Wednesday, March 29, 2017

The Pros and Cons of Seller Financing


For many, the idea of taking out hefty bank loan is fraught with apprehension and misgivings. Not to mention the fact that the rigid requirements of such a loan are not easy to fulfill either.  Far too many financial institutions tend to be particularly strict with their loans, and if your rating is poor and you have already accumulated large amounts of debts, odds are that your application for  a bank loan just might be rejected.  
However, if you have a really great opportunity  for a buying a  business, you should consider opting for the ‘seller financing’ route.   Here is how it works:
Buying a Florida Business with Seller Financing

Instead of paying for a business  or even taking a mortgage on any existing property that you pre-own, you can ask a Seller  to lend you the amount to procure the new business.  After you have acquired the business and once your business prospers, you can easily pay him or her back, as per pre-agreed terms and conditions which usually consist of monthly payments that include both principal as well as a certain amount of interest.  

Pros for buyers:

·       Seller financing lets people procure property who might not otherwise, be solvent enough to be able to acquire mortgages and loans to do so on their own.  
·       The overall closing process is cheaper as well as faster
·       All down payments depend on the personal discretion of the buyer and seller

Cons for buyers

·       The individual seller may charge you a higher rate of interest than most large financial institutions
·       If your credit history is bad, there is an off chance that the seller might not be interested in selling you the property. In other words, you would be treated in much the same way as you have been treated by the mainstream finance institutions.

Pros for sellers

·            A seller is in a position to dispose off his property on an “as is” basis.  In other words, he is not    bound to conduct highly expensive repairs on the property he is selling.

·          Such a sale has the potential to earn markedly better rates of interest than many other avenues of investment.
  
·          Businesses sold though the ‘seller finance’ medium has the potential to sell far faster, since such a sale effectively by passes the entire bank loan process. 

Cons for sellers

·         The property has to be declared ‘free and clear.’ That is, if there is a lien on it, it is imperative that the lender has given his prior approval before the seller may go ahead with the transaction.

·          The buyer could stop making payments at any time.

Keeping all the pros and cons in view, many buyers and sellers in Florida often opt for this form of business purchase due to the comparatively lesser hassle of securing funds for such high value transactions.

Wednesday, March 22, 2017

L1 and E2 Visas: What you need to know

There are many different kinds of visa requirements for non resident aliens who want to work and/or own a business in Florida.
Let us look at the two most common types of visas that people might have to opt for, if they desire to own and operate businesses in the state of Florida.
L1 and E2 Visas

The L1 visa is basically defined as an ‘intra-company’ transfer visa for overseas staff members of different American companies.  An L1 visa essentially allows a US corporation to transfer an important staff member from any one of its offices in another country into US territory.
The L1 can be further divided into two different subcategories:

1.     L1-A 

This visa category has mainly been created for individuals who may be settling in the US for one of two reasons:
·       For the purposes of setting up an office in the United States itself
·       Or they are managers and other senior executives of an American company

2.     L1-B 

This Visa category has been specifically created for highly specialized employees who are deemed to possess exceptional specialist skills or knowledge regarding any specific field in which an American company (or any other type of business) may be working.
However, in both these cases, it is ultimately the employer (or employing organization) that would submit the visa application.
All L1 Visa applications are subject to certain requirements that include some of the following: 
·       The petitioning company may be a corporation or a religious organization or it may be an NPO (Non profit organization)
·       The employer must actively be conducting business as an employer in the US, along with a minimum of one foreign country.
·       The foreign staff member of the organization must have completed at least a bare minimum of one year’s continuous employment for the company outside of the United States.
·       The employee must show his intention of leaving US territory once his visa term has expired.

E2 Visas

The E2 visa category is the primary ‘investor visa’ category in the United States. Moreover, there are neither quotas nor annual caps for such visas, thus effectively meaning that anyone who fits the criteria is free to avail the many opportunities available to holders of visas of this type.
·       An E2 visa allows an individual to gain entry into the US without going through the formality of an actual immigration process
·       This Visa grants entry to the US for a typical period from 2 years up all the way up till 5 years.
·       An E2 Visa is fully renewable and indeed can be extended for as long as the visa holder is in actual control of his business and it generates an income sufficient to support him or her as well as his or her dependents.
·       The E2 visa also covers the investor’s husband or wife (as the case may be) and any offspring under age 21.
When applying for either of those two visas, please do consider Florida as the ideal place to settle and grow your business.