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7 Things You Should Be Aware of Before Selling Your House

When it comes to selling your home to either look for a bigger one or change states due to work, you have to ensure you have the right information. The best time to sell your house is mostly during spring, which is when you are most likely to cash in well. Different people have various reasons for selling their homes. However, it’s important to ensure that you are aware of the following before you put it on sale.

  1. Find a Realtor

The first thing you should do once you make the final decision to sell your house is getting a realtor. For a trustworthy realtor, you need to ensure that they are certified and possibly registered under the National Association of Realtors. Get somebody who you can easily relate with and who won’t give you a hard time.

  1. Do not Overprice

One mistake most people do is overpricing their homes. The reason why some houses stay up for years without getting a buyer is that the price may be too exaggerated such that it drives willing people away. Do some research and know the current market value and price your house around it. Proper listing price leads to a fast house sale.

  1. Have Insurance

Ensure that you have insurance for unforeseen accidents. This is because accidents do occur and the affected may sue you for any possible damages. However, make sure that there are no obvious hazards. Also, you can find ways to mitigate the risks like having an enclosed perimeter wall so that your potential buyers’ children don’t find their way there.

  1. Have the house renovated

You need to know the latest exterior and interior design on the market. Make the necessary renovation so that your home’s value may be higher and appealing for clients. The landscaping design is also crucial to making the first impression for potential buyers.

  1. Do a calculation of the estimated profit or loss

The overall gain or loss is determined by your listing price. Do estimates of the expected expenses like realtor fees, any debt regarding mortgage if any, title charges and so on. All these costs will help you come up with a figure that will be favorable for both sides.

  1. Get Listing Photos

Most buyers skim through the internet to search for homes. Ensure that the photos to your house are clear and attractive. Customers click on homes that have clear pictures more than those with unclear ones. This is one of the tricks of getting buyers interested in your home.

  1. It could take a while before you sell the house

Before the sale of a house, know that you may take a while before closing the deal. Prepare yourself in advance because the sale may take longer than you expected even with the best realtor. Ensure that the house is in the best conditions to attract buyers.

All in all, selling a house is a process where you learn along the way. Whether it’s your first time or you have experienced it before, always research on the emerging trends of attracting buyers to close the deal more quickly.

An Overview of Settlement Risk

Settlement risk can be defined as the possibility of a loss that arises when one party fails to honor its end of the deal. Therefore, the settlement in a transfer system will not be completed as expected. It can be as a result of defaulted payments or timing difference in a settlement. Parties to a contract ought to fulfill their promises during the settlement period. This is the period between the transaction and the settlement dates.

Types of Settlement Risk

Settlement risk is made up of credit and liquidity risks. Credit risk is whereby one party is unable to fulfill their promise on the agreed date or later because they are insolvent. Liquidity risk, on the other hand, is the risk that one party to a contract is unable to honor the promise at the agreed date but could fulfill their end of the bargain later. Therefore the main difference between credit risk and liquidity risk is that for liquidity risk the defaulting counterparty can honor their promise at a later date.

How to Mitigate Settlement Risk

Settlement risk can be mitigated in three ways

– Delivery versus payment: This is a mitigation measure where parties to the contract honor their promises simultaneously. For instance, in securities, the parties exchange documents for the transfer and the agreed payment amount simultaneously. With simultaneous delivery, the risk of one party failing to honor their promise is eliminated.

– Settlement via special purpose entities: Special purpose entities are legal entities used by companies to mitigate settlement risk. Example of special purpose entity is the CLS Group. CLS group caters for settlements in the foreign exchange market. Since the foreign exchange market does not have a central clearing platform, most traders use CLS to settle their transactions so as to mitigate risk.

– Settlement through settlement risk solution services.

Settlement Risk Example

A good example of a settlement risk is the case of Herstatt Bank that failed causing a huge financial crisis. The bank was opened in 1956 by Iwan Herstatt and Hans Gerling. The investment grew and became the 35th largest bank in Germany. The bank had a foreign exchange department that operated without the control and collaboration with other divisions.

In 1974, Herstatt Bank failed causing failures in other banks that relied on them for delivery of foreign currencies. The cause of the problem was attributed to the huge foreign exchange exposure which was eight times higher than the limit. Consequently, the bank’s license was withdrawn in June 1974 as the bank lacked assets to cover the liabilities.

Conclusion

The huge liability was as a result of flawed methods applied by the bank when speculating the dollar movement. On the day the bank’s license was withdrawn, some other banks had paid Deutsche Mark to the Herstatt with the hope of getting US dollars later in the day. However, Herstatt stopped all dollar transactions at 3.30pm, that is 10.30 am in New York, and thus counterparties did not receive their dollars. This kind of risk is today referred to as Herstatt risk. The bank’s crisis resulted in a number of regulations. For instance, the banking act was amended, and a deposit protection scheme was set up for German banks.

These Tips Will Help You Avoid Getting Into Trouble With Your Credit Card

Owing a large amount of debt on a credit card can feel like quicksand, the longer you sit still the deeper you slide into a bottomless hole. Honestly, using a credit card shouldn’t leave you feeling bogged down, but it’s important to realize that there are responsible and irresponsible ways to use a credit card. Here are four tips you should follow to keep your credit card debt free and safe.

Don’t charge frivolous items to credit

Have you ever seen an amazing pair of sunglasses at a store that you didn’t need but still wanted?

Well, you might be tempted to charge those sunglasses to your credit card, however, you shouldn’t, as charging frivolous expenditures to your credit card could leave you with unmanageable debt. Your credit card should be available when you really need it, such as paying for the tow truck after your car battery dies, or when you need to pay an outstanding electricity bill. Buying luxury items on credit could leave you with a mountain of unnecessary, interest collecting debt.

Pay more than the minimum each month

You used your credit card only for emergency expenses, but now the bill is here, and you aren’t sure how much you should pay. You might be tempted to only pay the minimum, and use the extra money to buy those sunglasses, but the reality is that paying only the minimum you owe will end up costing you more money because of the incurring interest. Aim to pay the full balance you owe every month, and you can avoid ever playing catch up with interest again.

Don’t miss a payment

You try to be responsible, and pay the full amount each month, however, if one month you can’t afford the full payment, then you might be tempted to skip the payment, and try to catch up next month, but this isn’t something you should consider doing. The consequences of skipping a payment could be a damaged credit score, a late fee on top of your monthly bill, and an increased interest rate. If you can’t make the full payment, then be sure to try to pay at least the minimum as the consequences for missing a credit card payment can be catastrophic.

Watch out for credit card fraud

Credit card fraud affects millions of people each year, and everyone is a potential victim. With people using their credit cards more often, it can be convenient to reach for the plastic and type or swipe almost anywhere, but this is something you should avoid doing flippantly. How and where you use your credit card matters, so be careful to guard yourself against credit card fraud. There are many steps you can take to prevent credit card fraud:

  • Keep your credit cards secure on you at all times.
  • Choosing a bank that also allows foreign payment, like mach, the best bank in Malaysia.
  • Only use your credit card in places you trust.
  • Destroy any documents that reveal information about your credit card.
  • Set up a push notification system on your smartphone to alert you when your credit card is being used.

Are Gold and Silver Bars A Good Investment?

Gold and silver bars are a good investment for anyone who believes they must begin investing today. The bars are one of the simplest ways you may choose to invest, and they will help you begin to stow away money that you may use in the future for a number of other things. You have many choices to make, and you deserve to make choices that will reflect well on you and all the investments you plan to make. You should start to invest in gold because you know it will protect you, and this article explains the level of care you feel with gold.

#1: Gold and Silver Bars Are Something Everyone Knows

You may buy silver and/or gold bars because they are a common practice in the modern day. You may choose to invest in them simply because they are easy to use, and you will notice how easy they are to use when you have one or two in your possession. You will have something of high value that other people want to use or buy, and you may sell them at any time because they are popular enough for you to use for profit. You simply need to know when the right time to sell is.

#2: Choosing To Sell

You may sell the bars today to make money, and you will have a large profit waiting for you. You will continue to earn money when you sell other bars, and each of the bars you sell will be much easier to manage as you will see the price on the market rise. You may not realize how much money there is to be made, and you may leave the bars for the future.

#3: Allowing Them To Mature

You may let the bars to mature simply because you can, and they will rise in value quite a lot because you waited for them to mature. You will save money on the gold bars, and you will feel as though you are saving money that you will get back in the future. This is a common investment strategy that you may use, and you will find that you are getting all your money back when you sell your coins many years down the road. The money that is spent now on gold bars will represent a multiplied earning that you get in the future.

The future of your investments must rest on the gold and silver bars that you have purchased, and you will find many of them are helpful as you begin to build your nest egg. You will find there are many things you may do when you are ready to invest, and the first must be buying gold bars that you will keep for many years to come. Each gold bar will give you a rising value that is easy to cash in on when you come to a broker to sell.

What exactly are private equity high yield real estate investment funds?

High yield real estate investment funds are types of resources that are found from conservative investment principals and the belief that an investment will give high returns for accredited investors than gambling on Wall Street business, as well as meticulous underwriting standards. These types of funds are available from Limited Liability Companies (LLC) such as ALPM (A Partners Management). The company’s purpose is to pursue top-market returns for its clients and investors by investing in a robust and steady real estate business. High yield estate investments funds have a different percentage of return on investment base in a single transaction. The rate of ROI depends on the company from which you are receiving the funds. For example, a transaction with ALPM always results in a return on investment that is greater than 12% annually.

What makes private equity yield real estate investments funds attractive?

One of the key drivers of the growth of private equity funds is the increase in valuations of real estate. The assessment has resulted in the significant rise of the portfolios that are held by the managers of the funds. Also, the private equities that release these funds focus on the superior risk that can be adjusted by the yield. The objective of the private equities is to give an attractive capital, funds and investment structuring, quality investment opportunities, and exit strategies. Currently, private equity yield funds have seen a growth in net asset value (NAV) for the 17 straight quarters, therefore resulting in annualized returns of 17% within the first three years of doing business. However, private equity investing is not available to ordinary investors. Most of the firms that deals with these types of investments typically look for investors who can commit to funds that amount to $25 million.

Understanding the J-curve of the private equity high-yield real estate investment funds

According to the J-curve of private equity funds, the internal rate of return (IRRs) are always negative at the first years of the funds’ life but increases with time as the funds continue to be exited, and then stabilizes in final years. The trend of the IRRs is always in the form of a J-curve trajectory. The behavior of the curve explains why the PE funds give some trenches for new investment opportunities

Advantages of private equity funds

Private equity funds come with a lot of benefits such as diversification, steady current income, security in case of the capital stack. Diversifying on a large pool of loans make it possible to optimize on the predictability of the loan performance. When it comes to steady current income, it is feasible to receive a high yield income on a monthly basis. The steady current income can also be achieved in a yield-starved investment climate. In the case of a capital stack, an investor who has received private equity funds before has a superior real estate portfolio than a new investor.

Which is the best option: Private lending or Real estate crowdfunding

You need to have a properly researched plan for raising capital for your real estate project to make it a success. When it comes to financing your real estate project, you can either go for. Private lending or Crowdfunding. So, this article will explain which way should you go for:

Private lending:

In the case of private lending, you take the loan from a high-net-worth private party to raise capital for your real estate project. They charge a very high rate of interest in comparison to banks. Also, the amount of loan you can raise and the interest on the loan also depends on your credibility on the market. Private lenders usually have some staff to help you during the project.

Real estate crowdfunding:

This is the entirely a new concept of lending money for a real estate project wherein multiple investors contribute money for a single loan and share the profits in the ratio of the amount contributed by each one of them.

In this case, crowdfunding companies invite multiple investors to lend money together to a single project. So, if you need the money for your project, you can go to a crowdfunding company and submit the details of their project with them. Once the project is approved by the company, they list it on their website inviting funding so that whosoever is interested in investing in the project can pool in the money with other investors. The money is raised in just a matter of days under crowdfunding.

Some of the crowdfunding companies offer loan at specified rate of interest for all the projects whereas some of them charge a different rate of interest depending upon the risk involved.

Which one to choose:

In most of the cases, it is witnessed that the default rate of interest on the finances raised through crowdfunding is higher than the direct lenders. The rates of interest in the case of crowdfunding are generally higher due to lack of support in times of trouble. When there is any problem faced by you after closing the deal in crowdfunding model, there is no way to work things up with the investors. But, you can contact the private lender any time you want in case of any issue.

Throughout the project, you might have hundreds of questions regarding appraisals, legal issues, etc. that need to be answered. In this case, private lenders are just a phone call away to answer all your queries and provide all their support for successful completion of the project. Even though crowdfunding will help you raise money quickly and simply, but you cannot expect such support from them in future.

In case you need more money for your project, then you can easily reach out to the private lender and make him understand your situation in comparison to the crowdfunding investor.

Private lending is a much better option of funding than crowdfunding. You can build a long-term relationship with a private lender whereas, in the case of crowdfunding, the investor does not even know whom they are investing for.

Getting loan to finance real estate projects

Capital is utmost part of any business. No business can survive without sufficient capital. Even, for a successful real estate business, you need to have sufficient funds so that you can invest in the best deals. Real estate business is very risky, one need to have a detailed plan for the finances to get the business funded.

If you want to raise sufficient finances for your real estate business, then it is very important that first, you invest sufficient capital yourself. Your liquid assets should become part of the capital for your real estate business.

After your own investment, you can start looking for capital from outside. Firstly, make a project for your real estate business. This will help you to know about the specific requirements of your project. Now, you will have an idea of how much capital is needed and the estimated profit you will make with this project. Now, you can discuss your project with the outsiders to raise capital for your project.

Here are the few options by which you can get loans for your real estate project:

  • Loans from private investors:

You can take loans from private investors by paying them interest. They will finance your project only if they are satisfied that their money will be returned back in time. The amount of loan that you can raise depends on your relationship with the private lender and your credibility in the market.

So, make sure you always make timely payment of interest and principal amount to maintain your goodwill in the market.

They usually charge a very high rate of interest in comparison to other financial institutions.

  • Personal Loans:

You can also take a personal loan to raise capital for your real estate project at a specified rate of interest from the bank. Also, you can take a loan from the bank at a variable interest rate, from rates ranging from 12 to 22 percent.

  • Mortgage loans:

In the case of a mortgage loan, you need to mortgage the property against the loan. You need to have real property to avail this loan. So, in this case, the interest rates will be slightly less but, if you are not able to timely repay the loan, your property will be taken over and auctioned by the bank to recover the money.

  • Credit cards:

If you are having a credit card with a very high credit limit, then you can use that to fund your real estate project. For this purpose, you should make a good credit history by paying your credit card bills always on time.

For making your real estate project success, you need to do good research and planning before raising the capital for the same.

A little bit about Emafil Financial Group

The Emafil Financial Group is one of the leading professional financing firms.

We are working with the aim to provide our customers with all the finance solutions in all the areas.

We are making sure that all our customers secure better future for themselves without worrying too much about the finances.

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