Category Archives for "Lease Options"

Advantages and Risks of Stock Market Investing

Stocks are longest type of investment you can purchase. By investing in a company’s stock you are actually buying a part of the company’s future and its future profits at the end of the business in all probability. Studies have shown that long-term investment in common stocks have outperformed all other investments including bonds, shares and term deposits. Therefore a majority of investing population invests in common stocks through mutual funds and individual companies.

Most people invest in stocks with the help of tips from experts and friends, advice from analysts, and phone calls and emails from brokers. No matter from whom you take tips and advice, you as an investor should be aware of the benefits and risks in stock market investing. There are several risks which you are most likely to encounter as ways to reduce risks associated with investing.

Being aware of the fact that risk is synonymous with investment in stocks is probably the first big step in stock market investing. Some of the distinct disadvantages which one should be aware of are:

  1. Neither the company issuing the stock or the government can guarantee you the returns on stocks. In many instances your actual revenue can differ widely from what you had expected. Probably, you had expected the price of the stock of a particular company to increase but much against your expectations the prices could fall sharply.
  2. Like all owners, as a stockholder you would be the last one to get paid. A company first pays its employees, creditors and suppliers and pay taxes. Only at the end are profits distributed among its stockholders.
  3. As an investor, you might not be aware of the full details and the current financial situation of the company. Limited information of the company can make investment decision go awry.
  4. The most important risk is the continual adjustment of the price of a stock to fresh information entering the market. This is known as ‘idiosyncratic risk’.

Common stock has the advantages of a desirable investment option. The very risks involved in stock market investment also make it a very profitable investment.

  1. Unlike bonds and term deposits it has the potential of huge gains. Some even benefit from ROIs or annual returns-on-investment on a regular basis. The general return that you can expect from long term stock investing is 10-12 %.
  2. Modern day internet has enabled people investing in stocks to have a more personal and direct access to the financial future and the need of dependence upon brokers have minimized. You can access market data and instant analysis and take control of things immediately.
  3. Stocks are liquid and therefore they can be bought and sold immediately at a decent price.
  4. Stocks provide with legal liability and therefore passive stockholders who are not responsible for running the company are protected against any liability arising from the company’s actions.
  5. Historically stocks have given high returns compared to other investments.
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Best Stock Market Investment Tips

Best Stock Market Investment Tips

Although ahead of investing in market you should need the basic knowledge of how market investment runs & stick to the very best stock market investment tips to become an effective investor. Investing in a market suggests basically purchasing the ownership interest in a firm. If the company performs well, value of shares hold by you also increases & your profits would rise. In case this company performs poorly the worth of shares is more likely to go down.

Whenever you purchase the share, you are simply buying a little piece of firm. You become a joint-owner of the firm with all other shareholders. This enables you to attend shareholder meetings & be involved in the certain decisions & you may vote on the company matters & be heard.

Lots of people generally do not want to be investor just to attend shareholder meetings and be involved in certain decisions. People make investments since they need their cash to grow on their behalf and multiply. The market offers several methods to invest your cash and make benefits.

When it comes to investment, you may invest your cash in market via the mutual fund, by yourself, or through the help of the stockbroker. But Mutual Funds rarely beat the stock market due to rules added to them. The only one you may count on is you, thus study the best stock market investment tips to be a profitable investor.

The market gives many benchmarks however the 3 hottest indexes are the Dow, the NASDAQ, as well as the S&P 500. The prices of those indexes were dependent upon the stocks they track. As an example, the S&P 500 tracks 500 stocks. If these 500 stocks increase on the average, the S&P 500 index climbs. Set your market investment goal to hit the market. Your investment profit needs to be greater than the benefit of major indexes.

Every investment has risk, the more risk you are taking, and the more returns you make. Just as one investor you purpose need to be to at first determines the risk you could be ready to take and invest your money accordingly. To illustrate, a penny stock is more risky than a huge company such as Microsoft or Wal-Mart. On the other hand, a penny stock can easily increase 100%, 200%, 300% or more. Although big firm stocks such as Microsoft or else Wal-mart can be much riskier if you choose you invest your money in it.

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To Win on Financial Markets, Know the Difference Between Gambling and Investing

Before you buy/sell an asset, you should be clear on why you are doing so. Is it that an asset price is rising and you buy in the hope of making a quick buck? If this is the reason for your purchase but you cannot sensibly identify what’s pushing up the price, I call this gambling, not investing. Your action is based on the hope that you will gain but not informed by any analysis of what will cause the gain.

Far too often I have met people who get into assets for no deeper reason than: all my friends are getting into this; look how much its price has been going up; a relative (with no record of excellence in investing!) told me I should buy. These people are brave gamblers.

When the price of gold was rocketing up a few years ago, several persons asked if I wasn’t joining the gold craze. I asked them to identify specific factors driving the price of gold. The only response two of them gave was: “Well, it has been going up so much. I can’t imagine it wouldn’t go up more. If you don’t get into it, look how much you could lose.” They were gambling, not investing.

When you are investing (buying, selling, selling short, etc.), you will always be able to specify what you think will influence the price of the asset. You may turn out to be wrong and might have to change your investment. But the point is, you will not just be leaping in the dark in the hope of landing in a grand place. You will be learning to identify what drives asset prices and, hopefully, with experience and thought, become better at it.

For example, when Apple announced its earnings on Jan 27, 2014, its stock price fell sharply. Suppose I had bought shares of Apple, thinking that because the share price had fallen so sharply, it was definitely going to recover. Unless this belief was rooted in technical analysis and/or a lot of experience with how Apple’s stock price would bounce back up, I would call this purchase a gamble.

Suppose, however, I had bought Apple well aware that its earnings weren’t great, but based on clear indications that it would be creating new products that would push up the stock price. This purchase would not have been based on just a wish or hope. It is what I call investing.

There is usually an abundance of information on the internet on what influences asset prices. A little research and a willingness to think can tell us what is likely to drive an asset price. If we are unwilling to do this research and analysis, we may be better off not risking our hard-earned money.

We are always told that the odds of winning in casino gambling are typically very low. If we view the financial markets like a giant casino, we should not be surprised if we lost badly.

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Property Millionaire Intensive

Exempt Markets Help Avoid 4 Costly Mistakes

The “Classic” 60/40 Portfolio

Basically, this portfolio is constructed with a mix of 60% stocks, 40% bonds. The theory (or selling feature) is that this is a pension-style approach. You are presented with upside growth opportunity with stocks, safety and income with bonds.

Potential Problems:

• Significant volatility – During the 2008 liquidity crisis, many “balanced” funds ended the year down 20%, 30%, or more.

• In a low interest rate environment, bonds may not provide adequate income, and may lose value if rates start to rise.

• Little to no inflation protection.

The “100% Equities for Everyone” Portfolio

This idea, espoused by some advisors, is that the only way to true investing wealth and security is to go “all in” to the stock market. The highest returns over you investing lifetime will be made in the equity markets, they advise.

Potential Problems:

• Investing Near the Top – You are most likely to be attracted to this idea when recent stock market returns have been good. Therefore, the tendency is to buy high, potentially hurting returns.

• Long Bear Markets – There have been time periods of 18-20 years in which the market has failed to gain, start to finish. If you are 50 today, are you willing to wait until age 70 before your equities start gaining?

• The “Pillow Effect”- Most investors cannot psychologically take the stress of seeing all of their hard-earned money fluctuate up and down so much on a daily basis. Giving up sound sleep is no way to invest.

100% Private Exempt Market Products

Some exempt market sales representatives will tout all of the high income and growth potential in their products, and see no problem with you placing your entire portfolio into their selection. Why make 3% in GICs when you can make 8% in our products, they ask? The temptation of high returns can be difficult to resist.

Potential Problems:

• Risk – While risk may vary amongst offerings, regulators view the entire category as high risk. These products should never be compared to GICs. It’s like comparing a hammer to a saw, different tools for a different job.

• High Expectations That are Not Sustainable – A few years ago, many lending strategies such as Mortgage Investment Corps (MICs), offered high yields of, say, 8% per annum, paid monthly. Recently, we have witnessed a great deal of competition amongst lenders, causing rates to lower. So an 8% rate could change to 5% overnight.

• The “Blow-Up” Factor – Selecting exempt market products could be appropriately compared to navigating your way through a minefield. By yourself, with no equipment to detect the mines, the chances of stepping on one, and causing significant injury, are fairly high. When selecting exempt market products, the same is true. Without an experienced team of professionals to guide you, there is a reasonable chance that your product will not turn out as expected, and perhaps even go to zero.

Markets Made You Afraid? Just Put Everything HERE

After a significant drop in the markets, many investors are naturally afraid of continuing losses which could wipe out everything. So their insurance-license advisor recommends they place their entire portfolio into a Guaranteed Retirement Product (some of them end with a “plus” for example). The sales pitch is that you are guaranteed income for life, and you will never lose your principle.

Potential Problems:

• Extremely High Fees – The annual fee can be 3 or 3.5%, which is huge, and lowers your return.

• The Guarantee May Not be Worth It – A product that guarantees you against any losses over 10 years is normally not necessary, as it is less likely the product will be below your original amount invested over that time.

• Terrible Timing – The time your advisor should have recommended this product was before the correction, when the markets were high, not after. You are essentially locking-in losses, and lowering your upside when markets recover, the worst possible combination. As it turns out, since the great 2008 correction, markets have recovered significantly. Anyone who purchased these products close to the bottom missed out.

• Commissions – Perhaps you were so afraid of losing your money that you failed to realize that your advisor just “double-dipped”! He/She was paid handsomely when you implemented the first portfolio, and then paid a big fat commission cheque again when you bought the “Plus-type” product. Great for the firm, great for the advisor, not so great for you, the investor. If there ever was an instance of financial malpractice, this would be it.

Now that you know what to look for, ask yourself: “Do any of the above categories apply to me?”

One huge potential problem is that your banker is paid to sell GICs and mutuals, your broker stocks and bonds, your insurance advisor insurance products, and your exempt market representative private products (to be accurate, I am being simplistic, there is some overlap). Since many financial service professionals represent and are paid for selling their branded products, they either do not have familiarity with other categories, or have no interest in seeing your money go elsewhere.

It would be a tremendous benefit to you, the investor, if you received guidance from someone who is familiar with many product types, and can recognize when an outside party is required. Many times, the suggestion to keep everything “in-house” can cost you financially.

A Reasonable Solution

Now that we have seen a number of all-to-common ways that an investor can misallocate their investment assets, let’s discuss a strategy that can help you accomplish the following:

i. Reduce stock market volatility, reducing stress
ii. Create safety and guarantees, allowing you to sleep well at night knowing your money is safe
iii. Provide for market growth, which you want to participate in
iv. Protecting your portfolio against inflation, so you can keep spending and avoid lowering your standard of living
v. Make the process simple and easy to understand

One of the first discussions I always have with a client focuses on safety. You want to make sure an appropriate amount of dollars are allocated towards guaranteed investments, such as GICs, government bonds, annuities, and other, similar instruments. This assures you that, no matter what happens, you are able to sleep well knowing that money is there. That feeling of security is powerful.
Next, having a suitable mix of public stocks and bonds can provide for growth as well as safety, income, and diversification. These are important ingredients in a properly designed portfolio.

Lastly, an appropriate allocation to select private exempt market opportunities, containing real asset investments, can serve to stabilize your portfolio, protect you from the eroding effects of inflation, and can possibly be the “saviour” of your portfolio in times of financial crisis. I recently watched a video where famous billionaire investor Michael Lee-Chin (founder of AIC mutual funds) explains that, during the 2008 crisis, the part of his portfolio that saved him were his private investments.

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What are the advantages of investing in industrial property?

These properties are listed for commercial, retail, or industrial use. They are basically located on the main areas, boulevards, or avenues with a range of other properties. Think of all your trips to the grocery store, you can see all the shops in a line. They all have one common goal- to generate income for their investors.

British people are very passionate when it comes to investing in property. They love investing in residential property, but they should not limit themselves to just that and think of moving beyond.

The trend of investing in property is increasing with the private investors and they are seeking for diverse opportunities in terms of investing in properties. Like, investing in industrial units to let is a wise option for them.
Earlier investing in commercial property was limited to professional investors like the insurance companies and pension funds.

But now, in the recent past, there has been a rise in the breed of investors, mainly small private investors who are experienced in purchasing flats or property on to let and are now progressing towards entering the market.  For them, investing in industrial units to let is a perfect and wise decision.

So, what is it that draws these investors for investing in commercial property and what are its benefits?

Primarily, investors can reap a higher rate of income as compared to the residential property, even though it is achieved with a lower rate of capital growth. The total rate of annual return on commercial places is more.

Secondly, the length of the tenancy agreement is a plus point. As in a residential place, the common period is 6 months which means a lot of investment from the side of the investor. But, in a commercial place the duration is much longer and stretches from 5-15 years which gives the investor an assured rate of return. The prices are altered every now and then to keep the rate in sync with the price inflation.

Thirdly, these properties provide more protection if the tenant does not pay the rent.

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Property Millionaire Intensive

Staying Motivated: Why Some Investors Are Successful While Others Are Not

Ever wonder why some investors are having their worst years while others are having the best they have ever had? I met with one really successful investor that believed the next three years will set him up for the rest of his life. He will be retired, or at least be able to retire, before he is 40. It really comes down to two things in my opinion. The first is the ability to align what you can control with what you can’t. What I am talking about here is the ability to adapt to your surroundings. I can talk all day about what I see in the markets and what I see other successful investors doing, and I do frequently but that is not the topic of this article. The second and more obvious reason for success is the ability to stay motivated. That is especially true in a tough environment which so many believe we are in. Here are some ideas to help you stay on tract and stay motivated:

  1. Have a good reason: This is by far the easiest way to get and stay motivated but it needs to be in the forefront of your mind. This is your big “why”. Why are you doing this in the first place? It needs to go deeper than the money. What will the money buy that you want? Generally it goes deeper than the new car or the new house (although these can be extremely motivating goals too). Having kids and wanting to set them up for an enjoyable and prosperous life is a great why. Taking care of a family member, returning a favor to someone you love, starting or helping a charity that means something to you are all good examples. Don’t make light of this. Your big why could be the difference in you getting what you want and not. Spend some time and come up with the reason you NEED to be successful. Once you have it put reminders up around your office to show yourself why you need to do the things you don’t want to do, like pictures of your kids. Why is your “why” more important to you than not doing the things it takes to get there?

  2. Reward yourself: I thought this one was a little cheesy until I started to implement it. When Stephanie and I started our first mentorship program we were encouraged to do this. In fact they taught us to reward ourselves for very small accomplishments and normally that was accomplishing weekly goals. As long as we made all of our seller calls, sent all the letters, hung all our signs, etc., that Sunday we would treat ourselves to a nice dinner, a movie, or something else we enjoyed together. We had larger rewards for larger goals and we always drank some champagne when we closed a deal. Because of our motivation to be successful we started drinking a little too much champagne and had to adjust our rewards.

  3. Track your progress: There is not a lot that is more motivating than seeing your results. One thing Steph and I did is update our personal financial statement once a quarter. We spend the 10 or 15 minutes this takes so we can see our net worth move up or down. I also like to graph the net worth so I can see the progress over time. It is extremely motivating to me to see big jumps on the graph. Another example of this in action is exercising. This is one of those things that is very difficult for me to stay motivated for. When you start working out and you start gaining or losing the weight (depending on your goal) your motivation typically increases and you want to work out more to see more results. It is very addicting. Some things are easier to track than others but I encourage you to track your progress and watch your own success.

  4. Break your goals down: it is hard to get motivated to accomplish something that is really far away, especially if there is not a clear path to get there. Have you ever arrived at work in the morning and wondered where to even get started? Having so much to do can be overwhelming and actually shut you down. By breaking it up and prioritizing, it is easy to be motivated for the next thing on your list. To accomplish a big goal you need to break that down into several smaller goals or smaller tasks. I say tasks because a task is something that will help you accomplish your large goals and is something you can control. I once had a goal to do a deal a month. Seems like a reasonable goal but until I broke down the tasks it took to get there I could not find the deals. Once I learned to break it down to daily tasks it became extremely easy to reach that goal and required me to set larger goals. If you want more deals, break that down to how many deals you want. Then break that down to how many letters you will need to send, or how many calls you need to make, or how many offers you need, or how many doors do you need to knock on. It always comes down to numbers. You can do as much or as little as you want if you break goals into tasks and actually perform the tasks.
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Want To Learn About Real Estate Quickly?

Being flourishing in real estate investments can be hard. If you are looking for excellent tips on how succeed in real estate investing, then the following article is a great place to commence. Continue reading for proficient ideas on finding your success in real estate investing.

As with any investment, you should do research, examine the risks and invest intelligently. Have a worksheet handy as you look at up to 50 properties around the area in which you plan to invest. Things to list contain current pricing, projected rent earnings, and mend budgets. This will help you form out which deals are the best.

Know that you will be spending more than the primary home price. You may have to pay legal fees, closing costs, and staging costs, along with many other possible expenses that will bang your bottom line. Consider margin costs and put them in the line item list.

Location is very essential in real estate. Many of the additional factors, such as property condition can be changed. Properties that are contained by depreciating locales will infrequently be a wise investment. You want to scrutinize property values comprehensively in those areas that intrigue you.

Don’t automatically presume that the value of a property is going to go up. This is not how the market works, and you should absolutely not count on this happening. The safest investment is properties that will produce a cash flow right away. Then you will have an income you can calculate on, and you can probably look forward to property admiration.

Know the fundamentals of real estate before you spend money. A fault in this field can cost you huge money. Investing in the right type of property is one of the best things you could do.

Turn clear of making purchases in declining neighborhoods. Always pay concentration to where you are buying a piece of property. Research it. A good deal on a house that’s pleasant may be because the area is not bad. You might find it extremely complicated to resell your home, Alongside dealing with the anxiety of living in a high crime area.

Understand the neighborhood former to making any purchasing decisions. The property itself is important, but the location can be even additional important. And you must know what the locality laws are if you plan to use the investment location as a business. Speak to neighbors and get an idea about how rapidly properties are rented in the area.

Do not let your investments in real estate take up your entire money. Make certain that you always budget to the best of your capability when it comes to your real estate investment property.

As the earlier information shows, you must be aware of the market if you want to succeed at investing in real estate. Now that, you have read these tips, you should have what you need to form out some good investments. If you want to set out in this field, understand what it takes for anyone to do well when they invest in real estate, and make certain to keep these tips handy.

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How to Get Into the Field of Property Management

Education

While there are not many colleges that offer a bachelor’s degree specifically in property management, you can take other routes. By getting a degree in accounting, public administration, or business administration, you will have a head start on what you need to know. Earning your real estate license in the process gives you valuable information that will help you in your career.

No matter which path you take to earn your degree, there are a few classes you need to take, including courses that cover real estate law, leasing laws, and financial management. You should complete courses in bookkeeping, too. A certificate course that covers multi-tenant housing and government-assisted housing is also beneficial.

Licensing and Certification

In some areas, to be part of a successful property management team, you may need a license or certification. This requirement varies by state, so you should check with your state’s real estate board for specific requirements. If you are required to have a certificate or license, you will have to renew it on a regular basis, and you must complete a certain number of training courses each year to maintain that certification.

Even if your state does not require a license to work in this field, you should consider getting a certification. By going through the certification program, you can show potential employers that you have the knowledge needed to perform the job to their high standards. Prior to exams, however, most programs do require you to have some work experience as a leasing agent or assistant manager. Check with the National Apartment Association or Certified Apartment Manager sites to learn the exact requirements.

Career Experience

Once you get your education, you are ready to enter the field of property management. Of course, you need some experience in order to run your own office. You can start by working as a leasing agent for a firm to help gain necessary skills. Smaller groups may even allow you to take a job as an assistant property manager. This allows you to shadow the current manager and learn the necessary skills needed to run your own office in the future. No matter the size of the leasing agency, you need to prove that you understand maintenance and financial management before you will be allowed to be in charge of your own area.

It takes time to gain the level of education and experience in order to run your own property management office. However, by keeping yourself abreast of the changing real estate regulations and having a firm understanding of financial and business management, you can succeed.

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Property Millionaire Intensive

A Guide to Select the Best Property Management Services

Choose the right company

There are many property management companies which will provide this kind of service in your locality. Finding the right company among so many is little bit difficult. You need to find an efficient company who can manage your property. Never hire the first company that you contact. Short list at least five companies and then visits their websites to check what the services that they are offering are. Then, after you select a company, you must call them up and talk about your requirements.

Decide what you want from the company

Each and every company has different needs. You need to be clear within yourself what you need from the company and how can they benefit you. This is something that you need to decide before you are making your first call to that company. Jot down all these requirements and assure what you really want from these management companies.

Referrals

Referrals play an important role in the process to select something. You can seek recommendation from others to know about what company they chose and how did it benefit them. In this way, you are going to find a reliable company who can provide you the best management services. But if you do not have suitable information from this, you also have other options to choose from.

Do an online research

Internet can be the best friend when you are searching about some information. Browse online in order to find the websites of the companies that are doing a great work to manage property. You can also get the contact details of the companies from their websites. Always check the review page of the company’s website where the previous customers have sent their reviews.

Since, the property management is not an easy task at all, it is advised not to handle it on your own completely. Moreover, you also have many other important tasks to complete. Therefore, it is very crucial that you do not get involved in the matters of management when you know that you are completely a novice in this field. Instead hire an expert to accomplish the tasks efficiently.

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Property Millionaire Intensive

Could You Become A Property Investor

I don’t mean, of course, that you wish to move in with them! Rather, it may be felt that it would be nice for you to own a property portfolio. You need to think about whether you have the appropriate skills and what is required to really be successful in this area.

One point that is worth making at the outset is that property investment clearly requires a considerable degree of expertise. Most people who have been successful in this area have demonstrated a real understanding of the property market, property maintenance and of particular locations. If you don’t have such knowledge, then you’ll certainly need to start learning.

Understanding the market within a particular location can be especially useful and may make a good start. How should you go about doing so? In the first instance, it makes sense to understand the geography of the location. You’ll find it very difficult to understand the pricing of properties, if you’re unable to identify the geographical factors that have an influence in this respect.

You also need to learn a certain degree of empathy. What do others look for when they come to make property purchases? This is something that’s always useful to know, since families and individuals are likely to hold different views to your own. You may not, for instance, give particular consideration to the proximity of schools and playgrounds. For those with young children, however, such factors are likely to be particularly important.

Once you have an understanding of the area and its attractions, you’ll need to keep a close eye on the property market. Take a look at the properties that are being sold. What sort of sale prices are they achieving? Who appears to be buying them? It’s amazing how much information you can gain in this way.

Some would suggest that you should learn about investments by reading numerous books. When it comes to investing in property, however, nothing compares to having this detailed understanding of a local market. It will enable you to identify great deals and to make the right moves.

Of equal importance is the fact that it will allow you to act quickly. You’ll certainly be in a great position to snap up the real bargains when they come on to the market.

Having read the above information, how do you feel about becoming a property investor? I ask the question at this stage because I believe that your mentality is of particular importance. If you believe that you can succeedFree Reprint Articles, then it’s very likely that you’ll be able to do so.

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