Sunday, October 14, 2012

Albuquerque Lawyers Pre-settlement Lawsuit Funding

The cost of litigation in a personal injury lawsuit can be financially devastating for plaintiffs, not to mention the time involved in reaching a final settlement. Sometimes, cases drag on for years. If the injured person is unable to work and has expenses for ongoing medical care, they may need money long before their lawsuit settles.

One way of obtaining funds is through pre-settlement funding, which enables plaintiffs to make ends meet without worrying about financial ruin.

Pre-settlement litigation funding is provided by a funding company to a plaintiff prior to a final settlement. The main focus of a lawsuit funding company is to provide cash advances to cash-strapped plaintiffs, who find their physical and financial lives turned upside down by an accident injury.

Funding companies are very selective in choosing cases to fund as the money they provide is offered as non-recourse funding, meaning plaintiffs only pay back the money, plus fees, if they receive a monetary settlement, and they only have to repay up to the amount of their share of the settlement in the event that the settlement is smaller than anticipated.

The loan company will do an assessment of the case to determine the likelihood that it will be decided in the plaintiff's favor. Based upon the information provided, the company estimates the value of the eventual settlement, and offers a cash advance to the injured person based upon that estimate.

The fee may be a flat fee, or a monthly fee that accrues each month the loan is outstanding. When the case settles, the loan and associated fees are paid to the loan company. For legal reasons, these advances are not characterized as loans and a lawsuit funding company is not part of a law firm.

Due to the risk involved in non-recourse funding, the fees associated with it can be significant and there are some attorneys who advise their clients against it because it is expensive and they do not want this burden to possibly compromise their case. These attorneys feel that if lawsuit funding does become necessary, it should be obtained in the smallest amount possible, not for any amount the plaintiff desires. Pre-settlement funding is serious business; it is not "fun money".

Fees will vary depending upon the company and the type of case. Some companies will fix the fee for the advance up front. Others will charge a monthly fee for each month between the time the funding is issued and when it is repaid, sometimes as high as 15% per month.

Litigation can take a very long time. Given the fees involved in pre-settlement funding, it is important for injured people to consider all other possible alternatives beforehand.

An obvious question might be why can't injured people borrow money from their lawyers? State bar associations prohibit this because when a lawyer becomes a creditor to a client, a conflict of interest is created that could interfere with the attorney-client relationship.

In order to avoid laws against charging excessive rates of interest (usury laws), the funds you receive from a pre-settlement funding company will not be described as a "loan". Other terms are used, such as "cash advance", 'investment", or "venture capital".

Technically, as the contract is not to repay the amount received but is instead a promise to pay a portion of any eventual verdict or settlement, plus a fee (which may never occur). No matter what happens, a person who receives pre-settlement funding keeps the full amount of the advance.

Because of the high cost involved, any decision to accept an advance should be made very carefully. Fees will vary, so when seeking pre-settlement funding, it makes sense to check with several companies, to obtain the lowest possible fees.

Friday, October 12, 2012

Retirement Investment Ideas - How To Get The Biggest Payoff

You have done your share. Now, it is almost your turn to shine and feel relaxed after so many years of toiling and sowing greener fields just to earn a living. The next thing you have to worry about is to how you will put your money to good use so you can maximize how much money you will have during your retirement. For many aspiring retired persons the best action to take is to make a retirement investment. As a wise investor, you have learned already the importance of understanding risk and rates of return, asset allocation and diversification. So what are your options?

1. Real Estate

There are five things to consider before opting for this kind of retirement investment plan:

- Location
- Market value
- Structure
- What entity is selling it
- Financial standing.

According to some financial experts, real estate is an ideal retirement investment vehicle because it usually appreciates in value and can provide you with a steady cash flow. You may also use it to leverage for loans. Properties with delinquent accounts and those about to be foreclosed are usually sold 10% to 60% below their market value. That is why real estate can be good retirement investment for you. Before you buy real estate as your retirement investment, however, be sure to check first the property for any defects and see if you can get good returns.

One good advice for this kind of retirement investment plan is to buy the worst property in the best location - but remember that the real estate sector is always first to be affected by political instability or an economic downturn.

2. Bank And Trust Products

If you have good tolerance for risk, you may opt for a retirement investment on non-guaranteed funds or trust products for higher yields. Common trust funds pool resources from various investors and then invest money in mutual funds or stocks for higher earnings. If you want to play it safe, make retirement investments in government securities, bank products or guaranteed funds. These are very likely to give you stable returns, with of course the huge downside of much lower yields for your investment.

3. Art

You may have your retirement investment in art pieces that will become more valuable over time. If you are not sure about your ability to tell good art from bad, hire an appraiser to help you. Depending on your preferences, you may have your retirement investment in anything from jewelries, antique furniture and decorative arts like porcelain and saints. You may also place your retirement investment upon paintings, either from new or upcoming artist. Or you may also make your retirement investment in gathering collectibles such as stamps, paper money, comic books, or action figures. Just remember that placing your retirement investment in art objects can be expensive, and they may require maintenance. Also, art pieces are perhaps the most difficult to sell.

4. Life Insurance

You may still opt for this kind of retirement investment vehicle. Older people would still want to have their retirement investment placed on life insurances. In fact, many are investing in whole life plans because the premiums are generally lower, though, it varies according to one's age. There are, however, also short term plans for those that are paid in a shorter time frame and other life insurance terms to choose from. Just remember, before you place your retirement investment on life insurances, check the insurance company first before buying it. Make sure that the company will still be around when your policy matures or if you or your benefactors will need to file claims already.

Monday, October 8, 2012

Loans For Bad Credit - An Alternative When Everyone Says No

Loan for bad credit is a part of payday loans meant for short time span. This scheme is a helping hand for the UK population who is suffering from bad credit history. It is a perfect solution for those people who are facing the problem of disapproval of loans just due to bad credit history. It is quite convenient for the borrower as it don't take much time in approval. In just 24 hours after the approval of the application form money will automatically transferred into the personal account of the needy.

Some of the features of Loans for bad credit -
This facility is specially introduced to meet the sudden expenses in between the consecutive paydays.
It is short term in nature and repayment time of 15 to 31 days.
Borrower can take amount ranges up to 1500.
It is offering the easy procedure with flexible repayment option.
You can borrower money as per your need.
It takes less time in approval and doesn't involve any credit check.


Whether you need money for shopping or to avoid utilities bills, car repairs or overdrafts, all troubles can be solved through this credit. In this scheme, the lenders don't pay much attention to the credit history of the borrower.

It is only way from where you can acquire fast and quick cash. There is a simple eligibility criterion to take advantage from this loan. The borrower should be a permanent resident of UK and should above then 18 years of age. The applicant must have a regular source of income with an active account in bank. It is an admirable fiscal help to solve the cash crisis in an emergency.

Saturday, October 6, 2012

How Home Equity Works

Your home equity is the appraised value remaining in your house after you subtract the remaining balance you owe on your existing mortgage(s). It can be thought of as the part of the house you actually own instead of the bank: the part you've paid for so far.

It isn't difficult to build equity in your home, and chances are if you've owned your house for a while and have been making your regular mortgage payments, you probably have built a considerable amount of home equity already. Though the housing market rises and falls in cycles, the overall tendency is consistently upward. In other words, property values tend to rise over the long term.

How Can Home Equity Be Used?

Once you have equity in your home, you can start to use it to fund nearly anything you want or need. Having equity in your home puts you in a powerful position, as you can use it to qualify for credit and borrow money. Buy a new car, take that dream vacation, fund a college education, make renovations and improvements to your house. Whether to pay for an emergency or finance a dream, there are two primary ways to tap into the wellspring that is your home equity: a home equity loan or a line of credit.

What Are Interest Rates Like?

A good question to ask before borrowing money from any source is: how much is it going to cost in the long run? Because your house is being used as collateral on the loan or line of credit, the risk for the lender is considerably lower, and therefore interest rates on these loans are usually lower than the average interest rate on a credit card.

Home equity loans and lines of credit are, however, usually higher than the interest rate on the average fixed rate mortgage. And in general, home equity loans usually have lower interest rates than lines of credit.

What Are Some of the Other Benefits?

As if borrowing money weren't advantage enough, there are a bevy of other benefits as well, including:
* tax advantages (in many cases, interest paid on home equity loans and lines of credit are tax deductible)
* you can use equity to build more equity (if you tap into home equity to make improvements to your home, you raise your home's value, thereby building more equity)
* debt consolidation (you can use it to pay off higher priced loans or debt)

Thursday, October 4, 2012

Qualify For A Multifamily Commercial Mortgage

Your Multifamily Commercial Mortgage.

A Multifamily property eligible for commercial financing is defined as a structure having at least 5 or more units with the residences for permanent habitation. The major factor in determining if you can qualify for a multifamily property commercial loan is based on the property itself. These some key criteria of a multifamily commercial property to make the property eligible for financing:

The Property Condition.

1. Signed leases with terms of 1 year or greater.
2. What are the number of bedrooms and bathrooms.
3. What is the history of the vacancy rates.
4. Do the units have separate utilities to bill the tenants directly.
5. Is your commercial multifamily property professionally managed.
6. Is there any deferred maintenance, property damage or functional obsolescence to address with the property.
7. Does the facility have a pool, clubhouse or tennis court and other amenities.
8. Is the property close to employment, education, shopping and attractions with public transportation and access to major streets and expressways nearby.

Not only are these characteristics important in determining if the property qualifies for financing, these are major factors in determining the value of the property.

The Property and Income.

In addition to the condition of the property the income as compared to the expenses of the property is key to determining both the value of the property and how much mortgage the property can qualify for. The greater the income is in relation to expenses qualifying for a commercial mortgage becomes easier with more options available. The best rates are offered by the lenders that are both conservative and accept the least risk. The most conservative lenders require 1.5 times the income to the expenses to qualify for financing. If property is in good condition and it has a little less income there is still financing available down to as low as 1.1 times the expenses.

The Management Company.

The experience of the property manager is also a consideration to financing. If you have purchased a commercial property or are considering doing so and you are not experienced owning or managing the multifamily properties it is essential to hire professional property management. The larger properties having a property management company is not even a second thought. When considering smaller units you may believe they are an unnecessary expense, but professional property managers increase your ability to qualify for funding your commercial project if you do not have management experience.

The Owner.

Often times for larger units the financing is based solely on the property. But for smaller multi family projects the lenders require a personal guarantee and the review, income, credit and assets just like a residential investment property. The typical down payment required is 20% to 30% for properties and the lender requires the borrower to have reserves for repairs, vacancies and other contingencies.

The Loan.

Multifamily commercial loans are generally structure with terms written with 5, 7, 10, 15, 20, 25, and 30 years terms with or without balloon payments. For this type of commercial loan expect to provide full documentation including:

1. Last 3 years property operating statement
2. Year to date property operating statement
3. Property rent roll
4. Last 3 years federal tax returns of borrower 5. Personal financial statement(s)
6. Digital photos of the subject property

There are multifamily commercial mortgage products that can help people with significantly impaired credit, these have higher commercial loan rates. For borrowers with great credit and assets that deserve the best rates, funding is also available .