Where Is Your Horse – In Front of Or Behind the Cart?
Where Is Your Horse – In Front of Or Behind the Cart?
Real Estate syndication is by far the most profitable aspect of the real estate industry. The reason is that it encompasses all the other areas including brokerage, lending, ownership, management and more. Each month, I host two Q&A teleconferences to help experienced people in the real estate business attain success in syndication. And with every call, I find there are two groups of people. There are those who are properly organized and ready to get started on the right path to real estate syndication. And then there are those who are having trouble getting out of their own way.
The folks who are not succeeding are the ones whose first question is “where do I find a good deal?” Early stage syndicators think they need to find a great deal, then raise capital, and they will be on their way toward success and profit. I usually counter that with some tough love and a reality check. Instead of looking for deals, a prudent syndicator needs to put the horse in front of the deal, and start with the question of how to raise capital.
Believe it or not, a bag of money is not going to drop out of the sky as soon as you find a good deal. It’s not going to happen. There are lots of good deals out there that most people can’t put together. That thinking is like putting the cart before the horse. Somebody is getting the deals done, but it’s the people who have lined up the money in advance — or it’s the ones who know where the money is and how to get it when the deal is ready.
Doing a syndication is not a one-time deal. It is a business. And with any smart business plan, the key to success is to have a plan — and that means having the capital on hand first. So on my last Q&A teleconference, I turned the tables and asked participants two tough questions in advance of the call. The first question was “How much money could you raise for a good real estate syndication project right now?”
On one end of the scale, 16% responded “I don’t know,” “it depends,” or “not enough.” On the other end of the scale one confident participant said “unlimited!” Enthusiasm is great, but it may not be bankable.
The bulk of the answers I received were fairly typical. The largest percentage, one-fifth of the participants, said they could raise $500K right now. Close behind were those who said $1-3M. The remainder was spread between $4-6M and $250-$600K.
In my experience, what you think you can raise and what you can actually raise are not the same. First, it takes time to raise money. Next, the deal has to be right. Not only the real estate deal, but how you structure the profit sharing has to work for both the investor and for the syndicator. Frequently, early stage syndicators have trouble figuring out how to create a deal that investors want to say “yes” to, and at the same time, promote a deal that works for them.
Keep your eyes open to these issues. There is a lot of money to be made. But if the horse is not positioned properly, no one will move and the deal won’t get done. There are a lot of horses in the barn that never have the opportunity to see the light of day. And one more thought: the way that investors think about investing in deals is a lot like how gamblers operate at the horse racing track too.…
The Things to Know in Stock Trading
The Things to Know in Stock Trading
Many people make tremendous progress and money by trading in stocks. Penny stocks neither are generally nor regarded as the suitable means and the traders don’t adopt it most of the times. This thing is well recognized and various reasons support this notion.
1. Profit percentage on daily basis: This idea is a greater one to make a right move towards the establishment of consistent daily gains in trading. The traders are well familiar with this tip and sell only when the profits are on the top. This makes them gather extra profit out of their products easily.
2. Quick and easy gains: Stock trading makes it possible to grow quickly and you will notice that you will get immediate gains in a shorter period of time.
Stock trading is a charm to make huge money in the smaller time and there is no long time wait to get the desires completed. Once you have made your luck by the intelligence of investing in the right trade, you can further devote it to earn more.
3. Small investment: You can start your own trading right now by a very small investment. The reason behind this fact is that have a very low prices.
The one time investment can make you earn fast gains. You don’t need to invest time and as again.
4. A smarter way to trade: The stock trade is very quick and the buying and selling period is usually very short. Hence, no market research is required.
5. Online trading: You can have an inter net connection to monitor all your trading and the entire stock market. You can look over the internet some interesting information regarding trading. The real time monitoring develops your skills and guides you to make the right decisions. Online marketing also saves a lot time and you can do other activities along with stock trading on propriety basis.…
Investing in Real Estate As a Business
Investing in Real Estate As a Business
Investing in the real estate business is one of the most complex, yet most rewarding business activities in the entire face of money-generating business groups in the world. The fact is, investing in real estate is a popular investment vehicle, particularly for the middle-upper class. More and more people who have started doing this activity said that they found it very rewarding even though running a rental property or fixing up a house requires a lot of work.
Investing in real estate is one of the most important financial decisions you will make in life that’s why you have to really think if this is a career you want and if you can handle it, because the truth is investing in real estate can be learned, but learning how to invest is not an easy procedure. There are many things that go into buying a house. First thing, you have to figure out what type of real estate investment you want to make before you even start looking for a house.
I did research on where the most common places to find investment properties and here’s the list of common sources of investment properties. It includes real estate agents, foreclosure sales, MLS or Multiple Listing Service and private sales. Once you found your potential investment property, you must investigate and verify its overall condition. If you are satisfied with the results, talk to the seller about the property sale price and the sale terms. If you both agreed on these, you can now ask for a contract of sale. Remember, once you had handed out the payment, you may not be able to refund it and this is what we called the serious point for investors like you. You are lucky if you are still in the contingency period because you can obtain a refund of earnest money deposits, but if this period is over during the time that you want to refund, this will result penalties for you to pay so plan ahead.
There are two ways to make money out of your investment properties. First is to have it rented out. Renting out the property will give you monthly income and that rent pays can eventually pay off the mortgage and it will be “all profit”. The second way is by appreciating the property’s value. For example, the home you bought for 40,000 can be sold double its original price after few years.…
3 Hot Tips For Investing In Rental Properties
3 Hot Tips For Investing In Rental Properties
Choosing the right investment property, especially for a newbie investor, can sometimes seem to be a daunting task. But choosing the right investment property can also be a challenge for seasoned investors. There are three things I look for when choosing an investment property: long term growth potential, tenant “attractability”, and cost of ownership.
Long-Term Growth Potential
Most investors are taught that the cheaper the property, the better. This is only partially true. Your main focus for every long-term rental property should be appreciation, or the amount the property will increase over time. Appreciation is much more important than purchase price. The amount the property increases over time should be substantially more than any profits made from the buy. Because appreciation is much more important than purchase price, there are great potential investment properties in every market. So to sum this up in one short phrase, never buy an investment property without being confident that it will appreciate substantially.
Tenant “Attractability”
The type of home you purchase will attract a particular type of tenant. Upscale properties attract upscale tenants, and vice versa. It seems like common sense, but it is an absolute must when looking for the right investment property. You want to avoid properties that attract potential tenants who have financial distress or appear desperate. Invest in the properties that fit into your budget, but that also will attract the best possible tenants.
Cost of Ownership
There is ALWAYS a cost of ownership. As with anything you purchase, your property will endure wear and tear over time. The more upfront homework you do will have a great effect on just how much wear and tear your property endures. Choosing the right tenant, for example, will have an affect on wear and tear. The design of the interior of the house will also determine how much your cost of ownership will be affected. Tight, narrow layouts will suffer more damage than open layouts, for example. Tenants with children will typically cause more wear and tear to the property than those without. Also, flat paints needs more care than gloss or semi-gloss. Many things on the interior and exterior of a home have a predictable shelf-life. Do your homework and calculate these things upfront and it will save you tenfold on the back.
Understand that long term growth potential, cost of ownership, and tenant “attractability” will greatly affect the success of your rental portfolio. These three factors should be considered carefully before investing in any real estate property.…
Investment Bonds – An Important Option to Any Investor Today
Investment Bonds – An Important Option to Any Investor Today
If every story comes with a moral, the story of how we have invested our funds over the past 10 years has this one lesson to teach us: that you can’t just put all your money in stocks alone. This wasn’t the way things always worked. The general understanding not long ago was that if you bought stocks and held onto them for long enough, over the long run, they would actually perform far better than bonds ever did. And they did that with no more than the same amount of risk that bands came with. Financial advisors told their clients to only choose investment bonds if they needed somewhere safe to park their funds for a short period of time. Over the long run, the always felt that stocks won out.
As we all know though, stocks have managed to do particularly poorly over the last two years the of the last decade. It was so bad, the 2000’s compare with one or two of the worst investment decades since the great depression. In a time when the US economy is somewhat troubled, putting all your money in stocks is easily too risky a gamble to take. Anyone who invests for a reasonable period of time needs to consider buying fixed income securities as the kind of stabilizer for their portfolio.
Of course, when chosen as an investment, bonds call for some kind of scaling back of any ambition. Still, it doesn’t have to be as bad as it appears. Studies that compare portfolios devoted to treasury bonds to portfolios that are divided equally between investment bonds and shares find that the one with the bonds only earn about 2% less a year. This isn’t that much of a hit to take for all the security they bring you.
There’s just one problem in all this, of course; investment bonds may be a safe is a place to park your money. But when there is little risk involved in an investment, the interest paid is usually quite paltry. Add to that the fact that there are millions of investors around the country who are anxious to place their money in sound debt, and you begin to see why the government has no interest in raising the rates of return on investment bonds. If you’re wondering what sound debt is, consider what bonds really are – they are loans you make to the government in return for an IOU. You are selling debt to the government; since the US government is the most reliable borrower on earth, with vast funds to back any IOU up with, any debt made out to the US government is considered really sound. And that is so even if the US has borrowed staggering sums of recent. U.S. Treasury bonds pay 0.2% on bonds that you are allowed to cash in six months. Those are pretty low rates.
Investors do have a problem with how paltry their returns are with government investment bonds. But they are willing to take that if the alternative they have is in regular stocks that can tank like they did three years ago. If you wish to experiment with other kinds of investment bonds, make sure that you don’t choose anything to do with mortgages – like Freddie Mac and Fannie Mae. The housing crisis is still about and dealing in corporations that are affected can’t be a smart investment move.…
Why Should Dubai Marina Be Your First Choice for Investing in Dubai Real Estate?
Why Should Dubai Marina Be Your First Choice for Investing in Dubai Real Estate?
It is needless to discuss the current performance level of Dubai properties sector as everyone knows that it has not been at its best. According to current statistics, regional tourist activity has increased and it is a fact that not a single trip to Dubai is complete without visiting or staying in Dubai Marina. Due to a number of reasons, this community holds a great appeal for both investors and tenants. Dubai Marina to Dubai is what Venice to Italy – undoubtedly, a premium choice of living. Let’s review what other reasons make this the ultimate living choice for investors and tenants.
DubaiMarina is all about premium location and chic lifestyle
With its upmarket and modish communal lifestyle, nestled among high-rise buildings located along Persian Gulf, Dubai Marina is the most desirable community in Dubai. A large number of shopping avenues, a variety of al fresco dining options and a plethora of entertainment options entice buyers and tenants alike to spend more and more time there. The community was developed with a vision to create an awe inspiring city within city that offers the most urbane, modern and invigorating lifestyle. This all has been successfully achieved by finely diffusing high quality, infrastructure and the best location in Dubai to make Dubai Marina properties the ultimate choice for tourists, tenants and local residents.
DubaiMarina infrastructure
Dubai Marina’s broad and comprehensive infrastructure sets itself above and apart from all the high end communities in Dubai and other high end communities of Abu Dhabi or Ajman real estate. It is the world’s largest man made marina having extensive transport facilities including metro station, tram network and water transport station. Other than this, it offers a plethora of dining options, retail outlets, yacht club and its very own shopping mall – Dubai Marina Shopping Mall. The famous ‘Marina Walk’ is also located within it. One of the greatest advantages of living in any community style development in it is that inhabitants can find everything at a walking distance, be it a salon, grocery shop, laundry service, beach club or your favourite restaurant. Living in it is certainly a privilege. Most of the residential developments in this come with a number of facilities such as gyms, swimming pools and recreation decks. The quality may slightly vary from building to building.
Stable and secure investment
Investing in Dubai is always profitable as compared to investing in Abu Dhabi or Ajman real estate. Previous figures and earlier stats indicate that investment in it is one of the most stable and the securest form of investment in Dubai real estate sector. Even when the property market was slow, properties in Dubai Marina were selling like hot cakes. It won’t be wrong to say that it is once in a lifetime opportunity to buy properties in Dubai Marina and sell it at higher price when market will go up or enjoy steady return in form of rental amount. During hard times, when landlords were unable to find serious landlords, the occupancy rate in Dubai Marina was noticeably high.
Along with these world class facilities, 24 hours high alert security is also provided to residents. These all and several other options make it, the first choice for investing in Dubai real estate.…
Avoiding Bad Investment Firms
Avoiding Bad Investment Firms
The sort of investment firm that you will want to avoid is the one that offers you lots of value. Value can be measured by how well your investment performs as well as how much it costs to obtain the investment. A lousy firm will offer you inferior investment vehicles and charge you an arm or an a leg to utilize them. Most of the problems with investment brokers arise when they pay their representatives commissions on the products they sell. Too many conflicts of interest arise and can make you get less than you would have at a more reputable firm.
Don’t be fooled by those that bill themselves as financial planners or financial consultants. It is likely the case that they work on commission and they are just trying to get you to invest as much as you can as many times as you can. This is because the more your investment is worth, and the more transactions you rack up, the more they earn in commission fees. They are in fact investment salespeople. They probably work for a large brokerage firm
All good investments can be bought on a no-load basis which means you don’t pay any commission fees. When you are working with a salesperson rather than a proper advisor there is no way you will get unbiased investment advice, unless they are trying to get fired or are your personal friend. A no-load mutual fund is a prime example of an investment that can be bought without paying a commission. Find an advisor that can recommend one of these to you and has no problem performing the transaction for you.
If you find that you’re unsure about any investment vehicle that is presented to you, and even if you are sure, you’ll want to request a copy of the prospectus. On one of the first pages it will list whether or not the investment involves any sort of commission that’s paid. It might be called a load. While the salesperson might be able to use a title and clever phrasing to disguise whether a fee is paid, the prospectus is required to have it stated simply and clearly.
The range of investment commissions varies widely. That’s why it’s hard to know who you can trust and who you can’t when it comes to investment advice. When you go to get advice from brokers, consultants, and financial planners you should have an idea of what they make. If you have $20,000 to invest and choose an annuity they’ll get around $1,400. If you choose to go with a load mutual fund they will get $1,200. This gives them a big incentive to put you into these sort of products and not charge by the hour.…
Real Estate Investing – Should You Become a Landlord?
Real Estate Investing – Should You Become a Landlord?
In investing there is an adage that says you can make either a fast nickel or a slow dime. Deciding to invest in long term rentals is the slow dime approach to real estate investing. Many investors are afraid of becoming a landlord because they have heard horror stories of calls at midnight from tenants to come and fix a leaky toilet. That is enough of a reason to convince people to not be a landlord. Here are some things you should consider before deciding if you want to be a landlord.
The first step is to make sure that you purchase your investment property at a decent price. A decent price is defined as a price that has a mortgage payment much less than what you can reasonably expect to receive in rent payments. If you monthly expenses are going to exceed your monthly income, you will not be a new landlord for long because you will be broke. You will also need to account for taxes and insurance each month when you calculate your expenses. If you are able to purchase a property at a decent price then you have a chance to be a successful landlord.
Getting a property at a decent price should be fairly easily for an investor who spends the time searching for properties. Once you have located a potential property, you need to ask yourself if you think you are cut out to be a landlord. A landlord is expected to be in contact with their tenants when they have maintenance requests and when you need to collect rent each month. This requires you to have very strong people skills and the willingness to go after a tenant when they owe you money. If you do not have the temperament to deal with tenants then you should consider a different line of business instead of becoming a landlord.
If you get to this point then you have found a good property and you know that you have the necessary people skills to deal with tenants. The last step is to determine whether or not you have the technical ability to handle repairs. Some people are great at fixing anything that breaks but others do not have this ability. If you are unable to handle the necessary repairs then you will have to pay a professional to do them. This can be expensive and you have to account for this as part of your monthly expenses.
Renting a property can be a very profitable business. Before you decide to invest in real estate, make sure you are cut out to be a landlord.…
Life Span of The Wooden Fence
Does a wood fence last a long time? Wooden Fences are the perfect way to keep your yard stylish and secure while protecting your privacy. Wooden fences are affordable. They are relatively cheap in comparison to other materials like metal. The installation process is typically easy and errors can be fixed quickly. However, the longevity of wooden fences is often the concern of home/landowners. What many persons do not know is that wooden fences are also durable. With proper care, the lifespan of wooden fences can be extended.
The question frequently asked when considering wooden fences is, does a wooden fence last a long time? The average wooden fence lasts for approximately 15 years. However, a wooden fence that is properly taken care of can last 20 years or more. Some fences may last significantly longer than others as the lifespan often depends on several different factors. Before opting for a wooden fence, climate and weather conditions should be considered. Wooden fences last longer in weather conditions that are not extreme. Too much exposure to UV rays, wind, rain, and cold, damp weather makes the fence more susceptible to damage.
Nevertheless, wooden fences are an excellent choice to beautify and protect your space. There are many different styles of fences to choose from. Whatever your choice may be, whether the extremely private board and board fence or the top-selling cedar privacy fence, fences can last a long time with adequate care. The initial setup might be costly but overtime wooden fences cost less because of their durability.
The longevity of wooden fences is dependent on the material used, how well it was installed and the care it receives. Taking care of a wooden fence involves giving it much attention.
A wooden fence that is neglected will deteriorate. The most important thing to consider is wood. Wooden fences being a cheaper option does not necessarily mean buying the cheapest material. Some materials are cheap for a reason. These tend not to be up to par. It is important to consider both quality and cost when purchasing wood, nails, screws, and other materials to complete the fencing. Another thing to avoid is installing the fence yourself if you are not experienced.
Many people opt to do home improvements themselves because it is more cost-effective. However, that might not be the best idea when it comes to wooden fences. It is best to have this work done by professionals to make sure it is properly done and capable of lasting longer. Pressure-treating fence posts is another important preparation method to ensure a long-lasting fence. Since fence posts are constantly in contact with the ground, they need to be pressure treated with chemicals to prevent damages from water and bugs.
Pressure-treating the wood protects it from termites and fungal decay. The other boards that are above ground do not need pressure treatment. It is also important to stain your fence. However, you should wait at least a year after installation to stain or paint. This is to ensure the chemicals used on the wood is all dried out so the paint or stain does not trap moisture in the wood. Invest in a good stain that can last 5-10 years to avoid having to redo it every year. Fences should be inspected yearly and all repairs on boards, nails, hinges, etc must be professionally done. Small damages can exacerbate if left unattended so make sure to keep up with repairs. Also, trim bushes or vines away as these add weight and attract moisture which can cause the fence to rot and break. Wooden fences should be cleaned and repainted or resealed every 3-5 years. So the answer to the question, does a wood fence last a long time is yes. A wooden fence that is well taken care of can last almost a lifetime.
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