Browse Month by May 2016
Investment

How to Start Investing in Real Estate

Investing in the estate market these days does not have to be complicated or expensive. Even ordinary people can enter the market after learning about how to start investing in properties. Today, you can get valuable real estate investing information from the internet and have it downloaded into your computer or laptop anytime you want.

Real estate moguls and experts do not have a monopoly of the industry. While these moneyed folk have all the money to buy all the prime property that they want, you too can have your own share of the profits with rentals. Despite what you would consider as a financial setback in your dearth of investment capital, there are actually options that you can turn to as you start building your wealth through rentals.

As you will learn from your readings on how to start investing in properties, the three most important components of real estate investing are money, property, and management. Take a look at each of these three components:

1. Money – you do not have to have the entire amount of money needed to cover the cost of the piece of property that you are buying. There are financial institutions that are ready to accommodate your financing needs even if you do not have a perfect credit record. Instead of simply choosing the property you are able to invest based on price, the more important thing for you to consider is whether you can afford to repay its mortgage with the rental income you will be getting from it.

2. Property – while you might not be able to afford prime property right at the heart of the city, you sure can find a piece of rental property that will get a good rental rate right where you are located. Find out where the best places to find real estate rentals are and look for an affordable and attractive property in those places. The truth in how to start investing in properties is that only the right kind of property can give you the profits that you expect quick and easy.

3. Management – as a landlord, you have the responsibility of being able to manage your own real estate “enterprise.” Most landlords complain about problems like delays in rental payments, unpaid rent, repairs and maintenance costs, and other concerns. You do not necessarily have to deal with these problems when you learn how to properly manage your rentals.

I’ve prepared some powerful real estate and investing materials for you below, enjoy!

Investment

How to Hire a Dependable Advisor

There is a reason most of us depend on our friends or ourselves for making important investment decisions. It is hard to find a dependable professional source of investment advice. There is no dearth of places to turn to for investment advice, but the decision to put a portion of your financial future in someone else’s hands should be made very carefully after collecting sufficient information.

What are the different types of financial and investment advisors?

  • Investment advisor is a professional firm or an individual that advises clients on investment matters. They may manage trust funds, pension funds and personal investments like stocks and mutual funds on their customer’s behalf.
  • Financial planners offer investment advice and help clients with savings, taxes, insurance, estate planning and retirement.
  • Brokers buy or sell stocks, mutual funds, bonds on their customer’s behalf.

How do I pick a good investment advisor?Ask your friends and family if they know a good investment advisor. Also compare price quotes from multiple qualified investment advisors listed on B2B marketplaces and ask them for an appointment.

Interview your financial advisor extensively, judging their professionalism and experience. Let him or her learn about your tax situation, fiscal health and long term goals.

Ask the following questions to narrow your search for an investment advisor.

  • What experience do you have?
  • Where are you registered?
  • What investment services do you extend?
  • Do you have all the required licenses.
  • How much money do you manage for other clients?
  • How have your investments performed in the past one to ten years?
  • How will you assist me with my investments?
  • How are you paid?
  • Do you require a minimum investment?
  • How are you different from other investment or financial advisors?

Learn how your advisor gains from youInvestment advisors are paid either a percent of the asset value they handle for a customer, a fixed or hourly fee, or a combination of all. They have a fiduciary responsibility to act in your best interest while making investment decisions on your behalf. It is best to at least partially compensate the investment advisor based on his or her performance. In such an arrangement, the investment advisor makes a commission only if he or she meets your investment goals. Be wary of investments that pay a large upfront fee to the investment advisor or lock you into investments that levy a withdrawal penalty.

Check credentials and references

It is important to check references and credentials. For example in the US ask for ‘Form ADV’ for the advisors, which provides you with the advisors background, services offered, mode of payment and strategies used. Form is obtainable from the advisors, the SEC, state security regulator or those advisors managing $25 million or more in client assets. Also inquire about the advisors educational and professional background.

Know how to evaluate your advisors

Once you have hired an investment advisor, remember to evaluate his or her performance at regular interval. It is also important to meet with them regularly to review short and long term goals and to adjust your investment portfolio. Apply the following standards for evaluation.

  • Review performance: Check regularly how your money is doing in the investments advocated by your advisor. Evaluate portfolio performance with regard to investment goal and risk tolerance for invested assets. Use a proper benchmark or metric matching your investment strategy for various assets. For example if you have invested in stocks, use the market index as the benchmark for comparison.
  • Cost-benefit ratio: Though your money maybe doing well, it is important to ascertain the ratio of investment return delivered by your advisor to his or her earnings. Are you paying more than you thought for the investment return?
  • Quality of investment recommendations: Evaluate and test your advisors knowledge of the latest investment approaches, preparedness to stay above the rest in the changing market and insights or suggestions on new investment strategies.
  • Working relationship: Your investment advisor should regularly communicate and update you about your investments.
  • Personalized service: advisor should regularly review your investment goals and preferences and tailor the investments accordingly. You should be wary of investment advisors who show too much reliance on software programs to create your portfolio.

Hiring a good investment advisor is important to secure your financial future. Hire someone you can trust and can easily communicate with. If you advisor does not perform as expected, set up a meeting to rectify the situation else find someone who could be more helpful.

Daljeet Sidhu is Co-Founder at TradeSeam.com, a business network and B2B Marketplace, connecting customers, suppliers and service providers; all who have an interest in accelerating the growth of their business. Compare price quotes from multiple Investment Advisors. If you are a supplier, join the TradeSeam Business Network to receive qualified sales leads. If you are a buyer, visit the TradeSeam B2B marketplace to compare price quotes from multiple sellers of goods and services for your business.

 

Investment

How to Manage Your Real Estate Investment

Many people think finding the good deal is the hard part. They spent many hours looking and searching for the right deal. They crunch the numbers over and over again. They make numerous calls, and walk through many attics and basements, Florida notwithstanding. They get their hopes up, and then dashed within the same twenty-four hours. They check the neighborhood, and research, check, and then double check market values. They write up offers, many with low, almost ridiculous prices. After many hours spent, sacrifices made, offers countered and exhibiting much persistence, they have an offer accepted. Now the hard work begins.

While it may seem that finding a profitable deal is the hard part, it will mean nothing if you don’t know how to manage your real estate investment. Especially in today’s depressed real estate market, finding the profitable deals is the easy part. Managing real estate correctly will make or break the investment. On the surface, it seems pretty simple. Rent the property to a good tenant, collect the rent, and pay the bills. Sometimes it is that simple. When you have a decent tenant who pays the rent and keeps the property clean, it makes life so much better. But as many real estate investors know, all tenants are not created equal.

One of the first steps to managing real estate is to choose the right tenant. Many investors learn how to manage their investment the hard way. Some tenants are decent, upright, honest people. Other tenants do things that border on being criminal. Managing real estate is more than just managing property, it is also managing people. Although it may sometimes seem difficult finding that right tenant, it is many times much more difficult getting rid of that tenant. There are a lot of good books to read that give terrific advice and suggestions on how to manage your real estate investment.

To some people managing people and real estate comes naturally. Other people will continue to learn from each property. And to those that choose not to manage their investment, they can always hire a property manager. When you hire a property manager, you will need to work this cost into your budget. They will end up saving you time, and may end up saving you money. You won’t know the true answer to this until after some time has passed. After a while you will learn by necessity how to manage your investment. Just when you think you have seen and done it all, something will happen that will leave you dumbfounded.

If you have a property where years later you have no very interesting stories to tell about your tenants, consider yourself lucky. If you could own a property and did not have to deal with tenants, your investment would be so much easier and carefree. When you are giving serious thought on how to manage your real estate investment, remember that your time is valuable, your property is valuable, and the tenant that you decide to rent your property to should also hold a high respect and regard for your time and property.

Pat Esposito is an author, an entrepreneur, and a runner. He is the founder of Selfpublishauthors.com and the author of The Informed Real Estate Investor.

 

Investment

Basic Investing Tips

For those who haven’t dabbled in investing yet, it’s high time to learn the ropes. Investing is a broad subject, yet easy enough to get a vague idea of. What makes it complicated is when you start delving in different ways to invest, the kinds of stocks and bonds to invest in, and the calculations on your returns.

You need a lot of information when you’re seriously thinking about investing your money. Just the vast array of investment choices, the ropes you need to learn and the risks involved are quite daunting. Sometimes it stops people taking steps in learning about the subject. For those who have no clue where to start, and need to get an idea of the basics of investing, this one’s for you:

Several questions pop into our heads when we think about investing our money. First, is it easy for non-businessmen or for those not very literate in the finance industry to get into investing? Then we ask, how did people who have invested in stocks get started? How much did they shell out? Because of these questions, some get confused at the enormity of it all so they procrastinate and in the end never even start at all.

Before you start investing, you have to ensure that your debts are under control, you have moderate to good credit report, have built a sufficient emergency savings account worth 3 months of your cost of living and you’re in a 401(k) plan. If you don’t meet the requirements and you still want to invest, it’s very important that you talk to a financial advisor before anything else. It doesn’t bode well to entangle your money between debt reduction, savings and your personal costs, and now you’re going to dabble in investing. You don’t want to aggravate the situation, that’s why it’s a must to get your finances straight first.

Most of the stocks, bonds and mutual funds allow investors to start on $500 and if you’re lucky, maybe even less. There are people who find a $100 stock mutual fund to invest in and this is a great way to start. It allows you to get a taste of investing, lessen your risk to lose too much money, and a good amount to get trickles of return. Where do you get an extra $100-$500? This is why it’s important that you have to get your debts under control, so you can have something left to put away. Save up to get $500 with your next bonus, profits from your overtime work, refund from your income tax, and if you have earned cash from sideline work, put that in as well. You can’t get $500 or more overnight, not unless you sell your right kidney to the black market. So it’s important to keep it somewhere accessible, like an online account that has high yields yet keeps your money liquid.

Another is to ask the investment company if they offer an option to let you bypass the lump sum payment and start investing as soon as possible. There are funds that will allow you to sign up for a monthly automatic withdrawal of $30 – $50 from your checking account.

That is the first step in learning more about basic investing tips. There are more tips to come, which will delve on choosing investments, examining the risks involved in investing and more information about money, stocks, funds, bonds and becoming a good investor.

Dave Stack is a huge fan of saving money and using coupons, coupon codes and promotional codes. He also offers money saving tips to help you earn more savings.