Business Insurance Agents are Master Communicators

Successful business insurance agents are excellent communicators.They know that asking the right questions, demonstrating sincere interest in the answers, and continuing to probe until they clearly understand what their prospect feels is important - is something they do arguably better than anyone else.

They may or may not be curious by nature, but they are not nosy.They ask their questions respectfully in order to get their prospects to open up.To tell them their honest concerns.

Why do successful business insurance agents ask so many questions and why do they get honest answers more often than not?Especially when the questions are not specifically about the prospects insurance policies?

Business owners are naturally secretive, cynical and have a built in BS detector that can pick out hype and hard sell across a crowded room.Why do these people, folks who don't tell their accountants the whole story, never actually tell their lawyer everything, and often keep everybody else in the dark - open up to their business insurance agents?

Successful business insurance agents know that this secretive business owner will answer any legitimate question they ask, if they are respectful, genuinely interested, and if they ask it at their very first meeting.The last point is critical.If they show interest, these lonely hard driven business owners will spill their guts to them the first time they meet.Later on the business owner has their defense mechanisms back up.

Business insurance agents understand this.They are masters at breaking the ice with honest questions that demonstrate their interest.They have seen how this approach results in an atmosphere of mutual respect, a relationship quickly develops around this shared information - often information they have never shared with another living soul.

Their objective is to involve the business owner in the discussion, learn what makes them tick, what keeps them awake at night - without being pushy, without the appearance of aggressiveness.Is it any wonder that successful business insurance agents are closer to their clients than virtually any other member of the business owner's advisory team?

Successful business insurance agents don't act like technicians.Instead they are looking for the why, the who, the when, and the where of the challenges and concerns the business owner has.Then they will work hand in glove with the business owner to determine the how.How things need to be done in order to insure the outcomes the business owner wants.

Business insurance agents never begin a discussion with 2 + 2 questions, or ask the business owner to drag out their Buy/Sell Agreement, ancient tax returns, corporate disability income policies, errors & omissions and liability coverages, or their life insurance.

Successful business insurance agents know that 2+2 will always equal four.There will be lots of time to track down all the details, if they successfully win the battle for their prospect's trust.

And they never ask questions that have no "yes" or "no" as possible answers.They are there to draw out the feelings of the business owner, what's important to the business and the business owner's family.They ask questions no one else has the courage to ask, because other advisors are often afraid to put the business owner on the spot.What if they get mad?What if they tell them it's none of their business?

On the other hand, what if the insurance agent does not ask the hard questions or they ask them in an offhanded way and don't stick with it until they get the real answer?What if they blow off this need to get honest feedback from the business owner and something bad happens?

Successful business insurance agents know that when something bad happens, they are the only people on earth who bring cash to the crisis.No one else can do that.In the end, what matters most - the agent's momentary embarrassment for asking a hard question, the business owner's uneasiness for being asked a question that is hard for them to answer, or the feelings of gratitude when the business insurance agent shows up with the check that puts out whatever fires have descended on the business and the business owner's family?

Here is a question asked probably thousands of times every day by successful business insurance agents.

"If you had died last night and your spouse went to see your business insurance agent this morning, what three questions would they ask them?How would your agent have to answer them?What would you like for them to be able to say - how would you like your agent to answer them?"

Successful business insurance agents ask questions like this so that the business owner has to think before answering them.

They ask questions no one can answer for them, getting the business owner involved not only in defining the problem, it also making them a party to the solution.

Successful business insurance agents let the business owner articulate the problem because the solution, whatever it is, belongs to the business owner, not them.The business owner has to live with their solution or without it, as they choose.

About the Author

Business insurance agents are the only people who bring cash to a crisis to replace the assets lost.

If you want to be even more successful in the future than you are today, visit business insurance agents and add your comments to the ongoing discussion.Contribute to the conversation based on your experiences.We learn the best from each other.

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Owner Builder Credit Scores and the Effect On Financing Fees

Owner builder construction loans have become harder to find as the mortgage industry has all but done away with these highly specialized products.The owner builder programs that remain strong are using the industry titan, Fannie Mae, for rates and pricing.How does this affect you?Your loan will have higher financing fees (discount points) wrapped into it if your credit score is not strong.

In the world of owner builder construction, the borrower already expects to pay more for the loan than he would expect to pay for a typical construction loan or certainly than a simple purchase or refinance mortgage.In fact, these higher costs are not of utmost importance, because they are offset against the hardy amount of savings that an owner builder will earn by cutting out the costs of a general contractor during construction of the new home.

However, every little bit helps.And, if an owner builder can avoid additional fees that come with lower credit scores, then it will help to maximize the amount of sweat equity that gets built into the home.Obviously, the borrowers with FICO credit scores above 740 will have nothing to worry about.It is the borrowers with credit scores that fall below 700 especially that will need to be prepared to wrap additional discount points into their loan.So, let's take a look at why this is happening, and then determine if the construction is still worth the extra fees.

The bulk of the remaining owner builder construction loan programs across the country are selling their end products to Fannie Mae, the mortgage industry titan who stimulates lending by purchasing bundles of mortgages from banks.This is not unusual.In fact, it's the typical outlet for most lenders in the U.S.The issue for owner builder loans, though, is that Fannie Mae has set some strict pricing guidelines that correspond directly to the borrower's FICO credit score and loan-to-value ratio.

With owner builder construction, the borrower typically builds his home for less than 80% of the house's appraised market value.Therefore, when looking at Fannie Mae's guidelines for pricing, it is very helpful that owner builders don't have to concern themselves with any loan-to-value ratios above 80%.This truly saves them from a lot of the higher pricing tiers.

However, it is the credit scores that must be closely observed.For example, using the 80% loan-to-value ratio, a borrower who has a credit score below 700 can expect to wrap one extra discount point into their loan.If your credit score is below 680, wrap an extra 1.75 to 2.25 points into the loan.One point is equal to one percent of the loan amount.Therefore, if your loan amount is $200,000, then wrapping an additional 1.75 points into your financing will mean a loss of $3,500 in equity in your home when it is completed.

So, is it worth it for an owner builder with a lower credit score?The answer to that question depends on the amount of equity that he plans to save during construction of his home.For example, on a $200,000, you may save $40,000 by eliminating the costs of an owner builder and managing the project yourself, perhaps even doing some of the minor parts of the labor.In this case, the extra $3,500 wrapped into your loan amount shouldn't make a big difference to you.

It is important to note that these owner builder construction loans make allowances for a borrower to wrap these fees and closings costs into the loan amount, so you won't have to pay them out of pocket.In the example above, the extra $3,500 in discount points that occurs due to a lower credit score will not mean that you must pay an extra $3,500 at closing.It simply means that an extra $3,500 is being financing for you.In the long run, you can equate this to $3,500 less equity that you get to build into your home by being an owner builder.

In addition, the extra fees may be well worth it to you if the owner builder construction loan has a one-time-close feature, meaning you won't have to go through a second round of closings once your home is built.If you can convert straight to your permanent financing without having to worry about a second round of closing costs, then the extra fees in the one-time-closing are not overly troublesome.For an owner builder about to save a lot of money during construction, the financing program that allows him to do so will still be well worth it.

Therefore, if you are considering applying for an owner builder construction loan that will allow you to build your own home without requiring a general contractor, be prepared to have higher costs associated with the loan than you would have if you were buying a house or using a fully approved builder for construction.However, remember to look at the big picture and calculate the overall reward of the substantially lower construction costs for owner builder projects.

About the Author

Chris Esposito provides owner builder construction loans through the Owner Builder 101 program, designed to help you build your home without paying the costs of a GC.

For more info about the process and financing for an owner builder, go to www.OwnerBuilder101.com, or call (877) 876-3688.

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Tax Deductions Help Recoup Lost Revenue In Real Estate Investing

Everyone knows the government will always get their tax money one way or another.That doesn't mean you have to automatically turn over a higher percentage of your real estate investing profits than the law requires.With good property management, you may be able to be entitled to substantial income tax deductions that help to increase your profits.This article will help to identify some of these legitimate tax deductions and will show you how you can benefit from them.

The Home Office

Many people avoid taking a home office deduction, but if you carefully follow the guidelines provided by the IRS, this could be a big savings to you.

This would include a portion of utilities, furniture, office equipment, and supplies, as well as your telephone expense.You may even able to deduct a portion of your real estate taxes.The office area of your home should be dedicated exclusively to your real estate investing and property management activities.This means just because you have a computer in the den that you keep property management records on you can't claim it as a home office if the den also has a television or other entertainment activates that a family would normally enjoy.If you follow the IRS guidelines and you should have no problem.

Travel Expenses May Be Deductible

If you have real estate properties spread out over an area of any size, you most likely will have to travel to check on them.

This is true, even if your real estate investments are all within your immediate local area.A portion of your gas expense and travel allowance as established by the IRS is deductible.You will need to keep an accurate record and log your travel.This goes for everything that is associated with your properties, for example, a trip to the hardware store for a replacement faucet or lumberyard for a gate repair.If you have properties outside of your immediate area, a portion of travel expense as well as meals and accommodations may also be deductible.

Taking Care Of Business

In real estate investing, almost anything associated with the property can be deducted from the income produced.

Property management expenses, interest on the loan secured by the property, and repairs that are made, although some major repairs or renovations may need to be spread out over a longer time period.One of the largest deductions is depreciation on the property.The government allows you to depreciate a portion of your cost each year as an offset to your income.This will of course reduce your initial cost for tax purposes and will affect the capital gains taxes when you go to transfer or sell the property.A good property management company can advise you in greater detail.

Insurance Coverage Is Important

You should always have adequate insurance coverage for all perils including fire, wind, and flood.

If you have a mortgage on the property, the lender will require full coverage to protect their interest as well.Insurance is not cheap, but necessary.The premiums you pay are a direct expense associated with the property, thus count as a legal deduction just as your real estate taxes would count.

If you have several properties that require the employment of others, and you provide insurance coverage for them as well, this too can be a deductible expense.

Legal And Professional Fees

Real estate investing can be complicated and you're not expected to know everything or to be an expert in every field.

There will be times that you may have to hire an attorney or an accountant.The fees these and other professionals charge are deductible from your taxes.The same applies to plumbers, electricians, painters, and other trade professionals.

A number of expenses are commonly associated with property management and real estate investing.Become familiar with the ones that you can put to work for you by reducing your taxable income and then document them accordingly.If you don't feel comfortable in deciding which expenses you're entitled to, consult with a good property manager, accountant, or tax attorney.

About the Author

Christine O'Kelly is an author for Chicago Beal Property, the property management experts.

Beal Properties help those involved with real estate investing make the most of their investments by using their expertise gained through over 80 years of experience.

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