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We don't believe in luck or chance. We believe in creating a strategy plan of action. Becoming a millionaire sounds like a dream to good to be true, because you have been conditioned to think that way from a child. Keep the mind enslaved. Time to WAKE UP...
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JOIN - Syndicate 1000 Group CASH System
JOIN - 4 Corners Alliance Group CASH System
JOIN - Godzone Credit Exchange CRYPTO_CREDIT System
JOIN - The Billion Coin CRYPTO-CURRENCY System
JOIN - Bitcoin - Open a Wallet CRYPTO-CURRENCY System
Global Advertising Internet Network Limited (hereby known as the "Company", "Umbrella Company", "Syndicator Company", "Management Company") and it's management team supports their subsidiary Syndicate 1000 Group and their vision to open positions for 1,000 Cooperative Syndicate's with 1,000 syndicate share portfolio's with 1,000 pledge member's for the benefit of all parties. The management team has an invested interest, earning a performance-based 10% management tithe on all sales revenue, assets, retirement capital and credit dividends. So it is in their best interest to perform well, and run a tight ship to reach the ultimate peak performance in reaching a capital value threshold of $5,000,000, so that the 10% management tithe increases to a 20% management tithe from thereafter. This increase is covered by the increased capital value of the Working Cooperative and effective management. The management team strives to be accountable and transparent in it's fiduciary responsibilities, yet, still remaining private and confidential in it's operations, protecting the privacy, trade secrets, copy-rights and intellectual property of the entire organization and it's structure.
The overall retirement term is 30 years with the first 5 Years start-up period for forming, storming, norming and performing so to speak. Structure adjustment and a settling period, to a right of renewal every 5 years thereafter. When the cooperative first launches there will be a period of the gathering (forming) of the 1,000 Pledge Member's. When you bring 1,000 pledge member's into a cooperative business model, there is always differences in opinions (storming) over business work ethics, structure, cultural values and practices and there is always jump the rabbit, whats in it for me and I can do better attitudes. The truth is on the contrary, otherwise they would be doing it. When the pledge member's who generally realize, working as ONE unified TEAM (norming) together everyone can achieve more and cooperation, adjustment, trust and commitment creates a very successful venture (performing).
We are now recruiting small to medium-sized start-up and established businesses and their Directors on our Business Round Table of 1,000 segment seats. There will be an Upper House Board of Directors and a Lower House Investment Management Team consisting of 24 Elders in each respective house. They will be upright, righteous and diligent with years of experience in the successful management of their own businesses that are part of this very co-op. Syndicate 1000 Group is the revised version of Cooperative Capital Aotearoa. Our vision is to establish 1,000 Head Cooperative Syndicates with 1,000 Syndicate Share's Portfolio's with 1,000 pledge member's in each, providing lump sum venture capital pledges of $1,000NZD and a debt servicing term pledge of $10NZD a week ongoing. Accurate record-keeping is paramount for the success of any Working Cooperative, especially one that will encompass 1,000 Cooperative Syndicate's consisting of 1,000 Syndicate Portfolio's with 1,000 Members in each syndicate. This will launch our Cooperative Group of Companies, each with $1,000,000NZD start-up capital and $520,000 annual debt servicing capital per syndicate portfolio within each Working Cooperative. We invite strong leader's in their respected communities to put their best foot forward and apply within.
Our affiliate referral program sets the stage for our members to find 4 or more business-minded people within the first month of joining Syndicate 1000 Group in the first portfolio we called Syndicate 01. Members are the back-bone of any syndicate, they are business-minded with ideas and innovative concepts for start-up models for businesses looking for capital or have an established business within the co-op and the most valued commodity to the Company and it's Cooperative Syndicate(s). Each member joins a working cooperative that encourages ongoing participation in sponsoring pledge member's and promoting it's products and services to communities locally, nationally and internationally to generate revenue for their own businesses and their co-op. There is a future career opportunity for both consumer's and start-up and established small to medium-sized commercial businesses, that from the outset, is generally never realized and often missed by our pledge member's.
When we reach our target of 1,000 pledge members we will establish a new cooperative entity with it's own business bank accounts and 1,000 signatories. One Account for the $10 a week debt servicing, One Account for the $1,000 capital investment and asset procurement with retirement capital, and one account for general business activities for everyone's sales on the open global marketplace and purchases for themselves and family, benefiting from both world's with share margins. Members who promote, list, sell, buy, barter, refer, trade and exchange products and services of the syndicate company and it's group of companies, cooperating and sharing in upfront performance-based commissions, incentives and profit margins, paid monthly with capital credits shared annually.
Syndicate 1000 Group Private Contract Association and its Cooperative Business Alliance merges its systems with numerous affiliated business societies to create abundance, wealth and prosperity for all, ending poverty and oppression forever. A step by step process that assists people to rise up from darkness into the light. A Brand NEW Concept to bring communities together creating asset procurement venture capital to develop food, clothes, housing, business, utilities, agriculture, aquaculture, forestry, and general natural, capital and human resources in Aotearoa (Aotearoha). You are applying to be a shareholder in a shares portfolio as a joint venture with 1,000 other pledge members. Independent Business Owners joining forces and cooperating in supply an demand of combined products and services that share 50/50 profit share margins. Your Business might take a cut in profits initially, but the volume of sales out way the losses.
A Working Cooperative that earns incentives and up-front performance-based revenue shares of profit margins from product and service sales and affiliate referral marketing.
This website has an annual membership pledge of 0.015 btc (BITCOIN) or $120 NZD plus GST. The company is offering a special offer until XMAS to reimburse the pledge if any member refers 10 or more people within their first month of joining and invoices the company. This basically can be considered a 10% performance-based incentive.
You MUST be a Pledge Member of both the Syndicate 1000 Group and our Affiliate Referral Program, 4 Corners Alliance Group. Together they form the strategy of the Cooperative Syndicate and the 4 Corners Alliance Group is the platform that tracks genealogy down-line throughout your network. To keep our Syndicate moving forward, we expect ALL members to have their 4 plus pledge members registered on the one-time $28 USD affiliate referral platform of 4 Corners Alliance Group and registered on the Syndicate 1000 Group website to login. All members MUST have their $10 NZD weekly term pledge active or they will be suspended from participation with any Syndicate until remedied.
It is inevitable that when everyone does their part and completes their workload task, the $1,000 NZD and more for other strategies will be covered by the return on investment with our affiliate referral platform of 4 Corners Alliance Group, making this one of the most affordable Working Cooperatives in the world.
With our business model we believe it has the potential to create Millionaires within Syndicate 1000 Group over a long term, hence why we make a commitment for up to 30 years plus, to ensure our member's benefits are experienced by family members from generation to generation.
Gavin intends to provide 7 Strategies with 7 multiple income streams to 7 Pacific Island Nations throughout the Pacific Triangle of TE-MOANA-NUI-A-KIWA, from Aotearoha the Kingdom Of Heaven, the county of Jew Zealand on the continent of Lemurya. Later to the 7 seas and 7 continents to 7 Sovereign Native Nations, maybe with 7 Spanish Angels, 7 truly a divine number of completion now moving to 8 the resurrection and new beginning of a new order or creation and the start of abundance, wealth and prosperity.
To get started..... 1,2,3 - Ready, Set, Go.....
First start your $10 NZD a week term pledge for 30 years with 5 year right of renewals. Complete your EXPRESSION OF INTEREST.
You will notice the affiliate marketing platform setup cost has increased to $28 USD One-Time Payment, not $18 USD. Transparency is important to us from the outset.
Join 4 Corners Alliance Group for a one-time $28 USD and set up 4 New Members within 2-4 weeks of joining into the program, which are the same 4 New members in Syndicate 1000 Group. We have a "Pay It Forward" strategy that costs $140 USD that covers the cost of you and your 4 pledge members to assist the process. (if you choose) By paying your pledge members setup cost in advance, encourages them to do the same and the process moves more swiftly. Being focused on business-minded people who is our target market.
Earn exponential rewards in 4 Corners Alliance Group that can be transferred from their US e-wallet account system to your NZ bank account and other crypto-currency accounts to cover your $1,000 NZD capital pledge. We are all about multiple income streams, so count the costs. More strategies to follow.
What will it cost for the initial set up?
The program Gavin has created can cover costs entirely and gives you a far greater return (anticipated over $500,000 return) and you can start in increment steps with as little as $10 NZD a week, but transparency shows currently you are probably looking at an up-front initial out of pocket expense outlay of $1,876 NZD or $40 NZD a week for One Year Only and an approximate $3,900 NZD or an ongoing commitment of $75 NZD a week until further notice up to a 30 year term that can be purchased outright for $117,000 for the entire 30-years (from your returns), from the starting date of the Syndicate to full-term maturity at 23 September 2048, less any contributions already made for an early settlement with 100% vote at each 5 year interval right of renewal. The only problem is the early settlement means less return as your returns are on capital growth over time on your venture capital. As a Working Cooperative we work together as a TEAM, encouraging one another so we all make it to the end results at the finish-line. Nobody will be left in darkness while walking among other lights. The company is determined to help all businesses achieve sales volume from the network of members and as the memberships flourish, we will provide new and exciting innovative and creative ways to succeed. A new change to the norm of what this current system has to offer. Below are 7 income streams Gavin Marsich is starting with Syndicate 1000 Group. He invites you to be part of his growing family. More strategies will follow....
There will be an out of pocket expense of $28 USD ($45-$50 NZD) pledge (hypothecate) for the network platform with the Four Corners Alliance Group. This is where your 4 or more new members join your team within the first 2-4 weeks of you joining. This site can also provide a return of up to $559,824 USD to you directly that can alleviate any other costs below. It is through our Syndicate 1000 Group that our members have greater success, so we invoice a 10% management tithe for the use of our network of people and its strategic programs. This is how Syndicate 1000 Group subsidiary to Global Advertising Internet Network Limited provides a return to our members. (Conditions Apply)
Please take note that Global Advertising Internet Network Limited deals mostly in a virtual world of digital currencies like BITCOIN, (TBC) THE BILLION COIN and CREDIT on their very own credit exchange that is totally private and exclusive to members. A decentralized system that is not controlled by any government or the elite banking cartel.
There will be an out of pocket expense of 0.015 btc (Bitcoin) pledge or $120 NZD plus GST for the annual membership pledge to Global Advertising Internet Network Limited and the use of it's website, program, strategies and products and services in its e-commerce store. This can be reimbursed entirely if any member introduces 10 or more new memberships within the first month of joining in any given fiscal year, being based on 10 new members it is an incentive reward valued at 10% return.
There will be an out of pocket expense of 0.010 BTC (Bitcoin) pledge, worth currently as of 6th October 2018 of $110-$120 NZD to set up a Managed Funds Portfolio to also assist with covering costs. Gavin has strategies to increase the value of bitcoin, therefore creates a syndicate portfolio for a 50/50 Joint Venture. Member puts up the 0.010 BTC or $110-$120 NZD and Gavin Marsich works the account (as his share of the joint venture) with his skill in crypto-currency. This is a personal and private venture that Gavin does as a hobby and is transparent about this in the joint venture agreement.
It is through the Syndicate 1000 Group that our members have greater success, so Global Advertising Internet Network Limited, invoices a 10% management tithe for the use of our network of people and strategic programs. This is on all online money-making strategies.
(Conditions Apply)
There will be an out of pocket expense of $10 NZD for a weekly term pledge or $520 NZD annually until further notice (30-year term, 5-year right of renewal intervals) with a share of retirement capital that goes to a debt servicing account for asset procurement and community project investments we vote on. This includes revenue increasing portfolios to capitalize on the existing $10 NZD revenue streams coming in. Gavin is focused on money-management concepts and accountability to maximize returns for the Syndicate and its members. The higher the balance the more profit to share.
There will be a one-time out of pocket expense of $1,000 NZD for a capital pledge for a 30-year term, 5-year right of renewal intervals on an assets procurement and community project investments account with a share of retirement capital, a return for members or their children's, children for a thousand generations of bequeathing.
There will be an out of pocket expense (undisclosed) for sales of products and services purchased or sold within the Working Cooperative that you share 50/50 in the profit margins with your direct up-line, being your Syndicate on sales you personally introduced.
We are making the move into a virtual world of digital currency with Global Advertising Internet Network Limited and its economic trading and membership support network platform called Godzone Credit Exchange. There is a monthly 20 €Euro Dollars or 240 €Euro Dollars annual ($40 NZD approx or $480 NZD) platform service charge, being one-year in advance until further notice. Everyone receives a 10 Million Credit business start-up for inviting 10 or more New Memberships within the first month of joining. This provides the opportunity for virtually FREE trading locally, nationally and internationally. Credits are covered by a true intrinsic trading instrument value of a common law commercial lien over all the governments of the world. It is the NEW GLOBAL RESET everyone has been waiting for.
A late addition to the fold is "The Billion Coin" or TBC as many know it. An abundance coin with a maximum cap of One Billion Dollars per COIN. Value increases with membership at 1% - 5% Daily. There is a $10 USD ($20 NZD) one-time admin fee. We suggest to refer as many people as you can to receive 25,000 Kringle CASH that is exchanged into coin value. Gavin started in June 2017 and invested $150 USD ($250 NZD), signed up over 100 people and paid the admin fee. He is now working on signing up another 100 people, investing another $150 USD ($250 NZD) to increase his current value of over $120 Million in TBC Value to exchange with his very own CREDIT's on his global platform of digital currency. This is a new concept but you have to be in to win right. On 17 March 2010, the now-defunct BitcoinMarket.com exchange is the first one that starts operating. On 22 May 2010, Laszlo Hanyecz made the first real-world transaction by buying two pizzas in Jacksonville, Florida for 10,000 BTC. In five days, the price grew 900%, rising from $0.008 to $0.08 for 1 bitcoin. Look at the value now.
We are primarily a digital currency organization but we still allow room for the soon to become obsolete world of fiat currency that we all know holds only perceived value of the people and their belief system of product and service exchange.
As 50% of our funds will be debt-based we lock down the best strategies to secure competitive interest rates, maximize income, minimize expenses, minimize interest and save tens of thousands of dollars to maximize asset procurement and capital growth for our members to increase their share holdings over a 30 year term with right of renewals every 5 years.
To get access to the website, requires an expression of interest, a commitment to the term and capital pledge program and your commitment to sharing in the workload of inviting 4 or more people to this opportunity within the first 2-4 weeks of joining. Complete the Expression Of Interest form to get access to some of Gavin's strategies and start a payment program today.
Here is one of Gavin's strategies with our 4 Corners Alliance Group. A simple concept when you join Syndicate 1000 Group and setting up your $10 NZD weekly term and $1,000 NZD capital pledges to lock a position in a syndicate portfolio. Invite 4 or more people within the first 2-4 weeks of joining and they will do the same. Start purchasing or selling products and services from the website to earn profit margins. Everyone has to join 4 Corners Alliance Group for the affiliate marketing platform for Syndicate 1000 Group. It costs a one-time setup of $28 USD. Your earnings purchase digital products over 6-Levels and the profit is what gives you a financial return. Crowdfunding for business start-ups is legal in the United states.
The Jump-start Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of small businesses in the United States by easing many of the country's securities regulations. It passed with bipartisan support, and was signed into law by President Barack Obama on April 5, 2012. Four Corners Alliance Group is a US Company, so as long as you pay your taxes on your funds received before you transfer into your New Zealand account, we are all covered.
This is simply a numbers game. If everyone completes their task of getting 4 or more people to invest $28 USD ($45-$50 NZD) for Four Corners Alliance Group, pay their up-front annual membership pledge of 0.015 btc (Bitcoin) or $120 NZD plus GST and add ($110 NZD) or 0.010 btc (Bitcoin) for their personally managed Bitcoin crypto-currency funds account to Global Advertising Internet Network Limited and start their $10 NZD weekly payment to Syndicate 1000 Group's, Syndicate 01 Account within 2-4 weeks of joining, you can see returns in your back-office USD e-wallet account immediately when people you invite joins and registers.
It is anticipated with our program that within the first 90-Days, you may have returns to cover your $1,000 NZD capital pledge, the up-front annual platform fee to the Godzone Credit Exchange and much, much more (Refer to the instant commissions chart above). Make more pledges to secure more positions within the syndicate portfolio and secure retirement capital for yours or your grandchildren's future and immediate returns on sales now. Go ahead, join 4 Corners Alliance and Syndicate 1000 Group's Today!
Manufacturer's and Supplier's share margin's 50/50 with Global Advertising Internet Network Limited (The Company). They share their margins 50/50 with Syndicate 1000 Group who share their margins 50/50 with the Cooperate Syndicate's. They then share their margins 50/50 with the Pledge Member's. Whoever makes a purchase for themselves or sells products and services to someone else, the entire up-line from that person, benefits from a share of the margins. Obviously the higher up the ladder you are the more commission you make on the sale. All of which is secured with monthly invoices before the Syndicator Company releases any commission payments. The before will apply to service businesses sharing their profit margins as well. Business sales volume that everyone from the community shares in, providing equality when listed through the company, everyone gets it for the same price and the willingness to help fellow members to succeed because we have an invested interest of 50/50 in their business. Surely a win, win for all.
Each syndicate will be made up of members that may or may not personally know each other, but have been collectively assembled together for a cooperative purpose. They meet to form the foundation of their co-op of 1,000 pledge member's to establish a Syndicate in partnership with the designer of the revised cooperative capital aotearoa concept, the Guardian Syndicator, Gavin Marsich of Global Advertising Internet Network Limited who is 100% Shareholder and Founder of the Syndicator Company.
When members join and make the pledge, they will have written contracts that outlines their duties, obligations and responsibilities to each syndicate they are member's too. Members shares are based on members ownership of pledges and their obligations and commitments to the cooperative. The pledge(s) give voting power at monthly events, the more you own the more votes you have in the decision making process of the syndicate, up to a maximum of 10 votes.
You get to vote on the top (5) five investment opportunities at these monthly events where the majority of votes win. Primarily it is your collective decision(s) on what your syndicate invests in and how it uses your share of the venture capital and how it impacts you and the community you live in, but typically provides a much better return on investment than that of a traditional bank investment or cash deposit account. The structure however will be 50% equity-based and 50% debt-based split into (3) three defined areas with 20% towards start-ups, 40% Real Estate and 40% established small to medium-sized businesses in your area. This is where communities bond together and become stronger, when neighbors have an invested interest and share in the opportunities in or around their communities.
The co-op is a 24/7 job, offering unlimited opportunities. You are even earning while you sleep as your products and services are displayed in advertising blocks 24-hours a day, 7-Days a week. It takes a huge lifestyle adjustment to the way most people traditionally do business or even the way most people can even comprehend. People are the greatest commodity of this realm. Without them it would be a desolate waste land. However, they have proven to be the most treacherous, destructive, war-mongering, segregated creatures on this planet, separated from reality and disillusioned by years of brain-washing and conditioning. Many feel alone, lost in a world of chaos and dismay, suppressed and oppressed by the greed of the elite puppet-masters. But we are on the mend, We are standing to attention. We are fighting back. I say, "RISE UP" from the ashes like a phoenix and we'll do it 1,000 times again. Take back what was always ours. Forgive, forget and move forward, one small step at a time. We will learn to trust again. We are survivors, being empowered by a few. I want to be empowered by you. Yes you the people. We 'the people'.... It's all about 'the people', "the people, the people, the people".
"He Tangata, He Tangata, He Tangata".
Global Advertising Internet Network Limited the Syndicator Company, shares margins with manufacturer and suppliers, less delivery costs and taxes of it's listed products and services on it's Company Websites, Social Media Pages and in Stores and Warehouses across the nation. As the Syndicate expands business activity increases with volume sales, allowing us buying power to bring prices down creating a price war that pushes for fair and equitable values. We envision our buying power will see us getting deals with local stores, community food markets, petrol stations, trade services, vehicle dealerships, real estate agencies and much more. Hence why Gavin Marsich will be researching technology to encompass our profit share (%) percentage margin formula's, to maximize our margins by running a tight ship.
If you are joining a syndicate and you are a start-up or established business that would like more sales volume and you can share your margins 50/50 and meet the expectations of the Syndicator Company, then joining the Cooperative Business Alliance is definitely the way to go. Gavin wants all the small to medium-sized businesses to unite and become syndicate co-op's. All it costs is $1,000NZD down and $10NZD a week ongoing to get started. Everyone helping each other to grow and rather than taking a big bite of the elephant and causing it to charge at you, we become the mouse that was asked, "How do you eat an elephant?", the reply was, "One little piece at a time". Taking smaller margins but getting volume business within a collective group of companies called a working co-op of pledge members uniting in global trade and sharing resources to reach the highest goals together. It's called "SMART" Business.
Although we are involved publicly with our communities, business remains in the private, in the clouds of online servers where online shopping is the "NEXT BIG THING" and many of our members are our suppliers of most of our products and services for commercial barter and trade. They are also our consumers that keep their business in-house, only shopping from within the co-op as true supporters of their own businesses where a profit share is made. Truly a working community bonding together and sharing in the spoils.
We do not believe this is a big ask as it is our membership network purchasing from within it's own business network establishing volume, creating buying power whether at the start of a syndicate or at the end of it. We also expect suppliers to be drop-shipping their products direct to our customers door via track and trace courier delivery services. By forging strong relationships between the syndicator company and merchant, the merchant could supply merchandise FREE to our warehouses under an insurance policy for faster service and delivery times, retaining our customers. If a customer is happy they will be repeat shopper's. We try to be competitive, listing the same price as other retailers, but on many occasion we are higher because of GST and delivery charges. This is inevitable with online purchasing and the nature of the beast so to speak.
However, if people take into account, driving to the mall, the time to shop, purchasing items they really didn't want because it was eye candy, lugging the family around and possibly going to the food mall because everyone is tired and hungry, the stress and the costs, our products purchased for a few extra dollars more, online with us, works out to be much more affordable. As a member it is also much better to purchase from yourself and your own Cooperative Syndicate as you are a member that shares in it's profit margins, which really is a discount in anyone's book.
STOP purchasing someone else's products and services, giving away your money to outside competitors that could have helped you, other pledge members, your own co-op, the syndicator company and the manufacturer/supplier within the co-op network you belong too.
As a working cooperative, members increase the revenue of their syndicate(s) by the business activity they are actively involved in, providing a share of the commission to their syndicate and upfront commissions for themselves which can cover any initial outlay. The more you do, the more you get out of it but in doing so the syndicate get's a (%) percentage share of each sale of the products and services you actively promote, list, sell, buy, barter, refer, trade and exchange that you are a beneficiary of when assets accumulate and increase in value. At some time in the future (if and when that happens) the shareholders decide on winding the syndicate down, the assets are sold, shares are disbursed and the syndicate is closed for business entirely. It will be the board of directors, made up of directors from the co-op companies within our network that will decide on the shares disbursement each member get's, as it will be based on productivity and effort each member proactively participated in. If you are a businesses that requires more sales, then a cooperative is the answer and for an individual, the opportunities of employment and contracting will be endless.
Each syndicate will have access to the Syndicator Company and it's Group of Companies products and services within the co-op network during the contractual term of engagement. These contracts can be terminated if there are any breaches. If the before occurs, the Syndicator Company will step into the terminated position and resume the responsibility of it's membership.
Each syndicate will be managed by the Guardian Syndicator under the Syndicator Company for the duration of the syndicate(s) life, even when it forms it's own entity. The Guardian Syndicator or Syndicator Company can never be over-thrown or voted out of office. The Guardian Syndicator of the Syndicator Company is 100% Shareholder and founding initiator of Global Advertising Internet Network Limited and each syndicate will be a subsidiary group in a group of cooperative's that the Guardian Syndicator and Syndicator Company will be a shareholder. This by no means, give's any pledge member the idea that they are shareholders of the Syndicator Company, Global Advertising Internet Network Limited as Gavin Marsich is the 100% shareholder of the Syndicator Company with a private discretionary trust will and testament that has succession trustees and beneficiaries. The Syndicate has only been initiated by the Syndicator Gavin Marsich under the umbrella of an advertising, sales and marketing company that was established 26th January 2012. Other subsidiary business concepts that are owned my Gavin Marsich are also part of the cooperative and form the foundation blocks of Global Advertising Internet Network Limited. The syndicates bank account initially is a subsidiary bank account of the company and the concept is owned by the Syndicator Gavin Marsich.
The syndicate is not designed for profit necessarily, but for creating better employment opportunities, trade & commerce, cooperative industry, improving environment, agriculture, fisheries, natural energy, education, transportation, waste management, housing homeless, produce markets, developing community projects and generally bringing people together more under a divine governance, out of the private into the public working in cooperative communities around Aotearoa and eventually around the world to end poverty and oppression forever.
If after a minimum of (5) five years the members quorum of 80% votes to wind the Working Cooperative Syndicate down, then all assets will be sold and each pledge member will receive their share of the remaining equitable value after costs as a shareholders dividend. Then the cooperative syndicate share's portfolio will resume under new syndicate pledge member's. Each share will be offered for sale to other syndicate's to take over your share's or offered to the open market for public offering. This process may take some time as it is always a drawn-out lengthy process.
It is the interest of the Guardian Syndicator and the Syndicator Company to reach a goal of 144 Syndicates with 1,000 pledges each, a divine number we would like to reach, consisting of business owners, each with a pledge, a profile and a business of their own that intends to establish their own syndicate 1000 groups to set the world stage for a GLOBAL RESET of the 144,000 Saints.
Cooperative Capital Aotearoa set the bench mark for the concept of Syndicate 1,000 Group. It lets a community of people pledge small amounts of money, vote on how they want to use it to generate returns with a focus on improving their neighborhood, community or city.
The only commitment to secure your portfolio segment(s) initially is the weekly $10 contribution pledge to start from the launch date and first depositor of any new syndicate portfolio, who is normally the Syndicator Gavin Marsich. Each syndicate portfolio consists of 1,000 pledges of members of each syndicate. When each syndicate portfolio reaches it's desired target, a New Syndicate Portfolio is established. If however, Gavin Marsich can find suitable candidates to establish syndicate portfolio's with 1,000 pledge member's in each, the cooperative industry will develop much sooner, catering for the growing interest in the Working Cooperative model. These manager's will manage their respective syndicate portfolio's and share 50/50 of the 10% management tithe and the increase to 20% when the threshold of $5,000,000 is reached that the Company receives. Everyone is a winner and nobody is left behind when each member of the cooperative receives a share of the margins. No matter what date you start to the build-up to the 1,000 pledges, your $10NZD contribution pledge will always be back-dated to the launch date of any New Syndicate, so that it keeps everyone on an equal footing and each individual member has equal opportunity to excel in a working cooperative. The $1,000NZD Capital Pledge will be required when we reach 1,000 pledges or before, secured at a meeting of people who have made their $10NZD a week contribution term pledge and locked in 4 friends per segment they own. We are clear about our motives to establish a joint venture. Therefore we expect the pledge member's commitment from the outset with an up-front $1,000NZD immediately or as soon as possible before they have any say.
PLEASE NOTE:
It is clear we have altered the original concept slightly to encompass 1,000 pledge member's contributing a 1% or $10NZD weekly ongoing contribution pledge on each portfolio segment block to create an income base for each shares portfolio syndicate trust for future debt servicing account for borrowed equitable funds and an upfront $1,000NZD Capital Pledge to procure assets and profitable investments for a retirement fund and added the affiliate referral program of securing 4 or more pledge member's within the first month of joining to share the workload equally among the member's so there is no animosity later.
An investment committee will review and rate all opportunities, and the larger group of investors will vote on the top (5) five. The winning choices will go into a due diligence stage, in which Company Syndicator will determine if the investment can produce at least a 6% annual rate of return.
Gavin Marsich is also seeking to establish a syndicate for overseas migrants to establish a portfolio with much higher term and capital pledge stakes, being an amount of $10,000 ongoing weekly term pledge and a lump-sum amount of $1,000,000 as the capital pledge. The stakeholders can include current cooperatives anywhere in the world that would like to establish a market in Aotearoa (New Zealand) but under the Syndicator Company's management and control and not monopolized by any one cooperative but a collective group of cooperatives. This will have a Syndicate with venture capital of 1 Billion Dollars with 520 Million in annual term pledges plus any member(s) activity and commission shares. Interested parties need to immediately express their interest in private to Gavin Marsich and the Syndicator Company. This opportunity can also extend to any syndicate here in Aotearoa (New Zealand) with their current model that allows them to front up with their $1 Million Dollar capital pledge and their $520,000 annual term pledge with their business activity supporting their current syndicate for return on investment.
The Member/Shareholder owns a share(s) of each portfolio and its assets which includes its debt servicing account that is used for asset procurement. The working co-op and it's business activity from shared margins will create an operations account and any annual profit after expenses will provide a dividend share for each portfolio segment the Member/Shareholder owns. Membership to the Co-op is voluntary and if and when a member wishes to resign or be removed from the syndicate and its commitments, their share(s) will be offered first to the Syndicator, Gavin Marsich, then to the Syndicate of shareholders if the Syndicator declines to purchase.
Although the fund will focus initially on syndication in real estate to buy, renovate, sell or lease to own under property management, the same model can be used to invest in local established businesses and new viable start-up concepts that show good future returns. A new coffee shop or restaurant that might struggle to get capital from a bank could potentially get an investment from the fund–which would then share revenue with investors as the business grows.
“That’s where we could really use the power of that large base of people investing and then having an incentive to actually frequent those places to reap a benefit and return on investment,” says Gavin Marsich. When people individually benefit, so will the community; local businesses create jobs and recirculate money within a city, and refurbished homes help increase property values for neighbors.
The fund will allow a group to collectively use the aggregated capital in the way they think is best–and will help focus that larger group on solutions. All members would be required to refer 4 or more people to help grow the collective membership to increase capital for asset procurement that provides good returns and future job opportunities within a cooperative business alliance where our members benefit.
The term of each Syndicate Portfolio is 30 years with 5 year increments of right of renewal of a further 5 years and so on. (Indefinite by choice). All members get a vote, based on the amount of pledges they own. One pledge, one vote up to 10 votes. An 80%+ quorum vote will be required for any winding up of any syndicate portfolio before term maturity. All other general meeting votes will be majority rule and when 50/50 the deciding vote will be the Syndicators. Each member that does not vote, that vote will be allocated to the Syndicator to use or not use in a decision making process. So we encourage you to vote, whether by deed poll sent in an email or Facebook page or at an actual monthly meeting. Four (4) meetings, 5 Hour sessions will most likely be split over a 2-Day weekend from 8:00am to 1:00pm and 3:00pm to 8:00pm and will be hosted by Coffee Outbreak Network Group at their venues throughout Aotearoa with (250) limited number of seats at a pre-booked cost of $200NZD a seat for business networking, presentations, financial updates, co-op news, one (1) minute introductions for new and existing business members, product and service sales promotions during which referral names are passed around and business card box is topped up, a paid $100NZD pre-booked slot time for (20) minutes for any business that would like a personalized promotional presentation on their own specific business, breakfast/lunch/dinner to list, sell, refer, promote barter, trade and exchange. The meetings will be videoed and MP3/MP4 and Youtube Video files will be available for sale at event venues and online. Seats for up-coming events are pre-booked and paid for before the next session. Each session has limited seats depending on size of venue, so there will be session times available throughout the event day. Laptop Computer use will be available in our internet café setting. The investment and management committee provides up to 5 investment options to vote on in monthly breakfast meetings where business will be conducted with Coffee Outbreak Network Group.
In summary, The $10 NZD supports any debt servicing, the $1,000 NZD supports capital assets for retirement capital, the product and service sales, supports member’s and the co-op and the business meeting support business trade activity. Share dividends of Capital Credits from the business operations account (if any) will be available after each audit of the previous fiscal year and disbursed at the appropriate time. These shares will be proportioned on performance-based income contributed by each member individually during the fiscal year. Within the working cooperative. The more sales, the more upfront monthly share margins for everyone and the more individual dividends each year. The debt servicing account and asset procurement holdings account has a 30 year term for retirement capital and will be disbursed after auditing and calculations in equal shares at the appropriate time.
Do you need a job?
Consider the possibilities with the Cooperative. As shareholders you will have each opportunity pass by you at each meeting you attend. These meetings are breakfast business network gatherings with Coffee Outbreak Network Group. If an opportunity arises for a Working Cooperative, we are certain to look for the experience within, rather than go to external human resource agencies.
Do you have an established business model or have a promising start-up concept in the pipeline?
Like above, we certainly keep things in-house. Working together everyone achieves more. Simply talk to the Syndicator Gavin Marsich, our Business Consultant to plan forward how best your business can benefit you and the Cooperative. Those who fail to plan, plan to fail. Get your business ideas and business plan on the table for complete transparency and due diligence and then take action, implementing your plan step by step.
The Syndicator Gavin Marsich, guardian of Global Advertising Internet Network LTD, acting as an umbrella company for Cooperative Capital Aotearoa and it's concepts, cooperative business alliances, segmented portfolio syndicates, strategies etc; will charge an upfront consultation fee for his advice but it is well worth the time and money that starts at $500.
Global Advertising Internet Network Limited (GAIN) and (CCA) the revised version of Syndicate 1000 Group is a socially responsible pledge fund that invests in cooperative businesses in the form of "patient capital,” or equity-like financing. GAIN assists the New Zealand cooperative industry to grow and flourish by providing capital that acts like equity without requiring coops to give up control over their own management and destiny, as traditional venture capital might.
MISSION
GAIN supports new and existing, cooperative and democratically owned and controlled enterprises, with preference to those that serve low-income communities. GAIN shall accomplish its mission through:
It is the intent of GAIN to build a more just economic system by:
GOALS
The central goals of GAIN's initial fund are as follows:
JOIN - 4 Corners Alliance Group CASH System
JOIN - Godzone Credit Exchange CRYPTO_CREDIT System
JOIN - The Billion Coin CRYPTO-CURRENCY System
JOIN - Bitcoin - Open a Wallet CRYPTO-CURRENCY System
Global Advertising Internet Network Limited (hereby known as the "Company", "Umbrella Company", "Syndicator Company", "Management Company") and it's management team supports their subsidiary Syndicate 1000 Group and their vision to open positions for 1,000 Cooperative Syndicate's with 1,000 syndicate share portfolio's with 1,000 pledge member's for the benefit of all parties. The management team has an invested interest, earning a performance-based 10% management tithe on all sales revenue, assets, retirement capital and credit dividends. So it is in their best interest to perform well, and run a tight ship to reach the ultimate peak performance in reaching a capital value threshold of $5,000,000, so that the 10% management tithe increases to a 20% management tithe from thereafter. This increase is covered by the increased capital value of the Working Cooperative and effective management. The management team strives to be accountable and transparent in it's fiduciary responsibilities, yet, still remaining private and confidential in it's operations, protecting the privacy, trade secrets, copy-rights and intellectual property of the entire organization and it's structure.
The overall retirement term is 30 years with the first 5 Years start-up period for forming, storming, norming and performing so to speak. Structure adjustment and a settling period, to a right of renewal every 5 years thereafter. When the cooperative first launches there will be a period of the gathering (forming) of the 1,000 Pledge Member's. When you bring 1,000 pledge member's into a cooperative business model, there is always differences in opinions (storming) over business work ethics, structure, cultural values and practices and there is always jump the rabbit, whats in it for me and I can do better attitudes. The truth is on the contrary, otherwise they would be doing it. When the pledge member's who generally realize, working as ONE unified TEAM (norming) together everyone can achieve more and cooperation, adjustment, trust and commitment creates a very successful venture (performing).
We are now recruiting small to medium-sized start-up and established businesses and their Directors on our Business Round Table of 1,000 segment seats. There will be an Upper House Board of Directors and a Lower House Investment Management Team consisting of 24 Elders in each respective house. They will be upright, righteous and diligent with years of experience in the successful management of their own businesses that are part of this very co-op. Syndicate 1000 Group is the revised version of Cooperative Capital Aotearoa. Our vision is to establish 1,000 Head Cooperative Syndicates with 1,000 Syndicate Share's Portfolio's with 1,000 pledge member's in each, providing lump sum venture capital pledges of $1,000NZD and a debt servicing term pledge of $10NZD a week ongoing. Accurate record-keeping is paramount for the success of any Working Cooperative, especially one that will encompass 1,000 Cooperative Syndicate's consisting of 1,000 Syndicate Portfolio's with 1,000 Members in each syndicate. This will launch our Cooperative Group of Companies, each with $1,000,000NZD start-up capital and $520,000 annual debt servicing capital per syndicate portfolio within each Working Cooperative. We invite strong leader's in their respected communities to put their best foot forward and apply within.
Our affiliate referral program sets the stage for our members to find 4 or more business-minded people within the first month of joining Syndicate 1000 Group in the first portfolio we called Syndicate 01. Members are the back-bone of any syndicate, they are business-minded with ideas and innovative concepts for start-up models for businesses looking for capital or have an established business within the co-op and the most valued commodity to the Company and it's Cooperative Syndicate(s). Each member joins a working cooperative that encourages ongoing participation in sponsoring pledge member's and promoting it's products and services to communities locally, nationally and internationally to generate revenue for their own businesses and their co-op. There is a future career opportunity for both consumer's and start-up and established small to medium-sized commercial businesses, that from the outset, is generally never realized and often missed by our pledge member's.
When we reach our target of 1,000 pledge members we will establish a new cooperative entity with it's own business bank accounts and 1,000 signatories. One Account for the $10 a week debt servicing, One Account for the $1,000 capital investment and asset procurement with retirement capital, and one account for general business activities for everyone's sales on the open global marketplace and purchases for themselves and family, benefiting from both world's with share margins. Members who promote, list, sell, buy, barter, refer, trade and exchange products and services of the syndicate company and it's group of companies, cooperating and sharing in upfront performance-based commissions, incentives and profit margins, paid monthly with capital credits shared annually.
Syndicate 1000 Group Private Contract Association and its Cooperative Business Alliance merges its systems with numerous affiliated business societies to create abundance, wealth and prosperity for all, ending poverty and oppression forever. A step by step process that assists people to rise up from darkness into the light. A Brand NEW Concept to bring communities together creating asset procurement venture capital to develop food, clothes, housing, business, utilities, agriculture, aquaculture, forestry, and general natural, capital and human resources in Aotearoa (Aotearoha). You are applying to be a shareholder in a shares portfolio as a joint venture with 1,000 other pledge members. Independent Business Owners joining forces and cooperating in supply an demand of combined products and services that share 50/50 profit share margins. Your Business might take a cut in profits initially, but the volume of sales out way the losses.
A Working Cooperative that earns incentives and up-front performance-based revenue shares of profit margins from product and service sales and affiliate referral marketing.
This website has an annual membership pledge of 0.015 btc (BITCOIN) or $120 NZD plus GST. The company is offering a special offer until XMAS to reimburse the pledge if any member refers 10 or more people within their first month of joining and invoices the company. This basically can be considered a 10% performance-based incentive.
You MUST be a Pledge Member of both the Syndicate 1000 Group and our Affiliate Referral Program, 4 Corners Alliance Group. Together they form the strategy of the Cooperative Syndicate and the 4 Corners Alliance Group is the platform that tracks genealogy down-line throughout your network. To keep our Syndicate moving forward, we expect ALL members to have their 4 plus pledge members registered on the one-time $28 USD affiliate referral platform of 4 Corners Alliance Group and registered on the Syndicate 1000 Group website to login. All members MUST have their $10 NZD weekly term pledge active or they will be suspended from participation with any Syndicate until remedied.
It is inevitable that when everyone does their part and completes their workload task, the $1,000 NZD and more for other strategies will be covered by the return on investment with our affiliate referral platform of 4 Corners Alliance Group, making this one of the most affordable Working Cooperatives in the world.
With our business model we believe it has the potential to create Millionaires within Syndicate 1000 Group over a long term, hence why we make a commitment for up to 30 years plus, to ensure our member's benefits are experienced by family members from generation to generation.
Gavin intends to provide 7 Strategies with 7 multiple income streams to 7 Pacific Island Nations throughout the Pacific Triangle of TE-MOANA-NUI-A-KIWA, from Aotearoha the Kingdom Of Heaven, the county of Jew Zealand on the continent of Lemurya. Later to the 7 seas and 7 continents to 7 Sovereign Native Nations, maybe with 7 Spanish Angels, 7 truly a divine number of completion now moving to 8 the resurrection and new beginning of a new order or creation and the start of abundance, wealth and prosperity.
To get started..... 1,2,3 - Ready, Set, Go.....
First start your $10 NZD a week term pledge for 30 years with 5 year right of renewals. Complete your EXPRESSION OF INTEREST.
You will notice the affiliate marketing platform setup cost has increased to $28 USD One-Time Payment, not $18 USD. Transparency is important to us from the outset.
Join 4 Corners Alliance Group for a one-time $28 USD and set up 4 New Members within 2-4 weeks of joining into the program, which are the same 4 New members in Syndicate 1000 Group. We have a "Pay It Forward" strategy that costs $140 USD that covers the cost of you and your 4 pledge members to assist the process. (if you choose) By paying your pledge members setup cost in advance, encourages them to do the same and the process moves more swiftly. Being focused on business-minded people who is our target market.
Earn exponential rewards in 4 Corners Alliance Group that can be transferred from their US e-wallet account system to your NZ bank account and other crypto-currency accounts to cover your $1,000 NZD capital pledge. We are all about multiple income streams, so count the costs. More strategies to follow.
What will it cost for the initial set up?
The program Gavin has created can cover costs entirely and gives you a far greater return (anticipated over $500,000 return) and you can start in increment steps with as little as $10 NZD a week, but transparency shows currently you are probably looking at an up-front initial out of pocket expense outlay of $1,876 NZD or $40 NZD a week for One Year Only and an approximate $3,900 NZD or an ongoing commitment of $75 NZD a week until further notice up to a 30 year term that can be purchased outright for $117,000 for the entire 30-years (from your returns), from the starting date of the Syndicate to full-term maturity at 23 September 2048, less any contributions already made for an early settlement with 100% vote at each 5 year interval right of renewal. The only problem is the early settlement means less return as your returns are on capital growth over time on your venture capital. As a Working Cooperative we work together as a TEAM, encouraging one another so we all make it to the end results at the finish-line. Nobody will be left in darkness while walking among other lights. The company is determined to help all businesses achieve sales volume from the network of members and as the memberships flourish, we will provide new and exciting innovative and creative ways to succeed. A new change to the norm of what this current system has to offer. Below are 7 income streams Gavin Marsich is starting with Syndicate 1000 Group. He invites you to be part of his growing family. More strategies will follow....
There will be an out of pocket expense of $28 USD ($45-$50 NZD) pledge (hypothecate) for the network platform with the Four Corners Alliance Group. This is where your 4 or more new members join your team within the first 2-4 weeks of you joining. This site can also provide a return of up to $559,824 USD to you directly that can alleviate any other costs below. It is through our Syndicate 1000 Group that our members have greater success, so we invoice a 10% management tithe for the use of our network of people and its strategic programs. This is how Syndicate 1000 Group subsidiary to Global Advertising Internet Network Limited provides a return to our members. (Conditions Apply)
Please take note that Global Advertising Internet Network Limited deals mostly in a virtual world of digital currencies like BITCOIN, (TBC) THE BILLION COIN and CREDIT on their very own credit exchange that is totally private and exclusive to members. A decentralized system that is not controlled by any government or the elite banking cartel.
There will be an out of pocket expense of 0.015 btc (Bitcoin) pledge or $120 NZD plus GST for the annual membership pledge to Global Advertising Internet Network Limited and the use of it's website, program, strategies and products and services in its e-commerce store. This can be reimbursed entirely if any member introduces 10 or more new memberships within the first month of joining in any given fiscal year, being based on 10 new members it is an incentive reward valued at 10% return.
There will be an out of pocket expense of 0.010 BTC (Bitcoin) pledge, worth currently as of 6th October 2018 of $110-$120 NZD to set up a Managed Funds Portfolio to also assist with covering costs. Gavin has strategies to increase the value of bitcoin, therefore creates a syndicate portfolio for a 50/50 Joint Venture. Member puts up the 0.010 BTC or $110-$120 NZD and Gavin Marsich works the account (as his share of the joint venture) with his skill in crypto-currency. This is a personal and private venture that Gavin does as a hobby and is transparent about this in the joint venture agreement.
It is through the Syndicate 1000 Group that our members have greater success, so Global Advertising Internet Network Limited, invoices a 10% management tithe for the use of our network of people and strategic programs. This is on all online money-making strategies.
(Conditions Apply)
There will be an out of pocket expense of $10 NZD for a weekly term pledge or $520 NZD annually until further notice (30-year term, 5-year right of renewal intervals) with a share of retirement capital that goes to a debt servicing account for asset procurement and community project investments we vote on. This includes revenue increasing portfolios to capitalize on the existing $10 NZD revenue streams coming in. Gavin is focused on money-management concepts and accountability to maximize returns for the Syndicate and its members. The higher the balance the more profit to share.
There will be a one-time out of pocket expense of $1,000 NZD for a capital pledge for a 30-year term, 5-year right of renewal intervals on an assets procurement and community project investments account with a share of retirement capital, a return for members or their children's, children for a thousand generations of bequeathing.
There will be an out of pocket expense (undisclosed) for sales of products and services purchased or sold within the Working Cooperative that you share 50/50 in the profit margins with your direct up-line, being your Syndicate on sales you personally introduced.
We are making the move into a virtual world of digital currency with Global Advertising Internet Network Limited and its economic trading and membership support network platform called Godzone Credit Exchange. There is a monthly 20 €Euro Dollars or 240 €Euro Dollars annual ($40 NZD approx or $480 NZD) platform service charge, being one-year in advance until further notice. Everyone receives a 10 Million Credit business start-up for inviting 10 or more New Memberships within the first month of joining. This provides the opportunity for virtually FREE trading locally, nationally and internationally. Credits are covered by a true intrinsic trading instrument value of a common law commercial lien over all the governments of the world. It is the NEW GLOBAL RESET everyone has been waiting for.
A late addition to the fold is "The Billion Coin" or TBC as many know it. An abundance coin with a maximum cap of One Billion Dollars per COIN. Value increases with membership at 1% - 5% Daily. There is a $10 USD ($20 NZD) one-time admin fee. We suggest to refer as many people as you can to receive 25,000 Kringle CASH that is exchanged into coin value. Gavin started in June 2017 and invested $150 USD ($250 NZD), signed up over 100 people and paid the admin fee. He is now working on signing up another 100 people, investing another $150 USD ($250 NZD) to increase his current value of over $120 Million in TBC Value to exchange with his very own CREDIT's on his global platform of digital currency. This is a new concept but you have to be in to win right. On 17 March 2010, the now-defunct BitcoinMarket.com exchange is the first one that starts operating. On 22 May 2010, Laszlo Hanyecz made the first real-world transaction by buying two pizzas in Jacksonville, Florida for 10,000 BTC. In five days, the price grew 900%, rising from $0.008 to $0.08 for 1 bitcoin. Look at the value now.
We are primarily a digital currency organization but we still allow room for the soon to become obsolete world of fiat currency that we all know holds only perceived value of the people and their belief system of product and service exchange.
As 50% of our funds will be debt-based we lock down the best strategies to secure competitive interest rates, maximize income, minimize expenses, minimize interest and save tens of thousands of dollars to maximize asset procurement and capital growth for our members to increase their share holdings over a 30 year term with right of renewals every 5 years.
To get access to the website, requires an expression of interest, a commitment to the term and capital pledge program and your commitment to sharing in the workload of inviting 4 or more people to this opportunity within the first 2-4 weeks of joining. Complete the Expression Of Interest form to get access to some of Gavin's strategies and start a payment program today.
Here is one of Gavin's strategies with our 4 Corners Alliance Group. A simple concept when you join Syndicate 1000 Group and setting up your $10 NZD weekly term and $1,000 NZD capital pledges to lock a position in a syndicate portfolio. Invite 4 or more people within the first 2-4 weeks of joining and they will do the same. Start purchasing or selling products and services from the website to earn profit margins. Everyone has to join 4 Corners Alliance Group for the affiliate marketing platform for Syndicate 1000 Group. It costs a one-time setup of $28 USD. Your earnings purchase digital products over 6-Levels and the profit is what gives you a financial return. Crowdfunding for business start-ups is legal in the United states.
The Jump-start Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of small businesses in the United States by easing many of the country's securities regulations. It passed with bipartisan support, and was signed into law by President Barack Obama on April 5, 2012. Four Corners Alliance Group is a US Company, so as long as you pay your taxes on your funds received before you transfer into your New Zealand account, we are all covered.
This is simply a numbers game. If everyone completes their task of getting 4 or more people to invest $28 USD ($45-$50 NZD) for Four Corners Alliance Group, pay their up-front annual membership pledge of 0.015 btc (Bitcoin) or $120 NZD plus GST and add ($110 NZD) or 0.010 btc (Bitcoin) for their personally managed Bitcoin crypto-currency funds account to Global Advertising Internet Network Limited and start their $10 NZD weekly payment to Syndicate 1000 Group's, Syndicate 01 Account within 2-4 weeks of joining, you can see returns in your back-office USD e-wallet account immediately when people you invite joins and registers.
It is anticipated with our program that within the first 90-Days, you may have returns to cover your $1,000 NZD capital pledge, the up-front annual platform fee to the Godzone Credit Exchange and much, much more (Refer to the instant commissions chart above). Make more pledges to secure more positions within the syndicate portfolio and secure retirement capital for yours or your grandchildren's future and immediate returns on sales now. Go ahead, join 4 Corners Alliance and Syndicate 1000 Group's Today!
Manufacturer's and Supplier's share margin's 50/50 with Global Advertising Internet Network Limited (The Company). They share their margins 50/50 with Syndicate 1000 Group who share their margins 50/50 with the Cooperate Syndicate's. They then share their margins 50/50 with the Pledge Member's. Whoever makes a purchase for themselves or sells products and services to someone else, the entire up-line from that person, benefits from a share of the margins. Obviously the higher up the ladder you are the more commission you make on the sale. All of which is secured with monthly invoices before the Syndicator Company releases any commission payments. The before will apply to service businesses sharing their profit margins as well. Business sales volume that everyone from the community shares in, providing equality when listed through the company, everyone gets it for the same price and the willingness to help fellow members to succeed because we have an invested interest of 50/50 in their business. Surely a win, win for all.
Each syndicate will be made up of members that may or may not personally know each other, but have been collectively assembled together for a cooperative purpose. They meet to form the foundation of their co-op of 1,000 pledge member's to establish a Syndicate in partnership with the designer of the revised cooperative capital aotearoa concept, the Guardian Syndicator, Gavin Marsich of Global Advertising Internet Network Limited who is 100% Shareholder and Founder of the Syndicator Company.
When members join and make the pledge, they will have written contracts that outlines their duties, obligations and responsibilities to each syndicate they are member's too. Members shares are based on members ownership of pledges and their obligations and commitments to the cooperative. The pledge(s) give voting power at monthly events, the more you own the more votes you have in the decision making process of the syndicate, up to a maximum of 10 votes.
You get to vote on the top (5) five investment opportunities at these monthly events where the majority of votes win. Primarily it is your collective decision(s) on what your syndicate invests in and how it uses your share of the venture capital and how it impacts you and the community you live in, but typically provides a much better return on investment than that of a traditional bank investment or cash deposit account. The structure however will be 50% equity-based and 50% debt-based split into (3) three defined areas with 20% towards start-ups, 40% Real Estate and 40% established small to medium-sized businesses in your area. This is where communities bond together and become stronger, when neighbors have an invested interest and share in the opportunities in or around their communities.
The co-op is a 24/7 job, offering unlimited opportunities. You are even earning while you sleep as your products and services are displayed in advertising blocks 24-hours a day, 7-Days a week. It takes a huge lifestyle adjustment to the way most people traditionally do business or even the way most people can even comprehend. People are the greatest commodity of this realm. Without them it would be a desolate waste land. However, they have proven to be the most treacherous, destructive, war-mongering, segregated creatures on this planet, separated from reality and disillusioned by years of brain-washing and conditioning. Many feel alone, lost in a world of chaos and dismay, suppressed and oppressed by the greed of the elite puppet-masters. But we are on the mend, We are standing to attention. We are fighting back. I say, "RISE UP" from the ashes like a phoenix and we'll do it 1,000 times again. Take back what was always ours. Forgive, forget and move forward, one small step at a time. We will learn to trust again. We are survivors, being empowered by a few. I want to be empowered by you. Yes you the people. We 'the people'.... It's all about 'the people', "the people, the people, the people".
"He Tangata, He Tangata, He Tangata".
Global Advertising Internet Network Limited the Syndicator Company, shares margins with manufacturer and suppliers, less delivery costs and taxes of it's listed products and services on it's Company Websites, Social Media Pages and in Stores and Warehouses across the nation. As the Syndicate expands business activity increases with volume sales, allowing us buying power to bring prices down creating a price war that pushes for fair and equitable values. We envision our buying power will see us getting deals with local stores, community food markets, petrol stations, trade services, vehicle dealerships, real estate agencies and much more. Hence why Gavin Marsich will be researching technology to encompass our profit share (%) percentage margin formula's, to maximize our margins by running a tight ship.
If you are joining a syndicate and you are a start-up or established business that would like more sales volume and you can share your margins 50/50 and meet the expectations of the Syndicator Company, then joining the Cooperative Business Alliance is definitely the way to go. Gavin wants all the small to medium-sized businesses to unite and become syndicate co-op's. All it costs is $1,000NZD down and $10NZD a week ongoing to get started. Everyone helping each other to grow and rather than taking a big bite of the elephant and causing it to charge at you, we become the mouse that was asked, "How do you eat an elephant?", the reply was, "One little piece at a time". Taking smaller margins but getting volume business within a collective group of companies called a working co-op of pledge members uniting in global trade and sharing resources to reach the highest goals together. It's called "SMART" Business.
Although we are involved publicly with our communities, business remains in the private, in the clouds of online servers where online shopping is the "NEXT BIG THING" and many of our members are our suppliers of most of our products and services for commercial barter and trade. They are also our consumers that keep their business in-house, only shopping from within the co-op as true supporters of their own businesses where a profit share is made. Truly a working community bonding together and sharing in the spoils.
We do not believe this is a big ask as it is our membership network purchasing from within it's own business network establishing volume, creating buying power whether at the start of a syndicate or at the end of it. We also expect suppliers to be drop-shipping their products direct to our customers door via track and trace courier delivery services. By forging strong relationships between the syndicator company and merchant, the merchant could supply merchandise FREE to our warehouses under an insurance policy for faster service and delivery times, retaining our customers. If a customer is happy they will be repeat shopper's. We try to be competitive, listing the same price as other retailers, but on many occasion we are higher because of GST and delivery charges. This is inevitable with online purchasing and the nature of the beast so to speak.
However, if people take into account, driving to the mall, the time to shop, purchasing items they really didn't want because it was eye candy, lugging the family around and possibly going to the food mall because everyone is tired and hungry, the stress and the costs, our products purchased for a few extra dollars more, online with us, works out to be much more affordable. As a member it is also much better to purchase from yourself and your own Cooperative Syndicate as you are a member that shares in it's profit margins, which really is a discount in anyone's book.
STOP purchasing someone else's products and services, giving away your money to outside competitors that could have helped you, other pledge members, your own co-op, the syndicator company and the manufacturer/supplier within the co-op network you belong too.
As a working cooperative, members increase the revenue of their syndicate(s) by the business activity they are actively involved in, providing a share of the commission to their syndicate and upfront commissions for themselves which can cover any initial outlay. The more you do, the more you get out of it but in doing so the syndicate get's a (%) percentage share of each sale of the products and services you actively promote, list, sell, buy, barter, refer, trade and exchange that you are a beneficiary of when assets accumulate and increase in value. At some time in the future (if and when that happens) the shareholders decide on winding the syndicate down, the assets are sold, shares are disbursed and the syndicate is closed for business entirely. It will be the board of directors, made up of directors from the co-op companies within our network that will decide on the shares disbursement each member get's, as it will be based on productivity and effort each member proactively participated in. If you are a businesses that requires more sales, then a cooperative is the answer and for an individual, the opportunities of employment and contracting will be endless.
Each syndicate will have access to the Syndicator Company and it's Group of Companies products and services within the co-op network during the contractual term of engagement. These contracts can be terminated if there are any breaches. If the before occurs, the Syndicator Company will step into the terminated position and resume the responsibility of it's membership.
Each syndicate will be managed by the Guardian Syndicator under the Syndicator Company for the duration of the syndicate(s) life, even when it forms it's own entity. The Guardian Syndicator or Syndicator Company can never be over-thrown or voted out of office. The Guardian Syndicator of the Syndicator Company is 100% Shareholder and founding initiator of Global Advertising Internet Network Limited and each syndicate will be a subsidiary group in a group of cooperative's that the Guardian Syndicator and Syndicator Company will be a shareholder. This by no means, give's any pledge member the idea that they are shareholders of the Syndicator Company, Global Advertising Internet Network Limited as Gavin Marsich is the 100% shareholder of the Syndicator Company with a private discretionary trust will and testament that has succession trustees and beneficiaries. The Syndicate has only been initiated by the Syndicator Gavin Marsich under the umbrella of an advertising, sales and marketing company that was established 26th January 2012. Other subsidiary business concepts that are owned my Gavin Marsich are also part of the cooperative and form the foundation blocks of Global Advertising Internet Network Limited. The syndicates bank account initially is a subsidiary bank account of the company and the concept is owned by the Syndicator Gavin Marsich.
The syndicate is not designed for profit necessarily, but for creating better employment opportunities, trade & commerce, cooperative industry, improving environment, agriculture, fisheries, natural energy, education, transportation, waste management, housing homeless, produce markets, developing community projects and generally bringing people together more under a divine governance, out of the private into the public working in cooperative communities around Aotearoa and eventually around the world to end poverty and oppression forever.
If after a minimum of (5) five years the members quorum of 80% votes to wind the Working Cooperative Syndicate down, then all assets will be sold and each pledge member will receive their share of the remaining equitable value after costs as a shareholders dividend. Then the cooperative syndicate share's portfolio will resume under new syndicate pledge member's. Each share will be offered for sale to other syndicate's to take over your share's or offered to the open market for public offering. This process may take some time as it is always a drawn-out lengthy process.
It is the interest of the Guardian Syndicator and the Syndicator Company to reach a goal of 144 Syndicates with 1,000 pledges each, a divine number we would like to reach, consisting of business owners, each with a pledge, a profile and a business of their own that intends to establish their own syndicate 1000 groups to set the world stage for a GLOBAL RESET of the 144,000 Saints.
Cooperative Capital Aotearoa set the bench mark for the concept of Syndicate 1,000 Group. It lets a community of people pledge small amounts of money, vote on how they want to use it to generate returns with a focus on improving their neighborhood, community or city.
The only commitment to secure your portfolio segment(s) initially is the weekly $10 contribution pledge to start from the launch date and first depositor of any new syndicate portfolio, who is normally the Syndicator Gavin Marsich. Each syndicate portfolio consists of 1,000 pledges of members of each syndicate. When each syndicate portfolio reaches it's desired target, a New Syndicate Portfolio is established. If however, Gavin Marsich can find suitable candidates to establish syndicate portfolio's with 1,000 pledge member's in each, the cooperative industry will develop much sooner, catering for the growing interest in the Working Cooperative model. These manager's will manage their respective syndicate portfolio's and share 50/50 of the 10% management tithe and the increase to 20% when the threshold of $5,000,000 is reached that the Company receives. Everyone is a winner and nobody is left behind when each member of the cooperative receives a share of the margins. No matter what date you start to the build-up to the 1,000 pledges, your $10NZD contribution pledge will always be back-dated to the launch date of any New Syndicate, so that it keeps everyone on an equal footing and each individual member has equal opportunity to excel in a working cooperative. The $1,000NZD Capital Pledge will be required when we reach 1,000 pledges or before, secured at a meeting of people who have made their $10NZD a week contribution term pledge and locked in 4 friends per segment they own. We are clear about our motives to establish a joint venture. Therefore we expect the pledge member's commitment from the outset with an up-front $1,000NZD immediately or as soon as possible before they have any say.
PLEASE NOTE:
It is clear we have altered the original concept slightly to encompass 1,000 pledge member's contributing a 1% or $10NZD weekly ongoing contribution pledge on each portfolio segment block to create an income base for each shares portfolio syndicate trust for future debt servicing account for borrowed equitable funds and an upfront $1,000NZD Capital Pledge to procure assets and profitable investments for a retirement fund and added the affiliate referral program of securing 4 or more pledge member's within the first month of joining to share the workload equally among the member's so there is no animosity later.
An investment committee will review and rate all opportunities, and the larger group of investors will vote on the top (5) five. The winning choices will go into a due diligence stage, in which Company Syndicator will determine if the investment can produce at least a 6% annual rate of return.
Gavin Marsich is also seeking to establish a syndicate for overseas migrants to establish a portfolio with much higher term and capital pledge stakes, being an amount of $10,000 ongoing weekly term pledge and a lump-sum amount of $1,000,000 as the capital pledge. The stakeholders can include current cooperatives anywhere in the world that would like to establish a market in Aotearoa (New Zealand) but under the Syndicator Company's management and control and not monopolized by any one cooperative but a collective group of cooperatives. This will have a Syndicate with venture capital of 1 Billion Dollars with 520 Million in annual term pledges plus any member(s) activity and commission shares. Interested parties need to immediately express their interest in private to Gavin Marsich and the Syndicator Company. This opportunity can also extend to any syndicate here in Aotearoa (New Zealand) with their current model that allows them to front up with their $1 Million Dollar capital pledge and their $520,000 annual term pledge with their business activity supporting their current syndicate for return on investment.
The Member/Shareholder owns a share(s) of each portfolio and its assets which includes its debt servicing account that is used for asset procurement. The working co-op and it's business activity from shared margins will create an operations account and any annual profit after expenses will provide a dividend share for each portfolio segment the Member/Shareholder owns. Membership to the Co-op is voluntary and if and when a member wishes to resign or be removed from the syndicate and its commitments, their share(s) will be offered first to the Syndicator, Gavin Marsich, then to the Syndicate of shareholders if the Syndicator declines to purchase.
Although the fund will focus initially on syndication in real estate to buy, renovate, sell or lease to own under property management, the same model can be used to invest in local established businesses and new viable start-up concepts that show good future returns. A new coffee shop or restaurant that might struggle to get capital from a bank could potentially get an investment from the fund–which would then share revenue with investors as the business grows.
“That’s where we could really use the power of that large base of people investing and then having an incentive to actually frequent those places to reap a benefit and return on investment,” says Gavin Marsich. When people individually benefit, so will the community; local businesses create jobs and recirculate money within a city, and refurbished homes help increase property values for neighbors.
The fund will allow a group to collectively use the aggregated capital in the way they think is best–and will help focus that larger group on solutions. All members would be required to refer 4 or more people to help grow the collective membership to increase capital for asset procurement that provides good returns and future job opportunities within a cooperative business alliance where our members benefit.
The term of each Syndicate Portfolio is 30 years with 5 year increments of right of renewal of a further 5 years and so on. (Indefinite by choice). All members get a vote, based on the amount of pledges they own. One pledge, one vote up to 10 votes. An 80%+ quorum vote will be required for any winding up of any syndicate portfolio before term maturity. All other general meeting votes will be majority rule and when 50/50 the deciding vote will be the Syndicators. Each member that does not vote, that vote will be allocated to the Syndicator to use or not use in a decision making process. So we encourage you to vote, whether by deed poll sent in an email or Facebook page or at an actual monthly meeting. Four (4) meetings, 5 Hour sessions will most likely be split over a 2-Day weekend from 8:00am to 1:00pm and 3:00pm to 8:00pm and will be hosted by Coffee Outbreak Network Group at their venues throughout Aotearoa with (250) limited number of seats at a pre-booked cost of $200NZD a seat for business networking, presentations, financial updates, co-op news, one (1) minute introductions for new and existing business members, product and service sales promotions during which referral names are passed around and business card box is topped up, a paid $100NZD pre-booked slot time for (20) minutes for any business that would like a personalized promotional presentation on their own specific business, breakfast/lunch/dinner to list, sell, refer, promote barter, trade and exchange. The meetings will be videoed and MP3/MP4 and Youtube Video files will be available for sale at event venues and online. Seats for up-coming events are pre-booked and paid for before the next session. Each session has limited seats depending on size of venue, so there will be session times available throughout the event day. Laptop Computer use will be available in our internet café setting. The investment and management committee provides up to 5 investment options to vote on in monthly breakfast meetings where business will be conducted with Coffee Outbreak Network Group.
In summary, The $10 NZD supports any debt servicing, the $1,000 NZD supports capital assets for retirement capital, the product and service sales, supports member’s and the co-op and the business meeting support business trade activity. Share dividends of Capital Credits from the business operations account (if any) will be available after each audit of the previous fiscal year and disbursed at the appropriate time. These shares will be proportioned on performance-based income contributed by each member individually during the fiscal year. Within the working cooperative. The more sales, the more upfront monthly share margins for everyone and the more individual dividends each year. The debt servicing account and asset procurement holdings account has a 30 year term for retirement capital and will be disbursed after auditing and calculations in equal shares at the appropriate time.
Do you need a job?
Consider the possibilities with the Cooperative. As shareholders you will have each opportunity pass by you at each meeting you attend. These meetings are breakfast business network gatherings with Coffee Outbreak Network Group. If an opportunity arises for a Working Cooperative, we are certain to look for the experience within, rather than go to external human resource agencies.
Do you have an established business model or have a promising start-up concept in the pipeline?
Like above, we certainly keep things in-house. Working together everyone achieves more. Simply talk to the Syndicator Gavin Marsich, our Business Consultant to plan forward how best your business can benefit you and the Cooperative. Those who fail to plan, plan to fail. Get your business ideas and business plan on the table for complete transparency and due diligence and then take action, implementing your plan step by step.
The Syndicator Gavin Marsich, guardian of Global Advertising Internet Network LTD, acting as an umbrella company for Cooperative Capital Aotearoa and it's concepts, cooperative business alliances, segmented portfolio syndicates, strategies etc; will charge an upfront consultation fee for his advice but it is well worth the time and money that starts at $500.
Global Advertising Internet Network Limited (GAIN) and (CCA) the revised version of Syndicate 1000 Group is a socially responsible pledge fund that invests in cooperative businesses in the form of "patient capital,” or equity-like financing. GAIN assists the New Zealand cooperative industry to grow and flourish by providing capital that acts like equity without requiring coops to give up control over their own management and destiny, as traditional venture capital might.
MISSION
GAIN supports new and existing, cooperative and democratically owned and controlled enterprises, with preference to those that serve low-income communities. GAIN shall accomplish its mission through:
- the provision of equity-like capital at reasonable rates and terms, with respect for the democratic owners and managers of the enterprise;
- the development of an investment opportunity that promotes cooperative enterprise;
- the creation of a mechanism through which cooperatives can invest in the development and expansion of cooperative business in our region; and
- the creation of an opportunity to Invest for “social return” in addition to economic return; and
- the opportunity for a working cooperative with member's actively purchasing or selling only from within the network and earning a share of margins; and
- the opportunity to build community housing projects where members are the tenants
It is the intent of GAIN to build a more just economic system by:
- creating the possibility for systemic change that lifts people out of poverty;
- opening up conventional capital markets for cooperative businesses previously left out;
- and supporting and sustaining cooperative businesses that provide environmental, economic and social benefit.
GOALS
The central goals of GAIN's initial fund are as follows:
- To catalyze and deepen the core mission of GAIN by providing much-needed and currently unavailable capital to new and existing cooperative businesses in New Zealand;
- To create a duplicatable model that can be learned from and repeated in-house as well as applied in other geographic regions and eventually on a national and international scale;
- To cultivate continued cross-communication, cross-investment and activism within the Cooperative community;
- To provide cooperatives, and other socially responsible investors with the opportunity to earn fixed-rate financial returns while making direct investments in cooperative businesses, and help realize the development and expansion of a cooperative economy; and
- To increase the exposure of GAIN and cooperative businesses within the financial, charitable and cooperative communities, attracting further investments and grants.
- To set up 144 of these syndicate 1,000 groups with manufacturing, natural, capital and human resource businesses as part of the cooperative that gets members of the community taking ownership and pride in this joint venture.
- To create a reverse funnel, self-funding, self-reliant and self-sustainable global empire of cooperative syndicates investing in human, natural and capital resources that benefits mankind, the care-takers over this dominion to co-exist with other living entities in love, peace, harmony and abundance.
Cooperative Businesses Alliance
VIRTUAL WORLD IN DIGITAL-CURRENCY
Global economic advertising & trading exchange.
The Billion Coin Crypto-Currency Network
Business Speed Networking
Other Cooperative Companies
BUSINESS BREAKFAST NETWORKING
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CRYPTO-CREDIT ADVERTISING EXCHANGE
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REAL ESTATE BUSINESS MATRIX
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E-COM PRODUCT DROP-SHIPPING
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MORTGAGE & DEBT ELIMINATION
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RECRUITMENT & MANPOWER OUTSOURCING
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HVAC & INSULATION
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LEASEHOLD CABIN PARKS
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SYNDICATE HOUSING
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VEHICLE IMPORTERS
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MARKET STALLS
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Syndication
Lease to own
DEFINITION of 'Lease Option '
An agreement that gives a renter the choice to purchase a property during or at the end of the rental period. As long as the lease option period is in effect, the landlord/seller may not offer the property for sale to anyone else.
When the term expires, the renter must either exercise or forfeit the purchase option. A lease option gives a renter/potential buyer more flexibility than a lease-purchase agreement, which requires the renter to purchase the property at the end of the rental period.
BREAKING DOWN 'Lease Option '
The property owner may charge the renter a premium for the option to purchase the property, perhaps in the form of higher (above market value) monthly rental payments. The property owner may opt to apply some of the higher rental fee toward the purchase price if the renter exercises the option.
Any premium will likely be forfeited if the option is not exercised. The term of the option may be any period on which the property owner/landlord and potential purchaser/renter agree, but is commonly one to three years. The lease-option property's purchase price may be determined either at the outset of the agreement or at its conclusion.
Fixed Price Purchase Option
The right, but not the obligation, to buy a leased item at a predetermined price. With a fixed price purchase option, the purchase price is established when the lease terms are agreed upon. The lease agreement should also describe when the option can be exercised (usually at the end of the scheduled lease term). Types of property that may come with fixed price purchase options include automobiles, real estate, businesses and heavy equipment.
BREAKING DOWN 'Fixed Price Purchase Option'
The advantage of the fixed price purchase option for the lessee is that the lessee knows with certainty what the cost to purchase the property will be. By contrast, with a fair market value lease, the consumer also has the option to purchase the leased item at the end of the lease term, but the price will be the item's fair market value at the lease's expiration. The consumer will not know in advance how much the purchase price will be.
Lease Rate
The amount of money paid over a specified time period for the rental of an asset, such as real property or an automobile. The lease rate that the lender earns from allowing someone else to use his property compensates him for not being able to put that property to another use during the term of the lease.
BREAKING DOWN 'Lease Rate'
In commercial real estate, the lease rate is commonly stated as a dollar amount per square foot of space per year. To get a true idea of the cost of renting a space, in addition to the lease rate, the potential tenant will need to know if the lease is single, double or triple net. In other words, whether it is he or the property owner who will be responsible for expenses such as utilities, maintenance and property taxes.
Income Property Mortgage
A loan given to an investor to purchase a residential or commercial rental property. Income property mortgages are typically much harder to qualify for and often require a borrower to include estimates of the rental income that will be received from the property. Unlike owner-occupied and single-family residences, there are few government loan programs to assist in the purchase of income properties. This leaves investors at the mercy of private lenders, who themselves are at the mercy of the credit markets.
BREAKING DOWN 'Income Property Mortgage'
Owning a rental property is one of the most common real estate goals of individual investors. Accomplishing this goal however, is much harder than the late-night infomercials would make it seem. The biggest hurdle in acquiring rental properties is securing an income property mortgage, which generally requires a larger down payment than the purchase of a primary residence. Typically, an income property mortgage requires a larger down payment relative to personal home mortgages.
Call Over
When the buyer of a call option exercises the option. In options trading, the buyer of a call option can exercise his or her right to purchase or sell the underlying asset (such as a stock) at the exercise price or strike price.
BREAKING DOWN 'Call Over'
Buyers of options can either exercise their right to buy the underlying security or they can let the option expire worthless. A call over can take place throughout the life of the option until the exercise cut-off time that falls on the last trading day prior to the option contract's expiration.
Investment Property
Investment property is real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both. An investment property can be a long-term endeavor or an intended short-term investment such as in the case of flipping, where real estate is bought, remodelled or renovated, and sold at a profit.
The way in which an investment property is used has a significant impact on its value. Investors sometimes conduct studies to determine the best, and most profitable, use of a property. This is often referred to as the property's highest and best use. For example, if an investment property is zoned for both commercial and residential use, the investor weighs the pros and cons of both options until he ascertains which one has the potential for the highest rate of return, and then utilizes the property in that manner.
Difference Between Financing a Home and an Investment Property
While borrowers securing a loan for a primary residence have access to an array of financing options, including FHA Loans, VA Loans and conventional loans from a variety of banks; in most cases, it is more challenging to procure financing for an investment property than for a primary residence.
In particular, insurers do not provide mortgage insurance to investment properties, and as a result, borrowers need to have at least 20% down to secure bank financing for investment properties.
Additionally, to approve borrowers for a mortgage for an investment property, banks insist on good credit scores and relatively low loan-to-value ratios. Some lenders also require the borrower to have ample savings to cover six months' worth of expenses on the investment property.
Reporting Earnings From Investment Properties
If an investor collects rent from an investment property, the Internal Revenue Service (IRS) requires him to report the rent as income, but the agency also allows him to subtract relevant expenses from this amount. For example, if a landlord collects $100,000 in rent over the course of a year but pays $20,000 in repairs, lawn maintenance, and related expenses, he reports the difference of $80,000 as self-employment income.
Capital Gains on Investment Properties
If an individual sells an investment property for more than he purchased the property, he has a capital gain and must report these earnings to the IRS. As of 2016, the agency taxes these gains at a rate ranging from 0 to 15%. In contrast, if a taxpayer sells his primary residence, he only has to report capital gains in excess of $250,000 if he files individually and $500,000 if he is married filing jointly. The capital gain on an investment property is its selling price minus its purchase price minus any major improvements.
To illustrate, imagine an investor buys a property for $100,000 and spends $20,000 installing new plumbing. A few years later, he sells the property for $200,000. After subtracting his initial investment and capital repairs, his gain is $80,000.
Lease/Rent-To-Own
In a traditional home purchase, an offer is accepted, the buyer and seller meet to exchange funds and settle final costs, and, at the close of the transaction, the property and its title change hands. Typically, buyers use a mortgage to finance the bulk of the purchase.
But sometimes there is an alternative way to buy a home; a rent-to-own agreement, also called a lease option or a lease-to-own agreement. When buyers sign this kind of contract, they agree to rent the home for a set amount of time before exercising an option to purchase the property when or before the lease expires.
It’s not a common way to purchase a property, and the selection of rent-to-own properties is tiny compared to the selection of properties available purely for lease or sale. In addition, rent-to-own contracts tend to favor the owner/landlord and can put renters at a disadvantage.
Read on to find out how rent to own works, and when it may be a good choice for a potential homeowner.
How Rent to Own Works
In a rent-to-own agreement, potential buyers get to move into a house right away. While many states have their own regulations, and no two rent-to-own contracts are alike, someone in a rent-to-own agreement typically rents the property for a set amount of time (usually one to three years), after which he or she can purchase the house from the seller. It’s not as simple as paying rent for three years and then buying the house, though. Certain terms and conditions must be met, in accordance with the contract.
Option Money: In a rent-to-own agreement, the potential buyer pays the seller a one-time, usually non-refundable lease option fee called option money or option consideration. As with stock options, this gives him or her the opportunity to purchase the house in the future. It is important to note that some contracts (lease-option contracts) give the potential buyer the right but not the obligation to purchase when the lease expires. If he or she decides not to purchase the property at the end of the lease, the option simply expires. If the wording is "lease-purchase," without the word "option," the buyer could be legally obligated to purchase the property at the end of the lease. Clarifying the wording is one of many reasons buyers should have the contract vetted by a real estate attorney before agreeing to it.
The size of the option is negotiable. There's no standard rate. It typically ranges between 2% and 7% (3% is common) of the purchase price. In some (but not all) contracts, all or some of the option money may be applied to the purchase price at closing. That's a valuable clause. Consider that if a home has a purchase price of $200,000 and the higher 7% option consideration, the buyer would need to pay $14,000 up front. That's a lot less than the $40,000 (the size of the standard 20% down payment) you'd make if purchasing outright.
Purchase price: The contract will specify when and how the purchase price of the home will be determined. In some cases, the buyer and seller agree on a purchase price when the contract is signed – often at or higher than the current market value. In other situations, the buyer and seller agree to determine the price when the lease expires, based on market value at that future point in time. Many buyers prefer to “lock in” the purchase price if possible, especially in markets where home prices may be increasing.
Rent: During the term of the lease, the potential buyer pays the seller a specified amount of rent, usually each month. In many contracts, a percentage of each monthly rent payment, called a rent credit, is applied to the purchase price. For example, assume the contract states that the buyer will pay $1,200 each month for rent, and that 25% of that will be credited to the purchase. If the lease term is three years, the buyer will earn a $10,800 rent credit to apply toward the purchase ($1,200 x 0.25 = $300; $300 x 36 months = $10,800). Factoring in these credits often makes the monthly payments slightly higher than the “going rate” for regular rentals. For the buyer, they act as down payments on the property. For the seller, they act as compensation for having taken the property off the market.
Maintenance: Depending on the terms of the contract, the potential buyer may be responsible for maintaining the property and paying for any repairs, homeowners association fees, property taxes and insurance. Because the seller is ultimately responsible for association fees, taxes and insurance (it’s still his or her house, after all), the seller may choose to cover these costs. Even in that case, the buyer still needs a renter's insurance policy to cover losses to personal property and provide liability coverage if someone is injured while in the home or if the buyer accidentally injures someone.
Be sure that maintenance and repair requirements are specified in the contract. Maintaining the property – e-g., mowing the lawn, raking the leaves and cleaning out the gutters – is very different from replacing a damaged roof.
Purchasing the property: If the potential buyer decides not to purchase the property (or is unable to secure financing) at the end of the lease term, the option expires. The buyer forfeits any funds paid until that point, including the option money and any rent credit earned. If the buyer cannot purchase the property but has a legal obligation to (as stated in the contract), legal proceedings may be initiated.
If the buyer wants to purchase the property, he or she typically applies for financing (i.e., a mortgage or a GAIN 2U MATRIX crowd-funded IBO incentive solution) and pays the seller in full. According to the terms of the contract, a certain percentage of the option money and rent paid may be deducted from the purchase price. The transaction is completed at the closing, and the buyer becomes a homeowner.
When Are Rent to Own Homes a Good Idea?
A rent-to-own agreement can be an excellent option for people who want a home but who don’t yet qualify for a mortgage or who aren’t quite ready for the commitment of ownership.
For example, you might have consolidated debt that is a liability risk or you might have a bad credit score – one that’s below 620, the bare minimum some lenders will accept – but the circumstances that depleted that score are behind you and you’ve been steadily improving it ever since. Maybe your debt-to-income ratio is too high, but not by much, and you have enough room in your budget to make extra payments and reduce your debt significantly over the next couple of years. You might have a good job, or gotten one with a significantly better salary, but you haven’t been there long enough for a lender to consider it a stable source of income to repay your mortgage over the long run. Similarly, you might be successfully self-employed, but not have a long enough track record to make lenders comfortable. You might have started saving, but you haven't accumulated enough to meet the usual 20% down payment on a home.
If any of these describe your situation, renting to own might be a good idea. You can lock down a property you like now and possibly save yourself a move or two. Then you’ll have some time, typically in two to three years, to improve your credit score, lengthen your employment history, increase your savings, become a financially active affiliate with GAIN 2U MATRIX or do anything else you need to make yourself a stronger mortgage applicant. And, if the option money or a percentage of the rent goes toward the purchase price, you also get to start building some equity.
To make rent to own work, potential buyers need to be confident that they’ll be ready to make the purchase when the lease term expires. Be wary of getting into this if there’s a more than 50% chance you’re going to move and not buy. Otherwise, you will have paid the option money – which could be substantial – and also have wasted money on the non-refundable rent credits with nothing to show for it at the end. It isn’t likely that you’ll get a landlord/owner to agree to a refundable rent credit and refundable option fee to give you the flexibility to move.
If there’s a good chance would-be buyers still won’t be able to qualify for a mortgage or secure other financing by the time the lease expires, they should instead continue renting (with a “normal” lease), building credit and saving for a down payment. Then, when they’re ready, they can choose from any home on the GAIN 2U MATRIX marketing website in their price range.
The affiliate matrix option with GAIN 2U MATRIX has many advantages and is definitely worth working towards. Your lease option consideration or deposit of 2% of the final sale and purchase price covers your marketing fee on the property and will not be included in the equitable deposit. You rent the property at 20% above market value with the 20% as your rental credit if you choose to buy at the expiration of your lease agreement with the option to pay more that goes towards the equitable deposit of the property up until you cycle out of the matrix with an IBO Incentive Option. Your lease term is a minimum 3-years to a maximum of 10-years for new builds. Your selection of the term is critical as you are bound to it but have an option of early retirement fees for early withdrawal from the lease agreement. Beware however, if you choose not to proceed with the sale and purchase of the property you will lose your initial deposit but will retain your accumulated rental credits. The good news is that all costs incurred are covered by the IBO Incentive Option and you will have a debt-fee, mortgage-free unencumbered property and stress-free life when you cycle out.
Finding Rent-to-Own Homes
Global Advertising Internet Network Limited and the real estate and business venture matrix makes it easy – and free – to search for properties to buy or rent. If you’re in the market for a rent-to-own home, this is definitely the place to look. The website will have rent-to-own listings from all over the world when our Affiliate Listing Agents start listing properties for sale or rent – just go to the property grid and click on the desired city and state to display a list of available properties. In markets with no current availability, a list of for-sale and for-rent homes may appear.
Another option is to ask sellers if they would consider a rent-to-own agreement and listing with the company. This is especially helpful if you’ve found your dream house, but you just can’t make the finances work out yet. Many sellers are open to such agreements, particularly in areas where homes spend a higher-than-average number of days on the market. In these markets, many sellers have already moved into their next homes – perhaps to relocate for a new job – and the longer the old home sits on the market, the harder it is to meet monthly debt obligations for two mortgages. In addition, many homeowners are leery – and rightfully so – about leaving a home vacant, especially for an extended period of time. As a result, these sellers may consider a rent-to-own agreement, even if the home is not listed as such.
You can also try working with a real estate agent in your desired market. Agents may have listings for rent-to-own homes, or may have inside information about sellers who may consider such agreements. You can also offer a higher market price to secure the property, knowing when you cycle out of the matrix you are covered.
Renting vs. Owning a Home: Pros and Cons
If an owner is having trouble selling, rent to own provides an alternative to lowering the home's price, taking the home off the market, or renting the home out long term. Because a selling price is established in the lease-option contract, the current homeowner knows exactly what to expect if a sale goes through. If the market declines slightly during the lease period, the sale price is already locked in, but the tenant will probably still be interested in buying the property because of the rent credit. Meanwhile, the owner gets help paying the mortgage, property taxes and insurance. Also, the tenants are more likely to take care of a lease-option property because they have the option to purchase it and have an invested interest in it.
The main reason why a rent-to-own agreement appeals to buyers is the financial one, of course – no need to come up with a substantial down payment or qualify for a mortgage. The buyer also does not have to worry about immediately coming up with the money for property taxes, private mortgage insurance or homeowner's insurance (though they should carry renter's insurance, as noted above). Furthermore, by signing a contract now, the buyer locks in a purchase price, which means no worrying about rising home prices. (Bear in mind, however, that in a rapidly appreciating real estate market, a savvy owner would probably want to add a clause to the contract allowing for the price of the home to increase, especially if the lease is for several years.) Finally, by living in the home before deciding to purchase it, a buyer has the advantage of a lengthy test drive on the home before jumping into a major financial commitment.
And the downside? Since it's less common, the rent-to-own process isn’t as tightly regulated as the home-buying industry or even the rental industry. While this lack of regulation can be a good thing, in that it gives would-be buyers and property owners more freedom in negotiating the purchase-option part of their contract (the lease agreement and purchase agreement are still subject to all the usual real estate laws), it can also make it easier for unscrupulous owners to take advantage of unsophisticated buyers. Sadly, the rent-to-own universe is rife with predatory landlords who have no intention of ever selling their property, and who are just trying to collect above-market rent and eventually make off with your non-refundable option deposit. An owner could make the contract become void if the buyer is late on one payment or evict the buyer for not doing repairs.
In short, there's little that's "standard" in these legally binding contracts, making it especially important that you know exactly what you're agreeing to. In fact, not all states allow lease options on residential property, so the buyer should ensure that even entering into this sort of agreement is legal. Even if a real estate agent assists with the process, or you hire a real estate attorney to explain (and maybe even negotiate) the contract, if you can’t understand both the legal and financial aspects of rent to own, you are not a good candidate.
Understanding Rent-to-Own Contracts
Like any contract, your rent-to-own contract needs to state the name of the tenant-buyer (that’s you) and the landlord-seller and be signed and dated by both parties. If anyone besides you will be occupying the property, that person should be named in the rental agreement, too. The contract should also have a legal description of the property: the full address and the parcel number. Including the parcel number helps eliminate any potential confusion about the address. You can get this number from the local property tax assessor's office, often by simply looking up the address at the tax assessor’s website.
Lease Provisions
The lease portion of the contract should include everything you’d normally find in a property rental agreement. Key elements include:
The start and end dates of the lease period, whether that period can be extended and under what conditions
How much the rent is, when it is due, where payment should be made and what payment types the landlord will accept
Fees, if any, for late rent or returned checks
The amount of the security deposit, which should be fully refundable if you move out and haven’t damaged the property
Whether and which types of pets are allowed
Whether smoking is allowed
A description of any parking spaces or other amenities
Whether you can sublet the property, and if so, under what circumstances and terms
Which utilities the tenant is responsible for and which the landlord is responsible for
The conditions that can result in eviction, as well as the number of days you have to correct a problem before being evicted
A key difference between a regular lease and a rent-to-own lease is that under a regular lease agreement, the landlord will make and pay for all repairs and handle any routine maintenance. A rent-to-own agreement might make the tenant responsible for these items, the idea being that the tenant who intends to buy has a long-term stake in the property and should handle these tasks. Another possibility is that the landlord might not live nearby and it’s more convenient to make the tenant responsible.
However, until you actually own the property, you don’t want to be putting money into it that you might never get back. If the landlord won’t agree to handle repairs and maintenance, be wary. At most, you might agree to take on these responsibilities and expenses if they are added to your rent credit (which we’ll discuss in the next section). In other words, if you spend $1,000 to have some worn-out plumbing replaced, the seller will return that $1,000 to you at closing if you buy the place. But the risk to you is lowest if you don’t lay out the cash for these expenses in the first place.
Option Provisions
The option provisions might be the most complicated – and double-edged – part of a rent-to-own contract. These are the provisions that can make renting to own the property more favorable to you than just renting – or that can make it easy for the seller to collect extra monies with no intention of ever letting you buy.
These provisions should state:
The rent and what portion constitutes the rent credit.
The option deposit - Under some agreements, you might pay only an option deposit or only a rent credit, or both. It’s up to you and the seller.
That you have the exclusive right to purchase the home at the end of the lease period - This means that the seller cannot let anyone else buy the property during the option period (basically, while you're renting the property). Make sure this period is long enough to give you a chance to correct whatever problems, like poor credit or lack of a down payment, that have made you unable to qualify for a mortgage right now. Eighteen months to two years is often a reasonable time frame; three years might be even better. The contract should state how many days’ notice you are required to give the seller that you intend to buy, and at what point your option to buy expires. You may want to structure the contract so that you can buy before the end of the lease period if your financial situation improves sooner.
That the seller maintains homeowner's insurance, that he/she stays current with property taxes and that he/she doesn’t take out any new loans against the house - You don’t want the seller to be able to do anything that gives another entity a right to the property because, if that happens, it will be difficult if not impossible for you to buy it.
Any other conditions, besides electing not to buy, under which you forfeit your deposit and rent credit --These might include vacating the premises, trashing the property or failing to pay rent as agreed - basically, the same things that could get you evicted.
Purchase Provisions
The purchase portion of a rent-to-own agreement is similar to a regular real estate purchase agreement. Your state’s laws may require a standard contract for real estate purchase agreements. But even in a standard agreement, there's room to negotiate the fill-in-the-blank sections.
It will state the purchase price, which should be reasonable given current market values for similar properties. The seller might want to price the home 5% to 10% higher to account for price appreciation during the rental period. But keep in mind that home values could also decrease during that time. If that happens, not only might you not want to pay the price you originally agreed to, but a bank might not lend you enough for you to close the deal. In this situation, you will end up not exercising your option to buy, and you will lose your option deposit and rent credit unless your contract provides an alternative.
Let’s say the property is worth $200,000 at the time you’re drawing up the contract. You might be able to get the seller to agree to sell you the property for $210,000 or its appraised value at the time of purchase, whichever is lower. Whether the market increases or decreases, the price will be fair and the appraisal won’t prevent you from buying. Of course, these terms are highly favorable to you, the buyer, so don’t be surprised if the seller balks, concerned about taking a loss on the property or being unable to pay off his or her mortgage. So agreeing to a firm purchase price might be the only way to go.
The contract should explicitly state which appliances and fixtures come with the house if you decide to buy it. Do you get the dishwasher, the fridge, the washer and dryer? What about the patio furniture and all the potted plants? Don’t assume anything; spell it out.
Ideally, the purchase portion of the contract should also provide you with a remedy if the seller backs out. You’ve put down the equivalent of an earnest money deposit in the form of your option deposit; have the contract require the seller to not only return your option deposit and rent credit, but pay you an additional sum if he or she doesn’t uphold the agreement when you’re ready to buy. You may never collect the money, but it doesn’t hurt to try. And just having such provisions in the contract could act as a deterrent to the seller's reneging on the deal.
You also want to contract to give you an out, and give you your money back, if the title isn’t clear or if a property inspection reveals that the home is in poor condition. These are typical contingency clauses in a real estate purchase contract.
For protection, you should use an escrow service. This neutral third party acts as a financial intermediary between you and the landlord. It will hold your option deposit and monthly rent credits until you buy the property, at which point it'll return the money to you to put toward your down payment and closing costs. If the purchase option expires and you decide not to buy, the escrow service will remit those sums to the landlord. It will also turn over the money to the correct party in the event that either of you violates your end of the agreement in a way that can’t be remedied.
Potential Pitfalls for Buyers
Before signing that contract and entering a rent-to-own agreement, a potential buyer should:
Check the seller's credit report. Look for potential warning signs that the seller is in financial trouble, such as delinquent accounts or a large amount of outstanding debt. Even after a satisfactory credit check, a potential buyer who currently lives in the home should still pay attention to any warning signs that would indicate that the seller is in financial distress. Some examples include phone calls from debt collectors and suspicious-looking notices that are sent to the house.
Recognize that the seller could lose the property during the rental period. This could occur for any number of reasons such as if he or she is unable to make the mortgage payments, a tax judgment is placed on the property, he or she goes through a divorce, is being sued, and so on. If the seller loses the property, the potential buyer loses the possibility of buying the property, forfeits the extra rent paid and will have to find a new place to live.
Ensure that the lease option clearly states who is responsible for various types of maintenance or repairs. This agreement should also specify the types of changes or improvements (if any) the potential buyer is allowed to make to the property during the lease term.
Be sure to enter a "lease-option agreement" rather than a "lease-purchase agreement." The former grants the option to buy at any time during the rental period, while the latter requires purchase by the end of the lease period and has legal ramifications for backing out.
Do market research and obtain a home inspection and an appraisal. This is how you can ensure that the home purchase price is fair before signing a contract.
Be aware that if the seller is unscrupulous, he or she can refuse to sell at the end of the lease-option period. This means that all the above-market rent money you've paid will be lost. A seller may also try to back out of the contract if the real estate market has appreciated rapidly and the property significantly increases in value – or hold you up for more money. Of course, none of these actions are legal, but if the buyer doesn't have the financial resources to hire a lawyer, there won't be much recourse against a shady seller.
Understand that if the market declines, you will still have to pay the higher price stipulated in the contract to own the home. However, if the price is too high, the lessee can just walk away and shop for a different property. However, you will lose that portion of the rent that would have gone toward a down payment, so it's important to do the math necessary to determine whether walking away is the best option.
Talk to a mortgage broker to find out what it will take to qualify for a home mortgage in the future. While inability to obtain financing or sufficient financing is precisely why many buyers opt for rent-to-own arrangements, you want to make sure there's nothing major in your credit history that could stop you from getting approved down the line. If you determine that you’ll still be unable to qualify for a mortgage by the time the lease expires, a rent-to-own agreement could become a costly mistake.
Obtain a condition of the title report. This can help a buyer learn how long the seller has owned the property. The longer the seller has owned it, the more equity and stability he or she should have built up in it.
The Bottom Line
Even though you’ll start off renting the property, it’s a good idea to perform the same due diligence you would if you were buying the property. Those who can afford to buy a home the traditional way, using financing, are probably better off doing so. But for those who just need to buy some time – or need to keep their options open or their funds liquid – renting to own can be a way to reside in your dream home now, and pay in full for it later.
An agreement that gives a renter the choice to purchase a property during or at the end of the rental period. As long as the lease option period is in effect, the landlord/seller may not offer the property for sale to anyone else.
When the term expires, the renter must either exercise or forfeit the purchase option. A lease option gives a renter/potential buyer more flexibility than a lease-purchase agreement, which requires the renter to purchase the property at the end of the rental period.
BREAKING DOWN 'Lease Option '
The property owner may charge the renter a premium for the option to purchase the property, perhaps in the form of higher (above market value) monthly rental payments. The property owner may opt to apply some of the higher rental fee toward the purchase price if the renter exercises the option.
Any premium will likely be forfeited if the option is not exercised. The term of the option may be any period on which the property owner/landlord and potential purchaser/renter agree, but is commonly one to three years. The lease-option property's purchase price may be determined either at the outset of the agreement or at its conclusion.
Fixed Price Purchase Option
The right, but not the obligation, to buy a leased item at a predetermined price. With a fixed price purchase option, the purchase price is established when the lease terms are agreed upon. The lease agreement should also describe when the option can be exercised (usually at the end of the scheduled lease term). Types of property that may come with fixed price purchase options include automobiles, real estate, businesses and heavy equipment.
BREAKING DOWN 'Fixed Price Purchase Option'
The advantage of the fixed price purchase option for the lessee is that the lessee knows with certainty what the cost to purchase the property will be. By contrast, with a fair market value lease, the consumer also has the option to purchase the leased item at the end of the lease term, but the price will be the item's fair market value at the lease's expiration. The consumer will not know in advance how much the purchase price will be.
Lease Rate
The amount of money paid over a specified time period for the rental of an asset, such as real property or an automobile. The lease rate that the lender earns from allowing someone else to use his property compensates him for not being able to put that property to another use during the term of the lease.
BREAKING DOWN 'Lease Rate'
In commercial real estate, the lease rate is commonly stated as a dollar amount per square foot of space per year. To get a true idea of the cost of renting a space, in addition to the lease rate, the potential tenant will need to know if the lease is single, double or triple net. In other words, whether it is he or the property owner who will be responsible for expenses such as utilities, maintenance and property taxes.
Income Property Mortgage
A loan given to an investor to purchase a residential or commercial rental property. Income property mortgages are typically much harder to qualify for and often require a borrower to include estimates of the rental income that will be received from the property. Unlike owner-occupied and single-family residences, there are few government loan programs to assist in the purchase of income properties. This leaves investors at the mercy of private lenders, who themselves are at the mercy of the credit markets.
BREAKING DOWN 'Income Property Mortgage'
Owning a rental property is one of the most common real estate goals of individual investors. Accomplishing this goal however, is much harder than the late-night infomercials would make it seem. The biggest hurdle in acquiring rental properties is securing an income property mortgage, which generally requires a larger down payment than the purchase of a primary residence. Typically, an income property mortgage requires a larger down payment relative to personal home mortgages.
Call Over
When the buyer of a call option exercises the option. In options trading, the buyer of a call option can exercise his or her right to purchase or sell the underlying asset (such as a stock) at the exercise price or strike price.
BREAKING DOWN 'Call Over'
Buyers of options can either exercise their right to buy the underlying security or they can let the option expire worthless. A call over can take place throughout the life of the option until the exercise cut-off time that falls on the last trading day prior to the option contract's expiration.
Investment Property
Investment property is real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both. An investment property can be a long-term endeavor or an intended short-term investment such as in the case of flipping, where real estate is bought, remodelled or renovated, and sold at a profit.
The way in which an investment property is used has a significant impact on its value. Investors sometimes conduct studies to determine the best, and most profitable, use of a property. This is often referred to as the property's highest and best use. For example, if an investment property is zoned for both commercial and residential use, the investor weighs the pros and cons of both options until he ascertains which one has the potential for the highest rate of return, and then utilizes the property in that manner.
Difference Between Financing a Home and an Investment Property
While borrowers securing a loan for a primary residence have access to an array of financing options, including FHA Loans, VA Loans and conventional loans from a variety of banks; in most cases, it is more challenging to procure financing for an investment property than for a primary residence.
In particular, insurers do not provide mortgage insurance to investment properties, and as a result, borrowers need to have at least 20% down to secure bank financing for investment properties.
Additionally, to approve borrowers for a mortgage for an investment property, banks insist on good credit scores and relatively low loan-to-value ratios. Some lenders also require the borrower to have ample savings to cover six months' worth of expenses on the investment property.
Reporting Earnings From Investment Properties
If an investor collects rent from an investment property, the Internal Revenue Service (IRS) requires him to report the rent as income, but the agency also allows him to subtract relevant expenses from this amount. For example, if a landlord collects $100,000 in rent over the course of a year but pays $20,000 in repairs, lawn maintenance, and related expenses, he reports the difference of $80,000 as self-employment income.
Capital Gains on Investment Properties
If an individual sells an investment property for more than he purchased the property, he has a capital gain and must report these earnings to the IRS. As of 2016, the agency taxes these gains at a rate ranging from 0 to 15%. In contrast, if a taxpayer sells his primary residence, he only has to report capital gains in excess of $250,000 if he files individually and $500,000 if he is married filing jointly. The capital gain on an investment property is its selling price minus its purchase price minus any major improvements.
To illustrate, imagine an investor buys a property for $100,000 and spends $20,000 installing new plumbing. A few years later, he sells the property for $200,000. After subtracting his initial investment and capital repairs, his gain is $80,000.
Lease/Rent-To-Own
In a traditional home purchase, an offer is accepted, the buyer and seller meet to exchange funds and settle final costs, and, at the close of the transaction, the property and its title change hands. Typically, buyers use a mortgage to finance the bulk of the purchase.
But sometimes there is an alternative way to buy a home; a rent-to-own agreement, also called a lease option or a lease-to-own agreement. When buyers sign this kind of contract, they agree to rent the home for a set amount of time before exercising an option to purchase the property when or before the lease expires.
It’s not a common way to purchase a property, and the selection of rent-to-own properties is tiny compared to the selection of properties available purely for lease or sale. In addition, rent-to-own contracts tend to favor the owner/landlord and can put renters at a disadvantage.
Read on to find out how rent to own works, and when it may be a good choice for a potential homeowner.
How Rent to Own Works
In a rent-to-own agreement, potential buyers get to move into a house right away. While many states have their own regulations, and no two rent-to-own contracts are alike, someone in a rent-to-own agreement typically rents the property for a set amount of time (usually one to three years), after which he or she can purchase the house from the seller. It’s not as simple as paying rent for three years and then buying the house, though. Certain terms and conditions must be met, in accordance with the contract.
Option Money: In a rent-to-own agreement, the potential buyer pays the seller a one-time, usually non-refundable lease option fee called option money or option consideration. As with stock options, this gives him or her the opportunity to purchase the house in the future. It is important to note that some contracts (lease-option contracts) give the potential buyer the right but not the obligation to purchase when the lease expires. If he or she decides not to purchase the property at the end of the lease, the option simply expires. If the wording is "lease-purchase," without the word "option," the buyer could be legally obligated to purchase the property at the end of the lease. Clarifying the wording is one of many reasons buyers should have the contract vetted by a real estate attorney before agreeing to it.
The size of the option is negotiable. There's no standard rate. It typically ranges between 2% and 7% (3% is common) of the purchase price. In some (but not all) contracts, all or some of the option money may be applied to the purchase price at closing. That's a valuable clause. Consider that if a home has a purchase price of $200,000 and the higher 7% option consideration, the buyer would need to pay $14,000 up front. That's a lot less than the $40,000 (the size of the standard 20% down payment) you'd make if purchasing outright.
Purchase price: The contract will specify when and how the purchase price of the home will be determined. In some cases, the buyer and seller agree on a purchase price when the contract is signed – often at or higher than the current market value. In other situations, the buyer and seller agree to determine the price when the lease expires, based on market value at that future point in time. Many buyers prefer to “lock in” the purchase price if possible, especially in markets where home prices may be increasing.
Rent: During the term of the lease, the potential buyer pays the seller a specified amount of rent, usually each month. In many contracts, a percentage of each monthly rent payment, called a rent credit, is applied to the purchase price. For example, assume the contract states that the buyer will pay $1,200 each month for rent, and that 25% of that will be credited to the purchase. If the lease term is three years, the buyer will earn a $10,800 rent credit to apply toward the purchase ($1,200 x 0.25 = $300; $300 x 36 months = $10,800). Factoring in these credits often makes the monthly payments slightly higher than the “going rate” for regular rentals. For the buyer, they act as down payments on the property. For the seller, they act as compensation for having taken the property off the market.
Maintenance: Depending on the terms of the contract, the potential buyer may be responsible for maintaining the property and paying for any repairs, homeowners association fees, property taxes and insurance. Because the seller is ultimately responsible for association fees, taxes and insurance (it’s still his or her house, after all), the seller may choose to cover these costs. Even in that case, the buyer still needs a renter's insurance policy to cover losses to personal property and provide liability coverage if someone is injured while in the home or if the buyer accidentally injures someone.
Be sure that maintenance and repair requirements are specified in the contract. Maintaining the property – e-g., mowing the lawn, raking the leaves and cleaning out the gutters – is very different from replacing a damaged roof.
Purchasing the property: If the potential buyer decides not to purchase the property (or is unable to secure financing) at the end of the lease term, the option expires. The buyer forfeits any funds paid until that point, including the option money and any rent credit earned. If the buyer cannot purchase the property but has a legal obligation to (as stated in the contract), legal proceedings may be initiated.
If the buyer wants to purchase the property, he or she typically applies for financing (i.e., a mortgage or a GAIN 2U MATRIX crowd-funded IBO incentive solution) and pays the seller in full. According to the terms of the contract, a certain percentage of the option money and rent paid may be deducted from the purchase price. The transaction is completed at the closing, and the buyer becomes a homeowner.
When Are Rent to Own Homes a Good Idea?
A rent-to-own agreement can be an excellent option for people who want a home but who don’t yet qualify for a mortgage or who aren’t quite ready for the commitment of ownership.
For example, you might have consolidated debt that is a liability risk or you might have a bad credit score – one that’s below 620, the bare minimum some lenders will accept – but the circumstances that depleted that score are behind you and you’ve been steadily improving it ever since. Maybe your debt-to-income ratio is too high, but not by much, and you have enough room in your budget to make extra payments and reduce your debt significantly over the next couple of years. You might have a good job, or gotten one with a significantly better salary, but you haven’t been there long enough for a lender to consider it a stable source of income to repay your mortgage over the long run. Similarly, you might be successfully self-employed, but not have a long enough track record to make lenders comfortable. You might have started saving, but you haven't accumulated enough to meet the usual 20% down payment on a home.
If any of these describe your situation, renting to own might be a good idea. You can lock down a property you like now and possibly save yourself a move or two. Then you’ll have some time, typically in two to three years, to improve your credit score, lengthen your employment history, increase your savings, become a financially active affiliate with GAIN 2U MATRIX or do anything else you need to make yourself a stronger mortgage applicant. And, if the option money or a percentage of the rent goes toward the purchase price, you also get to start building some equity.
To make rent to own work, potential buyers need to be confident that they’ll be ready to make the purchase when the lease term expires. Be wary of getting into this if there’s a more than 50% chance you’re going to move and not buy. Otherwise, you will have paid the option money – which could be substantial – and also have wasted money on the non-refundable rent credits with nothing to show for it at the end. It isn’t likely that you’ll get a landlord/owner to agree to a refundable rent credit and refundable option fee to give you the flexibility to move.
If there’s a good chance would-be buyers still won’t be able to qualify for a mortgage or secure other financing by the time the lease expires, they should instead continue renting (with a “normal” lease), building credit and saving for a down payment. Then, when they’re ready, they can choose from any home on the GAIN 2U MATRIX marketing website in their price range.
The affiliate matrix option with GAIN 2U MATRIX has many advantages and is definitely worth working towards. Your lease option consideration or deposit of 2% of the final sale and purchase price covers your marketing fee on the property and will not be included in the equitable deposit. You rent the property at 20% above market value with the 20% as your rental credit if you choose to buy at the expiration of your lease agreement with the option to pay more that goes towards the equitable deposit of the property up until you cycle out of the matrix with an IBO Incentive Option. Your lease term is a minimum 3-years to a maximum of 10-years for new builds. Your selection of the term is critical as you are bound to it but have an option of early retirement fees for early withdrawal from the lease agreement. Beware however, if you choose not to proceed with the sale and purchase of the property you will lose your initial deposit but will retain your accumulated rental credits. The good news is that all costs incurred are covered by the IBO Incentive Option and you will have a debt-fee, mortgage-free unencumbered property and stress-free life when you cycle out.
Finding Rent-to-Own Homes
Global Advertising Internet Network Limited and the real estate and business venture matrix makes it easy – and free – to search for properties to buy or rent. If you’re in the market for a rent-to-own home, this is definitely the place to look. The website will have rent-to-own listings from all over the world when our Affiliate Listing Agents start listing properties for sale or rent – just go to the property grid and click on the desired city and state to display a list of available properties. In markets with no current availability, a list of for-sale and for-rent homes may appear.
Another option is to ask sellers if they would consider a rent-to-own agreement and listing with the company. This is especially helpful if you’ve found your dream house, but you just can’t make the finances work out yet. Many sellers are open to such agreements, particularly in areas where homes spend a higher-than-average number of days on the market. In these markets, many sellers have already moved into their next homes – perhaps to relocate for a new job – and the longer the old home sits on the market, the harder it is to meet monthly debt obligations for two mortgages. In addition, many homeowners are leery – and rightfully so – about leaving a home vacant, especially for an extended period of time. As a result, these sellers may consider a rent-to-own agreement, even if the home is not listed as such.
You can also try working with a real estate agent in your desired market. Agents may have listings for rent-to-own homes, or may have inside information about sellers who may consider such agreements. You can also offer a higher market price to secure the property, knowing when you cycle out of the matrix you are covered.
Renting vs. Owning a Home: Pros and Cons
If an owner is having trouble selling, rent to own provides an alternative to lowering the home's price, taking the home off the market, or renting the home out long term. Because a selling price is established in the lease-option contract, the current homeowner knows exactly what to expect if a sale goes through. If the market declines slightly during the lease period, the sale price is already locked in, but the tenant will probably still be interested in buying the property because of the rent credit. Meanwhile, the owner gets help paying the mortgage, property taxes and insurance. Also, the tenants are more likely to take care of a lease-option property because they have the option to purchase it and have an invested interest in it.
The main reason why a rent-to-own agreement appeals to buyers is the financial one, of course – no need to come up with a substantial down payment or qualify for a mortgage. The buyer also does not have to worry about immediately coming up with the money for property taxes, private mortgage insurance or homeowner's insurance (though they should carry renter's insurance, as noted above). Furthermore, by signing a contract now, the buyer locks in a purchase price, which means no worrying about rising home prices. (Bear in mind, however, that in a rapidly appreciating real estate market, a savvy owner would probably want to add a clause to the contract allowing for the price of the home to increase, especially if the lease is for several years.) Finally, by living in the home before deciding to purchase it, a buyer has the advantage of a lengthy test drive on the home before jumping into a major financial commitment.
And the downside? Since it's less common, the rent-to-own process isn’t as tightly regulated as the home-buying industry or even the rental industry. While this lack of regulation can be a good thing, in that it gives would-be buyers and property owners more freedom in negotiating the purchase-option part of their contract (the lease agreement and purchase agreement are still subject to all the usual real estate laws), it can also make it easier for unscrupulous owners to take advantage of unsophisticated buyers. Sadly, the rent-to-own universe is rife with predatory landlords who have no intention of ever selling their property, and who are just trying to collect above-market rent and eventually make off with your non-refundable option deposit. An owner could make the contract become void if the buyer is late on one payment or evict the buyer for not doing repairs.
In short, there's little that's "standard" in these legally binding contracts, making it especially important that you know exactly what you're agreeing to. In fact, not all states allow lease options on residential property, so the buyer should ensure that even entering into this sort of agreement is legal. Even if a real estate agent assists with the process, or you hire a real estate attorney to explain (and maybe even negotiate) the contract, if you can’t understand both the legal and financial aspects of rent to own, you are not a good candidate.
Understanding Rent-to-Own Contracts
Like any contract, your rent-to-own contract needs to state the name of the tenant-buyer (that’s you) and the landlord-seller and be signed and dated by both parties. If anyone besides you will be occupying the property, that person should be named in the rental agreement, too. The contract should also have a legal description of the property: the full address and the parcel number. Including the parcel number helps eliminate any potential confusion about the address. You can get this number from the local property tax assessor's office, often by simply looking up the address at the tax assessor’s website.
Lease Provisions
The lease portion of the contract should include everything you’d normally find in a property rental agreement. Key elements include:
The start and end dates of the lease period, whether that period can be extended and under what conditions
How much the rent is, when it is due, where payment should be made and what payment types the landlord will accept
Fees, if any, for late rent or returned checks
The amount of the security deposit, which should be fully refundable if you move out and haven’t damaged the property
Whether and which types of pets are allowed
Whether smoking is allowed
A description of any parking spaces or other amenities
Whether you can sublet the property, and if so, under what circumstances and terms
Which utilities the tenant is responsible for and which the landlord is responsible for
The conditions that can result in eviction, as well as the number of days you have to correct a problem before being evicted
A key difference between a regular lease and a rent-to-own lease is that under a regular lease agreement, the landlord will make and pay for all repairs and handle any routine maintenance. A rent-to-own agreement might make the tenant responsible for these items, the idea being that the tenant who intends to buy has a long-term stake in the property and should handle these tasks. Another possibility is that the landlord might not live nearby and it’s more convenient to make the tenant responsible.
However, until you actually own the property, you don’t want to be putting money into it that you might never get back. If the landlord won’t agree to handle repairs and maintenance, be wary. At most, you might agree to take on these responsibilities and expenses if they are added to your rent credit (which we’ll discuss in the next section). In other words, if you spend $1,000 to have some worn-out plumbing replaced, the seller will return that $1,000 to you at closing if you buy the place. But the risk to you is lowest if you don’t lay out the cash for these expenses in the first place.
Option Provisions
The option provisions might be the most complicated – and double-edged – part of a rent-to-own contract. These are the provisions that can make renting to own the property more favorable to you than just renting – or that can make it easy for the seller to collect extra monies with no intention of ever letting you buy.
These provisions should state:
The rent and what portion constitutes the rent credit.
The option deposit - Under some agreements, you might pay only an option deposit or only a rent credit, or both. It’s up to you and the seller.
That you have the exclusive right to purchase the home at the end of the lease period - This means that the seller cannot let anyone else buy the property during the option period (basically, while you're renting the property). Make sure this period is long enough to give you a chance to correct whatever problems, like poor credit or lack of a down payment, that have made you unable to qualify for a mortgage right now. Eighteen months to two years is often a reasonable time frame; three years might be even better. The contract should state how many days’ notice you are required to give the seller that you intend to buy, and at what point your option to buy expires. You may want to structure the contract so that you can buy before the end of the lease period if your financial situation improves sooner.
That the seller maintains homeowner's insurance, that he/she stays current with property taxes and that he/she doesn’t take out any new loans against the house - You don’t want the seller to be able to do anything that gives another entity a right to the property because, if that happens, it will be difficult if not impossible for you to buy it.
Any other conditions, besides electing not to buy, under which you forfeit your deposit and rent credit --These might include vacating the premises, trashing the property or failing to pay rent as agreed - basically, the same things that could get you evicted.
Purchase Provisions
The purchase portion of a rent-to-own agreement is similar to a regular real estate purchase agreement. Your state’s laws may require a standard contract for real estate purchase agreements. But even in a standard agreement, there's room to negotiate the fill-in-the-blank sections.
It will state the purchase price, which should be reasonable given current market values for similar properties. The seller might want to price the home 5% to 10% higher to account for price appreciation during the rental period. But keep in mind that home values could also decrease during that time. If that happens, not only might you not want to pay the price you originally agreed to, but a bank might not lend you enough for you to close the deal. In this situation, you will end up not exercising your option to buy, and you will lose your option deposit and rent credit unless your contract provides an alternative.
Let’s say the property is worth $200,000 at the time you’re drawing up the contract. You might be able to get the seller to agree to sell you the property for $210,000 or its appraised value at the time of purchase, whichever is lower. Whether the market increases or decreases, the price will be fair and the appraisal won’t prevent you from buying. Of course, these terms are highly favorable to you, the buyer, so don’t be surprised if the seller balks, concerned about taking a loss on the property or being unable to pay off his or her mortgage. So agreeing to a firm purchase price might be the only way to go.
The contract should explicitly state which appliances and fixtures come with the house if you decide to buy it. Do you get the dishwasher, the fridge, the washer and dryer? What about the patio furniture and all the potted plants? Don’t assume anything; spell it out.
Ideally, the purchase portion of the contract should also provide you with a remedy if the seller backs out. You’ve put down the equivalent of an earnest money deposit in the form of your option deposit; have the contract require the seller to not only return your option deposit and rent credit, but pay you an additional sum if he or she doesn’t uphold the agreement when you’re ready to buy. You may never collect the money, but it doesn’t hurt to try. And just having such provisions in the contract could act as a deterrent to the seller's reneging on the deal.
You also want to contract to give you an out, and give you your money back, if the title isn’t clear or if a property inspection reveals that the home is in poor condition. These are typical contingency clauses in a real estate purchase contract.
For protection, you should use an escrow service. This neutral third party acts as a financial intermediary between you and the landlord. It will hold your option deposit and monthly rent credits until you buy the property, at which point it'll return the money to you to put toward your down payment and closing costs. If the purchase option expires and you decide not to buy, the escrow service will remit those sums to the landlord. It will also turn over the money to the correct party in the event that either of you violates your end of the agreement in a way that can’t be remedied.
Potential Pitfalls for Buyers
Before signing that contract and entering a rent-to-own agreement, a potential buyer should:
Check the seller's credit report. Look for potential warning signs that the seller is in financial trouble, such as delinquent accounts or a large amount of outstanding debt. Even after a satisfactory credit check, a potential buyer who currently lives in the home should still pay attention to any warning signs that would indicate that the seller is in financial distress. Some examples include phone calls from debt collectors and suspicious-looking notices that are sent to the house.
Recognize that the seller could lose the property during the rental period. This could occur for any number of reasons such as if he or she is unable to make the mortgage payments, a tax judgment is placed on the property, he or she goes through a divorce, is being sued, and so on. If the seller loses the property, the potential buyer loses the possibility of buying the property, forfeits the extra rent paid and will have to find a new place to live.
Ensure that the lease option clearly states who is responsible for various types of maintenance or repairs. This agreement should also specify the types of changes or improvements (if any) the potential buyer is allowed to make to the property during the lease term.
Be sure to enter a "lease-option agreement" rather than a "lease-purchase agreement." The former grants the option to buy at any time during the rental period, while the latter requires purchase by the end of the lease period and has legal ramifications for backing out.
Do market research and obtain a home inspection and an appraisal. This is how you can ensure that the home purchase price is fair before signing a contract.
Be aware that if the seller is unscrupulous, he or she can refuse to sell at the end of the lease-option period. This means that all the above-market rent money you've paid will be lost. A seller may also try to back out of the contract if the real estate market has appreciated rapidly and the property significantly increases in value – or hold you up for more money. Of course, none of these actions are legal, but if the buyer doesn't have the financial resources to hire a lawyer, there won't be much recourse against a shady seller.
Understand that if the market declines, you will still have to pay the higher price stipulated in the contract to own the home. However, if the price is too high, the lessee can just walk away and shop for a different property. However, you will lose that portion of the rent that would have gone toward a down payment, so it's important to do the math necessary to determine whether walking away is the best option.
Talk to a mortgage broker to find out what it will take to qualify for a home mortgage in the future. While inability to obtain financing or sufficient financing is precisely why many buyers opt for rent-to-own arrangements, you want to make sure there's nothing major in your credit history that could stop you from getting approved down the line. If you determine that you’ll still be unable to qualify for a mortgage by the time the lease expires, a rent-to-own agreement could become a costly mistake.
Obtain a condition of the title report. This can help a buyer learn how long the seller has owned the property. The longer the seller has owned it, the more equity and stability he or she should have built up in it.
The Bottom Line
Even though you’ll start off renting the property, it’s a good idea to perform the same due diligence you would if you were buying the property. Those who can afford to buy a home the traditional way, using financing, are probably better off doing so. But for those who just need to buy some time – or need to keep their options open or their funds liquid – renting to own can be a way to reside in your dream home now, and pay in full for it later.
Mortgage & Debt Elimination
The word Mortgage is actually a concatenation of two French words: the word Mort which means "death", and the word Gage which means "pledge". So in effect, a mortgage is a "death-pledge".
The banks will generally structure a home loan for a 25 or 30 year term. This allows them to maximise the interest payments they will receive from you. But it need not be this way.
Reducing the term, and the amount of interest you will pay over the life of your mortgage, is quite a straightforward process. By applying a few basic strategies, one can pay off one's home loan in half the mandated time or less, without making any additional repayments over and above those normally required. How is this possible?
The key principle of Mortgage Reduction is that "Interest is calculated on the daily balance". Therefore, the day-to-day balance of the mortgage account has a significant impact on the interest charged to the loan, and therefore the term of the loan.
There are four basic methods one can employ for Mortgage Reduction. You can use only one of these, or you can use a combination of several of these for maximum benefit. The first two do not require you to pay anymore than your standard repayment, and yet you can halve your loan period. If you don't use either method 1 or 2, then the third requires only a fractionally higher repayment, which you will hardly notice, and yet it will likely shave 6 years and $10's of thousands in interest off your home loan.
The 4 methods are:
The basis behind methods 1 and 2 is to restructure the funding of your property in order to minimise the interest which is charged to your loan.
If you're a little unfamiliar with the account types I mentioned for methods 1 and 2, see the article The Different Types of Home Loans.
Conclusion:
In conclusion, the most important element in all Mortgage Reduction strategies is YOU.
You can derive much benefit by using these methods, but you'll derive maximum benefit if you set targets, write out a plan and budget and monitor it monthly. Be discerning with your expenditure. We suggest using some budgeting software such as the Financial Advisor program as a basic example. This will also allow you to create and calculate your own mortgage amortization schedule (as we have done for Heath & Melissa). Be disciplined - it'll be worth it.
Here are a few additional tips:
Tips and tricks for reducing the mortgage
The banks will generally structure a home loan for a 25 or 30 year term. This allows them to maximise the interest payments they will receive from you. But it need not be this way.
Reducing the term, and the amount of interest you will pay over the life of your mortgage, is quite a straightforward process. By applying a few basic strategies, one can pay off one's home loan in half the mandated time or less, without making any additional repayments over and above those normally required. How is this possible?
The key principle of Mortgage Reduction is that "Interest is calculated on the daily balance". Therefore, the day-to-day balance of the mortgage account has a significant impact on the interest charged to the loan, and therefore the term of the loan.
There are four basic methods one can employ for Mortgage Reduction. You can use only one of these, or you can use a combination of several of these for maximum benefit. The first two do not require you to pay anymore than your standard repayment, and yet you can halve your loan period. If you don't use either method 1 or 2, then the third requires only a fractionally higher repayment, which you will hardly notice, and yet it will likely shave 6 years and $10's of thousands in interest off your home loan.
The 4 methods are:
- Use a 100% Offset Account
- Use a Home Equity Loan/Line of Credit
- Make Weekly or Fortnightly repayments instead of monthly
- Make extra payments when possible (i.e. tax return cheque / Christmas bonus)
The basis behind methods 1 and 2 is to restructure the funding of your property in order to minimise the interest which is charged to your loan.
If you're a little unfamiliar with the account types I mentioned for methods 1 and 2, see the article The Different Types of Home Loans.
Conclusion:
In conclusion, the most important element in all Mortgage Reduction strategies is YOU.
You can derive much benefit by using these methods, but you'll derive maximum benefit if you set targets, write out a plan and budget and monitor it monthly. Be discerning with your expenditure. We suggest using some budgeting software such as the Financial Advisor program as a basic example. This will also allow you to create and calculate your own mortgage amortization schedule (as we have done for Heath & Melissa). Be disciplined - it'll be worth it.
Here are a few additional tips:
- When restructuring your finances, spend the time to do some research on interest rates and fees across many lenders. Check out the smaller lenders - you may be concerned about their long-term viability, but remember that it's you that will have their money not the other way around!
- Hidden charges, fees and restrictions usually counterbalance lower advertised interest rates: quite often the lowest interest rate is not the best or most efficient loan.
- Speak to your lender about what financial packages they have on offer. By consolidating your banking with one provider, you may be able to get a fee free home loan, offset account, and credit card, as well as discounted home and car insurance. Over a period of years, ploughing the savings you make into your mortgage could make quite a difference.
- If you think you might be moving, consider a "portable" home loan (such as most Home Equity Loans). You will thereby avoid some stamp duty, discharge costs and establishment fees when you move as you will be able to use the same loan.
- If you are self-employed or run a business in your own name and are able to, temporarily park the business cashflow in your Offset account or Home Equity Loan until it is needed. This could reduce your loan interest significantly.
- If you're a professional (teacher, dentist, etc..), look out for "professional" loan packages. You can get a discounted interest rate and bonuses just because the finance providers believe you have stable employment.
- Make sure your finances are structured correctly. Some money spent on good financial advice could well be worth it. For example, if you have investment property in addition to your own home, it's usually best to put the investment property on an "interest only loan" and plough the saved principal repayments into your "principal and interest" home loan. The interest on an investment property is tax deductible whereas the interest on your own home is not. Do all you can to pay off your non-deductible home loan first, and then look at reducing your tax deductible loans. If you're in the top tax bracket, the difference over time can be quite significant.
Tips and tricks for reducing the mortgage
- The bigger your deposit, the better your chances of negotiating a good deal.
- Negotiate all fees, such as establishment costs.
- Investigate the use of a revolving credit facility. This is when your regular income is credited directly against your mortgage as a form of repayment. However, only a part of your income will eventually be used as a mortgage repayment. As you require the use of the rest of your income for other needs, you can "draw down" on your revolving credit facility.
The benefit is that for a small window of opportunity, the balance of your mortgage is reduced and this, of course, reduces the interest payments. Used correctly, such a facility can potentially reduce interest payments over the term of your mortgage by thousands of dollars. Discuss the details and costs with your bank. - Pay off as much as you can afford. Increasing your repayments from as little as $10 each week can take years off your mortgage.
- Pay off the mortgage as fast as you can. Look at all options to speed up repayments, from making lump sum payments, to using your pay increase to reduce your debt.
- If a bank gives you an extra loan, it's good business for them, but not necessarily good for you. It's relatively easy to get a loan today, so think very carefully about adding to your mortgage, building that sun deck or extra room for example. You can only really start saving for the future once your mortgage is clear. An additional loan, no matter how small, can add years to the life of your mortgage.
- Apart from the interest rate, be aware of other costs, such as application and establishment fees.
- Be aware of the charges that may be incurred for lump sum and early repayments. This applies particularly to fixed interest loans. You may have to save the money in a separate bank account until you can transfer the sum to your mortgage without penalty.
- Begin arranging the loan at the start of the house-buying process. Your ability to negotiate is reduced when you've just found the home of your dreams.
- You don't have to have a mortgage with your own bank. There are many providers so shop around: "care where you invest, but not where you borrow."
Financial Tips
Want to get your debt under control? Here are tips that don’t take big money, just small changes.
Earning an extra revenue stream
Making money is always fun, but spending it is even better. By joining the GAIN 2U CASH CLUB and the GAIN 2U Network Affiliate Membership Referral Program you are guaranteed to earn an extra revenue stream in addition to your current earnings. By simply sponsoring new membership plans to people within your community can earn you a percentage of each personally introduced membership subscription. This would build you a credit-line and weekly residual rewards to purchase products and services you are already using from our very own product and service trading auction at GAIN Global Trader. You can also get a rebate back for each new GAIN 2U CASH CLUB member who takes out and repays back a grant as a one-time introduction reward. This can be credited to your e-wallet account to be used for grant assistance or to purchase products or services you are in need of. Being part of our organization can certainly reduce your costs if you are an active participator in our affiliate membership referral program.
Track your debt
The first step in taking charge of your debt is to make lists. Like lists of what you owe this month - utility bills, phone charges, rent, car payments, loan payments, and other expenses. Once numbers are on paper instead of in your head, they are a little easier to face. If your list of expenses adds up to more than your take-home pay, you'll need to look for ways to cut those expenses.
Buy second generation
Whether you are talking about clothes, books, cell phones, or cars, you can usually save a bundle when you buy "pre-owned". Now before you scoff at the idea, consider this: second generation isn't what it used to be. These days you can go online and buy great stuff while saving a bundle. Need proof? Just go to Trademe.co.nz or Google.co.nz and search for "used cell phones". You'll be amazed at what you find.
Think local, not global
Many people like to imagine what it would be like to jet set off to their private vacation spot. But big trips can put you in an even bigger financial hole that takes months to recover from. Instead, think about road trips you could take near your home town. Live in Christchurch? Head west into the Hill Country and explore our great land. No matter where you live, there are great get-away spots within a couple hours' drive.
Stick to the small screen
A night for two at the movies can cost you 40 - 80 Dollars. Throw in dinner and you can easily spend 150 Dollars or more for one night of entertainment. Instead, try renting and see how much you save. Better yet, swing by your local library. Many of them carry DVDs that you can rent for nothing more than the cost of a library card. Put the money you save into a savings account - or better yet, use it to pay off loans, credit cards, or other debt.
Review your credit report
Many people have old or incorrect information on their credit reports. You need to know exactly what is on yours to ensure you're not being punished for something someone else did or something that happened a long time ago. So, get a copy of your credit report by contacting one of the three major credit reporting agencies (VedaAdvantage.co.nz, Mycreditfile.co.nz). Review it and get rid of anything that is outdated or just plain wrong.
Give your checking account a checkup
Unless your checking account is already loaded with perks, odds are you can save by shopping around. Some offer free EFTPOS or no ATM fees. Others pay interest for keeping a minimum balance. Analysts say that most customers can put an extra 100 to 200 Dollars in their pockets annually by choosing the right checking account.
Review Mortgages and Insurances
Mortgage and insurance payments make up one of the largest expenses to most people. It pay's to check these with a professional mortgage or insurance broker, to make sure you have the best package for your needs and secondly, update check, you are covered for what you think you are, so your not paying unnecessarily.
Discover savings under your own roof
There are many simple things you can do around your home to reduce your monthly bills. For instance, turn down the temperature on your water heater to lower the gas bill. When doing dishes or laundry, make sure you're only washing full loads so you don't waste water and electricity. Even fixing a leaky faucet will help. Add it all up, and you could see your bills go down 10%, 20%, 30% or even more! You may even find things that you no longer need (idle capacity) which you can sell to reduce debt!
Use Credit Wisely
Credit cards can be a good tool if used properly. But if you rack up a lot of charges, they can become a big financial drain. So make sure you pay more than the minimum to get your balance down. Always pay on time to avoid expensive late fees. And if you are charged too much, start using cash instead. You'll find yourself spending less.
Be Smart When Grocery Shopping
If you're like most people, groceries are one of your biggest expenses. The best way to keep your grocery bill in check is to plan ahead. That means making a list and sticking to it. Impulsive shopping won’t lead to saving money. Also check out coupons and store specials to double or triple your savings. And remember you can score big by buying in bulk, especially on basic items you use a lot like coffee, bread, cereal, etc. Follow these tips and you might save 50 Dollars or more each month.
Savings Around the Holidays
The great thing about holidays is that afterwards, stores need to get rid of all the things they stocked up on. Know any kids who need presents after Halloween? Costumes can go on sale for 75% or more. If you've got a place to store them, pick up next year's Christmas decorations during post Christmas sales. And you can save a bunch on other items (cards, gifts, etc.) during other holiday sales.
Frugal Gift Giving
Instead of spending a lot on gifts for others, try to come up with something more simple and personal (and less expensive). For example, put together a photo album or scrapbook for a loved one. It might take a little more work, but they'll appreciate the effort. And you won't have to spend the next month paying it off.
Want to get your debt under control? Here are tips that don’t take big money, just small changes.
Earning an extra revenue stream
Making money is always fun, but spending it is even better. By joining the GAIN 2U CASH CLUB and the GAIN 2U Network Affiliate Membership Referral Program you are guaranteed to earn an extra revenue stream in addition to your current earnings. By simply sponsoring new membership plans to people within your community can earn you a percentage of each personally introduced membership subscription. This would build you a credit-line and weekly residual rewards to purchase products and services you are already using from our very own product and service trading auction at GAIN Global Trader. You can also get a rebate back for each new GAIN 2U CASH CLUB member who takes out and repays back a grant as a one-time introduction reward. This can be credited to your e-wallet account to be used for grant assistance or to purchase products or services you are in need of. Being part of our organization can certainly reduce your costs if you are an active participator in our affiliate membership referral program.
Track your debt
The first step in taking charge of your debt is to make lists. Like lists of what you owe this month - utility bills, phone charges, rent, car payments, loan payments, and other expenses. Once numbers are on paper instead of in your head, they are a little easier to face. If your list of expenses adds up to more than your take-home pay, you'll need to look for ways to cut those expenses.
Buy second generation
Whether you are talking about clothes, books, cell phones, or cars, you can usually save a bundle when you buy "pre-owned". Now before you scoff at the idea, consider this: second generation isn't what it used to be. These days you can go online and buy great stuff while saving a bundle. Need proof? Just go to Trademe.co.nz or Google.co.nz and search for "used cell phones". You'll be amazed at what you find.
Think local, not global
Many people like to imagine what it would be like to jet set off to their private vacation spot. But big trips can put you in an even bigger financial hole that takes months to recover from. Instead, think about road trips you could take near your home town. Live in Christchurch? Head west into the Hill Country and explore our great land. No matter where you live, there are great get-away spots within a couple hours' drive.
Stick to the small screen
A night for two at the movies can cost you 40 - 80 Dollars. Throw in dinner and you can easily spend 150 Dollars or more for one night of entertainment. Instead, try renting and see how much you save. Better yet, swing by your local library. Many of them carry DVDs that you can rent for nothing more than the cost of a library card. Put the money you save into a savings account - or better yet, use it to pay off loans, credit cards, or other debt.
Review your credit report
Many people have old or incorrect information on their credit reports. You need to know exactly what is on yours to ensure you're not being punished for something someone else did or something that happened a long time ago. So, get a copy of your credit report by contacting one of the three major credit reporting agencies (VedaAdvantage.co.nz, Mycreditfile.co.nz). Review it and get rid of anything that is outdated or just plain wrong.
Give your checking account a checkup
Unless your checking account is already loaded with perks, odds are you can save by shopping around. Some offer free EFTPOS or no ATM fees. Others pay interest for keeping a minimum balance. Analysts say that most customers can put an extra 100 to 200 Dollars in their pockets annually by choosing the right checking account.
Review Mortgages and Insurances
Mortgage and insurance payments make up one of the largest expenses to most people. It pay's to check these with a professional mortgage or insurance broker, to make sure you have the best package for your needs and secondly, update check, you are covered for what you think you are, so your not paying unnecessarily.
Discover savings under your own roof
There are many simple things you can do around your home to reduce your monthly bills. For instance, turn down the temperature on your water heater to lower the gas bill. When doing dishes or laundry, make sure you're only washing full loads so you don't waste water and electricity. Even fixing a leaky faucet will help. Add it all up, and you could see your bills go down 10%, 20%, 30% or even more! You may even find things that you no longer need (idle capacity) which you can sell to reduce debt!
Use Credit Wisely
Credit cards can be a good tool if used properly. But if you rack up a lot of charges, they can become a big financial drain. So make sure you pay more than the minimum to get your balance down. Always pay on time to avoid expensive late fees. And if you are charged too much, start using cash instead. You'll find yourself spending less.
Be Smart When Grocery Shopping
If you're like most people, groceries are one of your biggest expenses. The best way to keep your grocery bill in check is to plan ahead. That means making a list and sticking to it. Impulsive shopping won’t lead to saving money. Also check out coupons and store specials to double or triple your savings. And remember you can score big by buying in bulk, especially on basic items you use a lot like coffee, bread, cereal, etc. Follow these tips and you might save 50 Dollars or more each month.
Savings Around the Holidays
The great thing about holidays is that afterwards, stores need to get rid of all the things they stocked up on. Know any kids who need presents after Halloween? Costumes can go on sale for 75% or more. If you've got a place to store them, pick up next year's Christmas decorations during post Christmas sales. And you can save a bunch on other items (cards, gifts, etc.) during other holiday sales.
Frugal Gift Giving
Instead of spending a lot on gifts for others, try to come up with something more simple and personal (and less expensive). For example, put together a photo album or scrapbook for a loved one. It might take a little more work, but they'll appreciate the effort. And you won't have to spend the next month paying it off.
