Understanding Real Estate Terms Part Two: M-Z

Matthew Gorelik - Understanding Real Estate Terms 2 Blog Header.png

Originally published on MatthewGorelik.io

Welcome to this month’s continuation of Understanding Real Estate Terms. We covered A-L in August with Part One. Now it’s time for Part Two!

Real Estate terms can be confusing, especially when you’re knee-deep in a process you are unsure of. Use this glossary any time you stumble across a term you don’t recognize!

Multiple Listing Services (MLS) – This is a special database available only to real estate agents and brokers. Industry professionals have the opportunity to submit listings and information to the database, effectively allowing them to search and compare listings beyond the scope of their own practice.

Points – The concept of points can be somewhat tricky. At it’s most basic, it is a fee paid to the lender in an effort to reduce the interest rate on your mortgage. The fee is equal to 1 percent of the total amount of the loan.

PITI  – An acronym that stands for Principle, Interest, Taxes, and Insurance. Together, these items make up the primary costs associated with most mortgage payments.

Preapproved – Preapproval is only obtained after a lender conducts an in-depth review of the borrower’s financial background. It is only obtained after completing a thorough application, paying the required fees for processing, and submitting any documentation requested by the lender. If the application is approved, the buyer receives a “conditional commitment” from the lender for a particular loan amount. It does not guarantee that the loan will be issued.

Prequalified  – Prequalification is the process of having a lender or specialist determine how much a particular buyer can afford to borrow. It is not an in-depth review and it does not guarantee that a loan will be granted. It merely serves as a starting point for the buyer to realistically assess property.

Private Mortgage Insurance (PMI) – This is a type of insurance for the lender. It serves to protect them in the event that the encounter a loss on the money they have lent (if a borrower defaults on their loan, for example). Lenders require this insurance be purchased on any conventional loan without a 20 percent down payment.

Rate Lock – An agreement between the lender and the borrower that states a specific interest rate and a predetermined length of time. The specified interest rate will be guaranteed for the indicated length of time, meaning it can not increase or decrease as market rates do.

Title Insurance – An insurance policy designed to pay out if the the property title defects or is subject to other title complications after the closing has been completed. Depending on the situation, it may be paid to the lender or the buyer.

Under Contract – Under Contract is a term given to any for-sale property that has accepted an offer, but not yet closed or met contingency requirements.

Advertisements

THE FOUR BEST WAYS TO RAISE CAPITAL FOR SMALL BUSINESSES

Matthew Gorelik - 4 Best Ways to Raise Capital Blog Header.png

First published on MatthewGorelik.co

Starting a business from the ground up can be difficult, to say the least. Website costs, advertisement fees, legal fees and even rent are just a few of the myriad of potential starting costs involved with building a start-up from scratch. Regardless of what kind of enterprise you are looking to start, without a decent amount of capital to draw from, fundraising will be one of the first major steps in getting your company off the ground. Raising the necessary capital to get your small business up and running is essential. Luckily; however, with today’s technology, there are a few more options at the prospective business owner’s disposal than ever before. Additionally, the tried and true methods are always solid options, especially if one is not particularly experienced in using the Internet. With that, here are four good options to raise capital for a small business in the 21st Century.

Personal Savings

Perhaps among the most common and certainly most obvious, a reasonable amount of one’s own savings is always a great source of startup capital. Investors, while they are backing a company, they are also investing in the person who they feel they can trust and, frankly, whom they respect. Devoting one’s personal finances to his or her business venture is always something that will catch the eyes of potential investors because it clearly demonstrates one’s commitment.

Loan

Loans from banks or other investment firms are great sources of capital for your small business. Depending on your credit profile and the collateral you can offer, small-business loans can sometimes offer great deals and incentives. When attempting to earn an investment of a decent amount from any source, it is imperative that you either practice and perfect your sales pitch (selling yourself, your brand and your idea) or find someone who is good at this and can do it for you.

Crowdfunding

Most people have heard of Kickstarter, but there are many other reputable platforms for Crowdfunding that you should look into. Take a look at this list.

Cryptocurrency

Many entities, ranging from startup companies to small-scale inventors, are starting to issue new cryptocurrency tokens that are tied to a specific product or venture. Investors can simply buy a certain amount of these tokens and watch their value increase or decrease accordingly. This way, investors can see their return on investment immediately and in real-time.

WHY GIVING BACK AS A BUSINESS IS ESSENTIAL

Matthew Gorelik - Giving Back As A Business Blog Header

First published on MatthewGorelik.info

Corporate social responsibility (CSR) is more respected by customers, news media outlets, and stakeholders than ever before; in today’s world of widespread green-minded initiatives, electric cars, recycled goods, and global civic-mindedness, consumers regularly choose businesses that give back to the world and its people far more frequently than their selfish corporate counterparts.

For this logic-loaded reason and countless others, giving back as a business is essential to well-oiled performance. Check out these reasons that support civic-minded policies.

Young, talented workers are willing to take pay cuts to work for responsible companies

Recent research suggests that a whopping three-quarters – that’s 75 percent – of millennials would take pay cuts just to be employed by businesses with solid corporate social responsibility policies. While millennials regularly catch flak for being their forward-minded, globally-oriented selves, the global workforce isn’t getting any younger; as time marches onwards, millennials and constituents of the similarly-minded Generation Z continue to fill the figurative gas tank of corporations’ collective and individual payrolls.

Companies that require mandatory volunteer work from employees see immediate boosts to workers’ efforts

According to a 2010 poll conducted by PsychCentral, one of the Internet’s longest-running and most-trusted outlets of information related to mental health disorders and their treatments, United States citizens who volunteered their time and effort to good causes benefited in several ways:

  • Two-thirds of people polled reported that they felt as if their physical health had immediately improved following their participation in volunteer work.
  • Over 70 percent of respondents claimed that they were graced by reduced stress in their daily lives.
  • Nearly 90 percent of those volunteers shared that their overall happiness levels had risen both immediately after volunteering and for weeks after offering their help to the civic-minded causes they contributed to.

Peer-reviewed entries into the academic world’s most prominent psychological journals widely suggest a positive correlation between workplace productivity and employees’ average happiness levels.

Why not require just one day’s worth of volunteering out of employees? Calling off work for that day would arguably be a solid investment.

What goes around comes around

Giving back to non-profit organizations and local communities – even if no other benefits are garnered from such civic-minded corporate policies – is likely to generate positive karma. People, organizations, and governments on the receiving end of such assistance are more likely to do business with an entity that gives back.