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Lesson One

Leasing is an outdated methodology of financing which is now gaining recognition nearly in complete world. If you don’t have good credit, cheap earnings, and a low debt-to-earnings ratio (i.e., you earn so much compared to your monthly obligations), you probably won’t qualify for traditional financing. Benefits: The benefits of traditional financing are low-interest rates (typically), low loan costs (or points), and long loan durations (typically no less than 30 years).\n\nInterest rates upwards of 15% usually are not uncommon, and the upfront fees can usually whole 7-10% of the complete loan amount (7-10 points). Equity Investment is just a fancy title for “associate.” An equity investor will lend you money in return for some mounted share of the investment and profit.\n\nShould the borrower default on their mortgage, the accountant debits unhealthy debt expense and credit mortgage receivables account. Mortgage receivables are reported as long-term property in the steadiness sheet. The first thing any budgeter will let you know is you must know what is coming in. Gather your sources of earnings and record them.\n\nRich persons are continually in search of to increase their cashflow and by doing so that they turn into richer and richer, poor folks don’t give any thought to the word cashflow and thus they are continually buying liabilities that decrease their cashflow.