Consumer Credit Versus Capital Credit: Exposing the Systematic Roots of Income Inequality

There is a BIG difference between CONSUMER CREDIT and CAPITAL CREDIT. And understanding this difference will help readers understand why American income has been so unevenly distributed, especially over the past four decades, and why the wealth gap between the few and the many threatens to undermine American democracy.

Consumer credit, for one thing, is easy to obtain. Fill out some forms online, and unless you’re having some real financial trouble, you’ll receive your own personalized plastic credit card along with all accompanying documentation (lots of fine print) in a few days.

With consumer credit in hand, you can buy anything from gas at the pump to beer at the stadium to a college education (do student loans sound familiar to anyone?). A consumer credit card company wants you to buy all kinds of things on credit (often at ridiculously high interest rates, formerly called usury), to pay later, while accumulating a mountain of debt that will allow you to lending institution make it work for you. the rest of your days to pay your debt to them.

In contrast – Equity credit …

On the other hand, equity credits you to buy wealth-producing capital assets (i.e. land, machinery, buildings, corporate stocks), to repay the loan at a reasonable rate until you own the asset and are reaping all the benefits. financial resources of owning wealth-producing capital. If done correctly, the loan is repaid out of FUTURE EARNINGS (that is, dividends) rather than out of the borrower’s pocket.

However, equity credit is much more difficult to obtain (try to buy a home sometime) than consumer credit. Generally speaking, borrowers must be able to show that they do not need the money (meaning they have ample collateral to back the loan) before the lender will agree to something. The result is that most wealth-producing capital assets that pay lucrative dividends to their owners are accessible to ONLY a small percentage of people – the 1% to 5% who can show they don’t need the money.

Almost everyone else is effectively left out when it comes to accessing capital credit and owning capital assets that create wealth. This is the basic reason for the wealth gap that has transformed American democracy into a 21st century American oligarchy.

Kelso and Adler enter.

Enter a gentleman named Louis O Kelso, who in 1958 published a book titled “The Capitalist Manifesto,” in which he (and co-author Mortimer Adler) suggested that every American citizen should have access to equity credit with which to buy wealth that produce capital assets at reasonable interest rates and in the process actively participate in (rather than being left out of) America’s highly productive free market economy.

Such a strategy, according to Kelso and Adler, would democratize a free market economy. Such a strategy would maintain the essence of free market private ownership while avoiding the monopolistic tendencies that have historically undermined political democracy in laissez faire capitalist economies. In other words, it would save the free market from its own historical tendencies toward self-destruction.

By democratizing the free market (while creating a lot of demand through a second “investment income” for each citizen *) and systematically narrowing the malignant wealth gap, Kelso and Adler predicted even greater economic expansion than that which followed. Abraham. The Lincoln Homestead Act of 1863, which gave every American citizen 160 acres of land (a type of wealth-producing capital asset), if they were willing to care for it. But where the land is finite, the business and corporate opportunities (as well as the economic possibilities) are endless.

The oligarchs successfully sidelined Kelso / Adler

However, the oligarchs have managed to keep the revolutionary ideas of Kelso and Adler at bay and, to this day, the majority of the public thinks there are ONLY 2 options when it comes to economics. There is the historically right-wing, free-market, laissez-faire capitalist approach of the Republicans. And there is the approach of the Democrats that historically leans to the left and favors the unions.

The right drives tough individualism and personal responsibility, while the left drives enlightened self-interest that recognizes that we are all in this together. According to conventional wisdom, the political pendulum swings between these two poles and in the process the Kelso / Adler prescription has been effectively ignored by the “free press.”

Enter the Capital Homesteading Act

But that doesn’t mean that the “property economy” is dead and gone. In contrast, over the past half century, thousands of employee-owned businesses (ESOPS) and worker-owned cooperatives have sprung up across the country. When done for the right reasons (not to bail out a bankrupt airline), these examples democratize the conventionally despotic corporate plantation.

Professor Rick Wolfe, Dr. Guy Alperovitz, and Dr. Ted Howard are unabashed and vocal advocates of worker-owned cooperatives based on the Spanish Mandragon model. Outbreaks of this can be found in places like Cleveland, Ohio (Evergreen Co-op) and Jackson Mississippi (championed by the now-late Mayor Chokwe Lamumba). **

And a resistant gang of renegades known as the Center for Economic and Social Justice, led by Dr. Norm Kurland, has developed and introduced the Capital Homestead Act, which exchanges land for capital assets and, in the process, provides everyone US Citizens Access to Equity Credit (by Adler / Kelso). The Capital Homestead Act is based on PRIVATE PROPERTY that will be applauded by those on the right. However, it also explains the fact that WE ARE ALL TOGETHER, which will be applauded by those on the left. In other words, the Capital Homestead Act takes the best of both parties and fuses them into a 21st century idea whose time has come.

Equity credit: an idea whose time has come

In any case, the time has come for an alternative solution because the arguments of the mainstream right and those of the mainstream left have fallen short of empowering individual citizens, recognizing that we really are all in this together, and when it is about democratizing a free market economy. The property economy is the key to the future for anyone who really wants a political democracy.

* The second income is generated from distributed dividends NOT from accepting a second job.

** Rutgers University also offers its annual Louis O Kelso Fellowship, which places academics from across the country with some backgrounds in this unique line of thought.

In reality, people around the world are interested in the concept of property economics as exemplified by the Global Justice Movement and through presentations by internationally renowned scholars such as Professor Stefano Zamagni.

How to handle a courtesy job interview

During the job search, applicants should be aware of the courtesy interview. A courtesy job interview is one in which the company recruiter does not intend to hire the candidate, but conducts the interview anyway. The courtesy interview is known to human resources departments and is a practice performed by all levels of the hiring process.

There are also ceremonial interviews. The reviewer has already decided to hire the candidate and the meeting is perfunctory. The courtesy interview, on the other hand, is a pretense of interest. There are some professionals who believe that it shows a lack of respect towards the job applicant. At the very least, it leans to an incredible disservice to the applicant and a waste of time for both parties. If done carelessly, it can leave the candidate with a bad taste in their mouth. So why recruiters, headhunters, former colleagues, Fortune 500 companies, etc. conduct courtesy interviews?

The answer is found in two types of courtesy interviews:

• After about ten minutes, it is clear to the interviewer that you are not the right candidate for the company. But he or she wants to be polite and will continue the interview for another twenty to thirty minutes before thanking you for your visit;

• The interviewer only sees you out of obligation or human resources policy. Regardless of whether the interviewer is interested in you or not, they will proceed anyway out of courtesy and / or respect.

So how do you know that you are in a courtesy interview? Here are some examples:

• The first sentence could be, “I just wanted to see where you are in your career pursuit.” This is a fishing expedition. The interviewer is curious about what you have done since your last job, what companies you have spoken with so far, or to pump you for information that is not relevant to your job search;

• “We had finished the final interviews when we received your resume. After looking at your impressive cover letter and resume, we thought we should speak with you before making a final decision.” This means that a senior person in the company asked the candidate to run. That information was in the cover letter. For the interviewer, he only does it out of respect or fear of the company executive.

• “As you know, we are an equal employment opportunity company. We take it seriously and take it into account when interviewing candidates.” This is done to avoid discrimination lawsuits. Some companies that accept government funding are required to conduct at least 3 interviews with applicants from various backgrounds. On a positive note, it could also mean that the company is honest about hiring a diversity of applicants, including you.

Ten to fifteen minutes should be enough to know whether or not you are in a serious interview or talking to a person who is simply going through the beats. It is clear that he has no desire to hire you. So what should you do once you find out that you are in a courtesy interview?

• Ignore irrelevant questions from the interviewer and do the interview of a lifetime. Dazzle and impress. Why? You may decide to refer you to another company that would love to hire you. Or, the recruiter may think that you are not suitable for the current job, but are perfect for another vacant position in the company;

• Tactfully end the interview. Say you don’t think you are the right person for the job and you don’t want to waste your time;

• No matter how you feel, don’t be rude or show how angry you feel. You can see this person again;

• Always thank the interviewer for speaking with you. Depending on how you and the interviewer clicked, ask for a referral so you don’t feel like you were a waste.

• Make an assessment of the interview. Take note of the positives. When did your conversation seem to enthuse the recruiter? What topics prompted you to ask follow-up questions?

It is always difficult to go through interview after interview, not knowing whether or not you are wasting your time and energy. Don’t take it personally. The job search market is extremely competitive. Look at the courtesy interview as one of several that an unemployed person will experience while searching for a job.

Job seekers must seek employment as a daily duty. You must be diligent, consistent, and determined to find a job that suits your skills, experience, education, and temperament. Your task is to convince a company that you are the right person for the job.

A positive attitude will go a long way toward leaving a negative meeting in the past. Don’t let a bad interview experience kill your spirit. Expect; stick to your daily job search routine and work on getting an interview with the next company you like.

Automated real estate software: the new trend in investments

The value of real estate has appreciated in recent years. It also shows great potential for growth. Therefore, now might be the best time to consider a property investment. However, if you’ve talked to someone who’s already down on the knees in real estate investing, you’ll find that many things are easier said than done.

It takes skill and experience to search the market for high-value properties.

Then comes the search for good buyers.

Finally, there is an enormous amount of paperwork to handle.

This is where real estate investment software can help. They automate the entire real estate investment process. If you want to learn more about these apps, here are some of the common features they offer.

Leading generation –

With the click of a single button, you can find a comprehensive list of buyers and sellers spread across the country. The information obtained includes the names and email addresses of the buyers, the property owners, the type of property (bank owned, repossessed, low and high value, absent owner, etc.) and the amount of cash paid .

Website creation –

Every business needs a website, especially if it doesn’t have a physical location from which to operate. Not all of us know the technical aspects of writing HTML code and designing a website. Real estate software can help you create specific, user-friendly websites that you can use to showcase your business.

Direct Mail Generator –

Marketing is the lifeblood of a real estate business. The more you network, the more leads you can generate. The direct mail generator feature helps you set up a highly productive and efficient mail delivery system. You can send emails, newsletters, posters, and brochures.

There are a variety of pre-made email templates that you can use to send messages to your prospects. Autoresponders make sure that you can stay in touch with sellers and buyers even when you are not physically present to answer their inquiries.

This feature is a prominent feature of most real estate programs, as time and money savings are significant.

Investment tips –

This is a section that most beginners can benefit from. Most applications include a resource library with information on the basics of the trade. An open community of members can also give you the opportunity to interact and build your resource with real-time knowledge on how to make, build, and close a deal.

Diverse user base –

Today’s automated real estate investment software applications cater to a diverse group of investors. It includes those who buy, repair and exchange properties. If you are a homeowner, you can increase the convenience of managing your properties, including finding tenants and repairing and renovating properties between later deals. There are also features that new construction builders and rehabilitators can use.

Contracts and procedures –

Real estate investing also means a lot of paperwork. Most applications offer tools to generate contracts. Features such as the autocomplete feature allow you to enter personal data into letters, contracts, and other property-related documents. You can sign them online and then email or fax them for free.

There is one thing: you must be realistic. Real estate software are tools that you can use to optimize your business. You should have a real estate business to start and some basic investment knowledge.

Alcatraz: the story of an island

Alcatraz, the small island in the bay of San Francisco, received its name in 1775 from the Spanish explorer Juan Manuel de Ayala. He christened the land La Isla de los Alcatraces, which translates to Isla de los Pelicanos. It was of no interest, as it was uninhabited, arid terrain with minimal vegetation and treacherous icy currents.

Having little to offer, Alcatraz was left alone for another 72 years. In 1847, the United States Army claimed the island for use as a military fortification. Within a year, US Army engineers were hard at work building a military fortress and the first functioning lighthouse on the Pacific coast.

Once completed, the Alcatraz fortress became a symbol of military strength. Its features included long-range iron cannons and four 36,000-pound 15-inch Rodman guns, which were capable of sinking hostile ships up to three miles away. While Alcatraz’s image lived up to its reputation, the only bullet ever fired came from a 400-pound cannon. This was aimed at an unidentified ship, which failed. In 20 years, rapid weaponry modernization rendered the Army’s defenses on Alcatraz obsolete. Soon, the Army began to rethink the uses of its island.

The natural isolation made Alcatraz the ideal location for an Army penitentiary. In 1861, the island began its 102-year history of housing prisoners, first as an Army penitentiary and later as a federal prison.

Alcatraz was the Army’s debut as a long-term prison. The prisoners of the Civil War were the first to arrive. The population remained small until 1898, when the Spanish-American War brought the prisoner count from 26 to more than 450. In 1906, a catastrophic earthquake in San Francisco forced the city to evacuate hundreds of prisoners to Alcatraz. The large influx of prisoners forced the expansion of the building. By 1912, a large three-story cell house had been built on the central ridge of the island. The structure had almost reached its maximum capacity in the late 1920s.

Rising operating costs led the military to close Alcatraz in 1934. Property on the island was turned over to the Department of Justice.

During the late 1920s and early 1930s, the Great Depression brought an excessive increase in crime. The combination of prohibition, mass unemployment, and desperate need fostered a new era of gangsters and organized crime. This new generation of criminals had taken over the big cities. Ordinary prisons weren’t doing a good job keeping them behind bars. The federal government needed a “leak-proof” prison, where they could lock up the worst of these bad guys. On Alcatraz, the government found exactly that.

In April 1934, contractors began work to convert the military prison into a maximum security federal prison. This new and improved Alcatraz was designed to hold no more than 300 prisoners. Only those convicted of federal crimes were sent to Alcatraz. These crimes included bank robbery, kidnapping, income tax evasion, evasion of public services and murders related to these crimes. Alcatraz Federal Prison was designed strictly as a non-rehabilitation pen.

Few prisoners were sent directly to Alcatraz when they were sentenced in court. The prisoners found their way to the island through behavioral problems and escape attempts. Getting transferred out of Alcatraz was even more difficult. Parole was not an option. The inmates first had to earn their way to a different prison through their good behavior.

James A. Johnston, the first of Alcatraz’s four guardians, set the rules. He insisted on one guard for every three prisoners. The average ratio in other prisons at that time was one guard for every 10-13 inmates. The prisoners had no commissary. Newspapers were not allowed; his reading material was censored and extremely limited. They had no television and radio was banned until the mid-1950s. The inmates received no counseling and were not offered classes or groups to join. Recreation was severely limited. Boredom was an ongoing and extreme problem for both inmates and prison guards.

Inmates were allowed one visit per month, which first had to be approved by the director. These visits lasted about an hour and a half and were conducted through glass with the use of a telephone.

The most controversial of Johnston’s rules was the “Silent System.” Any type of conversation between prisoners was prohibited. The prisoners were deprived of even the most basic human contact. Several inmates were reported to have gone insane due to this policy. Over the years, the silent system became too difficult to apply. Four long years later, politics was abandoned and never reestablished.

Alcatraz Federal Prison consisted of 336 cells in three wards. The main corridor, nicknamed Broadway, had 168 cells and was three stories high. Broadway offered little privacy to inmates, as this area received the most foot traffic. However, Ward D was by far the worst area of ​​the prison.

Called the special treatment unit, this area is also known as isolation, segregation, and loneliness. Five of the cells on the lower level earned the nickname “The Hole.” Each cell contained a sink, a toilet, and a low-voltage light bulb hung from the ceiling. The solid steel door had a small insert that opened to push out the prisoner’s food. Inmates were given thin mattresses to sleep on, but they were removed during the day. No form of entertainment was provided or allowed. The prisoner was isolated from all human contact, suffering extreme boredom and isolation.

The striptease cell was reserved for particularly difficult inmates. This was a dark, steel-lined cell with no bed, sink, or toilet. The door was made of solid steel that remained closed at all times. The prisoners were naked and placed inside without blankets or light. The “toilet” was a hole in the floor. A thin mattress was provided for sleeping hours and then removed. This cell was a cold, disgusting, black void that was feared by even the toughest criminals.

The time in “the hole” was not supposed to exceed 19 days and the time in the strip cell was limited to two days. However, this standard was not always met. Reports were made of prisoners driven mad by the extreme sensory deprivation of the hole and the nudity cell.

In its 29 years as a federal prison, Alcatraz held 1,576 inmates. During that time, 14 escape attempts were made for a total of 36 inmates. Of them, 21 were returned alive, two were returned and executed, seven were shot dead and one drowned and his body was dragged ashore.

Five prisoners, from two separate escape attempts, made it off the island. Ralph Roe and Theodore Cole disappeared in 1937 and Frank Morris, Clarence, and John Anglin disappeared in 1962. Despite persecution across the country, none of these men were found and no bodies were recovered. There is much controversy to this day as to whether any or all of these men came out of the water alive.

Alcatraz’s structure began to deteriorate. In the 1950s, salty air had corroded metal and concrete. Around 1961, the power plant began to fail, causing electrical blackouts. The plumbing pipes were cracked and a major structural repair was required. During 1960-1961, the Bureau of Prisons spent $ 300,000 on renovations. Approximately $ 4 million more was needed.

Repairs weren’t the only factor in Alcatraz’s high maintenance costs. Due to their isolation, supplies, including water, had to be transported by truck. This meant that even the daily expenses were much higher. The cost per prisoner was almost three times higher at Alcatraz than in other American prisons.

By the time of the last escape attempt in 1962, the decision had already been made to close Alcatraz. Construction had begun on the United States Penitentiary in Marion, Illinois, the replacement for Alcatraz. On March 21, 1963, the last 27 prisoners were transferred from the island’s prison. Alcatraz officially closed in June 1963.

Apart from a caretaker and his wife, Alcatraz remained a desolate place as various parties lobbied the government with development ideas. Nothing came of these ideas. Then, in 1969, a large group of American Indians landed on Alcatraz. A relatively unknown treaty with the United States government in the 19th century allowed Native Americans to reclaim abandoned federal property. Using this treaty, the group claimed Alcatraz as “Indian land”.

The Indians had an elaborate plan to transform Alcatraz, which included a Native American educational cultural center. Public support grew rapidly, with high-profile advocates from show business as well as Hell’s Angels. This was both a blessing and a curse. The volume of visitors to the small island quickly became overwhelming. Sadly, Alcatraz soon became a haven for the homeless and abandoned population.

In a short time, the indigenous people faced the same problems that hampered the administration of the prison; the total absence of natural resources and the enormous expenses. A series of difficulties culminated in a fire on June 1, 1970 that burned what had been the Guardian’s house, the lighthouse keeper’s residence, and the officers’ club. The Indian community fell apart. About a year later, on June 11, 1971, federal marshals removed the remaining occupants of Alcatraz.

In 1972, Congress created the Golden Gate National Recreation Area, which included Alcatraz. The island was opened to the public in the fall of 1973. Today, Alcatraz is one of the most popular National Historic Parks, with more than a million visitors arriving there each year.

What Beginners Should Know About Investment Property Financing

Basic concepts for financing an investment property

You have big dreams of owning a real estate property and retiring young. You just don’t have the funds to go out and buy the properties for cash (most of us don’t either). This gets you down the path of financing with your local bank. Perhaps you already own your own home and have gone through the mortgage approval and signing process. This should be easy, right? Investment property loans are not like traditional home loans.

Lenders are stricter with underwriting an investment property than they are with a personal home mortgage. You may be wondering, but why? It’s simple when you own an investment property and personal residence and then lose your job or things start to go wrong financially, you’ll pay off your personal mortgage before anything else in the worst case scenario. You don’t want to default on your mortgage, because that’s where you live!

Interest rate

The interest rate will be higher than your home mortgage, it just is. Add 1-3 percentage points more than the owner-occupied loan rate. That means if a lender charges 4.00% interest on homeowner loans, they will likely pay 5-7% interest on investment loans. This is how it works, folks. Loans are riskier, so banks want more for them.

Credit score

As with any type of loan, your credit is important. It shows the bank a history of your past credit experiences and basically tells why you should get a loan or why you shouldn’t get a loan. Working to make sure your credit is top-notch is something you should do well before you get into the real estate game.

With investment properties, your credit score doesn’t have as big of an impact as it does with home mortgages. You will still have options if your credit is not perfect. If your score is lower than 740, you should expect to pay more in lower interest rate, lender fees, and LTV. This doesn’t mean you shouldn’t invest with a credit score lower than 740, it just tells you what to expect.

Lower LTV

20% learn, love it, live it. That is the number the bank will want from you as a down payment for the purchase of your investment property. Of course, there are exceptions to the 20% discount, however that is what most banks require.

20% is a lot of money, right? Yes, I know, but the good news is that you won’t have to pay for mortgage insurance. Nobody likes mortgage insurance. The bad news is, that’s the only good news. Also, the 20% discount is the best case, if you have very bad credit, expect the bank to wait longer or not even look at your deal at all. As a final note, plan to need payments of at least three months as a liquid cash reserve. The cash reserve is important, yes, you may have finally saved that 20%, but if you don’t have more than 20% in working capital by the time the oven shuts down in the first month, the bank will again question the possibility of grant you a loan. .

Hacking houses to start

The idea behind house hacking is to simply decrease or minimize your own expenses and use the margin (money you are saving) to invest in acquiring rental properties. Living in a nice house with an indoor pool and a movie theater is great and all, but that house is not generating you monthly cash flow, it is costing you monthly cash flow.

The basic idea behind this “house hacking” mentality is to simply rent part of your home to someone else, or coexist with someone else as a roommate in your own home. It can also mean selling your primary residence now and buying a multi-family property and living in one of the units while renting the rest. Basically, when all is said and done, you are renting what you already live in, to lower your monthly expenses and save capital for your dreams of real estate glory.

If you haven’t bought your first home yet, or if you want to sell your home now to get into real estate, a multi-unit property might be the right option for you. When buying a multi-family home, you can live in one of the units and have your tenants pay all your expenses. This is generally more attractive to most people than having someone live in your home.

For example, if you buy a unit of 4, live in one unit, and rent each of the other units for $ 600 a month, that would mean you earn $ 1800 a month in rents. If your loan, escrow (taxes + insurance), utilities, and other expenses amount to just $ 1,600, you could get paid $ 200 a month just to live in the house. Even better when it’s time to move into your future home, you can rent that fourth unit for even more income. Sounds like a great idea, right?

Key takeaway:

Investment properties have higher interest rates

Lenders are a bit more lenient on credit scores

You will need 20% for the initial payment (there are exceptions)

Try house hacking to get started in real estate

America’s favorite,

The little investor

Real Estate Agent Lesson Of Passion

Real Estate Agent Lesson

She following Real Estate Agent Lesson of Passion is inspired by a real case study. It concerns the marriage of Karen and Paul. They decided to get married because they had a strong emotional connection towards each other and also because they loved the children they were going to have. They had their first meeting at an area restaurant where Karen worked part-time.

They had a lovely, quiet, peaceful evening with just the two of them, when the issue came up regarding the possibility of getting a divorce if the marriage did not work out. Karen and Paul discussed this for hours, falling apart each time they argued. Paul and Karen both like to have fights, like each other, but Karen always was the one who was willing to compromise. Paul on the other hand, loved to fight.

Immobilienmakler München

So it was like a dream come true for both of them on that day, and when the day was over they drove off in Paul’s truck. Karen and Paul had been very serious about getting a divorce, but they knew that this could only be achieved if they were willing to compromise. They knew that the real estate agent that they had fallen in love with would have to go. This was a painful realization for Karen and Paul, but they decided that if they were going to make a marriage, then they would have to do everything, right – or else.

Real Estate Agent Lesson Of Passion

Karen had mentioned to her husband that she felt that it might be time to end their relationship. Paul was hurt by his wife’s words, but he did not think that it was the right thing to do. He loved his wife, and trusted her. He did not want his wife to hurt him again like she had before; especially after he had told her that he loved her and how he felt her pain when she’d hurt him, and how he had never hurt her back.

But there was nothing that his wife could do to change his mind. And so in August of last year, they announced their marriage to the world. Karen was ecstatic, while Paul was devastated. This was a real estate agent’s lesson of passion; if you do something, even if it is just to split up with your lover, you will regret it.

The same principle applies to getting a divorce. You might not like your spouse any more than you like your lover, and it’s true that you need each other in your lives. But if you are an emotional wreck, you are not going to fare well in the world, unless you take a real estate agent’s lesson of passion.

Business Bay: the ultimate destination in Dubai

Dubai is a beautiful place and attracts numerous tourists from all over the world. Revered for the Burj Khalifa, the tallest building in the world, the Dubai Mall, one of the largest malls in the world, and many more exciting tourist spots, Dubai is certainly a must-see destination.

In addition to being a vacationers delight, the city is also a great attraction for entrepreneurs and real estate investors. It is one of the main commercial centers of the Middle East and is also a preferred place for investment. People are not only buying commercial and residential properties for their own use, they are also investing for future benefits.

Business Bay is among the most sought after developments in the city. Comprised of more than 240 buildings, this area is a favorite with investors. It offers a range of luxurious commercial and residential properties that boast contemporary amenities. It is one of the fastest developing areas of the city and newer projects such as Dubai Internet City and Dubai Media City have not been able to stop the popularity of Business Bay.

The projects:

Business Bay offers an unlimited option to its potential investors and residents. It has some of the best and most modern properties. The Atria, Fifty one @ Business Bay, AL Boraq Tower, Aspect Tower, Bay Square, Bay Gate, B2B Tower, Boris Becker Business Tower, Empire Heights, Fortune Bay, Lake Central and Mayfair Tower are just a few to name among the tempting projects. of the area.

Mod cons:

Business Bay offers the most stunning properties that provide first-rate facilities. From huge shopping malls to restaurants serving delicious cuisine, there is much reserved for residents’ leisure. The area is well connected to other parts of the city, making it an excellent option for investors. One can easily use the underground rail or take a taxi here. The property also offers sufficient parking spaces for private cars. The overall architecture of the development is attractive and the well-kept gardens are the icing on the cake.

The residential units offer a variety of services, such as a swimming pool, gym, children’s play area, health club and many other indoor and outdoor leisure facilities. The business units also provide a variety of modern amenities such as sliding access, high speed internet, business lounge, reception desk, 24 hour security and CCTV cameras, access control system, fire alarm system and much more.

Whether for commercial or residential purposes, Business Bay in Dubai is without a doubt an amazing option.

Business Partners and Marriage Partners Will the Marriage Survive – Part II

In the last article, we concluded by saying that keeping your business and personal relationships separate is very important to the survival of both your business and your marriage. In this article we will talk about how to achieve this goal.

One of the most important ways to accomplish this is to set different office hours, and when they’re done, don’t talk business, focus on your relationship. It’s difficult, but make a concentrated effort at it. Limit your business discussions to business hours or set aside a specific time to discuss the business.

For example, take the last half hour of the day and analyze the business day; Any suggestions you have, what was accomplished, what needs to be done tomorrow, during the week, how the monthly goals you set at the beginning of the month are progressing. Remember to express any criticism or suggestion in a positive way. Think about how you felt in the work situation and how the supervisors treated you when they made suggestions. The negatives only cause resentment. They do it in the business field, and even more so, when it comes to a spouse with whom they must live 24 hours a day. Be sure to set aside time for each other – go for a walk, dinner, or just a drive with your spouse. Don’t talk business.

You must have outside activities that are not related to the business. If not, join a group that interests you. It will allow you to meet other people who are not related to your business. Running a business from home can be very lonely; It is imperative to stay away from home and have outside interests.

In addition to the problems inherent in couples running a business, starting a home business presents its own set of problems and questions. Before you begin, be sure to ask yourself the following:

1. Are you self-motivated? Organized? Able to prioritize your work? You will no longer have a supervisor or boss telling you what to do. You will be the one who makes the decisions. You will have to motivate yourself. One way to do this is to use a to-do list and stick to it. Also, set a final business hours and stick to them.

2. Can you handle the isolation? You will no longer meet people in the hallways, congregate around the cafeteria, or take a break to talk to your coworkers. To combat loneliness and isolation, be sure to join groups that meet outside the home or schedule lunches with friends and associates.

3. Write a business plan. Make sure the business is something that interests you. You may want to start part-time and grow from there. Research the business carefully, make sure there is a market and that the competition is not overwhelming.

4. Make sure you have set aside at least six months for living expenses. This will give you time to work on the marketing strategy outlined in your business plan and avoid bad marketing practices. Also, if changes need to be made, you can do so without monetary concerns becoming a problem.

5. Make sure your office space is located in a separate room or area of ​​your home that offers the least amount of distraction. A separate office is best, especially if you are meeting with clients. Remember to always present a professional appearance.

6. When will you do your usual housework? Make a schedule of when you will take care of them. Some people find that it is best to do homework before the start of the work day. At the end of the day, close your office door and then take care of the remaining household items that need to be handled. Time management will be a very important factor in running a home business.

7. For husband and wife teams, it is imperative to have some form of disability insurance for each other. Remember, even if your partner is your husband or wife, he or she will still be your business partner. An accident or illness of one of you can seriously affect the operation of the business.

A business is only as good as you and your partner make it. It takes a lot of dedication, time, and energy to run a business, whether it’s at home or not. It can be a very rewarding experience. Think carefully and ask yourself many self-assessment questions before you begin.

Copyright 2000, DeFiore Enterprises

The duty of confidentiality in the real estate sector

In any Listing Agreement there is a time when the relationship with the agency ends.

A Listing Contract, as it is widely known, is none other than a contract between the legitimate owner of a participation in the land (the ‘Principal’) and a duly authorized real estate company (the ‘Agent’), by which the signing stipulates and agrees to find a Buyer within a specified period of time who is ready, willing and able to purchase the interest in the land that is the subject of the contract while acting within the scope of the authority that the Principal confers on the Agent, and where in addition, the holder stipulates and agrees to pay a commission in the event that the licensee succeeds in finding said Buyer.

As in all contracts, an element that is commonly known in the law as an “implicit agreement of good faith and fair dealing” is implicit in a Listing Agreement. This covenant is a general assumption of law that the parties to the contract, in this case the holder and the licensed real estate company, will treat each other fairly and that they will not cause each other harm by breaking their words. or otherwise breach their respective and mutual contractual obligations, express and implied. Failure to comply with this implicit agreement gives rise to liability both in contractual law and, depending on the circumstances, also in extra-contractual liability.

Due to the particular nature of a Listing Agreement, the Courts have long ruled that during the life of the agency relationship a second element is implicit in the contract arising from the many duties and responsibilities of the Agent towards the Principal: a duty of confidentiality, which obliges an Agent who acts exclusively for a Seller or a Buyer, or a Dual Agent who acts for both parties under the provisions of a Limited Dual Agency Agreement, to maintain the confidentiality of certain information provided by the Principal. As with the implicit agreement of good faith and fair treatment, the breach of this duty of confidentiality gives rise to liability both in contractual law and, depending on the circumstances, also in tort.

According to a recent decision by the Real Estate Council of British Columbia (, the regulatory body empowered with the mandate to protect the public interest in matters related to the real estate sector, a question. as to whether the duty of confidentiality extends beyond the expiration or termination of the Listing Agreement.

In a recent case, the Real Estate Council reprimanded two licensees and a real estate company for violating an ongoing duty of confidentiality, which the Real Estate Council determined was owed to the seller of a property. In this case, the property in question was put up for sale for more than two years. During the term of the Listing Contract, the price of the property was reduced on two occasions. However, the property ultimately did not sell and the listing expired.

Following the expiration of the listing, the seller entered into three separate “fee agreements” with the real estate company. On all three occasions, the Seller declined to represent the agency and the company was identified as ‘Buyer’s Agent’ in these fee agreements. One of the parties initiated a lawsuit against the Seller, which was related to the property in question.

The attorney acting on behalf of the plaintiff approached the real estate firm and requested that they provide affidavits containing information about the property listing. This attorney made it very clear that if the firm did not voluntarily provide the affidavits, it would subpoena the firm and licensees as witnesses to testify before the judge, or obtain a court order in accordance with the law. Court rules forcing the company to present such evidence. The real estate firm, believing there was no other option in the matter, promptly complied by providing the requested Affidavits.

As a direct and immediate result, the Seller filed a complaint with the Real Estate Council arguing that the information contained in the Affidavits was ‘confidential’ and that the firm had breached a duty of confidentiality due to the Seller. As it turned out, the affidavits were never used in court proceedings.

The real estate broker, for its part, took the position that any duty of confidentiality derived from the agency relationship ended with the expiration of the Listing Contract. The firm further argued that even if there were a duty to maintain confidentiality, such duty would not exclude or otherwise limit the evidence that the real estate broker would be required to deliver under a subpoena or in a proceeding under the Court rules. And finally, the realtor pointed out that there is no realtor-client privilege and that, in the current circumstances, the seller could not have prevented the firm from testifying in the lawsuit.

The Real Estate Council did not accept the line of defense and held that there is an ongoing duty of confidentiality, which extends after the expiration of the Listing Agreement. The Council ruled that by providing the affidavits, both the broker and the two licensees had breached this duty.

The attorney-client privilege is a legal concept that protects communications between a client and the attorney and keeps those communications confidential. There are limitations to the attorney-client privilege, such as the fact that the privilege protects confidential communication but not the underlying information. For example, if a customer has previously disclosed confidential information to a third party who is not an attorney, and then gives the same information to an attorney, the attorney-client privilege will still protect the communication to the attorney, but will not protect the information provided to the third party.

Because of this, an analogy can be drawn in the case of a real estate agent-client privilege during the existence of a Listing Agreement, whereby confidential information is disclosed to a third party, such as a Real Estate Board for publication. under the terms of Multiple Listings. Service agreement, but not before such information is disclosed to the real estate agency. In this case, the privilege would theoretically protect the confidential communication as well as the underlying information.

And as to whether or not the duty of confidentiality extends beyond the termination of a Listing Agreement remains a subject of open debate, again in the case of an attorney-client privilege there is broad legal authority to support the position. In fact, they extend indefinitely, so that it could be said that an analogy can also be inferred regarding the duration of the duty of confidentiality that the Agent owes to the Seller, insofar as said duty is extend indefinitely.

This, in a synopsis, appears to be the position taken by the Real Estate Council of British Columbia on this matter.

Clearly, whether the duty of confidentiality arising from a listing agreement survives termination of the contract is problematic for the real estate profession in terms of practical applications. If, for example, a listing with brokerage A expires and the seller re-quotes with brokerage B, if there is a continuing duty of confidentiality on the part of brokerage A, in the absence of express consent from the seller, a broker of Real estate of Broker A could not act as Buyer’s Agent for the purchase of Seller’s property, if it were re-listed by Broker B. All of which, therefore, would go against all the rules of professional cooperation. between real estate firms and their representatives. In fact, this process could potentially destabilize the entire foundation of the Multiple Listing Service system.

In the absence of specific guidelines, until this whole matter is clarified, perhaps the best course of action for real estate firms and licensees when asked by an attorney to provide information that is confidential, is to respond that the brokerage will seek to obtain consent. necessary. of the client and, if that consent is not obtained, the lawyer will have to take the necessary legal measures to force the disclosure of such information.

How to calculate the intrinsic value of stocks like Warren Buffett

One of the most sought after calculations in all investments is Warren Buffett’s intrinsic value formula. Although it may seem elusive to most, for anyone who has studied Buffett’s Columbia business professor Benjamin Graham, the calculation becomes more obvious. Remember that the intrinsic value formula that Buffett uses is an adornment of Graham’s ideas and fundamentals.

One of the most amazing things about Benjamin Graham is that he actually felt that bonds were safer and more investment likely than stocks. Buffett would totally disagree with that today due to high inflation rates (a completely different topic), but it is important to understand this in order to understand Buffett’s method of valuing stocks (stocks).

When we look at Buffett’s definition of intrinsic value, we know that he is quoted as saying that intrinsic value is simply the discounted value of a company’s future cash flows. So what the heck does that mean?

Well, before we can understand that definition, we must first understand how a bond is valued. When a bond is issued, it is placed on the market at a face value (or face value). In most cases, this value per value is $ 1,000. Once that bond is on the market, the issuer pays a semi-annual coupon (in most cases) to the bondholder. These coupon payments are based on a rate that was established when the bond was initially issued. For example, if the coupon rate were 5%, a bondholder would receive two coupon payments of $ 25 per year, for a total of $ 50 per year. These coupon payments will continue to be paid until the bond expires. Some bonds mature in one year while others mature in 30 years. Regardless of the term, once the bond matures, the face value is repaid to the bondholder. If you value this security, the value is based entirely on those key factors. For example, what is the coupon rate, how long will I receive those coupons, and how much of the face value will I receive when the bond matures.

Now, you might be wondering why I described all that information about bonds when I wrote an article on calculating the intrinsic value of Warren Buffett. Well the answer is quite simple. Buffet values ​​stocks the same way he values ​​bonds!

You see, if you were to calculate the market value of a bond, simply plug in the entries for the terms listed above into the market value of a bond calculator and do the numbers. When it comes to stocks, it is no different. Think about it. When Buffett says that he discounts the future value of cash flows, what he is actually doing is adding up the dividends he expects to receive (like coupons on a bond), and estimating the future book value of the company (like than the par value of a bond). By estimating these future cash flows from the key terms mentioned in the previous sentence, you can discount that money to present value using a respectable rate of return.

Now this is the part that often confuses people: discounting future cash flows. To understand this step, you must understand the time value of money. We know that the money paid in the future has a different value than the money in our hands today. As a result, a discount (like a bonus) must be applied. The discount rate is often a hotly debated topic for investors, but for Buffett it is quite simple. For starters, it discounts your future cash flows on a 10-year federal note because it provides you with a relative comparison to a zero-risk investment. You do this to get started to see how much risk you are taking with the potential pick. Once that figure is established, Buffett discounts future cash flows at a rate that forces the intrinsic value to equal the current market price of the stock. This is the part of the process that may confuse many, but it is the most important part. By doing this, Buffett can immediately see the performance he can expect from any given stock selection.

Although many of the future cash flows that Buffett estimates are not hard figures, he often mitigates this risk by choosing nice and stable companies.