Part 5: What are the Interest Rates?

What are the banks selling money for?



















We learned in the last 2 lessons to make sure your credit is as good as you can get it. If you have not done that yet or have not read the last Parts (4 and 5), read the following blog.


https://www.blogger.com/blogger.g?blogID=4738936030458353613#editor/target=post;postID=7867299750255712615;onPublishedMenu=allposts;onClosedMenu=allposts;postNum=3;src=link

It is time to shop for interest rates.

As I said before, my credit is in the 770s to 800 range, that is great credit. I should be able to get the best credit possible. Today as I am writing, that is 2.5% and I should be able to borrow $170,000 on a $225,000 home easily.

 What are Corporate Bonds selling money for?



What is the spread between the rates?

The bond or bonds that I expect to buy has a rate of 5%. That is what the bonds that I need sell for in interest. So we are talking about $100,000 bonds, giving  $5,000.

The Banks interest rate on my line of credit is 2.5%, getting a loan of $100,000, using my house as collateral, I pay $2,500 interest expense.

The difference between the money that I have to pay the banks  is $2,500.  $5,000 - $2,500 = $2,500 is the spread or the money that I am keeping.

Notice, that this is a "no money down" deal and I am walking away with $2,500 per year. In this strategy, I should make more than that. I also make money on the Maturity Price, say $1,000 minus the Discounted Purchase Price or $750. I put in my pocket $250.00 per bond. 

This is our objective in this process. We are going to take the banks money and make money to buy cars, homes, or bigger homes or better cars.

Now it is time to see the brokerage firm!

Apply for your brokerage account. You can find several online.   I suggest a firm where you can invest online. I use Zion's Direct Online Brokerage because of the low commissions on bonds. But I am sure that other brokerage firms have commissions just a low.  

But remember, they must have low commission rates and a large portfolio of bonds that includes BB+ through CCC bonds. Make sure that they have bonds which you can buy as low as 1 bond per trade. However, the volume of bonds sold per transaction maybe controlled by the seller.

http://www.forbes.com/2011/01/25/how-to-open-your-first-online-brokerage-account-personal-finance.html

If this is your first account, you may want to read this link above.

Remember that security of your brokerage account is important. Click on this link below to learn more about securing your account.

http://www.sec.gov/investor/pubs/onlinebrokerage.htm



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My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are: 

• Creating a Risk Policy
• Bull and Bear Markets
• What are Stocks and Bonds
• Corporate Bond Strategy
• Buying Corporate Bonds on Margin
• How to Place orders

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

Part 4: Shopping for Interest Rates

To review Part 3: First Step, Upgrading Your Credit, click on the link below.
http://brokermakesyoubroker.blogspot.com/2015/03/part-3-first-step-upgrading-your-credit.html


We are going to talk about "shopping for Interest rates." Some of you are thinking, "Darnell has really gone off the cliff. No one shops for interest rates." That is somewhat correct. Many people go to the bank or go to other lending institutions and take what they give you and the customer thinks that they are doing them a favor.

I know one person that just graduated from high school. This person got a flier from a loan shark company that wanted to give her a thousand dollar loan. She fell for the loan shark deal. She had a current model car and put it up for collateral for a $1,000 loan at 26% interest. The car was a graduation gift. The person had no job to pay back the money.

So what do you think the loan shark company was going to do? The loan sharks knew that this young teenager could not pay the loan and they were in a position to take and sell the $18,000 car getting the principle of the loan with back interest and penalties.   They were thinking about making money by selling this teenager's new car while the teenager thought that she was getting free money.

The story ends with someone repossessing the new car, the person's new credit report starting out bad. She had no car and the $1,000 was spent on nonsense. All the teenager got out of it was a short good time and bad credit for a long time. But she learned that people are "no damn good" and will take advantage of you.  

Credit runs every ones life but they do not learn this in school. Your public schools work for businesses in your community. They do not work for the community. People learn about finance from people like me!

I am not bragging. I am stating a fact.

If you want to see this video about shopping for interest rates, click on the link or the picture below.

       https://www.youtube.com/watch?v=6cfYLceJ1TE

Tina Mitchell on Money Chat: Moving Mortgage Rates and Best Way to Shop Interest Rates  

If you want to know more about what Tina Mitchell has to say, look her up on YouTube!

https://www.youtube.com/watch?v=nY2ah4fIUfE

 

Getting the Best Interest Rate on Your Mortgage Home Loan

Ah, Jason Wheeler is telling you one of my secrets. In 2006, I was coming out of a time when I had no job for 2 years. I had very little money. In 2013, I had purchased a $224,000 home that the previous buyer bought for $325,000. I bought it for $165,000. In 2015, I borrowed a large amount of money to create a new large bond portfolio.    

Here are some additional tips to remember;

1. Never go to the bank and ask for a loan. All they will do is tell you to fill out an application and they will get back to you.

2. Always contact a bank and asks for their loan qualification procedure. Some banks just want to find out how much you make so they can figure out if you can pay. While other banks want 2 years of Income Tax Returns, Insurances on the Property, 2 pay check stubs, as well as other documents.

3. Some banks will give you 85% of the equity in a property while other will only give 65% of the equity in your property.

4. Do not apply for a second mortgage with several banks. If you know the banks procedure for applying for a loan, the better your chances of getting a first or second mortgage. To many inquiries on your credit report will hurt your credit score. That threatens your ability to get the best interest rates.     

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Answer these questions:

1. I do not care what interest rate I am getting. I just want the cash! Is this a good idea? (Yes or No)

2. All you have to do is go to any bank and ask for a loan. They will do you a favor and give it to you. (True or False)

3. If you qualify, the bank will give you 100% of the equity from your home. (True or False)

4. If you apply for a mortgage with at least 35 banks, you will have a better chance of getting your money. (True or False)

5. Most high schools and colleges teach students about the cost of money. (True or False)


Here are the answers

1. No

2. False

3. False

4. False

5. False


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-
 

My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets
• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

 

  

Part 3: First Step, Upgrading Your Credit.

If you missed Part 2, click on the link below;

 

http://brokermakesyoubroker.blogspot.com/2015/03/part-2-creating-your-plan-outline.html

 

One of the most beautiful houses in Havre de Grace, MD.

The first objective that we have to think about at age 18 is maintaining good credit. Creditors know that but they must get to you so that they can get you hooked on spending before you figure out how the system works. Banks, credit card companies, and other loan institutions will do their best to get you, the customer to depend on their institutions. Most people can't resist taking  financial loans from these financial institutions.

You and your children are under financial attack.

They are financial "dope dealers" and you love to use the dope. You take the money or dope and you buy mostly junk with it. Some of you for some reason think you don't have to pay for it. Some think that it is an extension of your pay check and go out playing big spender, saying to your friends, "Look at me. I am rich. Drinks all around. Let's see what else I can buy to show my friends and get immediate satisfaction. "

Many claim that you need it because you have to buy food for you and your family. Some of you are as big as the "Good Year Blimp" so the food lie is a bad excuse.  But you claim that you have to buy more food now because without it, you will die. Yea, right! Some of you have to get a new car every two years and you have an excuse to do that. You can't live on your pay because you have more bills than you had before. Never do you say that you can cut down on spending to control your debt.  Now you are behind in paying your debt and your credit report is messed up. Some of you will say that you know your credit is messed up then laugh about it.

That means that no one trust you to get low credit loans. Some don't trust you with a loan at all. Some will give you a loan at 30% interest meaning that for every dollar they lend you, you may pay back $1.30 per year.

I have a credit score in all three credit agencies higher than 770. My oldest daughter has a credit score higher than 800. That is the one that has the house in part 2. I am not bragging. I am stating a fact for a reason. You will see the reason later in this series.

Take steps to fix your credit now!

But now to do what I am talking about, you must take some steps to improve your credit. No matter what people tell you, most if not all this money you will have to pay back to the creditor if you want to obtain a system of making money with "no money down."

You will also have to start paying your bills on time, not pay a week or two later. You are late paying when you are one day late. They mark you 30 days late when that happens.   

Once you get into the debt dead beat system, you will have problems because the credit system is design to protect businesses not consumers. We all have seen the people who act like this, so don't be shock because I have the "balls" to bring it up.

Now let's do something about your problem before I show you how to benefit from your credit!

http://www.thecreditsolutionprogram.com/ck-def-d-btn-v2-gpf?utm_source=google&utm_medium=ppc&utm_campaign=interests_text_desktop&creative=33789363318&device=c&devicemodel=&placement=www.beyond.com&keyword=&matchtype=&network=d&utm_content=text_man_cheats&utm_term=Vocational_and_Continuing_Education&gclid=CL7cuciZnsQCFSxp7Aodny8ADw

Getting Started Repairing you Credit Report.

The system that I am about to teach you will make most of you twice as wealthy than you are now but to do this, you must follow some rules.


Look at your Credit Report and see where you stand!

https://www.youtube.com/watch?v=HdMR2wYNmt4

40 Million Mistakes: Is your credit report accurate?  


www.Equifax.com
http://www.equifax.com/credit-report-history/
 Equifax Credit Information Services, Inc
P.O. Box 740256, Atlanta, Georgia 30374
Equifax Phone Numbers:
1-800-685-1111: Credit Report Inquiries
1-888-766-0008: Place Fraud Alert on Your Credit Report
1-866-493-9788: Credit Reports, Scores and Identity Theft Monitoring
1-888-202-4025: Business Solutions

www.Experian.com
http://www.experian.com/consumer.html
 P.O. Box 9554, Allen, Texas 75013
Experian Phone Numbers:
1-888-397-3742: Credit Report / Dispute Information / Fraud & Identity Theft
1-877-284-7942: Triple Advantage Credit Monitoring Membership
1-888-243-6951: Business Credit Services

www.TransUnion.com
http://www.transunion.com/personal-credit/credit-disputes/credit-reports-disclosures.page
 P.O. Box 6790, Fullerton, CA 92834
TransUnion Phone Numbers:
1-800-493-2392: Credit Monitoring Service Inquires
1-800-888-4213: Purchase a Credit Report or Get Free Annual Report
1-800-916-8800: Dispute Items on Credit Report and Status Checks
1-800-680-7289: Fraud Alerts and Identity Theft Information
1-866-922-2100: Business Services Assistance
Free Credit Score, Summary & Consultation – call (855) 617-1318


If you find an inaccuracy of an agency’s report then contact them using their telephone number, website or mailing address. Or if you feel the Credit Reporting Agency missed important contact information, please let them know. They will make the appropriate updates as soon as possible.

If the product you bought is paid for, send a letter with proof of payment or information saying that the bill is charged to the wrong person to all three Credit Bureaus. Send a copy to all three credit reporting agencies, disputing the charges against you in the letter. Make sure you dispute the claim also send a letter to your state attorney general.

Get as much negative information off the report as you can before going on to the next step. Keep in mind, banks and other agencies use this report, good or bad to give you the lowest cost loans possible.

  https://www.youtube.com/watch?v=I3noWTD0t20
Credit Repair Exposed - What the bureaus are hiding

https://www.youtube.com/watch?v=FHUPMHT0Vhw
10 Mistakes to avoid when fixing your credit.

https://www.youtube.com/watch?v=78YKbZXun_Y
Increase Your Credit Score 100 Points  

Questions about you credit

1. How many credit accounting agencies should you write to for disputing a payment?

2. The better your credit report, the less you will pay for credit? (True or False)

3. You should check your credit score at least every year. (True or False)

4. Nothing will happen to you whenever you do not pay your bills on time. (True or False)

5. As long as you pay your bills on time, you credit report will not be affected. (True or False)

Answers to these questions

1. 3

2. True

3.  True

4. False, you will not get the lowest cost of credit.

5. False -- If you pay on time, over time, your credit rating will go up.



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If you want a study Guide, get my book!

-
 

My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets

• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

Part 2: Creating Your Plan Outline

In preview from last week, read this blog first.

 

http://brokermakesyoubroker.blogspot.com/2015/03/part-1-learning-how-to-build-power.html

 

What does managing your credit means to you and why should you care? Your credit history is a record of how dependable you are and if you can keep your word.  Click on this link and you will see the difference when it comes to raising capital for your project.

 

Click here to hear about how to help solve your credit report problem.

 

http://www.thecreditsolutionprogram.com/ck-lesson-2?utm_source=GA&utm_medium=email&utm_campaign=CK+AR+v1&utm_content=D002-EML-CKV1&clickid=1425046_D002-EML-CKV1

 

 

Creating Your Plan!

This is the Tulloch's new home. However, it took a lot of planning before they were able to sell their old home, sign a contract for this home, get it financed, build and move in. We are going to use some of the same planning to start our financing to start building our portfolio that will be 100% financed by a very large home equity loan. You can use the same strategy to build a portfolio with an unsecured line of credit.

The Outline of Our Plan.

1. What are the Interest Rates that you are dealing with in your Plans?


2.  How much can you make on the spread between the rates?


3.  Are the rates fix or variable?


4.  If one or both of these rates move, how are you affected?


5.  Check the rates and conditions given by the banks?

6.  What discounted Bonds have a high enough Interest Rate to make money on the spread? 

7. Take out a loan with a revolving credit account.

8. Put the money into an online Brokerage Account.

9. Buy your Bonds. 

10. Track your Bonds and pay the interest from your credit account with your bond payments? 


Let's Review!


1. How many steps are in this plan?

2. Having a plan is better than not having a plan at all? (True or False)

3. How many types of institutions are we talking about in this plan?

4. Name the type of institutions?

5. This plan involves dealing with interest rate spreads? (True or False)


Answer to the question above.

1. 10 Steps

2. True

3. 2

4. Banks and Brokerage

5. True as well as the difference in Par and Discounted Bonds.

What do you do when your friends and family tell you that your plan is full of crap. Show them this video, click on the link or the picture.

https://www.youtube.com/watch?v=478qT9hMlEk

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-
 

My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

•  Creating a Risk Policy
• Bull and Bear Markets
• What are Stocks and Bonds
• Corporate Bond Strategy
• Buying Corporate Bonds on Margin
• How to Place orders

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

 

  Part 3 will be about upgrading your credit.

Part 1: Learning How to Build Power, Wealth, and Glory

Net Worth: $79.3 Billion

Info Earnings

Statistics

• Source of Wealth Microsoft
• Birth Place Seattle, Washington, U.S.
• Height 5' 10" (1.78 m)
• Marital Status Married (Melinda Gates)
• Full Name William Henry Gates III
• Nationality United States

• Date of Birth October 28, 1955
• Ethnicity English, German, Scots-Irish
• Occupation Chairman of Microsoft, Businessman, Investor
• Education Dropout, Harvard University
• Children 3 (Jennifer Katharine, Phoebe Adele, Rory John)

http://www.biography.com/people/bill-gates-9307520

 

This is what it takes to gain power, wealth, and glory. Just because your parents has money does not mean Gates will get money.

 

 

Many people in this country build Wealth, in turn create power and in turn get a lot of glory for doing it.  The richest 250 people in the world are listed below;

http://www.therichest.com/top-lists/top-250-richest-people-in-the-world/

These people did not get up one day and say I got money.  American business magnate, computer programmer, investor, philanthropist and author, Bill Gates, has a net worth of $79.3 billion as of March 2015 according to Forbes.  The software giant and current richest person in the world co-founded the largest computer software company in the world, Microsoft, with Paul Allen.

The company officially established on April 4, 1975, with Bill Gates as the CEO.  He stepped down as Microsoft’s CEO in 2008, to concentrate with his charity work through the Bill & Melinda Gates Foundation. He started in his parents garage working on his company. He had a plan and worked his plan. In the end, he had wealth. He used his wealth to gain enough power to changing the world's computer processing industry.  He is known in every country on Earth, giving him the glory of changing how the human race does business.  

Like Bill Gates, if you want power, wealth, and glory, you have to pay the price to get it. Like me, many of us do not want to pay the price of becoming billionaires.

 

Warren Buffett

Warren Edward Buffett is the most successful investor of the 20th century.  Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway, and consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and as the third wealthiest in 2011. In 2012 Time named Buffett one of the world's most influential people. Buffett is called the "Wizard of Omaha" or "Oracle of Omaha", or the "Sage of Omaha" and is noted for his adherence to value investing and for his personal frugality despite his immense wealth.

-

From these two examples, you can see three things in common;

-

1. They both worked to get to where they are. Bill Gates made it his way by developing hardware and Software that was unique to the industry. Buffett made his money by figuring out how the equities markets work; looking at  how companies react to one another in the industry.  

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2. They were committed to their work. They did not say that they will work on it 15 minutes every two weeks. They spent most of the day, every day on their plan until they perfected their product.
-

3. They did not let others tell them that they were crazy or allow themselves to be talked into spending time and money on other things. Thinking about a plan and working the plan is two different things. Many people start working on a plan just to get side tracked into doing something else.

-

This is why some people start a plan to make money, gain power, or become famous and make it getting some degree of these three objectives. Some will become somewhat wealthing, some very wealthy, yet a small percentage will become extremely wealthy, famous, and powerful.
-

Click on the link or on the picture.
-
 

 https://www.youtube.com/watch?v=E4Dh_71fM6U

The Black CEOs...........A View From The Top.wmv  

-

In the world that I travel in, I never became very wealthy or somewhat wealthy but I am surviving better than most people.
-

Note:  If you want to work to become wealthy and you have a spouse, you better have an agreement with the spouse before you start. Your  spouse can destroy your dreams because they can.  If you are not married or living with someone, don't. In fact, make your home a fortress and only let someone in when absolutely necessary or if the future spouse has the same objectives as you do.

 -

In this business, you never have friends. Treat everyone like they are an acquaintance.  Like on the TV show "The X-Files,"  Mulder, trust no one.    

-

In Part Two, we are going to talk about the education that you will need to get started.  No, I am not talking about hard to learn college education steps. I am talking about things that I have already talked about if you have been reading my financial blogs.   

-

 

*********************************************************************

-
 

My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets

• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

  

 

 

Who Said that Black Owned Stocks Do not trade on Exchanges?

Potbelly Corporation

Sells on NASDAQ: PBPB

 

"The single most important factor in a company's success is the team that's leading the company.", Aylwin B. Lewis, CEO

 

Potbelly Sandwich Works Review from employees on the CEO;

 

                                                   

Aylwin B. Lewis, CEO

47% Approve

Based on 94 Ratings

 

Potbelly Corporation through its wholly-owned subsidiary Potbelly Sandwich Works LLC operates Potbelly Sandwich Works sandwich shops in 21 states and the District of Columbia.

Here is what analyst are saying about Aylwin B. Lewis and Potbelly.

http://www.thestreet.com/story/13061938/1/potbelly-pbpb-stock-drops-today-following-cfo-resignation.html?puc=TSMKTWATCH&cm_ven=TSMKTWATCH

 

Will Potbelly (PBPB) Crush Estimates at Its Next Earnings Report?

http://www.zacks.com/stock/news/166292/will-potbelly-pbpb-crush-estimates-at-its-next-earnings-report

$12.99 of stock

BATS BZX Real Time Price as of March 4, 2015, 3:59 p.m.

Extended Hours: $13.30 $0.31 (2.39%)

as of Mar 5, 2015 8:43 AM

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size=2 width="100%" align=center>

Key Data Points

Primary metrics and data points about Potbelly Corporation as of 9:28 AM on 3/5/2015.

Current Price:	$12.99
Prev Close:	$12.99
Open:	$13.06
Bid:	$12.85
Ask:	$13.65
Day's Range:	$12.90 - $13.18
52wk Range:	$10.91 - $21.60

 

Volume:	360,792
Avg Vol	502,500
Market Cap:	$376M
P/E (ttm):	93.50
EPS (ttm):	$0.14
Div & Yield:	$0.00 (0.0%)

 
Darnell L Williams does not own this stock or work for this company!