One of the main reasons that businesspeople often choose to lease equipment, rather than borrowing money to buy it outright, is the very low up front cost of obtaining a lease. Unlike bank loans, which often require a large down payment, you can generally initiate a lease arrangement with just two months of advance payments.

This lack of up front costs allows you to keep more of your capital to make valuable investments in growing your business.

Another advantage of leasing equipment is the potential for protection against obsolescence. When buying a new computer, for example, you can negotiate a fairly short lease term, then upgrade to newer machines before the old ones are out-of-date.

That way the gently used computers can be re-sold as refurbished consumer products, while your business never has to do without the top-of-the-line equipment it needs.

Finally, leasing business equipment can come with substantial tax advantages. Depending on the way that your lease is structured, it may be possible to deduct all of your payments as business expenses, offsetting depreciation costs.

It is a good idea to speak with a tax professional to ensure that your leasing arrangement qualifies as a business expense, and can be fully written off against your end-of-year tax bill.

A Lease means an assignment of the right to ownership and use of merchandise for a period of time in return for some mutually agreed on remuneration or recompense. A sale, whether it is a sale on agreement, or a sale or return, or retention or creation of a collateral interest, is not labeled as a 'lease.' Whether it is a real estate property that is to be leased or an automobile or any other kind of property, it must be done within the terms of a legal and binding contract to avoid misunderstanding, loss and breach of trust. A lease contract is an officially authorized document or record that certifies a lease transaction between the individual renting the property and the leaseholder.

A leaseholder can enter into a lease contract with the individual leasing property by approaching a lawyer and stating his assets and choices of remuneration. The individual leasing the property then states his conditions for leasing the property, as well as the expected remuneration. When the two mutually agree on payment, the contract is carefully drafted by the leasing lawyer or agent and signed by both parties. The period of time the recompense must be made is also stipulated in the contract. In case of breach of contract by the leaseholder through non payment of remuneration or repeated, the contract also mentions the penalty incurred therein. Similarly, there is penalty for the individual leasing the property when there is compromise on promised quality, as well as unnecessary inconvenience caused to the leaseholder. However, it must be noted that lease contract are more in the interest of the leaseholder.

Sometimes, a lease contract is combined with an option-to-purchase contract, where at the end of the lease term, the leaseholder can buy the property under mutually agreed terms.

What Are the Range of Options for Equipment Acquisition?

Cash Payments

This option assumes that there is enough cash available.
Advantages:
• It’s simple and quick.
• Everybody accepts cash
• Cash purchases minimize paperwork and middlemen and may help reduce purchase price.

Disadvantages
• It’s generally not a good use of funds.

In today’s investment market, you can often obtain a yield on your money in excess of the interest charged for financing the equipment purchase. The only rationale for paying cash for the purchase is if your funds are in a low-paying account (e.g., a passbook savings account yielding 3%) whose yield is less than the interest on a loan or lease. In that case, taking the funds from a low-yield account and losing the 3% interest in order to avoid paying 9% or 10% is a sound financial decision. Of course, having significant funds in a 3% account is not wise cash management.

Financed Purchase In this method of purchase, a lender provides funds for the purchase and generally obtains some form of lien or other encumbrance on the equipment until the funds have been repaid.

Advantages

• It does not deplete cash flow. (Usually a 10% to 20% down payment of the total purchase price is required. (In many cases, the income generated by the equipment can exceed the payments.)

• Funds not expended for a cash purchase can possibly earn a higher-income yield than the interest rate of the loan. Disadvantages

• Interest rates may be high.

• The down payment may be high.

• The equipment is encumbered by a third party (unless the funds are borrowed from a source other than a financial institution‹for instance, from your pension fund).

Lease A lease offers an alternative to traditional financing. With a lease, the equipment is owned by the leasing company. The practice makes payments to the leasing company in exchange for being able to use the equipment (i.e., essentially rental payments). Leases can be closed-ended, in which case the leasing entity retains the equipment at the end of the lease term. There are also open-ended leases, where at the end of the lease term a predetermined amount is paid to the leasing entity, and the practice attains ownership of the equipment.

As a general rule, the higher the residual value (balance owed) at the end of the lease, the lower the monthly payments.

Advantages
• Generally little or no down payment is required.
• Leases are often supported by the equipment manufacturer, which can lower the interest rate or the residual payment (the amount required to attain ownership of the equipment at the end of the lease term).
• Leasing can give you the ability to obtain more purchasing power from a given amount of available cash.
• Sometimes equipment becomes obsolete in a relatively brief period of time. A closed-ended lease may allow you to use the equipment during its useful life and return it to the leasing entity at the end of the lease term with a lower total expenditure than an outright purchase would have required.

Disadvantage
• More interest is paid than in any other form of acquisition.

Other Leasing Considerations

1. Trade up‹An equipment manufacturer may have a lease or purchase program that will allow significant credit for the equipment you’ve acquired from them when you move up to a more current model or to newer technology. This can alter the calculation of the best option for acquisition.

2. Supported Leases or Financing‹An equipment manufacturer may support the interest rate of a lease or financing plan and may lower lease payments by increasing the residual value of a closed-ended lease. Again, these special offers may significantly alter the assessment of the best acquisition option.

3. Purchase Price‹No matter what financing option you choose, do not ignore the purchase price. Negotiate your best price before you evaluate financing. Do not fall into the trap that automobile dealers have used for years: “You can have the latest and best visual fields machine for only $49.95 a month!” You should always start with the purchase price and then move to the terms (whether lease or purchase).

4. Beware of the Lease That’s Not a Lease‹The Internal Revenue Service may consider an open-ended lease with a purchase option to be a purchase contract rather than a lease. The impact of this is that the lease payments may not be deducted as expenses, and instead the equipment will be capitalized and depreciated. Have your professional financial advisors evaluate the financing contract to assess your level of risk.

5. Each Transaction Is Unique‹Each piece of equipment you are considering for acquisition must be evaluated in the context of the following:

a. Purchase price

b. Projected useful life of the item

c Your current cash position and monthly cash flow

d. Your current and projected future tax position

e. Financing incentives offered by the vendor

f. Careful evaluation of the lease or financing contract to ensure that it meets the requirements for the method you plan to use to report the equipment in your tax filings

g. Any other considerations required by your expert financial and tax advisors

In today’s financial and tax environment, many of the factors that favored one type of financing over another have disappeared. What remain are the purchase price and financing terms, whether the transaction is called a lease or a purchase. Keep in mind that today’s market is not as good as it was last year. In the final analysis you may find that purchasing is cheaper than the interest cost on a lease.

For equipment that you anticipate retaining at the end of the lease or financing term, the purchase price, down payment, monthly payments, and total payments (principal and interest) are key. These factors can be impacted by incentives from the vendor, but ultimately the same evaluation needs to be done (purchase price, down payment, monthly payments, and total payments). Secondary issues may include tax advantages and other concurrent acquisitions.

If you think that eventually you may be recycling the equipment or‹trading up to more current or more capable models‹the evaluation changes; and a lease, especially one that is artificially supported by the vendor, may be a better way to go.

Finally, if you are just starting out in a new practice or have just acquired an existing practice and need to upgrade equipment, current cash availability and projected cash flow may dictate that you finance the acquisition with the lowest possible cash outlay, even if the ultimate total of funds required is significantly higher. Remember to get advice from a professional to help you sort out the details of the equipment lease.

How would you like to have fewer hassles with your next business lease while significantly trimming costs? You can. In fact, getting better lease flexibility can easily trump getting the lowest lease rate. Here is how you can get superior lease flexibility while slashing overall leasing expense:
Lease Amount
First, make sure the lease allows you to include most of the equipment you intend to acquire. You will avoid negotiating another financing arrangement on the excluded equipment. Check that you can easily add more equipment to the lease as your needs change. The better lease arrangements provide for multiple lease schedules under a master lease or the ability to amend existing leases to make additions.
Payment Schedule
Getting a lease payment schedule that matches your company’s cash flow cycle is a big benefit in a lease arrangement. Many lessors are able to accommodate reasonable requests, subject to their own administrative constraints and their view of your company’s credit standing. Monthly and quarterly payments schedules are typical arrangements. Schedules that vary payments to accommodate cash flow seasonality are less typical, but you can negotiate such an arrangement in many cases.
Interim Rent
You can slash lease costs significantly by limiting interim rent. Interim rent is the rent you pay for daily use of equipment between the equipment acceptance and lease start dates. Interim rent can balloon lease pricing by arbitrarily extending the term of the lease (albeit by only days). The best approach is to schedule equipment delivery and acceptance toward the end of the month, to reduce the interim period. Another strategy is to negotiate a truncated period at the end of the lease such that the interim period and truncated period, together, total one monthly payment.
Upgrades
A flexible lease arrangement anticipates equipment upgrades. Usually, at the time of upgrade, the present value of rents associated with the upgrade can be combined with the present value of the remaining equipment rents to create a revised schedule.
Early Termination
Most leases do not provide for early termination. One way to achieve more flexibility is to have such a feature built into the lease. An amount consisting of the present value of the remaining rents plus a termination charge no greater than 3% to 5% should compensate the lessor for an early termination in most leasing arrangements.
End of Lease Options
Does the lease you are considering have flexible end-of-lease options? Here are several options that will make your lease more user-friendly: the right to return the equipment to the lessor without undue penalty or expense; the right to purchase the equipment at a fair or reduced price; and the right to continue leasing the equipment at a fair or reduced rent. Use of upper limits in fair market value purchase or rental options can greatly reduce potential costs at lease end. Beware, however. Lessors may insist on fair market value floors when they agree to upper limits.
Equipment Relocation
It may become necessary to relocate the equipment to another site during the lease term. Make sure the lease provides that equipment may be relocated without unreasonable penalties or charges, subject to notifying the lessor. Keep in mind that equipment relocation may create extra expense for the lessor, particularly if it is to be moved to another state or to multiple locations.
End-of-Lease Notice Period
Is there a sufficient notice period at the end-of-lease for you to indicate your desire to renew the lease, purchase the equipment or return the equipment? The notice period generally ranges from one to six months, with three months being typical. If you violate the notice period, the lease kicks into an automatic renewal period, usually one to six months. You should seek notice and automatic renewal periods that are short, to avoid unintended additional lease charges. If the lessor is unwilling to negotiate this provision, you can manage the situation by making sure the notice requirement is fulfilled within the allowed time.
Grace Periods
Lastly, look for flexibility in the grace periods associated with lease defaults. Typically, a lease will provide little or no grace period for rental payments. You can achieve greater flexibility by asking for a five to seven day grace period. Similarly, the non-payment obligations of the standard lease usually have a short grace period, typically less than ten days. You can gain superior flexibility by asking for a fifteen or twenty day grace period for these provisions.
Getting the lease flexibility that your firm deserves may require some skillful negotiating, but it is worth the effort. Be prepared for some give-and-take as you look for ways to save money and avoid future hassles. You can sign the lease that is put in front of you, or you can follow these easy tips and bring back a great lease deal.
George Parker is a co-founder, Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”). A twenty-five year industry leader, George is a frequent panelist and author of several articles and e-books, including "Using Venture Leasing As A Competitive Weapon" and "101 Equipment Leasing Tips".

Because most people don’t have cash to buy new cars, it is often a choice between leasing and using an auto loan. We will further analyze the benefits of each type of car finance option. The choice that you make will heavily affect your income over the next years. The first thing you should realize is that the decision of buying with cash or lease doesn’t involve just the money aspect, but the time aspect as well.
The car finance option you choose depends on the importance you give to owning a new car. If you value having the latest models on the market, then this will justify spending more money on this privilege. If your view of a car is orientated towards transportation and comfort (you want a car for practical reasons), then owning the newest model should take a few steps back on your priority list. You should think about these facts first and then consider the more tangible issues of car finance options.
The car finance deal that you are going to make starts when the salesperson asks you what kind of car finance option you want to use. Your answer can be one of the following: buy the car, lease the car or pay cash for the car.
If you want to buy the car, the dealer will ask you to fill in a credit application based on your credit scores. An auto loan will be arranged through the dealership. This car finance option usually is a 36-60 month endeavor. The longer the time the lower the payments will be. The amount of money you pay for this car finance option depends on your interest rate, down payment and total sum of loan. Also be careful, as the dealer will want you to make a large down payment. This car finance deal is based on the fact that, until you pay for the vehicle, the lending institution will own the car. The car’s ownership papers will be sent to you after all payments have been made.
There are some important aspects about car leasing that make it attractive to customers, such as: low monthly payments, low down payments and low maintenance costs. The main advantage is that a customer will get a car without giving too much money at once. The monthly payments are kept at a low level, lower than buying car with an auto loan. Another benefit of this car finance option is that the car will have a 3 year warranty and will be covered for mechanical failure during this period. As you can see by now, this looks very attractive and affordable by anyone, but there is a slight disadvantage (the same as in the case of a loan). You will have car payments until the entire sum of the car is paid. Only when you do this, the car will finally be yours.
From this point on the car finance deal will be over and if you have to begin leasing again the assumed responsibility of payment rates will last a long period of time again. The conclusion is that this car finance option (using the leasing method) is more expensive on a long term. Car leasing is actually the most expensive way to go, but those who favor it point out that over a 10 year period this car finance method is the best the average income customer can support.
If you are interested in leasing, this car finance option has some variations. All auto leases allow you to drive the car for a limited number of miles per year. The more you drive, the higher your payments will be. However, if you come to think of it, you save money in the long run. The contract will contain a residual price for the car, which you will pay at the end of the lease as the car passes into your possession. Be careful because this is the riskiest car finance deal of them all!
If you decide to pay cash for the car the transaction everything will be very simple. This is the most favorable car finance deal if your income can support such a large transaction. Negotiating with the dealer will most likely make this car finance option even more attractive. Choose wisely as every car finance offer has its own ups and downs, and every car finance company will try to persuade you into taking their option into account.
When buying a car, a lot of money is involved. Depending on the budget you are willing to spend there will be a car finance option to your liking. A compromise has to be made: one can either spend a lot at once, or spend a greater sum during a longer period of time. Your car finance option will affect your pocket anyway; it’s just a matter of how much money will be given in how much time.

When negotiating on equipment leasing contracts, small business and corporate accounts should review all the legal terms in order to avoid the top mistakes associated with leasing equipment. These rules are applicable in multiple areas of equipment leasing from educational, computer and engineering equipment leases.
Mistakes to Be Avoided in Contracts
One of the primary mistakes made when negotiating their lease is the use of a very short contract. The short contract text may not address issues involving problems with software in computer leases or litigation issues such as employee piracy. Other issues that are not addressed in many short contracts include:
• Software transaction agreements• Troubleshooting Support Issues• Clauses handling provider’s going out of business
It’s important to make sure that all parties have their expectations clearly outlined in the contract. The contract helps avoid mistakes in leasing equipment by detailing the obligations of both parties. Contracts that possess clarity and completeness are important and the shorter the contract, the more likely there will be legal risks and ramifications for the company leasing the equipment.
Performance Details
The contract should detail the performance of the equipment. If someone is leasing a computer system, a server or a backhoe, they need to know that it will handle the load they are preparing to deliver to it. The performance details are an area where equipment can fail in leasing if they are not clearly stated. It’s important to make sure that both parties have those issues clarified before closing on any contracts or deals regarding performance issues.
Structure Defects
Structuring agreements is key to understanding where responsibility lies. An equipment leasing agreement needs to stipulate the structure of the deal. In other words, the salesman is unlikely be the primary contact for system defects. The primary contact may be the manager in charge of that account, but they will likely only handle negotiation issues. Customer support issues may be directed elsewhere. That structure and allocation of responsibility must be clearly spelled out in the contract.
Equipment Hardware Leasing Specialties
When leasing computer equipment, there are often software leases that are required. It’s important to coordinate the duration of the software leases to be comparable with the duration of the equipment lease. It’s important to ensure the compatibility of all leased equipment with other equipment from different vendors. It’s also important to make sure that a project’s start and completion dates are commiserate with the equipment lease. Balancing the needs of the developers with the equipment support is a difficult thing to assess, but it’s important to make sure that the leases support the needs of the company small or large.
Solicitors Not Welcome
Solicitors (lawyers) are often not consulted during the initial drafting of equipment leasing. This is a mistake, especially for small businesses that do not possess an in house legal team. Lawyers can help smooth the transaction and avoid loopholes that might cause legal problems for both parties during an equipment lease. However, when utilizing a lawyer, it’s important to find one experienced in lease transactions.
The Results versus The Resources
Be sure to clearly define the need for the equipment lease. Most leasing companies see themselves as providing resources. Companies large and small are not looking for a resource as much as they are looking for a result. It’s the end of the line result they are seeking most of all.
Communication
Clear communication is important from the get go. When negotiating for an equipment lease, be sure to have all questions answered prior to agreeing. Companies make a mistake in leasing equipment from a vendor if they have trouble getting them on the phone or returning calls. Those issues can lead to service problems in the future.
Be Realistic In Expectations
Client companies must be realistic about what they are expecting. Vendors will usually negotiate and do their best to fill customer requirements, however the client company must also keep in mind industry standards and limitations. While technology continues to grow, it’s important to realize that not every goal has been achieved as yet.
Short Term Versus Long Term
The final and most important mistake made in equipment leasing is considering a contract as something that needs to be closed immediately in order to make a deadline that occurs in the next few weeks. Realistically speaking, avoiding looking at the long-term effects of an equipment lease may leave the client with a piece of equipment they do not need or a bad contract altogether. If their short-term goal is to launch a new product or get the foundation of a new project started, but the equipment will not help in the long-term goal, that should be addressed.
Equipment leasing provides numerous benefits to businesses large and small. It’s important to recognize the benefits, but to also avoid the pitfalls of mistakes that can be made when negotiating an equipment lease.

The Benefits of Leasing your IT Equipment
Many small businesses are concerned about managing cash flow; however, they still have a need for “state of the art” computer systems and other IT equipment to ensure that their clients are receiving the benefit of current technology. If the equipment is not up to date, customers may be lost to the competition that may have seen the light.
A number of business owners are paying for their IT investments from capital dollars and this practice maybe an affordable solution for some. However, having the right payment alternative in place is important for those companies that may not have the finances in place to pay for what they need or whom would like to conserve their cash flow.
This is why leasing computer equipment is a great solution for small business. Leasing your technology investments will allow the owner of a small business to “play with the big boys” without sacrificing cash flow. Here is an example of how a leasing solution provides the flexibility to invest in the computer solution you need. If you have a budget of $12,000 per year to invest in technology, however you require a $30,000 solution in to keep ahead of your competition. By spending only $900 a month on a lease payment, you can obtain the full equipment complement required and still remain within your annual IT budget. This keeps $19,200 in your cash reserves, saves $30,000 for your available lines of credit, and saves $1,200 of your IT budget for other areas of your business. Leasing allows you to preserve lines of credit and cash reserves for appreciable assets, marketing and training. Further, it enables you to pay for your investment as your business profits and grows.
Leasing your computer equipment and other technology will also protect your business from equipment devaluation and obsolescence. At the end of your leasing term you do have the option to buyout. However, you can also trade-up and re-invest in some new equipment, keeping your business ahead of the technology curve.
You may also be afforded some attractive tax benefits by leasing your equipment. Your whole monthly lease payment, including tax, is a 100% deductible business expense. Compare this to bank financing, where only the interest portion of the payment can be included in your business operating expenses. To pay cash, you can only depreciate 45% of half the equipment value in the first year, followed by half the remaining balances in the second and third year, allowing only 80% of the value to be depreciated from the balance sheet.
There are plenty of great leasing companies in Canada that will be able to assist you with your leasing needs. My company encourages leasing for our clients to ensure they affordably have the IT systems in place that keep them one foot in front of their competition. If you have any questions or require more detail, I recommend you seek out a leasing expert in your area. IT Matters works very closely with National Leasing, headquartered in Winnipeg. National Leasing has local representatives all across the country ready to help you find a way to pay for what appreciates and lease what depreciates.

Buying commercial equipment is not like buying a home or car. When buying commercial equipment, you are investing in your livelihood. Even after finding the equipment you need your only halfway there. You will need financing. Thanks to the internet, this has never been easier. Many Finance and Leasing companies such as Prudential Leasing, Resource Diversified Services (RDS) and others have gone digital to reach out to businesses nationwide. These companies have given the small business a chance to compete in their industries. What I have found most valuable about this is how much money and time is saved by these companies providing all the information needed to their clients. Here is just an example of one:
* New or Used Equipment - Heavy, Medium, and Light Duty
* Titled or Non-Titled Equipment
* Non-Recourse to the Dealer/Vendor
* Application Only Programs
* Competitive Rates
* Special Finance Programs to people who have had credit programs
* All Business, Medical, Trucking and Construction Equipment
* Owner Operators OK, 2 years experience
* Over the Road OK
* Small Truck fleets OK, no minimum fleet size
I found that there are usually three things you need to start the process to get approved:
1. Credit Application
2. Last 6 months bank statements
3. Complete Spec Sheet with VIN # and mileage.
This breakdown gives consumers a general outline of what is needed in order to get the financing and leasing they need. Finally, I wanted to talk about the importance of communication. I find that most industries have stopped focusing on communicating with their clients. I, along with the businesses I mentioned above believe it is important for clients to have access to their finance partners. Even if you can’t walk up to their front door and ring the bell, companies must provide some form of visual or vocal contact. Being able to talk to someone in person or over the phone makes you feel like a human being and not just number. I think this is one of the most important things in business; to have a direct line of communication with the client.

If you are considering buying a commercial property, then it is important to understand the basic structures of the leases?
Why?
Because you’re commercial loan terms will be based on the type of lease of your commercial property. In this article, we will only look at two of the more popular lease types…Net Leases.
#1 NNN Lease
In an Absolute NNN lease, the tenant pays for property taxes, insurance and maintenance in addition to the rent.
Most triple net properties are for a single tenant and are long term (5 yrs or more).
This is considered a very desirable investment because the owner basically has no management or maintenance issues; they are the responsibility of the tenant. These items are negotiable, so read the leases carefully. Even though a property may be advertised as a triple net, until you read the lease you will not know.
Some well known companies that are usually triple net are Walgreen's and CVS pharmacies.
#2 NN Lease
NN lease is a type of lease that usually requires the tenant/lessee to pay for property taxes and insurance in addition to the rent. The owner/lessor will pay for maintenance (roof & structural).
This type of lease is not as desirable as a triple net lease for the owner. Why? Because it involves the owner in some of the management details & expenses. With a triple net lease, the tenant is responsible for all expenses, taxes and insurance. As an owner, you want most, if not all of your expenses "net" out of the lease.
The forms of net leases are: N, NN, NNN, and NNN Bond lease. The only way to know exactly what expenses you are responsible for is to read the leases carefully before you buy the property.

Leasing equipment provides the lessee with all the following benefits of utilizing the equipment without having to pay the up-front costs or assuming the risk of ownership. A lease is one of the best ways for businesses to stay on top of the development curve. With so many new developments that occur (particularly in the technology areas) equipment leasing is less financially expensive.
Running a business means making sound financial decisions that improve the condition and quality of a business. Equipment leasing provides such a benefit along with:

Minimal Cash Outlay
Overcoming Budgetary Limitations
Avoidance of Obsolescence
Flexibility in Terms and Equipment
Conservation of the Business’ Working Capital
Increased Opportunities
Tax Benefits
Fast Applications
100% Financing
The minimal cash outlay allows a business to conserve their own capital. A lease also provides for servicing equipment failures. When managing a large computer room, owning all the computer equipment would place not only the upfront cost of purchasing the equipment, but also maintenance and repair as needed. Businesses that conserve personal business capital and lines of credit can handle the more mundane day-to-day expenses and unexpected events.
Budgetary concerns over new equipment purchases can be circumvented through equipment leasing. Operating budgets tend to be more flexible than a capital budget. The lease terms can be as flexible as required and are often negotiable on an individual basis. Lease terms are usually much longer than a standard bank loan, which makes their payment terms even better.
The ability to upgrade remains one of the best benefits of equipment leasing. Businesses grow; technology changes and the needs of both can change year to year. Equipment leasing allows businesses to benefit from developments on both sides of the aisle. Lease terms may also be structured to handle these changing situations.
Considering this multitude of benefits for equipment leasing, it’s not surprising that more and more businesses are reaching out to lease their equipment rather than purchase it. The benefits of leasing are not limited to the computer industry or to large corporations. Small businesses can benefit even more from equipment leasing than a large corporation may.
In a contest of leasing versus buying, leasing wins most of the time. Imagine the small business that houses only two employees. Their working capital may afford a couple of PCs and some exterior accounts to host a website. When a PC in the office goes down, if they are not leasing they will need to replace the machine. In general, the cost of replacing a standard PC is significantly lower than repairing one.
Small businesses need the ability to remain flexible, to upgrade and to keep their machines in maintenance and up to date. Even more than their corporate big brother, they need to know they will remain on the cutting edge of the industry in order to make better business decisions. A small construction company that has no access to certain types of equipment will not be able to take on more challenging jobs. The graphic’s designer that doesn’t have the equipment to support the latest software will find himself or herself less competitive. An accountant that doesn’t have the disk space to maintain growing accounts will have to turn away business.
Leasing equipment makes sense on a variety of financial levels, but also on levels addressing future growth. The business that takes advantage of these benefits are planning two steps ahead of their own niche market and will likely avoid being trumped by their competition. So whether a business is large or small, thinking ahead provides them with opportunity. What is the best benefit a business can receive from leasing their equipment? Opportunity.

Which option is better leasing or buying?
This is a common question amongst many car buyers. Depending on who you talk to, some people may feel that leasing a vehicle is the better option, especially if you enjoy driving a new car every couple of years. On the other hand, if you enjoy a car payment-free lifestyle, buying is without a doubt the better choice.
Difference between Leasing and Buying
There are significant differences between buying a new vehicle, and leasing one. When buying a car, the entire purchased priced is financed. With leasing, only a portion is financed. Thus, leasing offers lower monthly payments.
For example, let's say a particular vehicle is priced at $25,000. If leasing this vehicle for two years, the dealership will calculate the estimated value after 24 months, and leaser finances the difference. Thus, if the estimated value in 24 months is $15,000, the leaser will pay $10,000. On the other hand, if buying the same vehicle, the buyer will finance the entire $25,000.
Advantages and Disadvantages of Buying New Car
There are advantages to choosing the buying option. For starters, at the conclusion of the loan term, you will own the vehicle. Secondly, because buyers own the car, they are able to paint or re-design the exterior. On the flip side, cars lose their worth. Unless buyers purchase with a down payment or accept a higher monthly payment, the car will not have any equity.
Pros and Cons of Leasing a Car
Leasing is ideal for person's who prefer lower monthly payments, and for individuals who like driving a different vehicle every couple of years. With leasing, you have the option of keeping the vehicle for 12 to 48 months. Once the lease term ends, buyers also have the option of purchasing the car at its current value. For more information about leasing Of course, there is a downside to leasing. Leasing comes with strict driving rules. For example, drivers are allotted a certain number of miles - either 12,000 or 15,000 per year. If the leaser exceeds the mileage, there is a penalty. Furthermore, any damages to the vehicle must be repaired before the car is returned to the dealership.

A lot of today’s businesses don’t entirely understand what is involved in a finance application and in some circumstances are not properly prepared for the questions that need to be answered and the information required.
Not being prepared can mean the difference between being approved or not.
Not having your application approved, or not being able to gain the most cost affective and competitive finance result because of lack of information can in most cases slow the forward movement of your business and slow your income growth potential.
It is vital when looking at a new finance opportunity whether it be for more plant and equipment or just more vehicles to increase your sales force, that you are providing your finance agent, bank or broker with as much information as possible, company financials, asset & liabilities, company history etc.
This on the surface could look like a lot of work and very labour intensive, you may also ask “why I am doing that, haven’t I employed someone for that?”
If you don’t have a sound understanding of the information needed and its validity or at very least where it can be found and by whom, it will make the application process long, drawn out and in most cases very complex and hard to approve remember this will cost you money as your broker/agent isn’t working for free and the longer they spend on it, the more they can charge.
What about your own financial position is it being managed by somebody?
If you have a financial advisor, proactive accountant or perhaps a senior employee looking after your personal affairs brilliant.
If not!
Make a simple T account to keep track of your personal financial position and it will also assist in any application for finance as the information of the senior management team is just as important as the information about your company.
Take five minutes to fill out a quick Assets and liabilities balance and keep a copy saved somewhere, update once a month or if you sell off or significantly change your financial position make the update and changes straight away, it is simple and if kept up to date will stay simple, this will assist and fast track the finance application and approval.
Important
The easier you can make it for the agent/broker, could equal less broker fees and commission you PAY!
Another very important factor is WHY?
For what reasons are applying for finance and is what you are financing good value, is it going to cover its cost and is it going to grow your business and bring financial empowerment?
Here is a list of points for you and your business to consider before you apply for finance;
1. Why are you purchasing the goods?2. What benefits will you gain out of buying the goods?3. Is it replacing current goods or will it be additional?4. If additional what sort of income will it bring to your business?5. From a cash flow analyse, what is the financial impact of the new goods to your business?6. Is your business expanding, diversifying or is your business downsizing with the purchase of new goods?
Your business operating history is a vital part to gaining a sound approval for finance, here is a list of questions you will be asked when applying for finance;
1. How long has the business been in operation?2. What does the business do? What industry?3. A brief description of how your business operates?4. How long have your senior management team been involved in the business?5. What experience and qualifications do your business and the senior management team have in your industry?6. If your senior management team is new to your business what where they doing previous?7. What is your corporate structure? Are there any trusts, other companies in your group of businesses that will impact your application?8. If yes to point 7. What is the relationship between the companies? Also note that this should illustrate the involvement of other share holders and senior management teams.
The most integral part to the application is serviceability and the company’s financial position, the best advice is to have your company financials up to date and completed, having a copy of these financials on hand is important, and proactively having the information ready for the finance company will work in your favour and will demonstrate that your business is prepared and will limit the time between the application and its approval.
“Time is money”
The financial information you are providing in most cases should clearly demonstrate serviceability and provide sufficient comment to mitigate any shortfalls or major fluctuations in the year to year analysis.
Will your profits after all the add backs cover all your financial commitments?
Has your business got enough working capital to support further financial commitments?
Additional to your completed company financial data it will be advisable to support any information with a list of aged debtors and creditors for the business, this information will fill any holes left in the company financials and generally will indicate the short term future financial activity for your business.

The assignment is by far the easiest of the Lease Purchase strategies and requires the least amount of investment and risk in order to do the deal and profit upfront. Instead of taking the property and subletting with an option or sandwich leasing you can actually sell the contract to another. You have created a valuable marketable commodity! You can sell and even create a note by financing the sale of the lease purchase agreement, too.
An assignment is when we negotiate the deal with the owner of a property and it contains all the terms of the transaction within the specialized written contract. We can then assign (which means to sell) the contract to a third party. This can be either the Tenant/Buyer or another investor. This is normally a lease purchase agreement which contains a specific assignment clause with the right to sublet, transfer or convey any rights within the original contract with the owner to another principal party.
Example: I found a property in a good neighborhood/school district. The owner had tried to sell it, had put up a for rent sign since he'd be moving to a new state and didn't want to get stuck with two mortgage payments. The property was worth $100,000 and the seller had a mortgage for $95,000. His payments were $1000 per month PITI (principal, interest, taxes, insurance). The real estate agents wouldn't list the home because there was not enough profit to pay a 6% commission. I offered to lease purchase the home with the right to assign and purchase for the balance of the mortgage. I would also pay the $1000 per month with a five year contract and would be responsible for any monthly maintenance/repairs under $100. I would pay $1000 down as option money and the first month rent with a 20 day lead before payments were to begin.
The owner agreed and I began calling all my tenant/buyers from previous ads. One tenant/buyer (with kids) had just files a bankruptcy, but was looking for a home in a good school district and safe neighborhood. He knew that he would need at least 2 years before he would be able to get a new mortgage and save the down payment. He was perfect for this home. I told him he could move into the home, purchase it for the balance of the mortgage and that I will sell him the contract (assignment) for $6500. He only had $3500, but he really wanted the home. I told him that I would take the balance of the assignment fee as a personal note (unsecured) at 0% if he paid on the first of the month. He could pay me $250 per month and pay off the note in 12 months. He agreed. I recovered my $1000, made a $5500 profit ($3500 cash and a $3000 note) and I was out of the deal. Assignments are great for flipping homes without buying them. As usual, everyone wins in a lease purchase.

The gold price fluctuates according to the growth in demand for jewelry. Nowadays, people the world over are investing more money in gold jewelry than before, as investing in gold is termed a solid asset. This increase leads to an increase in gold prices.
One factor that has an impact on the gold price is the weakening of the U.S. dollar. The fear that the U.S. dollar will continue to weaken has led to individuals investing in gold, and this in turn has led to the increase of the gold price. With the rise of oil prices, there has been a rise in inflationary pressures globally. As inflation is erosion on the value of money, people tend to move their money into stable, real assets like gold, giving a hike in gold prices. Even the threat of terrorist attacks change the gold price as investors diversify into assets of good store value like gold. This is because though an attack on the U.S. may cripple the economy lowering stock and property prices, it does not have a material impact on the price of gold.
However, whatever the political and economic reasons leading to the fluctuation of the gold price, there is a universally accepted concept for London and American gold price called gold fixing. It is the procedure where the price of gold is set on the London market with the help of five members of the London gold pool. It provides a recognized rate for pricing the gold products throughout the world. The first fixing took place on September 12, 1919, amongst five principal gold bullion traders of the day. On January 21, 1980, gold fixing reached its highest price of $850. Gold fixing takes place twice daily at their offices, and since May 5, 2004, it has started taking place by telephone. It is through this institution that the gold price of the world is finally determined.

Buying a car is expensive; there is no getting around that. It's easy to pay as much for a new car today as one might have paid for a house a generation ago. But they are more complicated than they used to be and they are safer, too. Still, there is the matter of the money, and if you don't have a lot to spend you may be considering leasing instead of buying. The low monthly payments offered with leases can be appealing, particularly if you are on a budget.
But there is more to leasing a car than just the low payment advertised in the commercial on TV. Anyone who is in the market for a new automobile should consider the pros and cons of leasing a car as opposed to buying one.
Here are some of the good points about leasing a car:
The payments are lower – Sure, the payments are lower; you are only paying for the portion of the car's value that you are actually using, and not the car itself. The lower payments could help budget-minded shoppers, or they could allow the consumer to make a deal on a more expensive car than he or she might have otherwise purchased.
Less cash outlay – It's possible in many cases to lease a car with less out of pocket cash than a purchase requires. This could help some shoppers who don't have a lot of cash for a large down payment.
The drawbacks to leasing include:
Excess mileage fees – The lease spells out how many miles you may drive per year; if you exceed the total over the life of the lease you will have to pay extra. That extra fee could be as much as 25 cents per mile and some leases permit as few as 10,000 miles per year. If you drive a lot and you fail to consider this, you could be paying a lot of extra cash at the end of the contract.
Early termination fee – If you have to end the lease early, the fee charged could be huge. How large? You might have to pay everything owed on the remainder of the contract. Even if you don't plan to end the contract early, it sometimes happens in the form of auto theft or an accident.
You don't have a car – This one seems obvious, but with a lease, you don't actually own a car. When the contract is up, you give it back and you have nothing tangible to show for the money you have paid. You may, of course, purchase the vehicle for an agreed-upon price, but otherwise you will find yourself, once again, without a car to drive.
For some people, the advantages of having a fairly new car all the time makes leasing a good choice. For people who drive a lot or who want to get the most car for their money, buying is probably a better options. Consider the pros and cons carefully in order to decide which method of acquiring transportation works best for you.

The small business owner or manager of a satellite or branch office of a larger company is faced with many decisions when considering their office space in the Dallas – Fort Worth (DFW) Texas metro business area.
These decisions include:
Where do I locate within this large geographic metroplex? Do I locate close to my customers? Do I locate centrally to my employees’ homes? Do I need easy access to the expressway system or the area airports to accommodate customer visits?
The answers to these questions are complicated by the diversity of your employee or customer locations within a 12-county region made up of Dallas, Fort Worth and 126 other municipalities including the fast growing business centers contained within Las Colinas, Irving, Grapevine, Garland, Frisco, Plano, Southlake, Westlake, Coppell and Lewisville. A geographic area encompassing 9,000 square miles might require multiple office locations to adequately serve or cover your markets.
How much working capital will I have to commit towards an office facility, furniture, equipment and my supporting administrative functions? How much time will it require of my management resources to find, hire, equipment and train my required administrative functions? How will I accommodate or plan for increases or decreases in my office space requirements?
This is working capital and management time which would be put to better use for prospecting for new customers or markets or to better service existing customers.
The advantages of using an executive suite management company within the Dallas –Fort Worth business region include:
Quick, easy possession, often within a business day or two. Short periods of commitment – as short as three or six month commitments are generally available. Expansion possible within the building or across locations which makes incremental growth or downsizing much easier. No capital outlay beyond a security deposit is required.
In short summary, the answer for most small business owners or professionals and many branch or satellite office managers is not to lease a traditional office space, equipment it and staff it; but rather, to lease space from an executive suite company located within the Dallas and Fort Worth metroplex.

Getting the correct Florida residential lease paperwork can be a nightmare for you as a landlord. Renting properties, though, can be a seriously profitable business for you. You can make quite a bit of money simply renting homes in the Florida area. However, there are a number of different problems that can crop up if you don't truly understand your duties as a landlord. Tenants may fail to pay rent. Moreover, they could damage your property, leaving you with serious costs on your hands. As a result, it is essential to get the right Florida residential lease document so that your rights will be protected by a court of law if anything happens to your investment. There are many ways you can find the correct Florida residential lease document.
One of the easiest ways to find the right document to fit your needs is to search the internet. A number of copies of a general Florida residential lease agreement are floating around at various websites. However, these free documents should be used with a measure of caution. While they are quite helpful, and for the most part, will stand up in court, if you don't understand the document or don't complete your sections of the document properly, it could be rendered void in a court, leaving you without recourse for your property damage or monetary loss. As a result, unless you have handled Florida residential lease agreements in the past, you should probably avoid the free documents.
Paying a lawyer to help you with your lease agreements, though, may still be a bit out of your monetary range. There are still a number of places on the internet that can help you create the solid legal documents you need to protect your rights as a landlord. Sites like landlord.com are one great resource. They can help give you the information you may need, and they can help connect you with other landlords in your area, which can be an invaluable resource.
Another option you might consider taking advantage of is subscription sites with lease documents. Many of these will answer all of your questions and help to tailor your Florida residential lease agreement to your needs. This can help to protect your rights should they ever be questioned.
Getting the right Florida residential lease agreement paperwork is essential to your role as a landlord. Consult the help you need, and your first rental should go rather smoothly.

Most of the time, your search for a tenant to rent your vacant apartment will go smoothly. Occasionally though, there may come an applicant that makes you feel uncomfortable. Also, he or she may show you a few signs during the decision process that your rental applicant could mean future trouble.
There are also definite signs that perhaps you should take a pass on a person. These signs do not have to be part of your intuition. Rather, most are very specific, and often intimidating signs that you should take a pass on the applicant.
You need to think about the kind of professional relationship you want with your future tenant. Make note of these types of issues you have with your rental applicant. Consider them when making your rental decisions:
He or she questions every decision or part of your application process;
Every discussion becomes a debate between what you are doing regarding your process, and what he or she thinks you should be doing;
He or she tries to rush you through the process, constantly calling you for an answer, despite saying repeatedly you will get back to him or her when you have completed your course of action;
The applicant appears to have a short temper, especially when you ask specific questions;
The applicant makes you feel nervous whenever he or she is around you;
He or she does not want to give you information you have a legal right to have to make informed decisions;
You feel severely intimidated by the applicant because he or she tends to yell or raise his/her voice when he/she hears something they do not like, or, stands over you or very close to you when making a point or, points his or her finger in your face when talking, etc.
You smell alcohol on the applicant’s breath each time you meet;
The applicant appears to be under the influence of something more than alcohol – eyes are dilated, the person acts fidgety, can’t seem to stay still, etc.
I call these intimidation factors, regardless of whether or not the applicant is doing it on purpose or unconsciously. One or more should cause you to think twice about the candidate.
You want a long-term tenancy period over a number of years that will be free from stress, constant questioning of your authority as the homeowner, or your house rules, and constant bickering. If you and the applicant are not getting along before you even complete the process, it will not get better after he or she moves in.
You should make a note of the date and time you have these types of encounters with an applicant, and include it in their file folder. Then, when it comes time to decide between one applicant or another, your notes can remind you of situations in which you felt you and the applicant were not on the same page.
You do not have to rent to a person who makes you feel uncomfortable, or out of place in your own home. Take detailed notes, then move on to other applications.

Trying to completely cover the leasing process in a few paragraphs would be understating its importance. Your rent will be one of, if not the single largest monthly expense. Upon finding a location satisfactory, you must then be able to negotiate the lease to terms which will facilitate your startup, coincide with your anticipated opening (which in our industry is imperative), insure your long-term profitability, and make it possible for you to sell your business in time to someone who may continue on successfully. In order to do so, you must understand that everything is negotiable in a lease. Anything is fair game for discussion. And the stronger your business plan and financials, you will find the more flexible landlords will be.
Negotiating a commercial real estate lease needn't be a battle. Remember, and you shouldn’t have to remind the landlord of this, that it is in both of your best interests that you are successful. If you lease on bad terms, you go out of business, and they have no tenant. In fact, many landlords now recognize that providing "superior tenant service" begins by making the lease negotiation process as simple and efficient for tenants as possible. As important as it is to arrive at a lease agreement that meets the needs of both tenant and landlord, long delays over minor details serve neither party.
It has become more commonplace that landlords have ‘standard’ alternate clauses prepared to substitute should the situation dictate. This prevents delays in legal counsel having to re-prepare specific language repeatedly.
If you choose to deal with an agent, make sure that they are looking out for YOUR best interest. Just hiring an agent doesn’t commit them to your success. Bear in mind that oftentimes they are going to be paid by the landlord for filling the space. Building a relationship with your agent can be done, just as building a relationship with your banker, your realtor you bought your home with, or your advertising agent – with communication. Ask around, ask other agents, ask the agent questions, leave nothing to question.
Terminology
Some basic terminology, to simplify the explanation process.
Request For Proposal (RFP): To be sent, via your agent, to the landlord to request a copy of their standard lease form agreement. The RFP will address many important issues but should always include a section outlining the tenant's expectations with respect to Common Area Maintenance (CAM) and Tax Escalation.
Standard Lease Form Agreement: The standard lease that every landlord has prepared for any commercial property up for lease. Terms and language may differ from property to property, landlord to landlord, but remain very similar in structure.
Base Rent: The asking price for the space itself, not including any taxes, maintenance, insurance, or any type of financed money that may be used for buildout.
CAM: Common Area Maintenance. Do not assume or mistake CAM for Triple Net, or you may be in for a surprise.
Triple Net: The total between the CAM, taxes, and insurance. Depending on the number of other tenants, you may pay a pro-rata share of this cost, or if you are a free-standing unit, you may have the entire cost.
Gross Rent: The base rent plus the Triple Net. This should be the amount you expect to pay throughout the lease.
Vanilla Box: Very vague terminology that can vary tremendously. Generally defined as primed drywall shell, concrete floor, basic commercial lighting, electrical to breaker box, and basic HVAC. Depending on the landlord’s understanding of a ‘vanilla box’, you may walk into more or less than this. Make sure the ‘vanilla box’ is clearly defined in the lease.
CPI: Consumer Price Index. CPI is a government derived number to measure the value of a dollar relative to previous years. CPI is typically the factor used to figure any increase in lease amounts from year to year or during option periods because the government updates the number on regular intervals and it is easily accessed.
Build Out: Also called TI, or Tenant Improvement. This is the amount of money estimated to go from ‘vanilla box’, to a finished club minus equipment. Build out is a major bargaining tool for you, especially while trying to startup with little cash on hand.
Option Periods: Option periods are the time periods, if any, following the initial lease period. Option periods are very important because of the potential fluctuation of lease amounts that may occur. This reveals the importance of the CPI and asking for a cap on the increase. You must define as stringently as possible the costs operating in the future of your business. If not, you may end up paying whatever the market will bear, and that could either put you out of business, kill your profits or business value, or make is simply impossible to sell.
Before getting into specifics of the lease, remember your objective: Secure the space you want, at the best rate possible, keeping as much money in your pocket as possible, until you decide you want to/are able to, sell at a good price to someone who can continue to make money. When you sell your business you are selling this lease also, so make sure you negotiate with that in mind.
A brief overview of the basics of a lease:
An initial lease period of (x) years, option periods to extend after the initial period. If the landlord is uncomfortable with the option periods, you may extend your initial period to 7 or even 10 years, depending on your assessment of the area. For a longer lease term, if your business plan and financials are strong enough, you may negotiate for a lower lease amount per square foot. Security over a longer duration is more valuable to the landlord than high dollar, short term, shaky tenants.
When negotiating option periods, your objective is to define your future rent as accurately as possible. To do so, the rent should be adjusted relative to the CPI, and a cap of no more than three percent yearly should be in place.
I recommend asking for a number of months free rent and/or half rent for several months, from the date the Certificate of Occupancy is issued. Your business needs time to get healthy and grow, and this no rent/reduced rent period facilitates that.
When negotiating the buildout, the ideal scenario for you would be that the entire amount will be paid by the landlord. Again, if you have the financials and the business plan, the likelihood of this happening goes up. Even if you don’t have strong statements, you can still get some help here. You may get a percentage of the buildout paid for (ideally the larger ticket items – HVAC, electrical, etc.), or the landlord may factor the amount into your lease and you repay it over time, or a combination. Be careful that any concession on the landlord’s behalf isn’t overcompensated for in your dollars per square foot lease amount. If the landlord refuses to pay for any of the buildout, you may have to get them to move on the free/discounted rent duration, or some other facet of the lease.
You should be able to sublet space in your own space to another small, related business. This may be chiropractic, massage, or physical therapy. All considerations should be included, from insurance and liability to the access to the building allowed to these subcontractors.
There should also be a specific clause in the lease pertaining to your right to assign the lease without undue landlord interference. At any point you decide it is time for you to sell, dealing with a generic right to assign clause is a headache you want to avoid. This is a clause that you may want to have your attorney draw up, to make sure it is strong enough to prevent a problem.
The Lease should contain exclusions that the landlord will not accept competing businesses in the same center or specified area. This should include all other fitness centers, and may include tanning centers, weight loss centers, supplement stores/juice bars, massage therapists, etc.
Signage should not be overlooked by the tenant, as you can be sure that the landlord hasn’t. First, make sure of your legal rights in your community as they relate to signage. Research sign codes and get in writing exactly what those rights and codes are from the landlord. It must be absolutely clear to both parties exactly what the expectations are with the signage. Size, colors, attachment, etc., all have to be defined and understood in order to avoid any last minute surprises due to violations.
One final note, but certainly not lacking in importance, is the required guarantee on the lease. Similar to banks, most landlords will want you to sign as a business, as a personal guarantor, and possibly a co-signor will be needed. It is in your best interest personally to not sign as a personal guarantor, if at all possible. If the business guarantees the lease, and something goes wrong, the business is liable, but you are not personally. If you personally guarantee the lease, then the landlord may come after your personal assets to satisfy the amount of the lease. This is extremely important if you are involved in a partnership or corporate entity in which the financial burden is unbalanced, meaning someone in the group has more to lose financially. The personal guarantee will also reflect directly on each person’s financial statements. This will be very important when you decide, either individually or as a company, to borrow more money. All of this should be addressed in the business plan ahead of time. If the financials are strong, you may be able to sign as a business, and not worry about the personal guarantee. If not, one way to negotiate is to ask for a clause which will let you sign personally for a designated time period, and then if your business and financial statements are healthy enough, to resign as a business only, removing the personal guarantee, and continuing the remainder of the lease.
To increase the likelihood that you sign the lease that you need and are going to get what you pay for, make sure that you:
• Describe in detail the landlord's responsibilities to tenant. For example, a carefully drafted lease will set forth the hours during which heating and air conditioning will be provided and will establish agreed-to temperature and humidity ranges.
• Define what constitutes a default by the landlord and describe the remedies available to the tenant if the landlord fails to perform its obligations. Many landlord lease forms eliminate these provisions entirely or severely water down the remedies available to the tenant.
• Provide a method for quick, inexpensive and final resolution of any disputes over the lease.
• Don’t get too emotional about a space or time frame, and make sure you have your money before you sign for anything.
• Negotiate for the future of your business.
Other ideas to consider further:
Option to buy property
Sound proofing the location.
Rent averaging – lower rate escalating yearly to higher rate.
Substantial and Partial Destruction and Timely Remedies.

Warning! …Before Entering Into a Lease Option, You Must Know These 4 Secret Ways That Many Investors Will TRY to Take Advantage of You. Do you realize that the national average for SUCCESSFUL Lease Option Purchases is 15%-22%.
Unfortunately, these numbers are so low because all too often, investors will intentionally stack the odds in their favor.
What if… I could show you how to quadruple your chance of success by revealing a few tricks that investors have been using for years, when they sell a home “lease option” or “rent-to-own”. Here and now, I am going to REVEAL 4 “investor secrets” that investors hope you don’t catch on to, because they are designed protect the investor and make the deal “heavily stacked in his favor”. By discovering these easily noticeable signs, You Will Be Able To…
• find your dream home and dream investor immediately
• never waste your time dealing with an investor trying to take advantage of you
• and always be assured that you have “stacked the odds of success” in your favor.
First of all, if you are looking to buy a home, then congratulations! You really are doing yourself a huge favor by getting into a lease option, and getting out the rent trap that has so many people stuck. But, ONLY IF YOU DO IT RIGHT. Read carefully so that you can stand the highest chance for a successful experience with out getting taken by an investor.
Secret One: LARGE DOWN PAYMENT / NONREFUNDABLE OPTION CONSIDERATION
I am not suggesting that an investor who wants “some” security from his tenant/buyer is out of line. However, be cautious when agreeing to pay these. It seems so natural to feel like you have to pay this, because investors will usually insist on a fairly large down. At least any more than a customary security deposit.
They will justify this need with the excuse that you are a credit risk and therefore they need the security that you are serious.
It seems logical doesn't it? But what they really know is that based on the national averages, they stand a pretty good chance of getting this home back. And when they do,…they hope to have kept your big fat down payment for themselves.
It is a huge safety net they put underneath themselves for the day that you give them the home back. Remember, they know that if you are an average “Joe Buyer”, they stand an 80% chance of getting that home back in the next handful of months.
It is true that if you succeed in purchasing the home, it becomes irrelevant. But remember my point, the investor is already assuming you will fail, and therefore wants to keep your money regardless. Therefore, they want a fairly big one.
Secret Two: RENT CREDITS
This is the greatest brain wash that has ever existed.
WHO DO RENT CREDITS BENEFIT???
Answer – ALWAYS, the investor.
Investors will often lure you into their home by promising rent credits. Or in other words, out of every monthly payment, they agree to take a portion of that payment and give it back to you when you buy the home. For example, if you paid $1200 in rent each month,…the investor might agree to give you back $200 per month. They will often credit it back to you for your future down payment or closing cost.
On the surface that sounds good to you, because you think he is being generous to offer you that big savings.
But here are the facts. Mr. Investor is anticipating that you will be one of the 80% that give them the home back. And if you voluntarily GAVE HIM $200 MORE than you should have – Guess who just got richer at your expense. (4 out of 5 times)
Again, you might argue that if you succeed it is irrelevant, and that you were glad to have had the little nest egg saved up or credited back. But like I said before, I will reiterate that the investor is fully expecting the law of averages. He completely anticipates that you will not actually buy his home. Therefore he keeps the $1000 he normally would want, and also the $200 per month that you gave him over and above so that he could do this rent credit thingy.
My advise is this… negotiate to pay him $1000 (which is going to be his net anyway when you succeed), and then SAVE your own $200 in your own banking account and keep it out of Mr. Investors hands altogether.
Same net result to you… Much more security!
Secret Three: SHORT TIME FRAMES & TERMS
When an investor only offers 6 or 12 month terms, they are setting the stage for you to fail. 9 times out of 10 you will need 12-18 months to have your credit ready for a home loan. Rare is the exception to this rule DESPITE how many promises lenders have made to you about how close you are to getting your own loan.
BE REALISTIC and don’t let an investor fool you into taking anything less than a 24 month lease option term. If an investor has your best interest at heart they are going to give you plenty of time to clear up your issues and help you succeed. But unfortunately many investors don’t. THIS IS CRITICAL! You Must have a length of term that is long and realistic. Anything less is suicide.
Secret Four: LACK OF CREDIT REPAIR
The average investor will not offer to help you build your credit up while you are in the home. This is a certain sign that your investor clearly wants you to turn the home back to him in the future. Be careful to stay away from investors who assure you that “you can handle that part of it on your own”.
This is one area that 9 out of 10 buyers NEED credible help to overcome their challenges. If an investor offers you credit help, then that is a good sign that they want you to succeed. But if they don’t…this is their way of hedging the odds in their favor, that they can take the home back in the future, because you will fail.
CONCLUSION:
A Lease Option is a VERY POWERFUL way to take control of your future. If you can’t otherwise get a home loan I highly recommend it over a standard rental home or an apartment. Just make sure you do it right. Watch out for these tale-tale signs of a predator investor. There are companies and private investors out there who offer legitimately great deals to tenant/buyers who need a fair and honest opportunity. Some with success rates as high as 90% of the time. (Verses the national average 15%)
Search them out and compare some of their offers to each other. Never settle for a home where the investor is “stacking” the odds in his favor by using any of these above listed tactics. Now that you know these 4 simple secrets…
…You are more empowered to find the right home, at the right price, in the right neighborhood, and with the RIGHT INVESTOR!

You have decided to set up home in China – whether it's your own personal choice or being posted by your host organization for business – there are a few guidelines that may be helpful to make the transition as smooth as possible. The suggestions below are relevant to those who are looking at renting an apartment rather than purchasing.
Finding an agentIf you don’t have any personal referrals from friends or colleagues, the best bet is to take some of the free magazine publications available at bars and hotels. These are English magazines with all sorts of handy details on housing and social life (restaurants, bars, events etc.). Some of the most popular editions are: Time Out Beijing (monthly), That’s Beijing (monthly), City Weekend (bi-weekly) – all of them are also available online.
Agencies usually charge a fee, which is settled with the landlord. Do not pay anything to the agency in advance since most likely you will never be able to find the person again. Domestic agencies will accept your request only if you are looking at apartments of $120 (per month) and more, foreign agencies cater for rentals of $500 and above. Good agencies will be able to provide you with information on the benefits and drawbacks of the area and building complex. They will also show a lot of patience understanding your needs and eventually provide you with a substantial choice of apartments suitable for you.
Rental is usually paid 3 months ahead to the landlord and contracts signed for up to 1 year. Landlords may be reluctant to sign a short-term contract. After you have found accommodation that suits you, make sure that you are registered at the local office of the Public Security Bureau (PSB – pai chu suo). The process of registration is quick and free. If you fail to do so you will be fined up to RMB 500/day ($65) and you will not be able to renew your visa.
Working to a budgetThese suggestions are just for your reference. There are many more options than those listed below, this is only to give you an idea of what kind of housing you may be looking at according to your budget.
$120 - $250 per monthYou will be looking at areas that are outside of central Beijing, Chinese housing, dirty buildings and elevator service that stops at midnight (to name but a few). Some other inconveniences that may follow are: not being accepted by the neighborhood (there is an assumption that all foreigners have lots of money and that they shouldn’t be in cheap housing), inconvenient traffic, poor access to foreign food – market etc.). However, you will be immediately immersed in the Chinese lifestyle, and so will quickly gain insight into the local community and Chinese culture.
$250 - $400 per monthSome suggestions on areas you may be looking at
MaizidianSituated behind the Great Wall Sheraton Hotel – quite a central location, this apartment complex has long been the first choice with foreigners for accessible and convenient low budget accommodation. There are many different apartments you can find, even some duplex at as low as $250/month.
Wang Jing Xin ChengCloser to the airport, you can find 3 bedroom apartments with great facilities. Traffic to the city center can be a nightmare though.
Dongzhemen WaiOld apartments, very central but may be a bit dirty for those interested in better living conditions.
$500 - $1000 per monthApartments for this price give you the greatest flexibility in choosing the location. Be specific in your demands and agents will be happy to show you around. Traffic in Beijing is a real nightmare so find something close to your work, or if you plan to work at home, look at conveniences such as night life, markets, shops with foreign food (such as dairy produce, fresh meat, good wines etc.)
$1200 - $2000 per monthWith this budget you will be able to look for an apartment in one of the Foreign Compounds. There are 5 of them situated in Chaoyang District and near embassies – Tayuan Compund, San Li Tun Compound (2 of them), Qijia Yuan Compound and Jianguomen Wai Compound. There are a lot of embassies as well as business offices and press agencies located there. Until 1997 foreigners were allowed to live only in these five areas surrounded with big walls and strong security. If you are interested in mingling with Chinese people, they will not be allowed to enter the gates without you, which may be inconvenient.
There are other areas with similar settings that you will be able to find housing at. The only difference is that gates are open to everybody as long as you give details of the host (building and apartment number). Some apartment blocks available within this price range: Sunshine 100, Suncity, Lianbao, East Lake Villas etc, all located in the central area.
$3000 per month - and above (Top end housing)Enjoy the luxury of living in Beijing! Housing at the top end of the market can reach as high as $10-20 000 per month. Villas, courtyards the choice is yours.
Villas are situated closer to the airport, with somewhat fresher air and a better chance to see clear skies (Beijing is very polluted and that may be the biggest problem of all to get accustomed to for those who want to live here – besides the traffic). It is quite remote, requires a car and does not give much feeling that you live in Beijing (quite an American style of architecture)
Courtyard houses are the latest fashion. They are converted typical old-style Beijing housing, where 10 or so families used to live together sharing the same yard, public tap and toilet. In recent years the fast paced Beijing real estate development demolished the majority of courtyard houses, and the few remaining ones have now been newly renovated and are something of a status symbol. What used to be cramped housing with poor facilities is now the ultimate in luxury for one family, who can step outside and enjoy the peace of the yard in the middle of the city centre. Pollution is still a problem but since most courtyard houses are situated in local Chinese communities, it combines the advantages of mingling with the locals and enjoying the benefits of good fengshui.

If you own property that you lease out to businesses or if you own a business which leases property from a property management company you need to be well advised to check over the terms of the lease agreement and make sure that you are covered either way in the event of a large catastrophic category hurricane.
In the 2005 Atlantic tropical hurricane season many business properties were completely destroyed and this caused a huge issue for landowners and building owners alike. Many small businesses were completely destroyed and in many cases the small-business owner was indeed responsible for part of the damage to the building. It is important that you understand terms of your lease if you own small-business prior to a hurricane strike.
Not only do some small businesses lose their entire inventory and customer base due to the destruction and damage of a large category hurricane, but they also find themselves owing money to return the property back to normal. This can be a double whammy on a business and often SBA loans may be able to help the small-business owner bail himself out, but those loans have to be paid back and that can be a severe financial hit on the monthly cash flow. Please check your leasing agreement before the storm hits. When did Noah build the Arc? Before the storm remember? Think on this in 2006.

An apartment is very special and personal to any one individual. A place that you can call your own, a place that you can look forward to returning to after a hard day's work. However, searching for that perfect apartment can be very tedious and there are so many things to consider before you decide on one.
Apartment size is the foremost consideration. Before beginning your apartment search, you have to decide on your ideal apartment size. The number of bedrooms and bathrooms, study and storage space is also important considerations. If you have kids, then you would need extra rooms for them. Budget is also an important issue and you should look for apartments that are within your budget.
Newspaper listings are the best place to start your apartment search. It gives you an overall view of what is available and you can also find out which part of the city the apartment is located. Many people prefer brokers, though you may have to pay them a hefty amount once you decide upon your apartment.
You should ideally check out 5 to 6 apartments before you make your final decision. After you have listed down your apartment requirements, it is time to start your search. During your visit to any prospective apartment, make sure to check that the various amenities in the apartment function properly. Check that the taps, sinks and toilets do not leak. Remember to also check all electrical wirings and connections. An apartment should be sufficiently airy and should allow in enough sunlight during the day. Also check what other apartment amenities are available, such as security, elevators, parking space etc.
Other than the apartment itself, you should also check out the neighborhood. Many apartment ads in newspapers over exaggerate the apartment features and advantages, only to be found out later that all is not as advertised. The transportation options in the area, and proximity to department stores or shopping malls, parks or playgrounds, schools and libraries should all be taken into account. You will be lucky if you are able to find an apartment that has everything that you are looking for.
If you plan to take an apartment on lease, you must carefully consider the duration of the lease. Most landlords prefer an annual lease. However, if you intend to take an apartment for a shorter duration, then you should opt for a month-to-month or a half-yearly lease. Landlords usually charge an advance payment of two months for apartment rentals. Remember also to figure out if you would have to pay any amount as security.

In today’s highly competitive markets, where managing finances is a major concern for most businesses, equipment leasing comes as a valuable financing alternative. In the past, businesses often chose to purchase equipment as and when required for their growth. However, this had the effect of tying up capital and limiting expansion. However due to the tremendous benefits associated with heavy equipment leasing, it is fast becoming the preferred option.

Here are just a few of the benefits:

First of all, by opting for equipment leasing instead of buying it outright, you can free up enormous sums of money which would have otherwise gone into buying the equipment. Thus, heavy equipment leasing helps to increase the cash flow in your business.

Secondly, leasing is categorized as an operating expense for your business and may not fall into the same debt classification as do certain other types of loans. As a result, your balance sheet liability may be reduced and thus the asset-to-liability ratio of your business improves.

This in turn translates into stronger financial statements, which increases the borrowing capacity of your business. (Please don’t take this as accounting advice. I am not an accountant, so be sure to consult a qualified accountant before making any financial or accounting decision.)

Finally, with equipment leasing, you have the option of getting a seasonal lease. Thus, if you have a seasonal business, where profits are greater at certain times of the year as opposed to others, you can opt to make higher lease payments at such times.

This reduces the financial burden on your business and ensures that repayment does not suffer.

With all of the benefits that leasing provides, it is no small wonder that its popularity is growing by leaps and bounds. Check into lease alternatives before you make your next equipment purchase. You may well be glad you did!