In the current economic climate there is no income, no cash, and no credit required. You can obtain funding to close all of your deals in 48 hrs!

With the sub-prime mortgage debacle, and the recent tightening of the credit markets, you have no doubt noticed how much more difficult it is to acquire financing for almost any real estate deal these days.

In the past, plenty of hard money options, along with double closings and simultaneous closings made closing REO's and Short Sales a breeze.

However, with the credit crunch, mortgage fraud, and tighter restrictions with lenders and title companies, closing on Real Estate Acquisitions isn't as easy as it used to be.

However, there is still one very simple and easy way to close your REO, and Short Sale transactions without using double closings, hard money, income verification, none of your own cash, No AAA credit, No simultaneous closings, or even the over complex land trusts.

That method is using back-to-back closings to get all of your short sale deals closed and funded on time. Back to back closings take a short sale deal and turn it into two separate and distinct transactions.

The first transaction is the homeowner facing foreclosure selling to the pre-foreclosure investor. The second transaction is the real estate investor then selling the property to the end retail buyer.

However, even if you are using a back to back closing, and your end retail buyer has secured their funds, what makes this work is that you need to secure your own funding, as the real estate investor.

So where do you get this funding of your deals? This is often called transactional funding, and today, there are many lenders making these types of loans. Lenders love transactional funding, because they are only lending for a period of a few hours, and this represents zero risk to the private investor's cash.

With the end buyer's loan already approved and in place, two separate and distinct transactions take place on the closing day. The first is the investor purchasing the short sale deal from the distressed homeowner.

This is funded by the transactional funding company. Immediately after this transaction has closed, the investor is then turning around and immediately selling the property to the end buyer.

The end buyer is using funds obtained by him through a traditional loan, or cash through lenders like Upperhouse Mortgage. Most conventional lenders today won't have any issue funding these loans.

The only such exception are FHA loans, which at the time of writing this article, have a 90 day seasoning requirement. However, as the real estate market changes, and the housing market remains volatile, it is very possible that the FHA might change its guidelines.

Transactional funding is the perfect way for pre-foreclosure investors to fund their short sale deals in today's foreclosure ridden market. There are plenty of choices for funding companies, all willing to fund these simple, easy short sale transactions.

However, one of these companies will even pay you a hefty commission to find deals for them up to $50 Million Dollars. You find it, they buy it, and you get paid a hefty commission. There will never be a better time for you to "Think And Grow Rich" in Real Estate!

Entering into short sale real estate contracts is a lengthy process. Oftentimes, borrowers enlist assistance from a real estate lawyer, realty agent, or short sale specialist. However, borrowers must obtain approval from their lender before listing their home as a short sale property.

Not all banks engage in short selling. Those that do require borrowers to prove they are financially insolvent and unable to fulfill their financial obligation. Short sales are generally reserved for borrowers who do not possess home equity and owe more than their home is worth.

In some instances, banks will grant short sale approval to borrowers who possess home equity and are current on loan payments. Borrowers facing financial challenges due to the death of a spouse, divorce or terminal illness might qualify for real estate short sale.

The first step involves contacting the bank's loss mitigation department. Loss mitigators usually attempt to qualify borrowers for loan modifications to help them remain in their home. If short selling is an option, borrowers must submit financial and real estate documents to their assigned loss mitigator.

Although short sale protocol varies by lender, most require the same financial documents. Short sale packets consist of legal forms, financial records and a letter of hardship. These documents can be your ticket to financial freedom.

Take time to review the information, fill out every form, double-check everything twice, have a real estate attorney review the documents, and make certain to return the packet on time. Do not lie or exaggerate information. Providing false financial information in a real estate transaction is a federal offense which carries a penalty of jail time and expensive fines.

The short sale hardship letter could very well be the most important letter you will ever write. Hardship letters give borrowers the opportunity to explain circumstances that caused them to become delinquent on their home mortgage loan.

Letters of hardship should be written in chronological order, outlining events that caused financial problems. It is important to list any action taken to overcome financial challenges. If you discontinued cable TV and cut up credit cards, state these facts in the hardship letter.

Once short sale approval is obtained, borrowers are required to sell their property within a specified timeframe. Most lenders require borrowers to have a prequalified buyer in place before authorizing a short sale transaction. Others grant borrowers' time to list their property through a realtor. If the property is not sold by the deadline, lenders commence with foreclosure action.

One lesser known option for selling foreclosure short sale real estate is to seek out private investors. Many real estate investors are familiar with short selling and can assist throughout the process.

Before signing short sale contracts, be certain to inquire which type of short sale agreement is offered. Some mortgage lenders hold borrowers responsible for the deficiency amount of the sale price and loan balance. If borrowers are unable to pay the amount in full, lenders obtain a court authorized judgment which remains on credit reports until restitution is paid in full.

Other banks accept the sale price as payment in full and do not hold borrowers responsible for the deficiency. This is referred to as Payment in Full without Pursuit of Deficiency Judgment. Obviously, this is the preferred short sale real estate option.

For discussion purposes we are going to assume a homeowner is a short sale candidate.

For the homeowner, a short sale makes it possible to sell their home for less than the total amount owed. The sale of the property releases the homeowner from their debts and obligations without having to file bankruptcy or endure foreclosure. The homeowner is able to save their credit, regain their dignity and their peace of mind. Lastly, the homeowner will be closer to rediscovering the American dream of homeownership because they are able to amicably resolve their lender(s)' concerns.

 

For the lender(s), a short sale can be less costly than foreclosure and can provide an acceptable hedge against future price declines within the market. Also, for lenders that have become insolvent and need to liquidate assets, a short sale is a way to quickly raise capital when compared to the foreclosure option – a process that could take a year or more to accomplish. Lastly, for lender(s), a short sale means a guaranteed loss now as opposed to an uncertain loss in the future. This may be in many instantances a much larger loss.

For the investor buyer, a short sale offers them the opportunity to “Buy a property for as much as 40% or more below market value.” This discount means that they are able to make substantial profits.

For the home buyer, a short sale offers them the opportunity to buy a more affordable home. For some, this is the only way to experience the American dream and obtain homeownership, as the lower price relates to a lower and more affordable monthly mortgage payment.

For the Realtor or consultant, a short sale provides the opportunity to earn a fee or commission for helping a struggling homeowner. In many down markets short sales are the only viable option for continued real estate sales. During difficult economic times and recessions, one or two extra sales per month may be the difference between earning a living or looking for another job. Those extra sales each month can come from negotiating a short sale.

If you are a Property Owner and realize the benefit of negotiating a short sale for your property instead of facing foreclosure or bankruptcy, then we encourage you to Become a Property Owner Member today!

If you are a Realtor and realize the benefit of being able to negotiate short sales, sell discounted properties, and increase your ability to take future listings, then Become a Realtor Member today!

If you are an Investor and realize the benefit of having access to a step-by-step system that teaches you how to successfully negotiate and purchase properties, discounted up to 40% or more below market value, then Become an Investor Member today!

We offer dozens more free articles on our site as well as the Internet's first step-by-step, "how to" guide that walks everyday people as well as seasoned professionals through successfully negotiating their very own real estate short sales - and at a price you can afford.

1. Protects the owners from personal liabilities. This means you and your family or partners will not be legally liable for any business related payments in case of debt. Incorporating a business protects your home and personal assets from risks.

2. Corporations pay lower taxes and do not pay social security, Medicare, and workers compensation and so on. This is almost 15.3% in taxes and payable by individual proprietors. As a corporation you will save money.

3. Incorporating a company as a c-corporation can save almost 15% tax. By dividing the income between the corporation and shareholders business save thousands of dollars every year. Greater savings lei in re-investing profits in other business ventures and employee perks.

4. Corporations can deduct business losses and these can be carried back three years and forward for 15 years.

5. In a corporation, great savings are made by introducing retirement plans and corporate matching programs.

6. A corporation ensures continuity of the business even after the demise of the owner or shareholder.

7. Setting up a corporation results in adoption of modern management techniques and creation of central management systems. This prevents duplication of efforts and smooth functioning of the organization.

8. Setting up a corporation means ownership can be easily transferred by transferring the stock held.

Incorporation lends business longevity and protects it from inheritance squabbles. Incorporation can also be done such that it offers anonymity to its owners. When a business is a corporation it is easier to raise capital and sell stock or equity to raise operating funds. Investors and financial institutions are less likely to invest in a company that is individually owned.

Corporations provide the ability for a business to raise capital through share offerings, to exist as their own entity and reduce the personal liability of its owners and shareholders. In addition, there are tax advantages that come with being a corporation - such as the ability to write off health and benefit plans of employees. It is often said that a corporation has a "life of its own" and as such, can exist well beyond the lifetime of the original owners.

However, there are also downfalls to incorporating: You may find that it results in higher taxes overall despite the increased write-offs; the cost of incorporating a business is considerable, and requires a lot of knowledge and legal planning; a corporation is overseen by both local, state and federal entities, which usually requires increased paperwork and compliancy on all levels.

Corporations generally fall under two distinct types: A "C" Corporation (typical) and a Limited Liability Company (LLC). There is also what is known as a Subchapter S Corporation, though this is strictly a tax election only where the earnings and profits are listed as distributions on a personal tax return.

"C" Corporation A "C" Corporation is the typical model that most corporations follow. Under this model, stock can be sold in the company to raise capital, and is considered a separate taxable entity. After a corporation is formed it exists infinitely as long as yearly fees are maintained.

To form a corporation, you must file "Articles of Incorporation" with your state government. You must also establish a set of bylaws for your corporation. While bylaws do not have to be filed with the state, they are important because they set out the basic rules that govern the ongoing formalities and decisions of corporate life, such as how and when to hold regular and special meetings of directors and shareholders and the number of votes that are necessary to approve corporate decisions. While this may not seem important at first, its value will come into play when stock is issued outside the ownership of the original owners.

Limited Liability Company (LLC) A Limited Liability Company (LLC) is a hybrid of a "C" Corporation and partnerships. It affords the same protections as a "C" Corporation but allows for the pass-through tax structure of partnerships. It is more difficult to setup an LLC, but it is often easier to run one than a corporation.

One of the biggest drawbacks to an LLC is that a court may treat the LLC as an extension of the owner's personal affairs, rather than as a separate entity. In this case none of the protections afforded a corporation would apply and you would assume all liability. In order to prevent this from happening it is important that you act fairly and legally in all business transactions, keep the business well funded, keep the business funds separate from any personal funds, and create and maintain an operating agreement.

For taxing purposes, an LLC is taxes through the owner's personal income taxes. The income and expenses of the business are listed as distributions on Schedule C for sole ownership businesses and IRS Form 1065 for businesses with multiple owners.

LLC and "C" Corporations Compared

Similarities ·Both are considered legal entities and are filed with the state government. ·Both provide limited liability protection; the owners are typically not personally responsible for the debts and liabilities of the business. However, the officers can be held personally responsible for their actions - such as failure to withhold and pay employment taxes. ·Both entities have very few ownership restrictions.

Differences ·Taxation: The LLC is a pass-through tax entity - this means that the income or loss generated by the business is reflected on the personal income tax return of the owners. A "C" Corporation is a separately taxable entity. The profits and losses are taxed directly to the corporation.

Formalities:

A "C" Corporation requires that certain formalities be followed. The corporation must hold annual meetings of shareholders and directors each year and meeting minutes must be kept with the corporation's records. A LLC is not required to hold annual meetings; however, it is a good idea to document major decisions of the company for legal purposes.

·Transferability of Interest: Transferring stock in a corporation is typically easier than the transfer of ownership with an LLC. A shareholder of a corporation is not required to get approval of the other shareholders before selling stock. With an LLC, the usual rule is that the owners must obtain approval of the other owners before ownership can be sold or transferred.

Where to Incorporate When it comes to incorporating your business you are not restricted to the state you currently reside in. You can incorporate in any of the 50 states. Many people choose to incorporate in their home state where they currently are doing business. Doing so may save you money because corporations are required to register as a "foreign corporation" in each state where they do business outside of their state of incorporation.

However, if your home state has a high corporate income tax or high state incorporation fee it may be wise to incorporate elsewhere. In addition, certain states are more corporation friendly than others (pro-business). They offer added protections and further limit the liability of the corporation when it comes to legal matters, as well as offering less strict laws and regulations on what can and cannot be done within the corporation itself.

Delaware is a popular choice because of its pro-business climate. Over half of the companies listed on the New York Stock Exchange are incorporated in Delaware. Recently, Nevada has also gained popularity due to its pro-business environment and lack of a formal information-sharing agreement with the IRS. In addition, Nevada does not have corporate income taxes.

As you can imagine, states often compete for businesses to incorporate there. Take your time to research the benefits of each, and consult a business lawyer for advice if you are unsure of the advantages or disadvantages of a certain location.

When to Incorporate There is no set rule or timeline on when you should incorporate, or even if you have to. Often businesses incorporate to take advantage of the limited liability protection as well as the tax advantages offered by being a corporation. However, remember that a corporation requires strict guidelines, procedures and paperwork that can take valuable time and money away from a small business, or one that is just getting started.

Remember, as a corporation there is more items that you can deduct from your taxes, but overall your taxes may increase.

There are numerous advantages to incorporating your small business, but limited financial obligation is one of the biggest advantages. When you owned or have sole proprietorship accpunt to the company all the liabilities of the company is on the owner. When incorporating your business, your only liabilities is to all the same much you invest in the company.

On sole proprietorship all of your personal property, such as home and car, can be passed on to help pay the debt of the company. As a stockholder in the company, you have no more

obligation whatsoever for the debts of the business, that is naturally unless you give a guarantee.

Some other advantage to incorporating a small business is the power to raise income so a good deal easier. With this power to raise money much easier, this would growths the likeliness of the business growing and expanding. Any sole proprietorship can lend money and incur debt like any business. Even so, with a corporation you can deal shares and increase equity capital, which is a big advantage in in you. Generally you dont have to pay back equity capital and with no interest.

There are numerous tax advantages with getting a corporation that you are able to check as well. A few of these advantages include profit splitting, potential tax deferral and more. With the reasons mentioned, a corporation can have an limitless life. The life of a corporation is not depend on each individuals, but the company as a one. With this, the company has the chance of lasting forever just as long

merges with another company or goes bankrupt.

Now that I have list up the advantages of incorporating your small business, here some negative possibilities on incorporating the business.

Since you incorporate your small business, there now will comprise two tax returns to file every year, one for your personal income and one for the corporation. This may not be a big deal, but

in the contrary to a sole proprietorship a corporation can't deduct its losses from the personal profit of the owner. Addition, having another tax return is the last thing different business ownerwould like to deal with.

As a corporation is very much larger and further complex then a small business, consequently the cost to produce one is much higher. Just to build the corporation will cost a lot more, then you have to hang on the expanded maintenance charge, accounting fees, and alot more.

As most business men said, a larger business entails more paperwork that must be taken attention of. Corporations must havea minute book, which entails the corporate by laws and minutes from corporate meetings. Reports and tax returns must be accomplished showing neatness and in a timely fashion. All of the business bank accounts and records have to be kept apart from personal

accounts and assets. That may sound like a burden, but that is just the start of the expanded paperwork that goes with the district of incorporating your small business.

Although there are numerous advantages and disadvantages to incorporating your small business, the final decision goes to you. It is a decision that break your business, consequently much much more research is suggested. Even so, small business incorporating should be a matter that fits you and others associated with you best.

You understand that you can gain several advantages by expanding your business outside your region. Benefits such as: – Increasing your sales and profits – Gaining additional market share – Taking advantage of the global economy – Minimizing the impact of seasonal fluctuations on your business – Extending the reach of your market – Reducing your dependence on your regional market – Increasing your knowledge of your foreign competition

Before you expand you ask the very basic question of why expand into the United States and what does the US economy have to offer me?

Everyone knows about the wealth of the United States and the vibrant economy. The USA has a Gross Domestic Product (GDP) approximately forty-percent higher than most western European countries and Japan, as well as having one of the highest levels of disposable income for the consumer. Other advantages to expanding and incorporating your business in the United States include a business friendly regulatory environment, one of the best infrastructures in the world and an educated labor pool to meet all your business requirements.

The United States celebrates the entrepreneur and has created a business environment that favors small business owners, whether they are US citizens or investors outside the United States. Small businesses, which are defined by the Small Business Administration as having fewer than 500 employees, represent 99.7 percent of all employers. They have generated 60 to 80 percent of the new jobs in the United States over the past year and account for more than 50 percent of non-farm GDP.

The government promotes free trade and deregulation of businesses allowing owners to compete based on the merits and value of the product and services they offer. It also allows owners the ability to adjust the size of their work force easily with few ramifications. If a business has to lay-off workers it can do so without several months of advance notice. This is unlike a number of other countries which require several months advance notice to lay-off workers. In addition the US allows profits and capital gains to be repatriated to almost every country, subject only to taxation.

A key to expanding and reaching your customers is ease of accessibility to the market. Can you get your goods or services to your end user and if so what is the cost of delivering your products or services. Because the infrastructure within the United States is so outstanding a business should never have a problem with distributing the goods or products to customers in the United States.

There is not a place or customer within the United States that you cannot reach either via phone, internet or roadway. The United States has 268 million land line telephone users, over 194 million mobile phone users, and over 203 million internet users. There are over 14,000 airports with 5,000 of those airports having paved runways. If you do not want to have your product delivered by air or you do not need to fly to a destination you can drive or take a train. There are over 6,407 kilometers of roadway with 74,000 of them highways and 227,000 kilometers of railway.

Every business owner knows that they must rely on their employees to help implement and execute their business plan if they are to be successful. The United States work force, whether it is laborers or skilled employees are experienced and well educated.

The likelihood to comprehend, implement and successfully execute a business plan is much higher with an educated work force than with a non-educated work force. Additionally, if the business requires a technically skilled employee, you can draw on a well educated and skilled pool of individuals from any sector, whether it is research, technology, healthcare, retail, manufacturing or construction.

Finally, launching and incorporating your business in the United States, although it has never been easier, is still a daunting task. A key factor in determining your success is finding key local resources and using the right tools to help you implement, execute and manage your business plan and communicate the performance and progress of your business. A trusted local resource, such as a local CPA firm, combined with right tools will allow you to manage and monitor your business remotely.

Now is the time to take advantage of the US economy and expand your business and launch your new corporation in the United States.

Incorporating a business: a few words should be written about the roles and responsibilities of those involved with and acting on behalf of or for the corporation.

A corporation is created by having the initial directors file articles of incorporation in the jurisdiction in which the corporation is going to have its head office (provincial licenses will also be required to operate the corporation in particularly provinces).

After this, the directors have got a few things to do to get the corporation organized and up and running. For example, they will need to pass a By-Law (which gives the corporation's directors power-making authority), pass director resolutions, issue shares to shareholders (and have the shareholders subscribe to shares), have the shareholders ratify the by-law, have the shareholders vote in the new directors, etc. Without these essential steps and documents, a corporation is not a legally operational entity.

The board of directors is comprised of individuals and typically a chairperson who oversee the affairs of the corporation , but not typically on a day-to-day basis. The directors are typically paid to sit on the board, but it's not a lot of money (as compared with the corporate officers) because they don't meet that often and are not responsible for the day-to-day affairs of the corporation (as officers are). The board is typically comprised of individuals with expertise in certain areas and who sit on a number of corporate boards. They offer their insight and are accountable to the shareholders who vote them in.

For their part, shareholders are the owners of the corporation and have the power to vote in the directors of the corporation. If there is only one sole shareholder holding all of the shares of the corporation then that person could vote in all of the directors. It is possible to have only one shareholder and one director of a corporation.

Finally, officers of a corporation are appointed by the board of directors in order to oversee the day-to-day management of the corporation's affairs. The titles of officers are not that important, although traditionally most people have come to know officers as one of the following: President, Chief Executive Officer, Treasurer, Chief Financial Officer, Secretary, Vice-President, etc. It does not really matter what these individuals are called. Often, their titles, roles, and responsibilities will be outlined in a corporate by-law, which establishes their position and sets out their qualifications, powers, duties, etc. Officers can be replaced by the board of directors, to whom they are accountable.

So to summarize: shareholders with voting power will vote in the directors on an annual basis (or sooner in certain circumstances), directors have the power to manage the corporation and they meet only a few times a year, and officers (e.g. CEO, VP, CFO, Treasurer, President, etc.) are the people who run the corporation on a daily basis and who are appointed (not elected) by the directors on an annual (or sooner in certain circumstances) basis.

Barring any unforeseen declinations in quality, real estate, unlike a car, generally appreciates in value.  This means that once a property is purchased, the value of that property steadily increases over time.  Residential real estate is especially prone to this process.  This is so because residences are comparatively priced.  This means that the value of a property is largely dependent on the value of the surrounding properties.  Therefore, if one house appreciates in value, then the surrounding properties also increase in worth.  An investor can force appreciation by investing in repairs or improvements.

A somewhat lesser known reason that so many people are learning how to become a real estate investor is the beneficial tax rules governing such transactions.  State and federal governments try to encourage investment by writing financial rewards into the tax code.  There are two main rewards built in.  First, an investor can claim monthly mortgage payments as a tax deduction.  Secondly, tax deductions can be made through a process called depreciation.  Though a property may appreciate in value, an investor is allowed to make the assumption that it will actually depreciate over the projected useful lifespan of the unit.  He or she is then allowed to claim this theoretical loss as a tax deduction.

Another strong reason for becoming an investor is called leverage.  Leverage can best be explained through an example.  Say you bought a house for ten thousand dollars and then sold it for eleven thousand dollars.  Your profit margin would be ten percent.  However, if you get an initial loan for the purchase and make a down payment of only one thousand dollars, then your profit margin would be one hundred percent.  This method is called leverage and is a great way to maximize profits.

For all these reasons real estate investing is both an easy and very profitable business to get into.

If you are willing to work hard and are excited about getting paid by the amount of work you put in, this could be the right profession for you. Second, how many of you are not able to set your own schedule? A great perk about being a realtor is that you can set your own schedule. Just last week I was able to take a few days off, and another agent was able to cover for me. How often do you wake up and think, if only I could sleep one more hour? As a real estate agent we have the flexibility to sleep in and get to work a little later if that fits our needs. Now there are many times that I work past 5:00p.m but there are days where I would rather sleep in and work a little later than be exhausted all day. Do you ever feel the same way?

The potential income is another benefit of being a realtor. I wrote earlier about how the harder you work the more money that you can make, but I didn’t talk about how much money you can make. The location of where you are going to work is going to play a major role in how much money you make, but there is potential to make a seven figure income. Now a seven figure income will not come easily and you will likely be working 60-80 hours a week, but it is possible if you are willing to take the time, energy and expenses to get there. Finally, if you enjoy working with others and enjoy fulfilling other people’s needs this could be your dream job. Everyday is spent making contacts with clients, prospecting, and getting in front of others. You will be the person they are looking for when they need advice about buying or selling their home, and they will appreciate all the hard work that you give them. Real Estate provides a vocation that has unlimited potential for income, a profession that allows you to make more money if you work harder, a very flexible schedule, and a chance to make a difference with many people. So if this is something that you are looking for, begin your exciting career in real estate.