How to Become a Loan Shark – Investing Wisely

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There are many people, some right next door to you, who need money but cannot get a traditional loan. And, you, may have just what they need – money. If you are one of the few people who have learned how to manage your money and have saved throughout your life. You might be a good candidate to learn how to become a loan shark. This is a person or even a group of people who allow individuals to acquire high interest rate loans. Loan sharks tend to have a bad connotation. However, if you are fair and do not threat or blackmail your customers, then you are more than likely going to be very successful as a lending shark.

When learning how to become this type of lender, you will need to know a bit about marketing. This is because people will not know you have money unless you get the word out there that you do and that you want to make it useful. While you are getting out the word that you have money to loan do not disclose the interest rate. This piece of information could potentially scare off future clients as well as prevent them from even seeing the services that you are willing to offer.

As the current economy is declining, it is not easy for many people to receive traditional loans due to bad credit. Many times people need money for emergencies. This is the reason you need to be fully aware when learning how to become this type of lender. You want to know how to correctly read people and find if their need is real or not. Of course, if they are deeply in debt to other lenders, you will more than likely never seen your money again and you have not made a good deal.

There are successful lenders out there who can help you learn how to become a loan shark. However, every situation is different and you need to determine who the right borrower for your money is. This is because you worked hard for the money that you have and would not like to lose it to a scam. This can be a great investment and can truly bring you a hefty return if you do it right. As a lender you can truly make a difference in someone’s life that may have to help you sometime in the future.For more information on investing in investment opportunities usually or normally not found in the marketplace, click here!

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Original article by Sean L Johnson

Stock Market 101 – What is the S&P 500 and What Does it Represent?

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The S&P 500 is a stock market index that consists of 500 large-cap companies from a diverse range of industries. The index is owned and maintained by Standard & Poor’s (S&P), which is a division of McGraw-Hill. S&P 500 is part of two larger indices, S&P 1200 and S&P Global 1500.

All of the corporations included in the S&P 500 are traded in the two largest US stock markets – the New York Stock Exchange and the Nasdaq. The 500 corporations in the S&P are seen as leaders in their industries and therefore are among the most commonly watched stocks in the US stock exchange. Some companies included are Exxon Mobile, AT&T, Microsoft and Procter & Gamble.

It was created on March 4, 1957 as an expansion of the pre-existing S&P 90. Advancements in computer technology at the time made the index possible by calculating and disseminating the index in real time. Since its creation, the S&P 500 index is often used as a benchmark to indicate the future of the market and the US economy. At one time, the Dow Jones Industrial Average (DJIA) was the most notorious index for U.S. stocks, but because the DJIA contains only 30 companies, most people agree that the S&P 500 is a better representation of the U.S. market.

The companies that are included in the S&P 500 are selected by the S&P Index Committee. The majority of companies that are included in the index are American based, but there is a small number of international companies that are widely traded in the U.S. In the future, the Index Committee has announced that only U.S.-based companies will be added though. The S&P 500 is a market value weighted index – each stock’s weight in the index is proportionate to its market value.

There are two ways that you can invest in the S&P 500. The first is by buying individual shares. The second is by buying shares of an exchange-traded fund (ETF). One form of an ETF is known as SPDRs or Standard & Poor’s Depositary Receipts. The average daily volume of trading of SPDRs is the highest of any US stock at over 200 million shares each day. Another form of ETF are iShares S&P 500, which are similar to SPDRs but they include equal shares of all members of the index.

Widely regarded as the best single gauge of the U.S. equities market, this world-renowned index should be watched if you invest. Although the S&P focuses just on the large cap segment of the stock market, it is also an ideal understudy for the total market. The indicies can be used as building blocks for your portfolio creation.

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Original article by Christine Abbate

Non Performing Loans Vs REO Bank Owned Property – How Do They Differ?

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To make real estate investing work for you, you must always take into consideration economic conditions that dictate which type of real estate investment is the best choice at any given time. Do you know your basics? What are Bank Owned REO Properties or non performing loans? What is the difference between the two? It is quite simple really.

Both non-performing loans and Bank Owned REO Properties are the unfortunate children of economic fall down. As economic crisis takes swing so does losing homes as struggling homeowners cannot keep up with loans and mortgages.

An adaptation of the well know children rhyme “First comes a non performing loan then a foreclosure” does well to illustrate the progression of distressed property handling and the major difference between the two concepts. Whereas they undoubtedly trod the same road, the difference in how far along the road each is.

Say a homeowner cannot afford to pay a loan anymore. First month the bank lets it slide. The second month, they mail the letter. The third the gavel comes down – the property has been declared a non-performing loan. For all intents and purposes non-performing real estate loan is a property loan that has defaulted or is in danger of defaulting when homeowner cannot make payments any longer. With some exceptions, three months is all a homeowner has to turn over the dough before his loan is declared non-performing. And current economic conditions being as they are, non-performing loans are sprouting like mushrooms after rain. Financial corporations specializing in non performing loans will help with purchasing a loan that best fits individual financial portfolios. By liquidating involved assets they can realistically provide a good value. But not a 50% discounted price. Not with complementary property repairs. Not bulk. And certainly not without tons of paperwork and fees. None of the things Banks Owned REO can and will do to move the sale along.

Bank owned REO property, on the other hand, is the next step in the distressed property timeline. No payment on a property loan will sooner or later result in “walking the plank”, in other words the dreaded foreclosure. Foreclosure unceremoniously plunks down distressed property to the auction table. Properties that cannot be auctioned off it end up as Bank Owned REO Properties. With current economy banks have a veritable tsunami of real estate properties coming their way. Wildly scrambling to regains at least some money and clear the books, banks sell Bank Owned REO Properties like tomatoes on local market, at a discount, liens and other expenses on the home removed.

While both are viable options for a real estate investor, everyone wants to buy where a deal is better. And in real estate, affordable, bulk, plenty and flexible of Bank Owned REO is a far better than a sometimes, costly, and rigamarole non-performing loan.

And who wouldn’t go for a deal that will brings maximum profit on a minimum investment, fast.

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Original article by Mark Bradley