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March 18, 2013

The Law and Your Business

Securing Capital

How about using my home equity to get funds?

Lenders compete hard to get home equity loan business, so it pays to shop around—you don't have to use the same lender for the home equity loan as for the first mortgage. The federal Truth in Lending Act requires lenders to give you the annual percentage rate of interest (APR) up front, which in theory enables you to compare apples to apples. Be aware, though, that you may not routinely get the final APR (which may include points and other charges) until the closing, when it's too late to change lenders. When shopping for a loan, don't rely only on the advertised rate—not necessarily the same as the APR. Ask lenders up front about application fees, closing costs, fees for title searches and appraisals and the like. Some of these may be negotiable.

>>What are some ways of securing capital?
>>How about using my home equity to get funds?
>>What are the legal considerations in getting loans from family and friends?
>>What is a promissory note?
>>What are some legal considerations in loans from financial institutions?
>>What about my spouse’s assets?
>>Are government loans available?
>>What about help for women and minorities?
>>What are the legal considerations in getting contributions from others?
>>Legally, what’s the difference between active investors and passive investors?
>>What if I want to have “passive" co-owners?

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