For those that are about to purchase their very first property, it is very exciting and quite risky. Some people purchase property purely as an investment, however, and with property prices on the rise, that might be a very good idea. Moreoever, you can rent out the property to tenants as it accures in value! This guide gives a quick overview on minimizing the risks while maximizing profits in property investing.
1. Before Investing
You will want to do plenty of research before you invest into a property. Far more research, in fact, than you would do if you were just looking for a property for your own personal use. Of course, you don't have to get a PhD in Real Estate, Finance, or Law, but you need to get a good chunk of information and think about your decisions.
2. Know The Market
It is imperative that you understand the market before you invest. What is the average property going for? It can vary considerably even within a single housing tract. Study a little bit about legal restrictions and requirements, about contracts, escrow, titles, insurance, closing procedure, and the roles different individuals play in the process. Also, never be afraid to shop around, it can't hurt, right?
3. Profitable Properties Aren't Necessarily Expensive Properties
Keep in mind that often the homes that offer the biggest return on investment are fixer uppers. A fresh coat of paint, new flooring, a fresh pest inspection report showing zero pests, and a professionally landscaped front and back yard can cost as little as $3,000 and increase the property value to prospective buyers by up to $20,000! Even better, if you can pick the property up cheaper, at auctions for abandoned properties, you can save a bundle and thus make even more money.
4. Look At The Neighborhood
Properties nearby should be inspected as closely as the house itself. Are they maintained poorly and in a way that would devalue your potential purchase? Even a fixer upper that gest turned into a castle will have trouble selling if the neighborhood is in dire straights. The idea is to find a diamond in the rough - or to cherry pick to to speak. Take the very best lowest priced property and flip it for a lot of profit.
5. Get Financing
Unless youve won the lottery, chances are investing in property is going to seem a bit expensive. This is where major lenders like banks and the stock market can come into play. Make sure to have your financing in place before you buy! Talk to mortgage lenders — banks, mortgage lending companies, and Internet home loan businesses.
6. Be Prepared
Don't be fooled by the ideal that you can never lose money in the real estate market. Make sure the house you purchase isn't so far into disrepair that no one will buy it no matter how much money you pour into the property. You will also want to spend extra time in negotiating the best price possible so you don't get stuck with a property you can't afford the monthly payments for.
By: Adam Masterson
Tuesday, January 6, 2009
Is Investing On The Forex For You?
Twenty-four hours a day, every day, the Forex market is in business. Foreign exchange, Forex or FX are a few of the terms representing the trading of the world’s various currencies: the largest market on earth.
Becoming a successful Forex trader is the goal for millions across the world, but many - even most - new traders fail within the first year or lose thousands of invested dollars because they haven't grasped a thorough understanding of the industry and the way the market works.
With money to be made in the Forex market and every hour of the day to trade, appropriate and effective Forex training and grasping the right Forex trading strategies are of utmost importance.
In essence, a currency trade is the buying of one currency while simultaneously selling another. And with trades totaling more than 1.5 billion U.S. dollars every day, the Forex market deals with 100 times more currency than the New York Stock Exchange. Unlike trading on a typical stock market, the Forex market is considered an “over the counter” market because it is not conducted by a central exchange. Instead, Forex trading strategy takes place on an “interbank” market.
Trading deals are done directly between the two participating accounts necessary to make a trade and occur either over the phone or on worldwide electronic networks. Sydney, Tokyo, London, New York and Frankfurt are the main centers, which means Forex trading happens across the world 24 hours a day.
Trading opportunities are endless in this market because currency values are weakening and strengthening in relation to other currencies on a constant basis. The market moves every minute of the day and implementing the right Forex trading strategy is key in getting ahead of the game.
The benefits of trading this market are endless; from the opportunity to trade all day, every day from Sunday evening to Friday evening, being able to trade instantly with the latest news affecting the markets, to always having buyers and sellers to trade with in this very liquid market.
The liquidity of certain currency pairs makes price stability possible – even probable – and ensures narrow spreads. Trading the most popular currencies is cheaper than trading others because of the high level of liquidity, as well.
Additionally, the fact that Forex trading is most often traded without commissions multiplies the benefits of this field of trading. For those traders interested in dealing with the market on a frequent basis, this aspect is highly beneficial.
Forex training is key to getting the most out of each dollar. Any inexperienced investor that decides to start trading the forex without the proper tools and education, may as well play their money on a roulette wheel at a casino. With the proper education and mentoring, however, investors become far more likely to reach their financial goals.
Many traders spend thousands of dollars on various Forex trading educational outreach programs that don't produce any results, while others take the risk of playing the market on their own. The right Forex trading strategy program is vital to success in the market.
By: Alan Winters
Becoming a successful Forex trader is the goal for millions across the world, but many - even most - new traders fail within the first year or lose thousands of invested dollars because they haven't grasped a thorough understanding of the industry and the way the market works.
With money to be made in the Forex market and every hour of the day to trade, appropriate and effective Forex training and grasping the right Forex trading strategies are of utmost importance.
In essence, a currency trade is the buying of one currency while simultaneously selling another. And with trades totaling more than 1.5 billion U.S. dollars every day, the Forex market deals with 100 times more currency than the New York Stock Exchange. Unlike trading on a typical stock market, the Forex market is considered an “over the counter” market because it is not conducted by a central exchange. Instead, Forex trading strategy takes place on an “interbank” market.
Trading deals are done directly between the two participating accounts necessary to make a trade and occur either over the phone or on worldwide electronic networks. Sydney, Tokyo, London, New York and Frankfurt are the main centers, which means Forex trading happens across the world 24 hours a day.
Trading opportunities are endless in this market because currency values are weakening and strengthening in relation to other currencies on a constant basis. The market moves every minute of the day and implementing the right Forex trading strategy is key in getting ahead of the game.
The benefits of trading this market are endless; from the opportunity to trade all day, every day from Sunday evening to Friday evening, being able to trade instantly with the latest news affecting the markets, to always having buyers and sellers to trade with in this very liquid market.
The liquidity of certain currency pairs makes price stability possible – even probable – and ensures narrow spreads. Trading the most popular currencies is cheaper than trading others because of the high level of liquidity, as well.
Additionally, the fact that Forex trading is most often traded without commissions multiplies the benefits of this field of trading. For those traders interested in dealing with the market on a frequent basis, this aspect is highly beneficial.
Forex training is key to getting the most out of each dollar. Any inexperienced investor that decides to start trading the forex without the proper tools and education, may as well play their money on a roulette wheel at a casino. With the proper education and mentoring, however, investors become far more likely to reach their financial goals.
Many traders spend thousands of dollars on various Forex trading educational outreach programs that don't produce any results, while others take the risk of playing the market on their own. The right Forex trading strategy program is vital to success in the market.
By: Alan Winters
Private Money Investing-How To Get The Best Use Out Of This Form Of Investing
Private money investing involves dealing with real estate companies, entertainment, retail and several other businesses. It basically involves two parties: the borrower and the lender. The lender becomes the investor.
The borrower receives money based on the value of real estate owned by him. Private individuals, trusts and pension funds can try their luck on private money investing. Substantial knowledge and experience of trust deed investing is required and mostly individual investors are good at it.
Everyone wants their money to grow and this is why this form of investing is such a desirable form of investing now. First, their investment in real estate will always pay off. Secondly, it will give regular income derived from the monthly dividend distribution scheme and thirdly, higher results than those available from investing in stocks and bonds. There is something called investor eligibility that you need to meet for this form of investing, and that is determined once you meet the minimum net worth requirements.
Private money investing involves many technicalities i.e. the lending process, funding and underwriting that one must be aware of. Methods of investments: Fractional method, Mortgage fund investment, Equity ownership etc.
Things to consider before venturing out into private money investing:
The amount of investment that is being asked, the value of the property that is pledged, description of the property, negotiation of suitable terms from either party and the use of funds whether to construct the property or to renovate. This eventually is a risky business so it is important to associate your investment with known construction brands.
Before lending money, several things are taken into account and one of it is to calculate the worth of the real estate piece. The liquid value of the collateral minus debt and liabilities is what investors look at while using private money investing.
Again, it cannot be emphasized enough: focus on one area of investing, and stick with that. For instance, either focus your efforts on real estate, the stock market, mutual funds, etc. don’t try to learn everything about all of them. Follow these important tips, and if you have decided to use private money investing, you will make a fortune with your investing efforts.
By: Josh Neumann
The borrower receives money based on the value of real estate owned by him. Private individuals, trusts and pension funds can try their luck on private money investing. Substantial knowledge and experience of trust deed investing is required and mostly individual investors are good at it.
Everyone wants their money to grow and this is why this form of investing is such a desirable form of investing now. First, their investment in real estate will always pay off. Secondly, it will give regular income derived from the monthly dividend distribution scheme and thirdly, higher results than those available from investing in stocks and bonds. There is something called investor eligibility that you need to meet for this form of investing, and that is determined once you meet the minimum net worth requirements.
Private money investing involves many technicalities i.e. the lending process, funding and underwriting that one must be aware of. Methods of investments: Fractional method, Mortgage fund investment, Equity ownership etc.
Things to consider before venturing out into private money investing:
The amount of investment that is being asked, the value of the property that is pledged, description of the property, negotiation of suitable terms from either party and the use of funds whether to construct the property or to renovate. This eventually is a risky business so it is important to associate your investment with known construction brands.
Before lending money, several things are taken into account and one of it is to calculate the worth of the real estate piece. The liquid value of the collateral minus debt and liabilities is what investors look at while using private money investing.
Again, it cannot be emphasized enough: focus on one area of investing, and stick with that. For instance, either focus your efforts on real estate, the stock market, mutual funds, etc. don’t try to learn everything about all of them. Follow these important tips, and if you have decided to use private money investing, you will make a fortune with your investing efforts.
By: Josh Neumann
Tuesday, December 9, 2008
Fizzling Stock Market Bolsters Non-Traditional Retirement Investing
The second quarter of 2006 saw stocks slog their way through light volume as investors fought through geopolitical concerns, inflation fears and a dramatically slowing Chinese economy. While the stock market continues to thwart investors, the non-traditional investment market is gaining increased market share. Investing IRA and 401(k) funds in non-traditional investments such as real-estate, tax liens, property, or even funding a business or franchise was all but unheard of even five years ago. Today however, baby boomers have the opportunity to generate higher and more secure returns than the stock market can offer. Since 2000, investor participation in such investments has nearly doubled and is projected to account for 20 percent of the investment market by 2015.
Patty Servaes of Massachusetts recently used her 401(k) funds to start a new business. She states that “business has been doing great. I love it. Honestly, without [the company who established my self-directed 401(k) plan] I don't think I ever would have pulled the trigger because I would have been too nervous to take on that kind of debt [using SBA or other standard financing]. This option just really fit with my personality and risk-taking profile.”
Patty is just one of many who have retired but want to continue working to further their retirement profile. David Nilssen, CEO and Co-founder of Guidant Financial Group states “non-traditional investments are not securities; however, unlike the stock market they do offer secured returns.” Nilssen continued, “with self-directed IRAs you have complete freedom and control of your retirement funds, which can create endless possibilities. After all, no one cares more about your retirement than you do."
For more information on self-directing your retirement funds, locate the credible retirement account facilitators, and determine which one offers the best price and service package to meet your specific needs.
By: Ryan Myers
Patty Servaes of Massachusetts recently used her 401(k) funds to start a new business. She states that “business has been doing great. I love it. Honestly, without [the company who established my self-directed 401(k) plan] I don't think I ever would have pulled the trigger because I would have been too nervous to take on that kind of debt [using SBA or other standard financing]. This option just really fit with my personality and risk-taking profile.”
Patty is just one of many who have retired but want to continue working to further their retirement profile. David Nilssen, CEO and Co-founder of Guidant Financial Group states “non-traditional investments are not securities; however, unlike the stock market they do offer secured returns.” Nilssen continued, “with self-directed IRAs you have complete freedom and control of your retirement funds, which can create endless possibilities. After all, no one cares more about your retirement than you do."
For more information on self-directing your retirement funds, locate the credible retirement account facilitators, and determine which one offers the best price and service package to meet your specific needs.
By: Ryan Myers
Real Estate Investing For Your Retirement
Are you going to be able to retire? And if you do, will you be in a position to enjoy your life, pay medical bills and maintain an acceptable level of health?
Those can be chilling questions if you haven't thought about them much. If you haven't given them adequate thought, that means you haven't prepared for certain inevitabilities.
Real estate investment can help you answer those questions and remove that chill factor.
Let's face it. Not only will you not want to spend your golden years working, you may not be able to, regardless of whether you would like to. You may live well up into your 80s or 90s and be unable to do the job you are doing today—or any job for that matter.
You need to lay the foundation of security and happiness for your future self. Real estate can help you do that.
This is because, as your investments age, they should be making more and more money for you with less and less work output from you. It's a sort of financial magic that will serve you especially well in later years. That's why people get into investing in the first place.
In order to prepare for your retirement in this way, however, you must examine your core. That means that you will need to make sure your needs are taken care of in such a way that you don't have to spend all of your time scrounging for pennies. You need the time to learn about real estate, and working in someone else's office for peanuts isn't going to get you that.
According to Robert Kiyosaki, author of the Rich Dad book series, you need to build a business system that can operate without you, thereby making money without working for it. Then take a portion of that money and invest it, thereby exponentially increasing your earning potential. Have you heard of making your money work for you instead of vice-versa? That is what this means.
As you grow older, you should be working less, not more. This is partly because your ability to work will decrease. But it is also because you deserve to be able to work less and enjoy your life more. Retirement isn't about being forced out of a job—or at least it shouldn't be. It should be about leaving a job to catch up with your life. To spend time doing the important things like hanging out with family and friends, engaging in hobbies that you enjoy and becoming involved in life-enriching activities such as spirituality or art. Not to mention getting enough exercise.
If you are in a job now that doesn't allow you to do these things because it doesn't pay enough or because you don't have enough time left over in the day to learn to make a change, then consider switching to a job that pays more or gives you more time. Develop a business system in which you can train people to do the work for you. Then, when that is up and running, and providing you with the money and time you need, start learning about real estate.
Put your extra money into real estate investment—but don't put in more than you can afford to lose on the learning curve. Real estate investment is a skill like any other and you will make mistakes. Don't be the farm on your first few purchases. In fact, don't bet the farm at all. Make sure you are making enough money to live on, and then enough money to invest on.
After a while you should see your money start to grow exponentially. Then you are on your way to a happy retirement.
By: Alex Anderson
Those can be chilling questions if you haven't thought about them much. If you haven't given them adequate thought, that means you haven't prepared for certain inevitabilities.
Real estate investment can help you answer those questions and remove that chill factor.
Let's face it. Not only will you not want to spend your golden years working, you may not be able to, regardless of whether you would like to. You may live well up into your 80s or 90s and be unable to do the job you are doing today—or any job for that matter.
You need to lay the foundation of security and happiness for your future self. Real estate can help you do that.
This is because, as your investments age, they should be making more and more money for you with less and less work output from you. It's a sort of financial magic that will serve you especially well in later years. That's why people get into investing in the first place.
In order to prepare for your retirement in this way, however, you must examine your core. That means that you will need to make sure your needs are taken care of in such a way that you don't have to spend all of your time scrounging for pennies. You need the time to learn about real estate, and working in someone else's office for peanuts isn't going to get you that.
According to Robert Kiyosaki, author of the Rich Dad book series, you need to build a business system that can operate without you, thereby making money without working for it. Then take a portion of that money and invest it, thereby exponentially increasing your earning potential. Have you heard of making your money work for you instead of vice-versa? That is what this means.
As you grow older, you should be working less, not more. This is partly because your ability to work will decrease. But it is also because you deserve to be able to work less and enjoy your life more. Retirement isn't about being forced out of a job—or at least it shouldn't be. It should be about leaving a job to catch up with your life. To spend time doing the important things like hanging out with family and friends, engaging in hobbies that you enjoy and becoming involved in life-enriching activities such as spirituality or art. Not to mention getting enough exercise.
If you are in a job now that doesn't allow you to do these things because it doesn't pay enough or because you don't have enough time left over in the day to learn to make a change, then consider switching to a job that pays more or gives you more time. Develop a business system in which you can train people to do the work for you. Then, when that is up and running, and providing you with the money and time you need, start learning about real estate.
Put your extra money into real estate investment—but don't put in more than you can afford to lose on the learning curve. Real estate investment is a skill like any other and you will make mistakes. Don't be the farm on your first few purchases. In fact, don't bet the farm at all. Make sure you are making enough money to live on, and then enough money to invest on.
After a while you should see your money start to grow exponentially. Then you are on your way to a happy retirement.
By: Alex Anderson
California Real Estate Investing – Three Important Things To Note Before Investing There
California is, no doubt, the jewel on the Pacific coast of USA. It has enchanting natural beauty and abundant resources that have attracted thousands in search of a better life. California real estate investing, therefore, is the ideal way to capitalize on the great opportunities available in the state.
California has all the ingredients that make it attractive to those who wish to move in there. It offers a sophisticated urban lifestyle, great educational opportunities from kindergarten through university, good business environment, recreational facilities and artistic avenues. From the sun-kissed beaches of San Diego to the studios of Hollywood and the digital revolution spurred on in the Silicon Valley, all represent a fine blend of natural endowment and human ingenuity. The state’s population is multi-ethnic and the humming cultural scene reflects this trend.
Whether you wish to make California your home or earn returns that are inflation-proof, California real estate investing is one decision you would never regret.
The instant image that strikes one when discussing real estate in California is of the multimillion-dollar mansions of the rich and famous. Majestic in size and design and lavish in detailing, these homes represent the ultimate in luxury that money could buy. Does that mean a small investor can never buy property in California?
The answer is an emphatic no. Here are a few things one should keep in mind while scouting for California real estate investing opportunities.
• Localize your search and narrow down your criteria in specific terms, as it would make you focus only on those properties that meet your budgetary and other constraints. Not doing so would mean getting lost in the plethora of tempting properties that are well, not affordable by you.
• California has a well-regulated real estate industry. The real estate agents and brokers work under license from the state administration. Tie up with an experienced agent who has a large number of property listings to offer you.
• Look for properties in locations with good growth potential. They would be cheaper to buy but would show considerable appreciation later on. Inspect several housing options like single homes, condos, units and apartments. For commercial property, think of the business potential in the area. Arrange for an objective inspection to bring out the negative aspects, if any, in the property. In short, do thorough research before choosing the property.
• Familiarize yourself with the regulations governing real estate transactions. These formalities are meant to remove misconceptions and provide transparency in dealings. Never attempt to bypass any regulation for the sake of convenience.
Copyright © 2006 Joel Teo. All rights reserved.
California has all the ingredients that make it attractive to those who wish to move in there. It offers a sophisticated urban lifestyle, great educational opportunities from kindergarten through university, good business environment, recreational facilities and artistic avenues. From the sun-kissed beaches of San Diego to the studios of Hollywood and the digital revolution spurred on in the Silicon Valley, all represent a fine blend of natural endowment and human ingenuity. The state’s population is multi-ethnic and the humming cultural scene reflects this trend.
Whether you wish to make California your home or earn returns that are inflation-proof, California real estate investing is one decision you would never regret.
The instant image that strikes one when discussing real estate in California is of the multimillion-dollar mansions of the rich and famous. Majestic in size and design and lavish in detailing, these homes represent the ultimate in luxury that money could buy. Does that mean a small investor can never buy property in California?
The answer is an emphatic no. Here are a few things one should keep in mind while scouting for California real estate investing opportunities.
• Localize your search and narrow down your criteria in specific terms, as it would make you focus only on those properties that meet your budgetary and other constraints. Not doing so would mean getting lost in the plethora of tempting properties that are well, not affordable by you.
• California has a well-regulated real estate industry. The real estate agents and brokers work under license from the state administration. Tie up with an experienced agent who has a large number of property listings to offer you.
• Look for properties in locations with good growth potential. They would be cheaper to buy but would show considerable appreciation later on. Inspect several housing options like single homes, condos, units and apartments. For commercial property, think of the business potential in the area. Arrange for an objective inspection to bring out the negative aspects, if any, in the property. In short, do thorough research before choosing the property.
• Familiarize yourself with the regulations governing real estate transactions. These formalities are meant to remove misconceptions and provide transparency in dealings. Never attempt to bypass any regulation for the sake of convenience.
Copyright © 2006 Joel Teo. All rights reserved.
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