GOV'T CHANGES RULES FOR MULTI-FAMILY LOANS
Ginnie Mae has announced new risk management changes to further strengthen its operations and to ensure that its program requirements better align with the rapidly changing housing finance market. The corporation is implementing new net worth, capital, and liquid assets requirements for participants in its Multifamily Mortgage-Backed Securities (MBS) program. Net worth requirements are core tools used by regulators, lenders, insurers, and others to manage counterparty risk. The policy changes announced today will include the following...
Build Your Legacy
Victor Lloyd Smith
Millennium Lyon Asset Management
Web: www.mlgcap.com
Legacy Capital: The Driving Force of the American Dream
Get your copy: Amazon.com, Barnes & Noble, Audio Series, e-Book
PROFIT FIRST ACCOUNTING FOR YOUR STARTUP BUSINESS
Nevermind the GAAP: Take Profits
Generally accepted accounting principles are for Internal Revenue Service auditors, not for entrepreneurs, Mike Michalowicz writes. GAAP teaches you to start with revenue, subtract expenses and then pay yourself out of whatever happens to be left. Instead of working your way down to profit, Michalowicz suggests putting it at the top of your income statement, just under revenue. By putting expenses in last place, you're forced to do more with less. "Since your revenue will first go toward profit and then your salary, there will be less to spend on expenses," he writes.
I propose a new type of accounting: Profit First Accounting (PFA). The difference between GAAP and PFA is simple: Deduct profit first, from the top down. On a PFA income statement, the first line item is revenue, followed by a profit deduction, then your salary, followed by cost of goods and all other expenses...
The Wall Street Journal(12/6)
http://mobile2.wsj.com/device/article.php?CALL_URL=http://online.wsj.com/article/SB10001424052748703989004575653102675023416.html?
Victor Lloyd Smith
vsmith@mlgcap.com
917-653-4406
Build Your Legacy
www.LegacyCapitalBook.com
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