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Tips Before Selecting a Financial Service for Private Equity Funding

When buying a house you may have seen a line in your mortgage referring to “Taxes and Insurance”. The mortgage company includes an amount each year to pay Real Estate Taxes and Property Insurance directly. This is to ensure the homeowner doesn’t – through negligence – endanger the loan.

Make sure the writer you are going with would like to ensure that any possible risks of default are covered. While there are many other forms of insurance to protect the collateralizing asset, the biggest risk is default on obligations. If your financing request is subject to a draw schedule, then most of your money will be sitting for a very long time doing nothing.

Also, make sure that the writer will, through its own internal and proprietary processes, at no risk to your financing, provide a Trade Platform that will utilize the strength of the financing to realize a profit to meet the obligations of the loan. The result, at the end of the loan period, all obligations have been met resulting in 100% equity. Trade Platforms are not available on all financing and will be determined during underwriting.

Select a writer that only provides collateralizing instruments for its own purposes, but welcomes applicants providing their own instruments for consideration. Ask that the writer will either go with a cash-backed Letter Of Credit or a Surety Bond. Also, that they issue and provide that instrument on your behalf.

It is custom that the writer will not claim cost from you if an approval is not given for any reason. During process whereby they seek evidence to determine the viability of your transaction, if for any reason a determination is made to decline your project a full refund of the escrow is to be returned to you.

Prior to final approvals and agreements from both parties on all conditions to loan stipulations on closing contracts, the writer should not impose and should not imposed any cost involved in procuring a loan to the client. The process is clearly designed as one with no upfront or due diligence cost process. The writer will only expect to get paid when they fund a transaction, and might be willing to assume the cost if they cannot, but don’t expect it because it can be quite a costly proposition on their behalf.

In the second installment to this multi-part article on Private Equity Funding I will dive deeper into what you should look for when selecting a financial service.

What’s the Financial Services Market Like?

This is a question that has been asked over and over again all around the world. Some people are asking this because of the sheer numbers of people that are in the financial services market and are involved in either a career or job that keeps a close eye on the current financial industry trend and try to predict where the market will go next as the entire world’s financial markets are in a free fall due to the economic mess that the entire world is currently in.

Some people are saying that there are too many people that are already working in this field and that far too many people all around the world that are either under-insured to be able to withstand a financial crisis such as losing their job or the death of a primary income provider or are totally uninsured because they either do not know how important financial planning really is or just do not have the money for the life insurance that will see to their family through if something happens to them. The other reason that people are complaining about the financial services market and how bad things are is because they have either lost money on investments, had financial problems because of poor financial planning, or simply gotten so disillusioned by the current status of the financial markets that they have given up hope altogether of understanding how the markets really work.

These people really do not know that there definitely is hope out there and that all is not lost. The key to keeping your sanity and keeping your clients in good financial standing in this topsy-turvy uncertain financial market is to know what the current financial industry trend really is at any given point in time and to be able to adequately provide the soundest financial planning that you are able to give to your clients so that they are prepared for any and all possible financial situations that are going to come about. As long as you; as a financial adviser, are able to guide your clients to make the correct financial decisions as far as insurance and investments are concerned then those clients are going to be in much better financial shape than a great deal of the people who are completely thrown out of sync by the current financial industry trend and economic situation.

This is what a very good financial adviser is capable of doing for his/her clients. Yes, there were a lot of people who made their living in the financial services industry and a good many of them have either left the business or have been laid off due to the current economic situation. Those financial advisers who are good at keeping up with the current financial industry trend and knowing what they are doing are the ones who are still going strong and able to guide their clients around any financial trouble that they see and out of those they are in currently.