Posts Tagged ‘Financing’
Forum 2010: Financing Future Growth
Posted by admin in Finance Thursday, 16 December 2010 23:29 No Comments
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The Effects Of Financing Deficit On Leverage Choice Of Quoted Firms In A Developing Economy: The Nigerian Experience
Posted by admin in Finance Wednesday, 3 November 2010 18:18 No Comments
The Effects of Financing Deficit on Leverage Choice of Quoted Firms In A Developing Economy: The Nigerian Experience
ONWUMERE J.U.J Ph.D
OKOYEUZU CHINWE
ABSTRACT: This paper examines time-series patterns of external financing decisions consistent with the pecking order theory. Emerging markets provide an excellent laboratory to test the explanatory power of financing deficit given the under developed markets for corporate control.The adverse selection problem of external financing automatically leads to the standard pecking order in which debt dominates equity.we run a regression with a firm’s change in debt as the dependent variable and its financing deficit as explanatory variable. we control for other determinants of debt issuance. Controlling for other determinants of debt issuance helps us to see whether the adverse selection model falsely omits critical determinants of leverage. This allows a nesting of the conventional determinants of leverage from the trade-off theory within an adverse selection model. Our empirical results indicate that the financing deficit alone accounts for 40% of the variation in leverage and that no single variable is as potent as the financing deficit in explaining the variations in leverage over the period. We predict that publicly traded Nigerian firms fund a much larger proportion of their financing deficit with net external debt
INTRODUCTION
The basic pecking order theory predicts that leverage is a decreasing function of profitability. Adverse selection problem is the basis for the theory and since liquid assets/ retained earnings do not have any adverse selection problem, they constitute the best source of funds from insiders’ perspective.
Accordingly, the firm will fund all projects using retained earnings if possible. If there is an inadequate amount of retained earnings, then debt financing will be used. This argument leads to the standard pecking order in which debt dominates equity. Frank and Goyal (2003) assume that the adverse selection problem of external financing automatically leads to the standard pecking order in which debt dominates equity .
∆Dit = a + bpo DEFit + Eit
We run a pool panel regression where ∆Dit represents net debt issues and DEFit represents financing deficit.
Following the argument of Halov and Heider (2005), that the standard Pecking order is a special case only when there is no asymmetric information about risk, we control for other determinants of debt issuance. The basic trade-off theory states that the level of leverage is determined by trading off the tax benefit of debt against the costs of financial distress. Controlling for other determinants of debt issuance helps us to see whether the adverse selection model falsely omits critical determinants of leverage. This allows a nesting of the conventional determinants of leverage from the trade-off theory within an adverse selection model.The specification in a nested model enables us to determine how the financing deficit performs when combined with conventional factors. The pecking order theory implies that the financing deficit ought to wipe out the effects of other variables. If the financing deficit is simply one factor among many that firms trade-off, then what is left is a generalized version of the trade-off theory. The pecking order theory financial behaviour is driven by adverse selection costs and the theory should perform best among firms that face particularly several adverse selection problems. Small high growth firms are often thought of as firms with large information asymmetric .if internal financing is not adequate, then debt financing will be used. Thus, for a firm in normal operations, equity will not be used and the financing deficit will match up net debt issues.
The remainder of the paper is organized as follows. section 11 provides an overview of capital structure theories. Section 111 describes the methodology. The empirical analyses of deficit are presented in section 1V.section V concludes our work.
SECTION 11
REVIEW OF RELEVANT LITERATURE
In finance capital structure refers to the way a corporation finances its assets through some combination of equity and debt or hybrid securities. The key division in capital structure is between debt and equity. The proportion of debt funding is measured by leverage. There are different factors that affect a firm’s capital structure, and a firm should attempt to determine what its optimal or best mix of financing.
The pecking order predicts changes in mature firm’s debt ratios. These companies’ debt ratios increase when the firms have financial deficits and declines when they have surpluses. By implication, a firm may never have a preference for external finances as long as it is able to meet its investment needs via internal equity funds. But in the presence of financial deficit as mostly the practical case, the need for external finance becomes pressing.
The pecking order theory is formally proposed in Myers (1984) and Myers and Majluf (1984).in the theoretical framework of Myers and majluf, investors are willing to buy risky securities only at a discount because of the information asymmetry between managers and outside investors. Expecting this problem, managers prefer internally generated funds .when external funds have to be raised, firms prefer straight debt, and then a convertible debt, with external equity issued as last resort.
Despite extensive investigations into how firms determine their capital structures, the capital structure puzzle prevails. One of the difficulties researchers face in these studies is that a firm may deviate from its target leverage ratio. these deviations arise because operating and financial decisions push leverage above or below the firm’s target and transaction costs and market conditions may prevent immediate corrections. This financing deficit is attributed to factors that cause a firm to deviate from its target capital structure.
Shyam-sunder and Myers (1999), provide an influential empirical test of the pecking theory against the tradeoff theory. Using a sample of 157 firms, that had traded continuously from 1971 to 1987, they find that the basic pecking order model which predicts external debt financing driven by the financing deficit, has much greater explanatory power than the static trade off model. They argue that firm’s need for external financing and their internally generated funds may have time-series properties that lead to mean reversion of the debt ratio when firms follow a pecking order financing.
In recent years,Frank and Goyal (2003)find that the financing deficit is positively related to changes in leverage which indicates pecking order financing behaviour. In other words, managers prefer issuing debts to issuing equity when firms tend to make a financial decision by taking external funds. If asymmetric information makes major equity issues or retirements rare, this behaviour is nearly inevitable. The pecking order suggests that managers try to time issues when shares are fairly priced or overpriced. Investors understand this, and interpret a decision to issue stock as bad news. That explains why stock price usually fall when a stock issues is announced. The pecking order theory stresses the value of financial slack. Without sufficient slack, the firm may be caught at the bottom of the pecking order and be forced to choose between issuing undervalued shares, borrowing and risking financial distress, or passing up valuable investment opportunities. Financial slack is most valuable to firms with plenty of positive –NPV growth opportunities. This is another reason why growth companies usually aspire to be conservative in capital structures. Heaton documents some benefits and costs of free cash flow (Heaton, 2002:40-41).
Ho, et al (2006) shows that a firm’s ability to reap growth opportunities from research and development (R&D) investments depends on its size, leverage, and the industry concentration. The authors shed further important insights on the size- leverage interaction. They reveal that large firm’s advantages over small firms disappear as their leverage increases. In general, the pecking order should work well for small young nonpayer of dividend since they face more asymmetric information
SECTION 111
METHODOLOGY A cross section of 60 firms was investigated. Data was obtained from annual financial reports and securities and exchange commission over a ten year period (1996-2005) A cross section of 60 firms was investigated. Data was obtained from annual financial reports and securities and exchange commission over a ten year period (1996-2005)
(The financing deficit variable)
The basic pecking order theory predicts that leverage is a decreasing function of profitability. Adverse selection problem is the basis for the theory and since liquid assets/ retained earnings do not have any adverse selection problem, they constitute the best source of funds from insiders’ perspective.
Accordingly, the firm will fund all projects using retained earnings if possible. If there is an inadequate amount of retained earnings, then debt financing will be used. This argument leads to the standard pecking order in which debt dominates equity. Frank and Goyal (2003) run the following pooled panel regression
∆Dit = a + bpo DEFit + Eit … (3.1)
Where ∆Dit represents net debt issues and DEFit represents financing deficit. They argue that there is a support for the standard pecking order if a = 0 and b = 1.
∆Dit =net debt issued in year t(∆Di =long-term debt issuance-long-term debt reduction)
DEFit =Divt/+ It + ∆wt- ct……..(11)
Divt= cash dividends in year t.
It= net investment in year t(simply put, changes in fixed assets and long term investments).
∆wt = change in working capital in year t
Ct =cash flow after interest and taxes.
According to theory, the specification in equation (1) is defined in levels. When actually estimating equation (1),it is conventional to scale the variables by assets or by sales.Ayla Kayhan et al,(2007).The pecking order theory does not require such scaling. Of course, in an algebraic equality, if the right-hand side and the left-hand side are divided by the same value, the equality remains intact.however, in a regression, the estimated coefficient can be seriously affected if the scaling is by a variable that is correlated with the variables in the equation. Scaling is most often justified as a method of controlling for differences in firm size. When this variable is positive the firm invests more than it internally generates. When it is negative, the firm generates more cash than it invests; in other words, the firm has positive free cash flow. The interpretation of the pecking order hypothesis, described in Shyam-sunder and Myers(1999) and Frank and Goyal(2003),is that since debt is likely to be marginal source of financing; firms with high financial deficits are likely to increase their debt ratios
Following the argument of Halov and Heider (2005), that the standard Pecking order is a special case only when there is no asymmetric information about risk, we control for other determinants of debt issuance. The basic trade-off theory states that the level of leverage is determined by trading off the tax benefit of debt against the costs of financial distress. Controlling for other determinants of debt issuance helps us to see whether the adverse selection model [that is,(3.1)] falsely omits critical determinants of leverage. This allows a nesting of the conventional determinants of leverage from the trade-off theory within an adverse selection model. Following Frank and Goyal (2003) and Halov and Heider (2005), the set of regressions becomes:
∆Dit = ao bpo DEFit + bc ∆Cit + bv ∆Vit + bπ ∆πit + bs ∆LOGS + Eit
…(3.2).
The logic of (3.2) is simple. The pecking order theory is a competitor to other mainstream empirical models of corporate leverage. The specification in a nested model as in (3.2) above enables us to determine how the financing deficit performs when combined with conventional factors. The pecking order theory implies that the financing deficit ought to wipe out the effects of other variables. If the financing deficit is simply one factor among many that firms trade-off, then what is left is a generalized version of the trade-off theory.
Thus, for a firm in normal operations, equity will not be used and the financing deficit will match up net debt issues.
The pecking order in terms of the relative explanatory power of the financing deficit in observed capital structures can be stated thus:
ßpo = ßs = ßr = ßc = ßp
ßpo > ßs v, c, p = (Financing deficit dominates).
Our version of the regression analysis follows five stages thus
Į t = α + ßpo DEFt
Į t = α + ßpo DEFt = ßs St + ßvVt
Į t = α + ßpo DEFt = ßs St + ßvVt + ßcCt
Į t = α + ßs St = ßv Vt + ßcCt + ßp pt
Į t = α + ßpo DEFt = ßs St + ßvVt + ßcCt + ßp pt
Where Į t = Market leverage at time t
DEFt = Financing deficit at time t
St = Proxy for size at time t
Vt = Growth opportunities at time t
Ct = Tangibility of assets at time t
pt = Profitability at time t
Our model of target leverage was computed thus:
Į*t = Į t + DEFt
SECTION IV
Presentation And Analysis
TABLE 4.1a: EMPIRICAL RESULTS ON THE STANDARD PECKING ORDER
Constant
Deficit
R2
Adjusted R2
Std. Error of Estimate
F
DW
0.20
0.98
0.40
0.03
5.32
1.11
(4.29)+
(2.31)++
0.32
F represents F Ratio, while DW Dursin-Watson.
t values are in brackets n = 10
+ signifies one percent (0.01) significance
++ signifies five percent (0.05) significance.
The pecking order hypothesis can be stated statistically as
H1: a = 0 (pecking order holds)
Hi: a ≠ 0 (pecking order does not hold)
And
Ho: b = 1 (pecking order holds)
H1: b ≠ 0 (pecking order does not hold)
Table 4.1a indicates that the constant a is statistically different from zero. However, the slope coefficient b is close to one in support of the pecking order. The coefficient of determination indicates that the deficit explains forty percent (40%) of the variation in market leverage, our proxy for net borrowing.
It is important to stress that the variables used above were scaled by assets in line with empirical method. Scaling is most often justified as a method of controlling for differences in firm size.
The pecking order test implicitly makes different exogeneity assumptions and uses slightly different information set than is conventional in empirical research on leverage and leverage-adjusting behaviour. The conventional set of explanatory factors for leverage is the conventional set for a reason. The variables have survived many tests. As explained in our literature review, these variables also have conventional interpretations. Excluding such variables from consideration may (potentially) be a significant omission. More so, the result above indicates an unexplained variation in leverage of about sixty percent. Including such variable further poses a tough test for the pecking order theory.
Our version of the regression analysis follows five stages thus:
lt = a +bpo DEFt …………………………….. (as in 4.1)
lt = a +b po DEFt +bsSt + BvVt …………………….. (4.2)
lt = a +bpo DEFτ +bsSt + BvVt + bcCt………………… (4.3)
lt = a +bsSt + bvVt +bcCt + bππt ………………….. (4.4)
lt = a +bpoDEFt + bsSt +bvVt + bcCt + bππt ……..….. (4.5)
Where lt = market leverage at time t.
DEFt = financing deficit at time t.
St = Proxy for size at time t.
Vt = Growth opportunities at time t.
Ct = tangibility of assets at time t.
πt = profitability at time t.
Our empirical results are tabulated in 4.5b below.
Table 4.1b: RESULTS ON CONVENTIONAL LEVERAGE REGRESSION WITH FINANCING DEFICIT IN NESTED MODELS.
Regression Equation
Constant
DEF
Size
(S)
Growth
(V)
Collateral
(C)
Profit
(π)
R2
F
DW
4.4
0.20
(4.29)+
0.98
(2.31)++
0.40
5.32
1.11
4.5
0.36
(5.90)+
0.73
(2.44)++
-0.13
(-1.26)
-0.23
(-2.47)++
0.70
8.08
1.45
4.6
0.40
(9.04)+
0.53
(2.43)+++
-0.19
(-2.55)++
-0.30
(-4.35)+
-0.06
(-2.78)++
0.86
14.81
1.93
4.7
0.45
(7.47)+
-0.18
(-1.66)
-0.34
(-3.26)++
-0.08
(-2.58)++
-0.01
(-0.42)
0.70
6.36
2.27
4.8
0.39
(7.44)+
0.52
(2.12)+++
-0.19
(-2.23)++
-0.31
(-3.78)++
-0.06
(-2.50)++
-0.01
(-0.15)
0.83
9.53
1.88
n = 10
+ Significant at one percent (0.01)
++ Significant of five percent (0.05)
+++ Significant at ten percent (0.10)
Confirming predictions shared by the trade-off model and the standard pecking order model, firms with more growth opportunities have less market leverage. Confirming the pecking order model but contradicting the trade-off model, more profitable firms are less levered. However, the profitability coefficient is statistically insignificant.
On the explanatory power of deficit on observed debt ratios, table 4.1b indicates its dominance over the remaining conventional variables both by the partial derivatives and the coefficient of determination (R2 ).
Again, the financing deficit alone accounts for 40 percent of the variation in leverage while size and growth (put together) make up the balance of 30 percent. Collateral, our proxy for tangibility of assets explains 16 percent of the variations in leverage while the explanatory power of the regression once profitability is added. Table 4.1b indicates that no single variable is as potent as the financing deficit in explaining the variations in leverage over the period. A one percent increase in financing deficit leads to a .73% increase in market leverage. A one percent increase in size leads to a .19% decline in market leverage. A one percent increase in growth opportunities leads to a .3% decline in market leverage. A one percent rise in tangible assets leads to a decrease of .06% in leverage while a one percent rise in profitability leads to a decline of .01% in leverage. Though the profitability coefficient is consistent with the pecking order theory, it is not significant at all. This casts doubt on the plausibility of the pecking order. However, the statistically significant deficit coefficient that dominates other coefficients at all levels indicates that the pecking order is a strong theory in the Nigerian corporate environment. Empirical research along this line includes Graham and Harvey (2001), Fama and French (2002). Halov and Heider (2005).
To test for the degree of multicollinearity amongst the explanatory variables, the table below hereby presents our intercorrelation matrix.
TABLE 4.1c: INTERCORRELATION MATRIX OF MARKET LEVERAGE (L) WITH DEFICIT, SIZE, GROWTH, COLLATERAL AND PROFITABILITY.
L S V C Π
DEF
PPMCC. L.
1.00
S
0.63
1.00
V
-0.76
-0.92
1.00
C
π
-0.28
0.49
0.02
0.75
-0.14
-0.77
1.00
0.12
1.00
DEF
0.63
0.32
-0.31
-0.28
0.13
1.00
Sig (I-tailed) L
.
S
0.03
.
V
0.01
0.00
C
0.21
0.48
0.35
π
0.08
0.01
-0.01
0.37
.
DEF
0.03
0.18
-0.20
0.22
0.36
1.00
SECTION V
SUMMARY/CONCLUSION.
DEBT AND THE FINANCING DEFICIT
We now look at the analysis of the capital structure decision from a different point of view, the pecking order theory of Myers and Majluf (1984) and Myers (1984). As can be recalled, Myers and Majluf analyzed a firm with assets – in – place and a growth opportunity requiring additional financing. They assumed perfect financial markets, except that investors do not know the true worth of either the existing assets or the new opportunity. Therefore, investors cannot precisely value the securities issued to finance the new investment; If the firm announces an issue of common stock. This is good news for investors if it reveals a growth opportunity with positive net present value. It is bad news if managers believe the assets –in-place are overvalued by investors and decide to try to issue overvalued shares. (Issuing shares at too low a price transfers value from existing shareholders to new investors if the new shares are overvalued, the transfer goes the other way). The interested reader is referred to Myers (2001), Fama and French (2002) and the references cited in these papers for excellent exposition.
The pecking order theory predicts that the firm will fund all projects using internal equity if possible (Information asymmetries are assumed relevant only for external financing). If internal finance is not adequate, then debt financing will be used. Thus, for a firm in normal operations, equity will not be used and the financing deficit will match the net debt issues.
The empirical specification for the test of the standard pecking order is given as
lit = a + bpo D
CONCLUSION.A statistically significant deficit coefficient that dominates other coefficients in a nested regression model indicates that no single variable is as potent as the financing deficit in explaining the variation in leverage over the period of the financing deficit provides a strong support for the standard pecking order. The result is well in line with the empirical findings of Titman and Wessels(1988)our result was a strong confirmation of the pecking order in the financing behaviours of Nigeria quoted firms.
REFERENCES
Fama, E.F. and K.R. French (2002a) “Testing trade-off and pecking order predictions About Dividends and Debt,” Review of financial studies, 15, (1):1-33.
Frank, M.Z and V.K Goyal (2003) “Testing the Pecking Order Theory of Capital Structure,” Journal of Financial Economics, 67: 217-248.
Graham, J.R and C.R Harvey (2001)”The Theory and Practice of Corporate Finance: Evidence from the Field, ” Journal of financial Economics, 60, ( 2-3)May: 187-243.
Halov, N. and F. Heider (2005) “Capital Structure, risk and Asymmetric Information, “Working Paper NYU Stern School of Business. (December 1st, 2005).
Heaton, J.B. (2002) “Management, Optimism and Corporate Finance, “Financial Management, 31(2 )(summer) :33-45.
Ho, Y.K, M. Tjahjapranata and C.M Yap (2006) “Size, Leverage, Concentration, and R&D Investment in Generating Growth Opportunities”, Journal of Business 79, ( 2):851-876.
Myers, S.C. (1984) “The Capital structure puzzle”, Journal of Finance, 39, July, 575 – 592.
Myers, S.C. and N.S. Majluf (1984) “Corporate Financing and
Investment Decisions When Firms Have Information Investors Do Not Have”, Journal of Financial Economics, 13, June, 187 – 222.
Titman, S. and R. Wessels (1988) “The Determinants of Capital Structure Choice, ” Journal of Finance, 43, (1): 1-19
Owner Financing Wrap Around Mortgages – Austin Owner Finance Experts
Posted by admin in Finance Friday, 29 October 2010 23:48 No Comments
“A wrap-around mortgage, more-commonly known as a “wrap”, is a form of owner financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around and exists in addition to any superior mortgages already secured by the property. Under a wrap, a seller accepts a secured promissory note from the buyer for the amount due on the underlying mortgage plus an amount up to the remaining purchase money balance.
The new purchaser makes monthly payments to the seller, who is then responsible for making the payments to the underlying mortgagee(s). Should the new purchaser default on those payments, the seller then has the right of foreclosure to recapture the subject property.
Because wraps are a form of owner financing, they have the effect of lowering the barriers to ownership of real property; they also can expedite the process of purchasing a home. An example:
The seller, who has the original mortgage sells his home with the existing first mortgage in place and a second mortgage which he “carries back” from the buyer. The mortgage he takes from the buyer is for the amount of the first mortgage plus a negotiated amount less than or up to the sales price, minus any down payment and closing costs. The monthly payments are made by the buyer to the seller, who then continues to pay the first mortgage with the proceeds. When the buyer either sells or refinances the property, all mortgages are paid off in full, with the seller entitled to the difference in the payoff of the wrap and any underlying loan payoffs.
Typically, the seller also charges a spread. For example, a seller may have a mortgage at 6% and sell the property at a rate of 7% on a wraparound mortgage. He then would be making a 1% spread on the payments each month (roughly, anyway. The difference in principal amounts and amortization schedules will affect the actual spread made).
As title is actually transferred from seller to buyer, wraparound mortgage transactions will violate the due-on-sale clause of the underlying mortgage, if such a clause is present.”
For more great information on Owner Financing… visit Forte Properties in Austin, TX online at http://www.AustinOwnerFinancedHomes.com
Fort
Owner Financed Home Wrap-Around Mortgage. Austin Owner Financing
Posted by admin in Finance Friday, 29 October 2010 03:36 No Comments
A wrap-around mortgage, more-commonly known as a “wrap”, is a form of Owner Financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around and exists in addition to any superior mortgages already secured by the property. Under a wrap, a seller accepts a secured promissory note from the buyer for the amount due on the underlying mortgage plus an amount up to the remaining purchase money balance.
The new purchaser makes monthly payments to the seller, who is then responsible for making the payments to the underlying mortgagee(s). Should the new purchaser default on those payments, the seller then has the right of foreclosure to recapture the subject property.
Because wraps are a form of Owner Financing, they have the effect of lowering the barriers to ownership of real property; they also can expedite the process of purchasing a home.
An example:
The seller, who has the original mortgage sells his home with the existing first mortgage in place and a second mortgage which he “carries back” from the buyer. The mortgage he takes from the buyer is for the amount of the first mortgage plus a negotiated amount less than or up to the sales price, minus any down payment and closing costs. The monthly payments are made by the buyer to the seller, who then continues to pay the first mortgage with the proceeds. When the buyer either sells or refinances the property, all mortgages are paid off in full, with the seller entitled to the difference in the payoff of the wrap and any underlying loan payoffs.
Typically, the seller also charges a spread. For example, a seller may have a mortgage at 6% and sell the property at a rate of 7% on a wraparound mortgage. He then would be making a 1% spread on the payments each month (roughly, anyway. The difference in principal amounts and amortization schedules will affect the actual spread made).
As title is actually transferred from seller to buyer, wraparound mortgage transactions will violate the due-on-sale clause of the underlying mortgage, if such a clause is present.
For more info, visit: http://www.greathomestexas.com
Fort
With Owner Financing you can OWN a home with NO credit check!
Posted by admin in Finance Thursday, 28 October 2010 00:39 No Comments
You can buy a home with no credit check and actually own it! On an owner financed home purchase you get the deed at closing similar to if a bank had loaned you the money. Below are some details of the various programs available to people with less than perfect credit.
Rent to own – is just like it implies you do not own the property until you have made the very last payment so if you did a rent to own for 30 years it means it would not be yours until 360 payments (It will not be in your name until the 360th payment is made!!) have been made and guess what if you miss or are late on even one payment in most cases it reverts to renting with no chance of it being yours even if the remaining payments were made on time. You are a RENTER until the last payment is made!!
Lease option – Similar to a rent to own but here you are basically signing an agreement to buy the property at some future date. In the meantime you are paying a hefty “deposit” which is usually not refundable should you decide not to buy. This is a way for the landlord to get down payment benefits of a purchase on what is actually closer to a rental. If you do not exercise your lease option to buy you could lose both your deposit (lease option fee) as well as any payment credits.
Contract for deed – This is very similar to a rent to own. The difference is that on a contract for deed you have a purchase contract similar to that of a rent to own but here you get a promise for the deed to go in your name once all payments are made and you get very few real ownership benefits if any. Many states do not allow a contract for deed transaction or have heavy restrictions on the transaction but terms on these are usually pathetic. High interest rates and consequently high payments are common. Do your homework and rely on professionals other than just those trying to sell you the home.
Owner Financing is the way to own a home and without all the problems mentioned above. This is when a seller or owner of the home lets you pay them over time instead of requiring you to get a mortgage with a bank. You can buy Owner Financed homes and own the property immediately. This is fast becoming the most efficient, economical way for people with good bad or no credit to purchase a home.
Since Owner Financing doesn’t rely on your credit score, the purchase of your new home can be completed very quickly. Sometimes, the process can be completed in as little as a few days. You can also get good interest rates and a low down payment. Always consult a competent attorney to help you navigate through this simple process and before you know it you will own the home of your dreams with Owner Financing and NO credit check!
Fort
Owner Financing Homes is a WIN for Buyers and Sellers in Austin
Posted by admin in Finance Monday, 25 October 2010 12:02 No Comments
In today’s tough market, even well-priced homes are staying listed for months. Desperate sellers continue to lower prices, but with no success. Even with affordability at an all-time high, buyers are hesitant due to the instability of the overall economy. For those who are willing to buy, getting approved for a loan can be another roadblock to overcome. It’s times like these where inventive and highly-risky options are ready to be considered.
Jonathan Osman explains why owner financing can be a win-win situation:
“Essentially, in owner financing, you, the seller, are acting as the bank for the buyer. They qualify based on your criteria, pay you a mortgage every month, and they own the house. Much like the bank, if they are late on a mortgage payment, you can foreclose based on the terms of the mortgage and when they sell it, they will pay you the balance. While it is risky and isn’t for everyone, it can be extremely profitable and an excellent source of income through the interest paid on the loan. Most people never consider why a bank would ever consider lending money to someone who couldn’t pay it back. However, all one needs to do is to pull up an amortization chart to realize the profit involved in mortgages. For an example, take a $200,000 mortgage at a 5.5 percent interest rate. In the first year, the buyer has paid the seller $10,932.72 in interest and only $2694.20 in principal.”
Prospective buyers are not qualifying for loans for a variety of reasons, most of which are the result of the recent tightening of the lending guidelines.
If a seller needs to sell a property and is not risk averse, owner financing may be a way for the both properties to come out ahead.
http://www.AustinOwnerFinancedHomes.com
http://www.GreatHomesTexas.com
Fort
Hard Equity Financing
Posted by admin in Finance Monday, 25 October 2010 05:18 No Comments
Hard Equity Financing Reputation
Experimental finance
Main article: Experimental finance
Experimental finance aims to establish different market settings and environments to observe experimentally and provide a lens through which science can analyze agents’ behavior and the resulting characteristics of trading flows, information diffusion and aggregation, price setting mechanisms, and returns processes. Researchers in experimental finance can study to what extent existing financial economics theory makes valid predictions, and attempt to discover new principles on which such theory can be extended. Research may proceed by conducting trading simulations or by establishing and studying the behaviour of people in artificial competitive market-like settings.
Other types of bank services
* Private banking – Private banks provide banking services exclusively to high net worth individuals. Many financial services firms require a person or family to have a certain minimum net worth to qualify for private banking services. Private banks often provide more personal services, such as wealth management and tax planning, than normal retail banks.
* Capital market bank – bank that underwrite debt and equity, assist company deals (advisory services, underwriting and advisory fees), and restructure debt into structured finance products.
* Bank cards – include both credit cards and debit cards. Bank Of America is the largest issuer of bank cards.
* Credit card machine services and networks – Companies which provide credit card machine and payment networks call themselves “merchant card providers”.
Hard Equity Financing Business:A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity.
Owner Financed Real Estate For Sale – Austin Owner Financing
Posted by admin in Finance Wednesday, 20 October 2010 17:33 No Comments
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Resources of financing investments for elevation of the role of commercial and investment banks
Posted by admin in Finance Tuesday, 19 October 2010 07:52 No Comments
Again about investment financing of the banks. As practice shows, long-termed financing of programs doesn’t take place spontaneously, but it means analyzing and control of current activities of the enterprises. For satisfaction of such requests, unfortunately, not every enterprise appeared to be ready. There, where all these requests are satisfied, banks become active participants in processing plans of strategy and financial provision of investment activities of the enterprises.
A special attention is required by such direction of the activities of commercial banks, as project financing is, which, to our mind, requires administration and financial support from the government, we mean the condition, that for effective salvation of investment problems it is necessary to create finance-industrial groups, and holding unions, which, in its turn, represents initial form of forming thick financial capital at the market and confluence of bank capital to the industrial one.1 This will give rise to the growth of investment volume in the economy and growth of effectiveness of capital investments. Of course, creation of such unions will be actually supported by commercial banks, but this is interrupted by such condition, that groups created today provide this activity in unregistered form and nobody is interested in their registration. This is supported by incomplete logistic, slow development rates of the institute of private property, interruptions in realization of agrarian reforms, provision of accounting calculations of financial structures in incomplete form and existence of separate statements working opposite to the creation of holding unions in the low about industry. All mentioned above may be solved immediately, by processing special low about investment activity and on the basis of its setting by the parliament in a short period of time.
It must be mentioned, that there are enough conditions for widening financial investments in the economy from the bank side because of the existence of free cash means. It is important, that these financial resources were influxed and to create a system of rational organization of purposeful usage, which must be expressed by processing of the investment policy. Here an important meaning belongs to the investment policy and correct definition of tactics.
What problems are there in front of the banks? It is also to be mentioned, that commercial banks have numbers of problems while realization of their investment activities, which prevent their normal functioning. We mean the banks, working on financing investment projects, in fact, represent only one unit in the system of private institutions. We consider following to be preventing conditions of their activities:
· Existence of marketing center of the investment projects, a coordinating organ in the country scale, which would play a function of regulator in the financial provision of the investment projecting;
· Unacceptability o the information about position of a potential borrower or investment institution;
· Refusal of creation of deposit web;
· Low level of development of the investment funds existed today;
· Absence of state investment bank, total specific organ of financing investment activity and, consequently, spontaneous distribution of the functions of investment banks working abroad under the conditions of market economics among Georgian commercial banks.
It must be also mentioned, that there are many economical factors, which may influence negatively upon realization of investment processed by the banks and nobody can define beforehand nontransiency of expected risk danger of these factors. Herewith, widening of working sphere in the investment activity of commercial banks objectively requires: giving more independence and rights to the commercial banks, growth of effectiveness of long-term investments and growth of incomes, relatively with those received from short-term financial operations, fastening of this process, ll kinds of supports from the side of the government and finally, further statement of trustfulness and firmness of the activities of banking system.
About necessities of providing structure institutional reforms in the country. For guaranteeing firmness of banking activities structure-institutional reforms, min goal of which is preparation for new stage of development of banking field, come to the first place. Necessity of the mentioned reforms is conditioned by the position of financial market of the country. New institutions, as mentioned in the works of D. Nort – the laureate of Nobel Premium, are formed in the case when the society sees the possibility of making profit, which is impossible during active institutional system. Maximal investment activities of banks are possible during many-fielded system o a financial market. This is a result of logical development of competition, as it solves problems of optimal usage of financial resources. Exactly this many-fielded character reduces and stops crisis in the country.
Many-fielded character of the banking system is characteristic to the most part of developed countries (the USA, countries of western Europe, Japan) and also for the countries having transitional economics, which applied for firm economical growth in the last decimal (China, Poland, Brazil and others). Exactly this many fielded banking system gives possibilities for using various types and forms of financial service in economics by credit department.
In this system the state creates various mechanisms of artificial reduction of competition among financial organizations. An evident example of this is separation of credit institutions into commercial and investment-credit institutions in the USA, also reduction of the bans of countries in the sphere of realization of many year credit investments and separation of state bank into separate category.
About development of small-scale business in Georgia. Creation of advantage regime for small-scaled business, in the first place, regulates creation of competition able outer conditions of the investment activity, which must be definitely foreseen in the activities of the country’s banking system. It must also be mentioned, that according to the development and improvement of the economy in the future, perhaps, such activities may not be needed, but under the conditions of transitive economics their importance may not be specially noticed. It is natural, that many-fielded financial sector is formed only under the equal conditions of competition, as there is reason-resulted, reverse-influencing relation. Mentioned relation between many-fielded financial sector and competition is expressed by that it helps creation of advantage regime for the investment activity being in the position of an embryo and its further development.
Briefly about state regulation of the investment process. According to the many-fielded principle of the financial market, the state must work out such a system of regulating investment activity, which guarantees “peaceful” coexistence of various financial institutions notwithstanding their size and specialization. Banks of every category must “act” in their marketing “sphere”, while regulation of banks of different levels from the state is stated according to the rules of regulation. Privately, to our mind, it is important to point out and regulate activity spheres of those banks, which use a capital of governmental organs. Under the conditions of many-fielded system of a financial market competition carries “fair” character and this is why such system is much firmer. Privately, in case of many-fielded system, under the conditions of concrete fight, while financing concrete state programs by forming a system of specialized state banks usage of state resources is possible more effectively. In this case objective usage of lobbing of state resources from the side of commercial banks is not allowed. For example, in Germany realization of state projects of ecological, agrarian, building and other fields are provided by specialized commercial banks. There are specialized credits in the banking system of other developed countries (Japan, Italy, France and so on) too. Such practice significantly reduces danger of incorrect usage of state resources under the conditions of competition fight.
One of the most important factors, which degrade effective development of real sector of the economy, is the irrelevance of the needed financial capital for the regional services. Basic volume of financial resources from the enterprises is accumulated in the center. Such situation is in a way justified for the state, but it is absolutely insoluble in relation with the private companies.
According to the various estimations, regional banks control not more, than 20-30% of inflow of financial resources of the regional enterprise, and this seriously degrades development of the local banks and enterprises. Thus, for solving problems about lack of resources for crediting real sector of a small economics of regional banks, question related with it, must be discussed in relation with outflow of financial resources from the region. Solving of these problems by administrative activities is impossible, processing of appropriate economical activities is needed. We mean the condition, that together with the growth of the share of local budgetary tax income, it is important to define responsibilities of the budgets of municipal creations in the development of regional economics. Thus, financial federalism is that necessary condition, which guarantees, from one side, formation of balanced market of financial service, and, from nother, further development of the investment activities on the basis of appropriate legislative base.
What does a financial federalism bring to the financial market? Creation of equal conditions for the competition under the conditions of financial federalism will naturally lead us to the formation of many-fielded system of the financial market. Such process also gives rise to the creation of thick financial centers on the basis of the existed and newly formed banks. Thus, development of regional banks within the bounds of the conception of banking industry development, gives rise to the growth of financial potential o regional economics. At the modern stage conditions of development of bank branch sphere are being widened more and more. Today banks mostly provide sources of basic financial capital inflow in the way of “region-center”, after transition to the real federalism many-fielded banks transform into the banks providing sources for financial capital outflow among the regions.
It also must be mentioned, that it is important to grow the importance of banking business, which must be expressed by forming town and country credit relations, mutual crediting and insurance societies, and loan-constructing associations. All these must be foreseen in Georgia in the process of banking system development and, accordingly, an adequate logistic must be prepared for advantage conditions for development of small and middle banking businesses, because formation of effective financial system in the regional scale is absolutely impossible. Therewith, if we take into account the fact, that the investment portfolio in the structure of joint assets of Georgian commercial banks did not overcome 1% for the first of January of 1999, and 4% for the first of January of 2005, this speaks for the tendencies of growing portfolio investments.
Attraction of foreign investments. Globalization and internationalization of the world’s industrial relations gives rise to the growth of the role of foreign investments, as financing investment activities.
Essence and types of foreign investments. Foreign investments are hose capital resources, which are taken out of one country and invest abroad in this or that industrial activity, for the purpose of making industrial profit or receiving percents. Foreign investments may be realized in various forms. While analyzing this form we can use distinguished methods of approach for classification of the investments, which men their separation from each-other according to the objects, purposes, terms of investments, forms of property on the investment resources, risks and other signs. Herewith, the necessity of specific of foreign investments defines statement of number of classification features for the investments of this type.
For example, foreign investments may be state, private and combined according to the property forms on the investment resources.
State investments are those resources of state budget, which are directed abroad by decision of the government or inter governmental organizations. These resources may have the face of state resources, credits, grants ot support.
Private (nongovernmental) investments are resources of private investors placed into those objects, which are placed out of the bounds of given country.
They call combined investments joint placement abroad of the resources of the private investors and the government.
According to the character of usage, foreign investments may be industrial and loan.
Industrial investments are direct or indirect ones placed into the business of this or that type for taking some rights for making profit of dividend kind. Loan investments are related with the distribution of resources under the loan condition, for the purpose of receiving percent.
While analyzing foreign investments, apportioning of straight, portfolio and other investments is of a great importance. Movement of foreign investments according to the international currency funds and methodology of the countries’ taxation balances are reflected in this section.
Briefly about legislative situation of the foreign investments in Georgia. As shown in the chapters above, “investments” conceptually express long-term placement of the capital of solid quantity for the purpose of making profit. According to the Georgian low “about support and guarantees of the investment activities” investment is considered to be the valuable of every property and intellectual kind or the right, which is invested for the purpose of making possible profit and is used in the industrial activities provided on the Georgian territory. It may lean upon as inner (inside country), so outer (foreign) sources.
Here a great attention is paid to the investment surrounding (climate), which means real conditions existed in the country for the investments. It defines intensive attraction or declining foreign capital for the long-term investments. I.e. according to the concrete condition, investment surrounding may be as advantage, so in advantage, which is foreseen by every investor before making concrete step. Fundamental analyzing of the investment climate existed in the country and foreseeing risk factors are the basic goal f every investor.
Thus, it is definitely difficult to say, is present situation in Georgia good or bad. It would be more correct if we say that there are as advantage (stimulating), so preventing conditions in the country.
Foreign investments in Georgia are prevented by constitution, by the low “about support and guarantees of the investment activities” and by two-side agreement about investment encouragement and protection. Today Georgia has signed agreements with more then 23 countries about mutual support and protection and with 111 countries – about avoiding two-side taxation.
Legislative foundations and guarantees of their protection of realization of local and foreign investments in Georgia are defined by the low about guarantees and support of the investment activities, according to which foreign and local investors use equal rights. Privately, while realization of investment and industrial activities rights and guarantees of the foreign investors must not be less then those of the local juridical and physical persons.
According to the same low, physical and juridical person, also international organization, which provide investments in Georgia are considered to be the subject of the investment activity.
It must be mentioned, that after paying taxation and compulsory payments, a foreign investor gains right for unreduced repatriation abroad of the profit received from investments and other cash resources, and this may reduced only on the basis of the low – according to the court decision in case of bankrupting, crime or not fulfillment of civil obligations. Herewith, foreign investor has right to take abroad the property being under his/her property.
Georgian low “about supporting and guarantees of the investment activity”. Positive and negative sides. Georgian low “about supporting and guarantees of the investment activity” foresees as preventing and reductions in the sphere of providing investments, also the guarantee of protecting them, which means untouchable character of the investments and compensation in case of taking away investments within the bounds of the mentioned low. The compensation, which is given to the investor in case of taking investments off him/her, must conform to the real market value of the taken investments for that moment, when the taken off takes place. The compensation must be granted without any hamper and it must concern that loss of the investor from the moment of taking off till paying of the compensation mount.
It must be mentioned, that a new legislative act, which somehow worsens conditions of investments stated by this low, isn’t spread on already realized investments, ten years after its setting. In such case the investor realizes his/her activity according to the actual low until the new one is put down to the action.
A quarrel between foreign investor and state organ, if the method of its decision is not defined by dual agreement, is solved at Georgian court or in the international center of the investment quarrel. In the case, if the quarrel is not discussed in the international center of investment quarrel, the foreign investors have right to apply for the additional institute of the center or any other international arbitrageur organ, which is founded according to the rules set by the arbitrageur and international agreements of the commission of international trade low of the United Nations. Arbitrageur court of international trade palate in Georgia functions from December 11, in 2000.
According to the statistical showing, the most attractive sectors for the foreign investors were production of oil and gas, energetic, telecommunications and food industry according to the statistic showings during last years. Among largest investors there are such companies as Frontera Resources Corporation (USA), which has invested more then 30 million US dollars into Georgian oil production; Metromedia international – 40 million US dollars of investments in telecommunication; Pernod Ricard (France) – with the investments in alcohol production; AES (USA) – investments in distribution and generation of electro power.
By comparing showings we learn, that according to the hydro energetic potential, Georgia significantly overcomes such countries rich in the so-called “White Coal”, as France, Italy, Spain, Sweden, Romania and others. Though practically, less then 15% of real possibilities are used, and this gives large perspectives to the foreign investments in Georgia.
The fact is to be mentioned, that the foreign companies are interested in the process of privatization of state property, which is one of the most important part of the realized economical reform in Georgia. The fact, that foreign capital is invested in more then 100 Georgian companies proves this.
For influxing foreign capital into Georgia a positive surrounding is created by the existence of advantage conditions for development of such reduced fields, as oil production, black and colored metallurgy, separate kinds of mechanical engineering, mountain chemical industry, bottling of fresh and mineral water, production of building and decorating materials, tea, wine, fruit, citrus, wool, tobacco, industry of their refining and others.
Though foreign companies provide capital investments into these fields, for example, in agrarian and food industries, but it is provided in a very little quantity.
Factors of disadvantage surrounding in Georgia. Among those factors, which give rise to the disadvantage climate for influxing foreign investments in Georgia following are to be mentioned:
· Political strain and not quite seldom facts of lobbing business with unacceptable methods by the representatives of executive and legislative government, this takes away the basis of healthy competition as in common, so among the investors;
· Violation of the territorial integrity of the country, ethno conflicts, Not controlling of Abkhazia and South Alania (Smachablo), difficulties with protecting state boards, which spreads widely the door to contraband and prevents growth of risk factors of influxing of as native, so foreign investments;
· From the beginning of 90s of last year, analogue to the countries of post soviet space, sharp economical, financial, energetic, food, ecological and other crises developed in Georgia for not ordinal conditions, gave rise to the backwardness of our country’s economy for some decimals. It would be enough to say, that a level of whole European product consisted only 36.8% in 1999, compared with 1991. This was the lowest showing in whole post Soviet space. Such destroying of economical functioning, evidently, reduces requests on foreign investments and significantly restricted their influxing;
For the purpose of statement of the level of spreading negative occasions mentioned above and processing appropriate recommendations World Bank and European bank of reconstruction and development provided joint research, where they learned 22 countries having transitional economics. According to these researches they made a conclusion, that a showing of “state obedience” (of corrupting, taking into hands) in these countries consists average 21%. It must be mentioned, that same showing consists 24% in Georgia. What about average level of administrative corruption, it reaches up to 3%, while in Georgia – 4.3%.Iit is natural, that created situation fears foreign investors and prevents influxing of their capital in a large quantity in our countries.
According to the experience of last years, giving state guarantees to the foreign investments is more difficult. Though, if it were easy to achieve, it would not be enough for the foundation, as Georgian state doesn’t stand on the firm positions, for making n investor sure in stability of the country. For comparing let’s discuss investment surrounding of Czech Republic, privately, that part, according to which investment logistic of the country foresees from April 1998 such scheme of advantages, which concerns taxation, custom and those of definite regions, also, grants for creation working places and so on . According to the mentioned analyze following is cleared out, that equal priorities in using advantages are given as to the foreign investors, so to the local ones. At the same time, if we pay attention to the showing of inflow of straight foreign investments into Czech Republic by years, we’ll see, that after the quantity of straight foreign investments had been reduced in 1997 (1300 billion USD) relatively to 1996 (1428 billion USD), in 1998 it was doubled and consisted 2720 billion USD, and in 1999 equaled to 5108 billion USD. One of the stimulating factors of the mentioned progress must be considered involving a system of advantages activated in Czech Republic from 1998.
Unfortunately, there is not a firm system of foreign investments and insurance yet in Georgia, which would significantly help the process of making investment surrounding healthy and inflow of a large amount of investments from abroad.
Factors preventing development of the country economy – significantly wide scales of shadow economics and corruption, so-called distribution of influence spheres by clans, setting of a barrier in this or that spheres of business especially prevent, from one side, development of local business and, from another – influxing of large-scale international investments.
How to use international legislative norms in the Georgian investment activities. Thus, a lot of problems (complex of problems) are formed in the process of attracting and using of foreign investments, and they are regulated by legislative norms.
Whole logistic regulating foreign investments may be grouped in the following way:
1. special norms;
2. total civil norms;
3. norms of international agreement.
To special logistic in the first place belong special logistic and its following acts of quite large quantity.
Civil logistic regulates and conditions relations of foreign capital and enterprises participating with numerous counteragents. We mean various kinds of agreements, questions of representation, researching questions and so on. Thus, civil logistic is used in the case, when regulation of the activities of foreign investors is not provided with the special one, for its tight direction.
Norms of international agreements is the part of the country’s legislative system. International agreement gains special importance during international economical relations. Activation of the mentioned norm is basically spread on attracting and usage of foreign investments; following legislative acts belong to this sphere:
1. International dual agreement of mutual protection and encouragement of the investments. Dual agreements of foreign investments are discussed in this sphere as additional guarantees of the norms foreseen in national lows. Capital exporting countries and their investors consider that protection of foreign investment is more effectively solved in the way of inter-protection and encouragement of investments.
2. International two-sided agreement for avoiding double taxation. Such agreement usually defines sources of income – profit and property, which is taxed in the country without any reduction. It is being set, which incomes (profit) and property may be taxed in the country – with some reductions and what source of incomes may be set free from taxations;
3. Many-sided conventions. From those international conventions, which regulate relations related with the investments, two are important – Seoul Convention about stating many-sided agencies of protecting investment guaranties (1985) and Washington Convention about solving quarrels (1965).
Involving of many-sided system of investment guarantees was outrun by creation and development of state system of insuring capital export in the developed countries.
Before making decision about placement of sources by the foreign investor, one of the important conditions is – guarantees of security and protection of capital investments in that country, where investments are inflown, the state takes obligations – to guarantee protecting of foreign property, guarantee of rights and interests of the foreign investor, guarantee privacy of realization of investment activity of the country territory. Thus, under the conditions of strict competition, state forms as much liberal regime for foreign investors as possible.
What difficulties are there in Georgia from the point of attracting foreign investments? Difficulties of definite kind are expressed today in the developing countries and, accordingly, in Georgia in the affair of attracting foreign capital and its effective usage. We my name following reasons for this:
· Regulation of the activities of foreign investors is getting difficult with the absence of stabile legislative base;
· Worsening of material position of the most part of the country population gives rise o the growth of social tension;
· There still are criminal and corruption in some sectors of industrial activities;
· Inappropriate level of infrastructure development; also of transport, communications, system of telecommunication, hotel services, roads and so on;
· High level of unsteadiness of total politics, privately, instability of logistic and court system;
· Absence of joint state investment policy in the business of attracting foreign investments;
Herewith, notwithstanding the difficulties named above, the country owns great potential, what may be the subject for interesting foreign investors. Privately:
· Rich and comparatively cheap resort and tourist resources;
· A large inner undeveloped market;
· Richest reserves of mineral and curing waters;
· Comparatively cheap qualified labor force;
· Quite high staff of marketing development, which can master new technologies of production successfully and fast;
· Absence of serious competition by Georgian producers;
· Current process of privatization and possibilities of foreign investors in it;
· Possibility for making high profit very fast.
Thus, we can make a conclusion that, compared with the countries of Western Europe, notwithstanding large economical backwardness, Georgia can develop total investment activity comparatively faster, with the help of correct and effective usage of native and foreign investments.
Lamara Qoqiauri
Real member of the Academy of Economical Sciences of Georgia and New-York Academy of Science, Doctor of Economics, Professor
Lamara Qoqiauri
Why choose Owner Financing in Austin? Austin Owner Financed Homes
In owner financing, sellers provide short- or long-term mortgages to buyers, augmenting traditional lender financing or taking its place.
These sellers may be more apt to get an offer and close a deal quicker. The loan may yield interest and an income stream topping mortgage payments or investment interest rates, and there can be tax perks.
Offering financing carries risk. It takes good judgment to avoid the missteps big lenders made in the subprime debacle. Sellers should consult experts to help set up a loan and maybe a trust, handle documentation, keep records and file taxes. If you’re in the Austin area, i would highly suggest Forte Properties. They are the #1 Owner Finance specialists in Austin and surrounding areas.
Who needs seller financing? The list includes foreign buyers who may have trouble getting U.S. bank mortgages, and business owners or others who look cash-poor to a bank but have assets and income aplenty. Seller financing for luxury properties is especially in demand.
Sellers who finance can defer capital gains taxes for the period of the note and only pay income tax on the interest and principal income they get each year. Depending on how long a seller has held a home and the size of the down payment, he may not need to pay capital gains tax on that part of the transaction.
Rates And Costs
It can run a few hundred dollars for an attorney to review loan and sale papers. Usually the buyer pays.
Interest rates, amortization and note periods on these private loans are set by what the market will bear. Some undercut bank rates. Others get a premium. Usury laws make loans at unreasonable interest rates uncollectible, possibly illegal.
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Forte Properties is Austin’s #1 Owner Finance company.
Forte Properties is a full service real estate company that specializes in Owner Financed homes in Austin, TX and surrounding areas. We know how important the decision is when you have to choose professionals for various needs in your life; we take helping people who want to purchase a home very seriously.
We have a team of professionals in various facets of the real estate market dedicated to assisting you with whatever your real estate needs may be. Our customers are at the heart of what we do, and we are committed to finding your perfect home, based on your preferences, in a timely manner, for the best price possible.
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