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Pharmaceutical Packaging Equipment

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Most major pharmaceutical manufacturers around the world prefer to produce their life-saving, disease-defeating, condition-conquering products using only the best available equipment. When you consider this fact, it is no wonder why so many major ph

armaceutical companies around the world look to EquipNet’s MarketPlace to source the premium equipment they need, for a fraction of the price of buying new. For any pharmaceutical manufacturer out there looking to purchase top-notch packaging equipment for their facility, check out some of the premium pharmaceutical packaging equipment available now on the EquipNet MarketPlace:

Unused IWK – Oystar TFS 80 Tube Filling Line with SC5 Cartoner

Inova Syringe Filling Line

ZED Vial and Syringe Kitting – Packaging Line

Uhlmann UPS 4ET Blister Machine with Uhlmann C300 Cartoner

If you’re searching for a particular piece of packaging equipment, please contact EquipNet at (781) 821-3482 or via email at Sales@EquipNet.com.

 

Machinery and Equipment Appraisals in Buy/Sell Agreements

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A buy/sell agreement, or buyout agreement, is essentially a pre-nup for business partners, and if you’re a co-owner of a business that doesn’t have one, you should. A buyout agreement states how the company will buy out a co-owner who leaves the company for any number of reasons, including retirement, a sale, death, or even termination. This legal document protects both the partner who’s leaving and the partner who’s staying and taking over the departing partner’s share of the business. A buy/sell agreement should be written as close to the start of the business as possible, because as the company’s value increases, so does the risk associated with not having one.  

A properly written buy/sell agreement will include the financial terms of a buyout, state who will oversee the buyout, and explain how ownership will be transferred. It will also state how the partners will determine the value of the business at the time of the buyout.

A company’s value comprises a whole host of factors, including intangibles, like intellectual property or expected future performance, and tangibles, like office or lab equipment or heavy machinery. This can make it difficult for a business owner to ascertain the true value of his or her business without some help. That’s why it’s a good idea to write into your agreement that you’ll hire an objective third-party appraiser to determine the value of your business and all of its property. By hiring an appraiser, you’ll get a value for your business that will be fair and accurate, and will stand up to scrutiny in a court of law.    

Another good practice is to hire someone to perform an initial business valuation, including an appraisal of all machinery and equipment, before the buy/sell agreement is written. This will give the partners a deeper understanding of the valuation process and may help them write their agreement.   Check out The Asset Accuracy Resource Center for more information about appraisal and valuation services provided by EquipNet.

A couple of weeks ago, we announced our acquisition of Present Value LLC, a worldwide appraisal and advisory company. Because we’ve significantly expanded our appraisal services with this acquisition, expect us to write more frequently about machinery and equipment appraisal topics in our blog. If there’s a particular topic you’d like to see in this forum, or if you’d like to learn more about our expanded appraisal services, contact us today!

Pharmaceutical Equipment Removal in Manati, Puerto Rico

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Did you know EquipNet provides rigging and removal services? Did you know EquipNet has clients in Latin America? Check out this video of the recent removal of a Collette Granulator from a pharmaceutical manufacturing facility in Manati, Puerto Rico.

Pharmaceutical Equipment Removal in Manati, Puerto Rico


If you\’d like to speak to a member of the EquipNet team about your rigging and removal project, please call (781) 821-3482 or email Sales@EquipNet.com

 

Bottling and Capping Equipment

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Did you know that, on this day in 1892, William Painter patented the crown-cork bottle cap?  Did you also know that EquipNet sells premium, pre-owned bottling and capping equipment at a fraction of the cost of buying it new?

Here\’s just a sampling of the bottling and capping equipment listings available on the EquipNet MarketPlace:

Serac 30 Head Filling And Capping System For 100ML Bottle
 
30 Head US Bottler's Capper Model MC30

 

Krones and KHS 450 Bottle per Minute PET Packaging Lineac 30 Head Filling And Capping System For 100ML Bottle
 
Serac 30 Head Filling And Capping System For 100ML Bottle

If you are searching for a particular piece of bottling, capping, or other packaging equipment, please contact EquipNet at (781) 821-3482 or via email at Sales@EquipNet.com.

Solid Dose Equipment for Sale

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Forest City is a real estate company that specializes in renting lab spaces.  A few years ago, the company purchased a Pfizer plant in Illinois and converted the facility to multiple lab spaces.  In an effort to liquidate a number of surplus pieces of lightly used solid dose processing equipment, the pieces have now been listed for sale on the EquipNet Marketplace.  Although the equipment is just over 10 years old, it is in pristine condition; some pieces having as little as six hours of run time!

Showcase pieces include:

  • IMA Precisa 120 Automatic Capsule Checkweigher Listing #315293
       
    Want to see more?  Check out the project video!

For a complete list of Forest City items, please visit the company’s MarketPlace site.  To schedule an inspection or to get more information about this project, please contact an EquipNet Sales Representative today at (781) 821-3482 or via email at Sales@EquipNet.com. If you are interested in these items, you should hurry!  This is beautiful equipment and it’s going fast!

President Obama’s Refinance Plan

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President Obama delivered his state of the union address this week. During his speech, he announced his intention to send a plan to Congress that will allow all homeowners who are current on their mortgages to refinance. The Wall Street Journal today published “Six Questions on Obama’s Mortgage Refinance Proposal” to further explain his plans.

There’s been a plan in place for years that allows homeowners with Freddie and Fannie backed mortgages to refinance. The difference with Obama’s new plan is that it will extend to other homeowners as well. It hasn’t been made clear what loans will be eligible, but it is known that Congress will have to pass legislation to put this plan into place. Given that, some experts aren’t optimistic that this plan will come to fruition.

It is likely that the plan will use the Federal Housing Administration to allow any homeowner to refinance even if they’re underwater on their home or their income has fallen since their last time refinancing.

This plan is not an automatic refinancing, as many experts have called for. Homeowners who want to refinance through this plan will have to pay upfront fees and fill out all of the necessary paperwork before the refinancing can go through.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Crating and Shipping Valuable Equipment

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A pharmaceutical company based in Germany needed to protect a $50,000 piece of equipment while shipping it overseas. The company relied on the expertise and efforts of EquipNet’s operations and logistics personnel and the valuable piece of equipment  made it there, safe and sound.

Here’s the story.  The customer finalized the purchase of an unused Glatt GC1500 tablet coater in late December 2011. To continue its work as a leading developer and manufacturer of medicines for respiratory, cardiovascular and digestive diseases, the company needed to ship the tablet coater from the seller in the US to its facility overseas.

Just days after contacting the EquipNet Logistics and Operations Team, the company received a highly competitive quote that took advantage of our relationship with a reputable international shipping vendor. With the numbers agreed upon, two EquipNet packaging professionals were assigned to the project for two full workdays to construct a custom crate large enough and strong enough to protect this Glatt GC1500, which stood 12 feet high, 15 feet wide, and weighed in at a whopping 5 tons.

To get an idea of the process,  see the photo-timeline below!

Don’t Shoot the Messenger: Appraisers Not at Fault for Low Appraisals

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The text below is taken from a one-page handout from the Appraisal Institute responding to the claim that so-called “low” appraisals are allegedly “killing” home sales.

Many in the real estate industry have tried to blame the market’s distressed condition on appraisers, saying that appraisers are at fault for producing opinions of value that don’t match a home’s listing or contract price, delaying a recovery in the housing market. In fact, appraisers are undertaking the same thorough research and thoughtful analysis that they always have in order to continue producing reliable, credible opinions of value.

Appraisals aren’t intended to confirm a home’s sales price.

Appraisals completed for mortgage transactions are used to assist lenders in making lending decisions. Buyers and sellers often have emotional value attached to a home or are unaware of the market. They shouldn’t assume an appraisal is somehow “wrong” if it doesn’t match the listing or contract price. There’s no reason to assume the contract price is the “correct” price simply because it’s higher than the appraisal.

Appraisers don’t set the real estate market; they reflect

what’s happening in the market.

Think of the appraiser as a mirror, reflecting the market – and the market is depressed as home prices have fallen far below values of a few years ago. Reliable, credible opinions of value help stabilize real estate loans and investments, promoting socially desirable real estate development.

For the full copy of the handout, click here.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading

Fighting the Low-Ball Appraisal

High-Value Home Appraisals: 10 Tips

Improve the Value of Your Home

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Choosing the Right Auction for Your Project

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Selling surplus assets or closing a facility can be a confusing experience. EquipNet has created tailored auction services to help assist clients with their varying selling needs.  Whether you have tight time constraints, specialized markets, or something else, one of the below auction services can work for you! 

Sealed Bid Offering:

  • What is it? A sealed bid offering is a method of sale whereby confidential bids are submitted to be opened at a predetermined place and time. This is not technically a true auction in that it does not allow for reaction  method is most useful when a company is looking to sell an entire facility or equipment that has a low number of potential bidders
  • How does it work? The inner workings of a sealed bid vary from auction to auction.  If the facility houses many items, EquipNet lots them in groups (ex 100 items could be lotted in groups of 10).  Bidders are then able to choose whether to bid on an entire facility or on a single lot.
  • Why is this Beneficial?  From a buyer’s perspective, a sealed bid offers bidders the ability to bid lower than market price without other bidders driving prices up.  From a seller’s perspective, sealed bids allow for bidders to place bids that they cannot return to and adjust.  Additionally, when sealed bids are successful, the client is able to sell their assets more quickly than a traditional auction.  This is because with only a handful of buyers, logistics and accounting issues are seriously alleviated.

 Live & Webcast Auction

  • What is it? This is when EquipNet manages the sale of assets at a live auction with online bidders participating remotely via a simultaneous Webcast
  • When it is most useful? This method is most useful when a company is looking to liquidate an entire facility quickly.  It is also extremely useful when there are many items that can be “picked up” by local area business.
  • How does it work? Buyers can bid online and in person via the webcast on a variety of different equipment.

Online Smart Auction

  • What is it? Online Smart Auctions are auctions conducted entirely on the web utilizing a “high-bidder-wins” competitive bidding process to sell pre-owned equipment. The Online Auctions are hosted on the EquipNet website using our own proprietary auction software.
  • When it is most useful? This method is most useful for sellers who are looking to sell their unsold Marketplace merchandise.  Online auctions are also a good choice for sellers who need to meet short deadlines.
  • How does it work? Items are usually listed for sale beginning at 9 AM on the day of the auction and commence at 4PM.  Sellers are able to place reserves on high valued items ensuring that they are getting fair market price for valuable pieces of equipment.

In addition to these individual auction services, EquipNet’s project managers can create specialized project plans that combine the above elements with other services in our surplus asset management toolbox.  To find out if these or any other EquipNet service is right for your company, please call the sales team at 781.821.3482 or email sales@equipnet.com for more information.  Want to see how our auctions work?  Click here to view our calendar of current and upcoming auctions.

EquipNet Expands Equipment Appraisal Services with Acquistion of Present Value LLC

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EquipNet has acquired Present Value LLC–a worldwide appraisal and advisory company. Present Value co-founders, Christopher Kinzie and Christopher Spinelli, will join the EquipNet team at the company headquarters in Canton, MA and Present Value’s international roster of certified appraisers will now fall under the auspices of EquipNet.

Kinzie and Spinelli founded Present Value in 2006. They are both experienced appraisers themselves, certified through the National Equipment & Business Builders Institute (NEBBI) as Certified Machinery & Equipment Appraisers (CMEA). Additionally, they are both certified through the International Society of Business Analysts as Certified Senior Business Analysts (CSBA).

EquipNet’s President and Chief Operating Officer, Roger Gallo, is excited about the opportunities the merger presents. “Acquiring Present Value

allows EquipNet to provide our clients with a wider array of appraisal services,” explains Gallo.

“Not only will we have a global network of on-staff equipment appraisers with expertise in all the industries we serve — pharmaceutical, biotech, chemical, and consumer processing and packaging,” says Gallo, “But in the future, we’ll be able to offer our clients business valuations and real estate appraisal services, as well.”

With the merger, Kinzie has become EquipNet’s new Director of Appraisal Services. Spinelli will head up EquipNet’s Category Management Department, bringing his knowledge and understanding of appraisals to enhance EquipNet’s specification gathering and valuation methodology.

Roger Gallo and Christopher Kinzie recently sat down to discuss the acquisition and what it will mean to EquipNet and Present Value customers. Check out the video. .

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EquipNet Expands Equipment Appraisal Services

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EquipNet has acquired Present Value LLC–a worldwide appraisal and advisory company. Present Value co-founders, Christopher Kinzie and Christopher Spinelli, will join the EquipNet team at the company headquarters in Canton, MA and Present Value’s international roster of certified appraisers will now fall under the auspices of EquipNet.
 
Kinzie and Spinelli founded Present Value in 2006. They are both experienced appraisers themselves, certified through the National Equipment & Business Builders Institute (NEBBI) as Certified Machinery & Equipment Appraisers (CMEA). Additionally, they are both certified through the International Society of Business Analysts as Certified Senior Business Analysts (CSBA).
 
EquipNet’s President and Chief Operating Officer, Roger Gallo, is excited about the opportunities the merger presents.  “Acquiring Present Value allows EquipNet to provide our clients with a wider array of appraisal services,” explains Gallo.
 
“Not only will we have a global network of on-staff equipment appraisers with expertise in all the industries we serve—pharmaceutical, biotech, chemical, and consumer processing and packaging,” says Gallo, “But in the future, we’ll be able to offer our clients business valuations and real estate appraisal services, as well.”
 
With the merger, Kinzie has become EquipNet’s new Director of Appraisal Services. Spinelli will head up EquipNet’s Category Management Department, bringing his knowledge and understanding of appraisals to enhance EquipNet’s specification gathering and valuation methodology.
 
Roger Gallo and Christopher Kinzie recently sat down to discuss the acquisition and what it will mean to EquipNet and Present Value customers. Check out the video.
 

Can A Street Name Affect Property Values?

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“The Appraisal” column in The New York Times had an interesting article in it today titled, “On a Numbered Street, Apartment Owners Yearn for More Cachet.” The article describes an up-scale condominium building on 52nd Street in Manhattan. Several of the condo owners in the building feel that their street name doesn’t accurately portray the luxury to be found in the building, and believe that changing the name of their section of the street to something a little more elegant will raise the value of all of the condos.   

Beekman Place and Sutton Place are tiny streets in Manhattan that have elegant and ornate residential buildings, and saying you live on one of those well-known streets comes with a certain connotation. Residents of the co-op on 52nd Street want to give themselves the same sort of bragging rights. 

The question is, will a street name change actually improve the value of the property? Some experts say absolutely not, but others believe that a name change could give

property values a small boost. Companies that track sale prices show that similar condos in similar buildings on nearby, more elegantly named, streets sell at a slightly higher price than the condos on 52nd Street. 

Stories like this one serve as a reminder that a great deal of factors figure into the value of a property. That’s why it’s so important to work with a reputable, experienced appraiser who can help you determine the value of your home.   

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today! 

By: Present Value

Additional Reading:

High-Value Home Appraisals: 10 Tips

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Auction of IV Medical Device Production & Packaging Equipment!

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On January 18, EquipNet will host an online auction featuring Intravenous Medical Device Production & Packaging Equipment. This auction comes as a result of a complete facility closure in Sherbrooke, Quebec. This event will begin at 9:00 a.m. and is slated to run until 4:00 p.m ET.

Here is a sampling of the featured items from this sale:

PFM Tornado Horizontal Flow Wrapper – PFM 1 listing number 290111. According to the manufacturer’s product guide, The Tornado produces as many as 100 packs per minute with hermetic seals from a flat reel of heat seal wrapping material. It operates at 60 Hertz, 208-220 VOLTS, and requires 90 PSI for proper use. Please note that this piece is calibrated for 11” x 8” packages only. In addition, the Tornado comes equipped with an integrated Greydon flexographic in-line printer (model: 01SBM61), a Willett Inkjet coder, and Allen Bradley PanelView 900 operator interface, and a 10\’ long Dorner infeed belt conveyor x 12″wide. Definitely a must see!

 

 Kobelco KNW Series 50 Horsepower Oil Free Two Stage Rotary Screw Air Compressor, listing number 290132. This piece is air cooled/two stage and is built with a 50 Horsepower drive motor. A small touch screen operator interface and event alarm log helps increase ease of use and safety. The air dryer for the Kobelco is also available for purchase! See listing 290135

 

In addition to these pieces, there are multiples pieces of equipment available for pick-up at the Sherbrooke facility. The list is as follows:

• Lab Gear-Bio Cab, Flow Hoods, Ovens, Vortexers, Shakers, Hot Plates, Lab Dishwasher, Lab Chairs, Refrig, More

• MRO-Small Parts Inventory-motors, components, fasteners, including plastic bids, storage cab, shelving, etc.

• Testing-Thermohygrometer, Digital Force Gage, and Traction Testers

• Facility Support-Lift, Pallet Jacks, and Scissor Lift

• Furniture- Office Furniture- Desk Tables, Chairs, Credenzas, Conference Rooms

• Production Support-3M Sealers, Ink Jet Printers, Stainless Conveyor, Roller Conveyor, Stainless Steel Tubing Trays, Tape Dispensers, SS Tables, Metro Carts & Buggies, Tape Dispensers,etc

To register for this auction or to review a complete lot catalog, please visit the auction page. Inspections are by appointment only, so if you are interested in an item please call our sales department at 781-821-3482 x2162. Please note that all items from this auction must be removed between January 30, 2012 and February 10, 2012.

High Credit Score No Longer a Requirement for Freddie Home Refinances

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Freddie Mac has eliminated the minimum credit score requirement for borrowers seeking a mortgage refinance from their current mortgage lender, provided the borrower has at least 20% equity in their home.

The change goes into effect for any refinances with a settlement date on or after January 5, 2012. Prior to this enactment, Freddie required a credit score of at least a 620 before allowing such a high-equity refinance to take place.

In October, the Federal Housing Finance Agency (FHFA) instructed Fannie Mae and Freddie to remove barriers to allow more borrowers to take advantage of historically low interest rates through the Home Affordable Refinance Program (HARP).

Since rates on most mortgages began 2012 still below 4%, government-sponsored enterprises (

GSEs) like Fannie and Freddie removed upfront fees, limits on loan-to-value ratios, and certain representation and warranty risk on the old loan file.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading

Freddie Mac to Fund Apartment Building Loans

Fannie and Freddie Align

Fannie Mae Plays Hardball

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Will Manufacturing Jobs Be a Key Election Issue?

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In any given election year, it always seems that there is one pervasive issue that comes to the forefront of the debate, time after time. In 2012, while candidates’ positions on a wide variety of issues are constantly scrutinized, the economy continues to dominate discussion. Specifically, citizens want to know how each candidate plans to “create jobs.” Candidates have strived to be able to boast the title of “job creator” while doing everything they can to avoid being branded a “job killer.” While the debate rages on, one sector of the US economy continues to grow and add jobs consistently. That industry, which is only now starting to garner an appropriate amount of attention, is manufacturing.

On January 3, The LA Times reported that in December manufacturing activity in the US increased for the 29th consecutive month. The Times also noted that 23,000 manufacturing jobs were added in December, one of the best months the US has seen for a while. Factories continue to increase production while new factories spring up across the country. Many are hoping that this growth is a signal that manufacturing may soon play the same role it has for the US in the past. The manufacturing industry was once a centerpiece of a booming US economy in parts of the 20th century. Overtime, and for a variety of reasons, the US began to manufacture less and less. But now we have a reason to believe that may change. Even if the manufacturing industry never becomes as big as it once was, this new wave of jobs that is being created is undeniably good news. Many are predicting that this industry will continue to grow into 2012, and in years to come. Here’s to hoping other industries can follow the same path, and that the growth of manufacturing spurs growth all over the United States.

Present Value LLC’s Top Five Posts on the International Financial Reporting Standards (IFRS)

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International Financial Reporting Standards (IFRS) is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board. Conversations are still swirling over whether or not the Securities and Exchange Commission (SEC) will adopt IFRS or some variation of the standards, requiring U.S. companies to begin using the international reporting standards rather than the current Generally Accepted Accounting Principles (GAAP). We pulled together some of the most useful posts regarding the debate over IFRS.

Companies Will Need Time to Adopt International Financial Reporting Standards (IFRS)

SE

C Releases Second Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP: An Analysis of IFRS in Practice

IFRS Loopholes

More Delays on SEC’s Decision on Whether to Adopt IFRS

GAAP and IFRS

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

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Unilever Las Piedras Cotton Swab Manufacturing Equipment

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On January 10, 2012 EquipNet will be a hosting a live and webcast auction in Las Piedras, Puerto Rico. This auction comes as the result of the compelete closure of the Unilever Cotton Swab manufacturing facility. The auction event is set to begin at 10 AM ET and will showcase a number of important cotton swab making equipment items and support equipment including generators, laboratory equipment, truck forklifts, stainless steel and poly tanks, air compressors, chillers, water towers, and machine shop equipment. Here\’s a sneak sneak peek at a few beautiful items that deserve a place in the spotlight:

First is listing number 303042 the Dearco Model CS1000B Duplex Cantilevered Slitter Rewinder With US1300B Unwind in both NEW AND UNUSED condition. According to the manufacturer, this piece features a Shaftless Unwind Stand with dual A.C. flux factor drive package and many other unique features such as automatic offload of finished rolls upon completion of the rewind, a colored touch screen for ease of use, and capabilities that automatically position knives and cores. For complete specifications of this piece please visit the equipment page or view the equipment video.

Another piece of featured equipment in this auction is the 2008 Trützschler Bale Opener System listing number 287133. This system features a production speeds up to 2000 kg/hour, Fully automated bale work-off, gives the operator the ability to separate lay-down of different cotton qualities in different lines is possible and ranks high in safety ratings. For the complete information on this listing click here.

 Last, but not least, is the Trane CentraVac Water Centrifugal Chiller, listing number 246170. This piece comes equip with a Trane Adaptive Control, electric panel, and oil pump motor. Operating at 1800 RPM and 125 HP, this chiller is sure to please. Delivered complete with user manual!

To see more items listed in this auction, check out the preliminary lot catalog on the Unilever Las Piedras Auction Page. Want to see this equipment and more in person? Inspections will be held today, Monday, January 9th at the Unilever Las Piedras facility. As always, please feel free to contact us with any questions you may have about this or other auctions.

 

Don’t Wait to Refinance!

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Many people took advantage of last year’s low interest rates and refinancedtheir homes. If you didn’t do it last year, the Federal Reserve promised to keep rates low this year, so there’s still time. However, according to a quote in The New York Times from Frank Nothaft, chief economist at Freddie Mac, interest rates might start to go up a little in the spring.  

If you’re planning on refinancing this year, take action now. Begin to gather all of your documents, like pay stubs and W-2s, and check your credit report. And find an appraiser qualified to determine the value of your home. The appraiser you work with should be familiar with your area and know the rules from the Home Valuation Code of Conduct intimately. An appraisal that comes in too high or lower than you expected can derail your refinancing pla

ns, so be sure that your appraisal is as accurate as possible. If you’re planning on refinancing in 2012, contact us today!  

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading

Is Refinancing for You?

Refinancing Options for Underwater Homeowners

 

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An Explanation of the Anti-Flipping Waiver

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The recent announcement by the Federal Housing Administration (FHA) that they will extend the waiver of anti-flipping regulations through 2012 is welcome news to the entire real estate industry. But just what are “anti-flipping regulations” anyway?

First, let’s define flipping in this context. Property flipping refers to the practice in which a recently acquired property is resold for a considerable profit. Most property flipping occurs within a matter of days after acquisition, and usually with only minor cosmetic improvements, if any.

In May 2003, FHA and the Department of Housing and Urban Development (HUD) issued regulations stating that any home that was owned for less than 90 days could not be purchased by a buyer using an FHA-insured mortgage.

In 2010, in recognition of the housing crisis and given the large number of foreclosed homes sitting vacant, HUD and FHA realized that allowing investors to buy these homes, fix them up, and resell them quickly for a profit wa

s not such a bad idea after all.

With the extension of the anti-flipping waiver, most investors are working on homes that are catering primarily to the first-time-buyer market. And restoring the value of run-down homes can rid cities of the foreclosure blight while improving overall property values.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading

Property Values in the Age of Foreclosures

Home Affordable Foreclosure Alternatives

Homeowners Foreclose on a Bank

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