County Property Taxes – Their 6 Uses

County property taxes are often the highest among the taxes and that we surely dislike paying. This bill gives you good shock at times. This is because these taxes are indeed soaring high these days. However, they greatly vary as per the area you reside in and the state you live in.

I’m sure you wonder as to what is the need of this tax? Why do we pay it? Where is this money utilized?

Well, you would be glad to realize that a major portion of these taxes are stay right with in our local communities especially for our benefit. This money is diversified in fields like education, police & firefighting facilities, etc.

While some local city & county property taxes are given to the state, in almost all areas at least 90% property taxes paid by us remain local benefiting our community at large. Even in the state revenues, they just form a meager portion.

Given below are the most common uses of the county property taxes.

1. Schools

In a majority of areas across the nation, more than half of each Dollar paid as the County Property Tax is used to fund the local school district. In fact, this is the most important source of income for the local school districts in a number of states. These schools use the tax money to purchase books, to pay the salary of the staff & the teachers, for the maintenance of the school buildings & buses, etc.

2. Roads

The money paid as County Property tax is extensively used for the maintenance of roads. All sorts of minor repairs and other requisites like widening of the roads are taken care of in order to maintain the good working order.

3. Police and Fire Support

The city & county property taxes are also used as funds to pay the salaries of our sheriff. Also, in most cases, our local police officers and firefighters use this money to support the necessary infrastructure required for these services like the buildings and vehicles.

4. Public Libraries

It is a less known fact that libraries most oft are maintained by the county. Hence, the county property taxes are used primary funds for the building maintenance & staff salaries. Then of course, it is this money paid by the tax payers that is used to purchase new books for the library.

5. Hospitals

At times Government operated hospitals have to be closed due to losses. But it is always in the interest of the community to have a hospital close by in the vicinity itself. So the tax payers have to bare a certain amount for this facility. Some part of the county property tax that we pay goes to the hospitals that run in to losses in order to keep them afloat.

6. County Government

And, among the essential uses, county property tax funds the local county government. They use this money for the upkeep of the office space and to pay administrative salaries.

Now, the next time you use the community services, remember that it’s your money being used. It’s your civic duty to watch how each Dollar is being spent. Check the unnecessary spending. And, always remember that county property tax is the only tax that benefits you most individually.

How to Buy Apartment Buildings and Create Wealth in Today’s Economy

Too many investors are under the mistaken impression that real estate is no longer a viable vehicle for their money. The reality is multi-family apartments can be an excellent addition to an investment portfolio. In these troubled financial times many families are being forced from their single-family dwellings, going from homeowner to renter and apartment buildings are more in demand than ever before.

With foreclosures coming at a record pace in this country, many people are finding it difficult to find affordable housing to replace their homes they can no longer afford with rising mortgage costs. Additionally, refinancing their existing home has become more difficult with tighter controls over mortgage loans, making it more difficult to secure funding for getting out from under their heavy debt. Many real estate investors shy away from owning rental properties, with visions of the perceived problems often associated with apartment ownership.

The idea of spending their free time maintaining rental properties and chasing down late rents has many investors turning to other form of investments to round out their portfolios. However, the return on an apartment building investment, especially in today’s volatile housing market, should provide the savvy investor more reasons to consider this type of investment. Understand that no matter the condition of the economy, people will always need a place to live.

Consider the opportunity to buy other forms of investments, such as stocks and bonds, with 20 percent down. There are very few opportunities for this to happen with most investments. On the other hand, an investor that can put down 20 percent of the purchase price for an apartment building has a good chance of securing the needed funding to purchase the property. Buying an apartment building offers investors millions of potential renters and provides a better return on their money than buying into foreclosed homes in an already depreciating market. In fact many people use owner financing and actually buy apartment buildings with no money down at all!

When looking for apartments, caution must be used to ensure the property has been cared for and can be purchased at the current market value instead of an inflated price. Many existing properties, that have been well maintained, can offer the opportunity to receive higher rents that can compete with newer apartment complexes, without the higher initial purchase price.

With any investment in real estate, the main benefit of ownership is being able to leverage the investment. With most lenders willing to loan 80 percent of the property’s value, any valuation increase will not only increase the property value, but will also improve the return on the buyer’s initial investment. Apartment owners can count on the cash flow from their investment, that is money left over every month once all expenses have been deducted from the rent income. This cash can be placed into an interest-bearing account to add to the return on the investment.

An apartment building in the right neighborhood can also improve the overall property values in the neighborhood with appropriate maintenance and an owner that considers the property as an investment vehicle as opposed to looking at it only as an income generator. Most apartment owners have found that if they take care of the property, as well as their tenants, the return on their investment will take financial care of them for the future.

Alternative Financial Programs and Alternative Financial Sources

An alternative financial program is a plan offered by a commercial financial company that business owners turn to when they have been denied financial assistance by traditional lending institutions such as banks. Traditional financial agencies usually turn down business owners with high debt, previous financial difficulties, or needs for start-up capital. Commercial finance companies are willing to loan more than a borrower’s worth. However, these companies also charge higher interest rates because of their willingness to lend to high-risk individuals.

Commercial lenders offer a variety of alternative financial programs, such as loans against a business’s inventory, accounts receivables, equipment, and property. Loans against inventory or accounts receivables are intended as a means for a business to obtain a short-term cash flow. Equipment and property loans last anywhere from two to ten years, depending on the amount needed and the amount of collateral.

Commercial lending companies also offer loans based on a business’s profitability, not its collateral. To be considered for one of these types of loans, a business owner must supply personal and business financial statements, tax returns, and other documentation. Creditors also take into account the value of the business’s assets. These loans range from two to ten years and can be completely or partially secured.

In order to take advantage of the best alternative financial plan available, business owners must take into account the amount of money needed, the terms of repayment, and the value of their assets.

An alternative financial source is an untraditional source for building capital for a business. Alternative financial sources are usually chosen when an individual has been denied by a bank’s strict requirements for start-up loans. Whether a business is in need of start-up capital or needs to increase its equity, there are many financial sources to choose from.

One source is a factor, a company that buys a business owner’s account receivables instead of lending against them. The finances of the customers are more important than the individual’s financial stability. Factors calculate how much to give in advanced funds, and then collect that amount from the customers, which earns the factors a three to six percent profit every month. Once the entire balance is paid off, the factor subtracts the amount advanced and pays it back to the individual.

Another alternative financial source are asset-based lenders. These are commercial and household lenders that loan advanced funds with traditional loan to value ratios. These companies usually require some type of collateral, such as accounts receivable, property, equipment, and vehicles.

One alternative financial source that is not recommended to start-up business owners is a credit card. Using a credit card to fund a business could lead quickly to out-of-control debt, especially due to high interest rates. Credit cards should only be used to ease the purchasing process, and they should be paid off as quickly as possible.