Q. My score is a 604, I'm 21. I want to start a business but I dont have any thing to put up as collateral. I thought about buying a house for cheap and rent it out until my credit score raises. Is this a great idea? buy the way i rent an apartment.
Yes I have extra income to invest in a property. I have already considered the risks.
Yes I have extra income to invest in a property. I have already considered the risks.
A. Remember that a rental property requires insurance, maintenance and repair, taxes, tenant screening and management. Do you expect to have enough cash flow from the rent to cover all that plus the mortgage?
What are the advantages and disadvantages of creating a business for a small time landlord.?
Q. I'm just getting started with rental property (I have had one for a year and am looking at buying another one soon). At what point is it a good idea to make it a business and what are the reasons for making it officially a business?
I was talking about getting it chartered as a business with the government. With business loans instead of regular mortgages etc.
I was talking about getting it chartered as a business with the government. With business loans instead of regular mortgages etc.
A. it helps protect your money -personal- you should inc or llc as soon as possible to protect yourself in case something happens and you are sued by a tenant.or more likely a guest. I managed 48 apts and 12 or so houses and have seen several people try to sue the owner ( they lost ) but the inc protected him from direct suits against him as for the loans You are not guaranting them the company is. So your personal income and property are not subject to seizure and sale if teh company defaults. Talk to a good atty about your states laws Also i would recommend the you hire yourself as a mgr and pay the taxes incl fica so it will be applied toward your retirement just in case 1 owner went under at the age of 60 and is in big trouble now hope that this helps
Will the new HARP guidelines allow me to refinance?
Q. I am current with my payments on my FHA mortgage, however it's a rental property. I rent an apartment as my "primary residence". Under the current guidelines, I'm not able to refinance since HARP excludes FHA loans that are rental properties and not "primary residences".
With his recent State of the Union address, the President announced upcoming expansions to HARP. Has anyone heard of the details of this expansion? Will it allow someone in my situation - an FHA loan used as a rental property, to refinance?
With his recent State of the Union address, the President announced upcoming expansions to HARP. Has anyone heard of the details of this expansion? Will it allow someone in my situation - an FHA loan used as a rental property, to refinance?
A. Oh, Obama is NOT going to expand anything to allow the small business owner to increase their profit.
The HARP programs are to help people keep their homes, not increase the profit we landlords make. Even as a landlord myself I would be opposed to using government resources for the purpose of increasing my net worth. Those resources are needed to help familes remain in their homes.
The HARP programs are to help people keep their homes, not increase the profit we landlords make. Even as a landlord myself I would be opposed to using government resources for the purpose of increasing my net worth. Those resources are needed to help familes remain in their homes.
How to begin any medium sized business along with a partner? What are the pre-requirements?
Q. I wish to start a small to medium sized business. I want to know what are the pre-requirements? How should I go about? Which would be the best business in which our physical presence is not needed all the time and returns are high with less investments. My likings are some thing to start in fast food business. What cab be good business opportunities?
A. First of all, sit down and write out a business plan. State what your overall goals are, then break it down into mini goals. Have a date assigned to each mini goal; this si when you want that goal accomplished. Try and look beyond the first year of business. Also include in your business plan the startup costs (renting equipment, office space, etc), taking into account the fact that regardless of if you made money or not that week, you still have to pay your employees.
Now, figure out how this project will be funded. If it's a bank loan, what's the collateral? What're the monthly payments?
Apply for a tax ID from the state for the business. You must do this to avoid being charged for tax evasion. Also set up a bank account exclusively for the business; DO NOT have the business money deposited and withdrawn from your own personal account.
As for fast food ... it's not as easy as you think. If you start your own store, you have to have your own recipes, own prices, buy tons of equipment on your own, and advertise heavily. It can take several months for an unknown store or restaurant to gain enough popularity to start making a profit. If you choose to open a franchise, you have to apply for a license through that franchise. They expect so much money in a bank account and vested in property before they will approve you. You will have to pay some up front, and the amount paid may or may not help pay for equipment or rental locations. Some franchises are better than others. You really have to go to either the website or an existing store to ask. Also, fast food managers easily work 50, 60 hours a week. If everyone calls in sick, guess who has to work the cash register and ovens?
Now, figure out how this project will be funded. If it's a bank loan, what's the collateral? What're the monthly payments?
Apply for a tax ID from the state for the business. You must do this to avoid being charged for tax evasion. Also set up a bank account exclusively for the business; DO NOT have the business money deposited and withdrawn from your own personal account.
As for fast food ... it's not as easy as you think. If you start your own store, you have to have your own recipes, own prices, buy tons of equipment on your own, and advertise heavily. It can take several months for an unknown store or restaurant to gain enough popularity to start making a profit. If you choose to open a franchise, you have to apply for a license through that franchise. They expect so much money in a bank account and vested in property before they will approve you. You will have to pay some up front, and the amount paid may or may not help pay for equipment or rental locations. Some franchises are better than others. You really have to go to either the website or an existing store to ask. Also, fast food managers easily work 50, 60 hours a week. If everyone calls in sick, guess who has to work the cash register and ovens?
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