Using Your 401k/IRA to Purchase a Business or Commercial Property
By Rick Newman, Managing Partner of Commercial Capital Network

 

 

Very few investors/entrepreneurs realize that they have the ability to finance the purchase of a business with retirement funds. Most people believe that there are only two options available to them if they want or need to access capital from their plan/s, namely, either borrowing from the account or withdrawing some portion of the assets. Borrowing involves repaying the principal and interest and a withdrawal may be subject to a pre-distribution tax and penalties. There is another way… more…

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Credit Reports & Reporting Agencies
By Rick Newman, Managing Partner of Commercial Capital Network

 

Credit Scores are extremely important to a lender in evaluating the merits of a loan. Your credit or FICO scores have a direct impact on the rate, term and loan program for which you qualify. The Credit Tier Examples listed below are for information purposes only, as lender guidelines vary. more…

 

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Setting Up Your Books: An Overview of Inn Accounting and Bookkeeping
By Hugh A. Daniels, BS, MBA
While you are busy looking at properties, considering what decor you might want, what should the name be, should we incorporate, dreaming of that opening day, don’t forget the less glamorous, but equally important plan of how you will handle your accounting, plus who will provide your bookkeeping services. Accounting is the principals or practice of systematically recording, presenting and interpreting financial accounts, while Bookkeeping is the work of keeping a systematic record of business transactions. Now if you purchase an existing inn, this may be moot. However, their existing accounting program may not be the best and may need some sprucing up when you take over, so read on. more..

 

 

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Using 401(k) or IRA to Pay for Capital Improvements

 

By Rick Newman, Managing Partner of Commercial Capital Network, LLC

Few innkeepers realize that they have the ability to use retirement assets to pay for improvements to their property. Most innkeepers believe that there are only two options available to them if they want or need to access capital from their 401(k) or IRA. Borrowing from a retirement account, while still employed with the employer who established your 401(k), may solve a short term objective but it will require a return of the principal with interest. Early withdrawals on the other hand, are subject to pre-distribution taxes and penalties. The Employee Retirement Income Security Act (ERISA), which created the IRA in 1974, places surprisingly few restrictions on how retirement money can be invested. Except for life insurance or collectibles — such as artwork or coins — retirement funds can be placed in just about anything. Tens of thousands of investors have switched their retirement savings to self-directed accounts since the stock market correction of 2000 and 2001. By some estimates, 3% of the $3.5 trillion held in IRAs is now in alternative investments — and the number is growing. more…