Italy occupies a total of 301,230 square kilometers, making it just slightly larger than the U.S. state of Arizona (295,260 square kilometers). The peninsula is home to an estimated 58,147,733 people as of July 2007, according to the CIA World Factbook.

Why Italian real estate?

“Italy's exquisite cultural patrimony, evocative countryside and ‘made in Italy’ craftsmanship all combine to preserve the value of Italian real property,” Donald J. Carroll, Esq.—special counsel to and member of Pirola Pennuto Zei & Associati in Rome and vice co-chair of the ABA Committee on International Investment in Real Estate—said in an e-mail interview.

The flourishing tourist industry in Italy provides a strong potential rental market for investors looking to buy overseas. In 2006, Italy ranked fifth on the World Tourism Organization’s list of top tourist destinations, with 41.1 million international arrivals. Southern Italy, in particular, has been of great interest to vacationers. Homes and apartments along the coast or in the relaxed country settings that tourists favor have the potential to provide substantial rental income.

“Among Europe’s main destinations, Italy was by far the best performer in 2006, after a number of weaker years. Arrivals were up 12 percent, following an excellent winter season at the start of the year, thanks in part to Turin’s hosting of the Winter Olympics,” according to a World Tourism Organization report.

And U.S. investors don’t need to worry about restrictions on property ownership because of their citizenship status. Foreigners enjoy the same property rights as Italian citizens, according to Marco Pessi, a partner with McDermott Will & Emery located in the Rome office. The only difference is that foreign nationals must pay an 11 percent purchase registration tax once the sale has been completed, while Italian citizens need only pay a 4 percent tax.

Click on the following link to read the rest of the article on investing in Italian real estate.

Investing in Merida, Mexico

InvestorEric — Wed, 05 Mar 2008 12:46:19 CST

The city of Merida, on the Yucatan Peninsula in Mexico, is gaining a reputation as a hot spot for international investors. (For more information on investing in Mexico, see The Myth of Mexican Property Ownership.) With a culturally rich historic district just ten minutes away from the modern north side of the city, there is something for every investor’s palate.

In Merida, neighborhoods within and bordering on the historic district are gaining attention because of their low prices and colonial architecture.

“Merida’s historic downtown area, which is the second largest in the country after Mexico City’s, [has] several neighborhoods…where you would see a lot of old colonial properties with features like old high beam ceilings, original Spanish tile floors, pure rock construction, arches, long corridors, interior courtyards, backyards, etc.,” Gabriela Isaac, co-owner and founder of Real Estate Yucatan, said in an e-mail interview.

Click on the following link to read the rest of the article about investing in Merida, Mexico real estate.

Nicaragua Real Estate Investment

InvestorEric — Tue, 04 Mar 2008 17:22:11 CST

When people travel to a foreign country like Nicargaua, real estate is typically not at the front of their mind. Very few can say that they have leased a property for business after visiting for just three days, but that’s just what Charles Southwell did nine years ago. Southwell is an investor and real estate developer who lived and worked in Costa Rica for years; he went on a trip to Nicaragua with a friend nine years ago. “Within a matter of 72 hours, I had leased a building for business and basically decided to move here,” Southwell, who now owns the RE/MAX Granada franchise in Nicaragua, said. “I could feel the opportunity.”

Click on the following link for the rest of the Nicaragua real estate investment article.

Diversification through Self-Directed IRAs

InvestorEric — Tue, 04 Mar 2008 13:55:24 CST

Written by: Trista Winnie

What do boat slips, fishing rights for sablefish in Alaska and seahorse farming have in common?

Water, for one thing. More importantly, they are all investment possibilities within self-directed individual retirement accounts (IRAs).

"Initially I had my funds in a pension and 401(k)....When I retired, I didn't know what to do with those funds," Tony Moreno, a self-directed IRA holder who is planning a seahorse farm off a private island near Honduras, said. "When I learned about the self-directed IRA...and found how much flexibility there was in what I could invest in, that seemed to be the most logical place for me to put that money."

Moreno said he began to do research into international real estate, looking for sandy beachfront property. Eventually, he decided to try to purchase a private island.

"I was thinking of doing something like creating a subdivision and selling lots...but when I went there and saw [the island], I realized it wasn't really suitable for that," Moreno said, because much of it is government-protected mangrove forests. "One of the things I came up with was to use the island for creating a seahorse repopulation effort...by creating a habitat area on the outskirts of the island."

Visitors to the day resort Moreno is building on the island will be able to view the seahorse farm. Moreno said he expects an influx of visitors to the area because Carnival Cruise Line is building a $50 million terminal on nearby Roatán Island.

Traditional IRAs are limited to investments in stocks, bonds and mutual funds. Self-directed IRAs, on the other hand, are specialized accounts that allow their holders to invest in anything except for life insurance, collectibles and investments that would personally benefit them or close family members, as restricted by the IRS.

Real estate and businesses, among other things, are common investments within self-directed IRAs.

"As a general rule of thumb, the IRA is going to be prohibited from being invested with or in a way that benefits an individual that is [in] a close, personal relationship to that IRA holder," David Nilssen, CEO of Guidant Financial Group, a self-directed IRA facilitator, said. "For example, I can't buy a rental inside my self-directed IRA and rent it to my mother."

As millions of baby boomers approach retirement, pensions are on the wane and Social Security is poised to become unreliable. That leaves many people depending heavily on their retirement accounts to fund their retirements.

"As people live longer, you know, retire at 65, live to 85, that's 20 years they've got to provide for themselves," Tom W. Anderson, CEO and founder of PENSCO Trust Company, a self-directed IRA custodian, said. "No longer can you just park your money in a retirement account and expect to get by."

"People have got to start managing these retirement accounts, and I think the self-directed industry is a great way to do it," he said.

Read the original article to learn more options and strategies available to investors who wish to diversify through a Self-directed IRA.

Where Can I Look For Franchise?

LSigmanEsq — Sat, 16 Feb 2008 14:02:00 CST

Where Can I Look For A Franchise?

There are many good sources of information about franchise opportunities. For most people, the process that makes the most sense is to first make sure you understand the business model of franchising. After you’re clear on what franchising is all about, then you can try to identify industry segments that may be of interest to you. Finally, you can research individual companies to see which ones match best with what you are looking for in a franchised business opportunity.

There are many good reference works and periodicals you can use to understand franchising in general and business format franchising specifically. The best sources to rapidly access this information at no or very reasonable cost are:

Internet web sites
The public library
A good bookstore
A franchise consultant (click here for more information)

The best way to scan industry segments to find ones that potentially have interest for you is to refer to lists compiled and organized by others. These lists usually contain information on many companies segmented by industry. One of the best organized is the Entrepreneur Franchise 500 (January issue each year). Spend some time looking at the investment level requirements and thinking about what the pros and cons of that particular industry might be. Make a list of the ones that you are qualified to pursue financially. FranchiseILS.com can also match you with a consultant that offers a free service to people looking for franchise opportunities. The consultants we have worked with have helped thousands of people find the business that is right for them.

Franchise brokers or consultants are an excellent source of information and assistance. Typically most of these companies or individuals work at no cost to the franchisee; however, keep in mind that they don't work for free. Most are paid either a commission or a percentage of the royalty stream by the franchisor. A qualified and reputable consultant or broker will work with you to find a franchisee that will suit your means, interests, skills and background and not just endorse the franchise paying him or her the biggest commission. High pressure tactics should be an indication that you are not working with the right broker or consultant.

Another excellent way to find a franchise is to attend an expo. There are nationally and regionally held expos throughout the year. A quick on-line search will turn up the expos coming to your area. Keep in mind, however, that not every franchise will be represented at these expos, and those in attendance are hoping to gain new franchisees, so don't give in to any high pressure presentations.

What Is a UFOC?

LSigmanEsq — Sat, 16 Feb 2008 13:54:10 CST

Prior to the 60s, there was little franchising momentum in the US. Howard Johnson's is probably the earliest franchise model, though not technically a franchise. However after the success of Howard Johnson, many other business, such as McDonald’s, began to franchise their concepts and the franchise industry expanded rapidly. This rapid growth attracted some less than reputable businesspeople, and many unwary investors and would-be-franchisees were sucked into very savvy scams, losing a great deal of money.

In light of the surge or con-asrtists and scammers using the franchise model as a fromt, the Federal Trade Commission’s FTC Rule was created and became effective1979. This rule required all franchisors submit to all potential franchisees a document called the Uniform Franchise Offering Circular (UFOC). The purpose of the FTC Rule (manifested in the UFOC) was to provide enough information so the prospective franchisee could make an informed decision about purchasing the franchise. A franchisor’s UFOC must be updated on an annual basis, or sooner if certain conditions are met.

The UFOC serves as a protection for the individual against making a decision based on information not supported by fact. The original FTC Rule required franchisors to provide the UFOC to the prospective franchisee at the earlier of the first personal meeting or 10 business days before the franchisee signs an agreement or pays any money. It also provided that the franchise agreement must be given to the prospective franchisee at least five business days before the franchisee signs any agreement or pays any money.

In July of 2007, a new FTC rule became effective, with the requirement that all franchisor's be complaint by July 2008. The new rule adopted the form and format already widely used by franchisors, and clarified the the timing of how early a prospective franchisee could sign the agreement. Under this new rule, a franchisor must provide a potential franchisee with the UFOC before the franchisee signs the agreement or makes any payment to the franchisor. Additionally, if the franchisor unilaterally makes any changes to the franchise agreement (this excludes changes made as a result of any negotiaion between the franchisor and franchisee) the franchisee must have at least 7 calendar days to reveiw the new agreement before signing it.

There are 23 items that every UFOC must contain; below, is a list of some of those items:

Business Experience, Litigation & Bankruptcy. The franchisor must provide you with a history of their past activities, especially as it may relate to potentially negative information. This information must be provided not only for the company itself but also for the officers and directors. The information includes factors like the business experience of the company and its principles and any fairly recent litigation or bankruptcy history for either.
Financial Factors. The company must disclose to you the relevant financial terms of the franchise opportunity. This would include the initial franchise fees, other startup costs, and an investment range estimate for your total cost to get into the business. The UFOC must also disclose any other fees, such as the royalty, marketing and renewal fees that the franchisee will have to pay throughout the life of their franchise.
Obligations and Restrictions. The company must disclose the obligations of both you and the company under the terms of the franchise agreement. They must also spell out any mandated restrictions that you will operate under in terms of your purchasing options and behavior as a franchisee.
Other Considerations. The company must also disclose relevant information on a number of other factors such as financing programs, territory, trademarks and patents, renewal or transfer provisions and public figures.
Exhibits. The company must also provide other data including audited (for all but very new franchises) financial statements, current franchisee lists with contact information, contracts and receipts.
Earnings Claims. FTC rules leave it up to the franchisor whether they want to supply information about the earnings that can be achieved in their business. If a franchisor does want to provide earnings claims, they must follow stringent rules on how this information can be given to a prospective franchisee. It is essential for the franchisor to make sure that the data provided is as accurate and representative as possible and they must also clearly label any assumptions or qualifications on the data provided. As a result, earnings claims can take a variety of angles and approaches, so reviewing the background information is vital. Many franchisors opt not to make any earnings claims because of the stringent requirements for such a disclosure.

Individual State Requirements
In addition to the laws that mandate disclosure, there are also some states that have passed specific laws to further protect franchisees in that state. These laws may add additional disclosures or rules about franchise agreement terms. As an example of this, there are a number of states that require that the legal venue for any dispute must be in their state rather than in the state where the franchise company is located. These types of additional requirements vary from state to state but any that are appropriate to your situation in your state should be disclosed in the UFOC you receive.

The following "filing states" currently have additional requirements above and beyond the requirements of the FTC:

California
Hawaii
Illinois
Indiana
Maryland
Michigan
Minnesota
New York
North Dakota
Rhode Island
South Dakota
Virginia
Washington
Wisconsin

Your responsibility
The most important point to remember regarding the UFOC is that you need to read and understand the material that the franchisor is disclosing to you. The FTC has a requirement that these documents must be presented in understandable English so that the material should be clear. It won’t make any difference, however, if you don’t carefully review the material.

Make sure you take the time to study the information supplied to you and you’ll have a much better chance of making sure that these legal requirements actually serve their purpose of protecting or safeguarding your interests.

Notes / Loans

PepperRodgers — Tue, 15 Jan 2008 21:43:06 CST

A note is an extension of credit from one or more individuals or entities (lender(s)) to another individual(s)or entity(ies)(borrowers). Such notes can be either secured or unsecured. If they are secured, it means that in the event the borrower defaults on the loan from the lender, the borrower agrees to supply the lender with the “collateral” or “security” in lieu of the principal balance of the loan. Contribute content, read articles and comment on information about using your money for private financing on real estate, business, franchising and much more!

I have a few notes available with yields of 12%-15% www.betteryields.net

Lease Options Explained

PepperRodgers — Tue, 15 Jan 2008 21:39:03 CST

Realize huge profits, through real estate, with your IRA.

During the last 35 years, real estate has proven to be one of the safest and most consistent investments available. Most investors however, are unaware that it is permissible to hold real estate inside of a retirement plan. An IRA has had the ability to hold real estate since it was created in 1974. The stock market’s poor performance over the last five years has led more and more people to look at non-traditional investments, such as real estate, for their retirement accounts.

Real estate is a phenomenal investment because there are so many strategies that can be implemented to make money. Regardless of the size of the account, real estate can be very lucrative with the right strategy. A wise attorney once said, “control everything, but own nothing.” That may not have been directed solely at real estate, as it has many benefits of ownership; however, for the IRA holder who has $5,000 - $25,000, control could be the ticket to financial independence.

With Guidant Financial Group’s Auriga, an investor can maximize one of the most powerful real estate strategies around – the lease option. There are many variations to this strategy, but when discussing investment opportunities to an IRA investor with less than $25,000, the sub-lease option strategy is the most attractive investment alternative.

In order to understand how lease options, work there are a couple of basic definitions that should be addressed:

OPTION: In real estate, an option gives the right, not the obligation, to buy a specific property, at a specific price, on or before a specific date.

LEASE: In real estate, a lease gives a tenant (or renter) the exclusive use of a property for a specific period of time.

A brief example of how this works would be as follows:

A homeowner puts her home up for sale because she is moving to another part of the country. The owner is asking $150,000 for this property. The home sits on the market for months until finally one day the owner is approached by a couple presenting a unique offer. The offer is $3,500 for the option to buy the home from her for the full price of $150,000 within the next 24 months. In the meantime the couple will rent the home from her, covering her mortgage plus a little cash flow until the property is finally purchased outright by the couple.

The seller needs to move and the home, which has sat on the market for months, is costing her money every month. The homeowner decides to accept this offer for a couple of reasons:

The tenant/buyers are coming in with $3,500 plus first and last months rent at $1,000 per month. Their $5,500 is significantly more than a traditional tenant comes in with, adding financial protection for the seller in this transaction.
The seller would get top dollar for the home if the option is exercised because she will receive the full $150,000 (which she expected to negotiate) plus the $3,500 option payment AND does not have to pay a real estate commission on the sale. Up front this saves, and ultimately makes, her THOUSANDS more!
The tenants’ ultimate goal is to buy the home. They have a vested interest in the property from their option fee. This means that they are more likely to take excellent care of the property.
If the tenant/buyers cannot exercise their option to purchase, the seller gets to keep the equity increase over the two years during the lease option term while the tenants occupy the home. This is due to appreciation. She also gets to keep the option payment and enjoy the tax benefits of ownership during that time period. She can then sell the property for a greater gain OR offer to lease option it to another prospective tenant/buyer.
For an IRA that is sizable enough to buy a home in its entirety, this is a tremendous way for the IRA to protect itself from the hazards of rental real estate. There are many benefits to holding lease options inside your IRA. Today, however, we are going to focus on sub-lease options. Like tax liens, sub-lease options offer a wonderful alternative to the stock market for investors with smaller retirement accounts.

A sub-lease allows an investor or IRA to obtain the option, or right to buy a property, and then rent or lease it to another party. Many sellers are willing to offer this type of sub-lease because they need to move quickly or are financially burdened. Bankruptcies are at an all-time high and many people have found themselves in a financial trap. Unfortunately, many of these individuals fall behind on their mortgages. Sub-lease real estate options are a way that you can not only help rescue a person from near financial ruin, but also make a profit. In this way, sub-lease options can create win-win situations for the seller and IRA investor.

Let’s assume that reading through the local discount newspaper you come across an advertisement that says, “NEED TO SELL TO AVOID FORECLOSURE. BRING ALL OFFERS!” In placing a call to this seemingly motivated seller you discover that this single parent lost his job and is on the verge of losing his home. Above all he does not want to go into foreclosure, which would complicate buying a home in the future. This home is nestled in one of the area’s premier family communities and boasts many great features like a remodeled kitchen, large master bedroom and enormous backyard.

This seller is willing to sell for what he owes on the property. Four years prior, he purchased the home for $148,000 which he paid down to $140,000 during that time period. The payments on the property are $1,050 per month and he is behind $3,450 (three months’ rent and $300 in late fees). Essentially, he needs the mortgage balance ($140,000), his back payments ($3450) and excise tax for the transfer of title ($2,520 at 1.8%) paid in order to get out from under the overwhelming debt.

In the last four years, homes in that area have appreciated at a rate of 6% per year. This means that the home he originally purchased for $148,000 is now worth approximately $185,000. Upon a quick walk through the home, you decide to offer this man $148,000 for the home. Your offer to him is to make up his back payments of $3,450 and have your IRA rent the home from him for the next 5 years. Within the five years, you will cash him out. The back payments you have made and the mortgage reduction over the lease period, will net him over $5,000 when your IRA purchases the home. The key is, he will not get paid until your IRA does AND he has to sign over a deed of trust to the property to protect your investment. It is also crucial that you be given the ability to sub-lease the property.

This gentleman has few options and realizes this is the best case scenario for him and his family. He will get caught up on the mortgage, the payments will be made every month, and he will be able to downsize to a more affordable home or apartment. This makes sense to him, and he accepts your offer.

Shortly after having the deed signed over to you and recording it with the county, you place the following advertisement in the newspaper: “Lease with the option to purchase. No bank financing required. Bad credit? OK!” The advertisement results in many calls. You are able to find a young family that you think would be perfect fit for the home. The father of the family is self-employed. Although business is going well, he cannot get an attractive loan because he has less than two years of self-employment history.

The home for which you are offering the option to purchase is now worth $185,000. You are willing to sell that home, within the next two years, for the current market value! For that right (option), you are charging $5,000 which you will credit toward the purchase of the home should the tenant/buyers exercise their option. You are also asking $1,250 per month for the lease of the home. The buyers are able to come up with the $5,000 plus first and last months’ rent. Your IRA has an immediate profit of $1,550 because you paid $3,450 to catch up the back payment for the previous owner and you took a $5,000 non-refundable option payment. You realize an instantaneous 44%, cash on cash return. It gets better yet! The tenant is going to pay $1,200 per month and you only owe $1,050 per month. That is a positive cash flow of $150 that your IRA realizes each and every month. If the tenant/buyers exercise their option to purchase, then the IRA would realize the net difference between the purchase price from the original seller at $148,000 and the sales price after the option credit of $180,000.

So why are so many investors enthusiastic about these sort of hypothetical investments? If the tenant/buyer did end up purchasing the property, your IRA would have profited $37,150 on its original $3,450 investment or 1008% in just two years… tax deferred! What if they do not exercise their right to buy? Then you can do it again! You keep the option payment of $5,000 and the monthly cash flow of $3,600 ($150 over 24 months), and you can acquire another lease option tenant! You negotiated a five- year option and then you sold a two-year. That means you have three years left on your original deal. Also, if they don’t exercise the option is it likely the home has appreciated another 6% over those two years? Probably! So the next time your IRA sells the option on that home, the new purchase price could be adjusted to $205,000.

What if you have a ROTH IRA? With a ROTH IRA all of those gains would be TAX FREE! This can be done using your IRA, SIMPLE, ROTH, SEP or even a Coverdell Educational Savings Account.

The ROTH is an amazing investment vehicle because you can build unlimited equity, cash and income within the account and never pay any taxes on the growth! You are only limited in how much you can contribute each year, not in how much your investments can profit.

Having a Guidant Auriga allows you to take full advantage of this strategy. By having checkbook control and no transactional fees, you can make a deal happen when it arises without having to gain permission from the custodian. You can do this as many times as you like – with no transactional fees!

This example was slightly oversimplified to bring awareness to this unique and powerful investment strategy.

Great write up--great info--- I have done several Lease -options on both sides of the fence. I normally get 10k down but have recieved as much as 25k. Almost all the people walk away from thier money due to a life situation. I find it amazing.

Residential Real Estate

PepperRodgers — Tue, 15 Jan 2008 21:24:07 CST

Residential real estate is one of the most common and lucrative investment amongst non-traditional investors. Real estate offers a variety of benefits that include, but are not limited to:

Cash Flow
Appreciation
Tax Deductions

Are you an active residential real estate investor or would you like to be?

This is where residential real estate investors can share information, articles, and tips about investing in residential real estate.

Learn about lease options, multi-family units, rentals and much more.

Read, respond and contribute!

I am a builder and looking to build multi units in the next 3 emerging and prosperous markets. Learn more at www.betteryields.net. Great returns as ground floor investors on new built structures. With higher prices on residentail structures, the multi unit and second home in the mountains are two great investments!

Real Estate Development

PepperRodgers — Tue, 15 Jan 2008 21:20:15 CST

Real estate development can be very exciting, creative, and profitable. An experienced developer may have the opportunity to borrow all of the development costs. However, there are real risks associated with real estate development because risks and returns are directly related, and expected high returns usually indicate high risks. Some common subdivision development risks are cost overruns, bad weather, too few sales per month, lower prices, higher marketing costs, and labor strikes. Larger developments that require large initial development costs and longer absorption periods are considerably more risky than smaller developments. The trick is to sell lots much faster than interest accrues on the development mortgage loan and before economic conditions change.

If you are a real estate developer, please share your experiences.

If you are a reader, please share whether this information is useful to you.

As a developer I am pleased with most of the out come on my projects. However most people do not understand how challaging it is to accomplish such a task. The logistics are made difficult by economy, bankers, local county officials and employees. Thank goodness the reurns are healthy most of the time. We always are looking for investors in these projects either ground floor or pre-development lots sales. Great returns either way! www.betteryields.net