Investing in real estate in Panama by renting the properties can be very profitable. However, the laws of leasing real estate are old and confusing for foreigners. Here is a summary of Panama’s leasing laws:

The Civil Code of 1917 copied the Spanish Civil Code that regulates real estate leases in rural and urban areas. Private residential properties whose rents exceed $ 150 per month, commercial activities, educational and industrial use are covered by this law.

Law 93 of 1973 controls urban residential leases, subleases, room rentals and furnished apartments up to $ 150 per month. Forty years ago, $ 150 a month was a substantial income. Vacation (vacation) apartments that are rented for more than six months are also subject to this law. Tenants enjoy greater protection against rent increases and evictions than under the Civil Code.

Leases that are excluded from Law 93 include rural properties, old reverted properties in the Panama Canal Zone, fixed daily rate rentals (motels, inns, hotels and pensions), vacation home leases of less than six months, and properties leased from the government.

Since foreigners will only rent properties for more than $ 150 a month, only the rights of the tenant will be covered here under the Civil Code:

Annuities: Both parties can negotiate any monthly rental price and increases they want. Rental contracts are usually in Spanish. When foreigners rent to other foreigners, the contract can be written in Spanish and translated or written in both languages.

Security deposits: A security deposit equal to one month’s rent is sent to the Ministry of Housing, which is reimbursed to the tenant upon expiration of the lease, unless the landlord files a claim for rent owed or damage to the tenant’s property. However, most foreigners are unaware of this requirement and many Panamanians ignore it when collecting deposits themselves.

Duration of the lease: There are no restrictions on the length of a lease. Landlords cannot evict a paying tenant before the lease expires. However, tenants can break any lease with 30 calendar days’ notice.

Utilities: Some utilities and services cannot be transferred to the tenant’s name, such as the condo and water homeowners association fees, which are paid by the landlord and incorporated into the rental rate. Cable TV, Internet, telephone, and electricity may be in the name of the tenant paying those bills. Commercial property bills, such as building maintenance fees, water, and utilities, are generally paid by the tenant.

Triplicate: Prepare the rental agreement in triplicate. The tenant keeps one copy, the landlord gets another copy, while a third copy is filed with the Ministry of Housing, which also holds the security deposit. Again, many foreigners are unaware of this requirement, while many Panamanians simply ignore it and only require copies for the tenant and owner.

Foreign Usually they are asked to provide the first month’s security and damage deposits. A personal Panamanian reference letter is often required. Local bank checks or cash are preferred.

Repair The electrical, plumbing, and structural parts of the building are usually the responsibility of the owner.

Invest In Panama real estate renting apartments or houses can be very profitable. Some foreigners rent to multinational corporations that have regional headquarters here for their executive and visiting employees. Rental payments are often made by bank transfer and some pay by check.

Taxes they are paid by foreigners and Panamanians alike on their rental income. However, there are many write-offs and tax deductions just like in the United States and Canada and in European countries. A homeowner can pay fees for maintenance, repairs, management services, real estate commissions, utilities, and other expenses.

Real estate agent commissions they usually consist of a month’s rent and since there is no MLS in Panama, it is not uncommon to see two or three real estate agents splitting the commission between them. Current law requires paying an ITBMS tax (VAT) of 7% in addition to the commission.

Real estate services On behalf of the tenant generally includes the installation of cable TV, Internet, telephone and electricity on behalf of the tenant if the tenant requests this service.

Hire a competent Panama real estate attorney to advise you on real estate laws, landlord and tenant laws, and taxes before purchasing apartments or houses as investments.

Now that you’ve bought your own pool cue and hopefully followed some of the advice in previous articles before doing so, you’ll want to take care of your investment. A good sign is relatively long-lasting and tolerant, but all signs require care and a little maintenance. Here we will talk about wooden billiard cues, the graphite and fiberglass sticks are practically bulletproof and require a little less care.

CASES. You are going to need a case to be able to take your new cue to the pool hall. I would think it would be obvious, but nevertheless, I constantly see people arriving with their new signal in hand. Come on, did you just spend your money and take the time to pick out a pool cue that you love, but just can’t pick some kind of case? The basic cases are made of vinyl or soft material. These will protect your cue from minor drops and bumps, but not much else. I highly recommend hard cases just because they offer a lot of protection. Some cases are tested by driving a car over them without damaging the inner lug! Your billiard cue can take a lot of damage to your car, your home, and even your billiard room, so protect it as best you can.

While we’re on the topic of transporting your cue, never leave your pool cue in your car, especially in the trunk! Wood is very susceptible to changes in temperature and humidity, so avoid storing your pool stick in your vehicle at all costs. The wood will expand and contract, which could lead to warping, loose joints, and cracked spots.

TIP. The tip of the billiard cue (the part that hits the ball) is the most important part of the club. You can play billiards with a tree branch or broomstick, or with the most deformed stick in the house, if the tip is solid and shaped properly, you can play with it! It is not a joke! Screw tips are a serious no-no, so don’t even go there. The “real” tips are glued together and come in a variety of hardnesses. Soft tips hold chalk better and are better for applying “English”, but they wear out and grow out quickly. Extremely hard tips last forever, but you need to constantly re-chalk. Some say they also make a more accurate shot. A medium hard tip should be fine for most players. The tip must be able to hold chalk, so periodic scraping is necessary. The roundness of the tip must be maintained with a styler. Most players compare roundness to that of a nickel, although some prefer the stiffness of a “dime curve.” Shaping and scraping too often will make the tip disappear quickly, so only shape and scrape when necessary. The sides of the tip should be level with the splint, not mushroom shaped. Get yourself a scraper / styler and take care of that tip!

THE AXIS. When you first bought your pool cue, the shaft was nice and smooth, and it slid through the bridge hand very easily. That didn’t last long, did it? Sweat, oils, and dirt from your hand will stick to your shaft very quickly, making it sticky and not so smooth. How is this avoided and how is it cleaned? First, there is little you can do to prevent this from happening other than to wash your hands frequently and keep them clean and dry. Some people use talcum powder, such as baby powder, on the bridge hand and on the heel. A small amount of powder that has rubbed well into the hand is fine; softens the skin, but the powder should never be used as a lubricant. Wash your hands! The dust will cause the shaft of your pool cue to lock up faster and the dust will ruin the pool table felt. Nothing looks worse or plays worse than clean green felt with white baby powder all over it because some idiot thought they had to powder on it to get a better shot! It’s just not like that, so don’t do it. It’s bad for your taco and bad for the table. Have some respect, huh?

Cleaning the shaft of your pool cue with a soft cloth during play will limit the amount of dirt that accumulates on it. Not eating or drinking with your bridge hand is also a good habit. Using a very light leather polishing pad from time to time is a good idea. However, over time, the pores in the shaft wood will fill completely with dirt and oils and will need a thorough cleaning. I’m going to tell you how I do it, just remember that if you make a mistake you could ruin your taco. Forever. The first step is to completely clean the shaft (not the bushing) with a soft cloth and a little isopropyl alcohol. You don’t want to soak the wood with it, use just enough to clean the wood. Continue cleaning with alcohol until you see no dirt on the cloth. Alcohol removes dirt and oil from the wood and opens the pores in the wood. Now you just want to let it sit and dry for several hours. Now is the time to wax! That’s right, I said wax. You need to use 100% carnauba wax for this. Car wax is fine, as long as it is 100% carnauba wax.

Like waxing a car, apply a coat of wax with a soft cloth or applicator and allow it to dry to a haze. You can’t let it dry for long, just let it sit for a while and be patient. Once the wax has completely dried, you’ll want to clean it up and immediately start working the shaft with a leather polishing pad (or a plain piece of thick leather if you don’t have a polisher, which you should have anyway). Wrap the leather around the shaft and move it up and down as fast as you can (yes, it sounds dirty). The more you rub and the faster you rub, the hotter the wax will get, allowing it to work into the pores of the wood. When you’re done, you’ll have a beautiful, smooth shaft once again, but you’re not done yet! You will have to go through all the steps again, except for the alcohol part. Apply more wax, let it dry, rub it in and repeat until you have at least 3-4 layers of wax well worked into the wood. Now take care of the tip and go play pool!

THE TAIL. The butt of your pool cue shouldn’t need a lot of maintenance. Keep it clean and wipe it with a soft cloth during and after the game. Don’t hit things with it and don’t drop it (or throw it) to the ground. The joints will loosen, the wood will crack, and the pieces will separate if you do. Then you will have to buy a completely new cue.

“Dings” on the shaft. Nothing is more annoying than working your pool cue across the bridge and feeling little “bumps” on the wood. As much as we try to take care of our pool cues, these little dents always seem to appear, as if by magic. Here is a method that I learned that will remove the small imperfections from the handle of your pool stick. First, you need to clean the shaft with isopropyl alcohol as in the paragraph about cleaning the shaft. This will open up the pores in the wood. Next, find a place where you can put the axle where it won’t roll and where it won’t hit. Lay the axle (horizontally) down with the dents you want to remove facing up. Now, soak a very small piece of tissue with water and roll it into a ball (think of a miniature saliva ball) and place the tissue ball directly on the toothed point of the shaft. It is important that the ball of tissue is no larger than the actual notch in the shaft. Let it sit until it dries completely; what happens is that the wood in that small area absorbs the water from the fabric and swells, leveling that stain with the surrounding wood. In a perfect world, the “ding” will be gone, but what usually happens is that the “ding” turns into a small “bump”, which is fine because bumps can be fixed with a polishing pad quite easily. . Once you have all of your “bumps” level or slightly above level, it’s time to wax the shaft. Follow the instructions above for the proper method to do this. Of course, another way to remove bumps and dents from your pool cue would be to take it to a professional, but where’s the fun in that?

NEVER USE ABRASIVES. Ever. Period. That means no sandpaper, scourers, wet / dry paper, nothing. If it was designed to remove wood, keep it away from your pool cue! You never want to remove a layer of wood just to smooth it out; you want to clean the existing wood to maintain the shape, balance and feel of the dowel.

Your pool cue represents an investment on your part, so keeping it clean and in good condition will make it last a lifetime – that’s a lot to play pool!

In Pennsylvania, there is a surface water law found in legal case law. That is, a municipality or other owner is liable for damage to an adjoining owner if that first owner or municipality artificially diverts or funnels surface water (including stormwater) to that adjoining property.

Even if there is no additional volume of water, if the rainwater is diverted resulting in a more intense or concentrated flow, then there is liability if damage occurs.

A municipality has the right to manage stormwater and protect public health and safety. However, you need to balance that with the rights of neighboring homeowners.

If a storm drain system or sewer pipes are negligently constructed so that they do not adequately control runoff, then there is liability for the damage caused.

This can be found in the Pennsylvania Stormwater Management Act (32 PS Section 680.13 et seq). The Act requires that there be a plan to manage water runoff resulting from construction that involves drainage or alteration of stormwater runoff.

If the soil disturbance from a construction project is large enough, or if the soil disturbance is close enough to a protected waterway, then a permit and / or soil erosion control plan must be submitted to the PA Department of Environmental Protection.

Therefore, there are two main things to be aware of that can lead to a legal claim in Pennsylvania regarding stormwater. First. If you are doing construction that involves a large amount of soil disturbance or is near a stream or protected waterway, you need to determine if you need a permit and a soil erosion control plan. Second, if you own a home or land where you believe storm or surface water is being diverted onto your property at a higher flow or intensity, then you may have a claim if you have consequential damages.

In the second case, if you believe that your property is being damaged, or if there is a resulting injury to a person, then you should investigate the source of the problem. If there is recent construction of sewers or any drainage system, you should check with both your local government and the PA Department of Environmental Protection. Find out what the project was and if a permit and / or soil and erosion control plan was required. Even if a permit or plan was not required, it may still be a violation of the Stormwater Management Act or Pennsylvania jurisprudence if the surface water diversion was built negligently or if it artificially funnels water at a higher flow or velocity. towards your property. .

In such legal claims, there may be legal causes of action for: negligence, trespassing, nuisance, or violations of the PA Stormwater Management Act or the PA Clean Stream Act. The Clean Currents Act (35 PS Section 691.1). The Clean Currents Law allows legal claims from private citizens for pollution runoff into a canal. It is most often applied to the Pennsylvania Department of Environmental Protection or other government action against polluters.

Generally, a legal claim involving an argument that there was a negligently constructed storm drain or stormwater system or artificially channeled water runoff requires the use of an engineer. That engineer would need to inspect and possibly do a study to compile the engineering findings to support the claims.

Whether you’re buying or selling a home, choosing the right real estate agent or buyer’s agent is the most important step to take. The process of buying or selling a home is very detailed and difficult. Besides the fact that mistakes can cost a lot of money?

Your assets are at stake and losing through buying or selling is the last thing you want to do. There are many real estate agents around. The ones who are dedicated and stay with you every step of the way, or the ones who turn the job over to other runners.

The areas of expertise to look for are:

· How much education in the real estate area does the agent have?

· How much knowledge does the agent have about the houses in the areas they are looking for?

Do you have a wide variety of homes for sale for you to see?

The title that has the most education and experience is a real estate broker. The real estate broker has a real estate license, training, and is recognized by the National Association of Realtors. This professional can likely help you with all your home buying or selling needs.

After the real estate broker is the real estate broker. This professional received the real estate license and additional training. It has also received recognition from the National Association of Realtors.

Finally, the real estate agent is a person who has been licensed, however, they may not have the same experience as the more experienced broker.

Most states have minimum requirements to be a real estate agent and this is the cause of some of the problems that are incurred during the transfer of ownership of a home. However, keep in mind that there are good agents, realtors, and brokers at all levels of this experience. Doing a little check can help you find the right one for you.

Most of the time, a real estate agent represents the seller of the home. If you are looking to buy a home, you are looking for a real estate buying agent. This is important because you want to be represented in the best interest of your needs. Not those of the person on the other side of the deal.

When you’re researching the right agent for you, you’ll want to seek the compromise you deserve. There are many agents in the market just as there are many houses to sell. If you don’t get the attention and quick response you deserve, find someone else. They will make a profit on your purchase and should treat you with a reasonable amount of respect and professionalism.

The general rule of thumb is that you want a real estate agent that has been around for a couple of years. With the change in the real estate market as it is, this is why you may have to contact a couple of agents.

You want to start your search by hiring the right real estate representative for you. The house you are looking for will arrive. There are bait and switch agents who specifically use a home within a price range and attractive appearance to the average home buyer and then when they get the call they can tell you it’s sold, but there is another one they have that you will love. too. Keep this in mind so you don’t get caught by a deceptive broker, instead look for the representative, agent or broker who will show you what is available at all levels of purchase and keep your best interest in mind.

Damascus is the capital of Syria; It is also an important center for scientific, cultural, political, artistic and commercial activities. The city is also known to be the oldest city in the world that has been continuously inhabited. The country has state hospitals in all provinces, but most of the good hospitals are concentrated in the capital, Damascus. Treatment in government hospitals is almost free and the fee charged by private hospitals is also regulated by the government.

The New Medical Center is one of the main health centers in Damascus. The hospital was created in 1991 and has facilities and technical expertise for almost all medical and surgical practices. It is equipped with a very advanced infrastructure and the hospital team is well trained. The hospital is equipped to perform pediatric surgery, plastic surgery, general surgery, and kidney transplants. The address of this hospital is Misat sq. Bernia Street, POBox 7465.

The Dr. Shami-Attar-Bdeir Healthcare Center was established by the Attar Group in 1981. The MCC provides excellent medical care to its patients and is equipped with the latest medical technology and well-trained staff. Surgeries in the fields of obstetrics, gynecology, otolaryngology, ophthalmology, and neurology, in addition to plastic surgery and general surgery, are performed in the hospital regularly. The hospital has advanced scanning systems and a modern Intensive Care Unit. The hospital performs open heart surgeries and the hospital has a capacity of 100 beds.

The Italian hospital in Damascus was built in 1936. It is one of the most important health centers in the city. Through the years, the hospital has become known as a modern hospital that provides good treatment services to its patients. The hospital is located in Tilyani and the contact numbers are 332-9404; 332-6030 / 1.

Al-Asadi Hospital located in Mazzeh, Western Villas Damascus specializes in cardiac surgery and the Bridi Clinic on Rawda Street near Arnous Square has facilities for medical and dental ailments. The contact number is 3338210.

The Medical Clinic is located at Youth City Street, Building 27, East Villas, Mezzeh Damascus 7937; the contact person at this clinic is Dr. Al-Hussein Saied Moshaaoeh. The clinic offers treatment for problems related to general medicine.

The International Digestive and Medical Clinic located on Salhia Street, Cinema Amir Building is led by Dr. M Jaber and provides treatment for digestive and other stomach related illnesses.

In addition to the hospitals listed above, there are some well known doctors in Damascus who can be contacted depending on the nature of the problem. Dr. Moufid Jokhadar is a famous cardiologist and his contact number is 331-2766 / 333-2337. Dr. Anan Haffar is a pediatrician and his address is Jisr Al Abyed, Damascus; The phone numbers are 333-4283 / 371-2822. For OB / GYN questions, you can contact Dr. Ahmad Dahman at 70, Mazraa Malek, Al Fadel Street.

As the creator of the “Buy Your First Apartment Building Online Course”, I have many potential students and beginning investors ask me: “How do I find motivated apartment building sellers?”

There are many ways investors use to find motivated sellers, however what I see happening a lot with beginners is that They start looking for properties to buy before they fully understand how to identify a truly profitable opportunity. Here are my recommendations on how to start learning about multi-family investing, and then how to find motivated salespeople.

Get started by learning what makes multi-family ownership profitable by following these steps:

1. Study and learn what makes an apartment building profitable.
2. Read as many books as possible on real estate investing and investing in apartment buildings. It is much easier to learn from other people’s mistakes. There is no need to reinvent the wheel.
3. Find a reputable real estate investment club in your geographic area and meet with commercial investor members. These “veterans” are a valuable source of market information.

After the aspiring multi-family property buyer has received a thorough education by reading books, industry magazines, and networking with other commercial real estate investors, you are ready to begin the process of finding a real property to buy.

Contact commercial real estate agents

A great reference source for finding well-trained commercial real estate agents is the CCIM website. The CCIM is a professional designation that qualifies a commercial real estate professional as capable and knowledgeable in the field. You can also find commercial real estate agents through a simple web search.

When looking for a commercial real estate agent, follow these steps:

1. Talk to several commercial real estate agents in the area and ask about “pocket listings.” Pockets listings are apartment building owners the seasoned realtor might know who are serious about selling their building, but have not yet listed the property.
2. Find a commercial real estate agent who specializes in multi-family investments. A good commercial real estate agent who specializes in multi-family properties should have a great understanding of the prices of apartment buildings that have recently sold.

Alternative strategies for finding apartment building deals:

1. Place an ad on Craigslist that indicates what you are looking for:

“Are you looking to sell your apartment building? I am a commercial real estate investor interested in purchasing a multi-family property in Philadelphia between 5 and 100 units. I am seeking five year owner financing with a 5% down payment or will buy with a twenty%”. down payment and a bank loan. ”

Or, here’s an ad I copied straight from Craigslist this morning:

I BUY MULTI-FAMILY PROPERTIES WITH SELLER FINANCING OR QUICK CASH. Do you need to sell? Moving? Are tax benefits running out? call me for an offer.

2. You can also place the same ad in the commercial real estate section of your local newspaper, but be prepared to pay a hefty sum for the ad and also be ready for unsolicited calls from real estate agents. Newspaper ads work, but it’s best to use free or more direct methods, such as direct mail.
3. Another strategy is to contact commercial property owners directly. This can be done in many ways. Multi-family homeowners can be located by researching the tax records of a metropolitan area. Typically, the owner of the record will appear along with their contact information. The next step is to write a letter that explains who you are and what you are trying to achieve. The purpose of the letter is for many interested apartment building owners to contact you. You must leave your phone number, postal address, and email address for sellers to contact you. You should make it easy for sellers to contact you. Remember, you will need to look at dozens of offers and sellers before you find the one that meets your investment criteria. You can also contact the owners directly by phone. Keep in mind that multi-family property owners are often very busy, so you may want to write a script or have written talking points so you can get straight to the point and get your message across accurately.

When purchasing and installing a new manufactured home, two upgrades are recommended. They are installing a vapor barrier and earthquake booster. Each is explained here:

Vapor barrier for mobile homes

A mobile or manufactured home vapor barrier is a thick, rubbery plastic sheet that is placed directly on the ground under a mobile or manufactured home. Then the foundation pillars rest on this barrier.

You really need to make sure that a home that you buy or have installed has this protection. Mobile and manufactured homes need dry ventilation underneath. This barrier will prevent moisture from damaging the home, especially floor rot, but it will also help with fungus, mold, and termites.

It is absolutely necessary to make sure you install a vapor barrier before purchasing a mobile or manufactured home. And the additional cost is minimal considering the amount of protection you get.

If you are buying a mobile or manufactured home that is already in a space, but without a vapor barrier, you can hire a contractor to install a vapor barrier under the home. They will only have to cut pieces that will go around the base of the pillar and post and all the pipes in place. This is not ideal, but it is much better than having no barriers.

Mobile Home Earthquake Reinforcement

Earthquake bracing is recommended in California, and earthquakes are common elsewhere. Mobile homes and manufactured homes are especially susceptible to earthquake damage due to their foundation system (most often installed on a pier and post system).

Earthquake bracing is a simple upgrade that can increase the value of your home by at least the cost of installing the bracing. This cost ranges from $ 2000 to $ 4500 in California right now. The actual clamp is like a shock absorber on a car, but is installed at an angle to the steel I-beam at the bottom of the house and anchored to the ground. This clamp will prevent the house from slipping off the dock base and post.

Insurance companies may insist on installing earthquake bracing if you want to purchase earthquake insurance on your mobile home or manufactured home.

Earthquake bracing can also help keep a mobile home from falling off the foundation in high winds, although it is not designed to do this and should not be relied on for this.

Pictures and more explanations of these two updates, as well as a wealth of free information, tips, advice and recommendations can be found at: http://www.free-mobile-home-info.com.

For most retailers, wholesalers, and distributors, inventory is the largest single asset on their balance sheet. In many ways, your inventory defines who you are and your strategic position in the market. Define your customer’s needs and their expectations of you. Legions of cost counters are employed to accurately capture and capitalize all direct inventory costs. The cost of that inventory is the largest expense item on most income statements.

Most companies evaluate their inventory productivity through criteria such as inventory turnover, gross margin return on investment, gross margin return in square footage, and the like. These are all valuable tools for evaluating inventory productivity, but they are all limited by the fact that they use inventory at cost as the cost basis in their analysis.

The actual cost of inventory extends well beyond inventory to cost or cost of goods sold. The cost of managing and maintaining inventory is a significant expense in and of itself, but the true cost of inventory doesn’t even stop there. The total cost of inventory, in fact, is buried deep within a series of expense items below the gross margin line, almost challenging any executive, manager, or cost accountant to actually get them out, quantify, and manage them.

Studies of inventory maintenance costs have estimated that these costs are approximately 25% per year as a percentage of the average inventory for a typical business. While this information is interesting, it is not particularly useful. To manage the cost of carrying inventory, it must first be measured.

Generally recognized components of inventory holding cost include inventory finance charges or the opportunity cost of inventory investment, inventory insurance and taxes, materials handling charges, and warehouse overheads not directly associated with picking and customer order shipping, inventory control and cycle counting expenses, and inventory shrinkage, damage and obsolescence.

Let’s take a close look at each of these components to better understand how they can be measured and managed.

Inventory Finance Charges – This may seem easy to calculate, but accurately measuring inventory finance charges is not as simple as it might appear at first glance. For some businesses, working capital financing may be essentially inventory financing and little else, but for many others it may also be accounts receivable financing. Floating between accounts payable and accounts receivable may also be partially financing inventory. For importers, this can be fairly straightforward to quantify if they are opening letters of credit before their suppliers ship from abroad. In this case, the cost of the LC installation can be easily identified as the inventory finance charges. Finally, it is essential to be able to measure how much of the inventory is financed externally and what part is financed through internal cash flow. For the part that is financed from cash flow, the opportunity costs of that investment should be measured.

Opportunity Costs – When you think about the opportunity cost associated with investing in inventory, it’s easy to focus strictly on the opportunity cost of dead or underperforming inventory. In fact, the opportunity cost is related to the value of the total inventory. If this value was not invested in inventory, what return could be expected if it were invested in something else, such as treasuries, mutual funds, or even a money market account?

Inventory Tax and Insurance – These items should be fairly straightforward to quantify as a percentage of the average inventory value. And because both insurance and taxes are highly variable with inventory value, any reduction in average inventory value will drive savings directly to the bottom line, not to mention improved cash flow.

Material Handling Expenses – Measuring material handling expenses that are not directly associated with picking and shipping customer orders can be just as tricky. These expenses are primarily made up of salaries and benefits, but also include material handling equipment depreciation or lease payments, automation, robotics, and systems depreciation, as well as miscellaneous expenses for supplies such as pallets, corrugated, UPC labeling materials, and the like. . .

Warehouse Overhead – The quickest way to measure this is to divide your total rent, utility, repair and maintenance, and property taxes by the percentage of the building associated with processing customer orders, pickup and shipping, and the associated part of the building. with receiving and storing inventory. While that part associated with receiving and warehousing may seem fixed, in fact it quickly becomes much more variable when you consider what you might be renting the space for as contract storage if your inventory weren’t there.

Inventory control and cycle counting – These expenses can also be comprised primarily of salaries and benefits, but can also include depreciation or expense on portable radio frequency (RF) units and other related equipment, as well as any miscellaneous expenses directly. related to your inventory control team.

Inventory reduction, damage, and obsolescence – Capturing and measuring these costs appears to be fairly straightforward at first glance. Loss, damage and obsolescence costs are the value of cancellations taken, or expressed in percentage terms, the value of those cancellations during a given period of time divided by the average inventory during that period. However, this assumes that all cancellations were made in a timely manner throughout the year. Were cycle counts performed on a regular basis? Was everything counted on a scheduled basis, was that schedule followed, and were higher speed items counted more frequently? Were they timely canceled? It was damaged and obsolete inventory was written off in the current period and allowed to accumulate during previous periods. Rather, cancellations were postponed during the current period, resulting in a build-up of damaged and obsolete inventory that will have to be canceled in a future period. Experience has taught us that, in some extreme cases, these cancellations are avoided for years!

To determine the cost of maintaining your inventory, these components are accumulated on an annualized basis and expressed as a percentage of your average annual inventory. Now you can see if the 25% annual maintenance cost estimate accurately reflects your business, or if your business has particular characteristics that result in a significantly different percentage.

Just as it is unwise to assume that your maintenance cost percentage will reflect a composite average across many companies, it is not appropriate to assume that all items in your inventory have the same maintenance cost percentage. Certainly, maintenance costs may differ within your company by distribution center (if you have more than one DC), product line, category, sub-category, or even item. Transportation costs may differ for high-volume, high-speed “A” items, slower-turn or add-on “B” items, or slow-turn “C” items. Large, bulky items can have a significantly different shipping cost than smaller items that take up much less space per dollar of inventory. Understanding the different transportation costs within your inventory helps you identify where the opportunities for the greatest savings might lie.

Once all inventory costs have been measured and quantified, those costs can be evaluated and managed. And what is immediately apparent is not just the cost of inventory that is essential to the business, but the cost of inventory that is nonessential, overstocked, dead, or deficient, and what financial drag this inventory is for the business. deal. business.

Reducing unnecessary inventory, whether by adjusting front-line stocks, essential inventory, or liquidating dead or underperforming inventory has the advantage of freeing up capital for other uses and reducing costs directly variable with inventory levels, and also helps you provides an opportunity to re-evaluate fixed and mixed costs to identify other potential cost savings. When you reduce inventory, you are not only freeing up invested capital, but you are also creating opportunities to reduce expenses, improve profitability, and actually increase cash flow.

With a large number of homes still selling as short sales and foreclosures, renovation loans are becoming increasingly popular with home buyers. Currently, many family homes are being redesigned for additional family members. As rental housing costs rise, families decide to live together and save money. There are multiple situations that could apply: boomerang kids, elderly parents, or divorced with grandchildren – the family home needs an expansion or renovation to ensure everyone is comfortable.

Rehab loans, like the FHA 203 (k) program or the Fannie Mae Home Style Renovation Mortgage, are also the perfect answer for some first-time home buyers. If the borrower qualifies for the 203 (k) program, the buyer can borrow based on the expected value of the home after the rehabilitation is complete.

I’ll summarize some common home renovation loans available to consumers and some of the requirements for each. Interest rates are subject to variation for each itemized loan, so be sure to check with a qualified loan officer first, before embarking on a home purchase or refinance.

Renewal loans are effective for consumers, banks, and mortgage companies because they offer the resources they need to remove foreclosures from the market and redo them. Additionally, these loans provide first-time home buyers (who have historically been 30-40% of a healthy housing market) the opportunity to renovate before moving in.

FHA 203 (k) Rehabilitation Loan
FHA-insured home renovation loans are more popular now than ever, because renovation resources are sorely needed. A simplified 203 (k) loan includes less than $ 35,000 in renewals. For home buyers who need more than $ 35,000 in rehab work, a full 203 (k) is needed.

To qualify for the FHA 203 (k) loan, the borrower must agree to hire a real estate consultant to evaluate the construction plan and approve each phase. The project must be completed in six months, with five drawings (or payments to contractors) allowed. A list of approved property renovations is included with the loan. Many borrowers feel that this loan is too complicated or that the renewal list is too restricted for their projects. But the interest rate on FHA loans is low enough to be worth it.

If you are interested in an FHA 203 (k) loan, find a mortgage broker with experience in this type of rehab loan to complete the transaction. FHA loans are often available for owner-occupied residences. These loans are government-insured and have a more expensive Mortgage Insurance Rate (PMI), with a 1.75% down payment and 1.35% monthly payment, compared to other loan products. Jeff Hurd, a mortgage banker at Fidelity Bank Mortgage in Newport News, Virginia, said, “With conventional rehab loans, the consumer has the option of paying all of the PMI up front, monthly, or have the lender pay it (LPMI).”

Fannie Mae HomeStyle Renovation Mortgage
Comparing the Fannie Mae HomeStyle loan to the 203 (k), Hurd says the HomeStyle loan product offers more flexibility with repairs and renovations and in the types of homes purchased. The Fannie Mae HomeStyle loan offers a broader range of renovation projects and can be used on a second home and investment property, as well as a primary residence. “

Other advantages of Fannie Mae HomeStyle Renovation Mortgage include less money down than conventional rehab loans (a minimum of 5%) and a lower cost for mortgage insurance. Monthly mortgage insurance payments are lowered with higher down payments and / or a good credit score above 680. The conventional home style will generally present a PMI pricing advantage over the FHA. With HomeStyle Renovation Mortgage from Fannie Mae, home purchases and improvements can be combined into one loan for virtually any property, and it doesn’t have to be owned by Fannie Mae. Repairs or renovations must be permanently attached to the structure and add value to the property. Lenders must be pre-approved to sell this product, so be sure to ask the loan officer if they participate in this home finance program.

Rehabilitation loans: now is the time
Now is a good time to buy a home with a rehab loan. There are so many houses that may be in danger. Whether the home is owned by a bank, it’s a foreclosure or a short sale, or a homeowner is upside down and doesn’t want to put money into a property to fix it, there are homes to choose from. Right now, home buyers have a good chance to buy a home at a great price and renovate it with financing. These rehab loan products make it easy to buy a home and complete home rehab projects at the same time, before your move-in date. It is very likely that a consumer will be able to buy a property, do the necessary renovations, and walk out of the transaction with the equity in the home. Hurd says, “There is a market of smart consumers ready to buy these homes now.”

The housing market has changed tremendously in the last five to seven years. Because there are still vacant properties available in this real estate market, rehab loans are a means of obtaining these properties that need repair. Homebuyers can now expand their options for homes to live in because they can remodel them to suit their needs. Real estate investors can buy, rehabilitate and rent or resell the property.

Rehab loans are an excellent real estate market stimulus and a great way for home buyers to buy whatever they want without having to worry about paying off cash investments or having tens of thousands of dollars in addition to a mortgage to finance home renovations. households.

Arguably, the Internet has not had a more significant impact on any industry than real estate. Indeed, it has changed the way potential home buyers find the property they ultimately buy.

Here is the most compelling statistic to back up my argument: According to the National Association of Realtors (NAR), 70% of home buyers found the home / property they finally bought online “BEFORE” hiring a realtor. Before the internet, people looking to buy a new home had to go to a real estate agent and describe their requirements (price, rooms, bathrooms, region, etc.) and then have the real estate agent go through the MLS to find suitable properties to suit your requirements. The real estate agent would then present his findings and schedule appointments to view. Today, prospective buyers have access to that same information and can use web-based products like Google Earth to zoom in and view aerial photos of homes and neighborhoods. They can also go online and get free appraisals or access real estate comparables and see exactly how much the house sold down the street. They can also search for mortgages and compare rates. City data sites provide demographic data, rank school systems, and provide community characteristics for virtually every city and town in the United States. And the best part, it’s all free and easily accessible at your fingertips!

While there are many websites that offer access to real estate listings according to Hitwise (an internet monitor that collects data directly from ISP networks), here are the top 10 real estate websites:

1.realtor.com (the most active site in the world with 350 million visits per month)

2.realtytrac.com

3.homegain.com

4. rent.com

5.remax.com

6.realestate.yahoo.com

7.zillow.com

8. apartments.com

9.ziprealty.com

10. move.com

Realtor.com, the official site of the National Association of Realtors, is by far the No. 1 ranked real estate website with an 8.8% market share. According to USA Today, traffic to real estate websites increased 8% in 2005, twice the growth rate of overall Internet traffic.

The internet has effectively leveled the playing field: Home buyers simply don’t need a real estate agent as much as they used to, this fact ultimately puts pressure on real estate agents to justify their commission fees. Supporting this perspective is the fact that real estate commissions have fallen to an average of 5.1%, down from the long-standing 6%, according to Real Trends.

As in any industry, the less you do, the less you get paid, why should real estate agents be any different? The funny thing is, as home prices go up, so do commissions, unless, of course, you hire a “discount” realtor. These brokers recognize their reduced role and workload and simply offer their services at a reduced price. But don’t underestimate the NAR’s powerful lobby (remember they have 91 BILLION reasons to protect their industry). Real estate agents have helped “persuade” a dozen states to pass laws limiting the ability of real estate agents to grant rebates to home buyers or offer low-cost, on-demand services to home sellers. The Justice Department, in an effort to protect competition laws, has lobbied some states to reverse plans to pass those laws.

In 1995, only 2% of home buyers used the Internet to search for a home. Last year, 77% of home buyers went online to search for a home. Surprisingly, again, according to the NAR, the average Realtor spent less than $ 500 a year on the Internet (advertising and development).

The growing dominance of the Internet comes at a crucial point in the real estate market. Median home prices fell 6% this year. Meanwhile, home buyers and sellers are looking for new ways to save money and find them online. Armed with more information, many home sellers are cutting the real estate agent entirely and moving toward “Sale by Owner” (FSBO). The biggest challenge for FSBOs is effectively marketing their property. While there are many (thousands) of websites catering to FSBOs, the industry is extremely fragmented and there is no repository of properties that competes with Realtor.com or any of the other “Top 10” real estate sites listed above. One option is flat rate MLS. With Flat Fee MLS, a real estate agent essentially agrees to list an FSBO property in the MLS for a “flat fee” rather than a commission. The service is basic and the real estate agent listing the property does not provide any services beyond listing the property in the MLS. However, it exposes the typically marketing-challenged FSBO to the real estate agents’ most effective sales / marketing tool for a minimal fee (typically $ 399 – $ 699). Another option is to simply list your property on Realtor.com (my preference, I’ll explain why in another article).

While the way people “search” for a property has changed, the way they buy has not: 81% of home buyers who used the Internet to search for a home still hired a real estate agent to to buy.

The fact is, the internet has dramatically eroded the value of traditional real estate agents. Ask yourself this question: will you put a sign on your property, list the property in MLS, and then spend the next 3 months convincing you to reduce the sale price by 3%? Is a home “showing” worth 3% of the sale price? Am I being too harsh, maybe? I understand that real estate agents provide a level of expertise and in most cases “deliver” the buyer to their doorstep, but if you look at the process of getting there, the buyer is clearly doing the most of it. From the escalation, a real estate agent simply opens the door after your trip.