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Do you like to look behind the numbers? Do you like to analyze market trends? Do you get an adrenaline rush when a stock takes off? If so, then money management may be the career for you. Money managers hold stocks and bonds for institutional clients and are on the buy side of Wall Street. Some money managers use the latest sophisticated quantitative techniques while others do very well using simple intuition.

Each investment manager has their own unique style. The key to being successful is to have discipline, be broad-minded and be willing to admit defeat if an investment goes against you. Many money managers buy and hold fixed income securities including mortgaged-backs, corporate bonds, munis, agency securities and asset-backed securities. Others focus on equities, including small stocks, large caps and emerging market stocks. Because of its explosive growth in the last decade, we treat the opportunity to take a career in a hedge fund separately.

Unfortunately, it is hard to get started in investment management. It is particularly hard to start working for the best money managers or a top mutual fund. Good places to start are in bank trust departments, state and local pension funds and in insurance companies. Many people cross over into money management after getting years of experience on the sell side of the business in investment banks. Perhaps one of the best ways to break in is on the marketing side.

If you have the social skills and intelligence required to market money management services, there will be many companies interested in hiring you. To get started today, be sure to study portfolio theory, learn fixed income investments, take the CFA exam and, above all, learn the industry. And then, with a little luck, you will enjoy one of the most personally rewarding careers in the world of business: Money Management.

A career in corporate finance means you would work for a company to help it find money to run the business, grow the business, make acquistions, plan for its financial future and manage any cash on hand. You might work for a large multinational company or a smaller player with high growth prospects. Responsibility can come fast and your problem-solving skills will get put to work quickly in corporate finance jobs.

The job of the financial officer is to create value for a company. For example, the finance group at American Electric Power

of Columbus, Ohio has four main areas of concentration: liquidity, flexibility, compliance with laws and regulatory support. AEP’s Finance Department carries out four main activities to meet its objectives: 1) designing, implementing and monitoring financial policies, 2) planning and executing the financing program, 3) managing cash resources, and 4) interfacing with the financial community and investors.

Jobs in corporate finance are also relatively stable. Performance in these jobs counts, but your job is not going to depend on whether you’re selling enough this week or getting good deals finished this quarter. Rather the key to performing well in corporate finance is to work with a long view of what going to make your company successful. Many would argue that corporate finance jobs are the most desirable in the entire field of finance.

Some of the benefits of working in corporate finance are:

1. You generally work in teams which help you work with people
2. It’s alot of fun to tackle business problems that really matter
3. You’ll have many opportunities to travel and meet people and
4. The pay in corporate finance is generally quite good.

Commercial banks are in the business of providing banking services to individuals, small businesses and large organizations. While the banking sector has been consolidating, it is worth noting that far more people have jobs in the commercial banking sector than any other part of the financial services industry. Jobs in banking can be exciting and offer excellent opportunities to learn about business, interact with people and build up a clientele.

Today’s commercial banks are more diverse than ever. You’ll find a tremendous range of opportunities in commercial banking, starting at the branch level where you might start out as a teller to a wide variety of other services such as leasing, credit card banking, international finance and trade credit.

If you are well-prepared and enthusiastic about entering the field, you are likely to find a wide variety of commercial banking jobs open to you. Carefully read through the material below as you decide whether you’ve got what it takes to pursue a career in commercial banking.

By kiplinger’s magazine

Five years ago, Greg Downing looked into online banking but balked at his bank’s $5 monthly fee to pay bills online. This year, Downing read about a Web-only bank that charged a much lower price: free.

«I gave NetBank a chance, and I’ve never looked back,» says Downing, 33, a project manager for Acambis, which makes smallpox vaccine. Does he miss his old brick-and-mortar bank? «Only when I have a jar of coins to deposit,» he says.

As Downing discovered after he opened his NetBank account, paying bills with a mouse click is only one labor-saving feature offered by online banks. Other attributes include viewing images of canceled checks, transferring money to accounts at other banks and brokerages, and receiving e-mail alerts if, say, your balance runs low. And in the past few years, some online banks have cut the time it takes for electronic payments to clear from five business days to two.

Downing went with an online-only bank. But your best bet could be the same institutions you see every day. Brick-and-mortar bankers are also the largest online players, with the resources to bring a wide range of services to their natural customer base. (The two largest are Wells Fargo, with 6.8 million online-banking customers, and Bank of America, with 13.6 million.)

Best of both worlds

Watchfire GómezPro, an Internet research firm, ranked the top 10 online banks based on the features that consumers find most important. Competition is stiff, and that’s caused a rough parity in services. All of the banks provide the key services that customers want most, including guarantees against computer fraud and late bill payments, according to Watchfire. Among the top five, in particular, the differences are minor.

Wells Fargo is ranked first, in part because of its Quicken-style tools for viewing your spending habits. Then again, second-place Citibank is better than Wells or third-place Bank of America at «money movement» — the ability to funnel funds to another account, user or bank. Fourth-place E*Trade Bank provides excellent alerts (such as letting you know when your balance is low), but it doesn’t allow you to stop payments on checks. Reverse that for fifth-place Huntington: no low-balance alerts, but it will let you stop payments. E*Trade also does an excellent job integrating its online banking and brokerage services.

Internet-only banks are giving the big bank sites a run for their money and adding customers quickly. Because of low overhead, they often pay better rates on savings accounts. For example, a Citibank money-market account with $15,000 recently paid 1.5%. A similar account at First Internet Bank of Indiana paid 3.04%.

And an online-only bank can offer some personal touches. Adam Megacz, a dreadlocked, 26-year-old University of California at Berkeley graduate student, likes First Internet Bank’s old-fashioned customer service. «You really do get the small-bank feel when you call them,» he says. Megacz, who has been a First Internet Bank customer for five years, often transfers funds electronically through the banking industry’s Automated Clearing House network. «I can call up the bank and talk to Mark, the ACH guy,» he says.

One drawback to online-only banks is making deposits. For payroll checks, this usually isn’t an issue, because most customers use direct deposit. But if direct deposit isn’t available, you’ll have to mail deposits to the bank (envelopes are provided), use an ATM that accepts deposits for your bank or transfer funds from an account at another bank.

Of course, mailing a check will increase — by days — the time it takes for your check to clear. And, says Online Banking Report publisher Jim Bruene, «People don’t like to make deposits at an ATM,» particularly one that isn’t owned by their bank. When Megacz was living paycheck-to-paycheck two years ago, he’d send checks to First Internet Bank via FedEx or express mail, which, he says, can be a pain.

Another virtual issue: Internet-bank users may pay steep ATM fees for cash withdrawals. That’s true particularly if your financial institution does not have teller machines in your area. First Internet Bank eases the pain by refunding up to $6 in ATM fees each month for its interest-checking customers. Although NetBank doesn’t refund fees, its 8,000 machines across the U.S. are free to its customers, who can locate the ATMs at the bank’s Web site. Downing used the locater to find machines near his home in Canton, Mass.

What about safety?

The main issue consumers have with online banking is security. Banks are working to persuade customers that online banking actually adds to your financial security, says Chris Musto, vice-president of research for Watchfire GómezPro. That’s not an easy sell to consumers who see the elimination of paper statements and returned checks as a savings for the banks, with no benefit for them.

But Musto says eliminating paper is itself a safeguard. Statements can’t be lifted from your mailbox or plucked from your trash — and that’s just one way online banking offers increased security. For example, some online banks offer a service that presents your bills on the banking site. By using this feature, you can eliminate credit-card and phone statements sitting exposed in your mailbox. And e-mail alerts from some banks — such as Wells Fargo and Citibank — can notify you when large sums have been withdrawn.

You can also check your statement online anytime you wish. Online visits, Musto says, «reduce the impact of an act of fraud.» For example, if your credit card or checks were stolen, you might not discover that until your next paper statement arrived in the mail. With online banking, however, you can find unusual account activity much sooner (people check their accounts online five times a month, on average).

Features to look for

Online banking is evolving rapidly. To make sure you get a top performer, look for the following features:

No fees. About 80% of online bill-pay accounts in the U.S. are free, according to Online Banking Report’s Bruene, and «about half» of those are customers of Bank of America. Many banks offer free bill pay only in limited cases. Wells Fargo, for example, charges $7 per month if your average monthly account balance falls below $5,000. And after three months of inactivity, NetBank levies a $5 monthly fee on accounts of less than $3,000. EverBank charges $5 per month if your monthly balance is less than $1,500. First Internet Bank customers with free checking pay $4.95 a month for online bill pay, but customers with interest checking accounts (who pay $10 a month) get it free, as long as their balance stays above $500.

Good Web tools. Online banking should be simple and quick. A bank’s site should be a snap to learn and easy to navigate, and should provide essential features, such as images of your cashed checks and tools for budgeting. Bank sites have come a long way in recent years, and you don’t have to pick a big bank to get a good online experience. The best sites also provide recent transaction reports (including payments, transfers and deposits), and warn you of potential security threats, such as e-mails from phishers.

A good bank site provides scanned images — both the front and back sides — of your canceled checks. Most major banks offer this service, including every bank on the top-10 list.

Why are check images important? Let’s say you forget to record check #1454 in your register. You go to your bank’s site and read your account summary, which lists only the check number and the amount. Who’s the payee? To find out, view the check’s image.

And a good site also archives several months’ worth of account statements and check images. Archives vary considerably. For instance, Bank of America archives 18 months of statements but only 60 business days (about three months) of check images. EverBank, on the other hand, provides 15 months of statements and 13 months of images.

Fund transfers. Transferring money to your accounts at other banks and brokerages is a big convenience. Some banks let you set up automatic deductions to make regular payments to, say, an IRA at a mutual fund company.

Account aggregation. This is the ability to manage multiple accounts, including those from other banks, at your bank’s Web site. Of the top 10 online banks, only Citibank and Wells Fargo have this feature.

E-mail alerts and reminders. You’ll want to be notified if there’s excessive activity on your credit card, if someone tries to access your account with an incorrect password or even when you’re low on checks.

Budgeting. Wells Fargo’s «My Spending Report» organizes your expenditures into categories, including groceries, restaurants and lodging. It’s a great way to see how and where you spend your money. Citibank and Bank of America have similar features.

A ‘hard money loan’ is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.

Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property.
Typically, the maximum loan to value ratio is 65–70%. That is, if the property is worth $100,000, the lender would advance $65,000–70,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.

Loan structure

A hard money loan is a species of real estate loan collateralized against the quick-sale value of the property for which the loan is made. Most lenders fund in the first lien position, meaning that in the event of a default (finance)|default, they are the first creditor to receive remuneration. Occasionally, a lender will subordinate to another first lien position loan; this loan is known as a mezzanine loan or second lien.

Hard money lenders structure loans based on a percentage of the quick-sale value of the subject property. This is called the »’loan-to-value»’ or »’LTV»’ ratio and typically hovers between 60 and 70% of the market value of the property. For the purpose of determining an LTV, the word «value» is defined as «today’s purchase price.» This is the amount a lender could reasonably expect to realize from the sale of the property in the event that the loan defaults and the property must be sold in a one- to four-month timeframe. This value differs from a market value appraisal, which assumes an arms-length transaction in which neither buyer nor seller is acting under duress.

Below is an example of how a commercial real estate purchase might be structured by a hard money lender:

65% Hard money (Conforming loan)
20% Borrower equity (cash or additional collateralized real estate)
15% Seller [[carryback loan]] or other subordinated (mezzanine) loan

History

Hard Money is a term that is used almost exclusively in the United States and Canada where these types of loans are most common. In commercial real estate, hard money developed as an alternative «last resort» for property owners seeking capital against the value of their holdings. The industry began in the late 1950s when the credit industry in the US underwent drastic changes .

The hard money industry suffered severe setbacks during the real estate crashes of the early 1980s and early 1990s due to lenders overestimating and funding properties at well over market value. Since that time, lower LTV rates have been the norm for hard money lenders seeking to protect themselves against the market’s volatility. Today, high interest rates are the mark of hard money loans as a way to compensate lenders for the considerable risk that they undertake.

Cross collateralizing a hard money loan

In some cases, the low loan-to-values do not facilitate a loan sufficient to pay off the existing mortgage lender, in order for the hard money lender to be in first lien position. Because a security interest in the property is the basis of making a hard money loan, the lender usually always requires first lien position of the property. As an alternative to a potential shortage of equity beneath the minimum lender Loan To Value guidelines, many hard money lender programs will allow a «Cross Lien» on another of the borrowers properties. The cross collateralization of more than one property on a hard money loan transaction, is also referred to as a «blanket mortgage». Not all homeowners have additional property to cross collateralize. Cross collateralizing or blanket loans are more frequently used with investors on Commercial Hard Money Loan programs.

Commercial hard money

Commercial hard money is similar to traditional hard money, but may sometimes be more expensive as the risk is higher on investment property or non-owner occupied properties. Commercial Hard Money Loans may not be subject to the same consumer loan safeguards as a residential mortgage may be in the state the mortgage is issued. Commercial hard money loans are often short term and therefore interchangeably referred to as Bridge Loan|bridge loans or bridge financing.

A broker is a party that mediates between a buyer and a sales|seller. A broker who also acts as a seller or as a buyer becomes a :wikt:principal|principal party to the deal. Distinguish Agent (law)|agent: one who acts on behalf of a principal. A «brokerage» or a «brokerage firm» is a business that acts as a broker. A Stock broker|brokerage firm is a business that specializes in trading stocks. A sales person working for a securities or commodity brokerage firm is popularly (but incorrectly) called a «broker.» A broker in that context is, strictly speaking, an exchange member who is actually executing the purchase or sales order in the ‘pit’, on the exchange, as a service to the client of the firm for which that salesman works.

Establishing or repairing bad credit can take some time and you must be patient. It may take up to a year if not more to fix or repair credit from bad to good. It all depends on how bad your current credit situation is. On the upside, your credit score will improve monthly as you pay your monthly payments on time, removing past due amounts and collection accounts. As you read through our free bad credit repair guide, you will obtain a good understanding of the steps and time it will take you to build and repair your credit score and keep it there, so you will be able to take advantage of the benefits of having a great credit rating.

Getting credit to repair bad credit or establish credit can be a difficult task when most lenders are not willing to give you a second chance or let you prove yourself credit worthy. After long hours of research, we have discovered proven tips and advice on the different tactics to build and repair credit scores. Even with bankruptcy, we can help you get on the road of having excellent credit and allowing you to enjoy the benefits of low interest rates and the buying power to succeed in life. In this free consumer guide to bad credit repair, you will find out which lenders will approve you for credit cards, car loans for a new or used vehicle, mortgage loans, unsecured personal loans, and even a checking account.

Question: Two months ago Spencer, a good friend from college who now makes lots of money on Wall Street, lent me $6,000, interest-free, so I could pay off my credit cards, repay some debts and generally get back on my feet financially. The loan has been a great help, and I am paying Spencer back at the rate of $250 a month.

In the meantime, he has asked a big favor of me, namely to arrange an «information interview» for his new girlfriend with an editor at the magazine where I recently got a job in the art department. While I’ve met a couple of the editors, I don’t really know them (and vice versa), and I’d prefer not to ask for this sort of favor – something I wouldn’t hesitate to tell Spencer if I didn’t owe him so much money. Does accepting the loan obligate me to do this for him? I feel like he’s taking advantage of the fact that I owe him money.

Answer: The great thing about borrowing money from a bank is that they write down everything they expect of you. Friends are a different story. In this case, you’ve put yourself in a position where Spencer is not wrong to expect a big favor from you, since that’s what you accepted from him.

What he can’t expect, however, is for you to compromise yourself. Had he asked you to be a reference for a woman you scarcely know, he’d be crossing that line. But asking you to play a chip with your colleague is not unreasonable. After all, he’s not requesting that you ask an editor to hire his girlfriend, just to talk to her. You owe him this favor, even if you’d prefer not to do it.

By Eilene Zimmerman, CNNMoney.com contributing writer

When hunting for cash, desperate small business owners may find themselves sucked into buying books and software packages promising «Billions in Free Grants!» from Web sites with names like NeverPayItBack.com, or hiring consultants who promise to find them gads of money. All they’re likely to get, though, are empty promises.

Grants are rare, but the information you need to find and apply for legitimate ones is publicly available and free. For qualifying businesses, there really are opportunities to land free money from state, county and city governments, as well as private foundations and corporations.

Technology startups traditionally have the best chance of getting grant funding, often through the federal government’s Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs. These programs are lucrative, awarding more than $2 billion each year, but both require a tight match with exacting requirements.

For most companies, a better fit will be the grants many state and city governments offer for small, tech-focused businesses. In Columbus, Ohio, TechColumbus offers TechGenesis grants of up to $50,000 to allow entrepreneurs to test their ideas and see if they are business-worthy. The Ben Franklin Partnership in Philadelphia and the Maine Technology Institute in Gardiner, Maine, are two more of the dozens of organizations that invest in local tech companies with growth potential.

Finding grant money for non-tech businesses is a little tougher. The first step: Figure out if you qualify for any special small business certifications, such as a minority-owned, disadvantaged, woman-owned or veteran-owned business. Federal and state governments sometimes give priority for grants to these types of business owners.

Then look at your local government Web sites — for your city, county and state — and find the economic development agency or area equivalent. Many of these agencies offer government-sponsored grants to attract new businesses or help existing firms expand, train workers, or become more environmentally friendly. For instance, the Illinois Department of Commerce and Economic Opportunity offers matching grants to businesses that want to expand and modernize their recycling programs, while the Central Oregon Intergovernmental Council gives workforce training grants to businesses in several Oregon counties.

Next, sign up at Grants.gov to receive information about specific kinds of federal grants. Few businesses will directly qualify, but with some creativity, you can find ways to tap the cash flow, says Kate Lister, author of Finding Money –The Small Business Guide to Financing.

«Let’s say you own a small plumbing company,» Lister says, «and at the federal level there is a grant for capital improvements for which only schools can apply. Sign up to be notified of anything that happens with that grant and post your own note to it that says, ‘I’d like to be a subcontractor on this.’ Or go to the contracting officer listed and say, ‘Here’s what I can offer.’ Since that contracting officer is the person who will notify the winner of their grant award, he can also say to the school: ‘Hey, I’ve got a contractor you might want to try.’ And even if this isn’t the right grant for you, there might be something else down the line, so connecting with these contracting officers is really all about networking.»

Another avenue for grant money is workforce training. Most states have grants, often funded through the unemployment insurance tax system, says Michael Godley, principal at Workforce Development, a consultancy in Boston that focuses on helping business owners tap into workforce training funds nationwide. A good way to find these grants is by simply Googling «workforce training funds» within your state, or contacting local community colleges — they often administer the funds — or a workforce investment board.

The legislature in Massachusetts, for example, just funded its workforce training fund at $10 million. That’s down from the previous year, when it got $21 million. But as Godley points out: «Ten million is still a lot of money. And that will go to a few hundred companies.»

Small manufacturers can find grants for upgrading facilities or updating processes by looking at their state’s Manufacturing Extension Partnerships. Nearly every state has one, says Bob Kill, president of Enterprise Minnesota, which provides Minnesota-based manufacturing companies with matching grants for process improvement or staff development. In New York, Empire State Development offers capital grants of up to $1 million to manufacturers with as few as 50 employees, through its manufacturing assistance program.

A good source for foundation grants is the Foundation Center, which offers basic information on U.S.-based foundations, grant-making public charities and corporate giving programs. Most of these sorts of grants go to non-profits, but one way small businesses can broaden their suitability for grants is to create a not-for-profit offshoot to their business. The not-for-profit side usually offers different or less comprehensive products and services than the for-profit, says Dave Lavinsky, president of Growthink in New York City, a consultancy that assists startups in developing business plans and raising capital. A for-profit children’s theatre company, for example, could have a non-profit arm teaching after-school drama programs.

No matter what grant you apply for, remember that the cash is usually earmarked for funding specific projects or products — not entire companies. If you want free money, be prepared to adapt. «A lot of times business owners will modify their business based on funding opportunities,» Lavinsky notes.