Qualifying for a real estate purchase requires different credit than auto financing or credit cards. In fact, you may be able to go out and buy a new car today, but you might be turned down for a home mortgage. On the other hand, you could go out and buy a house and be turned down for an auto loan.
Perhaps you recently applied for a line of credit and were told that your credit score was excellent. When you apply for an auto loan or a consumer credit card, the scoring model computes a different credit score than when a mortgage lender runs your credit. Your credit scores differ for different types of loans. Plus, mortgage lenders run all three credit reports and usually take your middle score as their basis for your loan requirements.
However, some mortgage companies, especially non-prime lenders, will use your highest credit score. For a mortgage refinance, some lenders don't even run a new credit report if all your mortgage payments were made on time. They use the credit score from when you first applied and financed your mortgage with them.
Unlike other types of credit grantors, mortgage lenders consider your debt-to-income ratio and other credit matters, besides your credit score. Your debt-to-income ratio is the comparison of mortgage payment, including taxes, interest, and insurance to your total gross monthly income.
Real estate lenders also consider:
Your education
Your income
Your employment qualifications
Your overall monthly debt payments
Understanding the difference between good credit and the credit needed for real estate mortgages helps you refinance your mortgage or buy your dream home.
Copyright © 2005 Jeanette J. Fisher All Rights Reserved.
Jeanette Fisher teaches real estate investing and interior design college courses. She became a credit expert to help her students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center http://www.recredithelp.com
Jeanette Fisher helps home owners create homes for glorious living and top-dollar sales. Inspired by Mother Nature, Jeanette's eye for design is fueled by her love of the natural outdoors, light, and color. After researching the affects of the environment on emotions, she teaches Design Psychology college courses. Jeanette also teaches home sellers and real estate investors Design Psychology strategies for fixing ugly houses and home staging. Jeanette writes books and articles on real estate investing, credit for mortgage financing, and interior design.
Thursday, May 1, 2008
Best Market to Invest In
Did you ever wonder which market was the best to invest in? There are so many to choose from. There's stocks, bonds, commodities, mutual funds, real estate, FOREX, ect. To be completely honest, not any one of them are the best. They all have their purposes and they all should be used. But depending on your goals, there can be one that is the best fit for you. If you already have a couple million dollars saved up and you just want to keep that money protected with returns around 5-10% a year, bonds and mutual funds would probably be a good option for you. But if you'd like to make investing your main income source and to possibly build a multi million dollar empire, FOREX would be the best bet for you. There are several reasons for this but we'll get into that later.
So what exactly is FOREX anyway? FOREX is the Foreign Currency Exchange market. Even though the FOREX market may be relatively unknown, it is by far the largest market. Around $1.5 trillion dollars are traded each day! That's right, each day. That was not a typo. That's 30 times larger than all U.S. equity markets combined! And this market isn't leaving anytime soon. It is the reason you can buy foreign goods in your own country, vice versa. So what makes this a better market than any of the other ones?
1. Free Accounts
Many brokerages offer free demo accounts. You can first learn on these accounts and refine your trading skills before ever investing in the market.
2. Starting Capital
You don't need a lot of money to get started with FOREX. You can open up an account with as little as $300.
3. Leverage
The FOREX market offers a leverage of 100:1 and in some cases higher. That means if you invested $100 you can actually control $10,000! That's 100 times what you invested. This is how you make the really big money.
4. Software
There's free software out there that offers live price feeds, charting, and indicators.
5. Convenience
There is no centralized exchange location. Everything is done electronically and can be done online 24 hours a day. There are no trading hours, but no trading can be done on the weekends.
6. Focus
FOREX is a huge market, but 85% of the trading is done between 7 major currencies. You're not overwhelmed with 1,000s of different options.
7. Trading Costs
There are no commissions. Therefore, transaction fees are very low.
I'm sure by now you can clearly see the advantages FOREX has over all other markets. It is by far, the best market to get started in. The earnings you make from the FOREX market could then be used to diversify into other markets.
So what exactly is FOREX anyway? FOREX is the Foreign Currency Exchange market. Even though the FOREX market may be relatively unknown, it is by far the largest market. Around $1.5 trillion dollars are traded each day! That's right, each day. That was not a typo. That's 30 times larger than all U.S. equity markets combined! And this market isn't leaving anytime soon. It is the reason you can buy foreign goods in your own country, vice versa. So what makes this a better market than any of the other ones?
1. Free Accounts
Many brokerages offer free demo accounts. You can first learn on these accounts and refine your trading skills before ever investing in the market.
2. Starting Capital
You don't need a lot of money to get started with FOREX. You can open up an account with as little as $300.
3. Leverage
The FOREX market offers a leverage of 100:1 and in some cases higher. That means if you invested $100 you can actually control $10,000! That's 100 times what you invested. This is how you make the really big money.
4. Software
There's free software out there that offers live price feeds, charting, and indicators.
5. Convenience
There is no centralized exchange location. Everything is done electronically and can be done online 24 hours a day. There are no trading hours, but no trading can be done on the weekends.
6. Focus
FOREX is a huge market, but 85% of the trading is done between 7 major currencies. You're not overwhelmed with 1,000s of different options.
7. Trading Costs
There are no commissions. Therefore, transaction fees are very low.
I'm sure by now you can clearly see the advantages FOREX has over all other markets. It is by far, the best market to get started in. The earnings you make from the FOREX market could then be used to diversify into other markets.
Equity vs Debt Financing
If you are starting a business and are looking at your financing options, there are two types of financing available: equity financing and debt financing.
Debt Financing
Debt financing means taking out a loan (money that is to be paid back over a certain period of time, usually with interest). Debt financing is either short term (the loan is to be repaid in less than a year) or long term (the loan is to be repaid in more than a year). Lending parties will also look closely at the business's debt-to-equity-ratio.
When taking out a business loan, the only obligation of the business is to repay the loan according to the terms that were agreed upon. The lending party does not gain ownership in the business.
Many lending institutions require the owner(s) of smaller businesses to personally guarantee the loan. In such a case, the commercial loan becomes the same as a personal loan.
If you are starting a home based business and are looking to take out a commercial loan, then you will be definitely be asked to personally guarantee the loan.
Advantages of Debt Financing
The biggest advantage of debt financing is that the lending party does not gain any part of ownership of your business and your only obligation to lending party is to repay the debt. Also, repayment of the loan is typically a fixed expense, according the terms of the loan.
Dis-Advantages of Debt Financing
The biggest dis-advantage is that the business will not have all of its cash flow available to do business. Also, the interest that is owed can be high.
Equity Financing
Equity financing is when you (the business owner) sell an ownership interest in your business in exchange for money. The business owner and the investor(s) shares the business and the risks that come with it.
Equity financing is a form of financing your business without incurring debt. With equity financing you don't have to take out a loan since the funding is already coming from an investor in exchange for a piece of ownership in the business.
Many small and growth-stage businesses use equity financing as a source of funding. There are many sources of equity financing including non-professional investors such as family and friends, employees, etc. The most common source, however, are professional investors known as venture capitalists.
Venture capitalists are looking for businesses with the potential to grow, thereby increasing the value of their investment. They do not expect to see an immediate return on their investment.
Most venture capitalists focus on certain types of businesses such as, start-ups, specific industries (health, technology, service) or technologies.
Advantages of Equity Financing
The major advantage of equity financing is that the cash flow that would have been used to repay the loan, can be used to grow the business.
Dis-Advantages of Equity Financing
The major dis-advantage of equity financing is the loss of interest of ownership of your business and also the possible loss of complete control that can accompany a sharing of business ownership with investors.
You are free to reprint this only if the article text link is included:
If You Have Questions About Starting a Business visit www.AGuideToStartingABusiness.com
Debt Financing
Debt financing means taking out a loan (money that is to be paid back over a certain period of time, usually with interest). Debt financing is either short term (the loan is to be repaid in less than a year) or long term (the loan is to be repaid in more than a year). Lending parties will also look closely at the business's debt-to-equity-ratio.
When taking out a business loan, the only obligation of the business is to repay the loan according to the terms that were agreed upon. The lending party does not gain ownership in the business.
Many lending institutions require the owner(s) of smaller businesses to personally guarantee the loan. In such a case, the commercial loan becomes the same as a personal loan.
If you are starting a home based business and are looking to take out a commercial loan, then you will be definitely be asked to personally guarantee the loan.
Advantages of Debt Financing
The biggest advantage of debt financing is that the lending party does not gain any part of ownership of your business and your only obligation to lending party is to repay the debt. Also, repayment of the loan is typically a fixed expense, according the terms of the loan.
Dis-Advantages of Debt Financing
The biggest dis-advantage is that the business will not have all of its cash flow available to do business. Also, the interest that is owed can be high.
Equity Financing
Equity financing is when you (the business owner) sell an ownership interest in your business in exchange for money. The business owner and the investor(s) shares the business and the risks that come with it.
Equity financing is a form of financing your business without incurring debt. With equity financing you don't have to take out a loan since the funding is already coming from an investor in exchange for a piece of ownership in the business.
Many small and growth-stage businesses use equity financing as a source of funding. There are many sources of equity financing including non-professional investors such as family and friends, employees, etc. The most common source, however, are professional investors known as venture capitalists.
Venture capitalists are looking for businesses with the potential to grow, thereby increasing the value of their investment. They do not expect to see an immediate return on their investment.
Most venture capitalists focus on certain types of businesses such as, start-ups, specific industries (health, technology, service) or technologies.
Advantages of Equity Financing
The major advantage of equity financing is that the cash flow that would have been used to repay the loan, can be used to grow the business.
Dis-Advantages of Equity Financing
The major dis-advantage of equity financing is the loss of interest of ownership of your business and also the possible loss of complete control that can accompany a sharing of business ownership with investors.
You are free to reprint this only if the article text link is included:
If You Have Questions About Starting a Business visit www.AGuideToStartingABusiness.com
Equity vs Debt Financing
If you are starting a business and are looking at your financing options, there are two types of financing available: equity financing and debt financing.
Debt Financing
Debt financing means taking out a loan (money that is to be paid back over a certain period of time, usually with interest). Debt financing is either short term (the loan is to be repaid in less than a year) or long term (the loan is to be repaid in more than a year). Lending parties will also look closely at the business's debt-to-equity-ratio.
When taking out a business loan, the only obligation of the business is to repay the loan according to the terms that were agreed upon. The lending party does not gain ownership in the business.
Many lending institutions require the owner(s) of smaller businesses to personally guarantee the loan. In such a case, the commercial loan becomes the same as a personal loan.
If you are starting a home based business and are looking to take out a commercial loan, then you will be definitely be asked to personally guarantee the loan.
Advantages of Debt Financing
The biggest advantage of debt financing is that the lending party does not gain any part of ownership of your business and your only obligation to lending party is to repay the debt. Also, repayment of the loan is typically a fixed expense, according the terms of the loan.
Dis-Advantages of Debt Financing
The biggest dis-advantage is that the business will not have all of its cash flow available to do business. Also, the interest that is owed can be high.
Equity Financing
Equity financing is when you (the business owner) sell an ownership interest in your business in exchange for money. The business owner and the investor(s) shares the business and the risks that come with it.
Equity financing is a form of financing your business without incurring debt. With equity financing you don't have to take out a loan since the funding is already coming from an investor in exchange for a piece of ownership in the business.
Many small and growth-stage businesses use equity financing as a source of funding. There are many sources of equity financing including non-professional investors such as family and friends, employees, etc. The most common source, however, are professional investors known as venture capitalists.
Venture capitalists are looking for businesses with the potential to grow, thereby increasing the value of their investment. They do not expect to see an immediate return on their investment.
Most venture capitalists focus on certain types of businesses such as, start-ups, specific industries (health, technology, service) or technologies.
Advantages of Equity Financing
The major advantage of equity financing is that the cash flow that would have been used to repay the loan, can be used to grow the business.
Dis-Advantages of Equity Financing
The major dis-advantage of equity financing is the loss of interest of ownership of your business and also the possible loss of complete control that can accompany a sharing of business ownership with investors.
You are free to reprint this only if the article text link is included:
If You Have Questions About Starting a Business visit www.AGuideToStartingABusiness.com
Debt Financing
Debt financing means taking out a loan (money that is to be paid back over a certain period of time, usually with interest). Debt financing is either short term (the loan is to be repaid in less than a year) or long term (the loan is to be repaid in more than a year). Lending parties will also look closely at the business's debt-to-equity-ratio.
When taking out a business loan, the only obligation of the business is to repay the loan according to the terms that were agreed upon. The lending party does not gain ownership in the business.
Many lending institutions require the owner(s) of smaller businesses to personally guarantee the loan. In such a case, the commercial loan becomes the same as a personal loan.
If you are starting a home based business and are looking to take out a commercial loan, then you will be definitely be asked to personally guarantee the loan.
Advantages of Debt Financing
The biggest advantage of debt financing is that the lending party does not gain any part of ownership of your business and your only obligation to lending party is to repay the debt. Also, repayment of the loan is typically a fixed expense, according the terms of the loan.
Dis-Advantages of Debt Financing
The biggest dis-advantage is that the business will not have all of its cash flow available to do business. Also, the interest that is owed can be high.
Equity Financing
Equity financing is when you (the business owner) sell an ownership interest in your business in exchange for money. The business owner and the investor(s) shares the business and the risks that come with it.
Equity financing is a form of financing your business without incurring debt. With equity financing you don't have to take out a loan since the funding is already coming from an investor in exchange for a piece of ownership in the business.
Many small and growth-stage businesses use equity financing as a source of funding. There are many sources of equity financing including non-professional investors such as family and friends, employees, etc. The most common source, however, are professional investors known as venture capitalists.
Venture capitalists are looking for businesses with the potential to grow, thereby increasing the value of their investment. They do not expect to see an immediate return on their investment.
Most venture capitalists focus on certain types of businesses such as, start-ups, specific industries (health, technology, service) or technologies.
Advantages of Equity Financing
The major advantage of equity financing is that the cash flow that would have been used to repay the loan, can be used to grow the business.
Dis-Advantages of Equity Financing
The major dis-advantage of equity financing is the loss of interest of ownership of your business and also the possible loss of complete control that can accompany a sharing of business ownership with investors.
You are free to reprint this only if the article text link is included:
If You Have Questions About Starting a Business visit www.AGuideToStartingABusiness.com
Take Time To Invest
There are many worthy ways to spend your time and energy. Our society is in desperate need of people who will care about people and things other than themselves. There are many ways that adults can help leave a positive legacy for the generations behind them. One of the best ways that we as adults can care for the world we live in is to invest in the young people all around us.
Some of you are probably thinking that you are parents and that isn't that enough of a contribution to make to the next generation? Being a parent is one of the most obvious and perhaps best ways to invest in children, but it is not the only way. All adults, parents or not, have the ability and the responsibility to make life better for children and young people. I believe we have this incredible job to do, that we have the task of spending our lives on things that make life better for others.
Taking time to invest in others requires just that: time. You cannot get very far in any relationship without putting time into it. If you are parent, take the time to parent well. Take time to get into the lives and hearts and minds of your kids. Learn about the things they care about, listen to the things they are scared of or excited about. Take your kids to their favorite park or read a great book with them before bed each night. Time is one of the best ways you can invest into children. If you are not a parent, find ways to interact with children. Offer to take the kids of your friends or neighbors for an evening. Take time to play games, go for walks, eat dessert or read books with kids. Invest yourself into the future of our country.
Learning to invest in young people requires that you offer yourself. By offering yourself I mean you allow children to learn from your life. Share stories from your past, lessons you've learned, and things you've failed at. Young people love to learn how adults have done life. Invest into them by being open and honest about the way you've lived, the decisions you've made and the things you would do differently if you could start again. You might be amazed at how much kids respond to adults that are offering themselves.
Few things are as valuable as taking time and energy to invest into children and young people. Think about ways that you could share what you've learned about life with others.
Some of you are probably thinking that you are parents and that isn't that enough of a contribution to make to the next generation? Being a parent is one of the most obvious and perhaps best ways to invest in children, but it is not the only way. All adults, parents or not, have the ability and the responsibility to make life better for children and young people. I believe we have this incredible job to do, that we have the task of spending our lives on things that make life better for others.
Taking time to invest in others requires just that: time. You cannot get very far in any relationship without putting time into it. If you are parent, take the time to parent well. Take time to get into the lives and hearts and minds of your kids. Learn about the things they care about, listen to the things they are scared of or excited about. Take your kids to their favorite park or read a great book with them before bed each night. Time is one of the best ways you can invest into children. If you are not a parent, find ways to interact with children. Offer to take the kids of your friends or neighbors for an evening. Take time to play games, go for walks, eat dessert or read books with kids. Invest yourself into the future of our country.
Learning to invest in young people requires that you offer yourself. By offering yourself I mean you allow children to learn from your life. Share stories from your past, lessons you've learned, and things you've failed at. Young people love to learn how adults have done life. Invest into them by being open and honest about the way you've lived, the decisions you've made and the things you would do differently if you could start again. You might be amazed at how much kids respond to adults that are offering themselves.
Few things are as valuable as taking time and energy to invest into children and young people. Think about ways that you could share what you've learned about life with others.
Learn From Investment
Every real estate investing deal is an opportunity for both profit and education. Well my first deal was a good combination of both. When I decided I wanted to get involved in real estate investing it took me eight months to decide to do my first deal.
This particular deal came as a result of networking in my local real estate investor group. A local Memphis investor found a deal on a 3 bedroom, 2 bathroom home in a moderate to lower income area where people still like to buy homes. This was a wholesale deal for the other investor and he assigned his contract to me to close on the deal. I was buying the property for $58,000 and $5,000 of that went to the investor for assigning the contract to me and $53,000 went to the seller of the property. I had the cash available so I paid all cash for this deal and for $4,000 in repairs this property needed. The after repaired value of the property was approximately 95k.
I had decided I wanted to do a rent to own or lease option deal with this property. I put a yard sign out with property flyers and had links to a website with inside pictures of the property. At the time I was doing this a more experienced investor told me I should try to retail the property and take the quick cash and go on to the next deal. Well as a new investor I wasn't sure how long it would take for me to find my next good deal so I wanted to get the maximum out of this property. After about a month(and about $800 in ads) I found a tenant I considered suitable and agreed to take a $2500 option fee plus $875 per month and a sales price of $99,000. If the tenant pays the rent by the first of the month then $100 counts as pay down towards the purchase price. If I had sold the property quickly I may have sold for $89k and paid $5k in selling fees and netted about $20k and would have paid about $7k in taxes on that income. Instead by going after lease option it may take 2-6 years to sell and I should get a $99k or better selling price with much less selling costs and should net about $35k of which about $5k will be taxed as capital gains. The lease option method will net me about double what retailing would have done, however it would have been nice to have access to that cash for doing more deals. I think the $15,000 profit quickly would have been better than $30,000 in a couple of years plus the things I could have done with the $62,000 in cash I put into the property.
The tenant I chose has not once in the first nine months paid the rent on time so he hasn't earned the $100 monthly rent credit, and has on average had to pay an extra $100 each month in late charges. I don't expect this tenant will be able to refinance, however his job status and income have been going up while he has been in the property, and the current market value is now $105k. The tenants father is a mortgage broker and if I get to the point of evicting the son the father has told me to let him catch up the sons rent before filing for eviction so that part is really in my favor.
From a humanitarian perspective I like lease option deals as I am really helping someone who could not rent otherwise. I will only do a lease option to someone I believe is improving their credit and job situation and should be able to buy the house within 24 months. With 12 months of on time payments verified by copies of checks many mortgage brokers can get your tenant financed as a refinance type of deal.
In the event the tenant doesn't buy the property within the first 2 years I can either lease option to another tenant or just try to outright sell the property. Even though the property provides great cash flow I would rather sell it and get a big check and use the cash to go after the next deal.
Some things I learned on this deal that you can use: 1. We had a yard sign with flyers in a flyer tube plus links to view pictures on a website. Before we would show the inside of the property we insisted any prospects should view the pictures online first. We ran ads in the major local newspaper and we got 20 times as many calls from the yard sign than we did from the newspaper. However this street had decent traffic, other properties I have are more secluded. Always use a yard sign and flyer box and have pics online with good descriptions and always highlight the kitchen and bathrooms. 2. If I had the deal to do all over again I would have retailed the house and tried to sell it quickly. I could have rolled this deals cash into more and more deals and made much more money. My opinion now is that every investor who isn't already financially well off needs to go for the quick income first and progress to long term deals second. 3. I probably should have waited a little longer for a stronger tenant. 4. You can not do this type of lease option transaction in Texas now due to some strange laws that got passed in 2005. However I live in Tennessee and we don't have any anti-investor state wide laws yet. We do have a bad local one related to trash left over from evictions but that is minor in comparison.
This particular deal came as a result of networking in my local real estate investor group. A local Memphis investor found a deal on a 3 bedroom, 2 bathroom home in a moderate to lower income area where people still like to buy homes. This was a wholesale deal for the other investor and he assigned his contract to me to close on the deal. I was buying the property for $58,000 and $5,000 of that went to the investor for assigning the contract to me and $53,000 went to the seller of the property. I had the cash available so I paid all cash for this deal and for $4,000 in repairs this property needed. The after repaired value of the property was approximately 95k.
I had decided I wanted to do a rent to own or lease option deal with this property. I put a yard sign out with property flyers and had links to a website with inside pictures of the property. At the time I was doing this a more experienced investor told me I should try to retail the property and take the quick cash and go on to the next deal. Well as a new investor I wasn't sure how long it would take for me to find my next good deal so I wanted to get the maximum out of this property. After about a month(and about $800 in ads) I found a tenant I considered suitable and agreed to take a $2500 option fee plus $875 per month and a sales price of $99,000. If the tenant pays the rent by the first of the month then $100 counts as pay down towards the purchase price. If I had sold the property quickly I may have sold for $89k and paid $5k in selling fees and netted about $20k and would have paid about $7k in taxes on that income. Instead by going after lease option it may take 2-6 years to sell and I should get a $99k or better selling price with much less selling costs and should net about $35k of which about $5k will be taxed as capital gains. The lease option method will net me about double what retailing would have done, however it would have been nice to have access to that cash for doing more deals. I think the $15,000 profit quickly would have been better than $30,000 in a couple of years plus the things I could have done with the $62,000 in cash I put into the property.
The tenant I chose has not once in the first nine months paid the rent on time so he hasn't earned the $100 monthly rent credit, and has on average had to pay an extra $100 each month in late charges. I don't expect this tenant will be able to refinance, however his job status and income have been going up while he has been in the property, and the current market value is now $105k. The tenants father is a mortgage broker and if I get to the point of evicting the son the father has told me to let him catch up the sons rent before filing for eviction so that part is really in my favor.
From a humanitarian perspective I like lease option deals as I am really helping someone who could not rent otherwise. I will only do a lease option to someone I believe is improving their credit and job situation and should be able to buy the house within 24 months. With 12 months of on time payments verified by copies of checks many mortgage brokers can get your tenant financed as a refinance type of deal.
In the event the tenant doesn't buy the property within the first 2 years I can either lease option to another tenant or just try to outright sell the property. Even though the property provides great cash flow I would rather sell it and get a big check and use the cash to go after the next deal.
Some things I learned on this deal that you can use: 1. We had a yard sign with flyers in a flyer tube plus links to view pictures on a website. Before we would show the inside of the property we insisted any prospects should view the pictures online first. We ran ads in the major local newspaper and we got 20 times as many calls from the yard sign than we did from the newspaper. However this street had decent traffic, other properties I have are more secluded. Always use a yard sign and flyer box and have pics online with good descriptions and always highlight the kitchen and bathrooms. 2. If I had the deal to do all over again I would have retailed the house and tried to sell it quickly. I could have rolled this deals cash into more and more deals and made much more money. My opinion now is that every investor who isn't already financially well off needs to go for the quick income first and progress to long term deals second. 3. I probably should have waited a little longer for a stronger tenant. 4. You can not do this type of lease option transaction in Texas now due to some strange laws that got passed in 2005. However I live in Tennessee and we don't have any anti-investor state wide laws yet. We do have a bad local one related to trash left over from evictions but that is minor in comparison.
Invest in Your Home by Starting In the Basement
For those lucky homeowners who have basements, making sure you do everything you can to keep that basement clean and dry is vital for the ongoing stability of your home's foundation and overall safety of your home's environment. A number of nasty diseases can spawn from mold and mildew run amok in your damp basement. Here are some aspects to consider when doing a little basement waterproofing.
1. Go straight to the top. Water running off your roof can quickly seep into your basement if proper gutters and drain spouts aren't installed. Gutters that are clogged or missing can cause a waterfall to land right next to the foundation and eventually seep into the basement walls. Check your gutters regularly for clogged areas or leaky spots and take care of the problem fast. You can install a mesh or plastic screen over the gutters to prevent large objects from getting trapped inside.
2. Where does your water run? Your yard should slope away from the house so that rainwater is also running away from the foundation and not toward it. If necessary, re-grade your lawn so that it drops about 6 inches for every 10 feet. If the equipment isn't readily available to you, contact a lawn care expert to handle this task.
3. Do you have a window well or egress window? During a rainstorm water can easily collect in those wells and act as a holding tank for moisture against your foundation. You should cover those windows wells with a plastic window well cover. These are a few dollars at any local home improvement store.
4. Sometimes the water comes from inside. Cut down on condensation and internal moisture by using a dehumidifier. It's also best to insulate your pipes and air conditioning ducts. Basement bathrooms can be a real source of mold and mildew buildup. Clean the bathroom regularly and properly ventilate the room so the moisture doesn't have a chance to collect.
Once you've established that your basement is clean, dry and protected, revisit this area of your home regularly to stay ahead of any new problems that might develop. Your home and family will thank you for it.
1. Go straight to the top. Water running off your roof can quickly seep into your basement if proper gutters and drain spouts aren't installed. Gutters that are clogged or missing can cause a waterfall to land right next to the foundation and eventually seep into the basement walls. Check your gutters regularly for clogged areas or leaky spots and take care of the problem fast. You can install a mesh or plastic screen over the gutters to prevent large objects from getting trapped inside.
2. Where does your water run? Your yard should slope away from the house so that rainwater is also running away from the foundation and not toward it. If necessary, re-grade your lawn so that it drops about 6 inches for every 10 feet. If the equipment isn't readily available to you, contact a lawn care expert to handle this task.
3. Do you have a window well or egress window? During a rainstorm water can easily collect in those wells and act as a holding tank for moisture against your foundation. You should cover those windows wells with a plastic window well cover. These are a few dollars at any local home improvement store.
4. Sometimes the water comes from inside. Cut down on condensation and internal moisture by using a dehumidifier. It's also best to insulate your pipes and air conditioning ducts. Basement bathrooms can be a real source of mold and mildew buildup. Clean the bathroom regularly and properly ventilate the room so the moisture doesn't have a chance to collect.
Once you've established that your basement is clean, dry and protected, revisit this area of your home regularly to stay ahead of any new problems that might develop. Your home and family will thank you for it.
Intro to Investing
Investing is one of the most overlooked yet important aspects of human life. Many people put off investing or simply do not put any of their money away their entire working life and when it comes time to retire, there is nothing there for them. In this world of uncertainty when it comes to Social Security, it is imparitive that an individual invests some of thier income for their future use and retirement. Putting off investing is one of the most hurtful things you can do for your future. When it comes to investing, time is your greatest ally. Time allows you to earn compound interest on your bank accounts, own stocks whose dividends are reinvested and whose shares split, as well as own properties that continually increase in value.
There are many excuses for someone to put off investing. "I'm too young, I'll start in a few years when I am making more money." "I don't have the money right now, I have kids to raise, I'll start when they move out." "If I don't have any money saved, there will always be Social Security for me." Pretty soon, someone finds themselves nearing the age of retirement with little to no money waiting for them when they finally retire. This is not a fun situation to be in. When most people are retiring that individual is forced to stay in the workforce to support themselves and make a futile effort to build some kind of portfolio to allow them to retire before life gets the best of them.
When many people think of investing, they think of the stock market. Though this is a major part in investing, it is by no means the only one. There is real estate, Bonds, and even banks. You may wonder how a bank can be considered a good investment. Though it may not make you much money on your money, they are a place to build up your funds to invest other places. A bank can be an important stepping stone on the road to a comfortable retirement. It is also important not to tie all of your money up in one place. Have a little bit in real estate, a little bit in the stock market, a little bit in bonds, and yes a little bit in a bank as a backup. This is kind of like a safety net. If one part of your portfolio should underperform one year, the other parts should pick up the slack. A correctly diversified portfolio will always be making you money no matter what is going on with the economy at any given moment.
You should always try to save a portion of you income. Set a resonable percent and pay yourself first. Try not to touch that money that you pay to yourself. If you are going to come up short one week, try to find some other source for your money. It is important to get this saving habit down early and to follow it strictly. Right from your first adolescent job you should be saving your money for your future. In fact, the years when you still live at home are the prime years to get a good base in your portfolio. An adolescent living at home has very little expenses. Though they will most likely make minimum wage or close to it, with the lack of expenses that go along with living with ones parents, they can afford to invest much of the money that they make. This comes hard to most teens living at home. They get some money and they want to hurry up and spend it on movie tickets or new cds. This fall back to the pay yourself first method. If they take a portion of their check out right when they first get it and forget about that portion, it forces them to give up some of the unnecissary items or find some other productive way to make some extra money to get them.
The bottom line is your biggest ally when it comes to investing is time. You can never get time back and its powers to aid you in having a comfortable and early retirement are priceless. DO NOT put off investing. If you haven't started saving money, go out today and open a bank account. It is very important to save when you can so it is there for you when you wish to have it. You must also remember that is wise to have a diversified portfolio. The saying "Don't put all of your eggs in one basket" rings true. Hopefully this website will be of some use in helping you to decide how and where to invest your money. Take your time and read all the articles, they are methods that I feel are good ways to build a strong portfolio and to gain financial freedom at an early age to allow you to enjoy your family during the most important years of your life.
There are many excuses for someone to put off investing. "I'm too young, I'll start in a few years when I am making more money." "I don't have the money right now, I have kids to raise, I'll start when they move out." "If I don't have any money saved, there will always be Social Security for me." Pretty soon, someone finds themselves nearing the age of retirement with little to no money waiting for them when they finally retire. This is not a fun situation to be in. When most people are retiring that individual is forced to stay in the workforce to support themselves and make a futile effort to build some kind of portfolio to allow them to retire before life gets the best of them.
When many people think of investing, they think of the stock market. Though this is a major part in investing, it is by no means the only one. There is real estate, Bonds, and even banks. You may wonder how a bank can be considered a good investment. Though it may not make you much money on your money, they are a place to build up your funds to invest other places. A bank can be an important stepping stone on the road to a comfortable retirement. It is also important not to tie all of your money up in one place. Have a little bit in real estate, a little bit in the stock market, a little bit in bonds, and yes a little bit in a bank as a backup. This is kind of like a safety net. If one part of your portfolio should underperform one year, the other parts should pick up the slack. A correctly diversified portfolio will always be making you money no matter what is going on with the economy at any given moment.
You should always try to save a portion of you income. Set a resonable percent and pay yourself first. Try not to touch that money that you pay to yourself. If you are going to come up short one week, try to find some other source for your money. It is important to get this saving habit down early and to follow it strictly. Right from your first adolescent job you should be saving your money for your future. In fact, the years when you still live at home are the prime years to get a good base in your portfolio. An adolescent living at home has very little expenses. Though they will most likely make minimum wage or close to it, with the lack of expenses that go along with living with ones parents, they can afford to invest much of the money that they make. This comes hard to most teens living at home. They get some money and they want to hurry up and spend it on movie tickets or new cds. This fall back to the pay yourself first method. If they take a portion of their check out right when they first get it and forget about that portion, it forces them to give up some of the unnecissary items or find some other productive way to make some extra money to get them.
The bottom line is your biggest ally when it comes to investing is time. You can never get time back and its powers to aid you in having a comfortable and early retirement are priceless. DO NOT put off investing. If you haven't started saving money, go out today and open a bank account. It is very important to save when you can so it is there for you when you wish to have it. You must also remember that is wise to have a diversified portfolio. The saying "Don't put all of your eggs in one basket" rings true. Hopefully this website will be of some use in helping you to decide how and where to invest your money. Take your time and read all the articles, they are methods that I feel are good ways to build a strong portfolio and to gain financial freedom at an early age to allow you to enjoy your family during the most important years of your life.
Invest in your life. with a loan
So you want to buy nice things? Why not! Few people realize that our lives are like work: our enjoyment of life is like the income we earn and our purchases can be the investments we make in order to enjoy our life more. After all, why live a life of drudgery just because you don't have all the money you need today to make the purchases you want?
When you look at your whole life's enjoyment, a UK personal loan may be one choice you want to make to increase that enjoyment. And since many people are choosing to make a UK personal loan part of their financial portfolio, you might want to make one part of yours as well.
You can get a UK personal loan from many lending institutions that are eager to do business with you. Because they want to do business with you, they offer a variety of competitive interest rates and a huge range of available loan amounts for whatever your need. And, because they want to do business with you, they're also able to offer a variety of repayment plans suitable to your situation. Often, the only determining factor of how much you can get is simply what your current job is and what future prospects you have. And there are many available online at the click of a link!
It doesn't matter what kind of credit history you have or what kind of financial situation you're in. There is probably a loan option available to suit your needs. However, you should be aware that the better your financial situation and credit rating, as well as any assets you have to help you get a secured loan, could point you toward a better interest rate than other types of loans.
Be that as it may, having a loan can really turn your life around. Whether you are getting a loan to consolidate your bills or leverage your investments or simply to help you enjoy life a little more than you would other wise, a UK personal loan may be the right choice for you!
Be sure to shop around, since some companies may be able to get you a better rate than others. And, once you've found a loan company who wants to provide you with a loan, it doesn't hurt to go back to ones who gave you a higher rate before and let them know. They may just come back to you with another offer! Now that's wise leveraging!
So make an investment in your life with a UK personal loan. You'll be glad you did
When you look at your whole life's enjoyment, a UK personal loan may be one choice you want to make to increase that enjoyment. And since many people are choosing to make a UK personal loan part of their financial portfolio, you might want to make one part of yours as well.
You can get a UK personal loan from many lending institutions that are eager to do business with you. Because they want to do business with you, they offer a variety of competitive interest rates and a huge range of available loan amounts for whatever your need. And, because they want to do business with you, they're also able to offer a variety of repayment plans suitable to your situation. Often, the only determining factor of how much you can get is simply what your current job is and what future prospects you have. And there are many available online at the click of a link!
It doesn't matter what kind of credit history you have or what kind of financial situation you're in. There is probably a loan option available to suit your needs. However, you should be aware that the better your financial situation and credit rating, as well as any assets you have to help you get a secured loan, could point you toward a better interest rate than other types of loans.
Be that as it may, having a loan can really turn your life around. Whether you are getting a loan to consolidate your bills or leverage your investments or simply to help you enjoy life a little more than you would other wise, a UK personal loan may be the right choice for you!
Be sure to shop around, since some companies may be able to get you a better rate than others. And, once you've found a loan company who wants to provide you with a loan, it doesn't hurt to go back to ones who gave you a higher rate before and let them know. They may just come back to you with another offer! Now that's wise leveraging!
So make an investment in your life with a UK personal loan. You'll be glad you did
Income Investing: Selecting the Right Stuff
When is 3 percent better than 6 percent? Yeah, we all know the answer, but only until the prices of the securities we already own begin to fall. Then, logic and mathematical acumen disappear and we become susceptible to all kinds of special cures for the periodic onset of higher interest rates. We'll be told to sit in cash until rates stop rising, or to sell the securities we own now, before they lose even more of their precious Market Value. Other gurus will suggest the purchase of shorter-term bonds or CDs (ugh) to stem the tide of the perceived erosion in portfolio values. There are two important things that your mother never told you about Income Investing: (1) Higher Interest Rates are good for investors, even better than lower rates, and (2) Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult.
Higher Interest Rates are the result of the Government's efforts to slow a growing economy in hopes of preventing an appearance of the three headed inflation monster. A quick glance over your shoulder might remind you of recent times when the government was trying to heal the wounds of a misguided Wall Street attack on traditional investment principles by lowering interest rates. The strategy worked, the economy rebounded, and Wall Street is trying to scramble back to where it was nearly six years ago. Think about the impact of changing interest rates on your Income Securities during the past five years. Bonds and Preferred Stocks; Government and Municipal Securities; they all moved higher in Market Value. Sure you felt wealthier, but the increase in your Annual Spendable Income got smaller and smaller. Your total income could well have decreased during the period as higher interest rate holdings were called away (at face value), and reinvestments were made at lower yields!
How many of you have mental bruises from the realization that you could have taken profits during the downward trajectory of the cycle, on the very securities that you now lament over. The nerve; falling below the price you paid for them years ago. But the income on these turncoats is the same as it was in 2004, when their prices were ten or twenty percent higher. This is the work of Mother Nature's financial twin sister. It's like acorns, snowfalls, and crocuses. You need to dress properly for seasonal changes and invest properly for cyclical changes. Remember the days of Bearer Bonds? There was never a whisper about Market Value erosian. Was it the IRS or Institutional Wall Street that took them away?
Higher rates are good for investors, particularly when retirement is a factor in your investment decisions. The more you receive for your reinvestment dollars, the more likely it is that you won't need a second job to maintain your standard of living. I know of no retail entity, from grocery store to cruise line that will accept the Market Value of your portfolio as payment for goods or services. Income pays the bills, more is always better than less, and only increased income levels can protect you from inflation! So, you say, how does a person take advantage of the cyclical nature of interest rates to garner the best possible income on investment quality securities? You might also ask why Wall Street makes such a fuss about the dismal bond market and offers more of their patented Sell Low, Buy High advisories, but that should be fairly obvious. An unhappy investor is Wall Streets best customer.
Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult, but it does require a change in focus from the statement bottom line. and the use of a few security types that you may not be 100% comfortable with. I'm going to assume that you are familiar with these investments, each of which could be considered (from time to time) for a spot in the well diversified Income Portion of your Asset Allocation: (1) The traditional individual Municipal and Corporate Bonds, Treasuries, Government Agency Securities, and Preferred Stocks. (2) The eyebrow raising Unit Trust varietals, Closed End Funds, Royalty Trusts, and REITs. [Purposely excluded: CDs and Money Funds, which are not investments by definition; CMOs and Zeros, mutations developed by some sicko MBAs; and Open End Mutual Funds, which just can't work because they are really "managed by the mob". i.e., investors.] The market rules that apply to all of these are fairly predictable, but the ability to create a safer, higher yielding, and flexible portfolio varies considerably within the security types. For example, most people who invest in Individual bonds wind up with a laundry list of odd lot positions, with short durations and low yields, designed for the benefit of that smiling guy in the big corner office. There is a better way, but you have to focus on income and be willing to trade occasionally.
The larger the portfolio, the more likely it is that you will be able to buy round lots of a diversified group of bonds, preferred stocks, etc. But regardless of size, individual securities of all kinds have liquidity problems, higher risk levels than are necessary, and lower yields spaced out over inconvenient time periods. Of the traditional types listed above, only preferred stock holdings are easily added to during upward interest rate movements, and cheap to take profits on when rates fall. The downside on all of these is their callability, in best-yield-first order. Wall Street loves these securities because they command the highest possible trading costs. costs that need not be disclosed to the consumer, particularly at issue. Unit Trusts are traditional securities set to music, a tune that generally assures the investor of a higher yield than is possible through personal portfolio creation. There are several additional advantages: instant diversification, quality, and monthly cash flow that may include principal (better in rising rate markets, ya follow?), and insulation from year-end swap scams. Unfortunately, the Unit Trusts are not managed, so there are few capital gains distributions to smile about, and once all of the securities are redeemed, the party is over. Trading opportunities, the very heart and soul of successful Portfolio Management, are practically non-existent.
What if you could own common stock in companies that manage the traditional Income Securities and other recognized income producers like real estate, energy production, mortgages, etc.? Closed End Funds (CEFs), REITs, and Royalty Trusts demand your attention. and don't let the idea of "leverage" spook you. AAA + insured corporate bonds, and Utility Preferred Stocks are "leverage". The sacred 30-year Treasury Bond is "leverage". Most corporations, all governments (and most private citizens) use leverage. Without leverage, most people would be commuting to work on bicycles. Every CEF can be researched as part of your selection process to determine how much leverage is involved, and the benefits. you're not going to be happy when you realize what you've been talked out of! CEFs, and the other Investment Company securities mentioned, are managed by professionals who are not taking their direction form that mob (also mentioned earlier). They provide you the opportunity to have a properly structured portfolio with a significantly higher yield, even after the management fees that are inside.
Certainly, a REIT or Royalty Trust is more risky than a CEF comprised of Preferred Stocks or Corporate Bonds, but here you have a way to participate in the widest variety of fixed and variable income alternatives in a much more manageable form. When prices rise, profit taking is routine in a liquid market; when prices fall, you can add to your position, increasing your yield and reducing your cost basis at the same time. Now don't start to salivate about the prospect of throwing all your money into Real Estate and/or Gas and Oil Pipelines. Diversify properly as you would with any other investments, and make sure that your living expenses (actual or projected) are taken care of by the less risky CEFs in the portfolio. In bond CEFs, you can get un-leveraged portfolios, state specific and/or insured Municipal portfolios, etc. Monthly income (frequently augmented by capital gains distributions) at a level that is most often significantly better than your broker can obtain for you. I told you you'd be angry!
Another feature of Investment Company shares (and please stay away from gimmicky, passively managed, or indexed types) is somewhat surprising and difficult to explain. The price you pay for the shares frequently represents a discount from the market value of the securities contained in the managed portfolio. So instead of buying a diversified group of illiquid individual securities at a premium, you are reaping the benefit of a portfolio of (quite possibly the same) securities at a discount. Additionally, and unlike regular Mutual Funds that can issue as many shares as they like without your approval, CEFs will give you the first shot at any additional shares they intend to distribute to investors.
Stop, put down the phone. Move into these securities calmly, without taking unnecessary losses on good quality holdings, and never buy a new issue. I meant to say: absolutely never buy a new issue, for all of the usual reasons. As with individual securities, there are reasons for unusually high or low yields, like too much risk or poor management. No matter how well managed a junk bond portfolio is, it's still just junk. So do a little research and spread your dollars around the many management companies that are out there. If your advisor tells you that all of this is risky, ill-advised foolishness. well, that's Wall Street, and the baby needs shoes.
Higher Interest Rates are the result of the Government's efforts to slow a growing economy in hopes of preventing an appearance of the three headed inflation monster. A quick glance over your shoulder might remind you of recent times when the government was trying to heal the wounds of a misguided Wall Street attack on traditional investment principles by lowering interest rates. The strategy worked, the economy rebounded, and Wall Street is trying to scramble back to where it was nearly six years ago. Think about the impact of changing interest rates on your Income Securities during the past five years. Bonds and Preferred Stocks; Government and Municipal Securities; they all moved higher in Market Value. Sure you felt wealthier, but the increase in your Annual Spendable Income got smaller and smaller. Your total income could well have decreased during the period as higher interest rate holdings were called away (at face value), and reinvestments were made at lower yields!
How many of you have mental bruises from the realization that you could have taken profits during the downward trajectory of the cycle, on the very securities that you now lament over. The nerve; falling below the price you paid for them years ago. But the income on these turncoats is the same as it was in 2004, when their prices were ten or twenty percent higher. This is the work of Mother Nature's financial twin sister. It's like acorns, snowfalls, and crocuses. You need to dress properly for seasonal changes and invest properly for cyclical changes. Remember the days of Bearer Bonds? There was never a whisper about Market Value erosian. Was it the IRS or Institutional Wall Street that took them away?
Higher rates are good for investors, particularly when retirement is a factor in your investment decisions. The more you receive for your reinvestment dollars, the more likely it is that you won't need a second job to maintain your standard of living. I know of no retail entity, from grocery store to cruise line that will accept the Market Value of your portfolio as payment for goods or services. Income pays the bills, more is always better than less, and only increased income levels can protect you from inflation! So, you say, how does a person take advantage of the cyclical nature of interest rates to garner the best possible income on investment quality securities? You might also ask why Wall Street makes such a fuss about the dismal bond market and offers more of their patented Sell Low, Buy High advisories, but that should be fairly obvious. An unhappy investor is Wall Streets best customer.
Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult, but it does require a change in focus from the statement bottom line. and the use of a few security types that you may not be 100% comfortable with. I'm going to assume that you are familiar with these investments, each of which could be considered (from time to time) for a spot in the well diversified Income Portion of your Asset Allocation: (1) The traditional individual Municipal and Corporate Bonds, Treasuries, Government Agency Securities, and Preferred Stocks. (2) The eyebrow raising Unit Trust varietals, Closed End Funds, Royalty Trusts, and REITs. [Purposely excluded: CDs and Money Funds, which are not investments by definition; CMOs and Zeros, mutations developed by some sicko MBAs; and Open End Mutual Funds, which just can't work because they are really "managed by the mob". i.e., investors.] The market rules that apply to all of these are fairly predictable, but the ability to create a safer, higher yielding, and flexible portfolio varies considerably within the security types. For example, most people who invest in Individual bonds wind up with a laundry list of odd lot positions, with short durations and low yields, designed for the benefit of that smiling guy in the big corner office. There is a better way, but you have to focus on income and be willing to trade occasionally.
The larger the portfolio, the more likely it is that you will be able to buy round lots of a diversified group of bonds, preferred stocks, etc. But regardless of size, individual securities of all kinds have liquidity problems, higher risk levels than are necessary, and lower yields spaced out over inconvenient time periods. Of the traditional types listed above, only preferred stock holdings are easily added to during upward interest rate movements, and cheap to take profits on when rates fall. The downside on all of these is their callability, in best-yield-first order. Wall Street loves these securities because they command the highest possible trading costs. costs that need not be disclosed to the consumer, particularly at issue. Unit Trusts are traditional securities set to music, a tune that generally assures the investor of a higher yield than is possible through personal portfolio creation. There are several additional advantages: instant diversification, quality, and monthly cash flow that may include principal (better in rising rate markets, ya follow?), and insulation from year-end swap scams. Unfortunately, the Unit Trusts are not managed, so there are few capital gains distributions to smile about, and once all of the securities are redeemed, the party is over. Trading opportunities, the very heart and soul of successful Portfolio Management, are practically non-existent.
What if you could own common stock in companies that manage the traditional Income Securities and other recognized income producers like real estate, energy production, mortgages, etc.? Closed End Funds (CEFs), REITs, and Royalty Trusts demand your attention. and don't let the idea of "leverage" spook you. AAA + insured corporate bonds, and Utility Preferred Stocks are "leverage". The sacred 30-year Treasury Bond is "leverage". Most corporations, all governments (and most private citizens) use leverage. Without leverage, most people would be commuting to work on bicycles. Every CEF can be researched as part of your selection process to determine how much leverage is involved, and the benefits. you're not going to be happy when you realize what you've been talked out of! CEFs, and the other Investment Company securities mentioned, are managed by professionals who are not taking their direction form that mob (also mentioned earlier). They provide you the opportunity to have a properly structured portfolio with a significantly higher yield, even after the management fees that are inside.
Certainly, a REIT or Royalty Trust is more risky than a CEF comprised of Preferred Stocks or Corporate Bonds, but here you have a way to participate in the widest variety of fixed and variable income alternatives in a much more manageable form. When prices rise, profit taking is routine in a liquid market; when prices fall, you can add to your position, increasing your yield and reducing your cost basis at the same time. Now don't start to salivate about the prospect of throwing all your money into Real Estate and/or Gas and Oil Pipelines. Diversify properly as you would with any other investments, and make sure that your living expenses (actual or projected) are taken care of by the less risky CEFs in the portfolio. In bond CEFs, you can get un-leveraged portfolios, state specific and/or insured Municipal portfolios, etc. Monthly income (frequently augmented by capital gains distributions) at a level that is most often significantly better than your broker can obtain for you. I told you you'd be angry!
Another feature of Investment Company shares (and please stay away from gimmicky, passively managed, or indexed types) is somewhat surprising and difficult to explain. The price you pay for the shares frequently represents a discount from the market value of the securities contained in the managed portfolio. So instead of buying a diversified group of illiquid individual securities at a premium, you are reaping the benefit of a portfolio of (quite possibly the same) securities at a discount. Additionally, and unlike regular Mutual Funds that can issue as many shares as they like without your approval, CEFs will give you the first shot at any additional shares they intend to distribute to investors.
Stop, put down the phone. Move into these securities calmly, without taking unnecessary losses on good quality holdings, and never buy a new issue. I meant to say: absolutely never buy a new issue, for all of the usual reasons. As with individual securities, there are reasons for unusually high or low yields, like too much risk or poor management. No matter how well managed a junk bond portfolio is, it's still just junk. So do a little research and spread your dollars around the many management companies that are out there. If your advisor tells you that all of this is risky, ill-advised foolishness. well, that's Wall Street, and the baby needs shoes.
Real Estate Investing Tips
What's an Investor to Do?
When CNNMoney.com posts an article about the King of Real Estate cashing out of his US holdings it's hard not to pay attention. Real Estate investing used to be easier in the US that's for sure. It used to be a new investor with some guts,education and motivation could make a killing in real estate investing. But things have changed rapidly over the last two years.The biggest change in the arena of investing has got to be the amount of investors out there chasing the deals. As Tom Barrack says in his CNN article "there's too much money chasing too few deals, with too much debt and too few brains". The internet has changed things in a big way also. With those two big changes an investor has to have a bigger better tool box to succeed in this era of incresed competition. Over the course of the next two weeks I'll be sharing some of the tools I use to find the deals. So come along for the ride and see if you can grab some new tools for the investor toolbox.
The three biggest factors responsible for changing real estate investing are:
1. The internet
2. The stock market fallout from 2002
3. California investors with lots of equity/money
One of the ways I invest in real estate is to look to markets all over the US. I use the website ofheo.gov as one of the tools for my research. OFHEO stands for Office of Federal Housing Enterprise Oversight. When you go to their website click on House Price Index, then click on House Price Index for the 3rd Quarter,{or whatever the most recent quarter is} and then scroll down to page 15 and 16 for appreciation by state. There you will see how each state compares in appreciation. Go to page 26 for the top MSA's, {Metropolitan Statistical Areas} to see which has the highest appreciation. Some investors target the top appreciation MSA's for investing. This can work well as long as you get in before things start leveling off. Just ask an investor who got in too late in Las Vegas for the huge run up in appreciation in 2003/2004. I know of several investors who are dontwanters there because they got in too late. That's not to say there aren't any good deals left in Vegas, it's just that before 2004 it was pretty much a slam dunk if you bought there.
The other way to use the ofheo website is to go to page 27 for the bottom appreciating MSA's. Some investors watch these types of markets very closely for signs of a turn around. These are markets that offer huge upside potential. Investors who got into the Denver market in 1995 reaped huge gains from this strategy. I suggest looking at both ways and decide which way you feel more comfortable using in yur real estate investing strategy and read other parts from the website to find other information that is useful.
When CNNMoney.com posts an article about the King of Real Estate cashing out of his US holdings it's hard not to pay attention. Real Estate investing used to be easier in the US that's for sure. It used to be a new investor with some guts,education and motivation could make a killing in real estate investing. But things have changed rapidly over the last two years.The biggest change in the arena of investing has got to be the amount of investors out there chasing the deals. As Tom Barrack says in his CNN article "there's too much money chasing too few deals, with too much debt and too few brains". The internet has changed things in a big way also. With those two big changes an investor has to have a bigger better tool box to succeed in this era of incresed competition. Over the course of the next two weeks I'll be sharing some of the tools I use to find the deals. So come along for the ride and see if you can grab some new tools for the investor toolbox.
The three biggest factors responsible for changing real estate investing are:
1. The internet
2. The stock market fallout from 2002
3. California investors with lots of equity/money
One of the ways I invest in real estate is to look to markets all over the US. I use the website ofheo.gov as one of the tools for my research. OFHEO stands for Office of Federal Housing Enterprise Oversight. When you go to their website click on House Price Index, then click on House Price Index for the 3rd Quarter,{or whatever the most recent quarter is} and then scroll down to page 15 and 16 for appreciation by state. There you will see how each state compares in appreciation. Go to page 26 for the top MSA's, {Metropolitan Statistical Areas} to see which has the highest appreciation. Some investors target the top appreciation MSA's for investing. This can work well as long as you get in before things start leveling off. Just ask an investor who got in too late in Las Vegas for the huge run up in appreciation in 2003/2004. I know of several investors who are dontwanters there because they got in too late. That's not to say there aren't any good deals left in Vegas, it's just that before 2004 it was pretty much a slam dunk if you bought there.
The other way to use the ofheo website is to go to page 27 for the bottom appreciating MSA's. Some investors watch these types of markets very closely for signs of a turn around. These are markets that offer huge upside potential. Investors who got into the Denver market in 1995 reaped huge gains from this strategy. I suggest looking at both ways and decide which way you feel more comfortable using in yur real estate investing strategy and read other parts from the website to find other information that is useful.
Investing in Income Trusts
Copyright 2006 AAA Consumer Credit Solutions
Now that the Canadian elections are over, Investors can focus on the business of making money. Let's leave ugly politics aside. In spite of my confessions, to CARP and 50 Plus last December, on insider trading with Income Trust Investments, which were published on their website: http://www.carp.ca . Investors, Senior Citizens and Equity-rich Home Owners are still looking for a good strategy to invest for income. Income Trusts remain the best Investments I know that would deliver: good Income and decent returns at a low level of risk. Under current market conditions, Trusts are the ideal investment. The new Conservative government likes profits, Investments and income. The word is out that they would leave alone the issue of Income Trusts taxation. They may even sweeten dividend tax credit incentives and capital gains as well.
For those investors who are worried about loosing Pension benefits through these Investment income receipts, the good news is that all Income from your Income Trusts or Dividend Funds does not get reported to CRA, or Revenue Canada on a dollar for dollar basis. Some Income is received as a return of capital, some as capital gains and some as dividend income. For example, investment earnings last year were close to $800.00 from one fund, for one Investor. The T3 Form she received reports a much smaller figure, $429.00, I believe. Due to the preferred tax treatment of Income Trusts, the rest of that income is reported as a return of her money.
Many an investor has a problem not knowing how to secure a steady and reliable fixed income source. Seniors cannot afford to loose their capital. Neither could they live retirement years on severely reduced returns from the guaranteed investment certificates, the GIC or Term Deposit. Equity Funds are still out of favor because Investors have not yet made the distinction between the frothy bubbles of the high tech stocks, the devaluation of equity funds and the promise of a steady income from Income Trust Mutual Funds. For too many, the term Mutual Fund has not yet recovered its sweet savor. Enron Officials still make the six o'clock news, flanked by an escort of the New York Police finest on their way to an appointment for sentencing with the judge of the day. Meanwhile, in Canada, not all Investors in the Eron Mortgage fraud have received their money back. And from Nortel Networks we still hear promises of great returns to come.
The poor, (as in pitiable), Investor is still confused and is in fact a good deal poorer because American Stocks and hence mutual funds have just about all given poor rates of returns for the past five years. The huge difference in investing in stocks compared to investing in mutual funds means that investing is Stocks carries a bigger risk because you must guess which one of the thousands of stocks to choose. This is not unlike placing a bet at the horse races. If you have no insider information on a specific stock, then there goes your money. And this could mean huge chunks, if not all of it. Investing in Mutual Funds on the contrary allows you to choose a fund, have the Fund Manager pick the basket of stocks, then design a strategy to reduce your risk. If, for example, one of those stocks in your Fund Manager's list was to perform poorly, you and he would have the other 99 Stocks or businesses to take up the slack. In a perfect world, you would not even notice that you held a Nortel or an Enron stock in your mix.
Mutual Funds therefore give advantages like diversification into different businesses and sectors, different countries, different management. They offer lower costs especially if you trade less. You enjoy economies because the Fund managers buy in bulk. You get special tax advantages. Special fund managers lend their expertise as Investment Managers to help you make decisions on your own investment selections. All of these are special advantages to all Investors investing in mutual funds generally. The same is true of income trusts funds.
I recommend that Beginning Investors and Seniors should favor only those Income Trusts that are organized as mutual Funds. We already listed their benefits over the single-stock pick Income Trusts. You could select a winner stock by chance, and consider yourself a Wiz Kid. On the other hand, you could choose a dud. Then, there goes your money. As an investor you ought to realize that these Trusts have a specific objective to deliver a specific monthly payment to their subscribers. You can tract the payment history of the fund you plan to select. Many would promise to pay from four cents to six cents per unit. So you could calculate the return on your money if the payments they promised were in fact made. Usually, these returns rival GIC returns. But, they lack the guarantees. So, you could be promised a 5% or 6% rate of return on your money as a monthly payment. In addition to that, many of these Income Trusts have delivered much higher rates of returns for three to five years. Unit prices have often increased as well so that at the end of one year, a $10,000.00 Investment could increase to $11,500.00, for example, in addition to delivering anywhere from $30.00 to $100.00 each month as a regular monthly pay cheque. This is not intended as investment advice. I cannot predict the returns on any fund. In fact I encourage you to seek investment advice from your own professionals.
If you are in the market for investment income, I would recommend generally that you select a good mutual fund style Income Trust as a reasonable income source. Some Advisors scare Investors away with the fear that the Income Trust market could fail. While that may have a higher probability with a single-business Income Trust, with the Mutual Fund style income trust, the possibility of drastic losses smilar to the technology bubble burst are more remote. In fact, many an Income Trust mutual fund is a balanced fund. Balanced Funds are the funds recommended in the industry for those Investors and seniors averse to taking unnecessary risks. This is why I encourage Investors to use Income Trusts as a preferred Investment Income source. You can join the dialogue, judge for yourself and learn by visiting the Blog on the subject with this link: http://www.investinginincometrusts.blogspot.com .
Now, I believe Investors are beginning to understand the difference between an investment in a single business organized as an Income Trust and a Mutual Fund Income Trust. Investors still need more help to remove much mis-information in the debates over the safety and risk levels of Income trusts. You will be pleasantly surprised at the wealth of information available on the clever, tax-saving strategies for income trusts. The savings potential are sufficiently large to rival the new ideas for huge savings with fast repayment of a mortgage.
You heard it here first. My call now is that Income Trusts are the way to go. Pension Funds and Institutional Investors have yet to complete their massive entry into the Income Trust market because of bad press and intense political scrutiny. Politics ought not to have a place in the pocket books of Canadian Investors. Unfortunately in Canada, our politics this time around have hit seniors and other investors very hard in places where it really hurts.
Now that the Canadian elections are over, Investors can focus on the business of making money. Let's leave ugly politics aside. In spite of my confessions, to CARP and 50 Plus last December, on insider trading with Income Trust Investments, which were published on their website: http://www.carp.ca . Investors, Senior Citizens and Equity-rich Home Owners are still looking for a good strategy to invest for income. Income Trusts remain the best Investments I know that would deliver: good Income and decent returns at a low level of risk. Under current market conditions, Trusts are the ideal investment. The new Conservative government likes profits, Investments and income. The word is out that they would leave alone the issue of Income Trusts taxation. They may even sweeten dividend tax credit incentives and capital gains as well.
For those investors who are worried about loosing Pension benefits through these Investment income receipts, the good news is that all Income from your Income Trusts or Dividend Funds does not get reported to CRA, or Revenue Canada on a dollar for dollar basis. Some Income is received as a return of capital, some as capital gains and some as dividend income. For example, investment earnings last year were close to $800.00 from one fund, for one Investor. The T3 Form she received reports a much smaller figure, $429.00, I believe. Due to the preferred tax treatment of Income Trusts, the rest of that income is reported as a return of her money.
Many an investor has a problem not knowing how to secure a steady and reliable fixed income source. Seniors cannot afford to loose their capital. Neither could they live retirement years on severely reduced returns from the guaranteed investment certificates, the GIC or Term Deposit. Equity Funds are still out of favor because Investors have not yet made the distinction between the frothy bubbles of the high tech stocks, the devaluation of equity funds and the promise of a steady income from Income Trust Mutual Funds. For too many, the term Mutual Fund has not yet recovered its sweet savor. Enron Officials still make the six o'clock news, flanked by an escort of the New York Police finest on their way to an appointment for sentencing with the judge of the day. Meanwhile, in Canada, not all Investors in the Eron Mortgage fraud have received their money back. And from Nortel Networks we still hear promises of great returns to come.
The poor, (as in pitiable), Investor is still confused and is in fact a good deal poorer because American Stocks and hence mutual funds have just about all given poor rates of returns for the past five years. The huge difference in investing in stocks compared to investing in mutual funds means that investing is Stocks carries a bigger risk because you must guess which one of the thousands of stocks to choose. This is not unlike placing a bet at the horse races. If you have no insider information on a specific stock, then there goes your money. And this could mean huge chunks, if not all of it. Investing in Mutual Funds on the contrary allows you to choose a fund, have the Fund Manager pick the basket of stocks, then design a strategy to reduce your risk. If, for example, one of those stocks in your Fund Manager's list was to perform poorly, you and he would have the other 99 Stocks or businesses to take up the slack. In a perfect world, you would not even notice that you held a Nortel or an Enron stock in your mix.
Mutual Funds therefore give advantages like diversification into different businesses and sectors, different countries, different management. They offer lower costs especially if you trade less. You enjoy economies because the Fund managers buy in bulk. You get special tax advantages. Special fund managers lend their expertise as Investment Managers to help you make decisions on your own investment selections. All of these are special advantages to all Investors investing in mutual funds generally. The same is true of income trusts funds.
I recommend that Beginning Investors and Seniors should favor only those Income Trusts that are organized as mutual Funds. We already listed their benefits over the single-stock pick Income Trusts. You could select a winner stock by chance, and consider yourself a Wiz Kid. On the other hand, you could choose a dud. Then, there goes your money. As an investor you ought to realize that these Trusts have a specific objective to deliver a specific monthly payment to their subscribers. You can tract the payment history of the fund you plan to select. Many would promise to pay from four cents to six cents per unit. So you could calculate the return on your money if the payments they promised were in fact made. Usually, these returns rival GIC returns. But, they lack the guarantees. So, you could be promised a 5% or 6% rate of return on your money as a monthly payment. In addition to that, many of these Income Trusts have delivered much higher rates of returns for three to five years. Unit prices have often increased as well so that at the end of one year, a $10,000.00 Investment could increase to $11,500.00, for example, in addition to delivering anywhere from $30.00 to $100.00 each month as a regular monthly pay cheque. This is not intended as investment advice. I cannot predict the returns on any fund. In fact I encourage you to seek investment advice from your own professionals.
If you are in the market for investment income, I would recommend generally that you select a good mutual fund style Income Trust as a reasonable income source. Some Advisors scare Investors away with the fear that the Income Trust market could fail. While that may have a higher probability with a single-business Income Trust, with the Mutual Fund style income trust, the possibility of drastic losses smilar to the technology bubble burst are more remote. In fact, many an Income Trust mutual fund is a balanced fund. Balanced Funds are the funds recommended in the industry for those Investors and seniors averse to taking unnecessary risks. This is why I encourage Investors to use Income Trusts as a preferred Investment Income source. You can join the dialogue, judge for yourself and learn by visiting the Blog on the subject with this link: http://www.investinginincometrusts.blogspot.com .
Now, I believe Investors are beginning to understand the difference between an investment in a single business organized as an Income Trust and a Mutual Fund Income Trust. Investors still need more help to remove much mis-information in the debates over the safety and risk levels of Income trusts. You will be pleasantly surprised at the wealth of information available on the clever, tax-saving strategies for income trusts. The savings potential are sufficiently large to rival the new ideas for huge savings with fast repayment of a mortgage.
You heard it here first. My call now is that Income Trusts are the way to go. Pension Funds and Institutional Investors have yet to complete their massive entry into the Income Trust market because of bad press and intense political scrutiny. Politics ought not to have a place in the pocket books of Canadian Investors. Unfortunately in Canada, our politics this time around have hit seniors and other investors very hard in places where it really hurts.
Commodity Investing
There are plenty of people who will manage a commodity investment for you, but you need to choose carefully as most lose!
This article is all about picking a manager or doing it yourself via a software program and targeting the big gains that make commodity investing so lucrative.
Risk & Reward
Commodity investing by its very nature is risky, however with risk goes reward. The real key is management of risk and this is what separates out the great performers from the losers.
Reducing risk and increasing returns
Commodity investing is popular as you are investing in a non correlated investment to stocks.
Within the commodity or futures markets you have great diversification and fantastic profit potential.
There are managers who target and make 30 - 50% gains per annum in commodity investing, so let's find out how we target them.
Let's look first at managers to avoid:
1. A broker
On the desk of commodity firm "who will help you" trade to make money. Keep in mind, he is a broker not a money manager and chances are he won't make you money.
If brokers could make money they wouldn't be brokers
2. Managers with hypothetical track records
These managers simply launch a performance graph that looks great in hindsight (lets face it we can all make money in hindsight) and then very often collapses in real time trading.
Forget this group.
3. Managers claiming real time track record but no audit
Not only do you want the track record verified, you want a statement that the account you are investing in is representative of all funds under management.
4. Drawdown
Watch out for highly volatile performance the bigger the drawdown the bigger the risk of ruin.
Generally, look for manager who has smooth equity curve.
Many managers have drawdowns of 50% or more avoid them. Look for drawdowns of around 30% max.
5. Conflict of interest
Check your manager does not earn a proportion of the dealing fees, as this sets up a conflict of interest. They may deal for commission, rather than profits.
Try and get managers who have confidence to be paid on performance only.
Keeping the above in mind you need to look for managers that are professional, or buy a software program follow the signals and do it yourself -
This latter option is a great way, you are your own manager and of course don't pay fees!
Discretionary managers
Real time performance, audited figures and responsible money management, as mentioned above. You may also like to check the following:
Find out about how much money they have under management, their methodology and how long their track record is 3 - 5 years is enough. Beware of short track records as they could have been lucky!
Make sure your comfortable with them, their investment approach and money management.
Like all managers they will have losses, you should stick with them through these periods and confidence in them to get it right will help.
Software be your own manager
Most commodities trend and there are a lot of good software programs you can buy that, can target 30 - 50% in annual gains.
This means you don't have to pay a manager and have control over your investment.
With the internet and the power of computers and the recent developments in software, more and more investors are taking this route.
You need a simple system; you can understand, can apply with confidence, with real time track record and your all set.
Note: You may want to read our other article futures trading software for in depth way to pick a system to invest in commodities for big gains.
Commodity investing Which way is best?
Commodity investing in this way if you have the right trading system, can be very lucrative. You have the potential to out perform the bulk of managers and keep all the profits yourself.
You can give it to a broker to execute it for you, or place the signals yourself.
This article is all about picking a manager or doing it yourself via a software program and targeting the big gains that make commodity investing so lucrative.
Risk & Reward
Commodity investing by its very nature is risky, however with risk goes reward. The real key is management of risk and this is what separates out the great performers from the losers.
Reducing risk and increasing returns
Commodity investing is popular as you are investing in a non correlated investment to stocks.
Within the commodity or futures markets you have great diversification and fantastic profit potential.
There are managers who target and make 30 - 50% gains per annum in commodity investing, so let's find out how we target them.
Let's look first at managers to avoid:
1. A broker
On the desk of commodity firm "who will help you" trade to make money. Keep in mind, he is a broker not a money manager and chances are he won't make you money.
If brokers could make money they wouldn't be brokers
2. Managers with hypothetical track records
These managers simply launch a performance graph that looks great in hindsight (lets face it we can all make money in hindsight) and then very often collapses in real time trading.
Forget this group.
3. Managers claiming real time track record but no audit
Not only do you want the track record verified, you want a statement that the account you are investing in is representative of all funds under management.
4. Drawdown
Watch out for highly volatile performance the bigger the drawdown the bigger the risk of ruin.
Generally, look for manager who has smooth equity curve.
Many managers have drawdowns of 50% or more avoid them. Look for drawdowns of around 30% max.
5. Conflict of interest
Check your manager does not earn a proportion of the dealing fees, as this sets up a conflict of interest. They may deal for commission, rather than profits.
Try and get managers who have confidence to be paid on performance only.
Keeping the above in mind you need to look for managers that are professional, or buy a software program follow the signals and do it yourself -
This latter option is a great way, you are your own manager and of course don't pay fees!
Discretionary managers
Real time performance, audited figures and responsible money management, as mentioned above. You may also like to check the following:
Find out about how much money they have under management, their methodology and how long their track record is 3 - 5 years is enough. Beware of short track records as they could have been lucky!
Make sure your comfortable with them, their investment approach and money management.
Like all managers they will have losses, you should stick with them through these periods and confidence in them to get it right will help.
Software be your own manager
Most commodities trend and there are a lot of good software programs you can buy that, can target 30 - 50% in annual gains.
This means you don't have to pay a manager and have control over your investment.
With the internet and the power of computers and the recent developments in software, more and more investors are taking this route.
You need a simple system; you can understand, can apply with confidence, with real time track record and your all set.
Note: You may want to read our other article futures trading software for in depth way to pick a system to invest in commodities for big gains.
Commodity investing Which way is best?
Commodity investing in this way if you have the right trading system, can be very lucrative. You have the potential to out perform the bulk of managers and keep all the profits yourself.
You can give it to a broker to execute it for you, or place the signals yourself.
Real Estate Investing Strategy: Make Money With Wholesaling
Your exit strategy is an extremely important part of your real estate investing business. In fact, it is one of the most important parts. Sometimes investors get excited because they learn how to buy properties, they find them and they get the money lined up to purchase them. But after the purchase, the excitement dies, as they have no idea what to do with their newly owned properties.
You must know your exit strategy when you buy. What do you plan to do with the property? Knowing this allows you to make all types of decisions, from how much to offer, to what kind of financing to use, and more. One strategy is to incorporate wholesaling into your real estate business plans.
What is Wholesaling?
It is simply finding a bargain property and passing it on to a bargain hunter. That bargain hunter will be an investor who will either purchase the property to resell it or purchase it to hold it for rental income. Your profit as a wholesaler should be between $5000 and $15,000 on each house. In some cases it will be higher than $15,000 and on some deals your profit may be a little lower than $5,000.
Why wholesale?
Real estate investors choose to wholesale properties for a few reasons. They could be:1. Quick cash - it is possible to turn a property around anywhere from 7 to 45 days and get cash in your pocket. If you need to get your hands on some cash quickly, this would be a reason to wholesale. Or, you may not need the cash immediately. You might just want to build your cash reserves. Wholesaling is a good way to do this quickly.
2. Too many houses - maybe you're good at finding houses, but you find more than you need or can use at any given time. If this is the case, wholesaling is a smart move for you. You can still profit from your locating skills, even if you aren't going to keep the property for your own personal portfolio.
3. Flexibility - at any given time, you can determine whether you want to keep a property or sell it. This gives you flexibility as you locate and purchase properties.
An important fact to remember!
Probably the most important thing that you need to remember when you decide to wholesale is: your buyer should get the majority of the profit! This is important because your buyer will be the one to purchase and rehab the property. There has to be enough room in the deal for your buyer to do this and still retain a nice amount of money for cash out and/or equity.
This does not mean that you find properties and give them away for $1,000. Your profit will vary depending on the house, but the better you are at locating properties and putting together offers, the greater your profit will be - while still maintaining an excellent profit for your buyer.
Charles Petty, J.D., MBA , and his wife have been involved in over 600 real estate transactions in the last 7 years and are the creators of the Ultimate Turn Key Real Estate Investing Systems.T For a FREE Special Report on how to make $10,000 in 30 days and Six Figures in Six Months buying and selling houses using their Ultimate Turn Key Systems visit their website right now: http://www.RealEstateInvestingProfits.com or call 1-800-311-9228
You must know your exit strategy when you buy. What do you plan to do with the property? Knowing this allows you to make all types of decisions, from how much to offer, to what kind of financing to use, and more. One strategy is to incorporate wholesaling into your real estate business plans.
What is Wholesaling?
It is simply finding a bargain property and passing it on to a bargain hunter. That bargain hunter will be an investor who will either purchase the property to resell it or purchase it to hold it for rental income. Your profit as a wholesaler should be between $5000 and $15,000 on each house. In some cases it will be higher than $15,000 and on some deals your profit may be a little lower than $5,000.
Why wholesale?
Real estate investors choose to wholesale properties for a few reasons. They could be:1. Quick cash - it is possible to turn a property around anywhere from 7 to 45 days and get cash in your pocket. If you need to get your hands on some cash quickly, this would be a reason to wholesale. Or, you may not need the cash immediately. You might just want to build your cash reserves. Wholesaling is a good way to do this quickly.
2. Too many houses - maybe you're good at finding houses, but you find more than you need or can use at any given time. If this is the case, wholesaling is a smart move for you. You can still profit from your locating skills, even if you aren't going to keep the property for your own personal portfolio.
3. Flexibility - at any given time, you can determine whether you want to keep a property or sell it. This gives you flexibility as you locate and purchase properties.
An important fact to remember!
Probably the most important thing that you need to remember when you decide to wholesale is: your buyer should get the majority of the profit! This is important because your buyer will be the one to purchase and rehab the property. There has to be enough room in the deal for your buyer to do this and still retain a nice amount of money for cash out and/or equity.
This does not mean that you find properties and give them away for $1,000. Your profit will vary depending on the house, but the better you are at locating properties and putting together offers, the greater your profit will be - while still maintaining an excellent profit for your buyer.
Charles Petty, J.D., MBA , and his wife have been involved in over 600 real estate transactions in the last 7 years and are the creators of the Ultimate Turn Key Real Estate Investing Systems.T For a FREE Special Report on how to make $10,000 in 30 days and Six Figures in Six Months buying and selling houses using their Ultimate Turn Key Systems visit their website right now: http://www.RealEstateInvestingProfits.com or call 1-800-311-9228
Investing in New Zealand - Learn how to Find Unique Investment Opportunities
Investing in New Zealand - Learn how to Find Unique Investment Opportunities Copyright 2005 Ofer Shoshani
Investing in New Zealand might be much easier thaninvesting in other western countries, thank to theexcellent infrastructure, the low taxes and the assistanceof the supportive NZ government.
Technological Face of New Zealand
New Zealand has a unique reputation within the globalmarket place. This country offers a complicated dichotomy -a technological savvy environment with a laid backattitude. New Zealanders are known for their ability to get things done, their wiliness to be on the cutting-edge of technology, and their friendly, welcoming attitudes. This combination comes together to form an inviting environment for investment.
New Zealand - All Wired Up
New Zealand has made aggressive steps towards encouraging investment and advance technology interests. In fact, New Zealanders are notorious for being early adopters of technology. New Zealand has one of the highest investments in information technology in proportion of GDP in the world. New Zealand may be on the other side of the world, but the aggressive technological advances make New Zealand seem like a next-door neighbor.
New Zealand has several sophisticated telecommunicationaccess points, with companies such as AT&T, BritishTelecom, Bell Atlantic, Sprint Cable & Wireless and Telstra operating affiliate sites in New Zealand. In 2000, Southern Cross Cable established a sophisticated fibre optic system through out New Zealand, linking via satellite systems to San Francisco, Hawaii, Australia and Fiji. This high powered system allows the transfer of data at lightening speeds, the equivalent of two full-length motion pictures every second.
New Zealand's Potential
Some people may not be aware of the potential of NewZealand - after all, this seemingly sleepy island issometimes referred to as a suburb to the rest of the world.But if the potential for investment of New Zealand is overlooked, it's a serious mistake. New Zealand offers a secure and inviting business environment. International investors are given an opportunity to invest in highly specialized industries, such as information and communications technology, wood processing, biotechnology, niche manufacturing, call centers, and screen production. With a highly educated work force, and a welcoming corporate tax rate of 33% and either little or no capital gains tax, New Zealand offers the perfect platform for business investments.
New Zealand has a proven track record for international investors - Australian investors have invested nearly 20 billion NDZ, the United Kingdom 7.3 billion NDZ, and the US 5.6 billion NDZ in New Zealand business. New Zealand's efficient, market based economy makes business investment in New Zealand straight-forward and efficient. New Zealand offers a positive environment for international investors, giving them an opportunity to position themselves in innovative, high value research and development. In fact, New Zealand offers 100% deductibility for research and development expenses.
New Zealand government is highly supportive ofinternational investment in the New Zealand economy and is actively working to create investment opportunities throughout New Zealand.
More on New Zealand Real Estate & Investment Opportunities could be found at http://nzpassport.com/artman/publish/cat_index_48.shtml
Investing in New Zealand might be much easier thaninvesting in other western countries, thank to theexcellent infrastructure, the low taxes and the assistanceof the supportive NZ government.
Technological Face of New Zealand
New Zealand has a unique reputation within the globalmarket place. This country offers a complicated dichotomy -a technological savvy environment with a laid backattitude. New Zealanders are known for their ability to get things done, their wiliness to be on the cutting-edge of technology, and their friendly, welcoming attitudes. This combination comes together to form an inviting environment for investment.
New Zealand - All Wired Up
New Zealand has made aggressive steps towards encouraging investment and advance technology interests. In fact, New Zealanders are notorious for being early adopters of technology. New Zealand has one of the highest investments in information technology in proportion of GDP in the world. New Zealand may be on the other side of the world, but the aggressive technological advances make New Zealand seem like a next-door neighbor.
New Zealand has several sophisticated telecommunicationaccess points, with companies such as AT&T, BritishTelecom, Bell Atlantic, Sprint Cable & Wireless and Telstra operating affiliate sites in New Zealand. In 2000, Southern Cross Cable established a sophisticated fibre optic system through out New Zealand, linking via satellite systems to San Francisco, Hawaii, Australia and Fiji. This high powered system allows the transfer of data at lightening speeds, the equivalent of two full-length motion pictures every second.
New Zealand's Potential
Some people may not be aware of the potential of NewZealand - after all, this seemingly sleepy island issometimes referred to as a suburb to the rest of the world.But if the potential for investment of New Zealand is overlooked, it's a serious mistake. New Zealand offers a secure and inviting business environment. International investors are given an opportunity to invest in highly specialized industries, such as information and communications technology, wood processing, biotechnology, niche manufacturing, call centers, and screen production. With a highly educated work force, and a welcoming corporate tax rate of 33% and either little or no capital gains tax, New Zealand offers the perfect platform for business investments.
New Zealand has a proven track record for international investors - Australian investors have invested nearly 20 billion NDZ, the United Kingdom 7.3 billion NDZ, and the US 5.6 billion NDZ in New Zealand business. New Zealand's efficient, market based economy makes business investment in New Zealand straight-forward and efficient. New Zealand offers a positive environment for international investors, giving them an opportunity to position themselves in innovative, high value research and development. In fact, New Zealand offers 100% deductibility for research and development expenses.
New Zealand government is highly supportive ofinternational investment in the New Zealand economy and is actively working to create investment opportunities throughout New Zealand.
More on New Zealand Real Estate & Investment Opportunities could be found at http://nzpassport.com/artman/publish/cat_index_48.shtml
Where to invest your money
If you are new to investing, or even if you've been playing the market for a while, investment options can be overwhelming. Stocks, bonds, mutual funds. How do you pick the best place to invest your money? That's quite a decision!
Here are some tips that can help you get started:
If you are planning for a long-term investment, it may be wisest to go with stocks. History shows that stocks outperform other investing options over the long term. For example, from 1926 to 2004, the stock market had an average annual gain of 10.4%, compared with only 5.4% for bonds and even less for other forms of investing.
That said, stocks may not be such a good option for short-term investing. They tend to be more risky and can undergo severe losses. Unless you're planning to keep your money there for a long time, you might not want to weather the stress of the stock market's ups and downs. Overall, a company's earnings are going to be the biggest player in a stock's fluctuation.
If you're willing to take a little bit of risk with your investing-or a lot-you probably will notice a bigger payoff. Stocks, for example, are a riskier investment than bonds. But again, stocks tend to bring in a much higher return. On the other hand, there is also the chance that your stock will dip and you may suffer a great loss. That's all part of the game.
If you're looking for a low-risk, surefire investment strategy, U.S. Treasury bonds may be the way to go. The government has a lot of power over these bonds. Because of this, investing in these bonds is generally considered risk-free. Keep in mind, however, that bonds don't do so well when interest rates rise. Conversely, when interest rates go down, bond prices rise. This is particularly true with long-term bonds.
To be safe, the best advice is to diversify your portfolio. If you practice investing in a number of different areas, you are least likely to lose it all. (Remember the Enron scandal? Don't make that mistake!) Some investments will go up, others will go down. But at least you can be pretty sure you won't lose it all. Chances are, with a little research, some self-education, and careful investing, you'll build your savings substantially. Happy investing
Here are some tips that can help you get started:
If you are planning for a long-term investment, it may be wisest to go with stocks. History shows that stocks outperform other investing options over the long term. For example, from 1926 to 2004, the stock market had an average annual gain of 10.4%, compared with only 5.4% for bonds and even less for other forms of investing.
That said, stocks may not be such a good option for short-term investing. They tend to be more risky and can undergo severe losses. Unless you're planning to keep your money there for a long time, you might not want to weather the stress of the stock market's ups and downs. Overall, a company's earnings are going to be the biggest player in a stock's fluctuation.
If you're willing to take a little bit of risk with your investing-or a lot-you probably will notice a bigger payoff. Stocks, for example, are a riskier investment than bonds. But again, stocks tend to bring in a much higher return. On the other hand, there is also the chance that your stock will dip and you may suffer a great loss. That's all part of the game.
If you're looking for a low-risk, surefire investment strategy, U.S. Treasury bonds may be the way to go. The government has a lot of power over these bonds. Because of this, investing in these bonds is generally considered risk-free. Keep in mind, however, that bonds don't do so well when interest rates rise. Conversely, when interest rates go down, bond prices rise. This is particularly true with long-term bonds.
To be safe, the best advice is to diversify your portfolio. If you practice investing in a number of different areas, you are least likely to lose it all. (Remember the Enron scandal? Don't make that mistake!) Some investments will go up, others will go down. But at least you can be pretty sure you won't lose it all. Chances are, with a little research, some self-education, and careful investing, you'll build your savings substantially. Happy investing
Invest In a Golf Cart and save your energy for the Game
If you've been playing golf for a while, you know that your golf bag can get quite heavy after just a few holes. While the heaviness of the golf bag isn't enough to keep you from getting out on the green, it does wear on you and you'll find that you are tired after the end of a day of golf. One of the best ways to prevent fatigue after a great game of golf is to invest in a golf cart also known as a golf trolley. These awesome little contraptions can help you maneuver your golf bag and gear from hole to hole allowing you to concentrate on your game.
A golf trolley may not be an ideal investment for golfers that only get out on the course once a year, but if you play even a couple times a month you'll find that a golf caddy is one of the best investments you'll ever make where your golf game is considered. While carrying your golf bag isn't the end of the world and doesn't require extreme strength, many avid golfers simply find that the extra fatigue after 12 or 18 holes simply isn't worth it because it does detract from their concentration as well as their accuracy. If you've noticed this, you should definitely look into a golf cart of some kind. There is a golf caddy for everyone, no matter where they play or how often.
There are several types of golf carts for you to choose from. There are electric or motorized golf cart options, golf pull cart options, and even a golf caddy that is controlled with a remote so that your clubs are carried throughout the course literally hands free. How much you play will really depend on what type of golf cart is for you, but with a wide selection out there every golf player will find something that is right for him or herself.
One of the best golf carts currently offered is the Golf Caddy X2. The X2 golf caddy is an electric cart that will help you guide your golf gear through the courses very simply and easily. You don't have to worry about the X2 tearing up the green or being too noisy and disturbing other golfers. This is a high quality electric golf cart that will allow you to enjoy your golf game all that much more. The price of the X2 is right around $500.00 which isn't all that bad if you consider all that it will do for you and how much easier your golf game has just become.
If you are really looking for a state of the art electric golf trolley, you should definitely look into the remote control golf caddy known as the Caddy X3R. This is an awesome golf bag cart that will allow you to truly move your golf gear from hole to hole with very little effort. A push of the button on the tiny remote that will fit easily into your pocket will have your cart guided right to you. Again, this is not a noisy or destructive golf caddy, so you will be allowed to use it on the greens if need be. This extremely upscale golf caddy can be purchased for right about $800.00, which is impressive for the technology it offers.
If you don't golf often enough to spend much on a golf cart, you can always opt for a golf pull cart. This is simply a cart on two wheels that will make guiding your golf gear from hole to hole much easier. There will be no shoulder fatigue as you maneuver around the course; you simply have to pull your golf bag along with you.
A golf trolley may not be an ideal investment for golfers that only get out on the course once a year, but if you play even a couple times a month you'll find that a golf caddy is one of the best investments you'll ever make where your golf game is considered. While carrying your golf bag isn't the end of the world and doesn't require extreme strength, many avid golfers simply find that the extra fatigue after 12 or 18 holes simply isn't worth it because it does detract from their concentration as well as their accuracy. If you've noticed this, you should definitely look into a golf cart of some kind. There is a golf caddy for everyone, no matter where they play or how often.
There are several types of golf carts for you to choose from. There are electric or motorized golf cart options, golf pull cart options, and even a golf caddy that is controlled with a remote so that your clubs are carried throughout the course literally hands free. How much you play will really depend on what type of golf cart is for you, but with a wide selection out there every golf player will find something that is right for him or herself.
One of the best golf carts currently offered is the Golf Caddy X2. The X2 golf caddy is an electric cart that will help you guide your golf gear through the courses very simply and easily. You don't have to worry about the X2 tearing up the green or being too noisy and disturbing other golfers. This is a high quality electric golf cart that will allow you to enjoy your golf game all that much more. The price of the X2 is right around $500.00 which isn't all that bad if you consider all that it will do for you and how much easier your golf game has just become.
If you are really looking for a state of the art electric golf trolley, you should definitely look into the remote control golf caddy known as the Caddy X3R. This is an awesome golf bag cart that will allow you to truly move your golf gear from hole to hole with very little effort. A push of the button on the tiny remote that will fit easily into your pocket will have your cart guided right to you. Again, this is not a noisy or destructive golf caddy, so you will be allowed to use it on the greens if need be. This extremely upscale golf caddy can be purchased for right about $800.00, which is impressive for the technology it offers.
If you don't golf often enough to spend much on a golf cart, you can always opt for a golf pull cart. This is simply a cart on two wheels that will make guiding your golf gear from hole to hole much easier. There will be no shoulder fatigue as you maneuver around the course; you simply have to pull your golf bag along with you.
The Benefits of Real Estate Investing
Real estate investing is increasing at a staggering rate these days. More and more individuals are learning that real estate investments can offer wonderful earning potential. Real estate investing is a process which has many attractive qualities that make it a viable money-producing opportunity. There are a number of benefits that go along with purchasing real estate investments and the following paragraphs will highlight some of these benefits. As you will see these attributes make it quite apparent why individuals are becoming interested in investment opportunities of this type.
Build Equity in the PropertyFor those individuals who are looking to invest in real estate on a long-term scale, there are certain benefits to doing so. When individuals purchase real estate and hold onto it for awhile, they are ultimately able to build a good deal of equity in the home they are purchasing as an investment property. Equity is a beneficial aspect for the homeowners as the more equity a property has, the more that it adds to the net worth thereof. This is an important and frequently cited reason why individuals do choose to invest in real estate and maintain the property as an investment for a long period of time thereafter.
Possible Tax Advantages Another benefit of purchasing real estate for investment purposes is the possible tax advantages that one may receive as a result of owning the investment property. Depending on a variety of factors, individuals who own investment property may just see some gracious tax advantages as a result. Therefore, individuals may be more than ready to invest in real estate once they have looked into possible tax advantages that result from engaging in a transaction of this type.
High Rate of Return on the Sale of the PropertyWhen the investment property is sold somewhere down the road, the homeowners will most likely see a high rate of return on the sale of the property. Depending on the market at the time of the purchase and sale, this rate of return may be more than generous when one looks at the profit margin. Some factors to consider if looking to purchase property and sell it within a short period of time after the initial purchase include current market for property sales, renovations and upkeep necessary to get the property ready for the sale and ability to hold on to the property longer if a sale does not come as quickly as one had expected. If one has considered all of these possibilities and still feels that they will be able to sell the property quickly, then this is a wonderful benefit of real estate investment.
Lease the Property to TenantsWhile some real estate investors choose to purchase the property and then sell it shortly thereafter, there are other individuals who have a different reason for purchasing investment properties and wish to obtain a profit by other means. These individuals are ones who prefer to purchase the property and then lease it out to tenants. By doing so, the homeowners are able to pay for any mortgage which may be present on the property plus receive any additional income from leasing the property to tenants.
Investing in real estate is a wonderful way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property once the individual feels like doing so. These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!
Build Equity in the PropertyFor those individuals who are looking to invest in real estate on a long-term scale, there are certain benefits to doing so. When individuals purchase real estate and hold onto it for awhile, they are ultimately able to build a good deal of equity in the home they are purchasing as an investment property. Equity is a beneficial aspect for the homeowners as the more equity a property has, the more that it adds to the net worth thereof. This is an important and frequently cited reason why individuals do choose to invest in real estate and maintain the property as an investment for a long period of time thereafter.
Possible Tax Advantages Another benefit of purchasing real estate for investment purposes is the possible tax advantages that one may receive as a result of owning the investment property. Depending on a variety of factors, individuals who own investment property may just see some gracious tax advantages as a result. Therefore, individuals may be more than ready to invest in real estate once they have looked into possible tax advantages that result from engaging in a transaction of this type.
High Rate of Return on the Sale of the PropertyWhen the investment property is sold somewhere down the road, the homeowners will most likely see a high rate of return on the sale of the property. Depending on the market at the time of the purchase and sale, this rate of return may be more than generous when one looks at the profit margin. Some factors to consider if looking to purchase property and sell it within a short period of time after the initial purchase include current market for property sales, renovations and upkeep necessary to get the property ready for the sale and ability to hold on to the property longer if a sale does not come as quickly as one had expected. If one has considered all of these possibilities and still feels that they will be able to sell the property quickly, then this is a wonderful benefit of real estate investment.
Lease the Property to TenantsWhile some real estate investors choose to purchase the property and then sell it shortly thereafter, there are other individuals who have a different reason for purchasing investment properties and wish to obtain a profit by other means. These individuals are ones who prefer to purchase the property and then lease it out to tenants. By doing so, the homeowners are able to pay for any mortgage which may be present on the property plus receive any additional income from leasing the property to tenants.
Investing in real estate is a wonderful way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property once the individual feels like doing so. These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!
Four Great Reasons To Invest In Real Estate
Copyright 2006 David Schneider
Why is Real Estate such a great investment? It's because of the flexibility of it four potential benefits.
Think about this, how many investments are out there that give you the potential of monthly cash flow, having your investment paid by for by somebody else, gives you tax savings and benefits if you qualify and has the potential of increasing in value?
Well if you think about it, there are not very many. That's why so many people who have achieved wealth have done it in real estate.
The best thing about investing in real estate is that you can choose what you buy and the way you buy it. What I mean by this is you pick the type of property, the location, the condition and you determine the price that you are willing to pay. How great is that?
If you want more cash flow, you could buy more units or arrange the financing so that the rental real estate produces more cash flow.
If you want to get the property paid for quicker you could use any excess cash flow and apply it to the loans.
If you want to reduce your taxes, you can use a benefit called depreciation to offset your income.
If you want big chunks of cash you could focus on appreciation. You could buy undervalued properties and sell them for a higher value or you could buy properties, fix them up and sell them for a higher price.
It's amazing how many ways you can make money by investing in real estate when you understand the four benefits. The key is to make sure that you have set up a way to measure your results and to see if you are maximizing the benefits that you want.
You can measure your results by using a Excel spreadsheet. Make it easy to understand and easy to use and you'll be amazed how fast you can see what benefits the real estate is providing you. You should use a tool like this before you buy, during your ownership and when you considering selling. I've created a simple one called the real estate analyzer that is available at http://landlordtools.com/landlord-software.htm. By either creating your own spreadsheet or using one that is already made, you will now become an investor that understand how to make any real estate investment work for you.
Why is Real Estate such a great investment? It's because of the flexibility of it four potential benefits.
Think about this, how many investments are out there that give you the potential of monthly cash flow, having your investment paid by for by somebody else, gives you tax savings and benefits if you qualify and has the potential of increasing in value?
Well if you think about it, there are not very many. That's why so many people who have achieved wealth have done it in real estate.
The best thing about investing in real estate is that you can choose what you buy and the way you buy it. What I mean by this is you pick the type of property, the location, the condition and you determine the price that you are willing to pay. How great is that?
If you want more cash flow, you could buy more units or arrange the financing so that the rental real estate produces more cash flow.
If you want to get the property paid for quicker you could use any excess cash flow and apply it to the loans.
If you want to reduce your taxes, you can use a benefit called depreciation to offset your income.
If you want big chunks of cash you could focus on appreciation. You could buy undervalued properties and sell them for a higher value or you could buy properties, fix them up and sell them for a higher price.
It's amazing how many ways you can make money by investing in real estate when you understand the four benefits. The key is to make sure that you have set up a way to measure your results and to see if you are maximizing the benefits that you want.
You can measure your results by using a Excel spreadsheet. Make it easy to understand and easy to use and you'll be amazed how fast you can see what benefits the real estate is providing you. You should use a tool like this before you buy, during your ownership and when you considering selling. I've created a simple one called the real estate analyzer that is available at http://landlordtools.com/landlord-software.htm. By either creating your own spreadsheet or using one that is already made, you will now become an investor that understand how to make any real estate investment work for you.
San Jose Real Estate Investing On The Safest Big City In America
San Jose, California is rated as the safest big city in America per the FBI records. It is because the city government focuses on the continuous training of its police officers, including heavy investments on police force equipments.
Being the safest city, San Jose real estate investing is thus getting to be very popular. Thus, you will expect that the current population of more than 500,000 may increase significantly in the next years to come.
San Jose real estate investing in this side of America continues to move forward. This is because apart from the safe living, various high technology companies reside in the third biggest city in California.
Additionally, the fact that San Jose is also the 10th biggest city in America, market value of properties in San Jose is increasing significantly. Even with this upward trend of San Jose real estate investing, people still want to move to San Jose because of the unlimited economic opportunities available.
Additionally, life in San Jose is very exciting coming from various tourist attractions that make city living come alive even in wee hours. The performing arts also offer economic opportunities on top of the entertainment it offers to the residents and tourists alike. The reliable transportation system of San Jose additionally offers benefits for the San Jose real estate industry.
It is thus easy for real estate brokers to be able to find sellers and buyers on a regular basis. Training of real estate brokers is thus necessary for them to be able to give the best service to sellers and buyers who want to take advantage of the booming San Jose real estate industry.
This is because the various developments with regards the San Jose real estate industry needs proper marketing and selection in order for the buyers and sellers to benefit in these developments. To make sure that quality of San Jose real estate investing will not be hampered by boom, the government set rules and stricter licensing program. This will make sure that untrained and unprofessional San Jose real estate brokers will not prejudice sellers and buyers.
If you want to invest in San Jose real estate, you may check out the Internet or your local newspaper for real estate for sale and try to find licensed and professional San Jose real estate brokers.
San Jose offers the safest city living; you may only need to do your research to be able to find real estate brokers who will look after your welfare as you invest in San Jose.
Being the safest city, San Jose real estate investing is thus getting to be very popular. Thus, you will expect that the current population of more than 500,000 may increase significantly in the next years to come.
San Jose real estate investing in this side of America continues to move forward. This is because apart from the safe living, various high technology companies reside in the third biggest city in California.
Additionally, the fact that San Jose is also the 10th biggest city in America, market value of properties in San Jose is increasing significantly. Even with this upward trend of San Jose real estate investing, people still want to move to San Jose because of the unlimited economic opportunities available.
Additionally, life in San Jose is very exciting coming from various tourist attractions that make city living come alive even in wee hours. The performing arts also offer economic opportunities on top of the entertainment it offers to the residents and tourists alike. The reliable transportation system of San Jose additionally offers benefits for the San Jose real estate industry.
It is thus easy for real estate brokers to be able to find sellers and buyers on a regular basis. Training of real estate brokers is thus necessary for them to be able to give the best service to sellers and buyers who want to take advantage of the booming San Jose real estate industry.
This is because the various developments with regards the San Jose real estate industry needs proper marketing and selection in order for the buyers and sellers to benefit in these developments. To make sure that quality of San Jose real estate investing will not be hampered by boom, the government set rules and stricter licensing program. This will make sure that untrained and unprofessional San Jose real estate brokers will not prejudice sellers and buyers.
If you want to invest in San Jose real estate, you may check out the Internet or your local newspaper for real estate for sale and try to find licensed and professional San Jose real estate brokers.
San Jose offers the safest city living; you may only need to do your research to be able to find real estate brokers who will look after your welfare as you invest in San Jose.
A Simple Plan for Starting a Business of Real Estate Investing
Starting a business of real estate investing - whether you work out of an office or a 'home based business' you run out of a corner of your bedroom, you can drastically change your life, and your income in as little as 10 hours per week - all through a very simple plan of real estate investing.
It is possible to become successful in real estate investing in a short time and, even when starting a business of real estate investing, you can find the time without crimping your current lifestyle!
Starting a business of real estate investing with a simple plan.
1. Groundwork of your simple plan is crucial when starting a business of real estate investing.
I know, it is easy to say - and the truth is, it is easy to do! Most people get stopped when starting a business of real estate investing because they simply FAIL to plan. That's right, it isn't because their plan didn't work, it was because they did not implement even a very simple plan!
To be successful in real estate investing, first find someone else that is successful in real estate investing, watch them, interview them, find out everything you can about what they did when starting a business - and write up a simple plan of what they have done to be successful in their real estate investing - something that you can follow each day.
In order to have what they have, you need to do what they do, so find out what percentage of their day is spent on the telephone, for instance.
Find out how much of that time is spent on making calls, receiving calls and the type of calls they are (Customer Service, making deals, etc.)
That gives you a good idea of what your total time should look like, when you are starting a business of real estate investing of your own.
2. The next step in developing your simple plan as you are starting a business of real estate investing is to divide your total time (10 hours per week is a great start) just like your successful mentor does.
Even if they put in a hundred hours per week, they still divide their time, just like you will, once you begin working your simple plan.
The 'secret to success' isn't in the hours - it is how you spend them!
Follow the simple plan outlined here to make the most of your hours and get the most out of everything as you are starting a business of real estate investing with a plan of success.
If your mentor spends 1/10th of their time making outgoing phone calls to find new business, then you need to spend 1/10th of the time you dedicate to your real estate investing business doing the same thing, a pretty simple plan, huh?
3. Set your Goals.
A clear destination is something you always do when starting out on vacation, isn't it?
Then have the same thing in mind when you are starting a business of real estate investing.
Every successful person says to have a goal in mind so you know where you are going, and our simple plan gives you the steps to get there!
A goal is crucial in anything, and certainly when starting a business of real estate investing.
Without a destination (a specific income amount, a personal item like a car or boat, or simply an amount set aside in savings), how will you know if you ever arrived?
4. Track your progress.
You have your goal in mind, and a simple plan to begin. It is time to get into your 10 hours per week program and 'backtrack' to create a clear and simple plan to follow.
Take your goal (a clear date of completion and 'destination'), divide it out and chart the required progress each day, week, month and/or year to quickly know what is required to reach your destination.
Follow your progress each day to know quickly if you are sticking to your original goal destination, or if you are ahead or behind schedule.
As you are starting a business of real estate investing, you will likely come across some detours, that's OK (and where many people get lost... Do not!)
When driving, if you find a road that is blocked or a path that seems impassible, you simply find another way around, right?
The same is true when starting a business of real estate investing, just find another way.
Include in your simple plan a few hours here/there just for such 'emergencies'.
If you have no emergencies, do something else that will get you closer to your destination, or just relax and enjoy where you are.
5. Spend time ON your business, not only IN your business.
In your simple plan for starting a business of real estate investing, you must set aside part of your working time to plan, set goals, promote and advertise your business, not simply work along in your business, doing the things you do.
In today's world, when starting a business of real estate investing, you will most likely have a website. You need to spend a certain portion of your time (even 10 hours per week total) on getting more visitors to that website. The more people that see what you have to offer, the quicker your business will grow.
You could spend time driving from house to house, telling everyone about your website (not a very simple plan for your time!), or you can maximize your time by writing articles about your business and post them online where many people will see them (many online services promote articles).
This is often overlooked by people as they are starting a business of real estate investing, and one of the reasons they fail to make their simple plan.
As your business grows over time, you will do less of this (but never stop!) and begin to work your simple plan toward the 'IN your business' phase.
6. Give excellent Customer Service.
It never pays to make your customers angry. An upset customer will kill more business than you can imagine. Find a way to work with them, or simply give them their money back.
Losing customers is something you cannot afford when you are starting a business of real estate investing!
Many people simply don't make the time to provide quality service to their customers. Do not let that happen to you!
A little up front planning and goal setting, then follow-through each week, then simply repeat the process.
You will change your business from flat to cash in a short amount of time!
Follow the steps above and it can be done in as much or as little time as you have.
When starting a business of real estate investing, if you follow the simple plan I have outlined here, you are already a success!
It is possible to become successful in real estate investing in a short time and, even when starting a business of real estate investing, you can find the time without crimping your current lifestyle!
Starting a business of real estate investing with a simple plan.
1. Groundwork of your simple plan is crucial when starting a business of real estate investing.
I know, it is easy to say - and the truth is, it is easy to do! Most people get stopped when starting a business of real estate investing because they simply FAIL to plan. That's right, it isn't because their plan didn't work, it was because they did not implement even a very simple plan!
To be successful in real estate investing, first find someone else that is successful in real estate investing, watch them, interview them, find out everything you can about what they did when starting a business - and write up a simple plan of what they have done to be successful in their real estate investing - something that you can follow each day.
In order to have what they have, you need to do what they do, so find out what percentage of their day is spent on the telephone, for instance.
Find out how much of that time is spent on making calls, receiving calls and the type of calls they are (Customer Service, making deals, etc.)
That gives you a good idea of what your total time should look like, when you are starting a business of real estate investing of your own.
2. The next step in developing your simple plan as you are starting a business of real estate investing is to divide your total time (10 hours per week is a great start) just like your successful mentor does.
Even if they put in a hundred hours per week, they still divide their time, just like you will, once you begin working your simple plan.
The 'secret to success' isn't in the hours - it is how you spend them!
Follow the simple plan outlined here to make the most of your hours and get the most out of everything as you are starting a business of real estate investing with a plan of success.
If your mentor spends 1/10th of their time making outgoing phone calls to find new business, then you need to spend 1/10th of the time you dedicate to your real estate investing business doing the same thing, a pretty simple plan, huh?
3. Set your Goals.
A clear destination is something you always do when starting out on vacation, isn't it?
Then have the same thing in mind when you are starting a business of real estate investing.
Every successful person says to have a goal in mind so you know where you are going, and our simple plan gives you the steps to get there!
A goal is crucial in anything, and certainly when starting a business of real estate investing.
Without a destination (a specific income amount, a personal item like a car or boat, or simply an amount set aside in savings), how will you know if you ever arrived?
4. Track your progress.
You have your goal in mind, and a simple plan to begin. It is time to get into your 10 hours per week program and 'backtrack' to create a clear and simple plan to follow.
Take your goal (a clear date of completion and 'destination'), divide it out and chart the required progress each day, week, month and/or year to quickly know what is required to reach your destination.
Follow your progress each day to know quickly if you are sticking to your original goal destination, or if you are ahead or behind schedule.
As you are starting a business of real estate investing, you will likely come across some detours, that's OK (and where many people get lost... Do not!)
When driving, if you find a road that is blocked or a path that seems impassible, you simply find another way around, right?
The same is true when starting a business of real estate investing, just find another way.
Include in your simple plan a few hours here/there just for such 'emergencies'.
If you have no emergencies, do something else that will get you closer to your destination, or just relax and enjoy where you are.
5. Spend time ON your business, not only IN your business.
In your simple plan for starting a business of real estate investing, you must set aside part of your working time to plan, set goals, promote and advertise your business, not simply work along in your business, doing the things you do.
In today's world, when starting a business of real estate investing, you will most likely have a website. You need to spend a certain portion of your time (even 10 hours per week total) on getting more visitors to that website. The more people that see what you have to offer, the quicker your business will grow.
You could spend time driving from house to house, telling everyone about your website (not a very simple plan for your time!), or you can maximize your time by writing articles about your business and post them online where many people will see them (many online services promote articles).
This is often overlooked by people as they are starting a business of real estate investing, and one of the reasons they fail to make their simple plan.
As your business grows over time, you will do less of this (but never stop!) and begin to work your simple plan toward the 'IN your business' phase.
6. Give excellent Customer Service.
It never pays to make your customers angry. An upset customer will kill more business than you can imagine. Find a way to work with them, or simply give them their money back.
Losing customers is something you cannot afford when you are starting a business of real estate investing!
Many people simply don't make the time to provide quality service to their customers. Do not let that happen to you!
A little up front planning and goal setting, then follow-through each week, then simply repeat the process.
You will change your business from flat to cash in a short amount of time!
Follow the steps above and it can be done in as much or as little time as you have.
When starting a business of real estate investing, if you follow the simple plan I have outlined here, you are already a success!
Three Skills Necessary To Be Successful In Real Estate Investing
Success in real estate investing is all about knowing what to buy and how you approach the deal. Real estate investment therefore requires some specific skill sets that can be developed and honed. This article highlights three skills that you might want to develop to be more successful in your real estate investing business.
Firstly, interpersonal skills are important in real estate negotiations. What breaks or makes a deal usually is whether you have good interpersonal skills and are able to make the other party trust you. Spend time establishing rapport when you meet prospective sellers and then try to apply the win win formula so that they feel the value in doing a transaction with you and maybe recommend their friends to sell property to you in the future.
An example of this was when John talked to the seller of a large factory, the boss told him that what they needed now was cash flow and they did not want to move out of the property. So John did a sell and lease back transaction with the boss and today he has a good tenant and owns a factory building which he bought at a reduced rate.
Secondly, to be successful in real estate investment, you need to be able to do simple maths analysis of the monthly cashflow and analyze the longer term appreciation prospects of the real estate investment property that you are interested in. Spending time to analyze your buying price relative to similar units in the area is important and buyingit at an under value is always good.
Alternatively, when buying properties that you want to improve, always spend time doing the sums on how much the repairs and renovation will cost and if you are new to the fix and flip real estate sphere, bring your contractor and architect along to ascertain whether the deal is feasible.
Thirdly, real estate bargain hunting requires persistency as you might have to look at hundreds of properties before you find a property that you think can yield good rental returns and is suitable for you to buy. Remember that similarly, not all foreclosure and auction sites represent bargains. Make an appointment to go down to the property and physically examine it to satisfy yourself that it meets your requirements. Staying persistent in your search for the right real estate investment is thus key to making a good real estate acquisition.
In conclusion, take some time to examine whether you have the three skills sets mentioned above and then take massive action to start looking for your next real estate bargain. Believe in yourself today and focus on achieving your real estate investment goals. Carpe Diem!
Firstly, interpersonal skills are important in real estate negotiations. What breaks or makes a deal usually is whether you have good interpersonal skills and are able to make the other party trust you. Spend time establishing rapport when you meet prospective sellers and then try to apply the win win formula so that they feel the value in doing a transaction with you and maybe recommend their friends to sell property to you in the future.
An example of this was when John talked to the seller of a large factory, the boss told him that what they needed now was cash flow and they did not want to move out of the property. So John did a sell and lease back transaction with the boss and today he has a good tenant and owns a factory building which he bought at a reduced rate.
Secondly, to be successful in real estate investment, you need to be able to do simple maths analysis of the monthly cashflow and analyze the longer term appreciation prospects of the real estate investment property that you are interested in. Spending time to analyze your buying price relative to similar units in the area is important and buyingit at an under value is always good.
Alternatively, when buying properties that you want to improve, always spend time doing the sums on how much the repairs and renovation will cost and if you are new to the fix and flip real estate sphere, bring your contractor and architect along to ascertain whether the deal is feasible.
Thirdly, real estate bargain hunting requires persistency as you might have to look at hundreds of properties before you find a property that you think can yield good rental returns and is suitable for you to buy. Remember that similarly, not all foreclosure and auction sites represent bargains. Make an appointment to go down to the property and physically examine it to satisfy yourself that it meets your requirements. Staying persistent in your search for the right real estate investment is thus key to making a good real estate acquisition.
In conclusion, take some time to examine whether you have the three skills sets mentioned above and then take massive action to start looking for your next real estate bargain. Believe in yourself today and focus on achieving your real estate investment goals. Carpe Diem!
Three Skills Necessary To Be Successful In Real Estate Investing
Success in real estate investing is all about knowing what to buy and how you approach the deal. Real estate investment therefore requires some specific skill sets that can be developed and honed. This article highlights three skills that you might want to develop to be more successful in your real estate investing business.
Firstly, interpersonal skills are important in real estate negotiations. What breaks or makes a deal usually is whether you have good interpersonal skills and are able to make the other party trust you. Spend time establishing rapport when you meet prospective sellers and then try to apply the win win formula so that they feel the value in doing a transaction with you and maybe recommend their friends to sell property to you in the future.
An example of this was when John talked to the seller of a large factory, the boss told him that what they needed now was cash flow and they did not want to move out of the property. So John did a sell and lease back transaction with the boss and today he has a good tenant and owns a factory building which he bought at a reduced rate.
Secondly, to be successful in real estate investment, you need to be able to do simple maths analysis of the monthly cashflow and analyze the longer term appreciation prospects of the real estate investment property that you are interested in. Spending time to analyze your buying price relative to similar units in the area is important and buyingit at an under value is always good.
Alternatively, when buying properties that you want to improve, always spend time doing the sums on how much the repairs and renovation will cost and if you are new to the fix and flip real estate sphere, bring your contractor and architect along to ascertain whether the deal is feasible.
Thirdly, real estate bargain hunting requires persistency as you might have to look at hundreds of properties before you find a property that you think can yield good rental returns and is suitable for you to buy. Remember that similarly, not all foreclosure and auction sites represent bargains. Make an appointment to go down to the property and physically examine it to satisfy yourself that it meets your requirements. Staying persistent in your search for the right real estate investment is thus key to making a good real estate acquisition.
In conclusion, take some time to examine whether you have the three skills sets mentioned above and then take massive action to start looking for your next real estate bargain. Believe in yourself today and focus on achieving your real estate investment goals. Carpe Diem!
Firstly, interpersonal skills are important in real estate negotiations. What breaks or makes a deal usually is whether you have good interpersonal skills and are able to make the other party trust you. Spend time establishing rapport when you meet prospective sellers and then try to apply the win win formula so that they feel the value in doing a transaction with you and maybe recommend their friends to sell property to you in the future.
An example of this was when John talked to the seller of a large factory, the boss told him that what they needed now was cash flow and they did not want to move out of the property. So John did a sell and lease back transaction with the boss and today he has a good tenant and owns a factory building which he bought at a reduced rate.
Secondly, to be successful in real estate investment, you need to be able to do simple maths analysis of the monthly cashflow and analyze the longer term appreciation prospects of the real estate investment property that you are interested in. Spending time to analyze your buying price relative to similar units in the area is important and buyingit at an under value is always good.
Alternatively, when buying properties that you want to improve, always spend time doing the sums on how much the repairs and renovation will cost and if you are new to the fix and flip real estate sphere, bring your contractor and architect along to ascertain whether the deal is feasible.
Thirdly, real estate bargain hunting requires persistency as you might have to look at hundreds of properties before you find a property that you think can yield good rental returns and is suitable for you to buy. Remember that similarly, not all foreclosure and auction sites represent bargains. Make an appointment to go down to the property and physically examine it to satisfy yourself that it meets your requirements. Staying persistent in your search for the right real estate investment is thus key to making a good real estate acquisition.
In conclusion, take some time to examine whether you have the three skills sets mentioned above and then take massive action to start looking for your next real estate bargain. Believe in yourself today and focus on achieving your real estate investment goals. Carpe Diem!
Tips For Investing In Real Estate
Over the last several years, real estate investment has been the center of much interest. Infomercials abound about the money to be made by real estate investment. Reality television shows concerning fixing houses and reselling them are in great abundance, and a new American dream has been born. While real estate investing can be quite profitable, it’s not as easy as they make it look on television. You must know your market area very well and while there is potential for great profit, the risks are high in real estate investment. There is always the possibility of failure and that must be an acceptable risk for you if you wish to prosper through real estate investing.
Here are some tips to keep in mind when investing in real estate:
1) Specialize. Don’t bounce back and forth between different types of real estate investing (such as fixer uppers, rentals, lease options, low down payment homes, etc.). If you specialize in one and become an ‘expert’ in that particular type of investment you will only be making the costly mistakes that are made during the ‘learning curve’ for one type of investment property rather than for several. In addition to missing out on some of the costly errors, you are becoming more and more accomplished in your chosen area of expertise with each new transaction.
2) Inspect. Always, always, always have a thorough inspection of any property before you buy. This can be costly but it is much less expensive in the long run to know without a doubt what you are getting into before buying the property.
3) Compare. Compare the value of other properties in the area with the asking price of the property you are considering. You want to insure that you have an accurate understanding of the value of property in the area in which you are buying. If you are buying a fixer upper you wouldn’t want to pay a price equal or near the prices of houses of similar size and better condition in the area.
4) Education. Educate yourself on the local market. This should include information such as the number of bedrooms the average home buyer wants, the school districts that are in demand and those that aren’t, and the features that home owners pay the most attention to in homes (such as kitchens, bathrooms, fenced in yards). Find out what the housing trends in your area are and make it your mission to provide houses that fill those particular needs.
Following the tips above will not guarantee you success or prevent failure, but they will get you started on the right foot in real estate investment. Keep in mind that there are other extenuating circumstances that must be considered when investing in real estate: among these are taxes, back taxes, the local economy, and actual demand for housing. If you have a firm understanding of the local real estate market perhaps you are ready to delve into the world of real estate investing.
Here are some tips to keep in mind when investing in real estate:
1) Specialize. Don’t bounce back and forth between different types of real estate investing (such as fixer uppers, rentals, lease options, low down payment homes, etc.). If you specialize in one and become an ‘expert’ in that particular type of investment you will only be making the costly mistakes that are made during the ‘learning curve’ for one type of investment property rather than for several. In addition to missing out on some of the costly errors, you are becoming more and more accomplished in your chosen area of expertise with each new transaction.
2) Inspect. Always, always, always have a thorough inspection of any property before you buy. This can be costly but it is much less expensive in the long run to know without a doubt what you are getting into before buying the property.
3) Compare. Compare the value of other properties in the area with the asking price of the property you are considering. You want to insure that you have an accurate understanding of the value of property in the area in which you are buying. If you are buying a fixer upper you wouldn’t want to pay a price equal or near the prices of houses of similar size and better condition in the area.
4) Education. Educate yourself on the local market. This should include information such as the number of bedrooms the average home buyer wants, the school districts that are in demand and those that aren’t, and the features that home owners pay the most attention to in homes (such as kitchens, bathrooms, fenced in yards). Find out what the housing trends in your area are and make it your mission to provide houses that fill those particular needs.
Following the tips above will not guarantee you success or prevent failure, but they will get you started on the right foot in real estate investment. Keep in mind that there are other extenuating circumstances that must be considered when investing in real estate: among these are taxes, back taxes, the local economy, and actual demand for housing. If you have a firm understanding of the local real estate market perhaps you are ready to delve into the world of real estate investing.
Angel Investing in Wisconsin
Angel Investing in WisconsinWealthy individuals who make high-risk, potentially high-yield investments to early stage companies typically do Angel financings. Emphasis is placed on enterprises with rapid growth potential. Many angel investors also offer their business expertise by participating in the management, operation, and marketing of the business. Angel investors regularly supply the risk capital American businesses require for early stage formation and growth. Early entrepreneurial finance, supplied by angel investors, can assist businesses with their initial business concept or prototype phases often moving the business toward full startup capabilities. Early-stage capital supplied by angel investors supporting the creation and growth of high-tech businesses is essential to any New Economy economic development strategy. How is angel capital made available to early growth businesses?Financial investments in Americas early stage businesses are often provided by family, friends and angel investors. Combining with the founders personal resources, these outside investors regularly finance the growth of infant businesses throughout their early expansion stages completing these early capitalization steps prepares companies for later stage financing by venture capitalists and institutional equity investors offering a critical bridge for emerging enterprises between startup development and later expansion phases. Early-stage (e.g., seed, startup, etc.) Wisconsin businesses requiring growth capital should consider identifying individual angel investors or approaching the expanding in-state angel networks for necessary capital. In Wisconsin, there are two fundamental types of angels who should be approached usually for quite different reasons individual investors and angel networks. For a beginning, lets remember that a majority of angel investing occurs outside the technology business sectors. Angel investing most often occurs amongst traditional business deals: retail stores, real estate partnerships, restaurants, and so on. The anticipated financial returns on traditional deals are small compared to typical venture capital investment expectations, as are the risks. Angel networks represent a minority of angels in any given economic community. Although the earliest American angel networks were primarily profit-motivated and usually located within communities where venture-backed deals flourished, more recently formed networks are increasingly organized with some motivation toward supporting the local economy (especially so in Wisconsin, perhaps more than other places). These angel networks tend to focus on high tech businesses, because of potentials for high-wage job creation and other community benefits. For the most part, Wisconsins angel networks are not designed to go after moderate-growth, traditional industry businesses, or even tech-based lifestyle companies. Moderate-growth, traditional industry companies need affiliated angels friends, family, friends of friends, family of friends, business associates, and friends and family of business associates. These independent, individual angels usually have industry experience, and are identified through family, friends, and service providers. Most successful businesspeople who are active investors are more likely to fund opportunities when they can identify and measure the risks involved. Entrepreneurs should always try to find knowledgeable, affiliated angels.Who are angel investors in the United States? How important are they for early stage business growth? High-net worth individuals, known as angel investors, have become increasingly significant resources in supplying capital and know-how to fast growth, early stage American enterprises. Individual investors and loosely organized groups of angel investors dwarf conventional seed and venture capital funds as the primary sources of seed stage and startup capital in the United States. Angel investors often fill financing gaps when the resources of the entrepreneur are exhausted. Wisconsin has been generating significant, civic-spirited commitments from high-net worth individuals willing to form local angel networks. These networks typically serve individual communities and regions around the state. These angel networks serve as the farm system for nurturing untested deals within Wisconsins emerging entrepreneurial economy. Angel investors are often wealthy entrepreneurs who have started companies themselves and now have the money and know-how to start other businesses. Many of these repeat angels say they are investing in new ventures that interest them. More sophisticated angels say they are readying new ventures for institutional money, while satisfying their desire to be involved in growing companies without full-time responsibilities. When did the modern American entrepreneurial economy begin? How does tech job growth today compare with the more established, larger economy? In 1979, Fortune 500 payrolls peaked at 16 million employees and Bill Gates dropped out of Harvard University to become a computer systems software pioneer. By 1996, Fortune 500 payrolls had fallen more than 25%, but an invisible entrepreneurial economy had created more than 25 million new jobs. In 1985, only 40%of the Forbes Four Hundred Richest People in America were entirely self-made, i.e., first generation money. Most major U. S. family fortunes had then been made during the earlier industrialization of America. By 1994, however, 80% of the Forbes Four Hundred were self-made. These modern entrepreneurial successes were mostly realized within the high technology sectors of the New Economy. The structure of the U. S. economy passed a milestone of transcendental importance in 1979 the transition from a decaying industrial economy to an emerging entrepreneurial economy, declares Prof. William Wetzel, Jr., Director Emeritus, Center for Venture Research at the University of New Hampshire.(4) According to the Center for Venture Research, some 400, 000 high net worth angels invest $30 billion $45 billion annually into more than 50, 000 ventures.(5)When were angel investor networks first formed in Wisconsin? Where are angel networks located now? Individual angel investing has a long history in Wisconsin making investments into both traditional businesses and high-tech. Within the UW-Madison Research Park, PanVera LLC, for instance, was funded with $4 million in investments from individual angels. Wisconsins first angel networks were initiated in 2000. Wisconsin has established six angel networks. These organizations are Early Stage Research (Madison), Origin Investment Group, LLC (La Crosse), Silicon Pastures (Milwaukee), Valley Angels Investment Group, LLC (Green Bay) , The Golden Angels Network (Milwaukee) , and Wisconsin Investment Partners, LLC (Madison) . End Note: This excerpt has been published with the permission of NorthStar Economics. Dr. David J. Ward, PhD is President of NorthStar Economics and co-author of the report. He completed a thirty-one year career in the University of Wisconsin System in July 2000. Ward held teaching positions at the University of Wisconsin - Green Bay and the University of Wisconsin - Oshkosh. James Patterson is a senior associate with NorthStar Economics. He served as the principal investigator and co-author of the. The 2003 NorthStar Guide to Growth and Venture Capital for Wisconsin companies that is now available for online purchase online at www.northstareconomics.com for $25 plus shipping and handling.
Pre-Construction Real Estate
If you are investing in pre-construction real estate in cities across the United States, investrealestate101.com, a leading brokerage firm for real estate investment, can give you tips, and tell you the pros and cons in investing in such projects.
Investrealestate101.com has pre-construction real estate projects inall over the country. The site facilitates easy search of projects through price, location, down payment and developer. You need not do further research as the portal has all information and answers to all of your queries and doubts. They are very much reliable.
If you are interested in Florida pre-construction property, it has several projects. It is lucrative and safe. There will be more return as compared to old real estate properties there. You will face no problems in the pre-construction property as the old real estate has tribulations like water leakage, furnace going, parking, repaving a drive way, etc. But if you go for investing in pre-construction real estate, developers demand a higher percent for down payment because they are much sought after by the investors. It will take more time for getting the profit in pre-construction investment. Also, you will have to be conscientious enough to invest in preconstruction projects.
Las Vegas pre-construction real estate is also promising. The city is growing and receiving more and more visitors by days. If you want, you can go through www.investrealestate101.com. It has some projects. It has also advantages and disadvantages, so know them before jumping into the venture.
Orlando, the vacation capital of the world, is the most sought after city by the real estate investors. The land values and the already built houses' rates are spiraling by days. People from across the globe are visiting the city. In pre-construction real estate sector, it is growing. The public facilities in Orlando are yet to develop, and pre-construction real estate investment there has good prospects.
You can also invest in real estate pre-construction condos and condominiums. They will give you the best return. There are pre-construction condos and condominiums across the United States. For free updates on them, you can sign up for the newsletter, provided by wwwinvestrealestate101.com.
Investrealestate101.com has pre-construction real estate projects inall over the country. The site facilitates easy search of projects through price, location, down payment and developer. You need not do further research as the portal has all information and answers to all of your queries and doubts. They are very much reliable.
If you are interested in Florida pre-construction property, it has several projects. It is lucrative and safe. There will be more return as compared to old real estate properties there. You will face no problems in the pre-construction property as the old real estate has tribulations like water leakage, furnace going, parking, repaving a drive way, etc. But if you go for investing in pre-construction real estate, developers demand a higher percent for down payment because they are much sought after by the investors. It will take more time for getting the profit in pre-construction investment. Also, you will have to be conscientious enough to invest in preconstruction projects.
Las Vegas pre-construction real estate is also promising. The city is growing and receiving more and more visitors by days. If you want, you can go through www.investrealestate101.com. It has some projects. It has also advantages and disadvantages, so know them before jumping into the venture.
Orlando, the vacation capital of the world, is the most sought after city by the real estate investors. The land values and the already built houses' rates are spiraling by days. People from across the globe are visiting the city. In pre-construction real estate sector, it is growing. The public facilities in Orlando are yet to develop, and pre-construction real estate investment there has good prospects.
You can also invest in real estate pre-construction condos and condominiums. They will give you the best return. There are pre-construction condos and condominiums across the United States. For free updates on them, you can sign up for the newsletter, provided by wwwinvestrealestate101.com.
Risks and Rewards of Investing in Foreclosures
There are many different things to invest in these days. One investment route which individuals take is with regard to foreclosures. Foreclosures occur when the current homeowner of a property fails to pay their monthly mortgage and the property is repossessed by the lender. There are various risks and rewards which go along with investments of this type and some of these will be discussed below.
Advantages and Disadvantages to Buying Pre-Foreclosure Properties
One type of property sale which relates to foreclosures is the pre-foreclosure sale. A pre-foreclosure sale occurs when the lender allows the homeowner with past due mortgage payments to sell the home on their own and pay back the lender what they can from the sale of the home. The lender often agrees to this so that they do not have to get involved with possessing then reselling the home and the homeowner likes this option because it prevents foreclosure. The investor also benefits from this type of sale as well.
Some advantages to purchasing an investment property via pre-foreclosure sale include discounted price, speedy purchase and wonderful profit opportunities. As for the disadvantages, the investor who buys property by way of a pre-foreclosure sale may find that the homeowner is hard to contact and/or unwilling to sell, the research is cumbersome and there are other potential buyers who wish to purchase the property.
For those who wish to purchase property via a pre-foreclosure sale, they should do their independent research, approach the homeowner in a courteous manner and ensure that they make an offer that will not cause them to lose money in the end. By doing so, the investor may find that buying a house by pre-foreclosure sale will work to their advantage.
Advantages and Disadvantages to Buying at a Foreclosure Auction
Another way to purchase foreclosure property is through a foreclosure auction. Auctions of this type are usually held at the local courthouse of the county where the property is located within. This is a common way for foreclosed properties to be sold and this too has its pros and cons.
The main advantage to purchasing property at a foreclosure auction is the reasonable price for which one can bid on a property. Although there will be other bidders, the resulting price is usually one that is quite attractive. Another advantage relates to the profit which the purchaser will see when they resell the home. Since the home was won at a reasonable amount, when the highest bidder goes to resell the property they will most likely see a good profit margin from that sale.
With regard to the disadvantages, purchasing a home at a foreclosure auction has a few which are tied in with it. The first disadvantage to buying a home this way relates to the inability to inspect the property. As auction homes are usually sold as is, the bidder who wishes to adequately inspect the home beforehand will be unlikely to do so. Another disadvantage to purchasing a home via auction is that the purchase price and deposit is due via cash or cashier’s check in many instances which may be difficult for many investors to obtain on short notice.
Advantages and Disadvantages to Buying Real Estate Owned (REO) Properties
One last type of property purchase which relates to foreclosures is real estate owned properties, or REOs. An REO is when the property returns to the exclusive hands of the lender and then needs to be sold from that point. The lender is looking to sell their newly acquired property as soon as possible since they do not want to be in charge of the property and its necessary maintenance. The lender will then look for potential buyers of the property.
Some advantages to buying an REO are that they usually have good title, property taxes will be up to date and repairs may have been made to the property by the lender to ready it for sale. As for the disadvantages, those who purchase REOs may find that the savings which they see by purchasing an REO are not as great as they could be and therefore, the profits may not be as great as well.
Conclusion
When purchasing property in any of the previously mentioned ways there are a few things to keep in mind when doing so. It is extremely important to do independent research with regard to the properties and purchase methods, ensure necessary funds for purchase and inspect the property whenever possible. This will help to ensure that the buying process goes as smoothly as possible.
Advantages and Disadvantages to Buying Pre-Foreclosure Properties
One type of property sale which relates to foreclosures is the pre-foreclosure sale. A pre-foreclosure sale occurs when the lender allows the homeowner with past due mortgage payments to sell the home on their own and pay back the lender what they can from the sale of the home. The lender often agrees to this so that they do not have to get involved with possessing then reselling the home and the homeowner likes this option because it prevents foreclosure. The investor also benefits from this type of sale as well.
Some advantages to purchasing an investment property via pre-foreclosure sale include discounted price, speedy purchase and wonderful profit opportunities. As for the disadvantages, the investor who buys property by way of a pre-foreclosure sale may find that the homeowner is hard to contact and/or unwilling to sell, the research is cumbersome and there are other potential buyers who wish to purchase the property.
For those who wish to purchase property via a pre-foreclosure sale, they should do their independent research, approach the homeowner in a courteous manner and ensure that they make an offer that will not cause them to lose money in the end. By doing so, the investor may find that buying a house by pre-foreclosure sale will work to their advantage.
Advantages and Disadvantages to Buying at a Foreclosure Auction
Another way to purchase foreclosure property is through a foreclosure auction. Auctions of this type are usually held at the local courthouse of the county where the property is located within. This is a common way for foreclosed properties to be sold and this too has its pros and cons.
The main advantage to purchasing property at a foreclosure auction is the reasonable price for which one can bid on a property. Although there will be other bidders, the resulting price is usually one that is quite attractive. Another advantage relates to the profit which the purchaser will see when they resell the home. Since the home was won at a reasonable amount, when the highest bidder goes to resell the property they will most likely see a good profit margin from that sale.
With regard to the disadvantages, purchasing a home at a foreclosure auction has a few which are tied in with it. The first disadvantage to buying a home this way relates to the inability to inspect the property. As auction homes are usually sold as is, the bidder who wishes to adequately inspect the home beforehand will be unlikely to do so. Another disadvantage to purchasing a home via auction is that the purchase price and deposit is due via cash or cashier’s check in many instances which may be difficult for many investors to obtain on short notice.
Advantages and Disadvantages to Buying Real Estate Owned (REO) Properties
One last type of property purchase which relates to foreclosures is real estate owned properties, or REOs. An REO is when the property returns to the exclusive hands of the lender and then needs to be sold from that point. The lender is looking to sell their newly acquired property as soon as possible since they do not want to be in charge of the property and its necessary maintenance. The lender will then look for potential buyers of the property.
Some advantages to buying an REO are that they usually have good title, property taxes will be up to date and repairs may have been made to the property by the lender to ready it for sale. As for the disadvantages, those who purchase REOs may find that the savings which they see by purchasing an REO are not as great as they could be and therefore, the profits may not be as great as well.
Conclusion
When purchasing property in any of the previously mentioned ways there are a few things to keep in mind when doing so. It is extremely important to do independent research with regard to the properties and purchase methods, ensure necessary funds for purchase and inspect the property whenever possible. This will help to ensure that the buying process goes as smoothly as possible.
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