Great Financial Advice
Show MenuHide Menu

How to Save BIG on Travel Expenses

December 15, 2014

Whether you are traveling to the next city over or the the next country over, there are several ways you can save big on travel expenses. Most of the ways you can cut costs depends on where you are going and when. One of the most basic ways to reduce your expenses, especially if it is for vacation purposes, is to travel in the off season of the destination. Hotels and transportation companies tend to be open all year round, and in the low or off seasons, will offer extreme discounts on services to help keep up their numbers and fill quotas. This will mean you can even find deals on services like renting luggage. For example, I took a golf trip in an off season and saved a ton on getting golf travel bags for rent.

The biggest way to save is by being flexible and knowledgeable.

Spur of the moment trips can be difficult to cut costs on and tend to be singular events. However, well planned trips can save you more than enough for repeat occurrences. Be prepared and learn about what the prime and off seasons time are for the destination. Beachfront resorts in the tropics tend to have the heaviest traffic during the Summer months, but have lulls at other times. Watch for annuals mark downs and deals that crop up only at certain times. Any major travel destination that pulls in a lot of tourist as an economic resource will offer different specials throughout the year to keep the economy moving. Winter holidays tend to not see as many crowds on the beach, which means there are more likely to be specials run during them. These discounted times can crop up at odd points during the year, so being flexible with when you want to travel can help you get the best deal possible.

0

One of the biggest travel expense people encounter is food.

If you have a hotel room that has a mini fridge and microwave, or at the very least a microwave, you can save hundreds on your trip by using the local grocery instead of eating out for every meal. Canned or bottled drinks, peanut butter, jelly, bread, snacks, and canned meals that don’t require refrigeration can be obtained just about anywhere. Stocking up and eating in your room by making your own meals can save you a lot when traveling, just as it can at home. If you are not able to stock a lot of meal type items, then sign up for a local grocery store membership to save money.

Funding Construction Projects With The Right Type Of Loan

October 6, 2014

Construction loans help finance both commercial and residential construction projects. Bridge financing is a type of financing that helps provide funding between the start of a project and when permanent financing comes in. There are various types of financing options the keep in mind the needs of the borrower. Financing for building is categorized into two types: residential and commercial.

Commercial Construction Loans

Real estate used for business is classified as commercial property. Financing for commercial construction is used to build structures such as restaurants, shopping malls, and office buildings. These types of loans are used to build a new structure, purchase real estate, renovate an existing building, or expand a structure. These types of loans are provided by credit unions, commercial banks, the U.S. Small Business Administration, and other types of lending institutions.

Commercial construction loans are further categorized into specific types of loans:

Acquisition and Development Loan

This type of loan covers purchasing the land and making improvements. Most improvements are known as horizontal improvements which include things like building roads, leveling the land, installing a sewer system, curbing, and grading. Typically, the building will be responsible for at least a portion of the cost of acquiring and developing the land, since the lending institution will usually not lend the entire amount.

bridging finance

Mini-Perm Loan

This type of loan is typically used by a builder before they can access their permanent sources of financing. This is a type of bridge and is a short-term loan used by the builder to build their operating history and help access long-term, permanent financing.


Bridging Finance Information

This type of bridge financing helps a builder or home owner bridge the time between when they apply for permanent financing and when it is approved by the lending institution. Bridge loans are typically provided by private lenders which is how they differ from mini-perm financing.

Take-Out Loan

A take-out loan is a permanent loan where the buyer of a structure uses the funds from the take-out loan to pay for the structure and the builder then uses those same funds to pay off their construction loan. The lending institution typically is part of the entire process, lending the funds to both the builder and the buyer.

Construction Interim Loan

This type of loan provides funding during the construction phase of a project. The loan is typically for a period of anywhere from six months to three years. During the period of the loan and construction, the builder will typically make interest-only payments on the balance of the loan. The approval of the loan is often subject to getting the permanent long-term financing. There loans have certain restrictions such as prepayment penalties and floating interest payment.

Joint Venture Loan

A joint venture loan happens when a lender and a builder enter into a partnership to share the profits and losses from a project. This partnership is used to obtain the necessary funding for a project.

Real Estate Purchase Loan

This type of loan is generally used to expand and improve existing commercial property. These loans typically use the existing property as collateral for the loan.

Residential Construction Loans

When a homeowner is building a new home, unless paying cash, a construction loan will be necessary to pay for labor and materials. The funds can also be used to purchase the land, too. Construction loans tend to be a little more complicated than traditional mortgage loans since the homeowner is borrowing money on something that is not built yet. The lender will want assurances that the home will be constructed on budget and on time.

If the construction loan will be converted to a mortgage when the home is complete, the lending institution will also want to be assured that the finished home and land will appraise high enough to support the amount of the mortgage.

Construction loans are sometimes called story loans because the lender needs to hear the story of the project and be convinced the homeowner and builder can make it happen. These types of loans come in a variety of forms and differ from lender to lender. Lenders also change the terms of these loans frequently, so it benefits homeowners to check around to find the best deal.

There are two types of home construction loans:
the one-time-close loan and the two-time-close loan. Money is disbursed by the lender based on a draw schedule that is pre-established by the lending institution and agreed to by the borrower and builder. The draw schedule typically allows for a certain amount based on completion of certain steps, such as completion of the foundation, another so much upon completion of the rough frame, etc. The point is to pay out for only what has been completed. The lending institution will also hold back retainage, which is usually ten percent of the cost of the project. This is help back until everything on the project is properly completed and a certificate of occupancy is issued.

One-Time-Close Construction Loan

These loans are the most popular type of construction loan for homeowners, but are also difficult to find in some areas. They are also called construction-to-permanent or all-in-one loans and are designed to wrap the construction and the mortgage funds into a single loan. This type of loans is approved by a single approval and has one closing which simplifies the process and reduces the closing costs.

There are several variations of this type of loan. Some types charge a higher interest rate for the construction loan and then lower the rate when it switches to the permanent financing. The borrower can usually choose from several types of mortgages offered in a type of portfolio. These may include a 30-year fixed or types of adjustable rate mortgages or ARMS.

Two-Time-Close Construction Loan

This is actually two separate loans. The first loan is a short-term loan used to fund the construction and the second is a long-term permanent mortgage. The homeowner essentially refinances when building is complete. The homeowner typically pays interest on only the money that is paid out during construction, so these payments are usually small.

Closing costs are usually larger for this type of loan since there are two closings. The mortgage rates may be better, though since the homeowner is actually refinancing for the permanent mortgage.

Financing construction, whether it is commercial or residential can be challenging. It pays to check out several lenders to ensure the best deal before signing on the dotted line.

Welcome ALL!

September 30, 2014

Thanks for visiting my website!

I will be posting first about getting loans in construction.

Many people wonder what kind of loans construction businesses get.

Well my father was in the business so he knows every type and gave me the skinny,

There are a ton, which is why I’m posting about how many different ones there are!

The post should be up in a couple of days so see you then :)

Regards,

Katherine