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TechAssure Launches a New National Micro Site to Better Serve the IT Sector?s Property, General Liability and E&O Needs

TechAssure Launches a New National Micro Site to Better Serve the IT Sector’s Property, General Liability and E&O Needs












San Rafael, CA (PRWEB) January 05, 2012

Many local insurance experts know that each company has its own unique technology insurance needs. While a standard business owner’s policy may be suitable for some companies, those that specialize in niche sectors may require more. For this reason, a number of expert insurance providers have come together to form TechAssure, a non-profit, international association of insurance brokers that specialize in providing all lines of insurance for venture capital and private equity firms, their portfolio companies and IT consultants. TechAssure members represent more than 4,000 clients in the innovation space, with more than $ 1 billion in property and liability insurance premiums.

Now, members of the group have launched a new website, http://coveritfast.com/coverit/. The new site allows IT related businesses to get a quote faster than ever before with CoverITfast, an insurance product custom-made for those in the IT and technology sectors. Through the CoverITfast product, technology businesses can obtain one insurance policy that provides comprehensive office and professional liability coverage, including professional liability risk exposures to technology errors and omissions, network security liability, personal injury and privacy liability, failure to prevent authorized system access, and media and intellectual property coverage.

TechAssure’s members are proud to be the only insurance association that is dedicated to the Tech sector. By joining multiple regional niche tech insurance brokers together to combine their experience, TechAssure is able to better serve its customers and ensure that all clients obtain coverage that is uniquely tailored for their needs.

About CoverITfast:

CoverITfast is an insurance product specifically designed for IT Consultants and technology businesses. Clients who benefit from CoverITfast are in one of the most innovative and dynamic industries and require a technology insurance company that truly understands their unique business needs. Due to the fact that TechAssure is a non-profit association made up of independent insurance brokerages, customers can be assured that they are dealing with an insurance agent that can deliver best of breed insurance advice and the most competitive price for IT Consultants and Technology Companies.

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Posted on January 7, 2012 by , Reply

What Constitutes Separate Property in Virginia?

Separately owned property does not automatically become marital upon marriage, even when it is placed into joint names. If one party invested separate funds into a marital asset, if they can trace out or prove that investment, they may be entitled to a return of the asset or the amount invested plus appreciation. This is a substantial issue in many cases.

The goal of the tracing process is to link every asset to its primary source, which is either separate property or marital property. Harris v. Harris, 2004 Va. App. LEXIS 138 (2004). See also Mann v Mann, 22 VA. App 459; 470S.E. 2d 605, 1996, holding that the interest passively earned on the husband’s premarital assets are separate.

The Code of Virginia, §20-107.3(A)(1)(iv) defines “separate property” as “that part of any property classified as separate pursuant to subdivision A.3. Code of Virginia, §20-107.3(A)(3)(e) provides that “when marital property and separate property are commingled into newly acquired property resulting in the loss of identity of the contributing properties, the commingled property shall be deemed transmuted to marital property. However, to the extent the contributed property is retraceable by a preponderance of the evidence and was not a gift, the contributed property shall retain its original classification.” (emphasis added). Code ofVirginia, §20-107.3(A)(3)(g) provides that section (e) of this section shall apply to jointly owned property. No presumption of gift shall arise under this section where (ii) newly acquired property is conveyed into joint ownership.

The increase in value of separate property during the marriage is separate property, unless marital property or the personal efforts of either party have contributed to such increases and then only to the extent of the increases in value attributable to such contributions. The personal efforts of either party must be significant and result in substantial appreciation of the separate property if any increase in value attributable thereto is to be considered marital property. See Code ofVirginia, §20-107.3(A)(3)(a). All of the increases of the real estate in this case are attributable to market fluctuations.

Tracing involves a two-prong, burden shifting test. First, a party has to prove he invested separate property into the real estate, which he did. It is undisputed that all of the money used to purchase the real estate was his traceable separate property. Then the burden shifts to the Complainant to prove, by clear and convincing evidence, that the transmutation was a gift.  (See Va. Code Ann. § 20-107.3(A)(3)(g)) and Turonis v Turonis, 2003 Va. App. LEXIS 130, (2003)). There is no presumption of a gift that arises from the fact that one party put the real estate in the parties’ joint names. There is no evidence of a gift in this case. (See also von Raab, 26 Va. App. at 248, 494 S.E.2d at 160 and Utsch v. Utsch, 38 Va. App. 450, 458, 565 S.E.2d 345, 349 (2002) If the party claiming a separate interest proves retraceability and the other party fails to prove transmutation of the property by gift, “the Code states that the contributed separate property ‘shall retain its original classification.'” (emphasis added) Hart v Hart, 27 Va. App. 46, 68, 497 S.E. 2d 496, 506 (1998). (quoting Code § 20-107.3(A)(3)(d), 

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            The second issue is the passive appreciation in the value of the jointly titled real estate. Pursuant both to Virginia Code Va.20-107.3(A), and using the Brandenburgformula, which has never been held erroneous by the Virginia appellate courts, (See Turonis, Supra) All of the passive appreciation on a party’s separate investment in real estate is also separate property. ” This issue was addressed in Kelley v. Kelley, No. 0896-99-2, 2000 Va. App. LEXIS 576 (Ct. of Appeals Aug. 1, 2000) holding that the trial court erred in failing to recognize that passive appreciation on the husband’s separate investment to the real estate was also the husband’s separate property. (emphasis added0. This issue was also addressed in the case of Stark v. Rankins, 2001 Va. App. LEXIS 375 (2001), holding that “in pertinent part, Code § 20-107.3(A)(1) provides that “the increase in value of separate property during the marriage is separate property, unless marital property or the personal efforts of either party have contributed to such increases and then only to the extent of the increases in value attributable to such contributions.” Read as a whole, subsection (A) of the statute contains a “presumption that the increase in value of the separate property is separate.” (emphasis added) Martin v Martin, 27 Va. App. 745 (1998). Moreover, we have held that the trial judge has a duty “to determine the extent to which [a spouse’s] separate property interest in the home increased in value during the . . . marriage.” Id. at 752, 501 S.E.2d at 453. There is a statutory presumption that the increase in value of the separate property is separate. Id.

By contrast, although the customary care, maintenance, and upkeep of a residential home may preserve the value of the property, it generally does not add value to the home or alter its character. Martin, Supra.  The Court held that the Wife’s evidence that at some time during the twelve years of marriage she personally painted, wallpapered, and carpeted parts of the house does not prove a “significant” personal effort.” These activities constitute part of the customary maintenance and upkeep that homeowners typically perform in order to preserve the home’s value; they do not by their nature impart value to the home. (See also Biviano v. Kenny, 2002 Va. App. LEXIS 157 (2002)). The Code of Virginia, Section 20-107.3(A)(3)a) places the burden on the non-owning spouse to prove that “(i) contributions of marital property or personal effort were made and (ii) the separate property increased in value.” Hoffman v. Hoffman, 2004 Va. App. LEXIS 216 2004). In pertinent part, Code § 20-107.3(A)(1) provides that “the increase in value of separate property during the marriage is separate property, unless marital property or the personal efforts of either party have contributed to such increases and then only to the extent of the increases in value attributable to such contributions.” Read as a whole, subsection (A) of the statute contains a “presumption that the increase in value of the separate property is separate.” Martin v Martin, 27 Va. App., 745, 753, 501 S.E. 2d 450, 454 (1998). Moreover, we have held that the trial judge has a duty “to determine the extent to which [a spouse’s] separate property interest in the home increased in value during the . . . marriage.” Id. at 752, 501 S.E.2d at 453.Stark v. Rankins, 2001Va. App. LEXIS 375 (2001).

In the case of Hargrave v. Wienckowski, 2000 Va. Cir. LEXIS 208, the Court states that “traceable separate property that is commingled with marital property, whether to acquire new property or otherwise, is subject to being restored to the contributing party.” The Court analyzes the issue and finds that “parties are under no requirement to contribute their separateproperty, whether acquired before or during the marriage, to the marriage. If a party does so, he or she does so voluntarily and should be reimbursed for it unless the party intended to make a gift of such property to his or her spouse.” This holding is consistent with the purpose of the Virginia legislature in enacting the equitable distribution law which was to give courts power to compensate a spouse for his or her contribution to the acquisition of property obtained during the marriage. See Sawyer v. Sawyer, 1 Va. App. 75, 335 S.E.2d 277 (1985). For example, in Beck v. Beck, 2000Va. App. LEXIS 658 (2000), the Court held that since the wife contributed 71.3% from her separate funds to acquire the property, she was entitled to 71.3% of the equity in the real estate.

Holden v Holden, 31 VA. App 24; 520 S.E. 2d 842, 1999 involved the same issue. The husband sold comic books for ,000 to raise the down payment on real estate acquired during the marriage. He deposited the money into a joint account. The Court held that the ,000 was his separate money. “Separate property does not become untraceable merely because it is mixed with marital property in the same asset. As long as the respective marital and separate contribution to the new asset can be identified, the court can compute the ratio and trace both interests. The Husband is not required to segregate the ,000 from all other marital funds in order to claim a separate interest. (Citing Rahbaran, 26 Va. App. At 207, 494 S.E. 2d at 141). See Whitehead v Whitehead, 2001 Va. App. LEXIS 381, 2001, holding that the husband’s withdrawals from the parties’ joint account should have been viewed as his reclamation of separate property, to the extent of his contribution, rather than withdrawal of marital funds. The Husband had ,100.00 in separate funds in the account. The Court held that to the extent the withdrawals equaled ,100.00, they should have been viewed by the court as his reclamation of his separate property.

If tracing separate property is an issue in a case, records proving the separate ownership are very important. Records include bank accounts, HUDs, deeds, mortgage and payments. Property acquired during the marriage or jointly titled is presumed to be marital without proof of a separate investment or ownership. Of course, the easiest way to resolve this issue is a prenuptial agreement.

 

Ms. Solomon became an attorney to help people find justice in an often unjust world. Her goal is to provide high quality, affordable legal services. Ms. Solomon is an experienced attorney offering fast, simple and affordable solutions to your financial and domestic problems. She is also skilled in corporate and government contracts, has a comprehensive business background, and is renown for her negotiating skills. She has practiced law for over 20 years and received awards as follows: Graduated with distinction from George Mason law school with a rank of “first” in class; Recognition for outstanding Pro Bono contributions to those in need; George Mason Hornbook Award for Outstanding Scholastic Achievement; American Jurisprudence Awards for property, remedies, antitrust, conflict of law, and communications law; Founder and Director of the Kare 4 Kidz Foundation.

www.marilynsolomonlaw.com

 

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Posted on October 3, 2011 by , Reply

Why Intellectual Property Is Protected by the United States Constitution

The Constitution of the United States (Article I, Section 8, Clause 8) grants to Congress the powers to promote “the progress of science and useful arts” by providing inventors the limited but exclusive right to their discoveries. This applies to copyrights and patents, with trademarks similarly protected by Congress under the Commerce Clause (Article I, Section 8, Clause 3).  Together, they are all protected under the umbrella of intellectual property.

The fundamental concept behind protecting intellectual property is that inventors, innovators, artists and others should be able to enjoy the fruits of their creativity and labor for a specified time period, after which the material becomes available for public use, according to E. Anthony Wayne, former U.S. Assistant Secretary of State for Economic and Business Affairs, whose views were published in the U.S. Department of State publication, Focus on Intellectual Property Rights (2008). He goes on to say: “Society benefits because this incentive to create will yield a rich and varied cultural menu for its citizens. Indeed, one can say that copyright protection is a necessary ingredient for ensuring cultural wealth in our societies.”

In societies, such as developing countries, where intellectual property is not protected, ingenuity is stifled and progress stymied.

Americans have always been innovators and inventors. It is part of the pride that we take in our common heritage. Patents provide the protection and the incentive, financial and otherwise, for taking a risk. They protect diverse inventions such as industrial designs, manufacturing processes, high-tech products and molecular compounds.

Yet, the idea of protecting intellectual property remains abstract to some.  The practicality of enforcing this Constitution protected right becomes clear when actual cases are examined. Here are three that stemmed from inventions in the late 1990’s:

1.  Amazon’s 1-Click

Amazon was granted a patent for 1-click technology on September 28, 1999. Also known as one-click buying, the technology allows customers to make an online purchase in a single click—without having to manually input billing and shipping information every time they purchase a product. Instead, 1-click uses a billing address and credit card or other payment info that is kept on file in the user’s account.

There have been several patent disputes surrounding 1-click technology, including a patent infringement lawsuit filed against Barnes & Noble in 1999—only a month after Amazon’s patent was issued. Barnes & Noble offered a checkout option called “Express Lane,” which also enabled shoppers to make a purchase with one click. The lawsuit was settled in 2002; however, the terms were not disclosed. (Source: Legal.zoom.com)

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2.  Napster

In one of the most well-known dot.com intellectual property cases, the Recording Industry Association of America (RIAA) sued Napster, a file-sharing site. Founded in 1999, Napster allowed users to share music files and thousands of people began downloading songs for free rather than buying CDs.

However, Napster did not own the rights to the music that people were uploading to its servers, where the music was stored and ultimately shared. The rights were owned by the recording artists and recording studios. The RIAA sued Napster and won, causing Napster to close its doors—or its servers, as the case may be. Napster now operates as a fee-based music download site and pays licensing fees for the music it sells. (Source:  Legal.zoom.com)

3.  AVS TechnologyTM

AVS Technology covers the input into a computer system of vendor attributes and project specifications, which are then matched to determine a subset of qualified vendors, followed by the sending of the specifications to the qualified vendors and the receiving of at least one bid.  While this method may be in use today across many industry sectors, it was first patented in 2002 and subsequently protected with further patents in 2008 and 2010, with additional patent claims pending on an active continuing application.  AVS Technology makes it possible for organizations to add significant sums to profitability through savings in the procured costs of custom goods and services (such as specialty manufacturing, temporary staffing, construction services, machined parts, textiles, direct mail, marketing materials, commercial print, packaging, labels, and more).

The inventor has a right, even an obligation, to protect intellectual property and have the technology in use licensed.  In the recording industry or consumer goods industry, reproduction or use without licensing is called pirating.  A case is pending to protect AVS Technology. (Source: e-LYNXX Corporation vs. InnerWorkings, Inc., et.al.)

Protecting intellectual property encourages problem solving through invention.  Without this constitutionally protected right, what is the incentive to labor and invest in a new product or service that will benefit society?  The concept of protecting intellectual property is based on a trade-off. The inventor is granted an economic incentive to take risks and create. The public benefits not only from the invention itself, but also from the inventor’s knowledge for possible uses in other applications.

 

About e-LYNXX Corporation

e-LYNXX Corporation patented the technology integral to e-commerce.  Endorsed by Educational & Institutional Cooperative Purchasing (E&I) and Printing Industries of America (PIA), e-LYNXX drives results through its three divisions.  ● AVS TechnologyTM licenses the patented* automated vendor selection procedure used in e-commerce and procurement systems.  ● American Print Management provides web-based system, services and patented AVS TechnologyTM to reduce substantially the procured costs of direct mail, marketing, publications, packaging, labels and other procured print.   ● Government Print Management offers effective U.S. GPO bid services and strategies.  www.e-LYNXX.com – 888-876-5432

 

*U. S. Patent No. 6,397,197, Patent No. 7,451,106, post-Bilski Patent No. 7,788,143, and Continuing Application 12/855,423 (collectively, the AVS TechnologyTM) – This thicket of patents covers all custom goods and services, not just print.  To inquire about licensing, contact Anthony Hawks at 888-876-5432 or Michael Cannata at 905-773-2207.

William Gindlesperger, a nationally recognized entrepreneur, inventor, author and consultant in print and procurement, founded ABC Advisors and its successor, e-LYNXX Corporation, in 1975.   Print buyers and suppliers alike have benefited from his insight and innovation. Mr. Gindlesperger has advised Congress on the development, operations and future of the U. S. Government Printing Office (GPO) and the federal print program in general. In 2009, he was inducted into Printing Industries of America’s prestigious Ben Franklin Honor Society for his lifetime achievements. The editors of Supply & Demand Chain Executive magazine named him one of the most influential procurement leaders in North America in 2010.  Mr. Gindlesperger invented the Automated Vendor Selection Technology that optimizes cost reduction in the procurement of specification-defined goods and services. A native of Chambersburg, Pa., Mr. Gindlesperger is a graduate of Dickinson College.

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Posted on August 3, 2011 by , Reply

What Constitutes Marital Property In A Rhode Island Divorce Subject To Equitable Distribution?

Rhode Island is an equitable distribution of assets state. R.I.G.L 15-5-16.1 is the statute that pertains to equitable distribution of assets. The Rhode Island Supreme Court has stated on numerous occasions that marriage is an Economic Partnership.

Article by Rhode Island Divorce Lawyer David Slepkow.  You can contact David Slepkow at 401-437-1100. Please contact a RI divorce Attorney if you need legal help.

The equitable distribution statute is designed to fairly assign marital property in a Rhode Island Divorce based primarily on the contributions that each party made to the marital estate. Judges in Rhode Island have a lot of discretion to equitably divide marital assets. Equitable does not always mean equal!

The assets capable of being divided obviously include real estate, pensions, retirement accounts, 401k, cars, boats, artwork, collectibles, bank accounts, ira’s, motorcycles, vehicles, time shares, furniture, televisions, computers, and business interests. Retirement benefits are marital assets under Rhode Island Law if acquired during the course of the marriage. Certain disability pensions may not be marital asset.

What steps must a Rhode Island Family Court Judge use to make an equitable distribution in a Rhode Island Divorce?

Equitable division of assets in RI is a multi step process. The first step is for the Judge to determine what property constitutes marital property in Rhode Island. After a judge determines what constitutes marital property, the Rhode Island Family Court judge must apply the factors set forth in 15-16.1. The judge must lastly equitably divide the marital property.

What are the Automatic Court orders and when do they go into effect?

The Husband and wife must be careful not to violate the automatic court orders pertaining to the parties’ assets. This automatic order enters upon the Plaintiff signing the Divorce Petition as to the Plaintiff and becomes effective as to the Defendant in the divorce when the summons is served upon the Defendant. This order essentially prevents either party from unlawfully dissipating assets or canceling life or health insurance among other things.

What property and assets constitute Marital Property subject to equitable distribution in RI?

All property acquired during the course of the Marriage by either party constitutes Marital property subject to equitable distribution with certain exempt property set forth below.

Gifts given by the parties to each other are marital assets which can be equitable divided in a Rhode Island Divorce.

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What assets are not marital property under Rhode Island Divorce Law?

Premarital property is not subject to the equitable division statute. Premarital property is property that was acquired by either spouse prior to the date of the marriage.

Income derived from premarital property during the course of the marriage is subject to the equitable distribution statute. The appreciation in value of premarital property during the course of the marriage is also subject to the equitable division statute.

In order for the appreciation of value of premarital property to be equitably divided, the appreciation must result from the efforts of the spouse who do did not own the asset prior to the marriage. This provision requiring that the appreciation result from the efforts of the other spouse is often loosely applied in Rhode Island (RI) Family Court, especially in marriages of long duration.

It is important to note that the Rhode Island (RI) Legislature made a distinction between interest and appreciation in determining whether the other spouse must have expended any effort. The RI legislature did not require any effort of the other spouse in order for interest derived from premarital property to be equitably divided by the Rhode Island Family court in a divorce. It is not required that interest earned from premarital property be derived from the efforts of the other spouse.

Gifts from third parties whether acquired before or during the marriage are not marital property subject to equitable division under Rhode Island Law. The income and appreciation from gifted property is not marital property. This specifically includes life insurance and distributions from trusts.

Inherited property is not marital property. The income and appreciation of inherited property is not subject to the equitable distribution statute in a RI divorce.

An advanced degree is not a marital asset. A professional’s license such as as a lawyer’s license to practice law is not a marital asset.

Can property, which was originally non-marital separate property, be converted to marital property?

Yes. The Rhode Island divorce case of Quinn v Quinn is the seminal RI case pertaining to doctrine of transmutation. The doctrine of transmutation can change the character of non marital property to marital property.

In Quinn v. Quinn, 512 A.2d 848, 852 (R.I. 1986), the Rhode Island Supreme Court stated that the “transfer of non marital assets from one spouse to both spouses jointly, in the absence of clear and convincing evidence to the contrary, will be understood as evincing an intention to transfer the property to the marital estate. This doctrine, known as transmutation, is consistent with the recognition that marriage is a partnership … The provisions in 15-5-16.1 are designed to achieve that end. Oliviera v. Oliviera

“In Quinn, the husband placed the proceeds from the sale of his inherited property, first, into a jointly held Certificate of Deposit and, then, ultimately, into a joint account. We held that this action evinced an apparent consent to the wife’s demand for an ownership interest in the funds. The husband then used a portion of those funds to acquire a piece of realty, which he held jointly with his wife. We said that “[s]uch an act [was] consistent with, and indicative of, an intent that the parcel become part of the marital estate.” Oliviera v. Oliviera

If one spouse transfers non-marital property to the other spouse in joint names then that will usually change the property to marital property. However, the spouse can by clear and convincing evidence prove that the spouse did not intend to create an ownership interest in the property. There is, however, a rebuttable presumption that the transfer was intended to gift the property to the other spouse.

Commingled assets

If a marital asset and a non-marital asset are commingled and used to purchase or exchanged for other property then the new asset constitutes marital property.

Personal Injury Settlements and Car accident Claims in RI

A personal injury settlement or judgment for pain and suffering, future lost earnings and reimbursement for future medical bills are not marital property in RI. Awards for past medical expenses and past lost wages for a personal injury, slip and fall or workers compensation claim are marital property .Workers compensation awards compensating disfigurement is not marital property.

Are Social Security, SSI benefits or SSDI Benefits Marital property?

Social security benefits are not marital property.

If I hit the lottery after the Divorce Trial or Nominal Hearing but before entry of final judgment does my spouse get an equitable share?

Yes, surprisingly assets acquired after trial but before entry of Final Judgment are marital property.

All assets acquired up to entry of final judgment are marital assets unless the parties entered into a property settlement agreement stating specifically that those assets are non-marital.

Rhode Island Attorneys legal Notice per RI Rules of Professional Responsibility:

The Rhode Island Supreme Court licenses all lawyers in the general practice of law, but does not license or certify any lawyer / attorney as an expert or specialist in any field of practice.

David Slepkow is a Rhode Island Divorce Attorney concentrating in Divorce, Family Law, Restraining Orders, Alimony, Post Divorce, Contempt, Paternity, adoption, DCYF, Child Support, Child Custody and Visitation. David Slepkow has been practicing for over 12 years and is licensed in Rhode Island (RI), Massachusetts (MA) and Federal Court. Free Initial consultations. Credit Cards Accepted.  Evening Appointments available

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Posted on July 24, 2011 by , Reply

Attention: Property investment can seriously improve your wealth (Part 3)

When you are looking to make money, the old adage holds true: “Buy low, Sell high”. In other words, “You make your money when you buy, not when you sell”.

This is a fundamental concept that you must grasp in order to be a successful property investor. You must always buy your real estate for a low price, never for the full market value. Never forget this simple yet crucial rule and you’ll always make money. You may think that is all well and good but wonder how to go about doing it.

 

Well the great thing about real estate is that it has no absolute, set price. No one can say for definite what a piece of real estate is worth because valuation is an art not a science. Contrary to a popular misconception, estate agents don’t dictate the price of real estate. When you arrange a valuation with an agent, they’re just giving their best guess as to what they think people will be prepared to pay for it. The true value is whatever someone is actually willing to pay for it. For example, someone with an emotional attachment to a property might be willing to pay lots more for it than everybody else. In contrast, an investor might only be willing to pay less than other people would pay for it. Do you see what I’m getting at? The value of any given piece of real estate is very much an unknown quantity until the point of purchase. Different groups of people, for their own individual reasons, will value any given property differently.

 

So the emotionally driven buyer might pay, for example, £50,000 more than the majority of people are prepared to pay, in order to secure it for himself. Consider an analogy with an art lover at an art auction.

Fortunately for us, it’s not only vendors who can benefit from the fact that property values are not absolute. Indeed, vendors are human and can be emotional too. Therefore they might sell their property for less than it is generally considered to be worth. There are many reasons for this which I will discuss in other articles. Wouldn’t you like to be the lucky buyer who snaps up that cheap property? I certainly would.

 

You should never buy property from anyone who is not motivated to sell to you at a discount. If you ignore this advice and buy at full market value you will run out of money very quickly and find it difficult to make a profit. If you don’t know how to find these emotional vendors and their great deals you should use the web to get some free property investment education.

 

So, when you find a great deal, how are you going to finance it? If you were buying equities, you would have to use your own money. No bank will lend you mortgage money to buy equities because they know how volatile the market can be. No. They are happy for you to take that risk alone. In contrast, when you want to buy land, houses or apartments, you can do so using the power of a mortgage. You borrow and use “other people’s money” i.e. the bank’s, to buy an asset that will make you money forever more! Amazing!

 

You see, they know that real estate is a safe, reliable investment and that as time goes by their investment grows ever safer. From their point of view, if things go sour they can sell your asset for a lot more money and get their mortgage money back. Banks aren’t stupid. They demonstrate their faith in the property market to the public every day by lending on property purchases. We’ve all heard the expression “as safe as house”, right? If the banks class property as a safe investment, shouldn’t that tell you something? Now don’t get talking about the credit crunch and all the trouble that banks are in. That is nothing to do with them lending money to responsible people like you and I to buy safe, solid investment properties. They made mistakes in other areas of their business but we’re not going to get into a discussion about the credit crunch and overpaid bankers. Let’s get back to the magic of real estate.

 

Compare buying real estate with equities (shares, bonds etc). There is a fixed market price for those assets and if you want them you must pay full price just like everyone else. There are brokers fees to pay and tax on any profits with no breaks available from the tax man. Your values of your equities are probably volatile and could rapidly decrease in value. You can probably only hope to hold a very small percentage of the total number of shares on the market. With such a small voice you have no realistic, practical say on the running of the company that you have invested in so you can’t influence the value of your investment.  Compare this to property investment, with the ability to buy below market value, add value and the many generous tax breaks available. Surely the evidence is weighing up in favour of property investment vs stocks and shares.

 

So I hope that you understand why real estate is such a good investment in comparison to some of the other choices out there. You probably want to learn how to use mortgages like the pros to finance your next investment. You probably want to learn how you can become rich in real estate. If so, I recommend that you look at the next article in this series and hope that you find it useful.

Dr Bradley Tomkins is an enthusiastic property investor and webmaster at WWW.PROPERTYINVESTMENTEDUCATION.COM
His comprehensive website is dedicated to providing a wealth of FREE articles and educational resources for the new or experienced property investor. He writes a FREE educational newsletter on a wide variety of property investment topics, which you can subscribe to.
You can get everything you need to become successful in the world of real estate investing FOR FREE at WWW.PROPERTYINVESTMENTEDUCATION.COM.

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FreedomWorks Vice-President of Strategy, Kent Lassman and Ken Hogland from Americans for Fair Taxation discuss the feasibility of 2008 Presidential Candidate Senator Fred Thompson’s Flat Tax proposal on Fox Business.
Video Rating: 4 / 5

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Posted on February 25, 2011 by , Reply

Financing Religious Use Property – Churches are Businesses Which Also Need Financing

Financing Houses of God

Church lending can be intimidating even to the most seasoned loan officer or loan originator. However, financing a church and its dreams are not too difficult to master. The church loan or loan for religious use are not ordinary by any stretch of the imagination. Yet they can be rewarding and you can even make some money in the process.

Lending Fears

There are a few basic fears that keep most from lending on Churches.

Foreclosure. Foreclosing on a ‘House of God’ and ridding a community of it’s place of worship turns a majority of lenders off from the get go (not us, we love church loans).

Single Use-Special Use Property Type.The uniqueness of most church properties is another turn off for most lenders. What do you do with a building that has a steeple, choir loft, stained glass, naives, aspy’s, altars, pews for 300? What kind of resale market is there? How long will it take to sell? What if grounds also contain a cemetery? Now what?

Qualifying. Churches are not-for-profit organizations. So, they don’t have tax returns nor do they have traditional methods of determining income for qualifying. So, again most lenders will steer away from anything that is not traditional.

Lending is simple on Churches

When lending on a church the first criteria is to determine the denomination. Yep, denomination. Reason being that not all loan programs will lend to just any denomination. A statistic I picked up from the US State Department, is that there are 565 organized and recognized religions in the world. From mainstream to off beat, they exist. Since loan funds are derived from various sources or pools of funds, it is important to match the correct denomination with the correct sources. For example, you wouldn’t want to seek financing for a Temple or Shrine from a Christian Pastoral Retirement Trust Fund. These practices are not congruent in their belief systems with each other. The end game may be the same for all, however the path and practices to get there are very different and can be offensive to each other.

The next item is responsibility for the proposed loan. You need to determine if personal guarantees are going to be an issue with the religious organization. If not, you have just openned the door for sources to finance the church. However, over 85% of the time personal guarantees will be a big deal to the church and the sources that want the guarantee are out of the picture.

The third issue is banking business requirements. Some sources require the church to move most or all of its banking business to the institution that is writing the loan. About 50% of Churches don’t like this covenant either.

What is the basic information that you will need?

Church Questionnaire (a form of application)

Church’s Statement of Faith

Church’s Organizational Documents with a statement of Good Standing from the state of organization

3-yrs financials (e.g. Quick Books) + YTD profit and loss

Pastor’s or Church Leader’s Resume

Use of funds letter

Authorization to Lend Letter

Evidence of tax exempt status

Color Digital Photos of church property

Primary church contact or liaison person(s)

Although there are many additional items and steps, with these basics you are well on your way of being able to professionally present a package to a lender.

Rates, Fees, Making an Income

I almost forgot these key items. Church loans current have rates in the 6.50% to 9.50% range, with fees running in the 3-6% of loan amount.  This is the norm and is most typical. I know that there are times when Church’s obtain financing outside these norms, but that has to do with hundreds of variables specific to that organization.

As far as making income–in you think you are going to be earning 2-3 pts. on the deal…Stop. Not going to happen. Church loan sources are very strict about what you can earn, so if you get 1/2 to 1 pt on the deal, be grateful. When you do a great job for a church, Pastors, Deacons, Bishops, and other leaders talk–word gets out you treat them fairly, more deals will come your way.

By the way, if you missed it, we love church loans and we’d love to be of assistance. I can be reached via cfrgroup@att.net or visit our web site at www.mycommerciallendingpro.com

 

Gregg S Cochran, President of CFR Mortgage Group, Inc. a wholesale commercial lender based in Tustin, CA.

Posted on August 29, 2010 by , Reply

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