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How To Have Lenders And Investors Eating Out Of Your Hand

Picture yourself sitting at a desk, in a bank, as a small business loan officer. Your job is to make lots of good profitable loans .To do that you have to convince your superiors that a particular borrower is a good risk. You need to separate the good from the bad, pitch the good to the loan committee and the bad out the door. Get it right and bonuses and promotions are yours. Get it wrong and you won’t be around too long. Oh, and one last thing – you don’t have a crystal ball.

How do you tell the good loans from the bad? You poke and prod to find the answer to one central question – can I trust this borrower and this business to succeed. You want to find borrowers who are prepared, who know their business and who will make you look good to the loan committee. You’re paid to say “yes” – it’s how the bank makes money – but only to people who will be trustworthy, creditworthy, customers.

Now picture yourself walking in to that banker. You want him or her to know that you’ve done your homework, that you’re prepared to win and that you’ll look good to the bosses. You need to show the who, what, when, where, why and how of your project in a way that can be passed up the chain of command. There is one, and only one, sure way to do that. You need to bring a business plan.

A business plan is the report that’s generated by asking a series of questions about your project or business. You describe the company, its products or services and the people who will make everything happen. You tell about the competition and how you will compete against them. Based on your vision, you provide a forecast of future profits and cash flow. In short, you create a blueprint for your success that makes it easy for the banker to say “yes!”.

This isn’t to say that a business plan is an instant answer to a loan or investment. Your project will eventually live or die on it’s merits. The business plan only examines and describes your project’s chances for success. But, by taking a good look at your project before you jump in (and ask others for money), you increase dramatically your chances for success and show that you are a careful and serious businessperson. When you hand a banker or investor the results of your homework (the business plan) they’ll take you seriously and will be eating information out of your hand.

Amazing Residential Benefits by Investing In a Home Using Dallas Foreclosure Listings

For prospective home buyers on the lookout for suitable properties in Texas State, Dallas foreclosure homes offer some amazing residential benefits at highly reduced asking prices. So if you are thinking of buying a budget priced property in Texas, you are sure to find some of he best bargain deals using Dallas foreclosure listings.

The city of Dallas has developed into one of the most preferred real estate venues for home buyers as the region offers a rich and diverse culture, excellent job opportunities as well as a friendly residential atmosphere. Now with highly reduced foreclose property deals available in this city home buyers can own their dream home within their budget and avail some amazing residential benefits.

One of the foremost benefits of buying a property through Dallas foreclosure listings are the attractive asking prices which at present 30-55% below their actual market worth. This feature makes foreclosures in this city a very viable real estate investment as the region enjoys a sound economy and home buyers can earn a good profit by reselling foreclosed homes in a few years time at double the purchase price.

The Dallas Home Owner’s Association is also offering some great incentives for first time home buyers who are keen on buying a foreclosed home in the city. One of the most successful schemes launched by the Association is the Tax Credit Abatement Program under which low and mid income families can avail cash incentives which would help them make the down payment for the properties that they are interested in purchasing using Dallas foreclosure listings.

Apart from availing various housing incentives, residing in this city has its own unique benefits as well. The region has a very rich and proud tradition as well as a highly diverse resident population which is reflected across the various neighborhoods in the city. Home buyers can enjoy a very vibrant and dynamic lifestyle in this city due to wonderful recreational hot spots including the famous Hurricane Harbor which is one of the most visited water parks in the country.

Prospective home buyers can also enjoy the various art festivals and music events which are hosted in the city throughout the year such as the City Arts Festival and the various musical shows organized by the Dallas Symphony Centre. The region is also known as an art lover’s paradise due to the presence of its Art district which has the Trammell & Margaret Crow Collection of Art as well as the distinguished Dallas Museum of Art. Families can also offer their children a great learning environment as the city has some renowned historical venues including the Holocaust Museum which organizes various youth programs through the very popular Children’s theatre.

Purchasing a property using Dallas foreclosure listings is therefore an ideal and exclusive investment prospect for potential home buyers.

Business Partnership in 3 Steps

Partnerships are like marriages. They can be extremely rewarding–both financially and personally. They can also be an extraordinary source of misery–both financially and personally. Also like a marriage, it’s generally much easier to jump in than to “jump” out. Time and money spent at the front end, discussing some important things with a legal advisor can make all the difference in making a good relationship better, and preventing train wrecks before they happen. Here are some things to do BEFORE going into business with someone:

1. Get a credit report and a financial statement and possibly even a background check–even if the potential partner is someone you know socially. The more you plan on investing in this joint venture (in time or money), the more important this becomes. Credit reports give a running history of a person’s actions with money and monetary promises. Does your prospective partner have a trail of broken financial promises? This is extremely important to know before you’re in business with someone. I’ve had 2 clients just in the past year that lost about a half of a million dollars each because they failed to do this very thing with people they knew socially.

2. Get a lawyer to help you structure the legal agreement between the partners. Just like a marriage counselor would strongly recommend that certain topics be discussed before saying “I do”, an experienced lawyer will have lots of wisdom about the kinds of things that should be nailed down in writing before there’s a lot more at stake. If you’re already in business and haven’t gotten the following things resolved in writing, get your partner(s) and yourself to an attorney to get them taken care of a.s.a.p.

3. Get certain aspects of the relationship in writing. Here are just a few things that are too important in a business relationship to leave undiscussed or unwritten, and with the help of attorney:

- What are each of us going to put into the business & when (money, time, certain tasks)?

- When and how is money going to come out of the business? Are there any salaries or is one or some or all of us waiting on profits, which could take days, months, or years?

- Who makes what decisions? Which ones are yours? Mine? Ours?

- How do I get out if I want out? (You can have an agreement that will create a predetermined and mutually fair way for one partner to be bought out.)

The bottom line is getting a prospective partner’s financial history and, if that part is acceptable, getting everyone’s expectations for money, time, control and exit strategies on the table and in writing. If you do that, you’ll keep lots of avoidable problems from killing your business once its underway. Getting a good CPA involved from the beginning who will keep all the partners informed about the state of the business is also very helpful. Partnerships can be a great thing, but only fools rush in.