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Tuesday, May 24, 2016

Home in Bulgaria – A look at Bulgaria’s Real Estate Tax Liability

by: surrinder Ahitan

Many people who are considering the possibility of buying one or another home in Bulgaria worry about what they might end up paying in taxes on real estate that
they might end up owing. In years gone by, one of the reasons that only a fraction of the population was able to take advantage houses in Bulgaria centered on the high taxes that often times were associated with home ownership
in that country.

With the changes in government that have occurred in Bulgaria since the 1990s, significant land reform programs have been put in place throughout the country. The pace of these reforms quickened when it was determined that Bulgaria would be admitted into the European Union in 2007. The net result has been that property taxes no longer need be considered an impediment to the ownership of homes in Bulgaria.

In point of fact, at the present time, Bulgaria boosts one of the lowest real estate tax schemes of any of the countries in Europe -- including those nations that already enjoy full membership status in the EU. It is important to keep in mind that prior laws that imposed a heavy tax burden on foreign nationals who purchased homes in Bulgaria have been eliminated in their entirety.

In addition to low real estate taxes, the government in Bulgaria has enacted other pieces of legislation that are designed to encourage private home ownership amongst the people of Bulgaria, further spurring the demand for houses for sale in Bulgaria. The government of Bulgaria is committed to furthering and
advancing real estate investment generally and home ownership specifically throughout the country.

To that end, the government has lessened the tax burden on those who own real estate and has modernized the banking system to make real estate loans far more
widely available to people interested in property ownership in the country, including the buying and owning homes in Bulgaria.

About the author:
Surrinder Ahitan's website Bulgarian-Property-Advice.com provides detailed information and advice on the most lucrative areas to invest in Bulgaria. You will learn how to get around, get a flavor of the language, history, culture and more.

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Home Based Franchising

by: Shawn Price

Copyright 2010 Shawn Price

Is Home Based Franchising for you?

Do you desire Home Business Ownership but cringe at the thought of starting from scratch?

Possibly a Home based Franchise is your answer.

A Franchise is a business in which "... the franchisor, the owner and developer of the franchise system licenses [you] franchisees to use trademarks, service marks, logos, or advertising owned or developed by the franchisor." (International Franchising Association, Franchising basics).

With some franchise programs, the business operates using the Franchisor's brand name only.

Other programs are less restrictive and allow for the usage of both a trade name in addition to the franchisor's brand name.

Common to all franchise programs, the franchisee[ you] is responsible to pay the franchisor, advertising fees, initial fees, service fees, and or royalty fees.

You are responsible for payment whether your business is profitable or not.

Additionally, many franchisor's provide educational programs to franchisees before the inception of the business.

Often times, they've done demographic studies and other studies to ensure that you have greater odds of returning a profit.

Major Franchise Types

• Unit Franchising

Is the most simple type of franchise in which the Franchisor grants the franchisee the right to operate a single operation at a specified location or within a particular territory.

• Area Development Franchising

In accordance with a "development schedule", the franchisee agrees to establish a predetermined number of "unit franchises" within a particular territory.

• Subfranchising/Master franchizing

Is quite similar to Area Development Franchising with the major difference being that the franchisor grants the subfranchisor the option of opening the unit franchises herself or selling the the franchises to third parties. (Common with International franchising)

• Affiliate Franchising

This type of set up is typically used by an owner of an established business who decides to join/affiliate with a franchised chain.

This allows for the benefit of the franchises brand. This is common with many real estate.

• NonTraditional

This type of set up is customized between the franchisor and the franchisee.

Franchises are not the same as Dealerships and distributorships

A dealership or distributorship differs from a franchise in that there is no FEE involved. Dealers purchase products usually from the manufacturer at wholesale prices.

Note however, that a dealership can become a Franchise IF a FEE is paid to the franchisor AND the distributor is dependent upon the franchisor's pay structure.

Considerations when buying a franchise

• There's a benefit to purchasing a franchise that is well known

• Will the franchisor provide ongoing education and support?

• Were demographic studies performed?

• How many of the franchises have closed operation? Why?

• Have you STUDIED the franchiser's Comprehensive Disclosure Statement? It's required by Law that prospective Franchisee's are provided Comprehensive Disclosure, a copy of the franchisor's Standard Franchise Agreement, Audited statements, a list of the names of all of the Franchisees, as well as a copy of all documents that require the franchisees' signing.

By law, each of the above must be provided at least 2 weeks prior to purchase date.

• I've heard the saying, "if you buy a McDonald's, be prepared to eat burger's for breakfast lunch and dinner." In other words, your business requires commitment.

Additional Sources of information

•Success Magazine

•International Franchise Association www.franchise.org

•Franchise Sales Press *Get this magazine since it is known for its focus on franchise opportunities. Further, they perform regular interviews with both franchisees as well as with franchisors.

•SBA Small Business Association

•Brokerage firms and analysts Since stock information on A public company is useful.

•Franchise Lawyer •Federal Trade Commission Public Reference Branch

•UFOC "Uniform Franchise Offering circular -- the material that is provided by law, by the franchisor to the qualified franchisee. This is likely the most telling of all information gathered.

•Attorney General's Office

•BBB located in the city of the Franchisor's headquarters.

•Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor.

•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.

Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely…

franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.

There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up.

Be wise and ensure that you conduct sufficient research prior to committment.

If you’ll need financial backing, then you will need to create a business plan. There’s a handy Business Plan workbook available at our site.

Bridging the Gap between Opportunity and Success, OwnABizToday.com

About the author:
Due to her terminally ill, physically and mentally handicapped child, Shawn was FORCED out of the "job market" and FORCED into "self employment" ...After experiencing a multitude of financial difficulties. Because of her life's experiences, Shawn understands that it's impossible to predict future circumstances and thus it's terribly important that people...particularly parents, develop financial security. Consequently, leading others toward business ownership has become a passion for Shawn. Presently, Shawn is the Author of OwnABizToday's, Ezine, which presents New Home business Start up's and Small Business Resources each week. To receive our weekly Ezine, send a blank email to: subscribe@ownabiztoday.com RSS: http://www.ownabiztoday.com/ownabiztoday.xml Bridging the GAP between Opportunity and Success, OwnABizToday (http://www.ownabiztoday.com )

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History of Infomercials -

by: Richard Romando

It all began in the 1980’s. Ronald Regan was president and one of the many controversial things he did in that office was to deregulate the TV industry. Why did he do it? Well, as a conservative Republican he lived and breathed by the “free market rule,” which stated that the government didn’t belong in business, and businesses should live and die by the success or failure of their own practices and market forces.

At the same time, cable TV was just starting its expansion into the American television marketplace, and that opened up a huge broadcast venue which simply didn’t exist beforehand. Anybody with any experience in the broadcast industry was starting his own channel and pretty soon cable channels were commonplace. The most successful channels at the time were religious based channels which were basically used for fundraising purposes. There were literally hundreds of them, from local, small time reverends and ministers with dubious backgrounds, to nationally broadcast spiritual and religious shows, utilizing well-known religious figures.

At this point, two things happened. For one, many of the young, fledgling channels and networks who counted on ad revenue to keep themselves afloat attracted less than stellar ratings and starting going under. And at the same time, the religious channels started to realize that their fundraising efforts were failing miserably in the late evening and wee hours of the morning.

Cheap broadcast space was born! And enterprising businessmen, more like vultures than saviors, swooped down and began to chew on the dying carcasses of the young cable industry, buying up blocks of cheap, late night, off peak broadcast time and running 30 minute or 60 minute, inexpensively produced commercials refashioned as entertainment programs.

Pretty soon there were infomercial superstars. Celebrities, as well as a cast of unknowns, found fame and fortune in the newly created infomercial industry. There was Jane Fonda who captured lightening in a bottle with her exercise tapes simultaneously boosting the video business along with the infomercial business. There was Ron Popeil, who marketed every gadget and device people didn’t even know they needed and made the switch from printed contact to electronic contact so successfully he’s still doing it today. And there was Kenny Kingston who made the Psychic Hotline into one of the largest businesses in the world without even having anything to sell! Only in America and only in infomercials could such overwhelming success happen so quickly.

Soon, everybody with an idea was trying to come up with the next big thing. As is always the case with any new industry, immediately following the initial success there comes a huge wave of imitators and innovators trying to cash in. And as always happens – most fail. There was such a huge crush of wannabes flooding into the business that production rates skyrocketed and broadcast time became more and more expensive and less and less available. Almost overnight, the infomercial industry went from nothing to today’s enviable haul of billions of dollars annually. And that’s just in America. Successful infomercials, like Hollywood movies are translated into foreign languages and played all around the globe especially when they are celebrity driven.

The newly created infomercial industry was the precursor to the Home Shopping Network and QVC which are essentially 24 hour mini infomercials, product driven, price driven and celebrity driven. And now we have The Infomercial Channel – 24 hours a day of infomercials. Gone are the days of loud mouthed hucksters, snake oil salesmen yelling into the camera, hawking the latest “it slices! it dices!” home improvement device. Today, infomercials are slick, expensive and if they work, highly profitable.

About the author:
Infomercials Info provides detailed information on exercise, weight loss, real estate, and make up infomercials and direct response (DRTV). Infomercials Info is affiliated with Business Plans by Growthink.

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Flipping Houses for Gold: How to Find the Perfect Fixer

by: Jeanette Joy Fisher

Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.

If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.

HOW TO FIND THE PERFECT FIXER

1. Know Your Market

Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?

Examine the sales that sell quickly. What home features and financing options prompted the fast sale?

Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.

2. Know When "Ugly" Means "Gold"

When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.

Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real estate investors see them as gold mines.

3. Know When "Ugly" Means "No Thanks"

When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.

If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.

Turn Yucks into Bucks

Why would anyone want to do this hard work? How much does the average rehabber make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.

When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.

You can make a fortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.

Copyright © 2010 Jeanette J. Fisher. All rights reserved.

About the author:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance, and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhousefordollars.com/

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Finding a Brochure Printing Company -

by: Max Bellamy

A brochure can be a great promotional tool, whether it is for is a real estate listing, a trade show handout, a data sheet, or some other application, but sometimes it’s hard to know where to start. Brochure printing companies can provide their expertise as well as a wide range of printing and marketing services.

Most brochure printing companies do other types of printing as well. The range of services available within a company that prints brochures is quite broad. The process of finding the right company that meets the requirements of your job is an easy step-by-step process.

First, carefully consider your budget. Then assess the job you have in mind, whether you prefer full color or a single color, whether you prefer offset printing or digital printing, print run, type of fold, paper and shipping. Following these basic guidelines should help make finding the right brochure printing company a simple and painless task.

Before you enlist the aid of a customer service representative at a printing company, you can look at online templates or fill out a questionnaire that will help assess the cost of a job and the services that brochure printing company provide. This makes it easier to shop around and get the best deal without feeling obligated to go with a particular company.

Most brochure printing companies will provide an experienced estimator who will help you to determine the proper paper, inks, coatings, bindery and distribution for your brochure project. It is worth it to check to see if this service is offered, as it will save you time and trouble. It also usually produces an accurate quote, thereby insuring the best quality at the best possible price.

The services offered at brochure printing companies will usually exceed your brochure printing needs; most brochure printing companies will also offer other printing, bindery and mailing services. Beyond that, there are brochure printing companies that will also assist you in your brochure design, recommend marketing strategies, write brochure content for you, and offer other marketing tools. Finding and learning about brochure printing companies and their services is an educational endeavor no matter how small or complicated the brochure, and the rewards can be substantial.

About the author:
Brochure Printing Info provides detailed information about cheap, color, and full color brochure printing services, and advice on finding a brochure printing company and quote. Brochure Printing Info is the sister site of Laser Toner Web.

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Don’t Let Passions Rule When Buying A Business

by: David E Coffman CPA/ABV, CVA

For many, the American dream of owning a business is in queue right behind owning a home. I was a teenager when I owned my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.

Paying too much

This results from the combination of all other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.

Letting your emotions rule

If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.

Paying for potential

You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest these things, so he does not deserve to be paid for them.

Not evaluating yourself

Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.

Not building a team of experts

At a bare minimum, you should enlist the aid of an attorney and a CPA. The attorney can prepare and review documents, help structure the deal, and make you aware of legal and liability issues. The CPA can provide a financial analysis of the business, and advise you about tax and accounting matters. You should consider adding a business valuation professional. His valuation report can be used to determine the reasonableness of the asking price, negotiate a lower price, and provide valuable information about the business, the industry, the competition, and the economic conditions.

Relying on bad information

You should verify all important information about the business. Your CPA can check financial information like receivables, payables, and inventory. Your attorney can review loan documents, leases, and contracts. Your business valuation professional can analyze the competition, the industry, and the economic conditions. Use independent appraisers to value real estate and equipment. Get a credit report on the business through your CPA or banker. You can do some of the investigating yourself to save money, but do not cut too many corners – it may cost you in the long run.

Changing too much, too fast

Once you own the business, you will be tempted to start making wholesale changes from day one. You risk alienating long-time employees and customers. Unless the business is in bad financial condition and needs immediate action, its better to take some time to get to know the business, your employees, and your customers before making changes. This is a perfect time to solicit suggestions from employees and customers.

Buying a business because you like to do what the business does

One reason restaurants have a high failure rate is people buy or start them because they like to cook. Very few restaurant owners spend time cooking. Their time is spent managing staff, ordering supplies, doing paperwork, and handling daily crises. A small business owner must wear many hats – including that of manager.

Not being interested in the business’s product or service

I made the mistake of thinking that because I am a CPA and smart that I could own and operate any business. I bought a business that sold high-performance auto parts to young men who drove jacked-up, four-wheel drive pickup trucks and went to the drag races every weekend. I did not do either and never understood why anyone would. I could not relate to my customers and went out of business in about a year.

Conclusion

Buying a business is a complicated, emotional process. By avoiding these costly mistakes, you can prevent turning your dream into a nightmare.

About the author:
David E. Coffman CPA/ABV, CVA has 30 years of experience working with and operating small businesses. His web site offers many useful articles, links, and other resources for potential buyers and sellers of small businesses.

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Canada Plays China Card

by: Carl Delfeld

Trade friction and energy leverage has led to an unprecedented Canadian policy of “speak loudly and carry a big piece of lumber” policy towards the United States.

The long running dispute over American tariffs on Canadian lumber escalated to the point last week that Canadian Prime Minister Paul Martin indirectly linked settlement with continued U.S. access to Canadian energy supplies. Meanwhile, Canadian Natural Resources Minister John McCallum was off to China to meet with Chinese oil, mining and forestry officials.

This is serious business. Part of the 1994 NAFTA Free Trade Agreement guaranteed that Canada would remain the favored supplier to the U.S. It might surprise you to learn that Canada supplies 17% of U.S. oil imports, 16% of our natural gas and nearly all of our hydroelectric power. The Canadian government owns the vast majority of the country’s energy resources and Canada exports more than 1.5 million barrels a day to America representing 8% of U.S. consumption.

China’s Lengthening Reach

Meanwhile, China’s aggressive moves in Canada’s energy sector are raising eyebrows in Washington. Chinese government has earmarked $100 billion for overseas acquisitions of oil and gas. The Chinese are going on a buying spree investing in Canadian energy companies and recently plunked down $2 billion to build a thousand mile pipeline from Alberta tar sands to port on the west coast and onward to Beijing and Shanghai. While the oil reserve numbers for Saudi Arabia are under scrutiny, Canada has recoverable reserves of roughly 175 million barrels. Much of it is in oil sand that is processed profitably at oil prices of $20 or higher and T. Boone Pickens thinks that Canada’s oil sand production could reach 6 million barrels a day

There are now about 1 million ethnic Chinese residing in Canada and China is now Canada’s second largest trading partner. Last month, Chinese President Hu Jintao visited Canada and declared that the two countries had upgraded their relations to a “strategic partnership”.

The US’s Waning Grasp

This Chinese-Canadian power play puts America in real jam. You could write a book about the long simmering lumber dispute but a Nafta panel recently ordered the U.S. to return $5 billion of collected tariffs to Canadian lumber companies. Relations with Canada were also weakened earlier this year when Canada announced that it would not contribute to the American-led missile defense program even though 90% of Canadian citizens live within 100 mile of the border between the two countries and Americans purchase 85% of total Canadian exports.

What’s going on? Part of the answer is that the vast majority of Canadians oppose the policies of the Bush Administration. The issue is sensitive in many areas across Canada that are highly dependent on the lumber industry and Mr. Martin and his party are preparing for national elections expected early next year. It is always a vote getter to poke a stick in the eye of the elephant to the south.

How to Play

While Canadian-American relations have seen better days, the energy boom has certainly been beneficial to investors in Canadian markets. The Canada iShare (EWC) tracks the MSCI Canada Index that has 40% exposure to Canada’s energy and materials sector. While the S&P index is up only 3%, the Canada iShare is up 16.6% year to date and 28.8% over the past twelve months.

Speaking of timber, it is smart to have some timber exposure in your portfolio and I have had timber REIT Plum Creek Timber (PCL) in our core portfolio for over two years. Here is why I like it. First, timber is a great inflation hedge and over the past 100 years has risen 3% above the average annual inflation rate. Secondly, timber is not correlated to stocks or bonds and thus is a great “shock absorber” to cushion your portfolio when shares are declining. During the 1970s bear market, timber rose in value while stocks went down. Thirdly, from 1973-2000 timber yielded an average annual return of 15%. Last but not least, timber valuations are attractive after some declines during 2000-2002 especially relative to real estate prices. During 2004 Plum Creek was up 23% and this year it has traded between $34 and $39 finishing last week just over $35 with an attractive dividend yield of 4.3%.

It behooves the U.S. to negotiate a settlement to the lumber dispute as soon as possible and lock up Canadian energy sources before the Chinese get the jump on us. Investors can’t do much about improving Canadian-American relations but they can improve their portfolios by adding exposure to timber as well as to Canada as both an energy and China play.

About the author:
Chartwell Partners publishes the investment newsletter "Asia-Pacific Growth." 719-264-1503

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