7 Tips to Invest In Real Estate and Become Wealthy

Posted on March 27, 2023 by schatzi

I recently checked the Forbes Rich list of the wealthiest Americans. I could not help but notice the pattern of wealth creation; almost all the wealthy individuals were entrepreneurs or off springs of entrepreneurs. Secondly, they derived their wealth from owning or investing in real estate, technology companies, stock market, manufacturing, entertainment industry, retailing and commodities.

This pattern of wealth creation reinforces my belief about the primacy of investing in real estate as vehicle for creating wealthy. I believe you can succeed, investing in real estate. What you need is to have the right attitude and mindset.

I have learnt by trial and errors some of the important lessons in real estate investing. My main area of focus has been residential properties. Even if you are an experienced real estate investor, some of the tips I share still apply to your investing, because they are timeless tips that will set you on the road to success.

Here are some specifics about investing in real estate that could propel you to wealth quickly. I urge you to take these tips seriously

Tip#1.Start small.

The reason you want start small is you are on a learning curve. You want to keep your risk small. I would suggest you invest a lot of time learning the basics of real estate, and a little money in your first deal. Unfortunately most people do the opposite…they invest little time and spend a lot of money. This is the reason many investors fail and they wander why they failed. The fact, real estate is a wealth generator does not mean you don’t have to learn about -how it works to make you wealthy.

Tip#2. Invest for value. Avoid speculation

When you invest for value, you are on the right path to wealth creation. How do you invest for value? The answer is simple. Look for properties with cash flow and potential capital gains. This is important because value investing in real estate is the basis for wealth creation. Donald Trump, Sam Zell, Donald Bren and all the other real estate moguls you can find in the Forbes richest list made their fortune in real estate by creating value. There is a difference between a value investor and a speculator. A value investor buys a property based on overall value, both today and in the future. A speculator buys with a hope that the price of the property will increase…this kind of approach is no different from playing at the casino tables in Las Vegas.

Tip#3. Start and stay close to home.

When you are starting out as a beginner investor, it’s important to concentrate on an area close to home…one you can get to know very well. When I say close to home, it means you can drive, walk, or cycle around the area regularly. When you concentrate on an area close, you can observe if it’s declining or growing. You can observe the trend in sales and property rentals. Also, look for the top brokers who operate in your area, call them to find out more about the area. This is important because when a property comes on the market, you can know quickly if it is a good deal or not and you’ll be able to act fast. My first real estate deal was a disaster because I bought a property that was 3 hours drive from home. I failed because, I was not close enough to understand and observe the trends in the local real estate market.

Tip#4. Expect to make mistakes.

When you start investing in real estate or in any business, you are bound to make mistakes-everybody I know does. Remember your mistakes aren’t setbacks. They are steps in the learning process. What is important is to learn from your mistakes, correct and keep on taking action. The fact you can make mistakes is one reason to buy properties with positive cash flow, because it can help you buffer those mistakes. There is a theory for success called accelerated failure. The reasoning behind this theory is that you are most likely to fail at the initial stages of starting any business, however the faster you can fail forwards the faster you can begin to succeed. So don’t let the fear of failing stop you from starting investing in properties…it’s all part of the learning curve.

Tip#5. Know what you can afford.

This means finding out how much it will cost you for the cash flow you want. In other words, what will it cost you to get an ROI (return on investment) of 20%, 30%. Secondly, if your assumptions about the property deal are wrong, can you afford the losses from your mistakes. Before you start investing, ask yourself these questions; how long can I afford a vacant property if my tenant moves out? If there is a costly maintenance problem, can I afford it? Remember, the purpose of real estate investing is to solve your financial problems, not give you bigger ones to solve.

Tip#6. Look for Ugly ducklings you can turn to swans.

One of the best ways to make money in real estate investing, is to look for is a property that someone has walked away from because of a problem. Figure out how to fix the problem and you can instantly increase the value of the property. One example that comes to mind is a one bed flat I bought recently in an apartment building. The problem with the property was presence of mould and damp in one of the rooms. Because of this problem, I was able to buy the property and 25 percent below market value. I solved the problem with the help of a building specialist, and as a result, I was able to increase the value of the property and charge more for rents. The lesson here is focus on turning “ugly ducklings to beautiful swans” so you can create value for your portfolio and get rich in the process.

Tip#7. Always remember to look at the numbers.

One of my mentors, Robert Kiyosaki, bestselling author Rich Dad, Poor Dad often says, “Think with your calculator, not your heart”. This is important because once you understand the area you’ve chosen to invest in and know what property you are looking for, you need to follow through by looking closely at the numbers on your chosen property. The numbers are; the price you pay; the mortgage interest; rental income; maintenance cost; vacancy rate and every other factor you need to analyse the profitability of your investment. These numbers should all add up to…making you, money or else you wind up with financial problems.

Warning, Cheap may mean expensive

One of the commonest mistakes I see investors make is the assumption that because a property is cheap it’s going to be profitable. This is far from the truth because price is not the only factor for success when you are investing in real estate. You should never let your guard down or sacrifice your principles by what seems an attractively low price. The important point to bear in mind; Does the property meet your criteria? Does it have positive cash flow? Remember this… Because a property is cheap does not mean it’s a good deal. In fact, if you buy a cheap property that has no value, it could be the most expensive property you can buy.

You can become wealthy investing in real estate. All you need is a goal to succeed, a determination to persist until you succeed. You can accelerate your path to wealth, when you follow my tips

Posted in Investment | Tagged | Comments Off on 7 Tips to Invest In Real Estate and Become Wealthy

Tips to Save on Your Auto Insurance Today

Posted on March 26, 2023 by schatzi

Having auto insurance is definitely a good thing. Perhaps you yourself will agree that your car or vehicle is one of your most valuable assets and investments. Thus, it is just right that you find ways by which you can protect your car or vehicle. And one of the most popular ways is getting auto insurance.

But as you may know, auto insurances can really be costly. However, if you have the right strategies and tactics coupled with patience and resourcefulness, you will surely be able to save on your auto insurance today. For starters, here are some of the options that will help you get some savings on this type of insurance.

For one, it is best if you do your research and shop ahead. Know as much as you can before you close a deal. It is not enough that you have heard about auto insurance and you need to get it. You also need to understand even the basics of auto insurance, the plans, policies and purposes for which you need them. This way, you will better be guided as to what type of insurance will be best for you.

As a matter of fact, getting sufficient knowledge in this sense will save you money since you will only spend for the necessities. Since you are already knowledgeable, you will already know what to look for and not unnecessarily be lured into buying expensive insurance policies that you do not need after all. So in essence, you will get the best value for your money and save a significant amount of money in the process.

In terms of shopping ahead, that essentially means that you should find out more about the auto insurance policies and rates from various companies. As a matter of fact, you should go into the details and compare rates. You can just go to the website of the auto insurance companies and get information there. You can even send them a message to ask for free quotes.

Actually it is best to contact the companies directly so you can ask about factors other than the quotes. But of course, you have to find out which company gives the lowest and best rates for a specific type of auto insurance.

Then aside from getting quotes, it is equally important as well for you to get the details as to the policies and plans available. Get into the details. You can even set a meeting. Or if that is not possible, find out everything you need to find out through phone calls and the internet.

Another great way by which you can save on your auto insurance is through pursuing your discounts. As you may already know, insurance companies also offer various discounts. But one thing you may not know is the fact that the discounts are not applied on an automatic basis. Thus, you have to talk to your insurance company about this every once in a while to remind them. Then, in turn, you will be able to enjoy more savings.

Finally, if you do not want to go through all the tips mentioned above, you can always hire someone to do the job for you. And that essentially means that you can get an insurance agent. He or she will be the one to look for ways by which you can save on your auto insurance today.

You just have to make sure that you get a competitive and diligent insurance agent from a well known and well established company. This way, you can be assured that you will get the best services. You can have peace of mind that your insurance agent is an expert in the field and he or she knows what he or she is doing.

In the same manner, getting an insurance agent from a well established company has an advantage of having a wide range of connections. And that will always work to your advantage when you want to save on your auto insurance today.

Posted in Insurance | Tagged | Comments Off on Tips to Save on Your Auto Insurance Today

What Is a Special Finance Auto Loan?

Posted on March 25, 2023 by schatzi

Perhaps you have seen the term ‘special finance auto loan’ online when you were shopping around for car loans. If you are not familiar with the term, what it means is that auto loans are available to people with poor or bad credit. The most recent statistics tell us that sixty percent of all consumers have less than perfect credit. These consumers are not typically allowed to borrow money from traditional banks because banks check credit ratings and flatly refuse to loan people with bad credit money. People with bad credit are considered to be ‘special’ cases, so hence the term special finance auto loan was contrived.

Special loans for auto finance are widely available today. As the economy has taken another turn for the worse, more and more people are struggling financially. Many people are falling behind on their bills and cannot pay off their credit balances on time. This leads to the fall in their credit rating, making it impossible to buy a new car, as traditional banks refuse to lend them money. However, thanks to the special finance auto loan the typical consumer who is having money troubles can drive the car of their dreams, as many lenders have emerged over the past couple of years offering to lend money to ‘high-risk’ individuals.

While a special finance auto loan may be convenient, it does has its pitfalls. The interest rates for this type of auto loan can range anywhere from 5 to 26% which is quite high and higher than what is charged by traditional banks. Another negative aspect associated with the typical special finance auto loan is the fact that the down payment required for this type of loan can range from 20 to 50%, which is also high.

Another thing that happens with the typical special finance auto loan is the fact some car dealers will inflate the prices of the cars they offer under this type of financing. This type of dishonest dealer will take a car worth $5000 and jack the price of it up to $10,000. The dealer will then require a down payment of 20% and finance the balance at 25%. The unfortunate buyer (who is often quite desperate) will then be tied into a contract with a very high interest rate on a car that is only worth half of what they paid. Plus, quite often this buyer will default on the loan which will ruin their credit even more. If the buyer is able to make the payments on the special finance auto loan they will have paid double the amount of what they would have had to pay for the same car purchased from an honest dealer at a fair price.

For the consumer with very poor credit, a special finance auto loan can seem like a God-send. A person will be able to borrow the money they need to buy a car. However, they will be paying a high rate of interest and will also have to pay a large down payment. The lenders offering this type of loan are making a whole lot of money, lending money to people with poor and bad credit, and they seem to be appearing out of nowhere as more and more websites are being added to the Internet daily.

Posted in Finance | Tagged | Comments Off on What Is a Special Finance Auto Loan?

Business Venture Capital

Posted on March 24, 2023 by schatzi

Business Loans Buyer’s Guide Introduction to commercial lending Reasons to take out a business loan Types of business loans What are your chances. Business loans are commonly used by business owners to access cash needed for business start up, growth or improvement. Standard business loans can take on several different forms in specific situations: Introduction to commercial lending Reasons to take out a business loan Types of business loans What are your chances. Lines of credit are more general business loans that are often set up to insure against cash flow problems.

Business

Your business might be a good candidate for factoring if you have: Fewer than three years in business Good growth prospects but less than stellar cash flow Active accounts but slow paying customers Find a factoring company in your area now. The business products and services we offer make it simple for you to handle vendor costs, pay bills, meet payroll and earn competitive rates on your cash. Banks are a common source of business loans, but they are often more conservative in their lending decisions. Regular Loans Between $20, 000 to $5 million is made available to small business operators many of whom would not normally be able to access loans from the regular financial institutions.

Bank

Banks are a common source of business loans, but they are often more conservative in their lending decisions. We need a banker that understands the world market, can review our summary, and agree in principle to fund the project with collateral that is acceptable to the bank. That will review the loan request, after determining that it is a viable / sound business situation, state in a “Comfort / Commitment Letter”, that they will fund my acquisition, because I do in fact have “access to”, a performing collateral provider, who can, upon receipt of this “Comfort / Commitment Letter”, structure a funding transaction, whereby the lending / funding source: ‘Will’ (first) receive a top 25 rated world bank’s *Bank Guarantee* (BG) for 100% principal and 8% interest, this to be authenicated, validated, certified, before lender / funder releases / transfers the 100% of the loan requested to the borrower’s (my) bank coordinates. So with the use of the Structured Note, the lending bank is fully secured as to the repayment of its principal and the receipt of its interest, without any lien on the project.

Capital

fund a startup business finance a business acquisition provide working capital for a business that can be used to purchase necessary machinery,. Your options for planning and presentation are many and various, ranging from seeking investment from venture capitalists (involving a high degree of planning and presentation) to self-certification (requiring very little financial information). Community Venture Capital Program Stimulate investment to promote regional economic diversification New Media Venture Capital ProgramStimulate investment in “new media” businesses Venture Capital Corporation Portfolioinvesting Administration and forms Eligible Business Corporation Direct investmentapproachAdministration and forms Q&AFrequentlyasked questions and answers StreamliningInformationabout exciting changes to the program processes Tax Credit Budget UpdatesCheck the status of each tax credit budget March 23, 2007. Each Venture Capital Corporations assessment of the market for their shares as indicated in their Request for Additional Equity Capital will serve as the basis for issuing equity allocations this year. Venture Capital Corporations rely on professional advice as part of their due diligence process to determine if they can invest in a small business. Venture Capital Corporations are able to invest in any small business that meets the requirements of the Small Business Venture Capital Act eligible Small Business Rulings are not required for a VCC to consider a business for investment.

Standard business loans can take on several different forms in specific situations: Introduction to commercial lending Reasons to take out a business loan Types of business loans What are your chances. While there are stringent federal guidelines about how banks and other lenders conduct business, there are no definitive standards as to how the various types of business loans are structured: terms and conditions may vary from one lender to the next, and minimum and maximum amounts can differ. As always, you are required to keep records related to your investments and compliance with the Small Business Venture Capital Act. Private investors or angels are a great source of startup business capital to help your new business reach success. Instead of moving in and taking over, Business Capital works with you to leverage what you have, assess what you need, and leave your business stronger — not weaker — when we’re finished.

Posted in Business | Tagged | Comments Off on Business Venture Capital