use loans wisely

How to Get a Bad Credit Loan Online and Use it Wisely

  • November 30, 2020

It is one thing that you get a $100-$1000 loan online, but it is another thing to know how you spend your money wisely. You have to know how to distinguish needs from wants and act accordingly. Discipline should be emphasized earnestly to have every penny worth the spending.

So, assuming you are given a chance to get approved for a bad credit loan online, how would you spend it prudently? It is very important to instill in your mind that the money is not given and you have to pay for it in the future. A careful planning and sensible decision in buying must be observed.

For people who wanted to make the most of their $1000 loan, investing in education should be on top of your list. The knowledge and skills you acquired on either formal or non-formal education will open doors for job opportunities after completion. If you have a full-time job, non-formal education such as online schooling or E-Learning will cater to your need for a flexible learning time.

They offer several courses you need to become competent in a certain field. Such competencies acquired will provide extra income for the services you offer. Supposing you completed a graphics designing course online for a month, you can immediately advertise your skill and offer services as a graphics designer for people who are in dire need of such skill. Thus, you can earn more than that of the money you spent on education. Furthermore, education can be yours permanently and no one could get it from you.

Another option is to purchase a valuable machine, tools, or equipment. You might wonder why these things are necessary. Well, lots of people are looking for these kinds of materials for their own purposes and are very much willing to spend their money on renting your stuff. A grass cutter, for example, can give you $15 – $20 for a day rental fee. You can also have your computer rented for every hour consumed. The cost will range up to $1 – $3 dollars not including an additional payment if your client will print several pages from your computer printer. Indeed, this equipment is worth every penny.

Consider buying a couple of business dress or suit for yourself. In case you do not know, many people are now engaged in real estate brokerage. This is a part-time job you need to consider seriously. As preparation, you have to read some rules and regulations about being a broker. Numerous books are very well-written for all people who are just beginners or experts in this field. With a high commission from every successful deal, you will see more reasons to buy decent business attires.

At the end of the day, indulge yourself with your loved one with a sumptuous dinner. Spending a little percentage of your bad credit loan can never pay for the memories and moments you will have for this event. Perhaps, you may opt to have this on top of your list just to give you enough encouragement and motivation to a successful first step of using the money properly.

paying back student loans

First Person: My Student Loan Repayment Strategy

  • May 5, 2020

For many students, taking out loans to pay for higher education is a necessity.

Even with the low interest rates and flexible repayment plans in place, most college students won’t see a zero balance on a student loan debt until they are almost 40 years old.

If you are serious about paying off your student loans much faster, then keep the following suggestions in mind.

Resist the Temptations

You graduate and get a job making $80,000 right out of the gate.

For you, there is no more living on a meager $15,000 a year, eating Ramen noodles and scrounging for the last bit of shampoo in the bottle.

Now, you can afford champagne and caviar. Immediately you go out and buy a new car, and possibly a house, right? That is the wrong answer.

Even though $15,000 a year is a paltry sum, requiring substantial personal sacrifice, remember that you still have that $120,000 student loan balance.

It’s time for a serious reality check. Do not give way to the seduction of what you want right here and right now. Make your student loan payment at the top of your priority list.

Live on Less

Give yourself an allowance of $25,000 to $30,000 a year, and live on that. Implementing this life allowance strategy frees up $50,000 of your salary, which is applied directly toward your student loan.

You hardly have to be a mathematician to figure out that paying $50,000 a year on a $120,000 balance, that the balance will be zeroed out in little more than 3 years. After that, the money you have leftover is your own.

There are no significant interest fees or payments to make, and you are free to start a life, buy a house, and buy a car, free of the burden of haunting student loan debt.

The Added Benefit

By training yourself to live on less in your early years while paying off a student loan, you are imparting an invaluable life lesson to yourself as well: the benefits of saving versus spending.

As the years progress, you will find that by living off of an allocation of less, allows you to save more, essentially giving you the opportunity to do more with your money.

Frugality is a lifestyle choice, and, when implemented young, one that adds up to a lifetime of happiness and prosperity. Build wealth, not riches.

business specialization

Business: Do Not Water Down Your Mission, Specializing Works

  • February 5, 2020

If Ray Krock, the founder of McDonald’s, had expanded his fast-food concept to serve pie, and meatloaf, fish sandwiches, soup, etc., he would have been a dinner; serving a broad-based menu, instead of specializing in just hamburgers and fries… he would never have opened his second location let alone his ten-thousandth.

If Monro Mufflers decided to do brakes, tune-ups, tires, general repairs, windshields, etc, they would be a common everyday service station, and could not have sold thousands of franchises.

If a steak house sold a full menu of everything, they would probably not be known as a steak house.

You get the point, but so many business owners miss this mark.

Especially in this downturn, where competition is fierce and consumers are looking for the best deal and the best resources, specializing is the way to go.

Not wanting to lose business, many business owners tend to expand their offerings to whatever the next person who walks in wants.

Their thinking is they do not want to lose the opportunity to make money and do business, so give the customer whatever he wants.

What he is missing out on is far more valuable than the extra momentary business.

First, there is the value of specializing, it includes an economy of scale, if you just focus on one major item, you get very good at it, you limit the inventory and supply requirements, you have the expertise and identity, and you can market with pinpointed focus you can buy better.

You get very good at something, better than everyone else, and you become known for this expertise. You can charge less than others because of your efficiency and can, therefore, own your market share, or charge more than others because of your expertise and still own the market place.

Wow, all that by just limiting the desire to be everything for everybody? Yes, just that.

It’s called your mission, and it should be focused, defined, specific and adhered too.

If you sell tires, do it, exclusively, significantly, better than everyone else, and a better price point. It is a simple message, a simple direction and it works far better than generalizing.

There are specialties in law, medicine; almost every trade has its generalized practitioners and its specialists.

The specialists do better.

Be one, it works. Review your position in the market and since you cannot really be good at providing everything for everybody, figure out what you do best and fill that niche better than anyone else in your market. That works.

real estate buying

Real Estate Buying Tip: 504 Loan Program

  • February 5, 2020

I worked with the SBA.gov in school but never really understood how to utilize it best.

In my opinion, the best way to work with them is through the 504 Loan Program. My first investment property, I bought under an amazing 100% loan.

The program was 80% first and 20% second. I loved the fact that I had an investment property. I loved even more so the fact that I had really put nothing down on the property. In the end, I paid roughly 3000 cash to purchase a house at $255,000.

The home was eventually sold for over $300,000. Now while the days of those loans are long gone, there are other programs that are just as great.

In Maryland, the 504 Loan Program is a great way for investors to buy additional property.

What is the 504 Loan Program

The 504 Loan program is an SBA loan where the federal government backs individual loans for specific assets. Ideally, you will be in business.

You could also be in the process of starting your business. You will only be funded if you are a legitimate business.

SBA.gov is a great resource to find out more information about the 504 programs and how to buy real estate with it.

You will basically have a 50 / 40 / 10 loan. The 50 mean 50% of your 504 Loan will come from a commercial lender. There are many local banks that work with the SBA to do the 50% part of your 504 loans.

The 40 is 40% of your loan which will be provided by a local nonprofit that will use SBA funds to help fund your project.

You are responsible for the 10 which is 10% of the loan. For some newer businesses, they require up to 20% of the loan to come from you.

This would mean on a 100,000 loan you would be required to come up with $20,000. Some people use their home equity line of credit to get the 20%, upfront cost.

Again you will still end up with the lower cost of funding that if you did the project outside of the SBA 504 program.

The Prince George’s County Financial Services Corporation is a non-profit business licensed by the SBA to provide the 504 loans to Maryland business.

There are other avenues to get a 504 Loan to buy Real Estate. I’m simply outlining one avenue that works. The big picture of the program is that you are given an opportunity to get long term, below market, fixed-rate loans.

This means you can get deals almost as good at my deal to buy property today. In this market, there are many properties going for sale at rates that are well below the market.

The government through 504 loan programs is giving you the chance to buy these below market properties as below-market cost. Both these factors say that you should have a very profitable Real Estate Buying deal from day one

What can you buy through the 504 Loan Program

You can purchase many things from the Maryland 504 Loan Program. On a basic level, you can buy Real Estate, Renovate properties, or Purchase Machinery.

The program is basically the same for all the processes. However, you must state which way you plan to use the funds in your loan application.

The purpose of the 504 loan program is to help stimulate growth in the economy with small businesses. While the Real Estate Market may slump, the 504 program allows investors to help the economy with new job growth.

To my knowledge, the max loan amount in MD is 1.5 Million. Last time I checked, the limit was 2.0 million for business minority-owned businesses, exporters, targeted business districts, or businesses in rural areas.

Your challenge simply becomes getting approved for as much as you can. Once you are approved, you should have no problem finding the right deal with experienced help.

What business are eligible for the 504 program

You are eligible for the program as long as you are a legitimate for-profit business. You must have a net worth below 7 million. You must also have an average net income below 2.5 million.

Businesses that are not eligible for the 504 Loan Program include, Non-profits, Investment companies, Lenders, Real Estate Developers, and a few others the SBA.gov outlines.

As long as you use the proceeds for purchases of real estate or land you will be eligible. Many people have used the proceeds to renovate properties in the inner city.

This renovation process is also a legitimate process with the 504 Loan Program You can not use the 504 loan program for working capital, or to restructure existing business debt.

There are a few other items that make your use of the money ineligible. You should consult with the SBA, SCORE, and the local SBA licenses Non-Profit to check current eligibility and details.

I wish you all the best of luck and God’s Grace with your 504 Loan Program application.

veterans

What is a VA Home Loan?

  • December 7, 2019

Why would anyone willingly become a soldier – where you can get shot at or blown up?

Partially because of patriotic pride and to help safeguard the freedoms we take for granted today.

And partially because of perks that are given to soldiers such as guaranteed Veterans Administration or VA home loans that help not only you but your family.

By serving your country for at least 181 days (90 in wartime), or getting an honorable discharge, you can help get a bit of the American dream – your own home. It’s the least the government can do.

Loan Specifics

Remember, this is a loan – which means you have to pay it back.

Although it might sound like a hassle to get a VA home loan, being able to get one will make a positive impact on your credit rating, which will help you get any kind of loan in the future.

VA home loans act as the safest kind of mortgages (which have fixed income rates). Some lending institutions offer loans of varying payback lengths from 15 years to 30 years.

You can get one through a regular bank or a lending institution specializing in these kinds of home loans, no matter what your current credit situation is.

You do need to fill out forms from the VA in order to get this special loan, starting off with VA Form 26-880 asking for a Certificate of Eligibility.

Who Pays For This Program?

The VA home loan program is taken care of by a group called the VA Loan Guarantee Service, which is part of the Veterans Benefits Administration.

It’s all paid for by the government, which in turn gets its money through taxes. So, in a way, the American public pays for all VA guaranteed home loans.

In April of 2008, the US Department of Veteran’s Affairs estimates that there are over 10,000 homeless veterans in the country.

These homeless veterans often turn to drugs and alcohol in an attempt to self-medicate their problems away. Although homelessness is a complicated problem with numerous causes, not being able to adjust to civilian life can be one of them.

This upheaval in trying to readjust was the main reason why the VA home loan program started in 1944, even before World War II was over.

Many advocates for the homeless stress that homeless people, including homeless veterans, need to have a roof over their heads before they can settle down to work on their addictions or other problems.

Then, they can become productive members of society again. Considering that soldiers help protect all Americans, making sure they get a roof over their heads is the least the American public can do.