September 19, 2008
Proving income, Rental, Small Business
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Over the past few months I have been getting a number of questions from people who are considering becoming landlords. One question that is asked pretty regularly is, “How much should I rent my house/condo for?”
My answer is always, “This is not my area of expertise but many people go to a great local website for Calgary and Edmonton called RentFaster.ca.”
It won’t tell you how much you can rent your place for but it can serve as a good way to find out how much comparable properties are renting for.
Check it out if you are considering getting a revenue property.
All the best.
Jason
June 27, 2008
Proving income, Small Business
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As has been mentioned previously in this blog, I am a huge proponent of small business owners. They don’t always get covered in the press but I believe they are the drivers of our strong western economy. It is this deep respect that drives me to learn how to help these people better.
Contrary to many mortgage myths small business owners can get a mortgage for their home and/or revenue properties. For the most part they have to meet all the same criteria their employed counterparts would have to meet with a key exception - proving income. Employees of companies simply get a letter from their HR department and a recent pay stub to show what their yearly wage is. Small business owners don’t generally have pay stubs and no lender would accept a letter for the small business owner that was created and signed by the small business owner. So we find other ways to prove your income.
One of the comments I typically hear from small business owners is, “Why do they ask for so much paperwork?” The reason why is to get third party corroboration from a few sources to ensure the person is active in a business that makes money.
There are two different ways to do this depending if you are a sole proprietor or a shareholder in an incorporated company.
Sole proprietor
Sole proprietors report to the government their business revenue within their personal tax submission (T1 General) every year. So when they need a mortgage they often need to ensure that they have filed their taxes for the previous two years (including the statement of business activities) and paid all their taxes owning. A copy of the T1 Generals submitted to CCRA will be sufficient to satisfy the lenders proof of income criteria in most cases. If taxes are shown to be owed then we need a receipt that shows these have been paid.
Shareholder of an incorporated company
If a person is at least a 50% shareholder in a corporation then the lender will need to see the following:
- The last two years audited financial statements,
- The last two years Notice of Assessments – to confirm that no taxes are owed to the government. If taxes are shown to be owed then a receipt is needed that shows these have been paid.
Both sole proprietors and shareholders in an incorporated company may also need to show one of the following:
- The company’s business license,
- The company’s articles of incorporation.
The above noted documentation will be required and in some cases further documents may be needed as well. Please contact me directly to determine what specific documents you will need.
As I mentioned earlier I respect small business owners and want to make the process for them as simple as possible. This is why I educate my customers so they know what to expect.
April 29, 2008
Small Business
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They type of people that I am passionate about helping are people who have their own small business who find themselves confused because their bank won’t help them even though they have been a customer of theirs for a long time. All they are looking for is a person who can help them get a mortgage to secure their home or to eliminate debt and who is willing to take the time to really listen and genuinely help.
My customers are interested in integrity, honesty, empowerment and success. They feel it is important to work with people who embody these characteristics as well.
My customers are not the people who started their own business to make a quick buck or to take advantage of people. They took a big risk because they believed in themselves and what they offer has value to people.
To use my services my customers need to have confidence in me not only to be a great mortgage broker but also to be a person who genuinely wants to see them succeed.
To do this I let every one of my customers know about my code of conduct and both of our responsibilities. This way they know what is expected of them and what to expect of me.
I feel fortunate to have worked with many great small business people.
- I have listened to their problems.
- Analyzed their data to find the right product for their situation.
- Presented it to them in a clear and concise manner.
- Ensured that they felt comfortable before they signed anything.
- And followed up with each and every one of them to make sure they were satisfied.
I am building my business with a strong foundation and l look forward to offering a service of value to southern Alberta small business owners.
April 22, 2008
Small Business
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If you have read marketing books you may recognize the phrase, “Unique Selling Position”. This is the idea that entrepreneurs need to differentiate themselves from others who sell similar products. It works upon the idea that when you focus on a specific area/market you will be able to meet the needs of those customers better thereby making you more valuable to those customers and it turn get their business. It makes sense to me.
One of the issues that I have with this is that people typically choose a Unique Selling Position based upon how they can maximize profits. This to me seems reasonable but I believe it misses the key to real business success – the passion.
I have chosen my Unique Selling Position to be focusing on getting people with small businesses to use me as their residential Mortgage Associate. I chose to focus on these people because I believe in these people. I believe that these risk takers start innovation. I believe that these innovators find new ways to add to their business and to their community. I believe in their dream to make a better life for their family and their country. This is why I actively seek their business because I believe I can help them make their dreams come true.