Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts
Thursday, August 9, 2012
Monday, April 9, 2012
A common question is, “What type of capital structure is best for my company?” The answer to that question is individually dependent upon your company, its stage of development and its needs. In the broadest sense there a two types of financing, debt financing and equity financing. Let’s take just a minute to consider the broad implications of both.
Debt financing is the infusion of capital by an investor in exchange for an agreement or repayment and interest over a specified period of time. Debt is usually backed by collateral and subject to other restrictions the investor may impose to secure their position. Common examples of debt capital are loans and the issuance of bonds. Debt may be an attractive means of securing capital for your company because you are not required to give up equity in exchange for the infusion.
However, carrying debt on your balance sheet requires that you have sufficient cash flow to make periodic interest payments, projected resources to pay off principal at the time of maturity and collateral necessary for securitization. Debt financing is many times not an option for early stage companies because of lack of positive cash flow. An exception could be debt put in place alongside owner’s cash for the purchase price of hard assets, such as plant equipment or real estate, that’s liquidation price would be sufficient to cover the amount of the loan
Equity financing is the infusion of capital by an investor in exchange for stock in the company. Equity issued to investors in exchange for cash can take many forms such as common stock, preferred stock or warrants. Common equity investments are those made by venture capital funds, angel funds and hedge funds. Whatever the agreement structure, equity investors expect a return in the form of dividends and appreciated stock value at the time of a company sale or public offering.
Equity financing may be attractive because it allows for an infusion of capital into your company without the immediate cash obligations associated with debt service. Additionally, bringing in equity investors means that you’re bringing in new owners and possibly new board members which may a change in the corporate culture. Many times these new owners are experienced businesspeople in their own right and can offer management valuable insight and perspective as your company grows and changes.
While equity financing does not make significant demands on cash flow, except when dividends are paid, it can come at a high price. Equity investors take on a lot of risk when investing in your company at an early state but generally reap handsome returns on their investment at the time of company sale or public offerings.
For more info on this subject as well as more info on getting funding for your start-up go to http://www.capitalmatchpoint.com
Debt financing is the infusion of capital by an investor in exchange for an agreement or repayment and interest over a specified period of time. Debt is usually backed by collateral and subject to other restrictions the investor may impose to secure their position. Common examples of debt capital are loans and the issuance of bonds. Debt may be an attractive means of securing capital for your company because you are not required to give up equity in exchange for the infusion.
However, carrying debt on your balance sheet requires that you have sufficient cash flow to make periodic interest payments, projected resources to pay off principal at the time of maturity and collateral necessary for securitization. Debt financing is many times not an option for early stage companies because of lack of positive cash flow. An exception could be debt put in place alongside owner’s cash for the purchase price of hard assets, such as plant equipment or real estate, that’s liquidation price would be sufficient to cover the amount of the loan
Equity financing is the infusion of capital by an investor in exchange for stock in the company. Equity issued to investors in exchange for cash can take many forms such as common stock, preferred stock or warrants. Common equity investments are those made by venture capital funds, angel funds and hedge funds. Whatever the agreement structure, equity investors expect a return in the form of dividends and appreciated stock value at the time of a company sale or public offering.
Equity financing may be attractive because it allows for an infusion of capital into your company without the immediate cash obligations associated with debt service. Additionally, bringing in equity investors means that you’re bringing in new owners and possibly new board members which may a change in the corporate culture. Many times these new owners are experienced businesspeople in their own right and can offer management valuable insight and perspective as your company grows and changes.
While equity financing does not make significant demands on cash flow, except when dividends are paid, it can come at a high price. Equity investors take on a lot of risk when investing in your company at an early state but generally reap handsome returns on their investment at the time of company sale or public offerings.
For more info on this subject as well as more info on getting funding for your start-up go to http://www.capitalmatchpoint.com
Tuesday, November 29, 2011
Buy the cheapest houses in your market.
If you're an average buyer looking for an average-priced house, you may be interested to know what a typical house costs in your town. But what if you're not an average buyer? What if you want – or need – to spend as little as possible? And I am sure that spending less is always on all of our minds.
In honor of frugal buyers and cheapskates, we've put together a collection of houses that are the cheapest of the cheap in their market. This is a great way to always come away a winner.
Keep in mind that while the cheapest house in town may only cost a buck in Detroit, you'd have to cough up a lot more than that to live among movie stars or rich geniuses — think Bill Gates.
We looked for single-family homes that could actually be lived in, though some will need quite a bit of work before that's possible, and we talked to real-estate agents about why they're priced so low.
Median sale prices are as reported by the National Association for Realtors for the third quarter and are for existing single-family homes in the indicated metropolitan statistical area.
From the desk of Edward E. Cambas through MSN Real Estate.
In honor of frugal buyers and cheapskates, we've put together a collection of houses that are the cheapest of the cheap in their market. This is a great way to always come away a winner.
Keep in mind that while the cheapest house in town may only cost a buck in Detroit, you'd have to cough up a lot more than that to live among movie stars or rich geniuses — think Bill Gates.
We looked for single-family homes that could actually be lived in, though some will need quite a bit of work before that's possible, and we talked to real-estate agents about why they're priced so low.
Median sale prices are as reported by the National Association for Realtors for the third quarter and are for existing single-family homes in the indicated metropolitan statistical area.
From the desk of Edward E. Cambas through MSN Real Estate.
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