Cash advance loan shops are popping up all over, reminding me of the Starbucks craze. Even online you can easily find payday loan sites that are eager to help folks whose payday check can’t come quick enough. So which is better, the traditional banks or online loan companies? It’s hard to say, there is a place for both I think.

When placing an application for a home loan, person to person interaction would be more comforting I believe. Home aquisition is one of the most important steps a person will ever take, so making contact with another person calms fears of the unknown, especially with the task of a home loan. In cases of bad credit histories, an application through an online loan company can be a welcome relief. It is much easier to receive rejection through a computer than face to face. Also online loan companies can be more lenient towards people with poor credit which helps those that want to get out from under the black mark of bad credit. Investigate both avenues when it’s time to acquire a loan to find out which route is best for your individual needs. I suggest looking at my site for online loan reviews..http://www.onlineloanreviews.com.

Connie Barker is the author of this article and owner of http://www.onlineloanreviews.com

Flash forward a couple of years and I have made and lost my share of money. While still ahead of the game, I learned a few things about online stock trading. Freedom is great, but it comes at a cost. Lets have a look at the benefits and the trade offs of online stock trading:

The Benefits of Online Stock Trading

Low commissions ? for most people, this is the number 1 benefit of investing online. For $9.99 or less, you can buy and sell your favorite stock. Full service brokerage fees are usually over $100. If you are an active trader, that can start to eat up your profits very quickly. For every $10 000 you invest, you have to make 2% ($200 - $100 to buy and $100 to sell) just to break even.

Quickly act on price moves ? another great benefit of online stock trading is being able to quickly act on price moves. With the click of a couple of buttons, you are able to take advantage. With a full service brokerage, you’ll have to call first, explain what and why you want to trade that stock and then wait to see what price you were filled it. Odds are, you may have missed the best entry point, and paid 10x the commission for that privilege.

No middle men ? No justifying why you want to trade, no having to have someone suggest that a stock might be too risky. You call the shots.

Information ? at your fingertips online stock trading can bring much needed and real time info that can help you when to buy and when to sell. Technical charts, real time prices and information sharing can be easily accessed online.

The Drawbacks of Online Stock Trading

No middle men ? while I just listed this as a benefit, its also a drawback. The majority of my losses were from stocks that did not meet my investment plan but were simple stocks that were being pumped and hyped up. Often, you end up buying a stock that is moving higher, and end up having to sell at a loss. When you trade at a discount broker, there is no stopping you from making a mistake. With a full service brokerage, your financial planner can help filter out the bad plays from the smart ones. This advice alone can more than make up for commission fees.

Investment Plans ? online stock trading doesn’t automatically come with an Investment Plan. Why are you buying a stock? What is your exit plan if things don’t go right? Will you use margin? Will you buy penny stocks (and if so, what percentage of your portfolio will be at risk)? A full service broker can help create an investment plan. Trading outside of your risk tolerance is one of the biggest risks your portfolio will face.

The best suggestion I can make for you is to look at a combination of both. Trade stocks online, but talk to an investment planner, develop an investment and trading plan first. While you may have to pay for his time, your trading plan will help you to avoid unnecessary risk when you on online stock trading.

investment strategies for trading penny stocks.

1source4stocks.com provides traders with online trading and investment startegies and tips. Free stock picks for subscribers to the Leading Source - http://www.1source4stocks.com

When our social security system first began making payments in 1940, the average length of collection was 8 years. The present average collection period is 18 years. Furthermore, in the 1950s, there were more than 10 workers for each retiree. Within the next decade, that ratio will drop to 2:1, which will be mathematically unsustainable under our current system. Social security was never designed to be a pension. Its intention was to provide insurance against poverty for the elderly. And yet, the current average retirement age is ‘coincidentally’ the same age that we may first begin receiving social security-age 62. Seems like we’re using it the wrong way!

A Scenario: Healthy male, age 50, loves his job and wants to work until 75. He confidently feels he will live to 100, and he may! What does he need to do to maintain his current lifestyle throughout his 25 years of retirement?

Well, if he presently spends $40,000/year, at 3% inflation he’ll need $83,000/year at age 75 and $175,000/year by the time he reaches age 100. In total, he’ll spend about $3 million during the course of his 25 year retirement.

To accomplish this without risk to principal, he’ll need about $1.8 million by the time he reaches retirement, and to do that, assuming he has yet to start saving, he would need to invest, at 9% net interest, $21,250 per year for the next 25 years.

Had he started saving when he was 30, his annual required savings would have been $3,422, a difference of over 600%. So the question is, have you started saving?

© 2005 Matthew S. Clement, All rights reserved

Matthew S. Clement is a financial planner and investment advisor representative with Financial Network Investment Corporation, member SIPC. He provides holistic wealth management and retirement planning to individuals and businesses. He can be reached in New York at (845) 942-8578, or by email: ClementM@FinancialNetwork.com

Loan Sharking

Years ago a friend got a good job when I loaned him $300 to buy the necessary tools. I charged a $6 per week loan fee (don’t call it interest) until he paid in full. That’s more than 100% annual interest, and yes, we’re still friends. Check the laws in your area if you try this, and take collateral. I don’t loanshark any longer, but in my early twenties I loaned as much as $2,000 at a time ($100/month loan fee), and only once was stiffed on a small loan.

Investing In Other’s Expertise

John showed me several car magazines before I understood why an old fiberglass car was a good deal at $2,300. What’s a Corvette? He convinced me to put up the money, and after a new transmission for $900, he sold the 1976 Corvette for $4,300, netting us $1,000. I took half the profit ($500) for putting up the money for the two weeks.

I’ve done this many times with friends who know cars but don’t have cash. Incidentally, if I had paid a $50 cash advance fee and 18% interest to raise the money with a credit card, my profit would still have been over $400, and John did all the work. I love playing with money. Do you have any friends who know about boats?

Buying Estates

My wife and I met a couple who buy out estates, sell some of it at flea markets, then run the rest through auctions. They’ve made a living at this for years. After negotiating to buy a whole house full of stuff, thay load up their trailer. If they don’t want to do the flea market thing, they auction everything on Sunday afternoon for a nice profit.

If you’re a good judge of value and have an auction nearby, you could also do this with rummage sales. Offer $100 for everything, then auction it off piece-by-piece. An auction near us lets anyone in, with no fee to enter - just a 25% commission on anything sold.

Playing With The Casino’s Money

When I worked the roulette wheel at a casino I saw many people foolishly writing down the numbers that came up. Their theories were mostly nonsense. Casinos welcome these players and even hand them the pen and paper.

One man, however, was actually scientific about it. He found a bias in the wheel, after “charting” it for more than 5,000 spins. A number pays 35 to 1, but one of the numbers, due to manufacturing imperfections or whatever, was appearing 1 in 27 spins, instead of the average 1 in 38 spins.

He bet $10 a spin, and he profited $80 for every 27 spins of the wheel in the long run, or about $100 per hour. Since the ups and downs are dramatic, this is not for the faint-hearted. Even though he made tens of thousands, I saw him lose as much as $700 in a night. Remember too that not all wheels have biases (the casino eventually replaced that wheel). Have you ever tried “card counting” in blackjack?…

Steve Gillman has been studying every aspect of money for thirty years. You can find more interesting and useful information on his website; http://www.UnusualWaysToMakeMoney.com

Looking At Fees

Fees are the hidden costs of loans. Mortgage brokers are paid in fees or points on the mortgage loan. The advantage of a mortgage broker is that they find the best mortgage rates for you. So even with their fee added into the loan, you still can expect to save money.

Online mortgage brokers have automated much of the mortgage loan process, reducing costs. As a way to stay competitive, many of these lenders have eliminated or reduced their fees.

Interest Rate Quotes

Both traditional and online mortgage brokers can give you an instant generic interest rate quote to narrow your choices from a mortgage lender. However, to get a true quote, you will need to provide detailed personal and financial information. With a traditional mortgage broker, the process can take a couple of days to process the information and meet with the mortgage broker to review rates.

Online mortgage lenders connected all their databases to be able to provide you with a near instant quote. Occasionally there can be delays in processing your information if you have recently moved or changed names or jobs.

Difference Is Sales Styles

Online and traditional mortgage brokers differ in their sales style when relaying quotes to you. A traditional mortgage broker will use sales tactics to pressure you to complete the mortgage application right there. Many people feel the need to make a quick decision rather than taking the time to process the information.

Online mortgage lenders offer a different approach; they provided the information, then wait for you to take the next step. After requesting a mortgage quote, you will receive rates either through the website or through email that you can review at your own pace. You can choose to apply with a specific mortgage lender, or decide that none of them are best for you.

To view our list of recommended mortgage lenders online, visit this page: Recommended Mortgage Lenders Online

Carrie Reeder is the owner of ABC Loan Guide, an informational website online about various types of loans.

Adding to the challenge is that almost every creditor’s statement is slightly different, varying in format and billing cycle and interest calculations. You first want to check what you purchased and what you borrowed, so make sure you save all your receipts to make sure you weren’t charged for something you didn’t buy or were double billed. Immediately dispute any discrepancies via phone and in writing.

Next you’ll want to verify the interest rates being applied for each type of purchase. Remember, cash advances almost always carry a higher interest than normal purchases and interest usually accrues from the date you received the money. Also, if you have any balance transfers with introductory interest rates, verify that it is correctly noted and hasn’t been increased prematurely.

Review how your interest is calculated (this information is usually on the back of your statement) and make sure that the right rate has been used for each category. On purchases, most cards take your average daily balance over the billing cycle and divide it by one-twelfth of your annual percentage rate (APR).

Lastly, but maybe most importantly, make sure you send your payment in well before the due date. In order to have your payment credited on time to avoid a late fee, it must be posted by the due date shown on the statement. Therefore, if paying by mail, it is advisable to mail your payment at least a week in advance. For those whose cash flow doesn’t allow an early remittance, paying by phone or on-line might be a good alternative.

The Credit Counseling Foundation, Inc provides web-based education and personalized consumer credit counseling to clients and the general public in an effort to help consumers use credit wisely. Visit target=”_new” us at www.godebtfree.com

Some of the information in this article refers to a manual called "Bankruptcy Basics" published by the Administrative Office of the United States Courts and written by Leonidas Ralph Mecham, Director.

What, When and How Does a Debtor Discharge His or Her Debts through Bankruptcy ?

A discharge of an individual’s debt is a release of an individual’s liability from certain specified types of debt. The discharge is a permanent order to the individual’s creditors that they refrain from taking legal, collection, written or verbal communication with a debtor regarding the collection of unpaid dollars. This means that once allowed a creditor is to cease all collection activities that they would normally pursue against the debtor. If a Chapter 7 bankruptcy is filed the courts typically give four months for creditors to file a complaint that object the filing. In Chapter 13 cases the courts typically discharge the debt on an average of about 4 years from the date the repayment plan has been entered by the debtor. Without any litigation regarding objections to the discharge, the debtor will automatically receive a discharge once the four month period has expired for chapter 7 filing or after the average four year payback through Chapter 13.

What Types of Debt are Discharged?

Not all debt can be discharged through a Chapter 7 bankruptcy. For example public fines and debts due to an individual’s misbehavior such as drunken driving are not allowed. Certain types of tax claims are exempt. Also child support and alimony are exempt. Guaranteed educational loans or debts for certain condominium or cooperative housing fees would be disallowed. An individual may be able to reorganize some of the debts listed if filing Chapter 13.

Can a Creditor Object to a Debtor Attempting to Discharge His or Her Debts?

Yes a creditor may object to the filing of chapter 7 bankruptcy. An individual does not have an absolute right to a discharge of their debt. Creditors receive a notice shortly after the case is filed. A creditor who wishes to object has until the time specified in the motion to dispute the individuals filing. In Chapter 13 bankruptcy cases the debtor is entitled to a discharge upon completion of all payments under the plan. Creditors may object to confirmation of the repayment, but can not object to the discharge if the debtor has completed all payments under the plan.

How Often May an Individual file for Chapter 7 Bankruptcy?

Chapter 7 bankruptcy may only be filed once every 7 years. Chapter 7 bankruptcy will also be denied if a debtor has filed a Chapter 12 or 13 within six years prior to the filing of Chapter 7.

Richard is the Media Planner for Debt Reduction Services?a not for profit organization. You can check out more articles regarding debt or other financial advice at http://www.DebtReductionServices.com

So, why should you join these businesses in choosing to lease? Well, one key factor is that the commencement of a lease can be done with very little out of pocket expense. Two advanced payments or an equal security deposit is usually all that’s required. Couple this with the fact that for many leases, particularly those under $75,000, a simple one page credit application is all that is needed to be considered for approval. Compare this against an equipment loan, with it’s more extensive paperwork and the resulting 10 to 50 percent down payment required to begin the transaction.

Leasing will also allow your business to maintain credit lines with the banks. This preserves the company’s borrowing power for future expansion, investing, or other types of growth where leases cannot satisfy the need.

Many business owners don’t like the idea of paying a premium rate in order to both own and use equipment. If obsolescence is an issue, such as in the hi-tech sector, most companies find it more desirable to be able to walk away from outdated equipment having completed a short term lease. The average term runs anywhere from 2 to 5 years, after which the business can begin another lease and acquire more, up-to-date equipment. This progression can give your company a vital edge over it’s competitors. Other leasing benefits could be expounded upon, such as the tax advantages, lower monthly payments, fixed expenses and the off-setting of inflation, but you can see the point.

Now, simply realizing that leasing is beneficial for your business and then pursuing it as a course of action is only the start. Like bank loans, there are elements of a lease request that increase the chances of funding. That may seem like a no-brainer, but many business owners expect more leniency from lessors than any lending institution is able to provide. Leasing companies, like your business, are in the process to make money. Therefore, some consideration on your part is in order. You should try to give the lessor at least a 70 percent chance of funding your request. Below are the most crucial points of review:

Your Time in Business - Since about 90 percent of all businesses fail in the first three years, most lessors will require of the lessee a minimum of two years in business. In addition, there is generally a maximum transaction amount of $10,000 to $15,000 for businesses under three years old. However, some lessors, in order to compete in their market, have relaxed those requirements or developed special programs for startups and young companies. These types of programs will obviously demand higher lease rates, but the ability for a new business to obtain necessary equipment fairly quickly and with a minimum of paperwork still makes the process very worthwhile.

Credit History of Guarantor(s) - Lessors will make decisions based on a lessee’s credit history after reviewing their consumer and/or business credit report. The leasing company looks for numerous late or delinquent credit commitments, lawsuits or judgments, bankruptcy, unverified residence, short credit history, and debt larger than what is stated on the application. Keep in mind, however, that some of the above problems can still be overcome during the approval process.

Bank Relationship - Your business should have a checking account that has been established for at least two years and has had an adequate average daily balance for that period of time. If there have been any NSF’s, they must not be recent.

Trade Relationships - It’s a strong indicator that your business has good cash flow if discounts are offered (i.e., 2% 10 days: net 30 days). The leasing company looks for trade accounts that are paid on time and within the terms of agreement.

Financial Statements - Generally, if the lease amount is more than $50,000 to $75,000, a full financial package is mandatory. This includes, but is not necessarily limited to, the last two year end financial statements, with a complete balance sheet and profit and loss statement. An interim statement for the current and last year’s comparative period is often required as well if the year-end financials are over six months old.

Other considerations include: the type and cost comparisons of the equipment (collateral), the extent of the lessee’s trade credit and bank borrowing lines, and leasing history of the business.

Though it isn’t crucial to have every one of the afore mentioned points strong, an above average ranking in the majority of them greatly increases the probability of funding. It also increases your likelihood of receiving a better rate. If your business demonstrates strength in only one or two of these areas, it is still possible to secure the financing, though the choice of lessors becomes a bit more limited and the elevated risk is reflected by a higher lease rate.

It’s always in a company’s best interest for the decision-makers to consider leasing as a means of capital conservation. And as you can see, it’s also important to prepare for the transaction should the decision be made to pursue it. The majority of businesses that utilize equipment leasing each year in the United States and Canada continue to do so with at least some of their equipment thereafter. Contacting a leasing company representative or a broker can help you determine if leasing can create an environment of improved cash flow and an opportunity for growth in your business.

Mark Uptain is a Business Finance Consultant residing in Washington State. His website, http://www.EquipmentLeasingSource.com offers free equipment leasing information and quotes to businesses throughout the United States and Canada.

The Loan Website’s Layout and Design

• Are you able to glean valuable information immediately from the website without pushing a series of buttons first here and then there?
• Does the page load fast?
• Are there no error messages?
• Does the web page not have pop-ups, pop-unders and other in-your-face ad campaigns?
• Is the all in all first impression of the web page good?

The Loan Site’s Privacy Policy

• Does the website contain a written statement about their privacy policy? If so, take a quick peak at it.
• If you answer ‘yes’ to the above question, does this policy statement seem reasonable and does it make sense?

The Loan site’s ‘About Us’ page

• Does the lender have an "about us" page? If your answer ‘yes”, then read this page.
• Does the loan company say how long it has been in business?
• Does the loan company tell where they are located?
• Does the loan company post a phone number?
• Does it provide an email address?
• Do they say anything about their policies and philosophies?

The Loan site’s Popularity

• Go to Alexa.com and check the loan sites rating.

Do not use popularity alone. There are plenty lenders with the highest integrity, which may not necessarily have a favourable Alexa rating. Therefore use popularity as one of the many tools for evaluating internet lenders.

The Lenders Reputation

• If you know anybody who knows the lender, are they saying positive things about the company?
• Is the web lender a member of the Better Business Bureau (BBB at BBB.com)?
• If your answer is ‘yes’ to the question above, does the lending company lack complaints on record filed against them at BBB (see BBB’s reliability report)?

In Fact, it’s really surprising how many "popular" lenders carry a ratherlengthy BBB reliability report filled with a variety of complaints. So again, just use your good, common sense and consider reputation as one of many factors.

The Online Loan Application Form

• Is the online loan application form really short or not asking you for too much information?
• Is it simple for you to follow and understand?

As soon as you have completed the online loan application form, prospective loan offers will almost instantly be displayed.

Preliminary offers

• Do the loan offers present you with important information about the points, fees, terms, and rates being offered - in dollars and cents?
• Check the current rates. Are the offers competitive in relation to these rates?

Communication with the Lender

• Pick out 3 or 4 of the most promising lenders. Call each one of them and ask them the questions you want answered. Are you comfortable with the relationship forming?
• Is the lender’s representative you talked with over the phone someone that you feel you could do business with?
• Does the loan clerk answer you clearly on the questions you ask?

Then take a break and think over what you’ve learned. Do some more calls and use your common sense and you’ll soon find out who you work well with. If you follow this method you’ll most likely find a top online loan company. I wish you good luck!

Terje Brooks Ellingsen is a writer and internet publisher. He runs the website 1st-In-Loan.net Terje gives advice and helps people with personal financial issues like various debt solutions and applying for credit cards.

Here’s a little list of things you’ll need to know:

How to Get Money: You’ll need lots of money! Don’t stop reading! There are ways of getting financial support in order to build a house . It certainly helps if you have a swack of cash in the bank. I’d say at least $20,000. - $100,000. to have as a back up - there are a surprising number of things that seem to come out of nowhere that require a quick injection of cash. The amount you will need to ‘get in the ground’ is, of course, dependent on the style and size of your home.

Also, if you already own a home, you’ll be familiar with the territory and may have a fair bit of equity, which you can use to leverage other cash. Contact your Bank to get an Appraisal of your current home and see how much you can qualify for a Line of Credit.

We’ll look at Mortgages, Builder’s Loans, Personal Loans and Line of Credit options. Often, it’ll be a big ‘ol combination of all of the money you can get your hands on in order to pull this off! Remember, this is not the same as buying a house already built, hiring a builder to build it, or buying a ‘previously enjoyed’ house. You’ll be completely responsible for every aspect of the building process.

To get the money to Build Your House, the Banks send out Appraisers to determine how much of your house has been completed before they will release the Draw Money — remember the Appraiser Scene in The Sopranos?? Well, that’s one of our favorite scenes — Dwight laughed so hard he nearly fell out of his seat! If you’re not a Sopranos fan, the Appraiser gets into ’some trouble’ with the Mob, if you know what I mean! ha,ha,ha!

I’m sure there are some good Appraisers out there, who actually know that when the Roof is done, the Subfloor is already in place… d’uh! But even if you have the weeniest appraiser known to mankind, you still have to be really nice and just be prepared with your own cash to continue on with the job. We had to carry the whole project right past the Lock-Up Stage, when the banks usually release the First Draw after the Subfloor is done.

Thank Goodness we had sold our other house first, so that Equity Cash was in the Bank, because that would have been a terrible situation otherwise. So now I would advise having at least $100,000. on hand before you start your own build, just in case. The amount is variant on the size of your house, of course, and we always build big, so do the math and come up with how much you will actually need to get yourself all the way to Lock up, and have that money available before you start.

How Long Will It Take To Build A House? Typically, it can take from 4-5 months if a Big Builder is Building a relatively Small Home, and up to 2 years (I know - that seems craaazy, but it can be true, so be prepared if you’re building a mansion! ha,ha!) for a very large Custom Home.

In general, if you’re Building Your Own House, add a couple of extra months from any estimate for ease in your life, otherwise, your expected time-frame will be too tight and it won’t be pretty!

A Larger Home, especially a Custom Home, will usually take between 6 to 12 months. Sometimes you will run into permitting delays, you can’t get any Trades (if you live in an area with extreme growth or NO growth…!). Our house took Seven full months for the actual Build, but then you need to add another 6 weeks for the Permits to come through at the beginning. Also, we bought the Land a good 2 years before we actually started to build on it (when you build it yourself, you usually have to pay for the Land in Full before you can start the Dig…). I took a fair chunk of time to design the right house for this Lot, then had it professionally drawn.

We were in no hurry, because we wanted to be sure our other house was Sold before we ‘Broke Ground’, so we would never have to worry about carrying two mortgages (yikes!). Our House Sale went through in February and we broke ground on March 4th. Good timing, no?? We went ahead and got the Permits ready when the other house was Conditionally Sold.

Keep in mind that if you’re hiring a Builder (Buying a Home through a Big Builder), and it’s one of their ’stock houses’ (meaning that the’ve built many, many houses in the same identical style…), that the Building Time will be much shorter than if you built on your own. Once you’ve built a house, it’s much easier to build the same thing (or even a slight variation of that same home) again, because now you know the ‘trouble spots’, and changes that could be made to simplify the project.

When we are ready to Build again, I think we’ll sell this house first, buy a smaller place that’s ‘an easy re-sale’ in Town, buy a new Lot, then start another Build. It’s important to look at every side before you even begin to get started, so you don’t create chaos in your life. The further ahead you can plan, the better off you’ll be.

In case you’re wondering, ‘an easy re-sale’ is a house that is gorgeous but not too big and not too expensive. Big and Expensive happens to be my favorite kind of house, but not for a quick sale… and it needs to be in a really good location, preferably close to Schools and Shopping so it will appeal to young families. Also, I always choose a house with 3 Bedrooms on the same floor (Main Floor of a Bungalow or 2nd Storey of a 2 Storey home), because that’s the easiest house to sell to a young mother. And by ‘young’, I mean any mother with kids at home that she still needs to wake up in the morning! ha,ha!

And, if you’re really intuitive,this is already a plan I want to put into action, so I just have to convince Dwight that it’s time to put this house on the market, since it can easily take a year to sell a really big house…sometimes they just fly off the market, but I want to be prepared! Let me know if you’re interested in our gorgeous home! We’ll miss it terribly, but I can always build another, right??

Hire a Builder: If the thought of having a few hundred Grand just sitting in a bank somewhere makes you feel faint, you should definitely consider Hiring a Builder. Quite often they will carry you through to the end of the Build with $20,000. down. Some really big builders will let you get in with waaaay less — sometimes as little as $500. down. Good to really check around to see what you can get that’s in your price range.

Always keep in mind that the more Custom your house is, the more you will have to pay up-front and again at the end. Makes sense, but sometimes that’s forgotten.

Hire a Project Manager: I don’t know how you would Build a house on your own if you were both working in a Nine-to-Five job — I’m thinking it would be next to impossible. I don’t know how many times Dwight had to leave what he was working on to come out to the house to deal with one problem or another. And if he wasn’t available, or it was one of my areas, I would come out. Since Dwight is a General Contractor (as well as a Heating & Air Conditioning Specialist), he was able to correct any problems to prevent delays rather than having to bring in all sorts of other people.

Hiring a Project Manager for your Build is less expensive in the long run (as opposed to a regular Builder), but you will have to have your money in order first, as you would if you were building all by yourself. You can always start out on your own, and bring in someone when and if you need them, too. Find a General Contractor before you get started who would agree to those terms so you don’t find yourself stuck at a crucial stage (and, yes, they’re all crucial stages!).

How to Find Land This is key, since it can often be difficult to find land in the city that does not belong exclusively to a Developer or Builder, which means that if you buy their land, you have to hire their Builders to build your house. What you want to look out for is a B.Y.O.B. Lot (this does not mean ‘Bring Your Own Booze’ to the work site!). This means Bring Your Own Builder. That’s you! It also means that you could contract the building out to an Independent Builder, who might build for significantly less than a big name builder.

Check the Internet, your local real estate papers, bargain papers (there’s usually one in every city — the one in Calgary is the Bargain Finder ), newspapers, etc., to see if you can find a B.Y.O.B. (Bring Your Own Builder) Lot or a good Builder. It’s always a good idea to check out local Builders, first, in case they can build what you want for basically the same a what it would cost you to build on your own. If the difference is less than $50,000, it’s probably better to buy through a Builder, whether Independent or a ‘Big Name’ company. You may be able to do part of the work, provided your skill level is adequate, which will knock the price back even further. Everything is food for thought when you’re looking at an investment in your time and money of this magnitude. You’re less likely to ‘get in too deep’ cash-wise, too.

You can always hire someone else this time around, then really watch to see how it works and try it yourself on the next house! You’ll make a pile of money, either way, especially if you buy in an area with some positive growth potential! Remember, Real Estate rarely goes down in value, so it’s a good investment. You’ll have a nice place to live and when you sell it down the road, you’ll make a bigger profit than most people make in the Stock Market. Plus, if the tax laws permit it, you won’t have to pay taxes on the money you make from the spread (how much you paid for your house and how much it sells for). There’s generally a time frame involved in this, so check with your accountant to get the low down for your area.

How to Design Your Home: The land you buy will determine what you can build, for the most part. If you’re in the city, the neighbourhood will be pre-planned, and the Developer you bought the lot from will let you know what’s allowed. Many new neighbourhoods are ‘Front-car Garage’ houses. Some will allow for a detached garage, or a garage attached at the back. Make sure you’re comfortable with the restrictions that come with the lot before you buy it. If your lot is smaller (as most in-town lots are!), you’ll probably have a basic shape that you can start with (say, a long rectangle, or a square box) - check out show homes for ideas (of course, you can not copy someone else’s house, but you can gather ideas for features you like to see what you want to incorporate into your own house.

Once you’ve got the basic shape in mind, sit down with some graph paper and start playing around with what you want in the house. Three bedrooms on the main floor, four bathrooms (because you really love prunes!), large island in kitchen - you get the idea. The other thing that I highly recommend is the Internet (surprise, surprise!). There’s a ton of information out there, and there is an incredible selection of house plans on the Net. They’re waaay cheaper than having an Architect draw your own designs, and they will often accommodate them to suit your needs (small fee involved, but worth it if you really, really need a sauna off the Master!). The general cost of having your own House Plans drawn up is anywhere from $2,500.00 and up, depending on the house and the Architect. Perhaps you’d even like to build a Walk-Out Bungalow like ours!

Extra Costs of the Land: This applies primarily to buying an acreage, since you’ll need to add about $25,000 into your budget to get the services in, but it’s good to make sure that there are no hidden costs or amenities that you’re required to pay for your lot. We really scored and found an acreage in an Estate Area that already has the services to the lot line ?- WooHoo! That’s a huge savings! (I’ll put that money towards the development of the Garden Room!)

Every so often you may come across a Beautiful Piece of Land and the Developer will carry the price of the Land with a small Down-payment until you’re finished the entire Build and your Mortgage Money has actually come through, then you pay the Developer for the Land at the end. This is very, very rare. More often than not, you may be able to hold the Lot with a Down-payment until you are ready to Build, but you will have to Pay for the Land in its’ entirety before you can go and even get the Permits to Build. I know, I know … it’s a Big Money Game, but it can be done if you’re really determined. All money-related info is much better to know in advance than to discover it later and lose your shirt… you want to make money on a build, not lose it, right?!

After Thought: Well, we’re done the house, now, and Money was the most difficult part of the job. When you are building on your own, you actually seem to need a 3:1 ratio of Cash to Home. What that basically means is that if you want to borrow $100,000., your new home should be worth $300,000.

We were amazed at how little the Appraiser actually knew about the Building Process. We were also shocked at the tiny increments of cash that we got from the Bank. It was not done the way that you’re generally told it will happen — in three main sections — Subfloor, Lock-Up and Completion.

We were given 10% here, and 5% there… it was a long and arduous process, and one we will try our best to avoid in any future Build. We’ll set up a large Line of Credit based on the Equity of our House and go as far as we can before we attempt to get another Builder’s Loan.

This is not to say that Builder’s Loans are never good — not by a long shot. They can be the difference between being able to Build the House or Not, so definitely pursue that avenue if you need to… you might get lucky and find a really great Appraiser who does know the building process…. they must be out there!

The other very difficult part of the Build was with the First Finishing Carpenter. We found him through a reliable source and followed through the regular way. Everything looked like it was going to go smoothly until he started fighting with me about how the Kitchen Island was to be built. He did his best to pit Dwight and I against one another — I would give him the Drawing of how the Island was to be built and he would go to Dwight to say it had to be changed. (Little women don’t know ‘nothin’ about buildin’… ugh! What a yuck!)

Everytime I drove up to the new house and saw his truck I would feel physicaly ill — not a good sign!

I can’t tell you how many fights this caused… Finally, I said to Dwight that we needed to band together against this guy and stop letting him waste time (hours and hours at $45.00/hour…) by pitting us against one another. Dwight agreed and we went back in with a united stand. Much better.

Even after that, this guy couldn’t stay on track with the work that had to be done before we could move in, so after I found another carpenter (no matter how annoying or slow someone can be, always wait ’til you have a replacement before you make any serious changes…I think that might go for some marriages, too! ha,ha!), I came into the house, nothing had been done, and I fired him. He stayed to finish out the day, and Dwight said he had never seen this carpenter work so hard! Now, that’s funny!

It’s incredible, really, how something in a relatively short time period of your life can cause so much upset — this part was very difficult to get through, but we got through it and now it makes for a good story!

Our new Carpenter, Trevor Campbell, came in and saved the day… he fixed all of the other guy’s many mistakes and finished everything that needed to be done before we could move into the house. AND, he never fights with us! It’s a miracle! Trevor is a breeze to work with, so we can get the work done quickly and easily — perfect! We would recommend Trevor to anyone planning any type of Carpentry Work for their home.

As an aside, this is generally good advice for any building project — or anything else that is a huge thing in your lives — stick together as a unit to get the job done. Any item can be compromised on — there is never any one item that should cause so much grief that the whole job comes to a halt. Better to resolve to like it (or not look at it!) than to waste time and money (and potentially your relationship…) fighting over any aspect of the job.

This is not to say that you shouldn’t try to persuade your partner in the right direction if you know they are headed down the wrong path, but do it gently like you’re steering a car around a tight bend — go slowly and carefully so you don’t run the whole thing off into the ditch!

The most important thing is to Keep the Job Going and Get the Job Done. Then Hire a Mover and Move on in — and hopefully, Up!

Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother… all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy… what more could you want?? Pop in for a wee visit! http://www.buildyourownhouse.ca, http://www.theScottishDiet.com