Borrowing To Invest In Stocks And Shares - A Risky Tactic?

Author: Tosif Patel

In the heyday of the stockmarket boom of the 1990s, there were regular stories of investors making massive returns in a matter days. This was in the period of the so called “technology bubble” but as with all bubbles, it finally burst with serious consequences for many investors. Can borrowing to invest ever really work?

While the strategy of using borrowed funds to invest is always going to be a risky strategy, there are ways in which you can reduce the risk. If you decide to take this path, you should consider the following factors :-

Level Of Risk

Before even looking into borrowing to invest, you need to consider what level of risk you are willing to take, and what investment return you are looking for. With a higher return comes a higher risk, so you need to find a suitable balance for your own personal situation.

Term Of Investment

While long term investments are often more lucrative, and deemed to be less risky by many, there are risks with any investment. Stocks and shares are notoriously volatile with many factors contributing to any future change in share price values - some of the factors are out of control of even the directors of a particular company, e.g. world recession, terrorist threat, etc.

Asset Backing

Many investors who look to borrow to invest will already have assets behind them, which they can fall back on in the event that the “funded” investments do not work to plan. This is perhaps the best form of financed investment, but whether you choose to go ahead with or without backing - you will ultimately pay the price if it all goes wrong.

Experience

Do you have the expertise, or know of suitable advisers, which will increase the chances of you being successful? Many people who struggled in the aftermath of the 1990s did so because they were “following the crowd” without the necessary experience. This show of “irrational exuberance” is often a sign that a stockmarket is becoming over heated.

While it is true that many investors have made big money from “funded” investments, it is not suitable for everyone. It is difficult enough to make suitable investment returns with “free money”, never mind with the extra pressure from using borrowed funds. Unless you have the experience and nerve to take in the good and bad days , you should think twice about entertaining the idea.

Stocks and Shares UK Loans

Georgia Home Equity Loans - 3 Ways to Borrow from Your Equity

Author: Jane Hale

Homes in Georgia are an excellent investment. The cost of living is low and property taxes are notoriously low. This makes it easy to build equity in your home and capitalize on your investment. If you have been thinking about borrowing from the equity in your Georgia home, you have three basic options. Each has pros and cons. Before making any decisions, read about each of the options to see which best suits your needs.

Georgia Home Equity Loan
A home equity loan provides you with cash in one lump sum and works a lot like a second mortgage. Normally, these types of loans are easy to obtain and have low interest rates. When getting a Georgia home equity loan, you can borrow up to 100 percent of your home's value—minus what you still owe on your first mortgage.

Georgia Home Equity Line of Credit
If you aren't sure exactly how much you need to borrow or if you want to avoid getting your money in one lump sum, you will be better served with a Georgia home equity line of credit. Unlike a loan, a line of credit is revolving. This means that you get approved for a specific amount and then borrow at you discretion up to that amount. Rates may be a little bit higher, and may also be variable, giving you fluctuating monthly payments.

Georgia Cash-Out Refinance Loan
The third way that you can borrow from your equity involves getting a Georgia cash-out refinance loan. In this case, you refinance your current mortgage and borrow more than you owe on the home, allowing you to pocket the difference. Lenders will usually let you borrow anywhere from 80 to 100 percent of your homes' value.

Visit Georgia Lending Center to see our Top 3 Home Equity Lenders in Georgia, whether you are looking for home purchase, refinance or a home equity loan.

Bad credit car loans: Customised for borrowers with poor credit record

Author: julissa miranda

The reasons responsible for bad credit record are County Court Judgements, defaults, bankruptcy, arrears, missed payments etc. Whatever the factors behind one's bad credit record it certainly washes away his good image in the lending market and weakens his credibility as a borrower. In such circumstances, the chances of availing traditional lending options become faint. So, it remains better to go for customised options, which one can avail in spite of his adverse credit history.

In this way, if you have a poor credit score and want to take a loan to purchase a car, it is better for you to take bad credit car loans. It is a customised loan, so there will be less chance of getting rejected forthright. Lenders of such loans will consider your application carefully and try to offer you the loan that suits your need. There is no need to think that they are there to help you. In fact, they need your business more than you need the loan. So, getting a car loan will not be that much difficult even though your credit record is poor.

You can take bad credit car loans by offering collateral or without offering collateral. If you can offer collateral then getting approval for the loan will become easier. In this loan the lender has no risk of losing his money. He can recover his money even if you fail to pay off the loan amount. In this regard, he will take possession of the collateral and use it to recover the unpaid amount. So, you will have not only an easy approval but also flexible repayment terms and conditions.

If you are not in a position to offer collateral then the unsecured bad credit car loans will be your only choice. This loan does not necessitate any collateral. Hence, it remains accessible equally to homeowners as well as tenants. Both types of bad credit car loans will be more cost-effective that the other methods of car finance - dealers, manufacturers at all.

About the Author

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting adverse-credit-car-loans as a finance specialist. For more information please visit:http://www.adverse-credit-car-loans.co.uk

Commercial Mortgages - Four Important Strategies for Small Business Borrowers

Author: Stephen Bush

What are the most important qualities to look for in small business commercial mortgages? This article describes four such qualities. But if a commercial borrower can't find all of the commercial mortgage qualities that are considered most important, then which qualities should be viewed as the most critical? The answer to the latter question will often depend on the borrower's unique individual circumstances. For some borrowers there may only be one or two critical qualities that will be essential to the success of their loan. For example, if a commercial borrower needs to refinance a business property and get $1 million in cash to do with as they choose, the ability to get unrestricted cash out will probably supersede the four loan strategies addressed below.

Aside from special situations like that, the following advice about four important strategies is based on commercial mortgage qualities considered to be repeatedly critical to the long-term success of a business. There is no attempt to rank these four commercial mortgage strategies in any particular order.

ONE:

Commercial mortgage borrowers should seek out long-term commercial mortgage loans that are not subject to recall or balloon payments. Commercial properties should not be financed with short-term funds. It is essential to obtain long-term financing of at least 15-20 years (and longer is even better). This is a prime example of using contingency planning to help commercial borrowers adapt to unknown future circumstances. Commercial borrowers should expect to encounter higher interest rates for longer-term financing (when compared to short-term traditional bank loans). However, most commercial borrowers will be pleasantly surprised when they see lower monthly payments in spite of a higher rate. The resulting improvement in positive cash flow can be the critical difference that creates a truly successful business investment.

TWO:

Commercial real estate loans under one million dollars should be assumable. This strategy is primarily about flexibility and providing for a more orderly transfer of a business to someone else in the future. It is also an example of using contingency planning to select a commercial lender by anticipating future circumstances and selecting a commercial real estate loan that will help a commercial borrower adapt to those circumstances.

THREE:

Seller seconds and other variations of subordinate financing should be allowed. This will permit the most aggressive Combined-Loan-to-Value (CLTV) for commercial mortgages, up to 95% of the property value. This is important if you are the buyer because it will provide another financial tool to help with financing. It is important to the seller because it might enable someone to buy the property who could not otherwise do so.

FOUR:

Commercial mortgage borrowers should seek out lenders using Stated Income commercial loans and limited documentation requirements. Very few traditional banks use Stated Income (no income verification and no tax returns) for a commercial real estate loan. Most commercial lenders will perform a thorough income verification as part of their underwriting process. This will typically include copies of tax returns as well as a requirement to sign IRS Form 4506 which authorizes the lender to obtain tax returns directly from the IRS. Many traditional banks will have loan covenants stipulating that the lender must receive financial data even after the loan closing and that the loan can be recalled if the audit of this data is not satisfactory to the lender.

Copyright 2005-2006 AEX Commercial Financing Group, LLC. All Rights Reserved.

Stephen Bush is the Founder and Chief Executive Officer of AEX Commercial Financing Group, LLC ( http://aexcommercialfinancing.com ). Steve provides commercial financing assistance throughout the United States and is the publisher of The Commercial Mortgage Loans Guide ( http://aexcfgllc.com ) and The Credit Card Receivables Guide ( http://aexcfg.com ). Information about enrolling for a free online seven-part Commercial Mortgage Course or a free online six-part series of Special Commercial Financing Reports is available at all AEX Commercial Financing Group, LLC websites. Steve can be reached by phone at (937) 502-1345 or toll-free (888) 593-3951.

Fast Cash Loans - When You Should Borrow And When You Should Wait

Author: Carrie Reeder

A fast cash loan should be an option used as a last resort to avoid a financial emergency. With its interest rates, a cash loan should not be used to purchase the latest gadget or fashion item.

Avoid A Late Payment

A late payment can cost you more than just a late fee; it can raise your interest rates on credit cards and future long-term loans. Higher interest rates on a car or home will cost more than a few dollars for a cash loan. While you shouldn't make it a habit to pay bills with a cash loan, it is better than missing a bill payment and lowering your credit score.

Skip A Non-Sufficient Fund Fee

While a cash loan fee is high, a NSF fee on a check can easily be higher, especially if the merchant charges a fee as well. To avoid these spiraling cost, make sure your checks are covered with a cash loan.

Keep Your Job

If keeping your job means you have to get your car fixed today and you are out of cash, then use a payday loan. It is better to pay the fees than lose your job. Payday loans are ideal for these types of situations.

Delay A Payment

Not all late payments warrant getting a cash loan. If you will be less than 30 days late on a bill, it will not show up on your credit score. You may have to pay a late charge though, which is typically less than the finance fee for a cash loan.

Wait On Impulse Purchases

A cash loan is not a good way to fund an impulse purchase. Even if the item is on sale, it probably isn't reduced enough to warrant paying fees on a cash loan. Instead, wait to make the purchase until you have enough money on hand.

Your decision to get a cash loan or not should be based on what is in your financial best interests. Cash loans, when used wisely, can save you from a financial emergency. Keep in mind the cost of a cash loan's financing fees when factoring the cost of your decision.

About The Author:
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of recommended payday loan companies online, visit this
page: http://www.abcloanguide.com/paydayloans.shtml

Copyright Carrie Reeder - http://www.abcloanguide.com/paydayloans.shtml

Unsecured Personal Loans - The Least Risk Way To Borrow Money

Author: Tim Kelly

For those who do not have collateral to place or do not want to risk their asset for some amount of money, what else can be a better option than unsecured personal loans? They prove to be a perfect solution for all kinds of financial problems.

Unsecured personal loans can be used for any purpose, big or small. The needs may range from paying urgent grocery bills, car breakdown, education, debt consolidation, holiday etc.

Unsecured personal loans are the most popular with people like non-homeowners, private tenants, council tenants, housing association tenants, as well as non-homeowners who are living with parents, students etc. homeowners who do not want to pledge their asset as collateral can also avail this unsecured personal loans.

Unsecured personal loans provide the following facilities:

• Easy repayment options

• Easy approval

• Comparatively lower interest rates

• Unsecured loans for any personal usage

Since unsecured personal loans are not secured with any asset, lenders charge a higher rate of interest on the amount. However the credit history, the repayment capacity have a major effect on the rate of interest and the repayment term of the unsecured personal loans.

With the unsecured personal loans, borrower can avail a loan amount ranging from the £1000 to £25,000, which has to be repaid in time span of 6 months -10 years. Borrower usually enjoys easy monthly repayment which is decided according to his monthly income. Bad credit people also have access to unsecured personal loans. Although they are considered a high risk, still they are not refused unsecured personal loans but they have to compensate for the high risk factor by paying a higher rate of interest.

For a competitive rate of interest and fast approval, online application is the best method to avail unsecured personal loans. Since there is no collateral or property check involved, it does not take time for the lender to approve the unsecured personal loans.

Unsecured personal loans are a way via which the borrower can solve his personal financial fixes, small or big, without keeping collateral for the loan.

Tim Kelly is an expert in finance having completed her LLM in Finance (Master of Laws in Finance) from Institute for Law and Finance at Frankfurt University. She is currently working with Information Personal Loans as a financial advisor. To find Unsecured personal loans that best site's you need visit http://www.information-personal-loans.co.uk/

When borrowing money is profitable

Author: An Article by Luke Due

If you save money, the money will save you

The problem with most people's finances today is that they are not getting enough income to satisfy there needs and wants. People are naturally going to buy things they want even if it means spending more than they have (credit cards), and they know in the back of their minds that they cant afford it, but they will get it anyway. I think people will develop their own budgeting scheme when their income meets their wants then they will be budgeting masters, all by their selves. But till then there will ALWAYS be people in debt no matter how much you preach!

I think a solution to some people money problem is to teach them how to make extra money first, and then teach them how to budget and save it. Americans really don't want that much; it is the hobbies that get people in trouble, bills, spending too much on golf clubs, car parts, computers, things around the house etc.

I don't know about you but this is how I feel about life. Right now, I am working a 9 to 5 job making $3200 monthly. I don't want to be stuck knowing that I will be 'working' for the rest of my life, taking orders from bosses, putting up with BS and other peoples attitude, having to get up in the morning when I want to sleep in and that fear of getting fired. Currently, I am in this situation but will not be soon. There are people right now making well over $20,000/monthly working for their selves and they are everyday people that you see walking their dog, in supermarkets or even that person arguing with the McDonalds cashier. If these people ever do go back to work for someone else they can do it "stress free" even if the job is stressful (think about that).

Before, you can work for yourself you have to decide one thing: If you really want that responsibility. If you said yes, you have gotten over the biggest hurdle and you will not be limited to the income your employer is giving you. I know what I am about to say will be over simplistic but I will save the details for you to research on your own. Here is a breakdown

1st: determine if you really want self-employment
2nd: decide what area of business you want or good at.
3rd: If step 2 requires money, their are program out there that can help you get started in internet business, selling or something else before you start in what you want to do. For example, "I want to own a photography shop but it costs $10,000 to get started. Well, if I sell product A for a year I can do it". You never know, whatever you get into before your dream business may make you $50,000 a month and you may forget all about that photography shop. I can help you here too.
4th: Research, research and do more research. Find out what you competition is. Find out how much money they are making. Find out where they are advertising. Find out what it takes to get started. Find out where your customer are etc, etc, etc..research
5th: EXECUTE!! I mean once you have confidence go do it.

They say that 90% of home businesses fail for the first time. And you may fail, but all you have to do is try and try again, please don't give up. Believe me, you will get it right and when you do, you will be very successful. The percentage of people who fail for the second and third time is much lower than the first timers.
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They say the best investment is buying a house (real estate). You are borrowing money to invest! Every year that property should go up 7%. So lets look at some figures. You buy a house for $250,000

year 0: $250,000
year 1: $267,500--------profit $17,500
year 2: $286,225--------profit $18,725
year 3: $306,260--------profit $20,035
year 4: $327,699--------profit $21,438
year 5: $350,637--------profit $22,938

------------------------Total profit: $100,637

Your profit after 5 years is $100,637 + tax benefits - repairs - local taxes - interest - your time

As we all know maintaining a house is hard work. You borrow money to invest in real estate, well why not borrow money to invest in other things such as mutual funds, hedge funds or even invest in yourself and learn how to trade money or stocks. Here is an alternate scenario. Lets say you borrowed $250,000 to invest in 5 hedge funds or managed forex account receiving 35% annually. You are charged by the bank 10% apy. So, you will receive 25% in profit a year.

year 0: $250,000
year 1: $312,500-------year1 profit: $62,500
year 2: $390,625-------year2 profit: $78,125
year 3: $488,281-------year3 profit: $97,656
year 4: $610,351-------year4 profit: $122,070
year 5: $762,939-------year5 profit: $152,587

-----------------------Your profit after 5 years is $512,939 - management fee (around 5-10% per session)

Of course, you can make more money depending on how much you borrow and the return you get. Now you see how those rich people make a living without lifting a hand. They are the ones who live the longest and have the best life!

There are risks involved with this. What if one of the trusty (SEC approved) funds you invested in suddenly runs with your money. You may be able to recover from this if you invested among many funds or programs or you are receiving high interest on other investment portfolios.

A house or real estate is your safest investment---No one can steal your house. Well sorry to talk yall half to death, I can go on and on about this stuff.

About the Author

About Author:
Luke is an independent entrepreneur helping others make money.
Website: http://home.coastalnow.net/~lukejea/
Email: lukejea@coastalnow.net

Choice of Lenders Available to FFELP Student Loan Borrowers

Author: Jeff Mictabor

According to NextStudent, the Phoenix-based premier education funding company, many parents and students may not be aware that they have options when it comes to choosing their lender for such Federal Family Education Loan Program (FFELP) loans as PLUS loans and the unsubsidized and subsidized Stafford Student Loans.

Applicants' student loans will be processed through one of two federal programs, either the FFELP program or the Direct Loan Program (DLP). With the Direct Loan Program, the U.S. Department of Education partners with the student's university to fund the student loan, while the FFELP student loan is funded by private lenders.

Taking Control of Student Loans

Typically colleges will suggest a lender if a borrower has a FFELP student loan, but students and their parents have the liberty to select any lender they choose. It is at the discretion of the borrower to select who funds these student loans for which the borrower is qualified. The Higher Education Act ensures that borrowers retain this right, and guarantees that students will have the ability to pick their lender, regardless of the recommendation of the college financial aid office where they attend.

Since the Department of Education sets the interest rates for all FFELP student loans, lenders who participate in the program are required to charge identical rates. The only difference that varies from lender to lender is in the form of benefits offered to borrowers. These benefits may include: different repayment options, special discounts for on-time payments and electronic payments, and hardship programs that allow borrowers to work with the lender until they become financially stable again.

Comparing Lenders Benefits Borrowers

Once borrowers realize they have the ability to hand-pick their lender, they can further scrutinize those companies that are vying for their business. Further considerations may include top-notch customer service and personalized attention from phone representatives. Since each lender is different, it is up to the borrower to select what is most important to them and thereby provide the greatest long-term benefits and savings over the course of the student loan.

Competitive Incentives Offered by NextStudent

For PLUS loans and Stafford FFELP student loans, NextStudent has many viable incentives and benefits including dedication to outstanding customer service, found in a personally- assigned Education Finance Advisor. This individual serves the borrower throughout the course of the student loan application and funding process. In addition, NextStudent does not require a credit check or collateral in order to qualify for these student loans.

The NextStudent PLUS loan (Parent Loans for Undergraduate Students) and Graduate PLUS student loans consist of many incentives that benefit the borrower. If a student or parent opts to pay via auto-debit, there is a .25 percent rate reduction in interest. Once a borrower demonstrates payment consistency in the form of 48 consecutive on-time payments, a 2 percent interest rate reduction is applied to the account. After only 12 consecutive on-time payments, the borrower earns a 3 percent cash rebate on the remaining principal.

There are several key items found in the NextStudent Premier Stafford student loan package. These include a 2 percent upfront cash rebate and a .375 percent interest rate reduction when the borrower opts to use auto-debit to repay the student loan. In addition, the borrower is given a 3 percent cash rebate on the remaining principal balance once the borrower has made 30 consecutive on-time payments.

When it comes to reviewing lender options, college students and parents who invest the time in reviewing what each lender offers and choose the one that best suits their needs will benefit significantly.

NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about student loans at http://www.nextstudent.com.

About the Author

Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis.

Secured Loans - Cost-Effective Borrowing Options

Author: Angelo Drew

The benefits that a secured loan can fetch you can never be availed through an unsecured loan. Secured loans are backed by assets like home or other residential property belonging to the borrower. This decreases the risk assumed by the lender. The assets may be seized by the lender if the borrower fails to make the necessary payments to the lender. Despite of all this risk involved for the borrower in a secured loan deal, these loans are the most profitable options available in the loan market. This statement can be supported by the benefits of secured loans cited below.

Hefty loan amount - Secured loans are calculated on the basis of the borrower's home equity value. The amount can range anywhere in between £5000 to £25,000. This is far greater than the amount that can be procured as unsecured loans. Some of the lenders in the UK loan market also offer up to 125% LTV, and grant loans even if the borrower suffers from negative or insufficient equity.

Low APRs – Secured loans attract low interest rates. The presence of asset as collateral lessens the risk for the lender, and thus he offers loans on far lesser interest rate than that on unsecured loans.

Choice between interest rates- One can opt for fixed, variable and capped interest rate, in accordance with his preference, and after a discussion with the lender. This freedom is not available if one goes for an unsecured personal loan.

Liberty in repayment options- Secured loans fetch the borrowers many lucrative repayment options. Accelerated repayment, repayment holidays, and deferred repayments are some of them.

Refund of PPI- PPI stands for payment protection insurance. Borrowers avail this scheme to protect their loan instalments in event of illness, job loss or other unanticipated financial problems. Most lenders offer full refund of the PPI installments in case of secured loans.

So, if want to avail so many advantages and others as well, opt for Secured loans and meet your financial requirements.

About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in business administration and is currently assisting Shakespearefinance as a finance specialist. For more information about secured loan please visit: http://www.shakespearefinance.co.uk

Unsecured Loans - Borrower's First Choice

Author: Angelo D

In the last two years, the percentage of unsecured loan takers has increased considerably in the UK loan market. Not only the tenants, most homeowners also prefer taking loans without pledging any asset, especially the home, as security to the lender. The risk of repossession of home plays heavy on the minds of the borrowers, when they weigh different loan options. Unsecured loans are masters in luring customers because of the features cited below:

Available for a range of different amounts and repayment terms

Not secured against any asset

No restriction on the purpose of availing loan

Amount available usually ranges from £500 to £25,000

Loan tenure may stretch from 6 months to 10 years

Different lenders offer different APRs

Most borrowers wonder that if nothing is secured, then on what basis the loan amount is calculated for unsecured personal loans. There are many factors that play a vital role in deciding the amount to be granted as unsecured loans. Some of the parameters are listed below:

Credit History of the borrower- A borrower with few arrears, defaults, and miss payments is more likely to get a greater amount than the one who has an unhealthy credit record. So, better the credit score of the borrower, higher the amount granted as unsecured loans

Disposable income of the borrower- By disposable income, one means the approximate income of the borrower left per month after paying all living expenditures, instalments of other loans and credit card payments etc. On the basis of this, the lender decides how much amount the borrower will be able to pay as the instalment of the new loan

Debt to income (DTI) ratio- This determines the affordability of the borrower. DTI is calculated by dividing the monthly income of the borrower by his expenditures. This reveals the paying capacity of the borrower. If the DTI ratio is more than 0.36, the borrower will get a good amount as unsecured personal loans

Credit policies of the lender- Every lender has a different credit policy. So, the loan amount, tenure and the APR charged is subject to the lender's criteria. For instance, the high street banks may not at all provide unsecured personal loans to those with bad credit history; whereas, an online lender may approve the loan

There are innumerable factors that help in determining the loan amount of unsecured loans, the major ones being discussed above. The borrowers' requirements and say also works. In most cases, the borrowers mention the purpose for which they are procuring unsecured loans in the loan application form. As per the purpose, the lenders grant unsecured loans.

About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in business administration and is currently assisting Shakespearefinance as a finance specialist. For more information about Personal loans please visit:http://www.shakespearefinance.co.uk