Land Loans: Everything You Need To Know

admin March 28, 2024 0 Comments

What is a Land Loan?

A land loan, also known as a plot or lot loan, is a financial option allowing individuals to purchase a piece of land using credit. This type of loan is suitable for those who intend to acquire land without immediate construction plans. It’s important to note that land loans differ from home loans or construction loans. It can be used for both residential and business purposes.

Types of Land Loans

Land loans can be categorized based on the level of land development. Each type of land loan necessitates distinct preparations to convince lenders to provide financing. Let’s explore the different types:

LOAN FOR UNDEVELOPED LAND (RAW LAND LOAN)
- Undeveloped land refers to properties without road access, water supply, electricity, or sewer lines, rendering the land unsuitable for immediate construction. While raw land is the most economical option for purchase, it also requires higher down payments and interest rates to secure a loan. The Federal Deposit Insurance Corp. (FDIC) sets a minimum down payment of 35% for undeveloped land. Additionally, to obtain a raw land loan, you’ll need a well-structured and detailed plan for the land’s development to convince lenders that it represents a calculated risk.
LOAN FOR SEMI-DEVELOPED LAND (UNIMPROVED LAND LOAN)
- Semi-developed or unimproved land typically possesses some basic infrastructure, although it may need more amenities such as phone boxes, natural gas, or electric meters. Financing a loan for unimproved land is less risky than undeveloped land but still requires a rigorous process. The FDIC’s minimum down payment standard for unimproved land is 25%.
LOAN FOR DEVELOPED LAND (IMPROVED LAND LOAN)
- Developed lands, often called lots, come with access roads and all the necessary utilities for residential construction. Although improved lots are more expensive, they tend to have comparatively lower land loan interest rates. Lenders are also more inclined to finance this type of loan, with the FDIC setting the minimum down payment for improved land loans at 15%.

image of draft of a house on raw land purchased with a raw land loan

Advantages of Taking a Land Loan

Land loans offer several advantages for individuals who need more time to build on their purchased land. These advantages include:

Flexibility: Land loans provide the flexibility to secure land for its potential, such as in areas with upcoming business opportunities or future development. You can hold the land until the timing is right for your construction project.
“Blank Canvas”: Acquiring land before any construction allows you to start with a “blank canvas.” You can envision and create your dream home or commercial space according to your preferences and needs.
Transition to Construction Loan: When you’re ready to build, your land loan can be seamlessly integrated with a construction loan to finance the land purchase and construction costs. Ultimately, this can transform your land loan into a standard mortgage when you’re ready to move in.

Disadvantages of Taking a Land Loan

Despite the advantages, land loans come with certain disadvantages, mainly due to the higher risks involved:

Limited Lender Options: Lenders for land loans can be limited in number due to the inherent risks, which may limit your choices when selecting a lender.
Stricter Qualifications: To secure a land loan, you must meet more stringent qualifications than a standard mortgage.
Higher Down Payments and Interest Rates: Land loans have higher down payment and interest rates than traditional mortgages. These additional costs are a result of the higher risks faced by lenders.

To mitigate these disadvantages, having a well-defined construction plan, including a set timeline and cost estimates, can increase your loan approval chances, is essential.

Land Loan vs. Other Land-Buying Options

If you encounter difficulties meeting land loan qualifications, alternative methods exist to finance your land purchase. Some options cater to home-building purposes, while others are designed for commercial space.

SELLER-FINANCING
- Seller financing is where the seller acts as your lender in a land contract. This arrangement can be more flexible and suitable for those who may not meet traditional bank loan requirements. It’s essential, however, to engage an attorney to review the land contract to ensure clarity and prevent potential gray areas or loopholes.
HOME EQUITY LOAN
- Another method for purchasing land is through a home equity loan, where you receive a lower interest rate against your home’s equity. It’s important to note that defaulting on this type of loan could lead to the risk of losing your home.
HOME EQUITY LINES OF CREDIT
- Home Equity Lines of Credit (HELOCs) provide a flexible way to access funds over a specified timeframe using your home’s equity. You can use a HELOC as a down payment for a land loan and repay the HELOC amount and interest.
USDA LOAN
- The USDA offers a land and construction loan designed for low to moderate-income families planning to build a home in a qualified rural area. This option can particularly benefit those seeking a more affordable land and home construction path.
SBA LOAN
- Small Business Administration (SBA) loans are available to assist small business owners in financing raw land and construction costs for commercial buildings. The SBA 504 loan program provides fixed-rate financing with a 10% down payment, 40% loan financing through the Certified Development Loan, and 50% provided by a bank or credit union.
PERSONAL LOAN
- A personal loan can also finance your land purchase. While this approach can offer flexibility, it can have higher interest rates. You may also need to compare its shorter repayment periods with the rest.

Looking for a Land Loan?

Securing a land loan can be more challenging than obtaining a standard mortgage. However, you can increase your chances of approval with proper preparation. A credit union consultant specializing in land financing can provide significant assistance in navigating the process and ensuring your specific needs are met when purchasing land. Explore your options and receive expert guidance by scheduling an appointment with us today.

Canopy Credit Union | Everything You Need to Know on Land Loans

Staying Accountable with a Free Financial Coach

admin March 25, 2024 0 Comments

How a Free Financial Coach Helps You Stay on Track with Your Money Goals Throughout the Year

Beyond simply crunching numbers, a financial coach is someone who helps you develop healthy money habits and instills confidence in managing your finances. They serve as an accountability partner who keeps you motivated and on track toward achieving your desired financial outcomes. Whether you set a New Year’s resolution to save more money, pay down debt, or start building wealth, a free financial coach can help keep you on track along your journey to financial wellness.

GET HELP CREATING A PERSONALIZED BUDGET THAT ALIGNS WITH YOUR FINANCIAL GOALS AND LIFESTYLE CHOICES

A financial coach understands that each individual has unique circumstances and priorities. They take the time to listen to your specific needs and help you create a budget that not only addresses your immediate concerns but also sets you up for long-term success.
One of the key benefits of working with a certified financial coach from Canopy is their ability to help you craft a budgeting strategy that you’ll actually stick to. They provide guidance and support throughout the process, making sure you understand the importance of tracking expenses, identifying areas where adjustments can be made, and finding creative solutions for saving more money.
Over time, you’ll learn to take control of your finances in a way that feels manageable and sustainable. With their guiding expertise at your side, you’ll have the tools necessary to make informed decisions about spending, saving, and ultimately achieving greater financial stability.

RECEIVE TIPS FOR MANAGING DEBT EFFECTIVELY TO ACHIEVE LONG-TERM FINANCIAL STABILITY

In today’s fast-paced and often financially challenging world, managing debt can be a source of stress and anxiety for many individuals. However, there is a solution that can help alleviate this burden and pave the way towards long-term stability: working with a free financial coach.

A financial coach is not just someone who provides tips on managing debt; they are your ally in navigating the complex world of money management. They understand the unique challenges you may be facing and offer personalized guidance tailored to your specific situation.

One of the greatest benefits of working with a financial coach is the ability to reduce stress. Debt can weigh heavily on our minds, affecting our overall well-being and quality of life. A skilled coach will not only provide practical strategies for paying off debt but also offer empathy and compassionate support throughout the process.

Best of all, the financial coaches at Canopy Credit Union offer this service completely free of charge, to both members and non-members of the credit union. This means that anyone, regardless of their financial situation, can access expert advice regardless of how much is in their checking account. This service is an opportunity to gain valuable insights from professionals who genuinely care about helping you achieve your long-term financial goals.

LEARN STRATEGIES FOR SAVING MONEY AND BUILDING AN EMERGENCY FUND

In uncertain times, having a solid emergency fund can bring a sense of security and peace of mind. It serves as a financial cushion that can help navigate unexpected expenses or job loss. However, building an emergency fund requires discipline and strategic planning.

One of the most effective strategies for saving money and building an emergency fund is to create a budget that fits this consistent savings goal within its framework. By tracking your expenses and identifying areas where you can cut back, you can allocate more funds toward your savings. This may involve making small sacrifices in your daily spending habits, such as eating out less frequently or finding cost-effective alternatives for entertainment.

Automating your savings is another powerful strategy. Set up automatic transfers from your checking account to a separate savings account specifically designated for your emergency fund. This way, you won’t have to rely on willpower alone to save; it becomes a consistent habit that happens automatically.

It’s also important to explore ways to save more money in your everyday life. Look for opportunities to reduce monthly bills by negotiating with service providers or switching to more affordable options. Additionally, consider embracing frugal habits such as couponing, buying in bulk, or opting for second-hand items when possible.

While saving is crucial, it’s equally important to maximize the growth of your emergency fund through smart investments. Explore high-yield savings accounts or CD/term share options that offer competitive interest rates. Remember that the goal is not only saving but also allowing your money to work for you over time.

Lastly, maintaining motivation and staying focused on the long-term benefits of having an emergency fund is essential throughout this process. Celebrate small milestones along the way and remind yourself of the security and freedom that comes with financial preparedness. Plus having a free financial coach at your side to guide you along the way will help you stick with your goals for the long term.

By implementing these strategies and consistently prioritizing saving, you can build an emergency fund that provides stability during unforeseen circumstances while also fostering healthy financial habits for the future.

FINALLY, DISCOVER HOW TO GROW WEALTH OVER TIME

A financial coach understands that before you can start building wealth, it’s essential to address certain foundational elements. First comes debt management – they will assist you in creating a plan to pay off any outstanding debts efficiently. By managing your debt effectively, you can free up more resources to allocate towards building an emergency fund and putting resources towards wealth-building activities.
Throughout this journey, a compassionate financial coach recognizes that everyone’s situation is unique. They will listen attentively to your concerns and tailor their guidance accordingly. Their goal is not only to help you build wealth but also to empower you with financial literacy so that you can maintain long-term financial stability.

By working alongside a knowledgeable financial coach, individuals can gain the confidence necessary to make sound financial decisions throughout their lives. Together, they lay the foundation for lasting wealth by addressing debt management, establishing an emergency fund, growing net worth, and harnessing the power of strategic investments.

By partnering with a free financial coach, you can stay accountable to your money goals throughout the year. Their guidance and support will help you navigate challenges, track progress, and make informed decisions that align with your long-term financial well-being.

Schedule your first appointment and start working with one of Canopy’s free financial coaches today.

Canopy Credit Union | Staying Accountable

Scaling Up: Strategies for Growing a Small Business into a Thriving Enterprise

admin February 7, 2024 0 Comments

Rome wasn’t built on the same day,in the same way,you cannot scale up your business overnight. Such achievement requires careful planning,proper decision-making,and creative thinking. It’s exciting for entrepreneurs or CEOs to experience scaling in their ventures,but they should know that it can be challenging. Most of the famous businesspersons who achieved popularity through their outstanding success in their business admit that it was not easy getting to the top. One like Grant Kelley,the CEO of Vicinity Centres,a Melbourne-based real estate investment trust,started small. However,with his consistency and strategic steps,he made his business prosperous. If you wish to learn the strategies for transforming your small-scale business into a mega enterprise,kindly read to the end.

What is your growth vision?

One cornerstone of upsizing your business is having a clear vision. Begin by picturing what you want your business to look like in the future and what targets you want to attain. Clearly state your niche,potential clientele,and how you will distinguish yourself from competitors. Taking a small local bakery,for example. Typically,the vision of the bakery’s owner would be to expand regionally,deliver a wider range of baked foods,and become known for their unique customer service.

Optimize workflows and systems.

If you want to foster your business growth,optimizing your business processes and systems is vital. Locate areas where you can enhance productivity and put scalable solutions into action. For instance,an online retailer may allocate funds in an automated inventory management system that records stock levels and foretell demand. This automation enables the business to deal with increased sales volume without forfeiting accuracy or client gratification.

How Good is your team?

Transforming your business into a mega-one is more than just a one-person job. It would be best to surround yourself with a committed and talented team with the same vision as you,and can be useful in implementing your growth plans. Employ people who bring compatible abilities to the table. For example,if you are running a digital market agency,as your business expands,you might hire professional SEO specialists,content writers,and social media managers to extend their service offerings and take care of a wider variety of customers.

Innovation must not stop.

Innovation is crucial for a business that desires to stay ahead of the competitive landscape. In your company,encourage a creative lifestyle and welcome new suggestions. By doing so,you can expect innovations in forms,like improved processes or new product features. Let’s assume you run a ride-sharing company that began with a simple app but transformed its service to include package delivery,food delivery,and even electric scooters. Innovating continuously,in this case,has allowed you to diversify your revenue channels and position yourself as a full-service mobility solution.

Conclusion

Now that you have learned the best strategies for scaling up your business. What is left is to start to take significant steps into employing such strategies. By doing so,expect your business to grow even to the levels of top companies headed by experts like Grant Kelley.

For more information: Grant Kelley

2025 Income-Related Monthly Adjustment Amounts (IRMAA) Brackets: Understanding Medicare Costs and Monthly Income-Related Adjustments

admin January 12, 2024 0 Comments

Predicting the 2025 IRMAA Brackets and Surcharges

With the use of data such as the CPI-U,we are capable of predicting the development of the 2025 IRMAA Brackets,as well as the corresponding surcharges for that year.

Every year,the federal government provides projections detailing how the Medicare program‘s finances must evolve to ensure its continued operation.

Expected Medicare Cost Increase

In the years 2024 and 2025,Medicare’s financial requirements,including surcharges,are expected to rise by approximately 6.00%.

The Impact of Inflation on the 2025 IRMAA Brackets

Historically,the inflation rate has run at approximately 2.55% annually. If we consider the current reports that state that inflation is slowing down,and that if inflation continues to grow at its consistent historical rate,then we can project the IRMAA Brackets to increase by this 2.55% inflation rate.

By drawing on the historical inflation data in the country and the governmental insights on surcharges,we can gauge what the 2025 IRMAA Brackets may be.

Understanding the CPI-U

The CPI-U,or the Consumer Price Index for Urban Consumers,is a metric provided by the Bureau of Labor.

“This index offers a monthly measure of the average change over time in the prices paid by consumers for a range of consumer goods and services.”

Essentially,the CPI-U quantifies the inflation rate by assigning a numerical value to the spending trends of city consumers. When the CPI-U number surges higher than the prior month,it signals that the goods and services frequently purchased by consumers have likely become more expensive.

IRMAA: A Revenue Source for the Federal Government

When examining the 2025 IRMAA Brackets,it’s worth noting that IRMAA essentially acts as a tax on income and thus serves as a significant revenue stream for the federal government.

Legislation dictates that the IRMAA Brackets must adjust in accordance with the rate of inflation annually. However,Congress possesses the power to alter these guidelines at will.

Assuming no interference from Congress,the 2025 IRMAA Brackets could be noticeably higher than their current values. Nevertheless,this does not mean that optimists should let their hopes up.

Medicare Beneficiaries: An Increasing Trend

Latest federal government reports predict an increased necessity for IRMAA participation for Medicare to have sufficient funds. As of this moment,approximately 15% of all eligible Medicare beneficiaries participate in IRMAA,and by 2025,this proportion should rise to around 17.5%.

Unfortunately,despite this rise,the Medicare program is still projected to exhaust its funds within three years.

To ensure retirees have access to a functional Medicare program,either the IRMAA Brackets need modification,or all taxes must see an increase. The resolution now dawns on a decision from Congress – whether to tax everyone or to target only those with the financial capacity.

Understanding the Concept of Settlement

admin September 29, 2023 0 Comments

In the labyrinth of legal jargon,you’ll often stumble upon the terms ‘settlement’ and ‘sell settlement’. A sell settlement can refer to the act of selling one’s rights or claim to a settlement,often for a lump sum amount up front rather than waiting for future structured payments. Meanwhile,the term ‘settlement’ serves as a peaceful resolution between adversaries entangled in a legal dispute. This termination halts its march towards judicial judgment preemptively. The usual choreography involves the defendant extending an olive branch in the form of monetary recompense to provoke the plaintiff into laying down their legal weapons— sidestepping protracted litigation and courtroom duels.

Though it’s crucial to note,a settlement isn’t an admission ticket stamped with guilt; sometimes,defendants pick this route simply to dodge potential spotlight brought by public trials.

Venturing deeper into civil lawsuit territory,settlements act as lubricants smoothing out friction in resolution processes. They serve as detours around unpredictable roadblocks posed by courtroom verdicts. As expected,most civil disputes find closure under the wide umbrella of settlements rather than embarking on arduous journeys to trial.

The guidelines etched within settlements aren’t mere handshakes but legally binding handcuffs,transforming gentleman’s agreements into iron-clad contracts enforceable by law. Such meticulous design cultivates accountability like crops in a field ensuring all parties involved dutifully honor their shared commitments.

The Legal Implications Surrounding Settlements

Legal implications of settlements,in their intrinsic complexity,hold significant weight for all parties entangled. It’s critical to comprehend that a settlement is not merely an agreement but a legal contract. With this comes the obligation of adherence; failure to comply could invite stringent consequences like lawsuits or financial penalties.

Another intriguing aspect cloaked under confidentiality – settlements often operate under the shroud of secrecy. The involved parties are legally bound not to disclose any details regarding terms or circumstances surrounding the pact. This confidentiality is guarded by law and any violation can invoke severe punitive measures.

The finality woven into the fabric of these agreements serves as another pivotal facet in their legal implications. Settlements typically act as dispute terminators,thereby precluding further litigation on the same issue – something that carries considerable potential repercussions.

For instance,consider scenarios involving personal injuries or malpractice: once a party accepts a settlement,they cannot later pursue additional legal action even if subsequent damages outweighed the original settlement amount. As such,this element introduces immense gravity into negotiation and acceptance proceedings related to settlements and requires keen awareness from all participating entities prior committing.

How Settlements are Structured

Crafting settlements entails a painstaking process,where an array of elements are meticulously analyzed. These could vary from the nature of disagreement,applicable laws to the fiscal standing and acceptance threshold of those involved. More often than not,a specialized team constituting legal professionals and financial counselors carve out the shape of a settlement framework to ensure it’s maximally advantageous and mutually agreeable.

The sketching of settlements begins with pinpointing the central issue or disagreement,succeeded by gauging compensable damages. This phase offers vital insights into what might be the quantum or magnitude of the settlement value. Subsequently,this amount is presented in an organized format that includes exact specifics about how much money needs to be paid out,when these payments should occur,and adherence terms. It’s fundamental to bear in mind that such structured settlements carry legal weight and can be enforced — thus providing systematic yet efficient solutions for disputes.

About The Agile Guide To Winning At Team Development – Atlassian

admin April 10, 2023 0 Comments

Examine This Report on Team Development – Center For Creative Leadership

: The auto mechanics of intergroup communication, decision-making, and also responsibility are agreed upon as well as handled effectively. Nearly all groups lack one or more of these requirements at some point in their period. Team development strives to meet these requirements with ongoing representation and also development. Like any type of type of development, it takes some time as well as devotion to be reliable.

As the actual job begins, the task might offer both technological and also social challenges. Individual job routines, leadership decisions, or gaps in interaction can trigger tension within a team. Annoyance, irritation, and anxiousness frequently develop in feedback. This stage of team development is called storming. Storming is one of the most difficult and ineffective of the 5 phases of growth, yet it is however essential to the team development process.

With this info, the team can begin desiring a far better team dynamic. The norming stage of team development is the calm after the tornado. In this phase of team development, team participants come under a rhythm as a cohesive taskforce. The skills of each member are validated and also made use of to implement the required jobs.

5 Easy Facts About 5 Stages Of Team Development: Tuckman`s Group Development Explained

The team can handle dispute and also wage the job successfully. Some teams reach a phase of growth in which they thrive at their private and cumulative jobs. The skills of each member are completely maximized, supervision is practically never ever required, and participants feel a strong sense of trust in one another.

Reaching the executing stage is a major success and also commonly speeds up some form of group knowing. Group discovering is a behavior process of seeking, event, talking about, and also implementing methods of team success. Whether via training, group effort, or ingenious management, team understanding is an action step that makes certain healthy and balanced team development.

Knowing Outcomes Describe the five stages of team development. Explain how team standards and also cohesiveness impact efficiency. Introduction Our discussion thus far has focused primarily on a group as an entity, out the individuals inside the group. This is like describing a vehicle by its model and also shade without considering what is under the hood.

See This Report about Stages Of Team Development During Times Of Change – Sme …

In teams, the interior features are individuals in the group as well as just how they interact with each various other. For teams to be reliable, individuals in the team should have the ability to interact to contribute collectively to group results. This does not occur automatically: it creates as the team functions together.

Stages of Team Development This process of finding out to function together effectively is referred to as team development. Study has revealed that groups go with clear-cut phases throughout growth. Bruce Tuckman, an educational psychologist, determined a five-stage advancement procedure that the majority of teams follow to become high carrying out. He called the stages: developing, storming, norming, doing, and adjourning. platform.

The majority of high-performing teams undergo 5 stages of team development. Forming phase The forming phase entails a duration of alignment and also getting acquainted. Uncertainty is high throughout this phase, as well as individuals are searching for leadership and authority. platform. A participant who insists authority or is experienced might be looked to take control.

8 Easy Facts About The 5 Stages Of Group Development Explained – Clockify Blog Shown

Team performance boosts during this phase as members find out to comply and start to focus on team goals. The consistency is perilous, and if arguments reappear the group can glide back right into storming. In the carrying out phase, agreement and participation have been reputable and also the team is fully grown, arranged, as well as well-functioning.

Results: a behavior your team needs to succeed

Issues and also conflicts still arise, however they are managed constructively. (We will review the function of conflict as well as conflict resolution in the next area). The group is focused on problem resolving and fulfilling team goals. In the adjourning phase, many of the group`s objectives have been accomplished. The focus gets on finishing up last jobs and also documenting the initiative and also results.

There may be regret as the team ends, so a ceremonial acknowledgement of the work and also success of the group can be valuable. If the group is a standing committee with continuous obligation, members might be changed by brand-new people as well as the team can go back to a developing or storming phase and repeat the advancement procedure.

The Only Guide to What Are The Stages Of Group Development? – Asana

Team norms set a criterion for behavior, mindset, and also efficiency that all employee are anticipated to adhere to. Standards are like regulations however they are not jotted down. Instead, all the team members implicitly understand them. Standards are reliable since employee intend to sustain the team and maintain connections in the team, and when norms are gone against, there is peer stress or permissions to implement conformity.

3 Easy Facts About Tuckman`s Stages Of Group Development - West Chester ... Explained

During the forming and also storming stages, norms concentrate on expectations for attendance and commitment. Later, throughout the norming as well as carrying out stages, standards concentrate on partnerships and also levels of efficiency. Efficiency norms are very vital because they specify the level of work effort as well as standards that establish the success of the team.

Norms are just effective in regulating actions when they are approved by employee. The level of on the group mainly figures out whether employee approve as well as adjust to standards. Team cohesiveness is the extent that members are brought in to the group as well as are encouraged to stay in the group. artificial intelligence.

Examine This Report about Tuckman`s Stages Of Group Development – West Chester …

They try to satisfy standards since they wish to preserve their partnerships in the group and also they intend to meet group assumptions. Groups with solid performance norms and high cohesiveness are high performing. The seven-member executive group at Whole Foods invests time together outside of work. Its members regularly socialize and also even take group vacations.

Houston team training and development programs

You do not need to gain superpowers from a serum or create one of the most renowned brands of your generation to be a wonderful leader. Guide your group with each stage of the process with the complying with suggestions:1. Set a clear purpose and goal as well as revisit it throughout the procedure.

It is the framework that will assist you make choices. It offers you instructions. Without it, you`ll go nowhere. Individuals get so shed in a specific job that they forget why they are doing it to begin with. It is very easy to lose sight of the “broad view”. Groups require a clear objective as well as goal and also must be advised of them often.

Some Ideas on Team Building In Project Management – Pmi You Need To Know?

Establish guideline as well as make certain they are adhered to. Rules may not seem enjoyable, but they clean up confusion. Without them, no person will certainly understand what is considered acceptable actions. Every person will have their very own “style” of doing things. Groups without policies are disjointed, vulnerable to conflict and inefficient. One of the very first tasks that teams should do is develop ground rules.

Some examples are:Read the details at turnkeycoachingsolutions.com Don`t disrupt one more member when they are talking. Switch off your phone throughout working conferences. Track your time transparently with Toggl Track. Create a regular job plan with jobs as well as share it with the team. Bear in mind that regulations are created to assist your group stay concentrated on what matters mostperformance.

Turnkey team development programs

Allow various other members act as leaders or facilitators. Every group ought to have a facilitatora individual that leads and also overviews conferences and conversations. Somebody who drives the group in the direction of an usual goal. As a business owner or manager, you might be the assigned group leader. That doess not suggest you should constantly be the one leading.