Foreclosure - How Long Can I Remain In The Home For After The Home Has Been Foreclosed On?

In May of 2007 over 176,000 foreclosures were filed throughout the country. Yes, that is in one month. The other months this year have produced similar overall numbers as well. The number of foreclosures is definitely an immediate concern and it really is too bad that so many people are dealing with this devastating experience. First off, let me say that I am not promoting allowing your home to go into foreclosure. However, if you have exhausted all of your options and you simply have no way to avoid having your home foreclosed upon, this article will provide some information that will prove useful.

One of the most common questions asked by consumers who are going through a foreclosure is, "how long can I stay in my home after my home is foreclosed on before I have to leave?" Foreclosure can be an embarrassing enough event to go through let alone having to worry about coming home one day and either finding your home locked up by the county sheriff or your belongings thrown out of the home on the lawn. Nobody wants to take the chance of that happening, especially if you live in a neighborhood with a lot of friends that are unaware of your financial situation.

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So how long can you remain in your home after it has been foreclosed upon or do you need to move from the property as soon as the foreclosure process is started? A homeowner can remain in the home all the way up through the time of the sheriff's sale of the property. You do not have to vacate the property immediately after finding out your home is being foreclosed on. The sheriff's department will not come over and board up your home, change the locks or throw your personal belongings out on the front lawn while you are at work. You are still the homeowner of record until the home has been bought via sheriff sale. Therefore, you still have a right to remain in that home until the home is transferred to someone else through the sheriff sale. Many times your lender will buy the home back through sheriff sale and this will put the home into their name and remove you as the owner of the home. You can wait until the sheriff comes to the home at this point to evict you, however, you may want to simply consider leaving as soon as the home has sold through the sheriff sale.

Foreclosure - How Long Can I Remain In The Home For After The Home Has Been Foreclosed On?

Therefore, even after your home is foreclosed upon you may still remain in the home because you are still the owner of the home. Most foreclosure processes can take anywhere from as little as 2 months up to as long as a year. Although in rare occasions the process has even taken up to 2 years. You will be able to remain in the home until you are evicted and it is highly recommended that you begin saving as much money as possible to prepare for life after foreclosure. Expect to pay larger deposits up front for things such as rentals, utilities, and phone and cable services. While foreclosures are not the most pleasant of life's experiences, you can still make the best of a bad situation by remaining in the home and saving up as much money as you can.

Foreclosure - How Long Can I Remain In The Home For After The Home Has Been Foreclosed On?

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A Closer Look at OVI in Ohio

The more commonly know offense of driving under the influence or DUI is known as Operating a Vehicle Under the Influence or OVI in the state of Ohio. According to Ohio Revised Code § 4511.19, operating a vehicle under the influence in Ohio means that an individual was driving or in actual physical possession of a vehicle, while they were at or above the legal limit in Ohio for blood alcohol concentration (BAC).

Many individuals might not know that there are essential elements that must be shown and proved in order for a person to be convicted of an OVI in Ohio.

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One important element that must be determined is if the individual was driving a vehicle while intoxicated or that they were in physical control of a vehicle while intoxicated.

A Closer Look at OVI in Ohio

Under Ohio law, there are factors that can determine if a person had physical control of a vehicle:

1) The person was in the driver's seat
2) The person was in possession of the ignition key and
3) The person was either under the influence of alcohol or they tested over the legal limit.

Another important factor used to determine if an individual is guilty of an OVI offense is if they had a blood alcohol concentration that was above the legal limit. The legal limit in Ohio is.08 percent, however an individual can still be charged with OVI in Ohio even if they are not impaired or above the legal limit.

The penalty for a first OVI offense in Ohio is usually a misdemeanor of a first degree, which can be punishable by jail time, a fine, driver's license suspension, a Driver's Intervention Program or an ignition interlock device.

What is a Physical Control Offense?

Under Ohio Revised Code § 4511.194, an individual can be charged with Physical Control. This offense is similar to an OVI charge in Ohio in that both offenses involve an individual who is in a vehicle while they are under the influence of alcohol or a controlled substance. A good example to illustrate this statute is if an individual chooses to "sleep it off" in their car after consuming alcohol or drugs instead of driving.

According to this statute, a person only has to have the keys on them or within their reach to be charged with the offense of physical control. Physical control is considered a lesser offense than an OVI even though they are both first degree misdemeanor crimes.

If you find yourself facing an OVI charge in Ohio you should contact an experienced criminal defense attorney who is knowledgeable in Ohio law. Your criminal defense attorney will make every effort to achieve the best possible outcome in your case. They will also guide you through each court appearance from the first to the last and make sure that your needs are always put first.

A Closer Look at OVI in Ohio

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DUI Records and Pre-Employment Background Checks

If you've recently been arrested and/or convicted of a DUI or drunk driving offense there are many things to consider before actually disclosing your DUI on a job application. First, if you are eligible to clear the DUI record (immediately or in the near future) it might make more sense to explore those avenues before you apply for a job that you really want.

9 times out of 10 most every employer will do a pre-employment background check on you and will uncover the DUI offense which most likely will cause them not to hire you. Most pre-employment background checks are conducted by 3rd party HR companies that are contracted by your potential employer specifically to do background checks. A lot of the big companies use the same outsourced HR company to do their checks so if you get flagged within their system that could in effect ruin your chances of ever getting hired from any company who uses them to perform pre-employment background checks.

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So it's definitely something you want to think about and clear up BEFORE you apply and agree to a background check.

DUI Records and Pre-Employment Background Checks

But if you take the steps to clear or expunge the DUI record prior to applying for the job there is a good chance that they will never find out about it. So, by spending a little bit of time and educating yourself on what you need to do to take care of your record could pay off big time.
Not every state allows the clearing or expunging of DUI records but even in those states that won't clear your record there are remedies to minimize the damage by keeping it from showing up on background checks. You can get more information at www.duiprocess.com

DUI Records and Pre-Employment Background Checks

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The Good Credit Foreclosure Crisis

Two or three years ago, all anyone could talk about was the housing market. It was booming. Builders were building, buyers were buying, and lenders were lending. Everybody was making money hand over fist, and everybody loved it.

It didn't last. The market started to lag in 2006 and has only gotten worse in the first half of 2007. Some experts maintain that the market is just returning to normal after a strong surge and that there's nothing to worry about. Others, believing that the housing market is an indicator of the future of the rest of the market, are beginning to utter the unutterable word that starts with r: recession.

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One thing is clear. This is not just a slight dip in the housing market. When slight dips occur, contractors are the first to be hurt, then the lenders, and buyers sometimes suffer a little bit. This time, current owners are getting into the mix. Foreclosures are at an all-time high, and it seems to be affecting everyone in the market. Whether you're an owner with bad credit, an investor, or an owner with good credit, the national figures have you at risk of foreclosure. Nationally, there is currently one foreclosure for every 134 households, which represents an increase of over 55% from the same time last year.

The Good Credit Foreclosure Crisis

It isn't surprising or particularly unnerving that borrowers with bad credit are late on their payments or have already gone to foreclosure. They are, of course, the first borrowers who can be expected to have difficulties. Bad credit borrowers are the perfect prey for predatory lenders using aggressive lending tactics. They hooked borrowers looking to get in on the housing boom a few years ago when those same borrowers never had a chance at a mortgage earlier in their lives. During the housing boom they were able to borrow at subprime rates and the lenders got rich.

Although subprime rates and strong-arm tactics have been around for decades, the extreme slowdown in the housing market seems to have increasingly magnified the problem of late. Legislators are taking action to cut down on the practice. Congresswoman Deborah Price (R-Columbus, Ohio) has cosponsored a bill to help protect homebuyers from fraud in the mortgage market. She says that "Ohio's foreclosure rate is now three times the national average, one in six subprime loans is delinquent, and the problem is expected to worsen." Ohio is definitely at the center of the housing crisis, but states from coast to coast and in all different types of economies are suffering as well.

Real estate investors have greatly contributed to the current situation. Although this is to be expected during difficulties in housing markets, hundreds of thousands of homes and condos now stand empty because these investors got caught and were unable to flip their newly acquired properties. These investors bought property during the tail end of the housing boom at prices and rates that were much higher than in recent past. As prices eased, and in some areas began to fall, these investors are now forced to sell property for less than they bought it, causing them to lose money and some are defaulting on their mortgage payments because they can no longer afford to make them.

What really has a lot of industry experts nervous is the number of home owners with good credit who are foreclosing on their properties. At the epicenter of the housing industry's downturn is Countrywide Financial, one of the largest lenders in the country, who on July 24th, 2007, issued some of the worst news for the housing market in recent memory. While they confirmed the bad news that subprime borrowers were delinquent at record rates, they also surprised many in the financial sector when they announced that 5.4% of their loans to borrowers with good credit were past due. Countrywide was forced to reduce the value of their loans and assets by almost billion. Their stock plummeted, dropping almost 10% in a single day.

Countrywide's announcement has a lot of people scrambling. The words of Chairman and CEO Angelo Mozillo may be the most troubling. On the day of the announcement he said that home sale prices were dropping "almost like never before, with the exception of the Great Depression." Investors shook their heads as they knew any mention of the Great Depression from a high-ranking CEO of a financial company was going to send the Dow plummeting by triple digits.

While many in the market are scratching their heads and asking why borrowers with good credit are defaulting on their payments, Ron Borg, CEO of Mortgage123.com says the reasons are simple. "There are 3 simple reasons for the tremendous increase in defaults on "good credit" mortgages", says Mr. Borg. "One reason has been the popularity of the Pay Option ARM. While the loan itself is not necessarily a bad loan, three particular features of the loan greatly contribute to defaults on this type of loan".

Mr. Borg continues, "See, the borrower's interest rate adjusts monthly and the rate is determined by adding a "margin" to a specified "index". The "index" is typically a short term bond such as the rate on the U.S. 1 year treasury-bill or other index such as the London inter-bank offered rate, which also based on short term interest rates. Over the past year and a half, short term interest rates have risen approximately 4%! That's a tremendous increase for most people.

Mr. Borg says that the second factor affecting Option ARM defaults is that mortgage lenders and brokers compensation is directly tied to the margin. The margin is the amount of interest that is added to the index which in turn, determines the borrower's actual interest rate. "Most borrowers have absolutely no idea that margins are negotiable" Mr. Borg states. He says that "Margins can vary from 2 ½% to as high as 6 ½%. Most indexes today hover around 5%, so you can easily see why so many borrowers are hurting."

The third feature of the loan is that it is improperly marketed, says Ron Borg. "Companies advertise that it comes with a very low rate, under 2%. This is completely misleading consumers", he says. "The fact is, that "interest rate" lasts for one whole month. After that it becomes nothing more than a calculation to figure a borrower's minimum monthly payment. Unfortunately, that minimum monthly payment isn't enough to even pay the monthly interest on the loan and negative amortization occurs." he says. That is when the balance of the loan actually goes up instead of down. "While this may be a valid short term strategy, thousands of borrowers got sucked in because of that low payment without regard to the consequences. Now they're hurting.

Another part of the foreclosure story is the proliferation of mortgage lead companies.. These companies created websites, spent millions of dollars to drive Internet users to their sites, promised better rates because lenders would compete for their business. "Consumers really don't understand how these companies operate", says Mr. Borg. He says that lenders pay huge advertising dollars to be part of these website companies.

"They receive so many leads from these lead companies, and they pay so much for those leads, that they cannot afford to hire experienced mortgage loan officers. Most hire sales or customer reps rather than actual loan officers. Some companies even outsource these jobs overseas!" he said. These reps are there to sell mortgages, not to provide any level of advice or consultation. Mr. Borg continued. They just want to sell loans. They don't worry about building a client base that can refer more business to them because each and every day they get new batch of leads, provided by the lead generating website company. Experienced loan officers work much differently - they provide consultation and a true desire to provide the best financing package for their borrower's particular needs."

While a large portion of borrowers that apply through lead generation websites have sub-prime credit, many are not borrowing on subprime loans and for the most part they don't have other properties to pay off or lose money on. Common sense would dictate that an individual with good credit would know to stay away from unscrupulous lenders. However, many borrowers with good credit have been lured by the promises of super low interest rates and the competitive environment offered by lead generators when they were looking for a mortgage during the housing boom of the past few years.

The nation had never before seen such a great housing boom in the era of the internet. The internet did not create any new lenders, but it did create a plethora of new lead generators. These are basically websites that get paid by lenders to find possible borrowers and direct them to the lenders. However, the tactics they use and the way these lead generators market themselves may have had an adverse effect even on borrowers with good credit, contributing to the current poor housing market.

LendingTree.com is a perfect example. Potential borrowers go to their website, provide their personal financial information and then are contacted by a variety of lenders. Their slogan is that "When Banks Compete, You Win." One glaring problem with this business model is that your online application is forwarded to multiple lenders within their network and then each lender makes a credit inquiry on the borrowers", says Mr. Borg.

The problem is that multiple credit inquiries in a short period of time hurt the borrower's credit score. This can sometimes result in less optimal mortgage rates, especially if a quick decision is not made. Furthermore, such sites can be very secretive about what they're doing. They claim that multiple credit inquiries is not a problem and simply push the borrower to make a decision, good or bad; after all, they get paid when customers choose any lender from their site.

Recently, some companies are looking to provide borrowers with similar services as these lead generators but without the risk. Mortgage123.com is a good example. They offer multiple lender quotes but without the multiple credit inquiries. Instead of submitting credit inquiries to the lenders, they pull the borrower's credit score themselves and manually calculate each rate quote. The borrower gets more accurate quotes and their credit only gets accessed once.

The third reason for the rising foreclosure rate, of course, is the market itself. Mr. Borg had this to say - "While all the politicians are now grandstanding about predatory lending and looking to regulate the problem away, the fact is, if real estate continued to appreciate, most of the problems of today simply wouldn't exist. But when you combine increasing mortgage balances with declining home values, well, let just say, you're going to see some problems."

The Good Credit Foreclosure Crisis

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The Eviction Process

Obviously, evicting a tenant is not a thrilling part of real estate investing for the tenant or the landlord. What follows is a description of the eviction process itself (especially as it pertains to what can be expected in Ohio), peppered with some of my personal comments with regards to how I typically handle evictions.

Generally, if I've not received rent monies from a tenant by the 8th or 9th of the month, I call the tenant. My leases stipulate that the tenant has a grace period until the 5th of the month to mail rent monies without being charged any type of late fee. As long as the envelope is postmarked by the 5th - no late fee. Allowing 3 or 4 days (from the 5th) for a tenant's payment to arrive is pretty liberal and plenty of time to allow for the monies to be received from cross-town mail.

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If upon a call to the tenant I believe we're going to have problems, I immediately deliver a 3-day notice to the property. A copy of the notice is made before delivering. The 3-day notice is posted (taped) on the front door of the property if the tenant or other occupant is not there when it's delivered. Any tenant that reaches this point (the starting of the eviction process), is advised that the 3-day notice is simply being posted as a way to protect my interests in the event the tenant doesn't make good on the outstanding monies due.

The Eviction Process

Attaching a 3-day notice to the tenant's door does not negatively affect the tenant's public record. It's not until the 3-day is formally filed that it becomes public record. The landlord cannot file for eviction until 3 business days have passed from the point the 3 day-notice was placed on the property. Once the 3 business days are up, the landlord can begin the formal eviction process. How does this start? You will take your paperwork, including a copy of the 3-day notice, and file to have an eviction hearing. I use an attorney to process all of my evictions. Specifically, one specializing in handling evictions. I personally prefer using an attorney that will try to remedy the situation with the tenant before the case is even heard. You don't have to use an attorney - you can do alot of this yourself and save a few bucks, but I recommend you use one. If you've never been to your local court system to witness eviction hearings, I highly recommend it. You'll quickly get a flavor of what takes place during these hearings and will know what to expect ahead of time should you ever get to the point of processing an eviction on one of your own properties.

You can expect it take approximately two weeks before your hearing is scheduled. It's important to note that I always keep the communication line open with the tenant through this whole process. I think this is extremely important. I want the tenant to know that I don't like going down this path just as much as the tenant doesn't. It's not my goal just to boot a tenant out of the property. In fact, I try very hard to work out payment arrangements or even payment assistance resources with the tenant in an effort to get him or her back up on their feet. Yes it may take a little hand-holding and some of your extra time, but I'd say eight out of ten tenants going through this extra hand-holding will appreciate your trying to help and will ultimately clear their overdue balances with you. You walk a very fine line here with the tenant in that he or she may also be taking advantage of you. It can be a tough call. At times it can simply come down to relying on your gut feeling with the situation.

If judgement is taken (in your favor) at the hearing, the judge will give you permission to "red tag" the door. A red tag is just that - it's bright red and has marked on it the date that possessions will be moved out of the property if the tenant has not vacated. The tenant has five days from tagging to get out of the property. It will usually take 2-3 business days after the court hearing for this tag to get placed on the front door of your property. Again, I keep the tenant abreast of my intentions during this process. You as the landlord call the shots with regards to whether or not any possible set-out occurs. I mention to the tenant that I still do not desire to set property out at the curb, and if payment arrangements can be made, the set-out can be averted. You will again have to make the call here. Do you want to accept only partial payment for what is owed and try to arrange a plan for payment on the extra monies? Or do you feel the tenant is just not going to make it, and in this instance, follow through with the eviction process?

The final step is the dreaded set-out. It's extremely rare that I ever have to get to this point. If it comes this far, frankly the tenant deserves it. I've given them every opportunity within reason to try and remedy the situation or move out on their own accord. If the tenant has not moved out by the date stipulated on the red tag, you as the landlord have the right to order a set-out with the bailiff. Again, an attorney that specializes in evictions really helps here. In Columbus, Ohio, you only have a two hour window Monday-Friday to request and schedule a set-out. Additionally, the set-out must be scheduled within ten days following the red tag, or you have to order a supplemental red tag (more money).

When the set-out is requested (it's generally a day and time agreed upon by you and the bailiff), you will be expected to have at least four people dedicated to setting furniture and belongings out of the house. You will also be required to have trash bags and boxes to pack items before removing them from the house. Good maintenance workers will be handy to have when you get to this point.

As you can see, evictions can be a rather drawn-out process that generally take a good three to four weeks to run their route. This is why I believe it's very crucial to always maintain good communication lines with your tenant and try and be as professional as possible in handling the situation. It will be frustrating!...but try and keep an open mind into ways you can help your tenant get through this. A good positive attitude can go a long way to making this process less stressful to both you and the tenant!

The Eviction Process

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Workers' Compensation - Understanding The Terminology

Understanding Temporary Total Disability, (And Arcane Concepts Like "Full Weekly Wage," "Average Weekly Wage," "Statewide Average Weekly Wage" And "Maximum Medical Improvement").

Note: This article is about Ohio law. Other states may differ. These general concepts may not apply to your individual situation.

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Temporary Total Disability (TTD)

Workers' Compensation - Understanding The Terminology

Temporary Total Disability (TTD) is paid as compensation for lost earnings during the period of time the work injury prevents the claimant from returning to the position of employment the claimant held at the time of injury. TTD is paid for the entire period off work if the claimant misses 15 or more days of work; for days 8 through 14 if there are 15 or less days of lost time; and no TTD payment if the claimant misses 7 days or less.

For the first 12 weeks of lost time, TTD is paid at the rate of 72% of the full weekly wage (FWW), and for every week of benefits after the first 12 weeks, 2/3 of the average weekly wage (AWW). If the claimant's FWW and AWW exceed the statewide average weekly wage (SAWW) TTD payments are limited to the SAWW. As a minimum TTD benefit, if the FWW and AWW are less than 1/3 of the SAWW, the claimant receives the full FWW and/or full AWW (unreduced by 72% and 2/3 respectively). (Please see below for definitions of FWW, AWW and SAWW).

TTD generally terminates when the claimant returns to work, is offered a job within the physical restrictions or when the claimant reaches maximum medical improvement (MMI). To receive TTD, the claimants must be under the care of a physician who certifies (most often using Bureau form C-84) that the claimant cannot return to employment due to the allowed condition(s) in the claim, and the claimant must not be working.

Maximum Medical Improvement (MMI) is defined by the Ohio Administrative Code as "a treatment plateau (static or well stabilized) at which no fundamental functional or physiological change can be expected within reasonable medical probability in spite of continuing medical or rehabilitative procedures." Voluntary abandonment of the workforce or retirement, dismissal for violation of a work rule and incarceration, with some limitations, are employer defenses to payment of TTD.

Procedure

When an award of benefits is payable, the Bureau will calculate the average weekly wage (AWW) and full weekly wage (FWW) using wage documentation that has been added to the claim file by the employer/and/or claimant. Usually the employer provides wage information (W2 forms, payroll records, check stubs) after the initial claim application. Employers or claimants can submit (with payroll records, check stubs W2 forms or other federal earnings reports) on Bureau form C-94-A.

Statewide Average Weekly Wage (SAWW)

The statewide average weekly wage (SAWW) for the year in which the injury occurred is the maximum rate payable for all forms of workers' compensation. The Bureau sets the rate based on the average weekly earnings of Ohio employees who are covered by unemployment compensation.

Full Weekly Wage (FWW)

The full weekly wage (FWW) is the average of the claimant's earnings (including overtime) during the six week period immediately preceding the injury, or the actual earnings (excluding overtime) for the last seven days prior to the date of injury. The claimant can choose the calculation that results in the higher FWW. The FWW is set at the claimant's hourly rate times the number of hours the claimant was scheduled to work during the week of injury if the claimant worked less than seven days prior to the date of injury.

Average Weekly Wage (AWW)

The average weekly wage (AWW) is calculated by dividing the claimant's total gross earnings from all employers during the year prior to injury by 52 weeks. Earnings may include in kind payments that the claimant would normally treat as income but not in kind payments that are merely reimbursement for advanced expenses. Periods of involuntary unemployment may be excluded from the calculation.

The information on this article is for general reference only. To apply the information to an individual situation, you must consult a qualified professional. Unless you contract for specific services from us, there is no attorney-client relationship established.

Workers' Compensation - Understanding The Terminology

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What You Should Know About Court Reporter Services

A large amount of people think that court reporting is a boring job, but it can be such an exhilarating one. The reason it has a reputation for being so dull is because, a court reporter must turn out page after page of legal jargon, but what they don't consider is that the reporter is a first hand witness to some exciting and dramatic court room drama.

What Qualifications Do You Need To Be Able Offer A Court Reporting Service?

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In order to be a certified reporter, an individual has to pass the State Licensure Exams which is executed by a panel of court reporting specialists. He or she may be a member of either the National Verbatim Reporters Association (NVRA) or the National Court Reporters Association (NCRA). To become eligible to be a member of the NVRA you will have to be able to type 250 words per minute, and to qualify as a member for the NCRA the minimum requirement is 225 words a minute.

What You Should Know About Court Reporter Services

For additional improving of abilities in the reporting field, they are obligated to undergo quite a few tests like writing, transcriptions examinations, and speed tests categories like Certified Verbatim Reporter (CVR) or Real Time Verbatim Reporter (RVR).

Court reporting services

Aside from documenting and transcribing the depositions and litigation in court, a court transcriptionist ought to offer various services:

A good quality transcript or report of all the occurrences that happened in the courtroom. The stenographer should preferably write in flawless grammar with the proper spelling and punctuations. For that reason, the court reporter should have an outstanding knowledge of the spoken and written language.

A quality litigation reporter would certainly also know the fundamental facts of the case they are reporting on. This is so that they can completely understand the proceedings amongst the lawyers, Judge, Defendant, Plaintiff and the Jury, and what charges or complaint is against the accused. This can also help the reporter to keep themselves updated on all of the jargon, and they might be able to predict what could be said in future proceedings.

Through voice, electronic or stenotype reporting, the reporter may render service by transcribing every one of these into a written format that is legally recognized in court. They will have to create a transcript that can be read.

The reporting services he supplies will need to be speedy and effective, so the reporter should be be trained well enough to handle stress and pressure and sustain grace under pressure.

Court reporting services don't only involve court proceedings but also outside services. A person that is trained to do court reporting may also be able to work as a broadcast captioner or a webcaster. An individual that can transcribe live TV for disabled people can earn an excellent salary.

They could also work from a home office as a freelance reporter, or as a independent reporter. If someone decides to work in this way, they are able to have a flexible schedule, which can be much less demanding and stressful.

If you love and have a good understanding of the written and spoken English language, you will make an excellent court reporter. It is an exhilarating and challenging job. Court reporting also requires you to have remarkable documenting skills, and the ability to make good decisions. The lawyer requires all the support he can get from a certified court reporter or an official court reporter to win his case. In conclusion, the role of a court reporter is a extremely important when it comes to providing documentation for proceedings, dispositions and court litigation.

What You Should Know About Court Reporter Services

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Protecting A Logo: One Key to Branding Success

Logos play an important part in marketing and brand recognition. Take, for example, Nike's "Swoosh," Mercedes-Benz's "Star," or Target's "Bullseye." These logos have become immediately recognizable as identifying the source of particular goods and services. Typically, companies will invest a lot of capital developing a flashy or eye-catching logo in order to build strong brand recognition. However, in building this brand recognition, companies, especially small businesses, may sometimes overlook the importance of protecting their logos through the trademark registration process.

Many trademark applications are filed using simple word marks in a standard character drawing. The standard character form is appropriate when the applicant wishes to register a mark that consists only of one or more words, letters, numbers, common forms of punctuation, or combinations of any of these elements, without any particular stylization. On the other hand, a trademark application for a logo cannot be filed using a standard character drawing. Instead, a special form drawing must be used. Special form drawings are required if the mark includes a two or three dimensional design, color, or words, letters, or numbers in a stylized form. Despite the fact that different drawing forms are required, a logo may be registered as a trademark just as easily as a word mark.

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Another difference between logos and word marks becomes readily apparent when conducting a trademark search. Word marks may be easily searched by keyword to locate marks that are the same as or similar to the mark being searched. But how does one search for a logo, especially if the logo does not contain words? The answer lies in the design codes.

Protecting A Logo: One Key to Branding Success

The United States Patent & Trademark Office (USPTO) maintains a searchable design mark database. Trademarks that only contain standard characters, type print, block or stylized lettering are not coded because they do not include design elements. However, if a trademark registration or application does contain a design element, then the mark gets coded based upon the particular designs featured in the mark.

The design search code is a numerical classification index that codifies design elements into categories, divisions, and sections. There are currently twenty-nine categories ranging from celestial bodies, natural phenomena, and geographical maps (category 1) to arms, ammunition, and armor (category 24). Each design element in a specific category is given a six-digit number, with the first two numbers indicating the category, the second group of two-digit numbers representing the division, and the last group of two-digit numbers indicating the section. For example, the Mercedes-Benz "Star" is coded as 01.01.01, which represents celestial bodies, natural phenomena, and geographical maps (category 01); stars, comets (division 01); and stars with three points (section 01).

Using the design codes, a search can be performed to review all designs with a particular design element, or all designs which incorporate a combination of design elements. For example, if you wanted to review all the designs featuring a cat wearing a top hat, you would enter the design codes for domestic cats (03.01.04) and top hats (09.05.02).

Although the methods of searching for a word mark are different from that of a logo, the examination process for each type of mark is very much the same. One of the main issues considered by the examining attorney is whether an applicant's mark would create a likelihood of confusion with any registered or pending marks. The examining attorney searches registered trademarks and pending trademark applications for marks substantially similar to the applicant's mark as to be likely to cause confusion as to the source of the goods or services. If the examining attorney discovers any such confusingly similar marks, applicant's mark will be refused registration.

Similarity between word marks is found by comparing the appearance, sound, and meaning of the applicant's mark and the cited marks. A finding of similarity as to any one of the above factors may be sufficient to support a refusal based upon a likelihood of confusion. With logos, the question of the similarity of the marks is determined primarily on the basis of their visual similarity. However, if the logo contains words, greater weight is often given to the word portion of the mark. On the other hand, if the words are merely descriptive or generic, the design portion of the mark would be given greater weight. That being said, the mark, whether a word mark, logo, or combination logo-word mark, must be viewed as a whole, and each case turns on its own facts.

A memorable or flashy logo can go a long way in helping build strong brand recognition. New businesses or existing businesses that use logos to mark their goods or services should take the required steps to protect such valuable assets. Having a trademark search performed can help determine whether the logo is available for use and registration. It is advisable to conduct a search as early as possible to prevent spending thousands of dollars developing and promoting the logo only to find that a confusingly similar logo already exists. If the search results are favorable, the next step towards gaining trademark protection for your logo is filing a trademark application with the USPTO. If your logo ultimately registers, you will receive all the rights and benefits associated with federal trademark registration.

© 2006, Gallagher & Dawsey Co., LPA
December 2006

DISCLAIMER

We hope you understand that a brief article cannot provide accurate legal advice. Accordingly, nothing in the above is intended as specific legal advice to any person. Such legal advice can only be given by a qualified practitioner after a careful review of all the individual facts. We urge you to consult us, or another licensed professional, before you proceed.

Protecting A Logo: One Key to Branding Success

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Violation Nation - What We Are Hearing About RESPA Crime Today

"Have you heard of the term, 'organized crime?" one reader asked, in commenting on the state of the industry today. "They are bad news bears and are eliminating legitimate unbiased businesses," another reader said, remarking on the proliferation of affiliated business arrangements. It's time once again to take the pulse of the industry for our ongoing "What we're hearing" report. In a recent poll on RESPAnews, we asked, "How's the market where you are in terms of the number of kickbacks and RESPA violations you're seeing?"

Survey says...

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"Have you heard of the term, 'organized crime?'" one reader asked, in commenting on the state of the industry today.

Violation Nation - What We Are Hearing About RESPA Crime Today

"They are bad news bears and are eliminating legitimate unbiased businesses," another reader said, remarking on the proliferation of affiliated business arrangements.

It's time once again to take the pulse of the industry for our ongoing "What we're hearing" report.

In a recent poll on RESPAnews.com, we asked, "How's the market where you are in terms of the number of kickbacks and RESPA violations you're seeing?"

Survey says...

Nearly 100 readers responded, with a full 60 percent saying, "They're increasing. Corruption is rampant here."

Just 12 percent said, "They're decreasing. People are paying attention to HUD's enforcement warnings," while 28 percent said, "They're staying the same. Some people still need extra incentives to do business and some don't."

One respondent said, "I am sick and tired of the regulators doing nothing about the blatant violations. I have been reporting violations to the DOC for years. They do absolutely nothing, and this is hurting my business."

Another said, "It's been around for awhile, but it seems to be getting worse."

Yet another stated, "Brokers continue to pay Realtors under the table or offer to pay them for each referral. Out-of-sight, out-of-mind theory: It's just you and I, and no one else knows. Meanwhile, legitimate brokers are being shunned. The bigger problem lies with the lead generators falsely advertising that the borrower wins when they apply and receive calls from four lenders. The problem is that those lenders have paid and thereby are not obligated to be competitive. Borrowers think they are applying to most online companies who are nothing more than lead generators who are selling their information over and over again."

And another added, "Let's all play by the same rules and make it a level playing field for the clients and the brokers to do business on a fair and equitable basis with straightforward truth and honesty."

State of the nation

Here's what we're hearing anecdotally from readers across the nation and across industry lines.

Disclaimer: We cannot confirm that any of these alleged practices are occurring, nor can we claim for certain that they violate RESPA. All reports were received from members of the industry in each respective state.

Arizona

"I encounter the bait-and-switch, kickbacks, etc. constantly in Yuma and, most importantly, in the Phoenix area with Phoenix lenders (primarily brokers). I chalk this unfortunate situation up to nothing more than greed."

California

"I have been a sales rep for the last 10 years in two different counties in California. The counties I work in are not as competitive as the larger counties in Southern California. I have seen many different title companies taking fines from the Dept. of Insurance and I have never seen a Realtor who is usually asking for the perks get in any type of trouble whatsoever. Why are the violations so one-sided? If the perks were never asked for, then it would never be a problem."

"What about all of the illegal kickbacks that are being paid to the brokers and agents for the use of the affiliated escrow and title companies? This problem is rampant, it must be stopped immediately. Consumers are being ripped off by having to pay higher prices to the affiliated companies so they can pay the illegal kickbacks to the brokers and agents. This is well known throughout the industry, but the regulators don't do anything about it. I am sick and tired of having to compete against this illegal activity."

Illinois

"Underwriter/lawyer/agent subterfuge only exists in Northern Illinois. Tell HUD to clean it up. The Illinois DFI certainly doesn't want to ruffle any feathers."

Indiana

"Brokerages are pushing their independent subcontractors to use their title companies, mortgage loan company and allow the sales agents to pick the one or two approved appraisers. The consumer doesn't have a chance in Northwest Indiana."

Kentucky

"I was told secondhand that HUD was in town investigating rumors of kickbacks from a mortgage company to Realtors in Paducah. I don't wish ill to them, I just would like the playing field level so we little people can play, too! Supposedly, for every loan closed with them, they would give them 0 in 'advertising' money. I'm not one to stick my nose in other people's business, but it's at the point where it's affecting my business also."

Ohio

"One large underwriter closed a large AfBA with the second-largest real estate company in Columbus, Ohio, and the Realtors just move down the road to the next company that will create a sham business to put money back in the prohibited entity's hands. Title insurance, although a commodity, is a service industry and we need to get back to that. Realtors and mortgage lenders make the largest gross revenue per real estate transaction. I would not be disappointed at all to see AfBAs or joint ventures go away. They are bad for the consumer."

Oklahoma

"Oklahoma is corrupted all the way to the state capital and no-one seems to be interested in bringing it to a halt. At least a dozen questionable LLC's exist in Tulsa alone between Realtors, builders, title insurance companies, closing companies and lenders. The state insurance commissioner and the state attorney general have been notified for years but always turn a blind eye once the Realtors stop financing their re-election campaigns. Oklahomans are being swindled out of millions of dollars every year, but we can't get any help. HUD really needs to crack down on the big insurance companies that are allowing these practices to continue."

"Sham AfBAs are going on in every state. In Oklahoma, I am constantly in competition with my own underwriters. The nationwide title insurance companies are taking over all the business in every state and we feel helpless to do anything about it."

"I've been screaming about this for three years and noone listens. The agents are conflicted over whether to get the best deal for the customer or put more money in their own pockets. There are too many of these illegal AfBAs across the country, but how can they be stopped? The big Realtors and builders have found an unregulated industry and are ignoring every aspect of RESPA, and it is all being blessed by the underwriters and our spineless insurance commissioner. I am fed up with the level of corruption. The public has no concept of what is happening and the bad guys and their attorneys are capitalizing on that ignorance to win the war and continue to take hundreds of thousands of dollars every year in illegal kickbacks."

Pennsylvania

"My business has been greatly damaged by sham AfBAs that don't do ANY of the title work, let alone perform 'core title services.' Unfortunately, I am in a small town and turning in the offending parties is tricky."

Massachusetts

"Kickbacks by lawyers to lenders is common in Massachusetts -- typically 0 per closing. Is this not sharing legal fees? Kickbacks to lenders by appraisers is also commonly known in Massachusetts, New Hampshire and Connecticut. Is this not the lender getting appraisal fees without a license? We see no end to the practice."

Michigan

"Michigan is out of control!"

Nevada

"Several real estate companies in the Las Vegas market are ties with mortgage companies. That is not so new, but when they are recruiting agents, their fees are so low that it concerns me that they are subsidizing the cost for the agents' fees on the real estate side with the mortgage fees. This to me would be an influence to the consumer even if they disclosed they were receiving compensation from the lending side. The consumer acknowledging the compensation may do so unknowingly or is lead by the agent in a manner that is not apparent to the consumer and are actually paying more for the cost of the loan to subsidize the agent's or broker's overhead cost of doing business. One company also was advertising 125 percent commission on the sale if tied with a mortgage from the company. New homebuilders do this all the time with their lenders offering incentives only through the in-house lender. My thought is that if this practice is allowable, that we should do the same to stay competitive in the marketplace, although I do not believe this to be in the best interest of the consumer, and would violate the fiduciary responsibility of the agent and the broker."

Texas

"RESPA violations are plentiful in the Dallas-Ft. Worth area, as many Realtors do not disclose anything and some mortgage companies are receiving gifts from appraisers to get more of their business that is not disclosed by either party."

Virginia

"A problem that I continually see in our market lies with CRESPA (Consumer Real Estate Settlement Protection Act) - approved settlement companies marking-up fees. Typically, I see the surveyor's fee increased 0+ with the HUD line reading 'Survey to Sam Surveyor/XYZ Settlement Services...0." Having made inquiry of the surveyor, I was able to confirm that his invoiced fee was 0. Same thing occurs with the abstractor's fee. Fees are charged for the preparation of the R-5 form (a Virginia-required seller form ONLY if the seller is moving out-of-state or is an out-of-state resident) even if the seller is a Virginia resident and not moving out-of-state. The most disturbing thing that I see is the marking-up of title insurance rates beyond the normal rates found in Virginia. What I encounter are companies charging no or a minimal settlement or closing fee and then marking-up the title premium 0-0. We also have a situation where a particular title agency whose primary stockholders are various local banks. Loan officers are paid bonuses by the bank for every loan that is insured through the bank-owned title company. Borrowers are given a very lukewarm choice of competing title companies and, on occasion, a loan is approved with an unwritten agreement that the borrower will use the bank-affiliated title company. Title companies having affiliations with local Realtors is an ongoing problem. Sales agents are highly pressured to use the broker-related title agency. The current situation is making it harder and harder for us to compete. I have never complained about competition but the playing field is not level. My choice to remain competitive is to break the rules. I have no desire to encourage this cancer that is destroying our industry."

Insert your state here

Do you know of suspicious things going on in your local marketplace that you'd like to see investigated?

In order to report a RESPA violation, you should send HUD a written complaint describing the practice that you believe violates RESPA. The complaint should include the names, addresses and phone numbers of the alleged violators. HUD prefers that you also include your name and phone number in case an investigator wishes to ask further questions. You may request confidentiality. Send the complaint to:

U.S. Department of HUD

Office of RESPA and Interstate Land Sales

451 7th Street, SW, Room 9154

Washington, DC 20410

You can also reach HUD's RESPA division by phone at (202) 708-0502 or by e-mail at hsg-respa@hud.gov

You may also wish to send a complaint to state and other federal agencies that have the responsibility for regulating the settlement providers engaged in the referenced practice. As far as we know, there is no way to know if a company has already been reported, because the agencies won't release that information until after an investigation is completed.

Violation Nation - What We Are Hearing About RESPA Crime Today

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How Real Estate Agents Lose Home Buyers

As a home inspector and the neutral person during a real estate purchase I occasionally get information as to why a home buyer decides to use a different real estate agent. What I will do here is to share some of these reasons so that perhaps you can learn to be a better sales person or representative for your clients. Whether you are an agent or not this information will be helpful to you and your employees.

As I perform home inspections around the Columbus Ohio area I have the opportunity to do inspections for many people. Sometimes I will do second inspections for someone because the first home purchase did not happen. This happens for a variety of reasons such as loan issues, septic system problems, influenced by family, etc. This is somewhat expected. People have different levels of comfort when it comes buying a home. Every now and then I will notice that the home buyer is using a different agent as their representative. When this occurs the buyer will often come out and tell me why they switched agents.

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The first time I encountered a person changing agents they told me it was because the entire time the agent was showing them some houses, the agent was talking on the cell phone to someone else. The agent was not giving them the attention that they deserved and expected.

How Real Estate Agents Lose Home Buyers

Another time the buyer decided to find another agent was when their agent pushed them harder to buy a home than they liked. The agent even tried to make them feel guilty by saying that if they did not buy the house then the sellers would be foreclosed on by the bank. The buyers did not feel that the agent was being a good representative for them.

Another client that I did several home inspections for got out of a home purchase for a couple of reasons. There were some expensive issues with the septic system that the septic company revealed but that was not all. The listing agent was part of what killed the deal. The listing agent was way too slow in responding to communications. This slowness to respond and to help solve issues made it too much of a difficulty to deal with so they got out of the home purchase. If the agent was fast to respond and was helpful then the issues may have been dealt with fast and appropriately, saving the home purchase.

As a home inspector in Ohio I am in a position of trust when it comes to the home buying process. Buyers will tell me things that they may not reveal to the agents. When they tell me issues and why they changed agents I use that information to learn from and to check how I do things. Perhaps that is why I get the good number of referrals I get from past clients.

How Real Estate Agents Lose Home Buyers

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What Role Does Litigation Support Play in a Court Case?

A definitive report of the events that have happened and the proceedings are important for future references. Litigation support concerns the adequate conversion of written reports, diskettes and other file forms to a searchable form, of which readers or users could access from electronic files. Litigation support workers are ordinarily people that are highly trained in certain areas, such as forensics, psychology and other professions that would be able to assist the lawyers win their case.

Litigation support however, is more complex than the simple document preparation that is normally expected. To keep up with ever changing technology, litigation support now converts their documentation in other formats so they are easily obtainable digitally.

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Litigation support services

What Role Does Litigation Support Play in a Court Case?

These include all the essential processes involved in supporting lawyers in their cases. The following are litigation support services:

-Choosing appropriate witnesses by questioning all the witnesses in the case.
-Coordinating paperwork into an easily accessed data.
-Preparation of documents for legal purposes.
-Looking through documents that may be of use throughout the legal proceedings.
-Conversion of documents to another form using a software or IT technology.

Things you should know about litigation support services

Support services may well be employed on a case to cases basis and tasked to perform not only the above-mentioned things but may well also be asked to offer case strategy products or electronic information that would help the lawyer win a case.

They must not only be good in records review and organization, but also proficient in switching important files to different IT enhanced files. Examples of these are conversion of files to digital copies, auto-coding of pertinent papers and files, transcription of data to electronic format and the like.

Law firms make good use of court reporters when it comes to preparing hearings, dispositions and court proceedings, and their services are incredibly crucial.

The success of the support individual or agency relies heavily upon their efficiency, reliability and dependability.

What are litigation experts?

Support staff are particularly educated in both their services and in their IT skills. Being able to convert legal court documents in to digital files that are downloadable is a must for these folks.

Some Law firms have their own court litigation staff but eventually they recognized that using the services of legitimate and reliable litigation consultants was more affordable and more practical. Most Law Companies now employ the services of trusted and established litigation organizations or support consultants. This will eliminate the cost of training their own support staff.

The service they will are given is precisely the same whether or not they employ their own litigation support staff or contract the work to an agency or individual.

In essence, court reporter staff is a special service that is there to provide help to the lawyers by giving all the vital paperwork, documents, files and anything else that is needed for the case. Often the service is more in depth when they even help the lawyers to formulate a winning strategy for the case. Once all the information has been supplied, it is up to the law firm or the lawyers to make the finalized decision on how the case should be handled, and what the litigation support should help them with.

What Role Does Litigation Support Play in a Court Case?

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Cheap Ohio Bankruptcy Lawyers - 7 Tips to Find a Low Cost Attorney

Finding the right bankruptcy lawyer Ohio can mean the difference between a smooth and a rough ride. And 'possible bankruptcy procedures to my documents, but lawyers familiar with bankruptcy documents, laws and other techniques for getting the best deal possible.

Tips for finding Bankruptcy Lawyers in Ohio

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Start as soon as possible. Referring to the search for a lawyer in Ohio only cheap swipe at the end leave.A race, a decision can leave you with a lawyer that you are not familiar with the long term. Start searching and already you have the time to make a decision that will help you make the best results. Questions. Ask the people who know all the experiences that may have had with lawyers of local failure. Ask the lawyers who speak their past experiences with you. Look on the Internet for complaints or complimentsseveral lawyers who are considering. Visit the bankruptcy court in your area. You can watch the lawyers to work and get a feel for their experience and know-how. Seeing failures can occur even help you understand the process completely. The Northern District has courthouses in Cleveland, Akron, Canton, Toledo and Youngstown. Southern District has court house in Cincinnati, Columbus and Dayton. You have to talk to other professionals with whom you workedin the past. They may have advice on bankruptcy lawyers Ohio. Accountants and lawyers in other specialties may have the right to submit a proposal for your needs. Use the Internet. Take time to browse the various websites law firm, to see where they specialize. You can also use the Internet to do a search on any lawyer or law firm may be interested in doing. Check with agency services. The Ohio State Legal Services Association (OSLSA) can help in the formwith the bankruptcy lawyer that best meets your needs. They also provide legal assistance to Ohioans, income below 125% of the current official federal poverty guidelines have. Meet with other lawyers. Most Chapter 7 or Chapter 13 lawyers offer a free initial consultation. One session was all that is needed to see if it would be in a position with a lawyer or if you continue to look for work. Be sure to write down a list of questions, so askthat you get the same information from all of the lawyers that you visit.The number one thing that you need to work your way through the bankruptcy lawyers and choose the one for your circumstances is to start early. You will want time on your side as you work through the different sources that may offer you guidance in choosing an Ohio bankruptcy lawyer.

Cheap Ohio Bankruptcy Lawyers - 7 Tips to Find a Low Cost Attorney

Cheap Ohio Bankruptcy Lawyers - 7 Tips to Find a Low Cost Attorney

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Ohio License Plates Search - How To Perform A Quick Search

Ohio is a relatively fresh, but not free from drunk drivers and drivers from driving their vehicles under the influence. Although DUI records in this state is not as high as they are in states like New York, Texas and California, does not mean that people are not unhappy with drunk drivers every day. You probably get your car destroyed in a crash or cut off from one of these drivers, and you wonder how you can build the driver arrested. You can find all the drunk driver orDUI Drivers visiting the easy capture of the Ohio Department of Public Safety for Ohio license plates.

The Ohio Department office is not only in the amount of riders, number plate and driver's license plate number searches, but it is a great place to start your search. If you do not live very far away, you can simply go to the office, pay the fee and receive the desired information in no time. However, you must beTo obtain a representative body, a lawyer, a law enforcement agency, a lawyer, a court or insurance company, access to the file plaque Ohio. Normally, those who are able to access files, but the Privacy Protection Act of drivers has unauthorized access to issues of identity theft and victimization emerge from access to such information by unauthorized persons prohibited.

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To save time, you want to spend to the Ohio Department of Public Safety, you can call the local office to see if you qualify for access to files. This is especially necessary if you live far from the office. You can reach the office by phone 614-466-4344. The office is located in Charles D. Shipley Building, 1970 Broad Street, Columbus, Ohio. Making a call in advance helps you to know, whether it's worth, not all the way o

Ohio License Plates Search - How To Perform A Quick Search

An alternative to the use of> Ohio Department of Public Safety is the Internet. There are some private research companies register on-line and have access to public records and can give information about license plates in Ohio. These sites require only that the indicator of the driver that you want to track, and you will get this information as the name of the driver, address, telephone number and other information that may be of interest.Unfortunately, this service is not free. You should be prepared to pay about $ 20 or so, before you can obtain the necessary information.

Paid online searches are cool because they are faster and easier, and eliminates the bottleneck of protocols you have in any case with you when you visit the business office department in Ohio. The information obtained from this source to be the most authentic of what you get when you visit the office personally. Thisoption will be helpful for those who do not meet the requirements to access the Ohio license plates records at the Department of Public Safety.

Ohio License Plates Search - How To Perform A Quick Search

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Have You Been Arrested for Assault?

Historically, men have been known to resolve their differences with physical confrontations. From bar fights in the old Wild West of the war, young soldiers fighting for a girl, men and women have fought for what they have done for centuries, really long. Today times have changed and nobody can get into a physical fight, without criminal consequences.

The crime of aggression includes the threat of force with the ability to perform coupled. If a woman tries to beat themThe man in the head with a frying pan and lack even accused of crimes of aggression. If a man by force, another man in the chest in a way that could be interpreted as violent or offensive, can be accused of aggression.

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Assault is often confused with the battery. The main difference between the two is that the attack is not necessary that actual physical contact took place while the battery. Were treated with a conviction battery needs body contactbetween the suspect and the victim.

Have You Been Arrested for Assault?

Assault charges are difficult, because there are always two sides to a story and there are always witnesses. Women and men can be victims of aggression. Some men were raised to never hit a girl, but his angry wife or physically assaults his girlfriend in a violent quarrel.

When the man tired of abuse and beatings of women, could be the prime suspect. The police are more feminine than male assault victims of contrast used. Themale victims may explain a difficult, he acted in self-defense, even if it really is.

Even if you were right, you must have your own representation when he was charged with assault. Since the attack will be prosecuted as a crime or a crime, can not afford to make the mistake of thinking that your innocence is to avoid a conviction.

With many allegations of aggression, it's your word against the other person is, which means you will meet yourLegal defense to prove your innocence. If you have been finally sentenced for assault, he could face heavy fines, imprisonment and victim restitution. And 'your right to have an attorney, and it is your right to defend themselves when someone is physically attacked, but you must act quickly to ensure a qualified criminal defense attorney.

Have You Been Arrested for Assault?

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Five Tips & Five Steps --- To Sell or Not To Sell My Business

They were seriously thinking of selling your company, but I really do not know where to start. You've heard some horror stories about different sales processes, with an advance payment and are less than what you really wanted, but people so far in the process that will not repent. You are not really big enough for one of Wall Street banker and investment is not known mergers and acquisitions of companies hiring reliable.

Does this sound familiar? NotDespair, you are not alone. Most owners of small businesses with revenues of $ 5,000,000 up to $ 100 million the same questions and face the same doubts. Hopefully the following tips to help you calm down and put stages and provide some guidance for the actions that you can not or will not take.

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TIP # 1 - Preliminary Assessment of Business Value

Five Tips & Five Steps --- To Sell or Not To Sell My Business

Preliminary is the key word here. Most owners have an idea of ​​what their job is and whatbe satisfied when they decided to sell. Unfortunately, statistics show that most owners of an opinion of value, which is usually higher than what the market should bear. So, before going to hire discussing New York M & A business or go to this seminar on the sale of your company with your tax advisor, consultant, popular, you know, or have grown our business with the banker well you r or lawyer. Do some networking, and you may find that you do a preliminary assessment for a verysmall fee ($ 1700 to $ 2500). This at least give you a platform, value, and some knowledge to determine the next steps. (E-Mail-rick@ceostrategist.com for more information on a preliminary assessment of the use of industry-standard methodology)

Tip # 2 - Having a strategic review of business Performed

He had made a preliminary assessment, and you are comfortable enough to continue the process to the next level. This means that you need to complete a strategic review. This can be done by you asOwner or any family or household, has been in business. However, it is recommended to perform this evaluation, an outsider. As the owner who work in the field on a daily basis, it is often difficult to see the wide range of organization as a whole. Need to know how your company is ready for the sales process. There are many factors to explore the willingness to sell before the final decision. Failure to comply with this assessment and to correct or go toCompensation for all the problems discovered will cost hundreds of thousands of dollars in sales process can begin. You can lead a strategic review by any number of consultants in bulk. Prices will be $ 5,000 to $ 15,000 for this process. After reading this, we can estimate that the time is not right, choose to maximize shareholder value through the sale of the company. It might make more sense to continue the activities of growthrecommendations outlined in the assessment.

TIP #3 - Who is My Buyer?

You had an assessment, you put lipstick on the pig (fixed any issues uncovered) and now you decided to take your baby to market. Don't jump right into the M&A arena and hire that big mergers and acquisition firm. Chances are very good that you already know who the buyer or buyers might be. Is it your biggest local competitor, one of the national firms, one of your suppliers or customers looking for vertical integration or could it be one of the many investment groups. Do your homework before you commit to paying the type of commission you will end up paying with even a smaller M&A firm. Explore the internet and look at businesses for sale or companies that are looking to buy. Talk to your association. You may end up with several interested parties that can drive up the price without paying high commissions. (Of course, the minute you start discussing a sale with any potential buyer be sure to get your attorney involved)

TIP #4 - I'm Ready to Sell, What Now?

Whether you do it yourself because you know of numerous prospective buyers or you decide it's too much hassle and look for professional M&A help, the next step is to create a comprehensive document, The Confidential Strategic Business Review Report. This document describes your company in detail. It includes recast financials. (Financials that are adjusted to create a realistic EBITDA taking out owner perks that would not be costs to a new owner) EBITDA is earnings before interest, taxes, depreciation and amortization. Acquisitions are often made as a multiple of EBITDA.

If an M&A firm represents you, preparation of a one-page Confidential Profile which highlights the acquisition opportunity without disclosing the name and location of your company is essential. This profile is used during the initial buyer/Investor contact phase.
At this point, make sure that the firm you pick matches your company and even more important, make sure you are comfortable with them. Factors you should consider when selecting an M&A firm include:

o How many companies have they sold in wholesale distribution

o How many companies match or come close to your company's revenue stream.

o References, and you must check them, are excellent

o What industries do they specialize in

o What is the size of their firm? You don't want to be a little fish in the ocean but you also don't want to be a whale in a pond.

o How many active qualified buyers do they have in their data base? It should be hundreds if not thousands.

o How many private investment funds are they connected to?
.

TIP #5 The Basic Steps in Concluding a Sale.

Things are going to get both exciting and frustrating. Again, the following steps apply regardless of who sells your business but are primarily the steps utilized by an M&A firm taking your business to market.

Step #1. TARGETED BUYER SEARCH

A targeted buyer search is performed from a data base of potential buyers and investment funds. If you are using an M&A firm this data base will more than likely be over 10,000 in number. A list of potential synergistic buyers will be the result of this search. This list is reviewed by ownership to discard any obvious mismatches or personal owner concerns about anyone on the list. A second formal valuation that includes equipment and property appraisals may be a desirable option at this point.

Step #2. INITIAL BUYER CONTACT & DATABASE PLACEMENT

Targeted Buyers & Investment Funds are contacted via mail, which includes the Confidential Profile. Concurrent with the above activity, the client company is listed on the Merger & Acquisition on-line database, presenting the acquisition opportunity to the database's registered buyers. Interested buyers and other M&A intermediaries generally will respond via E-mail. .Personal Follow-up to determine potential buyers' interest in obtaining The Confidential Strategic Business Review Report is conducted to ascertain interest.

Step #3. INTERESTED BUYER CONTACT and FOLLOW UP

Upon receipt of an endorsed Non-Disclosure Agreement, The Confidential Strategic Business Review Report is sent to interested buyers/investors. The M&A firm or your representative follows up with interested buyers and provides additional information as may be required. Buyer's credibility (ability to buy) needs to be verified at this point. A buyer visit is arranged to view the premises and speak with ownership. This visit can be arranged for after hours if ownership is concerned with confidentiality.

At this point discussion and counsel needs to occur to prepare relative to pending buyer visit and preparation of buyer visit agenda with meeting objectives that have been predetermined. (Management presentation, facilities tour, additional documentation required, buyer-client interface & discussion guidelines and other relevant details to ensure a positive image and successful meeting).

Step #4. Getting a Letter of Intent

Confirmation of buyer(s)' interest in pursing a transaction and obtaining of a Letter of Intent is the number one objective. Ideally several offers presented for comparative purposes and obtaining the most favorable price and terms will maximize the value of the sale. Of course you are not obligated to accept any offer presented. A letter of intent is a basic contract that states the buyer will acquire the business at a suggested price assuming all details and financial information submitted is accurate and passes due diligence on the part of the buyer.

Your representative should interface with your professional advisors (CPA, attorney, financial planner etc.) as may be required in providing their assessment of a proposed transaction. Guidance should be provided relative to negotiation of deal points and other issues as may be required.

Step #5. Due Diligence and The Deal Consummation

Assistance should be provided to prepare for the buyers due diligence. Don't try to conceal or hide the dirty underwear. Own up and show what has been done to put it in the wash. Honesty is essential. Generally speaking, the process is predominantly financial. However, employee concerns and other issues may arise. Your representative should be available or on cite throughout the process. A thorough inspection of inventory and accounts receivable are a key part of due diligence. Experience tells us that inventory value is always a bone of contention. What is aged, ailing and dead inventory valued at? Be prepared for further negotiations. Have a heart to heart with your advisers. Make sure they have a comprehensive understanding of your objectives. Keep in mind that although most good attorneys are deal makers, some are deal breakers.

This process sounds more complicated than it really is. The real difficulty lies in the initial decision on whether you should sell your business or not. Although this article indicates that selling your business yourself is possible, and it is, make no mistake it is not recommended that you attempt to sell your own business without proper consultation from professionals that know the mergers and acquisition business.

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Five Tips & Five Steps --- To Sell or Not To Sell My Business

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The Tax Relief Act of 2010 - How Does It Affect You?

On December 17, 2010, President Obama signed into law the 2010 Tax Relief Act, which has provisions dealing with income and estate tax and unemployment insurance provisions. What is important about this new law is that it is a temporary measure and, for the most part, only impacts 2011 and 2012 - in other words, it is a band aid. All the Bush-era tax cuts which were scheduled to expire in 2010 will now expire at the end of 2012. That's a pretty scary thought considering that 2012 is a presidential election year and President Obama may be a "lame duck" president without an ability to extend anything past 2012.

Income Tax Provisions

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So what is so important about the 2010 Tax Relief Act? Well, for starters, it will keep our existing personal rate structure in place (10% to 35%). If this had not passed, the old levels would have been put back into place with rates ranging from 15% to 39.6%. The capital gains tax rates will also remain the same with a zero percent and a 15% rate applying to long term gains and a 15% rate applying to qualifying dividends. If the new law had not passed, the rates would have reverted back to 10% and 20% for long term gains and dividends would have been taxed at ordinary rates instead of the 15% rate.

The Tax Relief Act of 2010 - How Does It Affect You?

Anyone who pays withholding taxes should be happy because the social security tax rates are reduced by 2 percentage points which means that the employee portion of the social security taxes is reduced from 6.2% to a temporary rate of 4.2%. This is effective only for 2011. The employer portion will remain the same. Also, the total 15.3% self-employment tax rate is temporarily reduced for 2011 to 13.3%. Self-employed people will still be able to deduct the full amount of the employer's portion as an adjustment to income.

Finally, alternative minimum tax exemptions have been increased in 2010 and 2011. This will help some middle income earners from being subject to the AMT.

There are several personal tax credits and tax deductions that are also extended through 2012. The tax credits that are extended include the Dependent and Child Care Tax Credit (,000 for one child, ,000 for two or more children), the Adoption Tax Credit, the enhanced Earned Income Credit, the Enhanced Child Tax Credit and the American Opportunity Credit. The tax deductions that are extended include a temporary repeal of the dollar limitation on itemized deductions for higher-income earners, temporary repeal of the phaseout for personal exemptions, deduction for student loan interest, sales tax deduction (which is an optional itemized deduction in lieu of the deduction for state income taxes), and tuition and fees deduction (expires in 2011), classroom expense deduction (through 2011).

Estate Tax Provisions

The 2010 Tax Relief Act affects the rules governing federal estate taxes, gift taxes and generation-skipping transfer taxes for 2010, 2011 and 2012. For those who die in 2011 or 2012, the federal estate tax exemption will be million (it went away for 2010 and was .5 million in 2009 and 2008) with the estate tax rate for estates over million being taxed at 35%. The estate tax is also unified with the federal gift tax and generation-skipping transfer tax meaning that the exemption for each is million and the tax rate for both is also 35%.

Something unique to the 2010 Tax Relief Act that we haven't seen in prior years is the ability "portability" of the federal estate tax exemption between married couples. In 2009 and before, married couples could each pass their federal estate tax exemption (in 2009, that would have been million for a couple) by using a revocable trust that had A/B provisions, also known as credit shelter provisions. The new law allows married couples to add any unused portion of the estate tax exemption for the first spouse to die the surviving spouse's estate tax exemption. In theory, a married couple should be able to transfer up to million to their heirs free from estate tax without having to use a credit shelter trust. However, it is not exactly clear how this is going to work as this has never been done before. Contact the Law Offices of Laurie Ohall for more information.

The Tax Relief Act of 2010 - How Does It Affect You?

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Medical Device Patent Litigation is likely to increase?

Patent litigation in the field of medical technology can be expected? Recent studies suggest that some features of patent applications with a greater likelihood that some patents end up in court tend to correlate. Innovation is the heart of the medical device industry. As with many industries, if you're not constantly working to bring new products and technologies on the market, there's a good chance that you will not survive. Companies that are successful, and continuessurvive to invest millions of dollars a year in research and development to create new products or better. The companies that succeed, to survive and continue to invest millions of dollars a year in research and development to create new products or better. Not only are these companies investing in the development of new technologies, but also investments in the protection of their innovations through the patent system. In fact, for the 2006 fiscal year, the U.S. Patent andTrademark Office (USPTO) presented a record of more than 440,000 patent applications, provided that more than double the number of applications a decade ago.

Provided, of course, with a record number of patent applications and the large number of patents each year would be logical to expect that the number of patent applications related complaints also increase. Recent statistics tend to justify this logic, as more and more patent holders, the courts are intended to protecttheir valuable intellectual property. For example, from 1995 to 2005 the number of patent cases filed in the United States has increased from about 1,700 to more than 2700, an increase of 58% in 10 years.

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However, the possibility of a lawsuit while 'on the basis of probability. While the number of cases of patent applications has increased steadily over the past decade, it is interesting to note that recent studies estimate that on average only 1% of U.S. patentsprocessed. However, these studies also note a number of properties, to predict whether a patent will probably tend to be processed. These features include: (1) the number of claims describing the invention, (2) the number and type of prior art citations, and (3) the "seal" the technology sector. Every feature is less, including as regards the characteristics described in the medical device industry.

Medical Device Patent Litigation is likely to increase?

Number of complaints

A patent must be at leastargued that describes with specificity what the applicant regards as his invention. The claims of the patent are often likened to the description in a deed of property, both to define the limits and scope of the property. Since the demands of the limits of the invention, the applicant is an incentive for the invention is defined by a series of large claims. But in some technical areas where there is a large amount of prior art, the applicant can establishTo avoid the invention through a series of narrow claims, the state of invalid.

And as the number of applications seem to be related to a patent, the probability that the patent will be treated in a day? Empirical studies have found that patents developed a larger number of claims processed as a non-contrast patents. In fact, one study found that about 20 patents developed arguments were, on average, compared to only 13 patent applications are not processed. The researchers quotesome reasons to help explain their findings: the perceived value of the patent and the limited range of patented technology.

The claims are simply the most important part of the patent. Therefore, should not be surprising that purports to design and expensive to be pursued. Paying more money for a greater number of claims suggests that the patent holder believes that a patent with claims worth more probably more. However, some researchers concludethat the basic patents are processed more claims are not treated as patents, the patent holder would be useful to know the patent, provides the prospect of legal proceedings, and to help as a result of multiple complaints, drafted patent.

The field of technology protected by patents, which may also explain why patents should be treated with a rather large number of complaints. In a crowded field of technology, it is probably more competitors that are developing similarProducts. So it makes sense that patents that have a large number of complaints in this crowded areas tend to conflict with competitors.

A general idea of ​​how the number of claims for the medical device industry for the last 50 issued patents have been analyzed for endoscopes. The results show an average of 17 requests per patent. This number is somewhere in the middle of the call numbers for the patents cited treated and untreatedfirst. It seems likely, according to empirical studies, that patents are more likely processed. In addition to a greater chance handled, can these results show that the medical industry crowded values ​​its patents and anticipates litigation, with the result that patents with a higher number of credits.

Quotes of the first Art

Under U.S. patent law, the inventor and any other person who is involved in the contentin the preparation and prosecution of a request has the duty of all known information material to the patentability of the invention are known. To meet this requirement, patent applications in the control file, and as a statement of disclosure of information, which refers generally known as IDS. In IDS, the applicant lists all U.S. patents, foreign patents and patent literature, who are aware, and that is relevant to the invention. It also performs a patent USPTO examinerSearch for the state of the art and may with the prior art against the applicant, which was not previously known citation in an IDS.

When a patent is granted, the quotes of the art of records during the first charge listed in the patent at the USPTO. The researchers used this quote for information to conclude that the number of citations of art appear in a patent is a good predictor of whether a patent can be processed. One study found that processed an average of 14.2 patents citedPatents in the United States, while only 8.6 unprocessed patents cited U.S. patents. The study also showed that treatment more patents as prior art by other issued patents are cited, and that patents are processed more self-citations, ie citations to patents owned by the applicant.

How to compare patents in the field of medical devices? Even with the small sample of the endoscope cited patents as a proxy for the medical device industry, the average number of U.S.Patents, was quoted as 37 The most significant study is the discovery of 14.2 U.S. patents. This result means that patents for medical devices tend to be treated? Not necessarily. The study found that two specific categories of art earlier citations (citations received and self-citations) as significant predictors of litigation. Although the study did not mention a means of self-citations, he finds that obtaining patents is processed an average of 12.2Citations of other patents, which averages only 4.1 citations for patents were not processed. Were the average number of citations and self-citations received patents for the endoscope only 1.74 and 0.34. However, as the authors of the study suggest that the large number of famous quotations in this set small example can be found to indicate that the applicant is to be expected, the prospect of litigation and has taken measures necessary to ensure that the patent as strong as possible. Alsothe large number of citations can be attempted in the state of the art field crowded and highly competitive medical device to obtain.

The crowded field

Both properties have previously discussed patents developed the idea of ​​crowded technological fields mentioned. It may be obvious, but the term "overcrowded area" refers to an area of ​​technology in which they define many competitors and many issued patents to the technology. Sun patents issued inare crowded area, by definition, more competitive and thus more possibilities that the patent will be processed.

Under current U.S. patent classification, including more than 430 classes, eight classes, apparently, directly linked to the field of medical technology in context. Within these eight classes, there are over 2300 sub-classes, which can be classified as a medical device patent. The large number of classes and subclasses seems to suggest that the medical deviceSector as a whole would, most likely as a crowded field. In addition, most medical device manufacturers are demanding a better understanding of the value of their intellectual property. Since innovation is the lifeblood of the industry, it makes sense that the industry protects more of their inventions, which leads to more medical device patents issued. So, more patents in technology for a greater likelihood of patent litigation in bringing thisField.

At least one study shows that patents on medical devices are much more elaborate than the average of all patents. The study provides an explanation of why patents for medical devices are more likely with the finding that the medical device industry are treated as a whole, view patents as valuable assets.

Completion

Patent litigation is rising. Have conducted empirical studies in recent years, some of the identifiedProperties, strong predictors of whether a patent can be processed. , A large number of lawsuits and increase the state of the art of citations a patent on the ground the possibility of court. A crowded field of technology can also lead to a higher risk of patent litigation.

Through the crowded in a range of products in the medical sector is expected to remain highly controversial. Of course, this race to the courthouse indicator of the value that the industry as a whole placeson its innovations and thus its survival.

© 2007 Gallagher & Dawsey Co., LPA April 2007

DISCLAIMER

Please understand that we do not give accurate legal advice to all inventors in a short article on matters related to intellectual property. Consequently, there is nothing in the above determined as legal advice for any specific person. Legal assistance can be given by a qualified professional, after a careful examination of all circumstances. We ask you to informus or another qualified professional before proceeding.

Medical Device Patent Litigation is likely to increase?

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2009 Complete Guide For Restaurant Real Estate Investments

The restaurants are a popular commercial real estate for many investors, because:

Tenants often sign long-term, for example 20 years absolute triple net (NNN) leases. This means, besides the rent, tenants also for real estate taxes, insurance and pay all maintenance costs. The only thing the investor has to pay the mortgage, which in turn provides a very predictable cash flows. There is a responsibility or not, or only a few landowners, because the tenant is responsible for maintenance. This allowsinvestors more time to do important things in life such as retirement. All you have to do is to review the rent to the bank. This is one of the main advantages of investing in a restaurant or single-tenant property. If you are rich or poor, people need to eat. Americans eat more often, because they are too busy to cook and clean the pots and pans on what are often the worst part! According to the National Restaurant Association, the nation's restaurant industry is currently involves937, 000Restaurants and expected to reach $ 537 billion in revenue in 2007, compared to only $ 322 billion in 1997 and $ 200 billion in 1987 (at current prices and exchange rates). In 2006, for every dollar Americans spend on food, 48 cents was spent in restaurants. As long as it is the civilization on earth, there will be restaurants and investors feel comfortable that the property is always in high demand. You know your tenants will take very good care of your property because it is in their interest to do so. Only a few customers, if they ever wanted in a restaurant, a dirty bathroom and / or waste in the parking lot must go.

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However, restaurants are not the same ... from the perspective of investment.

2009 Complete Guide For Restaurant Real Estate Investments

Compared Independent Franchise

We often hear that 9 out of 10 new restaurants not in the first year, but this is just an urban legend, because there are no conclusive studies on this issue. There is only one study of hospitality Associate Professor, Dr. HG Parsa of> Ohio State University, the new restaurants in the city of Columbus, Ohio, is pursued during the period from 1996 to 1999 (Note: it must be concluded that the results are the same everywhere in the United States or other periods). Dr. Parsa found that the fish restaurants are more secure and joint Mexican restaurants you'll experience the highest failure rate in Columbus, OH. His study also found 26% of new restaurantsclosed in the first year in Columbus, OH with a maximum of 1996 to 1999. In addition to economic failure, the reasons for divorce are restaurants nearby, poor health, and the refusal to commit a lot of time on the functioning of society. Based on this study, we can predict with certainty that the more time the restaurant is in the business, the more likely they will be operational next year, so that the landlord continues to rent obtained.

For franchised restaurants, a franchiseecertain minimal amount of non-borrowed money / capital, including $ 300,000 for McDonald's to qualify. The franchisee has a franchise fee to pay only about $ 30,000 to $ 50,000 and royalties of 4-12% of current sales. In return, the franchisee receives training on how to set up and manage a business and successfully tested in part, without worrying about marketing. As a result, gets a restaurant franchise customers, once set, the open nature. If the franchisee,conduct the activities at the headquarters of the franchise to replace the current series with a new one. The king of franchising restaurants, the fast food chain McDonalds, with more than 32,000 locations in 118 countries (about 14,000 U.S.) from 2010. It has an average of $ 2M of revenue per seat in the United States. McDonalds now cover a market share of 46% of $ 58.88 billion U.S. fast-food market. Distant parts of Burger King behind with 14.3% market share. Success of McDonalds' is obviously not the resulthow his tastes delicious Big Macs, but otherwise much more complex. A survey of 28,000 online subscribers to Consumer Reports magazine ranked McDonald's hamburgers last among the 18 national and regional chains of fast food. He received a score of 5.6 on a scale of 1 to 10, with 10 being the best, behind Jack in the Box (6.3), Burger King (6.3), Wendy (6.6), Sonic Drive In ( 6.6), Carl's Jr. (6.9), Back Yard Burgers (7.6), Five Guys Burgers (7.9) and In-N-Out Burger (7.9).

Fast food chainstend to identify new trends faster. For example, are open until 5.00, as Americans increasingly buy their breakfast earlier. They are also selling more milk, coffee and fruit smoothies compete with Starbucks and Jumba juice. You may also see more salads on the menu. This will give customers more reasons to fast-food restaurants to stop and their appeal to different customers.

With independent restaurants, it often takes a while 'to come to its clients andlook for food. These structures are particularly harsh in the first 12 months of opening, in particular with the owners of little or no proven track record. So, in general, "mom and pop" restaurants risky investment because of weak initial sales. If you want to invest in a non-brand name of the restaurant, make sure that the return is proportional to the risks you take.

Sometimes it is not easy to tell if a restaurant is a trademark or brand. Some restaurant chains onlyoperate, or in a certain region is very popular. For example, Whataburger restaurant chain with over 700 offices in 10 countries and a popular fast-food restaurant chain in Texas and Georgia. It is not known on the West Coast in 2010. Branded chains tend to have a website, where all sites and for more information. So if there is a restaurant by Google or Yahoo, you quickly realize, when an unknown name is a trademark or not. They receive basicConsumer information on almost all chain restaurants in the United States on Wikipedia.

Lease and rental guarantee

Tenants often sign a lease term absolute triple net (NNN). Property taxes, insurance and maintenance: This means that in addition to basic rent, but also to pay all operating expenses. For investors, the risk of maintenance eliminates the uncertainty and cash flow is more predictable. The tenant can also guarantee the rent with his orCorporate values. Therefore, if too close, have a business that will continue to pay rent for the duration of the lease. Here are some things you need to know about the lease agreement:

In general, the more the guarantee is the lower the return on investment. The guarantee of McDonalds Corporation, with a strong "A" by S & P corporate rating of a public company is much better than a small company owned by an affiliate with several restaurants. Consequently, aMcDonalds Restaurant with the leasing company usually offers low-Cap 6-7% (return on investment in the first year after purchase), while McDonald affiliated with a guarantee (over 75% of McDonald's restaurants owned by franchisees) of 6 in able to offer 5 to 7.5% ceiling. How to determine the level of risk you are willing to take because you do not get, is low risk and high yield in a plant. Sometimes a multi-location franchise is forming a parent has for all restaurants. Each restaurant is in turnowned by a single unit of a limited liability company (LLC) to protect the parent company of liability. So the guarantee rent from Budget LLC does not mean much, because there is not much wealth. A good, long warranty is not a lemon, a good car. Similarly, a strong guarantee is not a lousy restaurant a good investment. It simply means that the tenant agrees to pay you rent. So do not judge a property mainly on warranty. The warranty is good untilThe company guarantees that filed for bankruptcy. At that time, the company has reorganized its operations by closing sites with low turnover and retain the documentation (such as those with high turnover). So it's more important for you to choose a property in a good position. If there is a low coverage (for example, from a small, private companies) are the case, you get two benefits: payment of rent on time and with high efficiency. If you happen to invest in a restaurant "Mom & Pop", make sureall customers, for example, both mom and pop to ensure the lease with the property. The guarantee in case of a lawyer, so they are well protected to control.

Location, Location, Location

The worst restaurant could be in a good position to fail, while those with a good menu in a bad place. A good position is strong revenue for the operator and is especially important that you as an investor. It 'was thisFeatures:

High volume of traffic this way to attract more customers to the restaurant and as a result of higher income. So, a restaurant at the entrance of a regional shopping center or Disney World, a large shopping center, or university is always desirable. Good visibility and signage: a high volume of traffic must be accompanied by a good visibility from the street. This minimizes the costs of advertising and on arrival is a constant reminder for the guests SimpleDrop-off: a restaurant on a one-way service road parallel to get away with a lot of highway traffic and good visibility, but not in an ideal location. It 'difficult for potential customers to return in case of no entry. In addition, you can not make a left turn. On the other side is the restaurant directly at the exit of the motorway convenient for customers. Excellent demographics: a restaurant should be good in an area with a large,population growth and high incomes, because it must spend more and more people with money. The company should generate more income to pay for the increase in higher rents. Plenty of parking: Most restaurants are chained to house its own parking for customers during peak hours. If the customer fails to find a parking space in a few minutes, there will be a good chance to jump and / or does not return so often. A typical fast-food restaurant take about 10 to 20 carsSpaces per 1,000 square feet of space. Fast-food restaurants is, for example, need to sit down cars than McDonalds restaurants, like Olive Garden. High turnover: the annual gross income does not say much by itself as the largest - have tended to increase restaurant revenue - in the name of the square footage. Thus, the rent income ratio is a measure of success. Please note that we rent to income ratio in the due diligence for further discussion. HighBarriers to entry: This just means that it is not easy to replicate, this neighborhood for several reasons: the surface is no longer simply be extended to the country or the plan does not allow any further construction of commercial property, or is it more expensive, a similar property to build because of the high cost of land and construction materials. For these reasons, the tenant is likely to renew the lease if the business is profitable.

FinancingConsiderations

In general, the interest rate is slightly above average for the hospitality industry due to the fact that they are single-tenant properties. For the lender, there is a perceived risk, because if the restaurant is closed, you could lose 100% of the income from that restaurant. Lenders also prefer national brand restaurants. In addition, some lenders do not loan out-of-state investors, especially if the restaurants are located in smaller towns. So it ismay be a good idea for you to invest in a franchise restaurants in major metropolitan areas, like Atlanta, Dallas. In 2009, there is a big challenge, funding for the sit-down restaurant for acquisitions, especially for the mom and pop restaurants and regional due to the tight credit market. However, things seem to have improved somewhat in 2010. If you want to get the best rate and terms for the loan, you should keep the national franchise restaurants in major metropolitan.

If the maximum rate is higher than theRate of the loan, for example, maximum rate of 7.5%, while the interest rate is 6.5%, should be taken into account then borrow as much as possible. You get the 7.5% return on your deposit plus 1% return for the money to lend. Therefore, the total return (cash bar) will be higher than the cap rate. Furthermore, because inflation in the near future should be higher because of fuel costs, the money borrowed to finance your purchase from a lower value. So it is even moreTo maximize use of time.

Due Diligence

You may want to consider these factors before deciding to go ahead with the purchase:

Tenant financial information: The restaurant is labor intensive. The average employee makes only about $ 55000 in sales annually. Labor costs and operating of 45-50%, about 7-12% of the rental cost of goods should be like the food and supplies to about 30-35% of sales. So you see the profitsand loss (P & L) statements, where appropriate, with your tax advisor. In the income statement, you can view the abbreviation EBITDAR. IB stands for rhyming AND WARNINGS Ncome T axes, epreciation D (device), A mortization (capital improvement) and R ENT. If you do not see royalties to P & L of a franchise or restaurant expenses related to P & L of an independent stateRestaurant, you can understand why. Of course we want to ensure that the restaurant is profitable after paying the rent. Ideally, you want to see a net profit of 10-20% of gross income. In recent years the economy has suffered a defeat. As a result, restaurants have a decline in the gross income of about 3-4% with experience. This seems to have affected most if not all, restaurants all over the world. In addition, there may be a new restaurant for several yearsreach and revenue potential targets. Do not expect to be advantageous positions, now available in a new way for restaurants chains. Credit history tenant if the tenant is a limited liability company, you may be able to get the tenant's credit history, Dun & Bradstreet (D & B). D & B offers guests Paydex, the equivalent of FICO business, or personal credit history score. This score ranges from 1 to 100, with higher scores indicating better payment practices. A PaydexScore of 75 corresponds to the FICO score of 700 Thus, if the lessee has Paydex score of 80, you are likely to gain control rent promptly. Lease income ratio: This ratio is the rent based on gross annual turnover of the store. This is a quick way to determine if the restaurant is profitable, ie, the lower the ratio, the better the situation. As a general rule, you want to keep this ratio less than 10%, meaning that the position of strong revenues. Ifthe ratio of less than 7%, operators will most likely make a lot of money to pay the rent. The rental guarantee is probably not important in this case. However, do not rent to income ratio to determine precisely whether or not the tenant a profit. It does not take into account the property taxes as part of the rental cost. Property taxes - calculated as a percentage of the appraised value - varies from state to state. For example, in California, is about 1.25% of the nominalValue, 3% in Texas, and up to 10% in Illinois. And so a restaurant with a rent income ratio of 8%, in a country still active and lose money in another. Parking: Restaurants tend to have a greater number of parking spaces needed, because most of the guests, who tend to stay within a small time window. You must be at least 8 cars per 1,000 square feet (SF) of restaurant space. Fast-food places have about 15-18 per 1000SF. Termination clause: some of the long-term lease for the tenant can terminate the lease if a fire has destroyed, and a certain percentage of ownership. Of course, this is not desirable, if that percentage is too low, eg 10%. So make sure to read the lease. They also want to ensure that the insurance also covers loss of rental income for 12-24 months for the property by fire or natural disaster damaged. Price per SF:You should pay about $ 200 to $ 500 per SF. In California, you have a premium, for example, $ 1000 per SF for Starbucks restaurants, usually sold to pay a high price for SF. If you pay more than $ 500 per SF for the restaurant, making the justification for it. Rent per SF: Ideally, you should be in a property where the rent is low for SF, for example, invest $ 2 to $ 3 per SF for a month. This will give space to increase the rent in the future. It also provides low-rentactivities of tenants is profitable, he will be there to continue to pay the rent. Starbucks tend to pay a premium of $ 2-4 per month rent for SF, as they are often at a premium location with high traffic and high visibility. If you're in a restaurant where the tenant pays more than $ 4 per month to invest SF, make sure you can justify your decision, because it is difficult to make a profit in the restaurant, if the tenant pays higher rent. Some restaurants may be aPercentage clause. This means, in addition to the basic minimum rent, the owner also pays a percentage of their income when they reach a certain threshold. Rent: The owner of a restaurant is usually either a 2% annual rent increase or an increase of 10% every 5 years. As an investor, you should prefer the 2% annual increase in rent, because 5 years is a long time to wait for a raise. You also get more for rent with 2% annual increase of more than 10% increase every 5 years.Moreover, as the rent increases every year, so does the value of your investment. The value of the restaurant is often based on the rent it generates. If the rent increases, while the market capitalization remains the same, your investment will appreciate in value. So there is no advantage to invest in a restaurant in a particular area, such as California. It 'important to choose a restaurant with a great location. Rental period: usually for long-term investors, such as 20-year leasedo not bother to find new tenants. During a period of low inflation, for example, 1% to 2%, that's fine. However, if inflation is high, such as 4%, which means they are technically less rent if the rent is increased only 2%. Not a complete picture of the property with several years of lease left, there may be strong upside potential. When the lease expires without options, the tenant may have to pay market rents much higher. Risks than investment returns: asInvestors, like you properties that offer very high yields, for example 8% to 9% maximum rate. And then you can sell a new franchise restaurant, a developer offered to be tightened. In this case, the developer creates the restaurant, complete with furniture, lamps and appliances (FFEs) for the franchisee on the franchise requirements. The franchisee signs a 20 years absolute NNN lease to pay rent for SF very generous, for example, $ 4 to $ 5 per month for SF. The new affiliate is willing to dothus does not need to come up with the money to start a business. Investors are enthusiastic about the high returns, but this can be a very risky investment. What is guaranteed to make money is, is the developer. The affiliate may not be willing to keep in tough times, otherwise no equity in the property. If the job of the franchisee fails, it can not be ready to be able to find a tenant to pay high rents, and you may end up with a freeRestaurant. Keep track of the records of the operator: The restaurant is managed by an operator with one or two newly opened restaurant is probably a riskier investment. On the other hand, an operator with 20 years of business and 30 locations may be more likely to be next year, you pay the rent. Commercial lighting: Some restaurants are sold under the trade in lighting, so be sure to document in writing what is for sale. SpecialConsiderations for 2010, while the fast-food restaurants like McDonalds do well during the crisis tend to sit-family restaurants sensitive to higher prices because of the recession. This can eat double-digit decline in sales during the year. As a result, many restaurants sitting to close during the recession. And so in 2009 there was a series of sit-market restaurants for sale with over 10% cap and long-term lease through regional absolute NNNRestaurants like Smokey Bones BBQ. Some of them were super-prime locations in regional centers, which would have been only rarely available in the standard market, removed. It 'was an opportunity for investors, as the glass of water half full rather than half empty view. Those who are still around in 2010, probably the most suitable. And so in 2010, the capitalization rate of approximately 1% decrease compared to 2009.

Sale Leaseback

Sometimes the restaurant, the operator canSection real estate and then lease back the property for a long period of, say, 20 years. A typical investor would wonder if the operator is in financial trouble, so he paid his debt to the propertyto for sale. It may, but need not be the case, but this is a quick and easy way for owners of the restaurant to get money from the stock for good reason: business expansion. Of course, the operator of the property for refinancing with cash, but that can not be the best option because:

Hecan not maximize profit as lenders often provide only 65% ​​of the value of property in a refinance situation. The loan will be a long-term liabilities balance, the show is not often seen in a positive light. Interest rates are perhaps not as favorable when the restaurant operator is not a strong balance sheet. He may not be able to find all lenders due to the limited size of the market in the credit market.

You will often see two different strategies for cash-out, if you paid the rent for the viewRestaurant Operator:

Rental market conservatives: the operator wants to ensure that pays a rent so low the restaurant industry has a good chance of profit. It also provides speed cap for conservative investors, such as the 7% cap. As a result, pay his money is small or moderate. This can only be a low risk investment for an investor, because the tenant is likely to be able to afford the rent. Significantly higher than the market rent: the operator wantsto maximize their budget price the property is significantly higher than the market value, ie $ 2M $ 1M for a property. Investors are sometimes higher maximum rate, for example, offered 10%. The operator can pay the rent $ 5 per square meter in an area where the rent for comparable properties is $ 3 per square meter. As a result, the restaurant in this location suffer a loss because of higher rents. However, operators get as much money as possible. This property could be very dangerous for you. If the tenantAffairs do not, and declare bankruptcy, you must provide a lower rent to another tenant for your right to the surface.

Leasehold

Every time you see a restaurant for sale in a long lease. The ground lease term can be confusing, since it could mean

You buy the building and lease the land from another long-term investor, for example, had 50 years leasehold. You buy the land in which the tenants own the building. This is the most likely scenario.The tenant is building the restaurant with his money and then usually signed a lease to 20 years NNN lease the lot. If the tenant does not renew the lease then the building has returned to the landowner. The maximum rate is often 1% lower, for example, from 6 to 7.25 percent, compared to restaurants where they buy land and buildings.

Since the tenant has a significant amount of money (either equity or borrowed) to be invested for the construction of the building, we must make doubly sure that thisis the right place for their business. In addition, the tenant fails to pay the rent or not to renew the lease, the building with a huge value to you as a landowner is back. Then the tenant will lose a lot more business and build, if not his obligation. So think twice before not to send checks for rent. In this sense it is an investment unsure of a restaurant that you have both the land and improvements. In addition to the lower eyelidRate are the main disadvantages of leasehold

There are no tax write-offs, such as the IRS does not lose their value of the land. So that tax liabilities are higher. The tenant, on the other side can absorb 100% of the value of property and equipment to offset the profits of the business. If the property by fire or natural disasters such as tornadoes damaged, some leases allow tenants to collect insurance benefits and to terminate the lease without modification of theProperties in the last years of the lease. Unfortunately, this author is not aware that the insurance companies to sell fire insurance to you, why would not own the building. So the risk is considerable, as you may end up holding an empty bag very expensive, with no income and a huge property tax bill. Some of the leases of tenants do not allow all structural repairs such as roofing, in recent years of the lease. This may require investors to spend money for deferredMaintenance and consequently will have negative effects on cash flow property.

2009 Complete Guide For Restaurant Real Estate Investments

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