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Dc Fawcett Real Estate – How to perform CD Laddering?

Introduction

How to perform CD Laddering?

CD (certificate of deposit) laddering has not lost its importance in the real estate market. It has few significant advantages. We witnessed a huge dip in the rate of CD’s over the years which have made the investors to look out for other investing options. Dc Fawcett Real estate  advises the investors to keep investing on CD’s and drastic decline in the prices will not have an immediate effect in your investment. One of the traditional methods of saving money which has not lost its value is CD laddering; let’s discuss the benefits in the article.

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Dc Fawcett – How to use CD’s?

CD’s are also known as term shares or term certificates offered by bank or credit unions. The money is locked for a particular timeframe assigned by the investor. The amount can be renewed once it matures for the ongoing rate of interest. Early withdrawals can be performed with respect to forfeiture.  Longer the term period, better the rate of interest. The time period differs from 3 months to 5 years. One year offers 1 percent APY (annual percentage yield) and 5 year term offers 3 percent insured by FDIC. The interest is compounded monthly or quarterly when investors choose longer term.

Benefits of a CD ladder

The investor is having full liberty to choose the time period which varies from 18 months to 30 months. The investors yield returns according to the time period of the investment. If the time period is more, the returns will be considerably high.  The amount to be invested is divided into equal parts with different maturity dates. The interest rate is decreased and investor‘s re-investment risks is declined.

The principal amount and interest are the most important factors of this strategy.  This technique will help the investors to get a steady cash flow because of the different maturity dates. Laddering doesn’t lie in any particular category, it is very liquid when you opt for short –term and illiquid if you opt for long term-CD. This method helps the investor to do frequent re-investment, whenever the CD matures; he /she can re-invest for another term.

This technique assures there would be no fraudulent or suspicious activity records, it is almost scam free. Real estate investor’s earn potential returns and it can be maximized depending on the frequency of the CD. It offers more benefits than a money market account; the insured nature of the CD ladder makes every investor feel secure. There is no restriction in frequency and quantity of a CD ladder, though you need to qualify for a minimum deposit. The risk can be prevented by choosing the ladder length appropriately. Assign different maturity dates so whenever rates decline, there won’t be huge impact.

The short ladders are more beneficial than long CD ladders. Longer ladders are considered to be aggressive because longer maturities have greater risk when the interest rates rise.  From this review, we find that CD laddering is one of the safest ways to invest money for a long term.

Conclusion

DC Fawcett has thrown light on how to use CD’s and its benefits in his previous articles, you can find them in DC Fawcett virtual real estate investing club.  

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Dc Fawcett Reviews – The real estate equation between the real estate investor and the financial planner

Introduction

The real estate equation between the real estate investor and the financial planner

Why a real estate investor needs a financial planner?

The new investors cannot manage funds on their own; they need a financial planner to help them out. Money is everything, it is considered to be a decision king because an investor is happy if he makes profit out of an investment and he is depressed when he faces a financial crisis.We have already seen how to hire a financial adviser, you can check it out in DC Fawcett Reviews on Virtual real estate investing club.

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DC Fawcett reviews is about when and why you need a financial adviser.

  • The adviser’s opinions play a major role whenever you are involved in a home sale or buying process.

  • For newly married couples, you may not have an idea how to start a joint account in a bank or how to start a new account, nomination filing and tax benefits. The rate of interest is one of the major factors to be considered and the adviser will help in selecting the best bank for you.

  • For first-time home-buyers and sellers, you are absolutely clueless about the process. The adviser will assist you throughout the process and you are requested to follow his guidelines strictly. Hire a reputed adviser to prevent from

  • Entrepreneurs or freelancers who switch over from a regular job and take up real estate as their career can seek the help of an adviser.

  • The adviser can solve any disputes regarding tax for whomsoever it may concern.

  • To start a new business, you need to follow certain guidelines. Commercial and retail real estate guidelines differ from residential property guidelines. When you raise your first child, there may be lots of doubts and you need to start allocating funds for their education as well as for your retirement. These can be planned systematically with the help of financial planner.

  • The advisers will send a periodic report after monitoring your activities regularly and gives his review on how funds are to be managed efficiently, when taxes are to be paid. He reminds you with all the deadlines for paying taxes and debts, so that you improve your credit score.

  • The planners help you in diversifying the portfolio and also suggest how the portfolio can be improved further. The investment policy differs from each organization. Learn the return on investment policy of every firm.

  • They help you in setting financial goals and how to achieve them early.

  • For investors belonging to high income community, the tax amount is generally exorbitantly high. You need to know how much tax should be paid and when it should be paid. Financial planners systematically calculate and give you the result.

  • They help you selecting the appropriate mortgage plan to suit your financial status and prevent you from getting foreclosure.

  • Self-employed people will have different queries; it can be answered as well by the financial advisers. Planners can help you out in how to get ownership and title insurance legally.

  • High-net-worth investors have a different set of problems and unique set of financial issues. They need to manage enormous amount of funds and enumerable accounts. Planners will help in sorting out them and provide guidance on tax-paying strategies.

  • There can be issues while availing home loans and student loans which differ from each person. Those doubts can be cleared by the advisers.

  • These planners will help the investors in setting the right priorities and mention the expenses to be curtailed in case you are having a low credit.

 Real estate connect :

You need to choose the right property, appropriate mortgage plan that suits your financial needs. You need to know the saving strategies and adviser can pour his ideas on the same. You need an instant help when you are stuck on what to choose, like a condo or a town home. You need to know which property will appreciate in time and when to invest. These queries can be solved by financial advisers and planners.

What is the difference between financial planner and financial adviser?

An adviser just gives his thoughts when you approach him for any issue. An adviser is not a broker or an agent, so check out what are the attributes to hire an adviser in the corresponding article in virtual real estate investing club owned by DC Fawcett. The planners are certified with CFP (Certified financial planner) and certified accountants helps the investors in solving tax related issues.

How much an adviser costs?

The adviser usually charges on hourly basis, it varies from 150 to 200 dollars per hour. It depends on the adviser’s experience as well. The more the adviser is experienced, the more he charges. CFP‘s work is based on the commission and they are ought to be paid for specific products like insurance, annuity. They are not recommended for most of the times as they are expensive.

Dc Fawcett complaints about the fee-only advisers who don’t have any regulation on their fee and just charges based on the time spent on managing your finances.

There are fraudsters among the planners, so investigate properly to avoid scam. Scammers, who pretend as planners charge a heavy fee, act like scrutinizing your documents; once they obtain the necessary information they leave the place immediately. The first question they ask is about your income rather than your problem, so the money minded people must be avoided and mostly they will not be a reputed planner. To check whether he is reliable or not, enquire how the commission is charged i.e. on what basis and then hire.

A good financial planner will lessen your burden and help you in taking better financial decisions. Stay peaceful and make right choices when you purchase or sell your property.

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Dc Fawcett Real Estate – How credit bureaus support lenders?

Introduction

How credit bureaus support lenders?

Dc Fawcett Real Estate talks about how credit bureaus work and how the information serves the lenders and how fraudsters misuse the piece of information in this article.

As we know, credit bureaus are powerhouse of information about millions of investors which is sold to the lenders and interested borrowers. The lenders generally look the investor’s borrowing history before lending them loan; it is to check whether the investor has made any payment default in the past. The credit bureaus help out in providing the information. The credit score is the outcome of your borrowing history. The detailed description of the raw data forms the credit report.  They are not concerned about the loan approval. The information is gathered from various sources but they make sure it is authentic.

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The investors who have borrowed in the past would be quite popular in the credit bureaus as the lenders would have passed the information about the loan. Try to work with such lenders so that you are familiar in credit bureaus and applying for a loan will be easier.

Credit reporting system is managed by

  • Consumers
  • credit bureaus
  • financial companies

Personal information is the only way to distinguish the different investors; it is also one of the ways to stop identity theft scam.  The lenders will send e-mails if they are any attractive offers to these investors and make them as prospective buyers.

The investor’s name, address, Social Security Number, date of birth, residential address, employment details of the investor (it will have a history which comprises of all the information where you are working and where you have worked in the past as well). Scammers misuse this information by pretending themselves as lenders and get the details from credit bureaus.

The public records are collected through the credit reporting companies and judgement is based on the investor’s financial overview. It checks whether investor have been through any situations like bankruptcy, tax liens, foreclosure. They also record how many people have enquired about your credit score.

Investors can browse DC Fawcett Virtual real estate investing club to learn some strategies on how to prevent from   identity theft scam.

The most important information is trade lines which are otherwise called as loan information. An elaborate description of the loan is obtained like the type of the loan, name of the creditor, date and time, balance amount, outstanding dues, deadlines.

How the credit score is calculated?

Investor’s payment history, the debt paid and unpaid, how long credit accounts are maintained, what are the other accounts managed by him, inquiries.

What do the credit bureaus track but will not reveal?

From the lender’s perspective, those who change their jobs and residence often are due to payment defaults and states that they are economically unstable. If the investor doesn’t want to reveal the loan details, the lender restrains from informing the credit bureau.

Thus credit bureaus help the lenders in the above mentioned way and every investor should know the importance of credit report.

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Dc Fawcett Reviews – Housing loans and special privileges for disabled investors

Introduction

Home ownership is a dream for every investor and the purchasing power differs from each person depending on the financial status. There is a community of real estate investors with disabilities who are offered certain privileges; DC Fawcett has written a review about how to get home ownership if the person is either mentally or physically challenged. In this article, you will find the financing strategies provided to disabled investors.

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The federal government offers certain special schemes and loans for these people to make their home ownership dream come true.

  • There is a rule that landlords cannot deny selling or renting their homes to disabled people nor set special rules and regulations. All must be treated equally like a regular tenant. They cannot disqualify them as non-potential buyer.

  • People with disabilities may request changes in policies, practices, and services so they are able to access, use, and enjoy equal access to housing.

  • Landlords and housing providers should fulfill the requests of the buyers at all stages of the housing process and they have all the rights to ask for structural modifications that will provide them comfort.

  • They can depend upon the Office of Fair Housing and Equal Opportunity (FHEO), which was started to protect the rights of all home buyers and individuals.

  • The Equal Credit Opportunity Act and Consumer Credit Protection Act is to make sure that financial institutions offer money to all the investors irrespective of sex and no discrimination is made based on person’s abilities.

Financing for disabled

The money is borrowed from a mortgage lender, bank, or credit union after an initial down payment is made by the borrower to purchase a property.

  • The mortgage lender should not restrain him from lending money if the borrower is disabled.

  • There are governing bodies who have framed guidelines that protect the rights of the disabled people; in case the lender denies in providing mortgage; the investor can seek the court and claim his rights.

Programs for Home Buyers with Disabilities

  • Homeownership Voucher Program

HUD offers money for disabled investors and ensures that their monthly payments are made on time as well as mortgage loans are sanctioned without any problem. The HUD counselors help out in this program and make necessary arrangements to fulfill the requests of the investor.

  • Supplemental Security Income

The Social Security Administration started this program to help old people who are above 65 years old and disabled people. The maximum term for the ownership is 10 years; they take care of all the basic needs of the investor.

  • Federal Programs

Special grants are provided exclusively for veterans with disabilities. This program has been framed based on the income of the investor.

  • The USDA offers financial assistance for elderly, disabled, and low-income community investors residing in multi-unit apartments. This program ensures that these individuals can make their rent payments on time.

  • FHA loans are provided by the federal government which is preferable by the investors as they are scam

To know more about home ownership, housing loan schemes and other privileges for disabled people, check out the articles in virtual real estate investing club written by DC Fawcett who has been a guiding force for all the investors.

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Dc Fawcett Real Estate – Why brick homes are sold faster?

Introduction :

Why brick homes are sold faster?

Brick is the most extensively used exterior material for constructing a property, the brick homes is retaining its popularity till date.

The article Dc Fawcett describes about the specialty of brick homes, drawbacks and how it influences in the real estate.

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Dc Fawcett Real Estate – Qualities of brick homes:

Low maintenance is sufficient; these homes are strong and durable. They are made out of clay and shale, thus it is eco friendly in nature. Due to its non-combustible nature, these homes are fire-proof and heat-resistant. It is also known for its withstanding power during heavy and violent storms. Many homes are affected by termites and pests whereas brick homes are termite resistant. The coolness is maintained during summer and warmness during winter. It is a dual-purpose material it can be used in landscaping, apart from using it as exterior material. It acts as a barrier and stabilizes the internal temperature. Pressure washers are used to wash the building and it gives a brand new-look.  Patterns like herringbone, basket weave are commonly used for designing the brick wall.

Dc Fawcett complaints that investors get a low home insurance coverage as bricks home exteriors have several advantages. On the other hand, brick is an expensive exterior material when compared to wood. The color of the brick has few limitations and it depends on the composition and temperature.  Painting bricks is a tedious task so that option cannot be considered. To maintain the integrity of the structure, repointing is done where mortar has to be fixed properly. Due to its expensive nature, even home repairs turn out costly. Moreover, they are heavier than wooden homes due to high density of the bricks.  These homes are not suitable for cities having high temperature because it creates a cool atmosphere by holding moisture which may affect the health of the people. Allergies may occur and quality of the air is getting spoilt. Bricks are porous; molds, cracks occurs which in turn creates a bad outlook to the exterior of the building. It also causes few issues pertaining to drainage system.

Virtual wholesaling is an emerging trend in the market as it has made the whole process of wholesaling easier and quick, investors prefer this method as they can sit at home and work during the free time apart from 9 to 5 job. It is a better way to avoid scam as you don’t meet anyone during the transaction.

How brick homes influence real estate?

  • Comparatively, it has higher resale value than timber homes.
  • Generally investors prefer homes made with brick as it is sold easily.
  • Brickwork adds charm and aesthetic look to the entire building, if exteriors are un-plastered the brickwork is exposed. This creates a visually appealing effect when buyers enter the home. To improve the curb appeal, brick work is used in exterior areas because it gives a beautiful effect when combined with garden in the backyard.

  • High selling price is guaranteed
  • Builders prefer brick first than any other exterior material
  • Condos and town homes are constructed close to each other as owners share their unit. To ensure sound proof feature, bricks can be used.

Conclusion :

DC Fawcett virtual real estate investing club  helps the aspiring investors to get a vast knowledge about different types of  real estate marketing strategies.