Avoid Surprises When Your Restaurant Equipment Is Appraised

Appraising restaurant equipment often begs the question of which equipment is personal property – and should be valued for the purposes of the appraisal – or real property — as in, part of the real estate. While most folks have never considered whether a walk-in cooler, for example, is equipment or real estate, that’s a question that any restaurant equipment appraisal could discuss at some length. In general, equipment considered personal property includes all the free-standing equipment, such as ranges, warmers, stainless steel workstations, and most dining room furniture.

When restaurant equipment is installed, however, an appraiser must determine if the installed equipment should be considered personal property – which would be valued for the purposes of the appraisal – or real property – which would be considered part of the building and so not be valued as equipment in the appraisal. Installed equipment of this sort generally includes ventilation & fire suppression systems, refrigeration systems, and other attached items, the removal of which may cause damage to the property or create health code violations.

Determining the value of installed equipment depends, as many equipment appraisal questions do, on the appraisal premise of value. When appraising under an in-continued use scenario, for instance, the assumption is that assets will remain in-use at their current location as part of a going concern. In this case, it may be appropriate for the restaurant equipment appraiser to include the installed items and their related installation costs. If, on the other hand, the restaurant appraisal is being done for what could be an in-exchange or liquidation scenario (such as an appraisal for a bank loan collateral), then the assumption would be a piecemeal sale and the installed items would be less likely to be included.

Whatever the reason for a restaurant equipment appraisal — buy/sell, family law, collateral loan — it’s important to have a plan regarding installed equipment. And if the restaurant equipment appraisal is being done in conjunction with a real estate appraisal, as frequently happens, the respective appraisers should talk with each other to ensure that all of the subject assets to be included in the appraisals are being appropriately handled.

Now let’s discuss those 3 areas of installed equipment. And since a picture is worth a thousand words, I’ve included a few photos to illustrate the different types of equipment for which installation costs might or might not be included.

Ventilation Equipment

Typically the cook’s line area of a restaurant will have a ventilation hood, make-up air system, fire suppression system and fire alarm system specially designed for that specific location.

These items are custom designed based upon the overall square feet of the facility and its particular kitchen. The separate items are installed as a complete unit, on-site, and can make up a significant portion of the restaurant’s entire and original cost of initial equipment installation. And, as you might imagine, the cost of these expensive and specific installations is usually impossible to re-capture, especially in a liquidation scenario.

There are two reasons that ventilation and fire suppression equipment lose value: First, once the units have been connected together and attached to the building, they are difficult and costly to remove; compounding that is the fact that since the system was designed as a custom installation for a particular space, these units are unlikely to have any practical use in any other location.

Refrigeration Equipment

Installation issues related to refrigeration equipment are not as clear cut as with ventilation and fire suppression equipment, especially when it comes to walk-in coolers and freezers. Although many restaurant owners have never considered the fact that the walk-in coolers and freezers in their establishments may be part of the real estate and not equipment at all for purposes of their collateral lending appraisal, a fair number of restaurant walk-ins were indeed constructed in place and are considered part of the building.

One important part of the inspection process for any restaurant equipment appraisal, then, is to determine how permanent or removable a particular walk-in is. One great clue as to how removable a walk-in might be is the floor. Is the cooler floor grouted-in tile or poured concrete? It’s probably real estate. Many walk-ins, on the other hand, have raised floors and are obviously designed for easily disassembly and removal.

Other Attached Equipment

The same determination of removability v permanence applies to a variety of restaurant equipment, from dining furniture to shelving. Many items that are attached to the walls or floor (such as banquette seating, counters, or stainless steel shelving) may be claimed by the landlord as being real property. If damage could result from attempts to remove the equipment, the landlord may have a reasonable basis for the claim, not only to protect the real estate, but also to avoid health code violations. Health department inspectors can be very sensitive about holes in any surface where food may get stuck: they want all surfaces to be able to be easily wiped clean. So removing shelving or other restaurant equipment and leaving holes in the surface that the equipment was attached to could create a health code violation for the landlord, who would be responsible for any needed repairs.

Leased Equipment

Leased equipment, of course, is neither personal property nor real estate. The equipment appraiser needs to verify what equipment is leased and therefore not owned by the business owner or landlord. Typically, but not always, this includes dishwashers, soda fountains, coffee & tea service and sometimes POS machines (also known as point-of-sale) and telephone or intercom systems.

Questions on Equipment Installation Values

As usual, making the right call in regards to installation values in restaurant equipment appraisals comes down to good communication between the client and the various appraisers working on the project. The equipment appraiser should know the correct questions to ask and the appraisal client should expect the appraiser to ask them! When you are shopping for a restaurant equipment appraiser — whatever your reason for an equipment appraisal may be — expect an appraiser to ask these basic questions about installation costs. If the appraiser isn’t curious about leased equipment, real property and personal property, it may be a sign to do a little more shopping before choosing an equipment appraiser to value your restaurant equipment.

Posted in General | Tagged , , | Comments Off on Avoid Surprises When Your Restaurant Equipment Is Appraised

Books Set in Australia – Five Novels to Read Before You Travel

A trip to Australia is one that offers endless variety – you could spend your time partying in Sydney, you could make an adventurous journey to the Outback, or you could wallow in the many wineries on offer in several Australian states. Australia is a big country and unless you have months to spend there, you are going to have to make some decisions on how best to spend you time. To help you do that, here are some books set in Australia – five novels depicting different aspects of Australian life and history.

'The Secret River' by Kate Grenville

A story of Australia's beginnings, William Thornbill and his wife Sal are sent from London to the fledgling colony of New South Wales in the early 1800's. After some time in Sydney (very different from the Sydney of today!) They decide to try their luck on some land Will has set his eye on along the Hawkesbury River. The challenges they face from their environment, the local Aborigines and fellow settlers reminds us of how harsh the country was for those who decided to make it their home. There are some magnificent descriptions of the landscape as seen by an outsider, and the books gives a 'warts and all' look at the impact of settlement on Australia's indigenous peoples.

'A Town Like Alice' by Neville Shute

While the first part of this novel is set in the Malayan jungle during WWII, what follows is a story that brings you to rugged, country Australia. If you want to know what life was like in a small outback town (more of a hamlet really) in the 1940's and 50's then this novel gives you a good idea. You are subject to the harshness of the landscape and the incredible distinctions involved, as Englishwoman Jean Paget travels to the heart of Australia to find a man she met whilst captured by the Japanese in Malaya. The language and attitudes, particularly in relation to Australia's Aborigines, are true to their time and should be taken as such. But it gives a good indication of the realities of life in rural Australia, something which is still a strong cultural impact on Australians today.

'Breath' by Tim Winton

From the desert to the sea now in this novel by one of Australia's most respected writers. This novel is set in Australia's south-west corner, at a time when the area was more of a home for the logging industry than for the tourists and vineyards of today. Set mainly in the 70's, this is a coming-of-age story about teenager Bruce as he seeks to overcome the boredom of country life with some high risk activities – like surfing off what can be a dangerous and deadly coastline, and developing a Dark friendship with an older woman. As Bruce begins to grow up, both emotionally and sexually, we are grateful to some of the most poetic and exhilarating descriptions you will ever find of the 'religion' that is surfing. And you too, will feel as if you have explored the rugged and beautiful coastline of this part of the country.

'Bad Debts' by Peter Temple

Peter Temple is one of Australia's leading crime writers, and this novel is our introduction to his hero Jack Irish. – an inner-city Melbourne solicitor with a love of Australian Rules Football, gambling, and part time cabinet-making. This is Melbourne in winter, complete with its rain, pubs and shady underworld. Irish has barely been sober for a number of years after one of his dodgy clients murdered his wife, and now Danny, another former client, needs his help. But when Danny is killed, Irish discovers there are plenty of the city's political elite who would like the past to remain undisturbed, and he is determined to get to the truth. Temple's novels may not give you 'sun and sand', but you will be treated to as much genuine Australian vocabulary and city sub-culture as you can handle.

'Summerland' by Malcolm Knox

And finally to Sydney, and a novel that explores the life of the city's idle rich. Four young Sydneysiders have been friends since they were teenagers, and living around the city's northern beaches they have the world at their feet. They form two couples and spend every Christmas at Palm Beach, a popular holiday location for the affluent. But despite all this, their friendship is based on lies, as Richard finds out when he learns of the long-running affair between his wife and his best friend. If you'd like an insight into a live of the privileged few in Sydney, then this novel will take you there.

These novels are just a taste of many books set in Australia, but they are well worth reading in the lead-up to your travels or on the plane. Immersing yourself in a novel about the place you are going to will not only give you an insight into the place itself, but it will whet your appetite for your travels ahead, making it far more enjoyable once you get there.

Posted in General | Tagged , , | Comments Off on Books Set in Australia – Five Novels to Read Before You Travel

India, The Tourist’s Paradise

India is a land that offers a mind-boggling diversity of natural beauty, flora and fauna, a rich, vibrant and proud history of cultural heritage and is famous for its hospitality to people who are fascinated by the numerous stories enchanting stories about India and come To visit the country. And the country does not disappoint them. The majestic snowcapped mountains, the lush rolling valleys, the gushing rivers, green fields, gorgeous colorful flowers and luscious fruits, the arid deserts, the plateaus, the hills, the tea gardens on the mountain slopes, the orchards, the waterfalls, the list Simply goes on and on. Every year, thousands of tourists from different parts of the world flock to this country for visiting different places, to enjoy different festivals, to take part in adventure tourism, pilgrimages etc. Tourism is one of the largest service industries in India and plays a major role in providing employment to the population and the country's economy. The tourism ministry in the country caters to the various demands and needs of the tourists. The India Tourism Development Corporation is a Government of India undertaking dedicated to taking care of travel needs like hotels, flights, trains, car rentals etc.

If you are coming to India the first time, it is advised that you read about the various destinations you are planning to visit and make full arrangements for accommodations. There are reputed hotel chains which have luxury hotels in different tourist destinations of the country. You can make your bookings online or over the telephone using the useful contact information available in their websites. Check out these sites and know more about the facilities, the tour packages, the tariffs etc available here.

If you are traveling on a tight budget, then there are numerous hotels with affordable rates but with high living standards. Before booking you must ensure that the neighboring area is safe, proper transport facilities are available and you can communicate with the outside world too. Book your hotels, cars etc online and enjoy a reliably hassle-free vacation.

The tourism board advises tourists to contact only fully authorized, reputed and trustworthy tour guides and tour operators to ensure a safe travel. These guides should at least have photo identity cards issued by the Ministry of Tourism. Arrange for proper transportations that will take you to different parts of the country. If you want to visit the more remote and somewhat inhospitable areas like the mountains of Ladakh, or the arid deserts of Rajasthan or forest safaris, then you must take proper precautions against potential dangers, diseases etc.

To arrange for flights, search online for cheap flights to India if the budget is limited. There are many websites which list information about flight ticket prices from different airlines, compare the prices and provide you with the best results. You can also opt for affordable holiday packages in India along with affordable accommodations and transportations. Search multiple travel portals to obtain the best options and cheap tickets to India. Just type in your destination and the sites will return a list of airline ticket prices for you to choose from.

Welcome to India and enjoy a vacation experience of a lifetime!

Posted in General | Tagged , , | Comments Off on India, The Tourist’s Paradise

How to Do a Sales Pitch in Commercial Real Estate

In commercial real estate, you will undertake a variety of presentations, in a variety of circumstances. Most of them are business-like in nature, focusing on the needs of the tenant, the property buyer, or the property seller.

Get to the core issues

Each of these groups has unique property requirements and points of focus. It is their needs which must be identified and clearly addressed in the sales pitch or presentation. Many successful commercial real estate agents will have a preliminary meeting with the client or customer so that they can identify key issues and concerns. This allows the commercial agent to return to the client or customer in a few days with a well structured proposal that addresses the needs of the customer or client.

It’s all about THEM, not YOU!

When you design an investment or commercial property proposal for presentation, the document should be 90% regards the property and the client. Frequently you see this rule disregarded or broken with the proposal document being largely regards the agency and the personnel.

Rarely is the property transaction a simple matter of the property rental, the property price, or the physical elements of the property. In most situations, it is the combination of these things which must satisfy a fundamental equation of need that the customer or client has. In getting them to this fundamental need, you will identify an element of pain that the customer or client is experiencing. This is what you focus on.

They are Experienced

It is interesting to note that many clients and customers in commercial real estate are reasonably comfortable in circumstances of business negotiation. This means they may not tell you the total big picture or all the elements of a transaction until they are ready. Conversation and connection in the presentation process should be biased towards the client or customer using well selected questions which allow the agent to interpret the body language coming from the client’s response.

When you believe you have identified the element of clients pain related to the property transaction, you start to magnify the problem in terms of today’s market, then offering stable and logical solutions that your real estate agency business can provide to the client or customer. Invariably, the commercial real estate transaction in today’s market centres on financial matters such as:

  • High vacancy factors
  • Other property choices and chances are available
  • Underperforming leases
  • Unstable cash flow
  • Unstable tenancy mix
  • Tenanted conflict
  • Escalating building operating costs
  • A shift in demographics which exposes the property to a unstable future
  • Mortgage payment pressures
  • Age of the asset
  • Needs for refurbishment or extension
  • Competition properties attracting tenants away from the subject property

This type of information and interpretation requires your intimate knowledge of the local region. This is by both property type and by location. This is the higher value that you bring to the customer or client. Being able to distinctly define local market awareness is a major advantage in any commercial real estate presentation or sales pitch. You must be seen as the best knowledgeable solution to the problem.

From Experience

After many years working exclusively in the commercial real estate industry, I found that my unique skill was in market knowledge and the display of that in any formal presentation to the client. Being able to talk about market trends and financial performance in a solid and sound way will help the client understand that they need your services. Coupling that with your extensive and relevant database of enquiry clearly shows the client that they need you.

A fantastic commercial real estate presentation is a function and balance of lots of things. Things like:

  1. A well established pre-planning process is a strategic advantage for every commercial real estate presentation. Strategy is everything in commercial real estate. Every property presentation requires planning.
  2. Making sure you are asking the right questions of the client or prospect. Plan your questions relative to the subject property so that you help the client think about opportunity and changes that are possible.
  3. Using your market knowledge and giving good answers. Have a variety of market facts and trends available to call on. Feed them into your presentation; facts are always useful. They can also be used as a channel to direct the discussion when the client is forcing you to justify your approach or your experience. Confidence and control must be the basic rule of your property presentation. When the client takes control of the presentation you have lost.
  4. Using your experience in the marketplace so that you are telling relevant stories of success in similar properties. Stories of other properties will always interest of the client.
  5. Making sure your personal presentation is optimised for the connection in the presentation. It can be that you are using a combination of the proposal document, the marketing document, and computer slide presentation, samples of your database, photographs of the subject property projected on to slides, and photographs of comparable properties projected on to slides.
  6. Choosing the placement of people at the table or strategically positioning them in the room is always important. Much has been written about where you should sit relative to the client. The basic rule is adjacent to the client rather than across an area of barrier such as a table. Being within arm’s reach allows you to pass documentation to the client at the appropriate time. Documentation should not be provided to the client until you are ready for them to review it; otherwise it is a distraction of their attention.
  7. Make sure that your proposal is simple and yet well directed with a clearly defined outcomes of sale or lease. Many proposal documents in commercial real estate are much too wordy so the main messages are lost and not clearly defined. The best proposals are less wordy and more illustrative. The best balance of a commercial real estate proposal is a mixture of 25% words, 25% pictures, 25% graphs, and 25% white space. This becomes a document which is clearly read and understood.
  8. Combine good illustrations and photographs of the subject property into the proposal or presentation so that any lengthy descriptions or paragraphs are broken up. This will keep interest of the client in your documentation.
  9. Make sure that your marketing package is value for money, and yet reaching the target market that the property serves or needs to attract. All too often, we see examples of generic marketing by the commercial real estate agent to the broader and less specific marketplace. Showing the client that you clearly know and will attract best the target market will always help your conversion to a potential listing. Be very specific about the target market and how you will reach it.
  10. Ensure that your commission costs are fair and reasonable for the location. In most circumstances, discounting your commission should not be an option as it will make you poor and remove or detract from your enthusiasm for the sale or lease. ‘Cheap’ means ‘cheap and without focus’ and the client needs to know this. The property deserves better. You are not cheap because you are the best and you do a great job. A fair commission is always paid for a positive property outcome.
  11. Always provide testimonials that are relevant to the property transaction. When you combine relevant history and details of happy customers into your presentation you will make the client feel more comfortable.
  12. Always display clear and sound market knowledge that impresses the client relative to their property. This will include extensive awareness of comparable properties that compete with the subject property. You should be able to talk solidly about property prices, comparable rents, rental growth, returns on investment, changes to the future demographics of the area, and properties in the immediate precinct of relevance. In many cases, it pays to walk around the local area just prior to any property presentation so that you bring immediate and clear pictures of the precinct to the discussion. Many times this has been of significant advantage in my presentation processes. Talking about neighbouring properties localises the client and their thought processes.
  13. Come up with a variety of ways to serve the client. Innovation and relevance will always impress. In today’s market, this is relatively easy considering the marketing opportunities and tools provided by the internet & technology. Be proactive in your property promotion processes so that the listing for sale or lease stands uniquely different in its marketing campaign from the others in the area. This does not have to be expensive to the client or to your office, given that the internet and electronic technology is historically cost effective. In today’s market, the traditional methods of publicising the property in the property pages of the local paper, is becoming much less important in the marketing campaign. Most commercial property buyers and tenants research the market from the Internet first and foremost.
  14. Almost every property agency will say that they have excellent communication and connection skills to support the property promotion process. From experience, this is largely incorrect and typically the average commercial salesperson or leasing person will exercise ordinary communication channels with the client. Put yourself in the shoes of the client. They expect and deserve frequent updates on the promotion of the property even when nothing is happening or when the adverts are producing little response. When a property campaign is not producing the results, it is important that you act or adjust with alternative recommendations and strategic changes to the promotional campaign for the client to consider. Rarely would you get to the property campaign correct in the first week. It is in this time that you must consider fine tuning the promotion process so that the target market is being reached in a timely and effective way. This means that every property enquiry generated from your promotions must be tabulated so that you understand what channels of marketing work most effectively with the property in question.
  15. When addressing the client or the client group in a formal property presentation, the answers and information you give must be delivered well and provide relevant solid property knowledge, in a practiced and professional delivery. Any sales or presentation tools relative to the property must be relevant and you should know how to use them with exceptional skill. Fumbling and faking information is not tolerated by the client.

So there you have it. These are some of the key skills to use in a commercial real estate presentation. Whilst many real estate agents think that they are the best alternative in the market to promote sell and rent commercial property, the reality is they do not get the message across when it matters most in front of the client.

To be the best commercial real estate agent in your area, you must show that you are just so, and you do this in the first 10 minutes of the time that your presentation takes. The client will have formed an opinion by then.

Be prepared to walk away from any demands for discounting that the client or customer demands. In this market they need a great commercial real estate agent providing a great job; discounting is not an option. Show pride in your services and walk away when the client demands discount in marketing or lower commissions.

Posted in General | Tagged , , | Comments Off on How to Do a Sales Pitch in Commercial Real Estate

Seven Cover Reviews of the Best Travel Trailer Covers Sold on the Internet and Retail Stores

Usually an outdoor enthusiasts begins to show interest in a travel trailer when they feel that they have outgrown the “sleeping in the outdoors or tent” phase and are ready to enjoy the luxuries of home and yet still have that feeling of living & camping outside by the ocean or lake or in the mountains or desert. Purchasing a travel trailer is an investment that the RV owner hopes will last for many years and numerous excursions. Travel trailers can and will last for many years, sometimes decades. The interior will keep its looks as long as it is protected from sunlight exposure. If an RV is left uncovered the sun’s UV rays will beat down on the camper and fade the interior upholstery, curtains, blinds, carpets, and bedding. The exterior will show its age a great deal faster than the interior. In only a matter of years a travel trailer that is left unprotected from the weather, will exhibit quick and steady exterior damage when the decals fade, crack, spilt and eventually wear off. The plastic window and door seals will turn gray to black in just a year. The welded seams that connect the sides will expand and contract with every snow fall because freezing/melting cycle that occurs when the snow melts on the roof crevices but remain in the crevice, then re-freezes in the tiny, microscopic crevices. These seams will expand inevitably with the freeze cycle that causes a widening of the connecting seams. This constant cycle of water freezing, melting and re-freezing will eventually cause problems with the roof which results in very costly repairs.

The easiest way to prevent the aging process on your travel trailer is to cover it with the best RV cover for the area in which the travel trailer will be stored and for the time in which you will be storing your camping trailer. With so many RV covers on the market how are you going to be able to find the cover that you need?

For the most part, all of the deluxe RV storage covers discussed in this article are sold on the Internet (as well as Walmart, Sears, and Cabelas) and are basically made of the same material (polypropylene) with few differences. Advertised as deluxe winter snow covers these travel trailer RV covers, (Expedition, ADCO, PolyPro 3, Camco and CoverKing) are generally made of triple-layered breathable non-woven polypropylene. The roof/top of the cover is made to accommodate the AC on the roof and is usually large enough to extend over the sides to protect the awning. At the joining seams where the roofing top meets the single layer of polypropylene sides there are vent flaps that allow the cover “to breathe”. These vents prevent wind friction and moisture buildup that would cause mold and mildew to develop. The sides have several long zippered entry panels that will allow you access to your travel trailer during the storage period. The entire cover is usually secured with an integrated tie-down strap system with adjustable click-close buckles and tension panel flaps in the front and back of the travel trailer that reduce cover stress when tightening or loosening the straps on the cover. This gives the RV cover a semi-custom fit. The major differences between all of these winter snow covers comes in the price and the length of the warranty of the product.

Winter Covers for Travel Trailers 20-33 ft Cost & Warranty

Expedition by Eevelle Cost: $205 – $321 Warranty: 3 years

ADCO Designer made with Tyvek Cost: $262 – $365 Warranty: 2 years

Poly Pro 3 by Classic Accessories Cost: $273 – $341 Warranty: 3 years

Camco Ultraguard Cost: $262 – $415 Warranty: 2 years

CoverKing 600 Denier Presidium Cost: $375 – $575 Warranty: Repair for 1yr

When a travel trailer is stored through the summer in the extreme Southeast and Southwest, the cover must be made from an extremely rugged durable woven material. Travel trailers that are in the sun year-round must have a cover with ultimate UV protection. Winter snow covers (like the Expedition, PolyPro 3, Camco Ultraguard, CoverKing Presidium & the Tyvek ADCO cover) disintegrate within a few short months if they are used to protect the RV through the summer. The non-woven fabric cannot stand up to the intense UV rays in this area of the United States. There are two RV covers made of woven material. The first cover that is made with the newest technology in UV block protection is called the PermaPro RV cover made by Classic Accessories. This RV cover is backed by the newest technology in extra strength UV block protection. The PermaPro cover is made of a light weight extra strength ripstop fabric that is tear resistant with nylon reinforcements in the material. The fabric resembles that used in parachutes and athletic wear. This water-repellent fabric repels rain and snow to make it an all season protective RV cover. This travel trailer cover ranges in cost from $375 – $505 and is backed by a four-year warranty.

The Goldline RV cover sold by Eevelle has long been recognized as the best RV cover by customers and dealers alike. The Goldline RV covers are designed to outperform every other RV cover in all the critical categories of RV protection- strength, durability, water repellency, etc. The extra strength yet supple Goldline Tru-weave woven fabric can handle the strongest winds and can stand up to the extreme UV rays of the sun as well as being a water-repellent rain & snow semi-custom storage cover. This travel trailer cover ranges in cost from $455 – $578 and is backed by a five-year warranty. The Goldline is also the only RV cover made for small travel trailers (10 – 20 ft.) as well as the extremely large ones (up to 46 ft. long).

PermaPro and Goldline are the only extra strength travel trailer covers that can be used as summer storage covers. Their woven design stands up to the winds that accompany winter and foretell the change of seasons. Both of these covers are truly all season RV covers that will protect the investment you made into your travel trailer as well as all the upcoming vacations & excursions you will take well into the next several years.

Posted in General | Tagged , , | Comments Off on Seven Cover Reviews of the Best Travel Trailer Covers Sold on the Internet and Retail Stores

Cliches Associated With Insurance

Isn’t it funny how many cliches can be associated with insurance? I think when a couple of sayings and anecdotes were invented; the inventors had the term insurance in mind!

Have a look at a couple of the following sayings and tell me if you agree…

Nothing is certain, but death and taxes. This can be changed to – nothing is certain, but death and insurance. No matter who we are, what we do, how much money we have or which car we drive… we need insurance!

All is fair in love and war. Once again, this can be changed to “all is fair in love and insurance.” Don’t you agree that we are at the mercy of insurance companies? What they say is law and we have to just sign on the dotted line and accept the fact that we are paying tons of money each month on something that we do not really want. Do not accept the first quote that you are offered. Shop around until you find a policy that you are completely satisfied with. Do not allow any broker, agent or insurance company to force you into taking a policy that you are not happy with.

He has been taken for a ride – he has been taken for an insurance ride! It’s unfortunate to hear how many insurance companies take their clients and customers for a ride. This is usually by means of not wanting to pay out a claim, increasing premiums drastically, or other matters that we have no control over. Always read the fine print before signing any insurance document. By having a good understanding of what your insurance policy entails, a lot of this can be prevented.

A chain is only as strong as its weakest link – An insurance company is only as strong as its weakest link. When wanting to obtain insurance, make sure that you talk to an agent or a broker who knows what they are doing! The worst thing in the world is dealing with an insurance reseller who has only one thing on the mind and that is to meet their monthly sales targets. Insurance is a very important investment; therefore it is crucial that a qualified professional takes care of your needs and requirements.

A good beginning makes a good ending. Change this to “a good insurance company makes a good ending” and you will be one of the many individuals who are satisfied with the service received from their insurance companies. If a company offers outstanding service and handles queries and claims effortlessly, even a burglary or an accident can have a good ending.

After a storm comes a calm. If you can change this saying to “after an insurance claim, comes a calm” – congratulations! That means that you have recently put in a claim and that it was handled successfully, enabling you to relax after everything has been taken care of.

I hope you have enjoyed this tongue in the cheek look at insurance sayings – it might be a bit of useless information, but hopefully it managed to put a smile on your dial!

Posted in General | Tagged , , | Comments Off on Cliches Associated With Insurance

Could the Great Chicago Fire Been Prevented?

  • Nearly 300 deaths
  • More than 2,000 acres
  • 17,500 buildings
  • 73 miles of road
  • 90,000 left homeless
  • $ 222,000 in damage
  • The destruction of between two and three million books from private library collections

What do these have numbers have in common? If you answered the Great Chicago Fire of October 1893, you would be correct. And while as devastatingly as fire is in Chicago history, it is not the only horrific fire-related Chicago history. In fact, just a few years later (December 1903) there were more than 600 deaths when the Iroquois Theater burned and later listed as the deadliest single-building fire in American history.

What is more interesting, is that while the exact cause of the Chicago fire has ever been determined, the Iroquois Theater fire could have been prevented had the proper measures been taken. History shows that a Chicago fire department captain, toured the facility and noted that "there were no extinguishers, sprinklers, alarms, telephones, or water connections; the only firefighting equipment available were six canisters of a dry chemical called" Kilfyre ", which was Normally used to douse residential chimney fires. "

He reported the problems to his superiors, but was told that nothing could be done, as the building had its own fire warden. In addition to the lack of firefighting equipment, the editor of the Fireproof Magazine , toured the facility and reported that there was an "absence of an seize, or stage draft shaft; the exposed reinforcement of the (proscenium) arch; the presence of wood Trim on everything and the obligation provision of exits. "

After each of these events, Chicago rebuilt. But what if there had been something in place to send out an early alarm? How many lives would have been saved had the Iroquois Theater taken the time to make the necessary changes? Yes, it was a century ago, and modern assumptions as we know today were not available, but that does not excuse the loss of life and property destruction.

So, with a proactive focus in mind, what are you doing to protect your home and family from fire, theft, burglary or mayhem of any sort? Whatever you choose to have utilize the services of one of the local Chicago home security systems or opt for a nationally recognized company, taking care of what matters to you is important. After all, as the early residents of Chicago learned, it's not much fun to clean up after a fire! Do not make the mistake of thinking you could be excuse form personal injury, property damage or a break in. Do your part to keep your family safe.

Posted in General | Tagged , , | Comments Off on Could the Great Chicago Fire Been Prevented?

Manage Debts the Smarter Way!

Spiraling debts can be a cause of concern for any borrower. They can create an adverse effect on the financial status of the borrower. Wondering how to deal with the troublesome situation? If you are facing financial hardship due to them, it is time to seek help. Debt management might be the solution to all your problems! Read on and find out how …

Know why should you seek this kind of service?

O One affordable monthly payment
O Reduced credit repayments
O The guide to a debt free future

The truth is that credit card debts are usually an outcome of unplanned spending and late repayments. They are the worst debts you would have encountered! You have a number of options to get rid of such problems.

When you opt for solutions with a team of financial experts, the professionals will assess your current financial situation and help you choose options on a spending plan. You can seek help from such experts. They will negotiate terms of your debts with creditors as well! In simple words, they will take care of all kinds of debt problems on your behalf.

There are several ways of managing this kind of problem. To start with, you could avoid credit card usage as much as possible or opt for consolidation finance as a part of the solution. You must begin by trying not to spend too much over your usual balance. This will help you ease your debt worries. Doing so, will ensure that you are on the road to a debt-free life sooner than you had imagined!

Managing payment of credit card bills can be one of the major contributing factors of managing such kind of problem. It saves a large chunk of your money with one single payment every month, well within your reach! It is much simpler to pay just one bill every month. Here, if you are burdened by this kind of problem, you need not put yourself through any more stress! By following this kind of advice, you can manage your financial problems easily. You can also reach out to financial experts who can take care of your financial predicament.

You must consider these kinds of solutions only after a careful analysis of your personal circumstances and constraints! Make sure you make the company aware of your problems. This will only help arrive at a suitable solution.

Posted in General | Tagged , , | Comments Off on Manage Debts the Smarter Way!

Estate Liquidation – Pros and Cons of Tag Sales and Auctions

Executors faced with liquidating an estate’s personal property will quickly find that it is their most time-consuming administrative task. Executors who don’t perform their duties could be removed from office by the Probate Judge, so it is important that they single-mindedly pursue disposing of the estate’s property so that the bills can be paid and the estate settled.

What you’ll get from this article

Executors have three main liquidation options, and I will discuss the pros and cons of each in this article. Any company chosen to liquidate an estate should be vetted; I will tell you how to do this conscientiously, and I will also propose the best liquidation method. I assume that the twin liquidation goals of the Executor are to achieve the greatest cash benefit to the estate and to leave the house broom-clean so that it can be sold. Of course, there are ways to maximize the cash return for each type of sale, and I’ll tell you what they are.

Investing ten minutes into reading this article could save an Executor many hours of work.

Option 1: Have An Auction On-Site

Benefits of an On-Site Auction:

Auctioneers are very competitive lot. It should be an easy job for an executor to find an auction company willing to take the estate liquidation job, and commissions will be competitive. A strong argument for an on-site estate auction is that when the auction is over, there will be very little clean-up. If you like, the real estate can be auctioned as well, since auctioneers are licensed to auction the real estate and other titled property. In one day, the house, car, boat, RV, and all the household goods could be sold.

Negatives for an On-Site Auction:

Auctions are driven by competitive bidding. Consequently, it is necessary to have a lot of people at your auction. Big crowds require nice weather, plenty of parking, bathrooms, food, and refreshments to keep the people from leaving. Online bidding can be included to boost attendance, but it is the local crowd that builds excitement and drives the prices up. To attract a crowd, the estate must have collectibles and other quality goods. Run-of-the-mill goods that can be purchased at the local thrift store are insufficient to attract a good auction crowd.

Suggestions for an On-Site Auction:

If your estate has many large collectibles, like antique furniture or a piano, an on-site auction may be your best choice. Summer weekends, when the weather is warm and dry, are the best times to hold an on-site estate auction. The auction company you hire should be equipped with sound equipment, canopy tents, display tables, and plenty of help for fast checkout.

Option 2: Auction Gallery Consignment

Pros for Auction Gallery Consignment

If weather is a concern, you may want to consider consigning your items to an Auction Gallery. Consignments at an Auction Gallery are grouped according to the type of item in order to maximize turnout and get the best prices from their collectors. For example, there may be an auction dedicated to art and home decor, or musical instruments, or ceramics.

Cons for Auction Gallery Consignment

There are quite a few reasons for not consigning to an Auction Gallery. For starters, many Auction Galleries will take only the best items from the estate. Ninety percent of an estate is made up of items that are of little interest to the auctioneer, which leaves the Executor to deal with the remaining ninety percent of the estate property. Lastly, when an Auction Gallery spreads the merchandise out over several auctions, it can take months for all the items to sell, delaying the closing of the estate.

Tips for Auction Gallery Consignment

Before you consign to an Auction Gallery, ask the auctioneer how your merchandise will be distributed between auctions; get a guaranteed settlement date. You will also need a plan for disposing of all the remaining estate merchandise.

Option 3: Tag Sale On-Site

Pros for Tag Sale On-Site

Tag sales have several advantages over an on-site auction. For those that are not familiar with tag sales, the sale is held on the premises and in the house. Companies that specialize in tag sales are less common than auction companies. At a tag sale, everything in the house is priced, much like at a yard sale. Shoppers will browse through the house, and choose the items they wish to buy. When buyers arrive at the house, they take a number, and are admitted into the house when their number is called. Tag sales usually start on Friday evening and end Sunday evening, so there is no need to provide food or bathroom facilities. Tag sales can be held rain or shine and in any season

Cons for Tag Sale On-Site

The biggest disadvantage in hiring a tag sale company is that tag sale companies are not held to the same legal standards to which auction companies are held. Auctioneers and Realtors are bound by law to the estate by a fiduciary bond. A fiduciary relationship binds the agent by law to act at all times in the best interest of the estate. Fiduciaries are licensed by the state, must pass tests, be bonded, must hold all funds in an escrow account until distributed, and has to settle the account with the estate within a specific time frame.

Fiduciaries must also keep accurate records and follow certain protocols. Failure of a fiduciary to follow procedures can result in fines or loss of license. Tag sale companies are not held to the same legal standards, although they certainly have a moral obligation to the estate. Tag sale companies can handle the details of the sale and the distribution of the money any way they see fit.

Another problem with tag sales is that typically there is merchandise left over after the sale. Often, there is a LOT of merchandise left over. When a lot of items are left over, the executor then has a clean-out problem, because the house must be left “broom-clean” before a realtor will list the house for sale. Unlike an auction, where prices go up with each bid, tag sale shoppers want to negotiate a lower price for everything, which is not only time consuming but costs the estate money.

Tips for Tag Sale On-Site

When working with a tag sale company, read the contract thoroughly, make sure settlement dealines are included. the operator should have a solid pricing plan, adequate staff, and a solid track record.

What about Internet Sales and Retail consignment?

Internet sales work well for items that can be shipped easily, like small collectibles, books, and artwork. Before you decide to sell these items online, remember that having a nice assortment of collectibles at your auction or tag sale is what will attract the buyers to your event. If you sell all the good collectibles online, you won’t get very good attendance at your sale. Dont even consider a retail consignment; they will take too long to sell your items.

How do I know if I am dealing with a reputable company?

Unfortunately, asking for references doesn’t always work; no one gives a bad reference. The Better Business Bureau lists ratings for some, but not all, companies. With an auction company, most states have an occupational licensing board which can give you the status of an auctioneers license and tell you if they have any complaints on file. Checking up on a tag sale company is a lot harder, because there is no agency keeping track of complaints. One website that is helpful is http://www.ripoffreport.com. When at the site search the name of the company you wish to investigate; also type in the owners name to see what that brings up.

Hire a company with a solid internet presence

These days, it is imperative for a company to have an online network. A company that is well-connected in the online world is likely to be a company that is well-networked in the local area. It’s unlikely that a company with a poor or no website will be able to use the internet to generate sales for your event. Doing a Google search of the company’s name or web address is the best way to to see how well connected they are. Go to Googles search bar (not the address bar at the top of the page, but the search bar in the center of the page) and type in the companys web address starting with www. How many search results are returned that pertain directly to the company you are investigating?. If the company is a national franchise, disregard the results for the general franchise and only count the results where the local company is mentioned. Ranking well with the search engines doesn’t necessarily mean the company will be the best one for your needs, but it is a good indicator of the professionalism of the company. Typically, companies that have lots of returned results do so because other organizations want to associate with experts in their field, so they link to the experts website. A large number of linking companies is like a “vote” for the company being linked to. A company that displays lots of Google results is usually one that is recognized as being expert in their field.

So, what’s the best way to liquidate an estate?

The best type of sale for estate liquidation is to hire a licensed fiduciary to sell the estate property in one day, to the bare walls, any time of year. To achieve this would require an event that is part tag sale and part auction, run by an auctioneer. Since Tag Sale operators are generally not licensed auctioneers and auctioneers usually hate to do tag sales, that’s a tough solution to implement. There are auctioneers that combine these services, however. Finding such a company will give an executor the flexibility of having a sale any time of year, the ability to sell down to the bare walls with nothing left over, and the assurance of dealing with a state licensed and bonded fiduciary.

Posted in General | Tagged , , | Comments Off on Estate Liquidation – Pros and Cons of Tag Sales and Auctions

Single Premium Life Insurance – Pros and Cons

Single Premium Whole Life Insurance (SPLI) Explained

Most of the time, when we purchase life insurance, we agree to make monthly, quarterly, or yearly payments. There are some whole life policies which can be paid off, usually over a period of 7 years or more. But another way of purchasing coverage has begun to get more attention lately. This simply involves making one large payment in the beginning. The single premium is set to fund the coverage for the rest of an insured person’s life.

One obvious advantage might be the guarantee that life insurance is taken care of without having to worry about paying any more bills. One obvious disadvantage, as you may have already guessed, is the fact that this first premium must be pretty large.

Who Considers SPLI?

The type of person who may consider this unusual way of paying for a life insurance policy would have a lump sum of cash they are sure they will not need to spend for the next few years. They will also want to leave money to their estate, and they want to turn the cash they have into a larger life insurance death benefit. This way they can be assured they will be able to leave money to their kids, grand kids, or a favorite charity..

Advantages of Single Premium Life

  • Set it and Forget it – You can make on premium payment, and be assured you have funded a lifetime policy.
  • Estate Building – Most of the time, the cash will buy a death benefit of several times the original premium amount. For example, let us say that a healthy 65 year old could turn $12,000 into a $100,000 death benefit to leave behind. That was just an example. Premiums will vary.
  • Cash Value – Since the one large lump sum fund coverage, the actual cash valued of the policy should grow very quickly. The policy may have enough cash value to be borrowed against or cashed in at some future point. The cash value may grow by a set interest rate, or it may grow my some market index, like the S&P 500. This will be specified in the particular policy you buy.
  • Policy Provisions – Policies may have an accelerated death benefit, or provisions for early surrender or using some of the face value while the insured person is still alive in special cases. These cases could include terminal illness or nursing home confinement. These functions can give you a policy which performs “double duty.”

Disadvantages of SPLI

This product is not for everybody. Look at some of the disadvantages to consider.

  • You Need The Money – You must have the lump sum payment. Of course, the premium will vary by the age and health of the insured person, the insurer, and the amount of coverage you buy. The premium is usually several thousand dollars. This must be money that is not needed for the next few years, or ever. If this is in question, you may be better off by buying a policy with multiple payments.
  • Early Surrender Charges or Fees – Here’s why you must use money you will not need to live on. Most policies do have early surrender charges or fees. If you do have to cash in the policy before this term, set in your individual policy, you will probably get back less than you put in. You can only benefit if you can wait until the date of fees or surrender charges has passed.
  • Tax Considerations – These type of policies, purchased with one payment, are considered to be Modified Endowment Contracts (MEC) by the IRS. They do not have all of the tax advantages or regular life insurance.

Example of SPLI

Let us say that a 65 year old retired teacher has a pension and savings which enable her to live comfortably. She also has $12,000 in cash from her own parent’s estate. She would like to turn this cash into a much larger estate she can split with her son and a favorite scholarship fund.

In this case, she is able to purchase a $100,000 single premium life policy. This works out well for her in a few ways. This policy has a provision for an accelerated death benefit in the cash of terminal illness or nursing home confinement, so she does not need to worry about purchasing another long term care policy.

Is Single Premium Life Right For You?

In order to make a good decision, it will help to figure out what you own retirement planning goals are. This product can be a good solution for some people.

Posted in General | Tagged , , | Comments Off on Single Premium Life Insurance – Pros and Cons