Commercial Loans

How To Obtain Finances For Construction

Most people are aware of the construction mortgage. This is a financing option meant for construction purpose. The two types of mortgages include progress draw construction and completion construction mortgage.

Completion construction mortgage

This loan is used for purchasing a complete house or building. The builder usually fixes the price of a complete house.Types of completion construction loans include the following:

Purchase plus improvement

This is a loan which is used in purchasing a home which requires being taken care of. The house bought using such loan requires periodic improvements by a contractor. The contractor makes the improvements on the building once it is purchased until the owner is satisfied.

 

 

 

All-in-one construction loans

These are types of loans which are offered to you at an affordable rate both for the construction process as well as catering for the after construction activities. A penalty is charged on these loans in case you do not pay it within the set time limit.

Both the purchase and all-in-one construction loans share the following features.

  • The builder can only request for money once the construction process is 100 % complete.
  • The builder must have ownership of the plot where the building or home will be built.
  • The lender might require an appraisal during, before or after the construction process. This is done to ensure that the amount applied for is worth the home being constructed.
  • A down payment must be made. These can be done in the form of instalments
  • There is no administration fee which is required when arranging for financing since the loan amount applied for is equivalent to the resale value of the property mortgage.

Before the mortgage loan is approved, you are required to present the following documents to the lender, they include:

  • Working drawings and the house plans
  • An appraisal which indicates the final property value after the construction process
  • Site plan showing both the dimensions and legal description of the property
  • A duly signed copy of the building contract. This document is signed by both the contractor and the owner.

Progress construction loan

This loan is applied when someone is constructing a home using a personal general contractor. These funds are applied at three stages during construction: when your building is 35 to 40%, 65-70% and when it is 100% complete. The interest rates associated with these loans are usually high the traditional mortgage.

The following documents are required when applying for a progress construction loan.

  • A genuine copy of the land contract
  • Copies of all the sub-contracts to confirm the cost of construction
  • A resume to confirm that the hired contractor is knowledgeable about the construction process.
Wealth Creation

Using Computers To Create Wealth

The usage of computers has greatly revolutionized the way human beings work. Also, these devices have provided human beings with diverse earning opportunities for supplementing their monthly kitty. One just needs a good computer and internet connection to make money from home. It is very convenient when you are working from home. This article is going to discuss some of the effective ways that you can adopt to create money or wealth using your computer.

Blogging

You can work as a blogger. This involves sharing your thoughts in the form of writing. People share ideas from their field of expertise. This can be about parenting, cooking, movies or literature, interior designing and much more. WordPress is one of the platforms which you can use in creating a free blog. You can then monetize your website once it has enough content up.

 

You can get money by selling the ad space from your site. Another good alternative is running a personal blog. This is a website which is content based. You can give such a website a professional touch by simply buying a paid website which has an established domain name.

Selling

You can use your computer to turn a hobby into an income generating activity. This involves making some unique products and then selling them online. You can then set up you seller’s account on Etsy, eBay or Amazon. Etsy is one of the best places for selling hand-crafted items. It might take you time to build a good online reputation. However, you will be in a position of making money seriously once you have established a store which is actively running.

Apart from selling new, items, one can also trade second-hand goods which are in usable condition. These goods include clothes, books, and home appliances. Someone can also sell services like proofreading, content writing, proofreading and web designing.

Affiliate marketing

This is one of the best methods used for creating wealth online. You just need an internet connection and a computer. It is a good method of generating income. This is a financial set-up used by the affiliate in promoting a merchant’s product. A commission is paid to the affiliate for every sale or clicks made through the affiliate link.

 

Virtual assistant

The cost involved in running a business has increased substantially over the past few years. This has compelled some of the operators to outsource some of their tasks of activities however important they are. A virtual assistant operates like an independent operator. They work like freelancers. Some of the business tasks which are outsourced include social media management, calendar management, and transcription services, making travel arrangements, email management, and bookkeeping.…