Tag Archive: Market


Home Financing in a Foreclosure-heavy Market

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November 15, 2010

Home Financing in a Foreclosure-heavy Market

In today’s housing market, foreclosures are at a high that hasn’t been seen since 1979. Seven percent, or roughly one of every 11 homes, is currently in foreclosure. According to the Mortgage Bankers’ Association, 6.35 percent of homes are in delinquency but not yet in foreclosure.

The housing crisis is happening everywhere — from Indiana to Texas and Maine to California. Though we most often hear about record foreclosures in California and Florida, a brief internet search will show you it truly is not limited to any particular region or state.

The housing market woes do not just affect potential home buyers. The mortgage brokers themselves are feeling the crunch. In Massachusetts, approximately 80 percent of the brokers who were in business at its peak (about two years ago) have now left or will leave the housing market by the end of June 2008. Those that are left have had to severely cut back and make changes in order to survive (letting go other personnel, working more hours, selling fewer homes).

Qualified buyers are typically seen as those who have credit scores of above 680 (FICO scores range from 350-800), with good, steady jobs and incomes. Today, many banks, feeling the burden of too many loans gone bad, do not want to give loans to anyone with a credit score below 720.

Also gone are the days of easy-to-get adjustable rate mortgages. Banks have learned that market will not always be in an upswing and not everyone can afford a home mortgage.

If you do end up in foreclosure, it will most likely be at least five years before you’ll be considered for bank financing again. In addition, you’ll need to have a credit score of at least 680 and at least a 10% deposit.

But what if you have a good deposit now and you need a home now, not five years down the line or whenever the housing market picks back up? Do you have any options? In short, yes.

There are actually lots of people who are willing to do owner financing. If you see a For Sale By Owner sign, it’s a good idea to check it out and see what kind of a deal they would be willing to make you.

Creative home financing options can help you and your family get into a house sooner, and help the owner get out of their home sooner. After all, with banks so hesitant to give loans, FSBO homes aren’t going to have a very good chance of selling, either. Creative financing can help owners and buyers find mutual satisfaction.

In addition to looking for FSBO homes, there are other things potential home buyers can do to increase their chances of getting a home. To start, save up and get as much cash together as you can for a down payment.

When home owners are faced with letting their homes sit on the market for years (because no bank will give a buyer a loan) or taking a nice chunk of money up front and then a steady income from monthly payments for a number of years, they’re going to be tempted.

Having that nice down payment also can help the current home owners get into their next house – a point that should be made to them in case they haven’t thought of it. There are also experts available who know the ins and outs and strategies of creative home financing.

Another version of creative home financing is a land contract. This is along the lines of what we’ve already talked about, but with some sellers, they may be willing to accept a much lower down payment, spread your payments out over 40 years instead of the typical 30, and negotiate with you on the interest loan.

Check with your friends and family. Sure, there are reasons to be cautious when lending and borrowing money with relatives and friends. But if you know people who could probably spare the money for a down payment, and you can offer them a higher interest rate than they’re getting by having their money sit at the bank, it could be a very attractive option for both of you.

Do you have other property? If you have other property already, you may be able to get a loan from that property to put towards a down payment on new property. It’s worth thinking about.

The next idea is one you should think very cautiously about, but it is an option. Particularly if you are dealing with a FSBO situation, perhaps you could put part of your down payment on your credit card. This should really only be contemplated if you’re going to be able to pay that amount off on your card very quickly (say, if you’re expecting your tax refund or stimulus check) because credit card interest rates, as well all know, are ridiculously high.

As is true any time you are looking to take on debt, you need to be cautious. The banks have learned their lesson, so they’re not going to be as easy to finance a home with for some time.

You, too, as the potential home buyer, need to be careful. Think through just how much debt you can take on. But do not let the current market discourage you from moving forward with home ownership plans. You may have to look a little harder, search a little longer, and maybe keep your dream house away for another few years. However, with the right spirit, intentions, planning, and creativity, you will find a home financing option that works for you and the seller.

Copyright: 2008 Cory Shrader

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Copywriting Tips To Market Your Small Business

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September 23, 2010

Copywriting Tips To Market Your Small Business

Most people don’t realize that every small business uses copywriting to sell their product or service.

Those catchy phrases on that brochure are copywriting.

The content of that sales letterare copywriting.

The direct-mail packet you received in the mail with discounts to area businesses- Yep. You got it that’s copywriting.

And while you may appreciate the value in hiring a professional to write an effective sales letter, benefit-laden brochure, or have-to-have-it internet ad, professional copywriting services may be out of the price range of your small business.

It’s impossible to gain the expertise in a short amount of time that a professional copywriter has earned through years of training and experience. That said, there are a number of quick and easy things you can do to make your content stand out – and more importantly, to sell your product or service for immediate revenue.

Headlines

In almost every case, headlines are a quick and effective way to grab your reader’s attention. However exciting the information that follows, it’s not going to do you any good unless you can pull your prospective client in immediately by making them want to read more.

In the age of email, IM-ing and video conferencing, people want information fast. If you bore them they’ll move onto something else, and you’ll lose an opportunity to tell them why your product or service will change their life for the better.

The headline is usually in a larger and/or bolder font than the text directly below it. This enables your promise to stand out more and to get the readers attention. The idea is to make your prospective client want to keep reading.

You may have seen headlines like these

“Lose 20 pounds in Two Weeks – And Eat all You Want!”

“Make ,000 – with Nothing More than a Computer and 5 hours a Week!”

“Save Thousands on Heating Oil This Winter!” (an ad for a woodstove)

In virtually every business, even those often deemed “professional”, your message will be more urgent and compelling with a headline. Consider the following example for a technology consulting company:

“Finish Your Projects On Time and Under Budget – Without Hiring a Single New Employee!”

See what I mean? Headlines work. Start by defining your company’s promise. Every small business has one – all you have to do is tell your customer what it is.

Bullets and Fonts

Especially with a very technical subject matter, or with a product or service that requires a lot of information, bulleting out the finer points of your small business benefits can break down large blocks of information into an easy-to-read format.

When faced with a page full of text, the eye tends to drift to areas of interest – things that stand out from the rest of the text. For this reason, varying your font style and size just a tiny bit can make a real difference.

If I bold this sentence, you will likely pay special attention to it.

If I use italics to make my point here, it will be the rare individual who doesn’t notice – not the italics, but what’s been written in them.

The key here is not to go overboard. You don’t want to make your letter or brochure look like an advertisement for the circus (well, unless your small business is a circus). Just create enough interest to keep them reading and keep them invested in learning more about your small business.

Do-It-Yourself?

You’d probably prefer to contract out your copywriting services. Hiring someone else means you get a professional and can move onto matters that fall more clearly within your area of expertise.

But the reality is that many small businesses simply do not have money in the budget to hire a professional copywriter – at least not in the beginning.

In this case, try coming up with some material of your own using these tips. Who knows? You might even discover a talent you didn’t know you had.

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The Easy Way to Market Your Small Business on the Web

Filed Under: Small Business by — Leave a comment
August 23, 2010

The Easy Way to Market Your Small Business on the Web

Recently, when doing research for my Internet marketing advice column, I’ve been talking to small business owners about why they originally decided to take the risk of entrepreneurship, and to strike out on their own. Most of them, when they think seriously about why they first started their business, offer no single reason, but instead cite a variety of factors that contributed to their decision.


One big reason I’ve heard from a lot of small business owners is, basically, that they felt directionless and small in the corporate or service worlds, so they decided to take their fate into their own hands. Many large employers treat their workers like nameless and faceless cogs in a vast money-making machine. Certain types of people — like those who become small business owners — just don’t want to be another mindless drone in the hive. These big, uncaring companies are simply no place for the creative, innovative, and adventurous mind.


Other small business owners say that they were excited by the challenge, or that they wanted a chance to work from home, or that they simply saw a gap in a market and jumped on the opportunity to fill it. Some say that all of these factors contributed.


But there is one reason that strikes me as the most important in today’s Internet marketing climate: Many small business owners do what they do because they are passionate about their field. They had something they loved to do, and which they felt they were particularly knowledgeable about, and they decided to turn it into their daily bread. This is the factor that practically every small business owner has in common — knowledge, passion, and expertise. After all, no one ever starts a business in a field they don’t like.


When maneuvering the tricky labyrinths of entrepreneurship, many fledgling small business owners forget about their original passion, and instead come to think that they must bend themselves backward to market their services. I’ve lost count of how many successful small business owners I’ve spoken to who regret the amount of time and effort they used to put into trying to emulate the practices of larger companies. This is a common mistake, but it’s only natural. We see how successful the big corporations are, and we think we have to do everything just like them.


But this is simply not true. Just as large corporations don’t get anywhere by using small business marketing tactics, small businesses won’t get anywhere by trying to market like large corporations. Fortunately, Internet marketing for small businesses can actually be quite easy. What if I were to tell you that there was such a thing as free Internet marketing, and that it is easy and completely legitimate? Well, that’s what I am telling you.


The key is to put your passion and expertise to use. The Internet and its users constantly crave new content, and who better to generate content in your field than you? No doubt, whatever your field is, there are countless Web sites that publish content pertaining to your area of expertise. You probably even read some of these sites. Why not become a contributor?


The process is easy and simple. First, you must write the content. Write 600-700 word articles about some topic in your field that you know a lot about, and which you feel needs to be covered. Then, find an article marketing service on the Web. These services are increasingly popular among small business owners. They will not only help you polish your content, but they will also work to distribute it throughout the Web on your behalf.


The benefits of this marketing technique are incalculable. Through the “About the Author” box attached to each of your articles, readers will discover your Web site, and business will steadily increase. Best of all, though, the more articles you have published, the more links there will be to your Web site, and the higher your site will rise in Google search results. In short, free and easy Internet marketing is not only possible, but it is also the smart thing to do.

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