All Things Real Estate Financing

All Things Real Estate Financing

Real estate investments provide beginner investors with personal and financial benefits such as home appreciation, increased cash flow, and tax benefits. Real estate financing entails an investor’s process to secure funding to cater to an impending deal. Investors secure real estate financing to buy a plot of land, a home, or any other real estate property.

Financing Options

If you have an excellent deal on the table, there is no limit regarding ways to fund it. Real estate financing not only improves cash flow but also provides flexibility, options for collateral, and fluidity in repayment. Below is a list of real estate financing options to fund an investment in property.

  • Hard money lenders: Funded by individuals and private businesses, hard money lenders offer high-rate, short-term loans to real estate investors. They are accessible to investors with minimal credit scores who require a short-term loan to cater to their real estate financing needs.
  • Cash financing: Great for real estate investors with significant access to real estate financing, either through their personal or network connections, and who want to buy properties
  • Peer-to-peer lending: Great option for investors who want to raise the last portion of their real estate project. Peer-to-peer lending provides low-interest rates and high flexibility for real estate investors.

How to Secure Real Estate Financing

There is a misconception that real estate investments require significant funding to start, which isn’t true. There are numerous real estate financing options to fund every investment. Understanding the real estate financing aspect is crucial as sponsoring a specific deal impacts its outcome. Beginner investors should secure a real estate financing method that complements their business strategy. Most real estate investors should research numerous real estate financing options while tapping into their network for advice when in doubt.

Why You Should Consider Real Estate Financing

You Require Minimal Cash to Start With

The misconception that real estate investments require significant funds is false. Real estate investors should research multiple real estate financing options before securing funding. Note that every real estate financing option has cons and pros, and the financing method primarily depends on the situation and property type.

Smaller Markets Generate Adequate Revenue And Involve Minimal Risk

Beginner real estate investors must remember that smaller markets have fewer risks. Established investors avoid venturing into smaller markets due to the smaller geographical area. Smaller markets, however, widen the scope for beginner and savvy investors due to the vast difference in the ratio of the rent and price of purchase compared to metropolitans. This provides opportunities in the renting and investment domains.

Real estate investors should research the best real estate financing option for each deal. Contact an expert from Abundant Wealth Financial to discuss what the best real estate financing options are for you.

How to Manage Your Small Business Finances

How to Manage Your Small Business Finances

Are you planning to start a new business or expand your current one? Running a successful business requires one to have the right expertise in providing services or making products. One of the areas you should focus on is managing your business finances. Here are essential financial habits that can enhance your business’s success.  

Investing in Growth

Apart from meeting daily routines, it is crucial for business owners to focus on the future. This entails setting aside business finances for various growth opportunities that may arise and moving your small business in a stable financial direction. Growth helps a business attract the right stakeholders and focus on innovation, enabling it to compete healthily with others. Moreover, customers usually appreciate high service levels, while employees prefer businesses that invest in their careers.

Maintaining a Good Credit Score

As your business develops, you may need or want to buy additional properties, take more loans to finance your projects, or purchase additional insurance policies. A bad business credit score may affect the approval of these acquisitions and transactions.

One of the ways of maintaining good credit is paying for your debt funding on time. For instance, you should not allow your business’s credit cards to run a balance for weeks. You should also avoid applying for loans with high-interest rates.

Implementing a Good Billing Strategy

As a business owner, you may encounter clients who don’t pay their invoices on time. You should ensure your business has enough cash flow to meet its daily expenses to avoid delays and inconveniencing others. If you are facing billing issues, consider implementing a creative approach. For instance, you may introduce discounts for customers who pay their bills on time.

Monitoring Your Books

Although this may seem like an obvious practice, it is key to your business’s success. Whether you work with a bookkeeper or not, consider setting aside time to check and monitor your books. This enables you to familiarize yourself with your business finances, which may help you detect potential financial crimes.

Seeking financing is an effective way of enhancing your business’s success. Financial institutions can provide guidance and funding to help you meet your goal. At Abundant Wealth Financing, we offer exceptional financial solutions to our clients. Reach out to us today for more information.

How to Use Local SEO to Your Company’s Advantage

How you promote your business online plays a big part in how much success you see. One classic method of improving your digital presence is by ensuring your website and related assets meet current SEO standards. Though paying attention to the latest trends is one helpful way to tweak your copy and see better results, you also want to be as specific as possible when it comes to the optimization process. One perfect example of this is learning how to implement local SEO into the process. 

Start with Geo-Specific Directories

Where your business is listed will play a big part in its online presence. Before you begin optimizing your assets, you first want to make sure that your company is visible to people who exist in the communities you are targeting. Google My Business is a good place to start, as it acts as a modem yellow pages directory and aims to connect people in communities with local businesses. However, don’t limit yourself to one directory. Research the online community boards that might prove relevant and create a listing to attract an audience.  

Research Local Keywords

The optimization process usually involves infusing copy with relevant keywords and phrases. These words are often based around current consumer search trends, meaning that using the right terms is likely to rank you higher across popular engines. To take advantage of local SEO practices, try to be geo-specific with the keywords you utilize. Adding the names of specific locations in your area can also prove advantageous, as it increases the odds of your listing coming up when locals are seeking services you offer. Keywords change often, so be sure to update your copy every so often to remain relevant. 

Create Content for Specific Audiences

You might also find it helpful to cater some of your content to local audiences. When your business is situated in a specific location, it has the advantage of being able to relate to members of the community in a direct way. Use local legends, landmarks, and stories to craft content that people will find engaging, informative, or amusing. While you still want to keep some of your content broad to reach audiences near and far, cultivating a handful of unique pieces can provide you with a more robust return on your investment.

While search engine optimization has long been a trusted practice for business owners looking to improve their digital marketing strategies, you need to be as specific as possible in order to see the best outcome from your efforts. Contact Abundant Wealth Financial today to see how a geotargeted SEO campaign can boost your business.


10 Steps to Starting a Small Business Successfully

10 Steps to Starting a Small Business Successfully

Starting and managing a business can be tough. You need skills, expertise, and proper guidance to achieve your objectives. For first-timers, these steps are helpful to start a small business successfully.

Learn More About the Business

Having a business idea is not enough. Research your idea and learn how your small business will serve your target audience, the demographics, the products and services, market trends, and competition.

Write Your Business Plan

You need a roadmap to structure your small business and make significant progress in the market. A business plan is a map and guidance to meet your objective. This is also the foundation for a successful business.

Find a Business Location

As you research your business idea, be keen on the location. Setting your small business in an ideal location is crucial to success. Consider other businesses and competition before deciding on the location.

Secure Funds

Your working capital decides how stable your business will look in the long run. It is crucial to find means to sustain your business’s cash flow. The availability of conventional and alternative financial institutions should help you secure funds for your small business.

Create a Budget

Making costly financial mistakes is easy when setting up a small business without a budget. A budget helps you know your priorities and spend objectively as your business grows.

Choose a Business Structure

The amount of tax you will pay, daily operations, and the risk you will manage gets determined by the business structure you settle for. Seek expert help to learn the relevance of a business structure before choosing and applying one.

Choose a Business Name and Brand

Every small business needs a name and a brand to attract customers. Choosing a unique and relative business name and brand is crucial in this case. You easily attract customers and retain a good reputation with the right business name.

Register Your Business

Running a legitimate business is crucial. Ensure you handle the many legal issues by working with business lawyers and other professionals. You easily grow as a small business after registration.

Look for Business Insurance

You need business insurance to protect your assets and employees. Find a reputable insurer and buy policies to cover your small business properly.

Hire the Right Staff

Every startup business needs skilled and experienced staff to grow. You avoid mistakes and find it easy to navigate your small business with the right staff.

Starting a small business can be hectic without proper guidance. At Abundant Wealth Financing, we help you achieve success through reflective guidance. Contact us today.

Small Business Tips for Entrepreneurs

Small Business Tips for Entrepreneurs

Starting a small business and reaping from its success are two different things. For some entrepreneurs, the legal go-ahead to sell goods and services feels outstanding. However, that’s not all. You must have the strict business sense to keep your small venture growing daily. Keep reading the following tips to navigate your business for more benefits.

Hire Professionals When Necessary

The personnel you staff your small business with will inevitably determine its growth directly and indirectly. Qualified workers, for instance, will deliver excellent results, treat customers passionately, and stay up with the trends since they have the necessary business soft skills and vice versa. Therefore, consider a well-structured recruiting strategy to hire professionals to fill the available job openings.

Engage Your Customers

The primary goal is to meet your customers’ needs in time and as they wish. Customer relationship management forms the backbone of maintaining the existing ones and attracting new prospects. Therefore, learn to take time to understand what your clients require, how often they make purchases, and what they’re likely to buy next. Once you have this information, tailor and match your goods or services to the fast-changing customers’ specifications.

Build a Unique Brand

In an already-flooded industry, it’d be unwise for small business owners to reproduce the duplicate of existing products into the market. The rule of thumb is to identify a market gap and channel all your energy and resources to fill it. Further, build a distinctive brand that’s uniquely identifiable and easy to pick from other substitutes. And the only way to attain this is by delivering unmatched quality products to your customers.

Utilize Social Media

These days, it’s easy to reach your customers and promote your new products with just a click. It’s also a way to improve convenience and timeliness on your and buyers’ sides. Hence, create a solid online presence, create a referral program, use e-payment plans, reply to interested customers, and give feedback on time; the list is endless.

Success is every small business entrepreneur’s dream, regardless of size and niche. And, since its accomplishment calls for finances, keep the lack of it far away from drawing you back from achieving your goals. Abundant Wealth Financing has your back! Contact us today and experience more about the available funding options. You’ll be happy you did!

Finance Options for Business Growth

Finance Options for Business Growth

he process of obtaining a small business loan is a complicated one. However, military veterans have access to special programs through the United States SBA. Before you decide to pursue funding to grow your small business, it’s important to understand your options and the requirements for qualification.

VA Small Business Loan Explained

As a former member interested in starting a business, you are going to need some business funding. While you may be able to obtain funding through a traditional lender, you also have access to VA small business loans through the SBA. The Department of Veteran’s Affairs has nothing to do with these small business loans.

Just like traditional funding, these loans are provided by a lending partner and require repayment with interest. The difference is the SBA works with lenders to establish guidelines to reduce risk to the lender. This typically means lower interest rates and longer terms.

Types of VA Small Business Loans

There are several options available for veterans who are interested in a small business loan, including:

  • Standard 7(a) loans
  • Military Reservist Economic Injury Disaster Loans
  • Micro-loans
Qualifications for VA Business Loans

The qualification requirements vary based on the loan type, personal credit score of the applicant, and other factors. The basic requirements for the 7(a) loan program are:

  • Business exists for profit
  • Engaged in/propose to do business in the United States or it’s territories
  • Business owners have invested equity
  • Other alternatives have been exhausted
Other Financing Options for Veteran Business Owners

If the above options do not match your needs, there are other programs available for veteran business owners, including:

  • Street Shares
  • Service-Disabled Veteran-Owned Small Business Program
  • Hivers & Strivers
Resources for Veteran Business Owners

If you plan to establish your own business, there are several resources available to help, including the following:

  • National Veteran-Owned Business Association
  • Regional Business Associations
  • Veterans Business Outreach Centers
  • American Corporate Sponsors
  • Entrepreneurship Bootcamps
Do You Need Finance Options for Business Growth

If you are a United States military veteran interested in starting or growing your small business, you have options. Contact Abundant Wealth Financial to learn more about these options and more.

A Guide to Business Acquisition Financing

A Guide to Business Acquisition Financing

If you are a business owner who is pursuing an acquisition, there are certain things that you need to keep in mind, including:

  • Growth opportunity offered by the target company
  • Purchase price
  • Financing terms

If these things do not align, there’s a chance that the acquisition will fail. One of the most common mistakes is to focus on the purchase price without considering the present and future growth plans of the target company. Two of the most challenging aspects of a business acquisition is securing the required capital and the most ideal financing terms.

Acquisition Financing Options

When it comes to business acquisition financing, there are several options available and each will have its own unique set of eligibility criteria, cost, expectations, terms, and covenants. These options are:

  • Bank Financing
  • Seller Financing
  • Asset-based Financing
Bank Financing

If the business you are trying to acquire has a lot of assets, a strong profit margin, and positive cash flow, you should be able to obtain traditional bank financing. On the other hand, if your goal is to acquire a service company with a lot of receivables and short-term assets, it can be harder to obtain traditional financing.

You can improve your chances of getting a loan by finding a lender that has historically financed the type of business you are trying to acquire. If the seller has a relationship with a financial institution, try talking to them. Also, you don’t have to accept rejection- just find another lender to discuss your options with. After all, different lenders use different qualification criteria.

Seller Financing

For small- to middle-market transactions, the seller may be willing to finance a portion of the transaction. The easiest way to do this is for the buyer to make a down payment and the seller holds the promissory note for the balance of the purchase price. The business, as well as its assets, act as collateral.

The terms vary based on the specific agreement between the parties.

Asset-Based Financing

Recently, asset-based financing has increased in popularity as a viable funding source for business acquisitions. An asset-based loan is a revolving loan secured by the assets of the business. Typically, the loan is 65% to 80% of the value of the asset class.

The primary difference between traditional financing and asset-based financing is what the lender considers when underwriting the loan. In the case of traditional financing, the lender looks at the cash flow first and then the collateral value. On the other hand, in the case of an asset-based loan, the lender considers collateral, debt load, and quality of earnings.

The primary disadvantage of asset-based financing is the interest rates, which range between 12% to 28%.

Equity Financing

Equity financing involves securing equity from sources such as angel investors, private equity firms, and venture capitalists in order to raise the capital to pay the seller as well as to put working capital into the business.

At this time, most private equity firms are looking for deals with $2+ million in earnings and $10+ million in revenues. However, the owner must be willing to give up 51%+ of the company. So, the buyer won’t have debt but will have to give up control of the company.

In addition, most of these firms are looking for a 25% minimum rate of return on their investment. While each has its own expectations and exit strategy, generally they hope to sell the business or take it public within a certain period of time.

Mezzanine Financing

Mezzanine financing is a combination of debt and equity, involving a variety of technical terms such as equity investment, senior/subordinated debt, and private-placement transactions.

In recent years, the size of the mezzanine industry has grown over the past year and is expected to continue to grow as we move into the future.

Ensure Your Deal is a Success

In order to ensure the best chances for success in any deal structure and the best terms, make sure that your offer and/or business plan is well structured. You should base your plan on the combined business- not just the current one. The plan should show how combining operations will improve collateral and cash flow, as well as increase growth. If you need more help with your business acquisition financing, contact Abundant Wealth Financial today.

Annuity Financing: What is it?

Annuity Financing: What is it?

If you have an annuity and have short-term funding needs, you may want to consider annuity financing. This is the process of taking a loan directly from the annuity or using its value as collateral for a loan from an outside source.

Why Consider Annuity Financing?

There are a couple of reasons you might want to consider annuity financing, including:

  • Emergency needs such as a down payment on a home, supporting a family member, home repairs, or medical expenses
  • You don’t want to give up your annuity due to tax and surrender penalties that would lower its value
How Does Annuity Financing Work?

Before we explain how annuity financing works, we’ll explain the basics of deferred and non-qualified annuities.

A deferred annuity has an accumulation period in which it grows. At the end of this period, you can annuitize it, which converts it to an immediate annuity. This is when your payments start. This type of annuity can only be used for a loan during the accumulation period.

A non-qualified annuity is funded with post-tax dollars, while a qualified annuity is funded with pre-tax dollars. You may be able to borrow money during the accumulation phase on your non-qualified annuity. However, financing with a qualified annuity may be more complex.

Here are your financing options:

  • Take a loan directly from the annuity
  • Use the annuity as collateral
Advantages & Disadvantages of Using Your Annuity for a Loan

Annuity financing has several advantages and disadvantages, which we will explore below:


The advantages of annuity financing are:

  • Annuity financing allows you to avoid surrender charges. If you surrender a portion or all of the annuity for cash, you’ll be required to pay a fine. In some cases, these may cancel out any gains you’ve accrued.
  • Annuity financing allows you to avoid paying taxes and early distribution penalties. If you liquidate an annuity before you are 59.5 years old, you’ll be charged a 10% penalty on the amount that you withdraw.

The disadvantages of annuity financing are:

  • You may have to pay an early distribution penalty if you do not pay it back within the specified period of time. In addition, the amount withdrawn is subject to income tax by the federal government.
  • You reduce the amount that is available to earn interest, which reduces the growth of the annuity.
  • There are certain restrictions, which means this may not be the best use of your tax-deferred status.
Is Annuity Financing a Good Idea?

As a general rule, using your annuity for financing, selling it for a fraction of its worth, or surrendering it are the last resort. If possible, its best to have emergency funds set aside in flexible products such as an online savings account. You may also want to consider meeting with a tax advisor or other financial professional to discuss your goals and get some advice. If you need help, contact the experts at Abundant Wealth Financial. We can help you examine your options to get the funds you need.

How to Improve Your Web Development Abilities

Like most technology, web development adapts and changes seemingly at the speed of light. As a coder, you may be concerned with keeping up with new methods and industry trends. Therefore, these are a few ways you can maintain and improve your coding skills.

Practice Regularly

If you want to improve your basketball skills, your coach will tell you to increase your practice and do it regularly. The same strategy works for many other types of skills, and coding is one of them. The more you practice, the better your coding will be. Therefore, sit down and practice every day.

As you continuously use your skills, you will begin to see mistakes easier, your typing and analysis will be accelerated and you will learn about new practices early in their development.

Pursue Education

You can also take courses on new coding processes, and you should continuously learn about internet security and any new strategies that can help you secure your programming. Test out code editors, and when you find the one you like best, learn it inside and out. Some of these tools have features that can accelerate your productivity as well.

Also, don’t just stick with the programming language you know. However, don’t worry about learning every coding language that is out there. You can gain a general knowledge of those that are regularly used in web development while mastering the fundamentals of programming in general.

Challenge yourself. Find tutorials on new languages or build plugins that can help you and others. However, don’t get discouraged if you struggle with a concept or project. Remember that you may be working on projects developed by individuals with decades of coding experience.

Take Regular Breaks

Regular downtime is also valuable. You should not spend all day every day focused on improving your coding skills, especially if your regular job involves coding. You can actually lose productivity if you don’t spend time away from your projects and practice time.

Share Your Knowledge

The best way to learn and solidify your knowledge is to teach someone else. Therefore, you can improve your web development skills by sharing your knowledge with others. As you develop lesson plans, you will improve your organizational skills and teach your mind to put your instructions in the right order.

Remember, you don’t have to write about code, especially if you aren’t a strong writer. Instead, develop a video course or slide presentation that details different tips and tricks with a specific type of programming language or code editor tool.

It will take a bit of time and dedication, but you will find that by implementing these tips, your programming skills and productivity will increase. Contact Abundant Wealth Financial to learn more about effective web design services.


Is Private Equity Financing Right For You?

Is Private Equity Financing Right For You?

If you were to ask a small business owner where to get financing, they would probably be able to immediately list a few options. Chances are, they have a bank account somewhere, so the bank may be their first suggestion. Then, they may recall where they got their financing when they needed it.

However, if you were to ask them where to access private equity financing, they may not be so sure. Most of the time, when this topic is mentioned, they will suggest that you check with an attorney or accountant, or they may mention a private equity investor that approached them at one time.

Unfortunately, small business owners who are seeking capital and private equity investors don’t connect due to a variety of factors. This is typically because small business owners don’t know where to turn or there is a shortage of capital providers in their area. In addition, most private equity investors are only interested in businesses in a specific industry, certain cash flow profiles, and of a certain size.

Private equity investors look for companies they understand, with a management team they can connect with. They also prefer to invest in companies where they can add value. Beyond that, they place priority on transactions that benefit their fund.

In order to determine if private equity financing is right for your business, you must understand that there are advantages and disadvantages:

Advantages: Private equity financing provides you with capital beyond what you would get through traditional financing, as well as the chance to pursue a growth/acquisition initiative.

Disadvantages: Private equity financing can be expensive- traditional financing is almost always going to be cheaper.

The biggest problem isn’t financial but allowing an outsider in as a business partner. In traditional financing, the lender isn’t involved with the day-to-day operations of your business. They need regular statements and payments, and need you to abide by the terms of the agreement- but that’s all.

A private equity investor, on the other hand, is hands-on. If you do not have a board of directors, they will make one. If you do, they will take a seat on it. Then, they will set a strategy and create rules for future infusions of capital.

Private equity investors want to work with entrepreneurs that will be good partners and accept advice and feedback for growing the company.

If you’re interested in pursuing private equity financing for your business, take your time and do your research. Don’t wait until you need the money to get started with your search but build relationships and bridges ahead of time. Ask your accountant, lender, or attorney if they know of any private equity investors in your industry and area. Additionally, contact Abundant Wealth Financial for more information. We can help you determine if private equity investing is right for you.