With most lenders, having bad credit or a past bankruptcy is not a
problem. Thus, you can obtain an automobile loan with a low credit score.
There are certain advantages to having good credit. These individuals
generally pay a few percentage points less, which equals a lesser monthly
payment. However, qualifying for a car with bad credit is easy. Here
are a few tips to help you get approved.

Requirements for Getting an Auto Loan with Bad Credit

To get approved for a bad credit auto loan, applicants must meet
certain requirements. For starters, car loans are not offered to minors.
Therefore, applicants under the age of 18 must have a parent or other adult
co-sign for the loan. Moreover, applicants must be employed and have a
driver’s license.

Auto loans are the easiest types of loans to obtain because they are
secured. With this said, auto loans are perfect for those hoping to build
a solid credit history, and individuals hoping to raise their credit
score.

Skip Dealership Financing

Securing financing through the car dealership seems simple and
convenient. Nonetheless, keep in mind that dealerships will make a small profit
off of your financing package. To do so, they must increase the
interest rate a few points.

If the lender approved you for a 10 percent interest rate, the
dealership may charge 11 or 12 percent. To avoid paying the extra fees, look
for private financing. Private financing could come from a bank, credit
union, etc. If possible, get pre-approved before visiting dealerships.

Check Credit Report for Errors

Having bad credit does not always mean getting hit with the highest
interest rate. Prior to applying for an auto loan, attempt to make some
credit improvements and correct errors. For a few months leading up to
financing a new or used car, pay all bills on time. This could make the
difference in getting a loan with 12 percent interest and 9 percent
interest.

Explore Different Types of Lenders

Common lenders used for an auto loan include banks and credit unions.
However, there are lenders that offer bad credit auto loans at
reasonable rates. Sub prime lenders are becoming increasingly popular. They
offer online applications and quick pre-approvals. Moreover, various
lenders will provide a no-obligation auto loan quote. This way, you can
review their offer before making a decision.

Over the past few years, the popularity of car leasing has soared. When you compare leasing with buying a car and suffering the humongous monthly installment fees, leasing provides a better and more viable financial option.

For auto leasing, you need to know the tricks of the trade so that you will not end up paying more than when you directly buy the car. There are car dealers and manufacturers who can give you your money’s worth if you want to go for this option.

You will get a better deal out of the car dealers if you appear knowledgeable about the auto leasing industry, so read up.

’Auto Leasing Defined’

You would "lease" a car by paying for the costs by which the vehicle depreciates in value. You can calculate depreciation costs by subtracting the car’s value by the time that the lease ends, from its original value. There are cars which depreciate more than other brands. The rule of thumb is, the smaller the amount that your car depreciates, the lesser the costs to lease.

Once you decide to go for leasing over buying a vehicle, you may choose the one with the least depreciation value.

If you decide to go for this option, you need to learn about "lease term". This is the number of months that the vehicle is leased. Typically, leases last for 24, 36 or 48 months, depending on your contract.

’Leasing or buying: Which option is kinder to your pocket?’

-Automobile leasing requires you to have a good credit, so if your credit score is low, it is better to go for buying.

You may even be disapproved for a lease if your credit history is not good. Or, at the very least, you will be required to pay higher monthly dues.

-Leasing companies would need to profit from you.

They will invest capital on buying the car, then lease that car out. Just like with any loan, their money shoudl earn interest so you better consider this as well when considering the advantages of buying.

-Make sure that you get the best deal out of car leasing by comparing the monthly costs with the interest rates of your local car dealer.

By making a note and comparing both prices, you would more or less have an idea of which option to go for.

’Car Leasing Tips’

- When deciding on the model or make of the car that you will lease, choose the Japanese and European cars. These are basically the brands which have lower depreciation rates, as compared to the American vehicles.

You will find out that most luxury cars have the lowest depreciation values. Research, visit a local car dealer in your area or ask friends who are currently leasing cars. They should have some great tips to share with you on how to get the best deal out of leasing cars.

-Leasing a car may put a big dent in yur budget when it comes to car maintenance. You need to make sure that you are a "car-friendly" user when you opt to go for auto leasing.

-Definitely go for leasing if you are the type who wants to own the latest cars in the market. In the long run, leasing will be a better option for you as compared to buying the latest car model then trading in or selling the old one that you have.

-As much as possible, choose a shorter lease period. This is so that you can optimize the warranty of the vehicle.

-Finally, avoid the long-term leases, because the car’s value will decrease by the time the lease ends, and this is mostly when engine problems begin.

Residual values are often determined in-house by the largest manufacturers Others will turn to outside parties, such as Automotive Lease Guide (on the Internet) for help.

Where does the money come from?
The money to pay the manufacturer is often a bank, credit union, pension plan or automobile manufacturer’s leasing or lending subsidiary. It agrees to provide funds to pay the dealer the selling price of the auto. It is often called the money source

The Money source must then find someone to determine a residual value for every auto it proposes to buy from a manufacturer. If the market is depressed at the end of a lease and theresidual value is higher than the used car value, then huge losses result to the Money source. This is not a business for the squeamish.

Who are typical Money sources? (not necessarily current)


* American Honda Finance Corporation

* Banc One Credit Company

* BMW Financial Services, NA, Inc.

* Chase Automotive Financial Service

* Chrysler Credit Corporation

* Ford Motor Credit

* Fifth Third Bank

* General Motors Acceptance Corp.

* Huntington National Bank

* Mazda American Credit

* Mercedes-Benz Credit

* M&I Automobile Leasing

* Mitsubishi Motors Credit of America, Inc.

* Nissan Motor Acceptance Corp.

* Provident Auto Lease

* SouthTrust Bank N.A.

* Toyota Motor Credit Corp.

* Usbank

* Volkswagen Credit, Inc.

* Wells Fargo Bank

The customer (lessee) actually contracts with a Money source that may, in fact, be a savings institution in which the customer has deposited funds. Some Money-sources are employee pension funds in which the lessee is essentially borrowing his own money.

Who does the lessee really pay?
The customer leasing the auto begins by agreeing to pay the Money source a monthly payment for the term of the lease. At the end of the lease the Money source that actually owns the car, gets the car back and hopes it can be sold for at least as much as the residual value quoted to the customer in the lease, plus some incidental costs associated with the selling price. If not, the money Source loses money. For example, the Minneapolis Star Tribune reported that Chrysler lost of $400,000,000 in 2001 on end-of-lease cars that sold for less then the contracted residual values.

Who decides the interest rate on the lease?
The Money source privately decides on an interest rate it needs to return a profit to its investors or lenders. A third-party firm, such as LeaseLink (on the internet), is hired to prepare the computer displays of monthly lease payment vs. interest rate. That it displays on the participating Dealer’s computers. It displays varying financing terms and monthly lease payments and the residual value and interest rates or money factors for the brands sold by the Dealer. Included in this information is the identity of several Money sources, whose rates actually compete with the Dealer’s own manufacturer.

The Dealer’s role
The new car Dealer is simply a facilitator between the lessee and the . It has no loyalty to its manufacturer in this regard and is really the customer’s best friend by showing the customer several monthlyleasepayments and interest rates from several Money sources.

Residual values based on Money source vehicle preferences
Some Money sources choose to finance only certain types vehicles, such as Jeeps, based on historical residual resale value data and successfully having recouped the residual value in the eventual sale of the used Jeeps at the end of the lease.

At the end of the lease
When the lease is finalized, the Money source pays the sale price; a portion is used to pay the dealer’s cost and the balance is the dealer’s profit. And the happy customer drives away with a smile and a lighter wallet.

When individuals are considering buying an automobile they are often faced with the dilemma as to whether they should buy or lease the car. There are pros and cons associated with each and the following paragraphs will highlight some of the points regarding both leasing and buying so that individuals can use the information to better help them make an informed decision.

Length of Time with the Automobile

One consideration is how long you might want to keep the same vehicle. Leases usually run 2 to 3 years, depending on the lease type and company, however when one purchases a car, they most likely tend to stick with that automobile for a longer period of time. Therefore, if one is interested in changing automobiles every 2 to 3 years, then a lease transaction may be the better option. That is if you don’t mind making monthly payments and never actually buying the vehicle. If that is a problem then buying is a better option because your payments actual result in the purchase of a car.

Monthly Payments

When considering whether to lease or buy an automobile, one should consider how much they want to spend each month on automobile payments. For those who wish to spend less money each month a lease is probably better; however, if an individual can spend a little bit more on the car each month, then purchasing might be the best bet.

Building up Sale or Trade Value in the Automobile

For those individuals who wish to build up sale or trade value with an automobile, purchasing the car will help that person do so. On the contrary with a lease the individual does not build equity in the car as they do not own the car but rather lease it for a period of time. Therefore, if one is looking to build up sale or trade value with an automobile, a purchase of the car is the better route.

Drive More Than Average

When deciding between a purchase and a lease, an individual needs to determine how much they expect to drive the car on an annual basis. If the individual is going to be driving more than the average person would, a car purchase may be better as many companies that lease vehicles will charge extra money for extra mileage put on the car. On the other hand, if the individual will be driving the car an average amount of time, then a lease may work for that particular person.

The previously mentioned topics are just a few factors which an individual should consider prior to determining whether a lease or purchase is the best bet for them. When all is said and done, deciding whether to purchase or lease a car is a personal decision which needs to be left up to the individual who will be driving the automobile.

You, Mr. Landlord are pleased to find qualified tenants for your rental house. The man and woman sign a one-year lease on Tuesday.

On Thursday the male tenant contacts you and says they have changed their minds because his girlfriend thinks she sees "dead people" in the bathroom.

He expects you to cancel the lease!

What do you do, hire an exorcist?

No, you smile and softly explain... "Listen Bub, that was a legal contract you signed. It binds both of us to everything printed on those sheets of paper.... the laws says so, that's who!

And that's true... both parties must agree to break a legal contract... it can't be done unilaterally (usually). In this case the contract is the well prepared, solid gold lease.

Is your reluctant tenant on the hook for an entire year's worth of monthly lease payments?

It brings a tear to the eye of we hard boiled landlords... but he probably is not obligated to pay rent for the entire year.

Courts have ruled that the landlord has to make a good-faith effort to find a new tenant for the unit as soon as possible.

As soon as one is found the original crybaby is released from the contract.

The cost of renting to the new tenant can be deducted from the security deposit you collected from Mr. Crybaby. That includes advertising and a copy of The Grinch Who Stole Christmas you give him as a go-away gift.

When you see the phrase "joint and several" in a legal document or contract it means that that the parties on one side of the agreement are responsible individually and collectively for the terms of the agreement.

Example: In the case of two tenants signing a lease agreement, "joint" means they are jointly responsible for the rent.

"Several" means that their joint relationship is severed.

In a contract it indicates that they have agreed that they are also responsible individually for the rent. If one does not pay his/her share of the rent the other is responsible for the entire amount.

Here's an example of a landlord who had a "joint and several" lease with the added provision that tenants must pay rent with a check, money order or cashier's check in the full amount every month.

Landlord allowed the two roommates to pay half the rent each month with two separate checks. Bad policy.

It not only creates accounting problems... but if one tenant pays on time and the other is late how do you handle the late penalty? And...

If you accept payment from one tenant and the other tenant fails to pay have you risked having accepted a partial rent payment and then not be able to evict?

Here's the good news. If you have in your lease a "non-waiver" provision it indicates that even if you allowed lease violations in the past you can at any time demand that tenants comply with the terms of the lease.

If the tenants continue to pay with two separate checks you can return the checks and give "notice for failure to pay rent".

If they then fail to provide you with a single check for the full amount of the rent you can file a forcible detainer action (eviction).

What if tenant #1 pleads that tenant #2 has moved from the property and tenant #1 should only be required to pay their own half of the rent?

Show them "joint and several" in your lease agreement and explain that tenant #1 is now responsible for the entire amount of rent.

Explain that tenant #1 can seek recovery of the other half from tenant #2 in small claims court.

If you rent property to more than one tenant be sure your lease has "joint and several" and "non-waiver" clauses.

Carefully explain each to every new tenant.

Most great generals know how to design winning battle plans. They also know how to use their resources to gain advantages over the enemy. For these military leaders, getting enough tanks, aircraft, ships and armaments into the hands of the right personnel can spell military victory or defeat.

In the business arena, gaining access to certain resources and getting them into able hands can also determine success. Many successful business leaders have discovered that equipment leasing can make a significant difference when competing in the marketplace. In fact, equipment leasing has become a competitive weapon for business managers who understand how and when to use this helpful financing tool.

Here are some ways savvy business owners and managers use equipment leasing to gain advantage over their competitors:

Developing a Financing War Chest

Equipment leasing allows companies to finance more activities to compete effectively. It supplements other forms of financing, such as equity capital, bank debt, trade credit and mortgage financing. Astute business managers understand that access to a variety of useful financing affords them certain options and gives them an advantage over competitors with limited financing.

Maintaining State-of-the-Art Technology

Being able to acquire and use state-of-the-art equipment and software can give many companies a noticeable competitive advantage. This advantage can be particularly significant in research, product development, marketing and operations. By using equipment leasing, companies are able to better manage technology turnover. Many managers use operating leases to acquire state-of-the-art equipment for fixed time periods. At lease end, they are then able to rid themselves of obsolete equipment by returning the equipment to the lessors.

Stretching Equity Capital

Equity capital is often the most flexible form of business funding. It allows companies to undertake high-impact growth activities like adding key personnel, conducting research and development, and expanding marketing programs. Equipment leasing is dedicated financing. It permits companies to add equipment efficiently. In this context, equipment leasing helps to leverage and stretch a company’s equity capital by freeing it up for other uses. When used properly, the overall impact of equipment leasing is to leverage equity returns. High equity returns attract investors and permit companies to source more equity capital in the future.

Equipping Talented People to Engage In Battle

Using leasing to get the best software and hardware into the hands of talented personnel is a competitive advantage. Companies that quickly get equipment into the hands of talented workers at every level usually compete more effectively in the marketplace.

Accelerating Company Growth

Equipment leasing facilitates faster company growth. It allows companies to add infrastructure faster by bringing in equipment earlier and paying over time. In this regard, leasing affords a competitive advantage over companies that wait to purchase equipment outright.

Defending Working Capital

Astute business managers have discovered how to keep pressure off of their companies’ working capital. Compared to outright purchase, equipment leasing has a low impact on working capital. Leasing allows companies to avoid large upfront outlays while spreading equipment acquisition costs over an extended period. Using equipment leasing to manage working capital permits companies to pay bills on time and to operate smoothly. They are then able to gain a competitive advantage over companies that have not mastered this technique.

Maximizing Tax Benefits

Sophisticated companies are able to maximize tax benefits by carefully using equipment lease structures. By entering into operating leases and being able to fully deduct lease payments, companies that can’t otherwise use depreciation write-offs can still realize tax benefits. Capital leases allow companies that can use depreciation write-offs to take advantage of this feature. Tax benefits further reduce the cost of acquiring equipment. These benefits can often make equipment leasing a more efficient means of acquiring equipment compared to other methods.

Turbo-Charging Equipment Sales

For companies selling equipment, offering equipment leasing to customers at the point of sale can help establish a significant competitive advantage. Convenient equipment financing at the point of sale can eliminate a major selling challenge— the customer’s lack of financing for the purchase. Equipment sellers offering leasing give their customers a means of acquiring the equipment and realizing the full benefits of equipment leasing. This sales-financing strategy represents a clear advantage over sellers who let customers fend for themselves.

Savvy business owners and managers understand the benefits of equipment leasing. They also understand how to exploit leasing for competitive advantage. The challenge for them is to optimize leasing to realize the biggest gains and to compete more effectively. It is no wonder that equipment leasing in the U.S. has grown to over $ 240 billion annually and accounts for more than 30% of equipment acquisitions. Consider equipment leasing when designing your battle plans. Don’t allow your competitors to use leasing against you to win the battle in your market.

George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”). He is responsible for overseeing the company's marketing and financing efforts. One of the co-founders of LTI, Mr. Parker has been involved in secured lending and equipment financing for over twenty years. Mr. Parker is an industry leader, frequent panelist and author of several articles pertaining to equipment financing.

Every real estate investor dealing in rental homes has done his own clean-up and fix-up, at least in the early years. Landlords also become very skilled at managing tenants after being burned a few times.

You learn the tricks of the trade and how to get the best results for the least cost. Maybe a few of these tips will be new to you.

You can give kitchen cabinets new life with a liberal application of Liquid Gold.

Everyone has at least one chip or scratch in the porcelain on their refrigerator, bathtub, stove (except high heat surfaces), sink, washer or dryer. The solution? Touch up that nick with a tough porcelain glaze called "Porcelain Chip Repair". Just dab it on with the built in brush and it hardens in 24 hours. If your hardware store does not carry it you can find it with a Google search.

You can quickly clean black scuff marks from vinyl floor covering with a squirt of WD 40 lubricant and a rub with a clean cloth.

Put a shiny new strainer in the sink drain. Then install new handles and drawer pulls and you often have a minor kitchen miracle.

Get rid of globs of sticky adhesive residue with Goo Gone.

When tenants move out they seldom do a really good cleaning job on the oven... or the dishwasher.

I'm sure you have discovered the many effective oven cleaners, but how about that gunk caked onto the inside of the dishwasher?

Try a product called "Dishwasher Magic"... found in many markets and some hardware stores.

The label reads "Removes Lime Scale, Rust & Buildup. Disinfectant".

You just remove the cap... place the blue, plastic bottle upside down inside the silverware basket and turn the machine on. You might have to use two bottles if your first look into the washer causes you to run screaming from the house.

When vinyl flooring is ready to be replaced use commercial grade floor tile instead. It lasts almost forever and it is cheap to replace a damaged tile now and then.

Have you ever received an unsigned rent check? Here's a method that often allows you to deposit that check.

Write or type the word "over" on the line where the signature would normally appear. On the back of the check type "lack of signature guaranteed". Add your company's name, and your name and title. Then you sign it on the back.

This guarantees your bank that you will take back the check as a charge against your account if is isn't honored. Many banks will then process the check and remit the funds. This saves you the trouble of returning the check to your renter for a signature.

Spot those bad checks with this tips. 90% of bad checks are numbered 101 to 150, indicating a new account.

Legitimate checks have at least one perforated edge. Most forgeries are cutouts of copy machine created fakes.

Checks dated more than six months ago are usually not cashable, no matter how much money the issuer has in his/her account.

If the amounts written on a check in words is different from he amount written in numbers, the bank will pay the sum shown in words.

If you receive a check with the date missing, it's legal to fill in a date reasonably close to the date you receive it. To predate or postdate the check by several weeks is a criminal act... don't do it.

Remember, landlording is not for sissies. I hope these tips will save you a few dollars and a barrel full of aggravation.

Many lessees enter into lease transactions that they believe are competitive based on faulty rate assumptions. Most lease rate calculations don’t take interim rent into consideration. Interim rent is the trap door that allows lessors to receive increases in lease pricing. It is unpredictable and the amount can be arbitrary. By understanding how interim rent can impact your lease, you can close this trap door and enjoy the lease pricing you thought you negotiated.

What is Interim Rent?

Interim rent, also known as stub rent, is the rent that a lessor charges a lessee from the time the lessee accepts the leased equipment until the official lease start date. Most leases start on the first day of the month following equipment acceptance. In a lease with monthly payments, interim rent is calculated as follows: multiply the number of days in the interim period by the monthly payment amount and divide the product by 30. In the extreme case, interim rent can add almost a full periodic payment to the lease. In these cases it lifts the effective lease rate dramatically.

The impact of interim rent in the extreme case can be seen in the following example: assume you accept a 36-month lease for equipment that cost $100,000. Also assume that the monthly payment is $3,113 per month, paid on the first of each month. Assume that the lease allows you to acquire ownership of the equipment for $1 at lease end. Therefore, your effective lease rate is 8%.

Now assume that the interim lease period is 29 days. For simplicity sake, we will round the period to a full month and add it to the lease. The new effective rate for 37 payments of $3,113 is 9.7%. The new rate is more than 20% higher than the rate originally quoted by the lessor. This higher rate represents a trap door in your lease that produces more cost for you and a higher return for the lessor.

The Purpose of Interim Rent

Many lessors justify interim rent as compensation for obligating themselves to pay equipment vendors on behalf of lessees in connection with lease transactions. As further justification, these lessors point out that lessees have use of the equipment during the interim period.

Problems with Interim Rent

There are two flaws in the reasoning offered by these lessors. First, interim rent is exorbitant since it is based upon the periodic lease payment instead of the lessee’s borrowing rate. Since each lease payment has a return-of-capital component, the periodic payment is not an appropriate standard to use for interim rent calculations. A calculation based on the lessee’s borrowing rate is probably a fairer measure.

The second flaw in this reasoning is that lessors often have not paid for the equipment during the interim period. They may not have incurred any additional cost during this period. The net result is that lessees incur significant increases in their effective lease rates while lessors are able to sneak extra yield through a trap door in the lease. Interim rent can turn a competitive lease into a relatively high rate transaction.

Solutions

Savvy lessees look for ways to limit or eliminate interim rent. They try to ensure that they receive the lease deal for which they bargained. Here are five strategies to blunt the impact of interim rent:

1. Eliminate interim rent. Try to negotiate a lease that excludes interim rent. One way to eliminate interim rent is to have the interim period count as a partial payment period. Another partial payment period can be added at the end of the lease, such that the two periods constitute one full payment period.

2. Pay interest instead of interim rent. Instead of paying interim rent based upon the periodic payment, base the interim payment upon the implicit transaction rate or your borrowing rate. This method will eliminate the return-of-capital component that plagues most interim rent calculations.

3. Limit or fix the amount of interim rent. If you cannot eliminate interim rent, you can try to negotiate a limit on it. You can offer the lessor a fixed interim period, regardless of the equipment acceptance date.

4. Manage equipment deliveries. Another strategy is to coordinate with the equipment vendor to schedule equipment delivery and acceptance towards the end of the month. End-of-the-month acceptances would ensure a reduction in interim rent since the interim periods would be short.

5. Sale-leaseback at month end. As a last strategy, if allowed by the lessor, you could schedule a sale-leaseback of newly acquired equipment at month end. This strategy would also guarantee a short interim period.

It is important to understand the impact of interim rent on your lease. Rather than assume that you will receive the lease rate quoted, review the lease carefully. If your lease includes interim rent, plan to negotiate this feature. Use one of the strategies above to reduce this potentially costly aspect of your lease. Even if you cannot eliminate the interim-rent trap door, you may be able to seal it.

Car leasing is extremely popular because it provides an attractive method of driving an automobile that you might not otherwise afford. It allows you to make lower monthly payments than with traditional car purchase loans. About one out of every four vehicles driven by automotive consumers in the United States are leased.

But leasing is not for everyone. You should take the time to learn about leasing, and be sure it's right for you before making a decision.

What is Leasing

While a purchase loan is a method of financing the ownership of a vehicle, leasing is a method of financing the use of a vehicle for a specified time period. As much as it sounds like renting, leasing is different.

A lease is a formal contract with a leasing provider that allows you to drive the provider's car and only pay for the portion of the vehicle's value that you use up during the time you're driving it. You agree to pay for insurance, licenses, taxes, repairs, and maintenance.

The leasing provider retains ownership and title to the vehicle throughout the lease. At lease-end you can simply return your vehicle to the provider, or you may purchase the vehicle and continue driving it.

Benefits of Leasing

Leasing offers the following benefits when compared to purchase loans:

- Lower monthly payments

- More car, more often

- Minimum or no down payment

- Smaller sales tax bite in most states

- No used-car headaches at end

Who Provides Leases

Contrary to popular belief, car dealers do not lease cars. Banks, credit unions, and financial divisions of major car manufacturers lease cars. Dealers simply act as agents of a leasing provider, such as Ford Motor Credit or GMAC, to arrange the lease on your behalf. Dealers typically work with more than one provider.

Once you've picked out the car you want, the dealer sells it to the leasing provider, who leases it you. It's not necessary, nor is it always the best choice, to use the "captive" leasing company chosen for you by the dealer.

You can arrange for lease financing yourself with an independent leasing company, bank, or credit union after you've negotiated price with a dealer. Some lease providers even work with dealers to acquire vehicles for you at reduced prices, saving you money and the stress of negotiation.

Who Should Lease

Leasing makes sense for many automotive consumers, but not for others. Here's how to determine if you are a good leasing candidate:

- Are you willing to trade ownership of your vehicle for lower monthly payments? Leasing is a great way to lower your payments or drive a better car for your money, but you must be comfortable with having no ownership of your vehicle, unless you purchase at lease-end.

- Can you stick with your lease until the end? Leases require you to commit to driving your vehicle for a specific number of months — typically 24, 36, 48, or 60 months. If you feel your lifestyle, your finances, or simply your taste in cars may change significantly in future months, you may not be a good lease candidate. To end a lease early is usually troublesome and costly.

- Do you drive more than 15,000 miles annually? If your answer is yes, you may not be a good candidate because lease contracts are typically written with an annual mileage limit, typically 10,000-15,000 miles. If you drive more that the specified number of miles you will pay a fee for every mile over the limit.

- Do you typically keep your vehicles in good condition and change vehicles every few years? If so, you may be right for leasing. Lease providers require you to keep their vehicle maintained and repaired, with no more than normal wear and tear. If you don't, you'll be charged at the end of your lease.

- How is your credit rating? If you have a history of paying your bills on time and don't have excessive debt, you are a good lease candidate. Otherwise, you may be required to make a large down payment and pay higher finance charges or, worse, be refused the opportunity to lease.

Shopping for a Lease

The most important element of a good lease deal is the price of the vehicle. Regardless of whether you buy or lease, you should always get the best possible price first. When leasing, this price becomes the capital cost, or "cap cost." Prior loan balances and fees may be added. Rebates, discounts, down payments, and trade-in credit are subtracted. The lower the capital cost, the lower your monthly payment. This is the only element of a lease deal that a dealer directly controls.

The remaining elements of a lease — money factor, residual value, and related fees — are controlled by the lease provider and are not negotiable.

Since a lease is simply another form of financing, interest charges apply. These interest charges are known as "money factor." Money factor is expressed as a very small number such as .00375, which is equivalent to 9% annual interest rate. Again, a small money factor results in lower monthly lease payments.

Residual value is an estimate of a vehicle's wholesale value at the end of a lease term. The longer the lease, the smaller the residual value. Your lease payment is primarily determined by the difference between cap cost and residual value, which is the amount that the value of the vehicle depreciates during the lease. The higher the residual value, the lower the lease cost.

Sales tax may also be included in your monthly payment, depending on the state you live in.

You can easily calculate car lease payments, once you know the key factors, using this Lease Calculator by LeaseGuide.com.

Leasing Fees

There may be certain fees associated with your lease. The fees that lease providers charge vary both in kind and amount. One of the most common is an "acquisition fee", which is an administrative charge for the work in initiating a lease. Another common fee is a disposition fee, usually charged at the end of your lease when you return your vehicle.

You may also be charged at the end of your lease for excessive mileage, damages, and unusual wear-and-tear.

At the beginning of your lease, you will be asked to pay the first month's payment, a security deposit, a down payment, if any, and applicable miscellaneous fees associated with licensing a vehicle in your state. You will also be asked to show proof of insurance.

Driving Your Leased Vehicle

Your vehicle must be driven and cared for according to the terms specified in your lease contract. Generally, this means keeping the vehicle in good condition, using it for lawful purposes, maintaining insurance, and allowing it to be driven only by licensed drivers.

Al Hearn is founder, owner, and operator of LeaseGuide.com, a source of information and advice for automotive consumers who are interested in car leasing. LeaseGuide.com has provided help to thousands of visitors since 1995.

Rental real estate is a solid way to make money. I'm particularly fond of residential properties, because people have to live somewhere. But it's not for the faint of heart.

I've seen it more than once: the first mortgage payment is due and the contractor isn't done with the renovations yet, or three tenants are moving out in the same month, or the partner (the one with the money) is walking away and leaving you to handle it all. It's very scary, and this is when the worst mistakes a landlord can make will happen.

When you're up all night trying to figure out how your dreams became a big financial burden is not the time to be making decisions that could affect your livelihood and quality of life. Real estate is an investment, and treating it like a business is the only option. If you're in a bad situation, you might rush the contractor and force him to cut corners that will bite you in the ass later. You might decide on a marginal prospect and get a tenant that pays for one month but lives in your investment for seven more as you try to get her out. You may consider selling the building in a down market to get out from under, and take a tremendous loss that will set you back for years!

If this sounds like a place you’re in now, take a step back. Your situation may be bad, but acting rashly is bound to make it worse. Desperation will only dig you a bigger hole. There are banks, relatives, friends and even the Small Business Administration that might be able to help you with financing to get through a rough spot and to keep you from making bad decisions out of fear. Like it or not, short time challenges are going to crop up and if you don’t have the iron constitution to stay the course, you’re going to need a trusted friend or advisor to help you keep things in perspective.

Let’s take tenant selection as an example. The first property I owned had two units, and one of my tenants moved out at about the same time my job required me to spend a considerable amount of time out-of-town. I was advertising the vacancy, taking the calls on my cell phone, and driving a hundred and twenty-five miles each way whenever I had to show the place. The stress of trying to fill the vacancy at a distance was high, and the mortgage payment that I could no longer make just added to the knot in my gut. Three weeks into my search I found someone who had a decent job and passable credit. Best of all, she was able to move in right away. Without more than a cursory glance at her references (and no follow-up questions about how she had come to need housing so desperately) I signed a three-year lease with her.

A three-month lease would have been a better choice, because that’s all I got out of her. The excuses were varied, and the apologies sincere, but the money was late, lacking, and finally not at all. Since tenants don’t care to call up landlords when they owe them money, I also didn’t find out about the sewage backup in the basement until it was five feet deep. All in all, by giving into the anxiety of having a vacant apartment, I lost over seven thousand dollars in repairs, court costs, and unpaid rent. And that sort of tenant is almost worthless to file a judgment against, since collection is all but impossible. The exact circumstances will vary, but if you recognize the factors that fed my impatience, you may be able to avoid my trial by fire.

If you're not in a terrible situation, keep out of it! Plan ahead. Do you have an emergency cushion of at least three, but preferable six months of expenses? Do you know someone (friend, relative, property manager) who could take on new or add to existing responsibilities to keep things moving should you become laid up by illness or injury, or called away due to some life circumstance? Are your important real estate papers organized, with a list of them in the hands of your attorney, your spouse, and at least one trusted friend or associate? Is your will updated to include all of your properties, and all of your heirs? And perhaps most important: are you trying to go it alone, or do you have someone you can bounce ideas off of, someone whose input and insight you value and trust? Careful planning now will enable you to be patient later, when it really counts. Don't let fear deprive you of reason.

Recently there was an article in the Houston Business Journal of the anchor store in many shopping centers through out Houston pulling out. Kmart, took out some stores, so did three other big box stores and a few consumer electronics places and larger furniture stores, now Albertson’s has left. Who gets hurt? The franchise stores who pay a high price and lease to be in those centers along side a big anchor tenant. Think about it, Albertson’s with their large super stores with Banks in side, Starbucks coffee, bakery, mini eating area, film developing and pharmacy. Soon in Western States where property and land permit, on site carwashes too and also some already have fuel for your car, when you are a club card member. What if you had an MBE, Quiznos, Subway, Dry Cleaning, Travel Agency (as if things are not bad enough already), GNC, Hobby Town, Cost Cutters, etc.

If your anchor tenant moves out and traffic dies in the shopping center you are screwed. Right now it is tough on some small businesses that are not serviced based and mobile, but imagine the problems when the mall dies for no reason, due to an accounting glitch or cost cuts by some larger corporation which is your anchor tenant. And do not expect anyone to care, because Albertson’s is based in Boise ID and CA. Kmart is Midwest, and this is not like the Kreisge’s 5 and Dime in the old days, today it all about quarterly profits, shareholders equity, next months P and L and man they do not give one darn about the burned area left behind. Other large retailers are based in the middle of no where, like Wal-Mart in Bentonville AR, and they often move to better locations right out side of town in a growing area and close the other stores. Are you sure you want to sign a ten-year lease for space? Not me. That might be the longest and hardest ten years of your life.

You might want to think about the risks before you sign away ten years worth of lease payments to a shopping center management company. You might want to consider a reduction if the anchor tenant suddenly pulls out or an escape clause at your choosing. Think about it, others didn’t and they are still paying.

Leasing is a perfectly viable and legitimate way to finance a new car. Although leasing offers attractive benefits, it is somewhat more complex than buying with a loan. This means there can be pitfalls if a decision to lease is made for the wrong reasons.

Therefore, a comparison of leasing versus buying is always a useful exercise when considering automobile financing. One option will generally be decidedly better than the other in any specific situation.

Let's first look at the financial side of the analysis.

Leasing always results in lower monthly payments than a conventional automobile loan, assuming the same vehicle, same down payment, same interest rate, and same term. Lease payments will be as much as 60% less than loan payments. Therefore, if monthly payments are your most important consideration, leasing is a good financial option (although there may be other reasons you shouldn't lease -- see below).

However, in the long term, leasing actually costs more than buying assuming that the buyer keeps his/her vehicle for a long time after the loan has been paid. It doesn't take rocket science to figure out that leasing a new car every two or three years costs more than buying one car and keeping it until it falls apart. So if long-term cost is your highest priority, then leasing is not for you.

Even if leasing makes financial sense to you, there may be reasons that it won't work for you.

If you drive more than about 15,000 miles a year, leasing is not a good option for you. The reason is that leasing is designed for people who typically drive only average miles and don't want to pay for the entire value of a vehicle. They only pay for the relatively small part of the value of the vehicle that they actually use.

Leasing may not be a good option, too, if you don't typically maintain your vehicles well, carry only minimum insurance, like to modify your vehicles, or prefer the idea of ownership.

Furthermore, if you expect lifestyle changes (marriage, divorce, job change) that might cause you to want to end your lease before its normal end date, don't lease. Leases are designed in a way that makes it both troublesome and expensive to terminate early.

Working with tenants can be an amazing experience. (Owners and contractors are equally astounding, but those are subjects for another day.) It seems I get my most memorable anecdotes over the phone. Here are a few of the ones I’ve culled from my blog and experience and put together for your reading amazement.

First was a late-night phone call I took:

*beeeep*
*beeeep*
*beeeep*

"Hello?"

*beeeep*
*beeeep*
*beeeep*

"Hi, my smoke alarm keeps going off."

*beeeep*
*beeeep*
*beeeep*

"Is there a fire?"

*beeeep*
*beeeep*
*beeeep*

"No. It does this every time I open the oven."

*beeeep*
*beeeep*
*beeeep*

"Well have you cleaned the oven?"

*beeeep*
*beeeep*
*beeeep*

"I've opened the windows and door but it won't stop."

*beeeep*
*beeeep*
*beeeep*

"Why don't you wave the smoke away with a magazine?"

*beeeep*
*beeeep*
*beeeep*

"Okay, I've got the fan in the kitchen now. What did you say about the oven?"

*beeeep*
*beeeep*
*beeeep*

"Have you cleaned it? There's a product you can buy called EZ-Off. It's, well, pretty easy to use."

*beeeep*
*beeeep*
*beeeep*

"Really? Okay, I guess I'll try that."

*beeeep*
*beeeep*
*beeeep*

"I think it may help."

"Thanks. Have a good night."

"Good night."

You'll notice I didn't suggest disconnecting the battery.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The next was a call in the late morning.

"Landlord for Hire."

"Terence, I have a really bad problem."

"What’s wrong?"

"There’s a bee between the door and the storm door, and I can’t get out."

"Well, I wouldn’t swat it. It’s probably as scared as you are."

"Okay. Can you come over and open the door for me?"

"Well, I’m a half-hour drive from there. Is there someone closer you could call?"

"Not really."

"How about this: open the inside door and the storm door very quickly, and then close the inside door. You’ll bring the bee out with you and it will fly away. You’ll be doing it a favor."

"What if it gets inside?"

"Be quick and it won’t – I have faith in you. Call me if you’re still stuck after you try it."

I didn’t get a call back.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Springtime brought this little gem:

"Terence, it's really hot in here? Why is the heat still on?"

"Have you turned it from "Heat" to "Cold?"

"Um, no . . . "

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The last I have right now was a simple voice mail, of chilling consequences:

"Mr. Terence, I wanted to call to let you know there’s a problem with the drain in the basement. Thank you."

"A problem" was three feet of water and human waste in the basement. The tenant was late on her rent and, according to the plumber, must have endured the stench for a week or more before she screwed up the courage to call me. That was a rental I owned myself, and that tenant taught me a lot of the lessons I use to guide my property management philosophy, including not selecting tenants out of fear, not accepting excuses for late rent, and always assuming that your tenants are better at understatement than you are!

Leasing is a perfectly viable and legitimate way to finance a new car. Although leasing offers attractive benefits, it is somewhat more complex than buying with a loan. This means there can be pitfalls if a decision to lease is made for the wrong reasons.

Therefore, a comparison of leasing versus buying is always a useful exercise when considering automobile financing. One option will generally be decidedly better than the other in any specific situation.

Let's first look at the financial side of the analysis.

Leasing always results in lower monthly payments than a conventional automobile loan, assuming the same vehicle, same down payment, same interest rate, and same term. Lease payments will be as much as 60% less than loan payments. Therefore, if monthly payments are your most important consideration, leasing is a good financial option (although there may be other reasons you shouldn't lease -- see below).

However, in the long term, leasing actually costs more than buying assuming that the buyer keeps his/her vehicle for a long time after the loan has been paid. It doesn't take rocket science to figure out that leasing a new car every two or three years costs more than buying one car and keeping it until it falls apart. So if long-term cost is your highest priority, then leasing is not for you.

Even if leasing makes financial sense to you, there may be reasons that it won't work for you.

If you drive more than about 15,000 miles a year, leasing is not a good option for you. The reason is that leasing is designed for people who typically drive only average miles and don't want to pay for the entire value of a vehicle. They only pay for the relatively small part of the value of the vehicle that they actually use.

Leasing may not be a good option, too, if you don't typically maintain your vehicles well, carry only minimum insurance, like to modify your vehicles, or prefer the idea of ownership.

Furthermore, if you expect lifestyle changes (marriage, divorce, job change) that might cause you to want to end your lease before its normal end date, don't lease. Leases are designed in a way that makes it both troublesome and expensive to terminate early.

So you’ve picked up your first (or third, or tenth) income property, and it’s a real fixer-upper. You’ve got a great team of contractors, and you know what they need to do and how much time and money it’s going to cost to make it happen. The renovations are going to put you in the red and you’re going to need to get a tenant in there ASAP. So as soon as you have the plan worked out with the contractors you run an ad and start showing the place, right? Not if you don’t want to throw away money, you don’t!

Prospective tenants lack imagination, and this is never so evident as when you’re showing them a place that is missing walls, is covered in construction dust, badly needs a paint job, has a gutted bathroom . . . you get the idea? “Curb appeal” is a concept that refers to the attractiveness of the outside of a house. Equally important is what I call “Foyer Appeal,” which is how the inside looks when you’re standing in the front door. If your curb appeal is poor (which is likely while you’re renovating, since your money is best spent on the inside problems first), half of your appointments will be no-shows because they assume the outside is representative of the inside. On the flip side, poor foyer appeal will turn off the ones that actually walk in the door. No matter how clearly you explain what work you’ve got planned, the best you’re going to get is, “I’d like to see it again when it’s finished,” and you’ll be lucky if a third of them offer that level of commitment.

Let me put it another way: if you’re savvy enough to know the importance of online marketing, you also know that pictures are the most powerful part of your internet ad campaign. Are you going to take pictures of a construction zone, or a place that looks like a tornado hit it, and expect a high response rate? Or maybe you’ll just skip the pictures entirely, so that ninety percent of your potential tenants just scroll on by without a second glance? Having good pictures could cut your advertising time from two or three months to under a week.

If you’re putting money into a property, it stands to reason that you’re going to want to recoup that investment as quickly as possible. Showing an apartment that isn’t ready for a resident wastes your time and advertising dollars, could permanently turn off potential tenants, and might give you an unearned reputation for low-quality housing. Start your marketing when the punch list is cleared, and your prospective tenants will be far more likely to sign on the dotted line.

How do you fix a price point for an apartment? Take a guess? Figure it based on your carrying costs? Check comps and do a market analysis? Charge whatever the market will bear? If you’re looking to place quality tenants, less is sometimes more.

We all want to make money with income property; the more the better! When you’re looking for a new tenant, however, don’t assume that you’re going to make more money by charging more. If your property is priced high for what you’re offering, you won’t get a lot of calls, and the ones you do get will be either uneducated about your local rental market, desperate, unscrupulous, or a combination of any of these.

What to do? Perform your due diligence: check the advertisements for similar apartments, make appointments to look at them, talk to real estate agents and others in the business, and get a clear idea of how much others are getting – not just charging – for similar rentals. Then, advertise yours to undersell the competition.

Why undersell? It’s a basic rule of economics that price is a great way to compete. If you offer a good product for slightly lower, you’ll get a lot of calls, which means you’ll be able to screen more applicants and get the best possible tenant into the unit. Once you have a quality tenant that likes the place, you’re golden – you can make increases annually that put your unit in line with others. Tenants who don’t have slumlords for landlords won’t go to the trouble of searching for a cheaper place because of the costs associated with moving. Your first-year discount got the best tenant in the door, and providing quality housing will keep them there.

In conclusion, don’t let your greed cloud your judgment when you’re trying to find the right tenant.