Self-Directed IRA

Become Your Own Bank

The Self-Directed IRA (SDIRA) puts you in control of your qualified accounts such as IRA’s, 401(k)’s,  403(b)’s, Keogh’s, SEP’s and more. With a SDIRA you have the flexibility to invest in real estate, mortgages, businesses, franchises, tax liens etc.  This gives you, not Wall Street, discretionary control of investment options, whether traditional or non-traditional. A Self-Directed IRA is a retirement plan that allows the account owner to direct investment decisions on behalf of the retirement plan. Basically, an SDIRA is a unique hybrid tool that utilizes a self-directed IRA custodian and a specialized legal structure. With an SDIRA you will have a checkbook, a debit card and all the tools that come along with a business checking account.

Asset-Based Lending

A New Revitalization of an Old Lending Practice

In the simplest meaning, asset-based lending is any kind of lending secured by an asset. This means if the loan is not repaid, the asset is taken. A home mortgage is an example of an asset-backed loan. More commonly however, the phrase is used to describe lending to business and large corporations using assets not normally used in other loans. Typically, these loans are tied to inventory, accounts receivable, machinery and equipment, but they can also include exotic things like the value of pharmacy script files, a trademark, or whole assets of intellectual property. For example, Midway Games took out a line of credit secured by its Mortal Kombat game. If it fails to repay, the bank then owns the  franchise and can sell the rights to it.

Check for Theft

Identity Theft

As your post-holiday credit card statements arrive in the mail, you´ll probably think about what you spent. But have you thought about how much of your personal and financial information was exposed? Sounds like the perfect time to check your Credit Report!

Identity theft

In the past you had to be careful of the carbons when they “swiped” your credit card. Today credit thieves have a whole new high tech and low tech bag of tricks. The only way to make sure you’re safe is to take precautions and regularly check your credit report for inaccuracies, you know, the key changes on your report that could either indicate identity theft or a reporting error.

Payday Loan Consolidation

Guest Speaker Angela Sanders

Earlier this month we posted an article about Payday Loans, and the possible pitfalls connected to this institution. This post was evidently compelling enough for a reader to ask to be a guest writer and post her own story. The following is from Angela Sanders, who writes a Blog of her own called A Financial Journal. We are always excited in bringing you the very best in information and calls to action on this blog. Here is Miss Angela…

Is it possible to consolidate your debts?

“The consumers take out payday loan to manage their emergency expenses at the middle of the month. When you apply for payday loan you are not required credit check so the interest on this loan is comparatively higher than other loan programs. Make sure that you pay off the owed amount on scheduled date to avoid the accruing interest on the principal balance.”

Your Children and Credit

Educate Your Children about Money and Credit

Parents, start building your children’s credit early – and do it well. Build credit early for your children – even before college starts, if they plan to take out student loans. Sign over an account that they must pay on time each month. Get a credit card with a low limit, and a bank account that you help them manage monthly. Avoid opening several charge cards at once in their name – not only will they be hard to repay, but having new accounts when they have a short credit history will cause their credit rating to drop. Encourage them to get a part-time job.

Online Loan Comparisons

Be careful when using Online Loan Comparisons

Be careful of online loan rate comparisons, timing is everything. Online loan rate quotes are easy to get – type in some personal information and you can get a quote on a car loan, personal loan, student loan, or mortgage in seconds. This is free and convenient, leading many people to compare several companies at once in order to make sure that they get the best deal possible.

Inquiries

Credit Card Piggybacking

Credit Card Piggybacking can raise your scores

Credit card “piggybacking” isn’t a new practice. For years, parents have done it to help their children get a jump start on their credit. However, it recently came under scrutiny because shady credit repair companies and unscrupulous consumers used the practice to artificially boost bad credit scores.

What is Credit Card Piggybacking? Credit card piggybacking is much like the childhood game of being carried around on someone else’s back; but instead, you’re “carried” on someone else’s credit card account. Once you’re added as either a joint card holder or  an authorized user to a credit card account, the entire credit history typically appears on your credit report and included in your credit score.

Pay Day Loans

Avoid Payday Loan Scams

Payday Loan Cycle

As the Thanksgiving and Christmas Season looms just over the horizon, having available money for holiday shopping swings into the forefront of our thoughts. As enticing as it may be, you should avoid payday loans except as an absolute last resort. Payday loans are also called “cash advance loans” and they are small, short-term loans that carry very high interest rates. Some companies have even begun to advertise them as “loans to help you repair your credit”, but this is very misleading. Some companies suggest that these loans can help you pay off your bills and so establish good credit, but if you cannot afford to pay your payday loans back on time, you have to “roll-over” or extend the loan – often at huge expense and interest. Many people get into a “payday loan cycle”, whereby much of their monthly paycheck goes towards paying off their ever-growing payday loans.

Holiday Recipe

Darrell’s Key Lime Pie

Key Lime Pie

That time of the season is rapidly approaching. So you have company coming over and need something quick, easy and delicious for dessert.  Well here it is…Darrell’s Key Lime Pie.  First heat your oven to 350 degrees.  In a mixing bowl mix at low speed (for 2-3 minutes) one can of sweetened condensed milk, 1/2 cup key lime juice and four egg yolks.  Pour the mixture into a pre-made graham cracker pie crust and bake for 15 minutes.  Cool for an hour.  THAT’S IT !!!  This recipe is so simple and easy.  I like to top it with real whipped cream, and I highly suggest pairing it with a nice high quality margarita…….

Best,

Darrell

Short Sale vs Foreclosure

Surviving A Short Sale

There are several differences between a “short mortgage” sale and a mortgage foreclosure and the effects between the two are substantial for all involved including the borrower or mortgage holder, the bank and a potential real estate agent.

For the borrower, the benefits of a short sale include not having the “foreclosure” designate on a credit report, eliminating
the opportunity for the lender to take legal action against the borrower for the difference between the negotiated “accepted”
price and the actual cost of the property (with a no recapture allotment) and zero tax implications as long as the short sale
is completed and closed before the year-end 2012.  Even if the short sale text is reported to the credit bureaus (which, again,
any wording or verbiage can be negotiated), a borrower will not have to wait the industry standard 24 months for another mortgage.
The obvious benefit for the lender is they no longer have to absorb the operating cost nor the liability of the property until the property is either auctioned off or becomes an REO (Real Estate Owned) property.  The lender knows the realized settlement net because of the accepted offer.