What to Watch Out For If You Decide to Finance at a Dealership

I am going to make this a simple article to read. I want you to be able to read this whole article and understand it before you make your next vehicle purchase.

Yeah, the economy isn’t the greatest right now. Yeah, nearly all industries are down on sales.

You see commercials on TV all the time talking about how now is the best time to buy a car. It is, BUT…..

You see, the auto industry is struggling. So of course, to get people to come in and purchase a car they need to advertise these “great” deals and show you how you can get their employee pricing! Sounds exciting, eh? Well if you walk in there with cash, maybe you are going to get a great deal. Actually, you probably are assuming you can negotiate a good deal.

But what if you are going in there without cash? Or without your own financing? Are you really going to get such a great deal? Well you may receive your dream car at employee pricing and they may promise you that its the best they can do on price.

Lets take a close look at their financing techniques.

Did you know that dealers really do shop for the best rate for you? Yeah, they do! However, they won’t give you that best rate! They shop for the best rate then give you a higher one. How? They are allowed to mark up your interest rate up to 2% higher than what they were quoted. That means that they are making profit off of the financing too. That can lead to you paying hundred to thousands more for your new car.

So think about this:

The car you are looking at costs $20,000.00 after manufacturer’s rebates. The dealership said they would take off an additional $1000.00 to get you to employee pricing. Sounds good, right? It is good. Now, you go to the financing office, they finance you at an 8% rate when you could have actually had a 6% rate. That will end up making you pay more, a lot more. They could have you paying a couple thousand dollars more in just interest! It makes that $1,000.00 discount look weak, doesn’t it?

The whole point here is to tell you that you need to be cautious when using dealer financing as if you know they aren’t making much from the car due to the incredible deal they gave you, they are going to make it up on the financing end of it.

Always negotiate interest rates. You wouldn’t ever take them up on their first offer on the price of the car would you? Nope. So treat the first offer on the interest rates the same too. A lot of dealers won’t even tell you what the rate is. Be sure to ask.

They have their own special programs through the car manufacturers to make up for lost profit. Don’t let them fool you. It is called dealer hold back. It is tough to negotiate into that.

Commercial Real Estate – Valuing The Cash Flow

Many investors don’t understand the power of commercial real estate. I too had reservations until I understood the power and safety commercial real estate can provide. Commercial real estate is similar to trucks. Trucks come in all sizes and all shapes – a Ford Ranger to an 18 wheeler. Commercial properties come in all sizes and shapes – a standalone building that houses a small restaurant to the Empire State Building. People read in the newspapers that commercial property prices are crashing. People notice the strip malls have a lot of vacancies and it scares them away. Let’s take a look at the power of commercial real estate and a quick note about market cycles. Commercial real estate is a business and is priced based on current cash flows. For simplicity sake, commercial property pricing is based on 10 x annual cash flow, not including debt service (loan). So a property that yields $10,000 in cash flow is worth $100,000. Regardless of the type of property, if you increase rents by 1% ($100) the value goes up a $1000. Decrease expenses by $100 and the value goes up $1000. So what? Let’s look at a simple apartment example.A small apartment complex (10 units) has an annual cash flow of $50,000 and is for sale for $500,000. It has a lot of long-term tenants paying below market rents. You put down 20% or $100,000 (there are ways to make it someone else’s money). We’ll assume it is a positive cash flow property even with the debt service (loan payments). First a storage area is made into a laundry facility that provides $5000 on annual basis. You just increased the value $50,000. Next rents are raised the first year to market rents. Raising rents $50 per unit increases cash flow $6000. You just increased the value $60,000. That means you have doubled your original $100,000 in the first year and you get to keep the $11,000 cash flow. There are many more ways to increase the cash flow including: separate utilities and have tenants pay utilities, decrease vacancy, work out a deal with dish network and get paid, reduce maintenance costs, and more. Just by raising the rent $10 a year increases cash flow $1200 a year and increases the value $12,000. In three to five years you’ll have cash flows of $70,000 to $100,000 (less debt service which remains constant) and you can sell the property for $700,000 to $1,000,000. Now you see the power of commercial real estate.Just like single family homes, not every property is a good deal. First you look for commercial properties in areas that have improving rents, increasing employment, and areas where the entire area is going through gentrification. Next you look for properties that have a value proposition – rents too low, poor management, ability to install laundry or some other measure to increase cash flow. You would be surprised how many buildings are poorly managed or have below market rents.I’ve used an apartment as the example; however this same model works for office buildings, mobile home parks, strip malls and more. All types of real estate (all types of investment) go through cycles. When the economy is booming for example, the vacancy in office buildings goes down significantly (prices go up). Of course the opposite is true during an economic downturn. During economic downturns more people move to apartments, mobile homes and need storage facilities. By observing these cycles one can move in and out of various positions to minimize risk and increase portfolio value.
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Special Training For Brain Development Of Kids

Many researchers have proven the fact that functioning of brain cells of infants is twice active as adult’s brain. Neurons are the brain cells that connect together and power of neuron have the potential of a PC. Connectivity of neurons decides the smartness or intelligence of individuals. In human, brain development and the learning ability of an individual is 50% in the first four years of age. The nerves of individuals are reduced as they grow up and this is why the 1000 trillion nerves present in an 8 months baby are reduced to 500 trillion as it grows up. A child that has given more opportunities to explore will be much smart.

A majority of children, more than 90% of them use their left brain, but the imperative fact to remember is the right brain must also be utilized. Education system present in almost all the schools is designed to develop or use the left brain. Right brain is never the less significant because it is responsible for creativity, arts, feeling, imagination, visualizing, daydreaming, rhythm, holistic thinking and many others. Hence it is equally important to develop both side of brain. It is also most important to take steps to keep both the brain much active, by keeping them to perform analytically on an equal basis. It is the responsibility of parents to give activities to their children that ensures the involvement of both brain. If both brain used by children it is probable to enhance their learning power and they can also increase their brain power. If brain development programs are offered to children they can make most of the program and develop their skills to give work to both side of brain and remains high in intelligence level. Development of brain in human beings is based on the degree of how much it is used. If it is left unused there are more probabilities for individuals to lose as brain works on the basis of use it or lose it.

To ensure the progressive brain development in children, it is the role of parents to introduce their children with a reputable brain development program. Most of the experts suggest step by step educational program to the children which is systemic and efficient. Nowadays it is very simple to find out a lot of schools which not only gives importance to academic program, but they also boost the creativity of children through their extracurricular activities. It is probable to search internet and get hold of relevant schools that present with a variety of activities to stimulate the brain and encourage the development of children. A total development program to stimulate mental activity of children is also found out in the online sites and parents can try out these activities with their children while they are at home. Getting education from a school that implements total development program is much beneficial. Search for such schools and secure admission to enhance the future of the children and boosts in brain development.