Getting a Military Pension Cash Advance
February 18, 2012 | 
Author Receiving cash for your military pension can provide access to more of your money to meet your immediate financial needs. Instead of waiting to receive monthly pension payments, you can exchange your military retirement for a large lump sum. You could spend the money on anything: debts, a new car or house, a business venture, your child’s college education, or even a much-needed vacation.
The good news is you don’t have to repay the money because it’s not a loan. And, you don’t have to sell your entire pension; you can sell part of your payments. You can receive cash for your military pension payments for a select time, plus retain any future increases in payments. Then once the specified time passes, you can continue receiving your full retirement payment, as you did prior to the sale.
Keep in mind that military and non-military pensions can easily be converted into a lump sum of cash, but it’s a very expensive process. For example, discount rates for regular pension payments run 20 percent for assignable pensions and 30 percent for non-assignable ones. Therefore, you should only sell your pension if there are no other options available to you.
Consider this: As an active-duty military member retiring after 20 years of service, you will receive retirement pay for the rest of your life. The payout, which is based on your years of service and rank, could be substantial. For example: veterans retiring after 20 years of service in 2006 as an E-8 a usual rank for retiring non-commissioned officers would get 50 percent of their base pay or $2,035 per month. Over the next 30 years, these retirement payments could add up to more than $730,000.
Eligibility for Receiving Cash for Your Military Pension
You may be eligible to receive cash for your military pension if it meets federal guidelines concerning Veterans Administration disability. If you’re a veteran whose military income comes solely from VA, you cannot sell your payments. However, you can get cash for your payments if the VA Disability portion makes up no more than 40 percent of your total military income. This restriction is part of a federal legislation (HR 2297) that is designed as a protective measure to prohibit pensioners from selling their V.A. pension streams.
Besides the disability issue, pension fund purchasers use a variety of other factors to determine eligibility. While requirements vary among purchasers, they typically require you to:
- Presently be receiving a minimum monthly pension payment of $400 dollars after taxes
- Have credit scores of at least 580 from all three credit bureaus: TransUnion, Experian and Equifax
- Be currently employed or have a secondary income that allows you to meet your monthly expenses without your pension payments
In addition, some pension purchasers require life insurance. Generally, any active insurance policy is acceptable, even if it existed prior to the sale of your military pension. Also, there’s generally no age limitation placed on pensioners making the sale. But, ultimately, underwriters will evaluate each submission on a case-by-case basis to determine eligibility.
Steps to Getting Cash for a Military Pension
Receiving cash for a military pension is a relatively straightforward procedure. Most pension fund purchasers provide free, no obligation quotes. And most don’t charge any up-front fees. Here are some general steps to the process of getting cash for your military pension:
Step 1: First, you provide information about how much you receive each month from your military pension and any deductions for taxes, child support, alimony, etc. You also must indicate who is making the payments to you (DFAS, GE, IBM, State of Florida, etc.) and when you receive those payments. (You’ll need a copy of your most recent Retiree Account Statement or VA Award Letter, or VSI Earnings Statement.)
Step 2: Next, the underwriter determines the total amount you would receive from your pension for the number of years you wish to sell. Let’s say you want to “cash in” the next eight years of your military pension. If you’re an E-8 receiving $2,035 a month, then you would receive $195,360 over the next eight years.
Step 3: Then, if approved, a lump sum would be calculated for your offer. You could expect an offer of around $98,000 for your eight years of non-assignable pension payments. (The 30-percent discount rate works out to only about half the original payment due to the lower future value of dollars).
Step 4: The entire process takes from four to eight weeks to complete.
Converting some or all your military pension into a lump-sum payment can be an excellent tool for enhancing your cash flow and lifestyle.
PLEASE NOTE THAT WE ARE CURRENTLY NOT OFFERING THIS SERVICE. PLEASE GO TO USPENSIONFUNDING.COM FOR QUOTES.
Loan Modification Hardship Affidavit – What it is and Where to Get One
The primary qualification for a loan modification is the evidence of a financial hardship situation. This means that circumstances have caused your current mortgage payment to be unaffordable and you are at risk of losing your home of going into default. The Fannie Mae loan modification plan, sponsored by the Treasury Department and paid for with bailout money, requires that you complete a form called a Hardship Affidavit.
What is this form and why is it important? This is a 4 page form that basically explains to your lender the reasons you are facing a hardship and could be a candidate for a loan workout. There are multiple choices, and boxes that you must check off. In addition, there is a very important certification that you are asked to sign under penalty of perjury that you are not misrepresenting your circumstances or intentionally missing payments to get a loan modification.
The form also explains briefly the terms of the Home Affordable Modification trial period, and tells you that you may be required to attend credit counseling as a condition of your loan workout. You sign this form giving your bank the authority to check your credit report and verify your income and assets, and to start an escrow account for your property taxes and homeowners insurance.
This is an important part of your loan modification application and should be included with your submission. There is a final page where you can include your Hardship Letter, giving more specific details about your circumstances and why you deserve a loan modification. This is one of the 4 mandatory forms that you will need to prepare for a complete application package. You can get this form on the makinghomeaffordable.gov website, and it is also available, along with all of the other required forms, in a resource kit for homeowners.
How to Get a Fast Small Loan of $5000 Overnight
One of the leading reasons why availing cash is hard is that not too many lenders would easily trust any borrower. Sometimes there are situations that call for urgent cash and getting the money could be quite hard. Situations such as sudden business loss or an emergency in the family would call for sudden need for cold cash.
Cash is a hard-earned commodity and lending it to someone even if they promise interest is not a surefire way of saying that the lender’s money would really be returned. And since so much distrust surrounds financial matters, lending institutions have come up with a way to establish the trustworthiness of their borrowers-through credit investigation.
Personal Loans of Up to $5000
When you are in dire need of cash yet you have a tarnished credit reputation or a very low credit score, the best way to go is to look for payday loan lenders who are willing to provide quick, overnight personal loans ranging from $500-5000. There are many Payday loan lenders online and all you have to do is to choose well before finally settling with a specific lender.
The approval of a personal loan is done fast over the internet and as any person with a bad credit reputation would want, these institutions do not require credit or background checks. They also do not ask for any forms of collateral.
All that an applicant has to do is to fill out an application form online with necessary details such as name, residential proof, mobile or home phone number, type of business (if you have one), current account number (this account must at least be six months old), and the monthly salary (most of them require that monthly salary starts at $1,000). Also, those who apply must be 18 years or older.
Once the loan applicant satisfies all of these requirements and have completely submitted all the necessary information, the loan would be deposited to his account within just a few hours. You can then withdraw the money in your bank. The interest rate all depends on their published APR, but usually this kind of loan have a higher rate of interest and can reach 1,845%.
Great News to Borrowers
There are instances when a borrower might not be able to repay this personal loan within the maturity date which is the next payday. In this case, online lending companies that offer overnight approval of loans also have the power to extend the said loan. All you have to do is contact them and make the necessary renewal. However, bear in mind the interest charges.
If you are thinking that you cannot borrow from these online companies all because you have declared bankruptcy or have a long list of default arrears, think again. Payday loans of up to $5,000 could still be made available to you. Again, the necessary step is to provide all the correct information on the online application form and you can be positive as long as you have a regular and verifiable monthly income.
Obtaining Your Personal Loan Up to 10,000 Dollars
If you need to make a major purchase, chances are you will not have enough money in just a single paycheck to cover items like appliances, furniture and more. What you need is a personal loan that can help you buy the things you need now, available to you with low monthly payments that are tailor made to fit your budget.
Money To Pay For Things You Need
You can use your personal loan for any purpose that you may have. Many borrowers find that a personal loan is perfect for making major purchases like furniture, appliances, flooring, a new roof, even a used car. Other borrowers may elect to take a vacation or cruise of a lifetime with their personal loan. Whatever you choose to do with your personal loan, there is one out there to meet your needs.
Borrowers With All Types Of Credit Welcome
A personal loan can be secured or unsecured, and is available for borrowers with all types of credit. The secured personal loan involves the borrower placing collateral against the amount of money borrowed. Acceptable collateral is usually your home or automobile. The lender will place a lien against your property until you have repaid the loan in full. An unsecured personal loan is not backed up by any type of collateral, and is a bit harder to get if you have a credit score under 700; however, if you wish to apply for your unsecured personal loan with a creditworthy cosigner, you stand a better chance of approval.
The amount that you qualify for when applying for your personal loan is dependent not only on your credit score, but also on your ability to repay your lender. Your personal loan lender will look at how much income you have out as it relates to the amount of other bills you must pay each month, such as your rent or mortgage payment, credit card bills, etc. If you are married, and your spouse wishes to apply with you on your personal loan application, including his or her income will not only improve your chances of getting the loan you need, but will also allow you to borrow larger amounts, up to $10,000 or more, depending on your combined incomes.
It is important that you do not over extend yourself by borrowing an amount that is more than you can reasonably afford to repay. Doing so may cause you to become behind on your personal loan payments or obligations to other creditors, which can effect your overall credit score in a negative manner. Never agree to pay an amount each month that exceeds what your budget can handle.
Finding The Best Personal Loans
To realize savings on your personal loan, both secured and unsecured personal loans are available online. Online lenders not only offer the ease of applying from the comfort of your own home, they also have greater rates of approval for borrowers of all credit types and reduced interest rates due to competition between lenders in the online lending marketplace.
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CPA Exam Pass Rate – 3 Lessons Learned From These Statistics
For the Uniform CPA exam, there is no better proof of its difficulty than the CPA exam pass rate: less than half of the candidates could pass every year. But the more important question for you is, what does the passing rate mean to you, and is there anything you can learn from it?
A Detailed Look Into The CPA Exam Pass Rate
The official CPA exam website has released the 2009 pass rates: an overall average of 49.1%, slightly higher than the previous year. The pass rates for each of the four sections are:
CPA AUD Exam: 50.0%
CPA BEC Exam: 48.3%
CPA FAR Exam: 48.5%
CPA REG Exam: 49.8%
Surprise #1: BEC Has The Lowest Pass Rate
BEC is the shortest exam and everyone thinks it is the easiest, yet this section has the lowest pass rate. Why?
I personally believe BEC is the least difficult (I’d never say any part of the CPA exam is easy), so I think the main reason why people fail is because they underestimate the exam.
On the surface, BEC is 2-hour exam on some “soft” topics like business structure and elementary economics — far from anything dangerous. But many candidates are caught off guard by the numerous questions on information technology and the tricky ones on cost accounting.
Lesson One: never underestimate any part of the CPA exam.
Surprise #2: AUD Has The Highest Pass Rate
AUD is the longest exam with 4.5 hours, and for many of us who didn’t have any experience in auditing, it sounds like a nightmare.
In reality, many candidates can finish AUD early — I finished the exam within 3.5 hours myself. Also, if you take the time to understand how audit works, and the reasons behind each audit procedure, you are all set.
Lesson Two: Try to understand the concepts and why examiners want to ask the specific questions.
Surprise #3: CPA Exam Pass Rate Is Actually Improving
If you think the pass rates are discouraging, turn back the clock and look at the 1Q 2005 results:
AUD: 40.0%
BEC: 43.0%
FAR: 36.0%
REG: 35.0%
You may notice that the biggest improvement is seen in the “difficult” exams, i.e. FAR and REG, with an astounding 12-13 percentage point increase in pass rates. “Easier” exams such as BEC has a decent but much smaller 5% improvement.
Few people have attempted to answer this question, but I believe the fact that the exam turned computerized since 2004 has allowed candidates to take the exam one at a time, instead of only twice a year. In 1Q 2005, candidates were probably still accustomed to taking multiple exams in one sitting, but nowadays most candidates spread them out and take them one at a time.
Lesson Three: If you allocate enough time for the study, your chance of success in passing the CPA exam is considerably higher.
Due Diligence Checklists – For Commercial Real Estate Transactions
Planning to purchase or finance Commercial or Industrial Real Estate? Shopping Center? Office Building? Restaurant/Banquet property? Parking Lot? Storefront? Gas Station? Manufacturing facility? Warehouse? Logistics Terminal? Medical Building? Nursing Home? Hotel/Motel? Pharmacy? Bank facility? Sports and Entertainment Arena? Other?
A KEY to investing in commercial real estate is performing an adequate Due Diligence Investigation to assure you know all material facts to make a wise investment decision and to calculate your expected investment yield.
The following checklists are designed to help you conduct a focused and meaningful Due Diligence Investigation.
Basic Due Diligence Concepts:
Commercial Real Estate transactions are NOT similar to large home purchases.
Caveat Emptor: Let the Buyer beware.
Consumer protection laws applicable to home purchases seldom apply to commercial real estate transactions. The rule that a Buyer must examine, judge, and test for himself, applies to the purchase of commercial real estate.
Due Diligence: “Such a measure of prudence, activity, or assiduity, as is proper to be expected from, and ordinarily exercised by, a reasonable and prudent [person] under the particular circumstances; not measured by any absolute standard, but depending upon the relative facts of the special case.” Black’s Law Dictionary; West Publishing Company.
Contractual representations and warranties are NOT a substitute for Due Diligence.
Breach of representations and warranties = Litigation, time and money.
WHAT DILIGENCE IS DUE?
The scope, intensity and focus of any due diligence investigation of commercial or industrial real estate depends upon the objectives of the party for whom the investigation is conducted. These objectives may vary depending upon whether the investigation is conducted for the benefit of (i) a Strategic Buyer (or long-term lessee); (ii) a Financial Buyer; (iii) a Developer; or (iv) a Lender.
If you are a Seller, understand that to close the transaction your Buyer (and its Lender) must address all issues material to its objective – some of which require information only you, as Owner, can adequately provide.
GENERAL OBJECTIVES:
(i) A “Strategic Buyer” (or long-term lessee) is acquiring the property for its own use and must verify that the property is suitable for that intended use.
(ii) A “Financial Buyer” is acquiring the property for the expected return on investment generated by the property’s income stream, and must determine the amount, velocity and durability of the revenue stream. A sophisticated Financial Buyer will likely calculate its yield based upon discounted cash-flows rather than the must less precise capitalization rate (“cap rate“), and will need adequate financial information to do so.
(iii) A “Developer” is seeking to add value by changing the character or use of the property – usually with a short-term to intermediate-term exit strategy to dispose of the property; although, a Developer might plan to hold the property long term as Financial Buyer after development or redevelopment. The Developer must focus on whether the planned change is character or use can be accomplished in a cost-effective manner. A developer conducting due diligence will focus on issues involving market demand, access, use and finances.
(iv) A “Lender” is seeking to establish two basic lending criteria:
1. “Ability to Repay” – The ability of the property to generate sufficient revenue to repay the loan on a timely basis; and
2. “Sufficiency of Collateral” – The objective disposal value of the collateral in the event of a loan default, to assure adequate funds to repay the loan, carrying costs and costs of collection in the event forced collection becomes necessary.
The amount of diligent inquiry due to be expended (i.e. “Due Diligence”) to investigate any particular commercial or industrial real estate project is the amount of inquiry required to answer each of the following questions to the extent relevant to the objectives of the party conducting the investigation:
I. THE PROPERTY:
1. Exactly what PROPERTY does Purchaser believe it is acquiring?
(a) Land?
(b) Building?
(c) Fixtures?
(d) Other Improvements?
(e) Other Rights?
(f) The entire fee title interest including all air rights and subterranean rights?
(g) All development rights?
2. What is Purchaser’s planned use of the Property?
3. Does the physical condition of the Property permit use as planned?
(a) Commercially adequate access to public streets and ways?
(b) Sufficient parking?
(c) Structural condition of improvements?
(d) Environmental contamination?
(i) Innocent Purchaser defense vs. exemption from liability
(ii) All Appropriate Inquiry
4. Is there any legal restriction to Purchaser’s use of the Property as planned?
(a) Zoning?
(b) Private land use controls?
(c) Americans with Disabilities Act?
(d) Availability of licenses?
(i) Liquor license?
(ii) Entertainment license?
(iii) Outdoor dining license?
(iv) Drive through windows permitted?
(e) Other impediments?
5. How much does Purchaser expect to pay for the property?
6. Is there any condition on or within the Property that is likely to increase Purchaser’s effective cost to acquire or use the Property?
(a) Property owner’s assessments?
(b) Real estate tax in line with value?
(c) Special Assessment?
(d) Required user fees for necessary amenities?
(i) Drainage?
(ii) Access?
(iii) Parking?
(iv) Other?
7. Any encroachments onto the Property, or from the Property onto other lands?
8. Are there any encumbrances on the Property that will not be cleared at Closing?
(a) Easements?
(b) Covenants Running with the Land?
(c) Liens or other financial servitudes?
(d) Leases?
9. Leases?
(a) Security Deposits?
(b) Options to Extend Term?
(c) Options to Purchase?
(d) Rights of First Refusal?
(e) Rights of First Offer?
(f) Maintenance Obligations?
(g) Duty on Landlord to provide utilities?
(h) Real estate tax or CAM escrows?
(i) Delinquent rent?
(j) Pre-Paid rent?
(k) Tenant mix/use controls?
(l) Tenant exclusives?
(m) Tenant parking requirements?
(n) Automatic subordination of Lease to future mortgages?
(o) Other material Lease terms?
10. New Construction?
(a) Availability of construction permits?
(b) Utilities?
(c) NPDES (National Pollutant Discharge Elimination System) Permit?
(i) Phase 2 effective March 2003 – Permit required if earth is disturbed on one acre or more of land.
(ii) If applicable, Storm Water Pollution Prevention Plan (SWPPP) is required.
II. THE SELLER:
1. Who is the Seller?
(a) Individual?
(b) Trust?
(c) Partnership?
(d) Corporation?
(e) Limited Liability Company?
(f) Other legally existing entity?
2. If other than natural person, does Seller validly exist and is Seller in good standing?
3. Does the Seller own the Property?
4. Does Seller have authority to convey the Property?
(a) Board of Director Approvals?
(b) Shareholder or Member approval?
(c) Other consents?
(d) If foreign individual or entity, are any special requirements applicable?
(i) Qualification to do business in jurisdiction of Property?
(ii) Federal Tax Withholding?
(iii) US Patriot Act compliance?
5. Who has authority to bind Seller?
6. Are sale proceeds sufficient to pay off all liens?
III. THE PURCHASER:
1. Who is the Purchaser?
2. What is the Purchaser/Grantee’s exact legal name?
3. If Purchaser/Grantee is an entity, has it been validly created and is it in good standing?
(a) Articles or Incorporation – Articles of Organization
(b) Certificate of Good Standing
4. Is Purchaser/Grantee authorized to own and operate the Property and, if applicable, finance acquisition of the Property?
(a) Board of Director Approvals?
(b) Shareholder or Member approval?
(c) If foreign individual or entity, are any special requirements applicable?
(i) Qualification to do business in jurisdiction of the Property?
(ii) US Patriot Act compliance?
(iii) Bank Secrecy Act/Anti-Money Laundering compliance?
5. Who is authorized to bind the Purchaser/Grantee?
IV. PURCHASER FINANCING:
A. BUSINESS TERMS OF THE LOAN:
What loan terms have the Purchaser, as Borrower, and its Lender agreed to?
(a) What is the amount of the loan?
(b) What is the interest rate?
(c) What are the repayment terms?
(d) What is the collateral?
(i) Commercial real estate only?
(ii) Real estate and personal property together?
(e) First lien? A junior lien?
(f) Is it a single advance loan?
(g) A multiple advance loan?
(h) A construction loan?
(i) If it is a multiple advance loan, can the principal be re-borrowed once repaid prior to maturity of the loan; making it, in effect, a revolving line of credit?
(j) Are there reserve requirements?
(i) Interest reserves?
(ii) Repair reserves?
(iii) Real estate tax reserves?
(iv) Insurance reserves?
(v) Environmental remediation reserves?
(vi) Other reserves?
(k) Are there requirements for Borrower to open business operating accounts with the Lender? If so, is the Borrower obligated to maintain minimum compensating balances?
(l) Is the Borrower required to pledge business accounts as additional collateral?
(m) Are there early repayment fees or yield maintenance requirements (each sometimes referred to as “pre-payment penalties”)?
(n) Are there repayment blackout periods during which Borrower is not permitted to repay the loan?
(o) Is there a Loan Commitment fee or “good faith deposit” due upon Borrower’s acceptance of the Loan Commitment?
(p) Is there a loan funding fee or loan brokerage fee or other loan fee due Lender or a loan broker at closing?
(q) What are the Borrower’s expense reimbursement obligations to Lender? When are they due? What is the Borrower’s obligation to pay Lender’s expenses if the loan does not close?
B. DOCUMENTING THE COMMERCIAL REAL ESTATE LOAN
Does Purchaser have all information necessary to comply with the Lender’s loan closing requirements?
Not all loan documentation requirements may be known at the outset of a transaction, although most commercial real estate loan documentation requirements are fairly typical. Some required information can be obtained only from the Seller. Production of that information to Purchaser for delivery to its lender must be required in the purchase contract.
As guidance to what a commercial real estate lender may require, the following sets forth a typical Closing Checklist for a loan secured by commercial real estate.
Commercial Real Estate Loan Closing Checklist
1. Promissory Note
2. Personal Guaranties (which may be full, partial, secured, unsecured, payment guaranties, collection guaranties or a variety of other types of guarantees as may be required by Lender).
3. Loan Agreement (often incorporated into the Promissory Note and/or Mortgage in lieu of being a separate document)
4. Mortgage [sometimes expanded to be a Mortgage, Security Agreement and Fixture Filing]
5. Assignment of Rents and Leases
6. Security Agreement
7. Financing Statement (sometimes referred to as a “UCC-1″, or “Initial Filing”)
8. Evidence of Borrower’s Existence In Good Standing; including
(a) Certified copy of organizational documents of borrowing entity (including Articles of Incorporation, if Borrower is a corporation; Articles of Organization and written Operating Agreement, if Borrower is a limited liability company; Certified copy of trust agreement with all amendments, if Borrower is a land trust or other trust; etc.)
(b) Certificate of Good Standing (if a corporation or LLC) or Certificate of Existence (if a limited partnership) or Certificate of Qualification to Transact Business (if Borrower is an entity doing business in a State other than its State of formation)
9. Evidence of Borrower’s Authority to Borrow; including
(a) a Borrower’s Certificate;
(b) Certified Resolutions
(c) Incumbency Certificate
10. Satisfactory Commitment for Title Insurance (which will typically require, for analysis by the Lender, copies of all documents of record appearing on Schedule B of the title commitment which are to remain after closing), with required commercial title insurance endorsements, often including:
(a) Affirmative Creditors Rights Endorsement (extending coverage over policy exclusion 7 and policy exclusions 3(a) and 3(d) as they relate to creditor’s rights matters)
(b) ALTA 3.1 Zoning Endorsement modified to include parking
(c) ALTA Comprehensive Endorsement 1
(d) Location Endorsement (street address)
(e) Access Endorsement (vehicular access to public streets and ways)
(f) Contiguity Endorsement (the insured land comprises a single parcel with no gaps or gores)
(g) PIN Endorsement (insuring that the identified real estate tax permanent index numbers are the only applicable PIN numbers affecting the collateral and that they relate solely to the real property comprising the collateral)
(h) Usury Endorsement (insuring that the loan does not violate any prohibitions against excessive interest charges)
(i) other title insurance endorsements applicable to protect the intended use and value of the collateral, as may be determined upon review of the Commitment for Title Insurance and Survey or arising from the existence of special issues pertaining to the transaction or the Borrower.
11. Current ALTA Survey (3 sets), [typically prepared in accordance with 2005 Minimum Standard Detail for ALTA/ACSM Land Title Surveys, certified to the lender, Buyer and the title insurer, including items 1 through 4, 6, 7(a), 7(b)(1), 8 through 11(a) and 14 from the Surveyor's "Optional Survey Responsibilities and Specifications" referred to as "Table A"].
12. Current Rent Roll
13. Certified copy of all Leases (3 sets)
14. Lessee Estoppel Certificates
15. Lessee Subordination, Non-Disturbance and Attornment Agreements [sometimes referred to simply as "SNDAs"].
16. UCC, Judgment, Pending Litigation, Bankruptcy and Tax Lien Search Report
17. Appraisal (must comply with Title XI of FIRREA (Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended)
18. Environmental Site Assessment Report (sometimes referred to as Environmental Phase I and/or Phase 2 Audit Reports)
19. Environmental Indemnity Agreement (signed by Borrower and guarantors)
20. Site Improvements Inspection Report
21. Evidence of Hazard Insurance naming Lender as the Mortgagee/Lender Loss Payee; and Liability Insurance naming Lender as an “additional insured” (sometimes listed as simply “Acord 27 and Acord 25, respectively)
22. Legal Opinion of Borrower’s Attorney
23. Credit Underwriting documents, such as signed tax returns, property operating statements, etc. as may be specified by Lender
24. Compliance Agreement (sometimes also called an Errors and Omissions Agreement), whereby the Borrower agrees to correct, after closing, errors or omissions in loan documentation.
It is useful to become familiar with the Lender’s loan documentation requirements as early in the transaction as practical. The requirements will likely be set forth with some detail in the lender’s Loan Commitment – which is typically much more detailed than most loan commitments issued in residential transactions.
Conducting the Due Diligence Investigation in a commercial real estate transaction can be time consuming and expensive in all events.
If the loan requirements cannot be satisfied, it is better to make that determination during the contractual “due diligence period” – which typically provides for a so-called “free out” – rather than at a later date when the earnest money may be at risk of forfeiture or when other liability for failure to close may attach.
CONCLUSION
Conducting an effective due diligence investigation in a commercial real estate transaction to discover all material facts and conditions affecting the Property and the transaction is of critical importance.
Unlike owner occupied residential real estate, when a house can nearly always be occupied as the purchaser’s home, commercial real estate acquired for business use or for investment is impacted by numerous factors that may affect its use and value.
The existence of these factors and their affect on a Purchaser’s ability to use the Property for its intended use and on the Purchaser’s projected investment yield can only be discovered through diligent investigation and attention to detail.
The circumstances of each transaction will determine what degree of diligence is required. The level of diligence required under the circumstances is the diligence that is due.
Exercise Due Diligence.
Posted in Loan Rate Articles | 
Tags: Checklists, Commercial, Diligence, Estate, Transactions | 
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Calculating Interest Rates with Microsoft Excel
The Rate function calculates the interest rate implicit in a set of loan or investment terms
given the number of periods (months, quarters, years or whatever), the payment per period, the present value, the future value, and, optionally, the type-of-annuity switch, and also optionally, an interest-rate guess.
If you set the type-of-annuity switch to 1, Excel assumes payments occur at the beginning
of the period, following the annuity due convention. If you set the annuity switch to 0 or
you omit the argument, Excel assumes payments occur at the end of the period following
the ordinary annuity convention.
The function uses the following syntax:
RATE (nper, pmt, pv, fv, type, guess)
As one example, suppose you want to calculate the implicit interest rate on a car lease for a $20,000 car that requires five years of $250-a-month payments (occurring as an annuity due) and also a
$15,000 balloon payment. To do this, assuming you want to start with a guess of 10%, you
can use the following formula:
=RATE(5*12,-250,20000,-15000,1)
The function returns the value .95%, which is a monthly interest rate of just less than 1%.
If you annualize this monthly rate by multiplying it by 12, you get an equivalent annual
interest rate of 11.41%.
As another example, suppose you want to calculate the implicit interest rate on a $300,000 real estate mortgage that requires thirty years of $2000-a-month payments (occurring as an ordinary annuity) but (thankfully) no balloon payment. To do this, assuming you want to start with a guess of 10%, you can use the following formula:
=RATE(30*12,-2000,300000)
The function returns the value .59%, which is a monthly interest rate of slightly more than half a percent.
If you annualize this monthly rate by multiplying it by 12, you get an equivalent annual
interest rate of 7.0203%.
A final point: Excel solves the RATE function iteratively starting with the guess argument you provide.
(If you don’t provide this optional argument, Excel uses 10%.) If Excel can’t solve the RATE argument within 20 attempts, it returns the #NUM! error. You can try a different guess argument, which may help because you’re telling Excel to begin its search from a different (hopefully closer) starting point.
Can I Get a Car Loan With a Credit Score of 600?
Many people have bad credit become fixated on the idea of a particular score or number. Having a “beacon” score of 600, 650 or 550 and being able to get a car loan with the same, depends not so much on your score, per se. It depends more on the lender that you choose to obtain your credit through.
Using the Right Lenders…
So if you are wondering if you can get a car loan with a credit score of 600, the answer lies in understanding lenders and choosing the right type of lender to submit your credit application to.
There are many different people with many different credit scores and there are also many different lenders that have very different requirements for a car loan. What this means for you is that rather than wondering if you can get a car loan with your particular credit score, you should be looking for a lender that will accept you with your particular credit score.
Prime vs Subprime…
For example, some lenders (prime) that offer car loans prefer that the applicant have a credit score of at least 700 or better. Other lenders may look for a score of 650 or above, while there are some that will offer car credit to someone that has a score as low as 480 (subprime).
You Can Get Approved…
Credit takes a long time to improve. It’s a great idea to work on improving your credit score however, while you are working on that you can still get approved for a car loan if you simply find the best lender to suit you. You may be pleasantly surprised at what is available for you, based on your income.
Using Government Grants For Debt Relief
When looking to pay off credit card debt, one of the most overlooked options many people have are government grants. Many people do not look into these grants because they simply do not know about them. However, the government sets aside billions each year just for this purpose, to give them away. If you are one of the millions of people who are suffering from credit card debt, you definitely want to consider applying for a grant from the government.
Government grants are available, the key is finding them. If you are looking for debt relief, you should understand that there are ways to get out of this debt and it is up to you to seek the help you need and deserve. We all get into trouble now and then with our financial situation, however, if the help is available, why not take advantage of it.
Why do these grants make more sense when it comes to credit card debt elimination? Simply put, these grants are far easier to obtain than traditional loans. Traditional loans may require some form of collateral or security deposit, grants do not require these because they are provided by the government.
The key to grants is to be creative. The government is willing to jump-start the economy by providing small business grants. If you apply for and receive a grant for several thousand dollars, you can eliminate your debt by using the money earned in your business to pay them off.
In order to get the grant the people accepting your application will need to review your situation. In other words, they will be looking at many things. First, they will be looking at if you have the ability to pay the money you currently owe, then they will take a look at the debts you currently have, and finally your financial ability to repay what you owe and still maintain your current debt. If you can prove that you cannot pay back this money, the grant will likely be yours.
Government grants can do many things for you. First, they can provide you with the money you need for debt relief without having to provide security or collateral. Second, these grants can save you from having to file for bankruptcy. Third, no repayment is necessary, this is type of financial aid, and it cannot be taxed and does not accrue any interest. Finally, it can instantly make you debt free, which cannot be said about other types of debt relief solutions.
Overall, obtaining a government grant just makes sense when you are swimming in debt that you cannot get out of.
What is the Average Car Loan Rate of Interest For People With Bad Credit?
Many people that are looking to buy a car and have bad credit, really don’t know what to expect in regards to the interest rate that they will be asked to pay (or TOLD to pay by some dealers). Average car loan rates for people with good credit can be anywhere from 4% to 7% depending on the market and the source that you use for financing.
When you have bad credit, average car loan rates can vary dramatically. This is where finding a good source for your auto financing is crucial.
For example, if you use a car lot that has in house financing, you can expect to pay upwards of 20% interest and up to 28%, depending on your state of residence. Average interest rates charged by these establishments used to be unregulated and eventually state laws had to come in to keep things from getting out of hand.
In all truthfulness, there is no such thing as an average rate for a car loan when it comes to people that have bad credit. There are too many variables and too many stipulations and conditions that determine the rate. Getting the lowest rate for a car loan when you have a low credit score is determined more by the lending source that you select, over all other factors.
You can expect to pay a higher rate than someone that has excellent credit… that is to be expected. You should not however, accept any offer at a rate of over 12% unless you have thoroughly researched and explored other possibilities first. There’s nothing worse than having bad credit and having high payments… that makes getting ahead and improving your credit that much more difficult.
To obtain the lowest car loan rate on a car when you have bad credit, you should look into using reputable, legitimate sources for online car loans. Lending services vary one from another. Some are reputable and some are not. Be sure of what you’re doing before you jump in and sign a contract.