Posts Tagged ‘finance and investment’

Real Estate Investing Takes The Right Mindset

Friday, September 16th, 2011

It’s true that nearly everyone dreams of becoming fabulously wealthy at some point in their lives. Why is it then, that hardly anyone actually goes out and makes their fortune? The difference between those who become rich and those who do not is that the rich learn how money is made, and how they can make money work for them.

This may sound like an intimidatingly difficult undertaking, but it really isn’t as hard as it sounds. With all of the literature and educational materials on the market for budding real estate investors, there’s no reason you shouldn’t be able to learn the ropes, provided that you put in the necessary hours of study. In fact, simply reading this article is a great start to the learning process that will ultimately transform you into a successful investor.

As you come closer to your goal of becoming rich, you will realize that they key to success isn’t really mastery of the minutiae of accounting and all of the other details involved in the process. You can always find others more knowledgeable than you on these subjects. In reality, the trick is to look at money from the perspective of a rich person.

It may sound overly simple, but how are you ever going to become a successful investor if you still have the thought process of a salaried employee?

This may seem quite simple (and it is!), but the investor perspective sets the stage for you to become rich. From the employee’s perspective, one must do exactly what the boss instructs, and work within the established system to earn their livelihoods. Those with this mindset always manage to get by, but if you want to do more than just get by you must obviously take a different approach.

If your goal is to make your own fortune, you must first teach yourself to adopt the mindset of those who control the money. You’ve got to be smart and assertive, and rather than working for your money, you have to make your money work for you.

Now, who are the people who work like that, who actually control the flow of money in our economy? You might be tempted to say “corporations,” and you would be right to an extent. But corporations are not people: They are financial entities. Think about the people behind the entities and you are on the right track.

That’s right- the businesspeople. But they are only near the top of the food chain. If you go to the very top, what you find is…investors.

Investors are at the top of the food chain because they know how to make their money work for them, instead of slaving for their money. And they are laughing all the way to the bank because they know what a simple concept it is. They know that anyone could do it. And they know that most people won’t because they are stuck thinking like employees. The sad thing for most people is that they will never break that habit. You don’t have to be one of them.

Want to become rich? Start investing! That’s all there is to it. One great way to get into investing is through real estate. This is due to the fact the investments in property tend to be quite stable, so you shouldn’t have much trouble getting a loan to start investing in it.

That’s the long and short of what you will learn if you read every book available to you on how to start thinking rich and stop thinking secure. They will tell you how easy it is. They will tell you to change your thinking. And they will tell you to let the experts deal with the details.

About the Author: Alexandria Page Anderson is a accredited Minnesota real estate expert that uses the Minnesota MLS to aid her visitors to find and buy MN real estate.

Silver Speculators Are Taken To The Cleaners

Friday, May 20th, 2011

No one will argue the fact that commodities can be risky. By far the wildest commodity ride has been silver. Speculation is based on a perception of reality. As the U.S. economy groans under its huge debt load and Washington keeps carelessly pushing treasury bonds to expand the money supply, it is understandable that gold would be seen as a valuable hedge against inflation, but silver is another story.

Silver value is not determined by investment alone, instead there is an industrial demand for silver. The issue is that as the global economies struggle under massive debt loads and lethargic production, the demand for silver can diminish and when that occurs the price falls. Up until recently the percentage price increase of silver had outpaced gold. Now many believe we are seeing the biggest shakedown in silver since the Hunt brothers tried to corner the market back in the 1970’s.

As an historical side note, Texan billionaire Bunker Hunt, build his huge fortune drilling for oil in Libya but increased his investment in the silver market after Muammar Gaddafi nationalized the Libyan oil wells in the early 1970’s. Bunker and his brother Herbert began to buildup a stockpile of silver taking the price from around $1.50 to $50.00 an ounce in 1979, when Comex shut the market down and changed the rules on them. The Hunt’s lost a fortune when silver collapsed to around $10.00 an ounce.

Fast-forward to May 2011 and we see that silver touched $50 an ounce only to drop back down to $32 and ounce. Some have suggested that it will continue to fall further, because even at its current price there is a lot of investment speculation. Silver has led the carnage in commodities.

Unlike stocks and bonds, commodities don’t carry a yield. No dividend, no coupon to clip. Commodities are driven by supply and both real and perceived demand. In the case of gold investors believe that the value of the dollar will fall as inflation ensues so they see gold as a hedge against inflation. Gold has virtually no industrial demand to push up its price. Silver on the other hand has industrial demand and when that demand is seen as falling the price of silver will too.

Jackie Gordon is an economist. Don’t speculate in Silver, instead use leverage to make money with Silver check out how at Numis Network. Find out how to buy silver with a price guarantee at Numis Network.

What Kind of Gold Can Be Purchased?

Friday, April 29th, 2011

Today many are thinking about purchasing gold as an investment. Gold is often praised as a secure and a way to protect against inflation. It is important to keep in mind that these claims are really just opinion and not fact. Market forces affect the value of gold, sometimes forcing the price up and sometimes driving the price down.

There are many different ways to purchase gold as an investment. Probably the most critical factor to consider before buying gold is your ability to sell your investment for a profit. At some point in time you will want to take your profit and or minimize your loss. Sometimes you just need to have the cash.

Probably the easiest way to purchase gold is in the form of jewelry. The problem there is no resale value. With jewelry there is no uniformity as to gold quality and content. Gold jewelry may have sentimental value but there is no real investment value.

Collectible gold coins readily available for purchase and there are plenty of buyers. The problem is that the value of a collectible coin is not base on its gold content, but rather on its condition and rarity. Most investors do not have the level of knowledge needed to make any collectible a sensible investment.

Gold bullion bars are available for purchase. They are easy to purchase and they are standardized as to quality and gold content. The concern is tampering. At the time of sale most buyers will want to verify the gold content of the bar. This adds both time cost to the sale. The seller will almost always pay the cost of examining the bar.

Gold bullion coins are probably the most common form of gold purchased for investment today. There is no numismatic value attached to these coins. These coins are standardized and are easy to sell. Gold bullion coins make the best since for a physical gold investment.

Rather then purchase physical gold, an investor could purchase stock in a gold company. Stocks are easy to purchase and easy to sell. The value of a physical gold investment is impacted by a change in the spot price of gold, however there are a number of other factors that can impact a company stock price.

There are a lot of different ways to purchase gold. Some are practical investments and some are not really investments at all. If you purchase gold for investment remember there is no guarantee that it will appreciate.

Bruce Holmes is a small business advisor. Learn to generate cash flow with silver and gold check out Numis Network. For an alternative way to make money with silver and gold look into Numis Network.

Is The Future Demand For Silver On The Rise?

Thursday, April 28th, 2011

Silver has many unique properties that in most cases are irreplaceable by cheaper alternatives. Traditional uses for silver have been jewelry, photovoltaic and silverware. Today silver is used in a wide range of applications such as electronics and photovoltaic solar cells, and as an antibacterial agent that will almost guarantee that the demand for silver in these expanding markets will grow. A case in point is the photovoltaic industry where it has been reported that silver use went from 3Moz in 2004 to about 50Moz in 2010.

There has been an incredible growth in the use of silver in recognized applications such as electronic connectors. Consider the example of automotive electronic connectors. The increase use in this area is not just tied to automotive demand, but rather the expansion of features such as navigation systems and electric seats. Such features were once limited to luxury vehicles but are now available in less expensive vehicles.

Silver is also needed in so many electrical devices, such as superconductor, super-capacitors, solid-state lighting, and batteries. You can add to this the growing Nano technology that will make electrical components smaller and more efficient. This should increase the level of demand for these high tech products.

Then there is the burgeoning demand for silver as an antimicrobial agent in the medical community, water purification and wood preservation industries. Silver is also widely utilized in the manufacturing of solvents, plastics, and disinfectants. It is also used in solar panels that have grown in popularity over the last decade. However, it is significant to note that silver is only used in the “thick film” panels and not in the competing design of “thin film” panels, which do not use silver.

Silver has experienced a huge price increase in the last 12 months. This increase should not be totally attributed to industrial demand. As a result of the global economic downturn there has been a greater demand for precious metals by investors looking for a defense against inflation. The price of gold has also spiked to the point that it is becoming out of reach of small investors. Alternatively silver is at price point that is more accessible for smaller investors. A global economic up-turn could drive investors out of metals and into other equities, but this reduction in investor demand could be offset by an up tick in industrial uses.

Bruce Holmes is an online marketing coach. Learn how to create a cash flow with silver at Numis Network. Learn to create real wealth and cash flow with silver join Numis Network.

Precious Metals As Part of Your IRA

Tuesday, April 26th, 2011

There are more and more people that are now including silver and gold as part of their retirement preparations. The U.S. government provides for the inclusion of precious metals in your Individual Retirement Account (IRA). It is significant to note that only certain types of coins can be held as part of your IRA and these requirements are subject to change so always consult with your investment advisor.

Currently the U.S. government allows certain bullion and proof coins, such as the ever-popular gold and silver American Eagles to be held in IRA. Once you have made the decision to have precious metals as part of your IRA you will have to designate an IRA custodian. When you are ready to take distributions from you IRA you can decide to convert the coins to cash or take delivery of the coins you own. This allows you to take advantage of suitable market conditions before you decide to sell.

Proof coins go through a particular minting process that uses select dies. Coin blanks are fed manually into the presses where they are struck multiple times to ensure softly frosted, detailed coin images raised above a mirror like background. Mint inspectors review each coin before deeming it a proof and placing it in a protective plastic case. Proof American Eagles come in a satin-lined velvet presentation case with an official U.S. Mint Certificates of Authenticity.

Proof coins generally have a limited mintage and their prices are based on a multitude of factors, such as: mintage, rarity, condition, age, the current price of the particular metal, and demand. The U.S. government issues a limited number of proof coins each year and in certain years the coins have sold out quickly. Proof coins are considered to have numismatic value, which means they are worth more then their metal content. So a proof coin will sell for more then a bullion coin.

Bullion coins are common coins with no numismatic value. The value of bullion coin fluctuates with the spot price of gold or silver at any given time. This is because there is zero numismatic value to these coins. Remember like any other physical asset there is a cost to selling any type of coin regardless of quality. Always talk to knowledgeable investment advisor.

Bruce Holmes is a small business advisor. Plan for your retirement with Numis Network. Check out the only coin seller that guarantees the value of its coins Numis Network.

How To Deal With Bad Credit Reports As A Real Estate Investor

Wednesday, April 20th, 2011

Creditors and bankers approve or disapprove loans based on your credit worthiness. In some cases it also will determine your credibility to certain employers or landlords.

A good credit rating allows you to be able to apply for loans and/or credit cards easily. It will also mean that you will have more chances of getting certain jobs that may require a background check. You will be able to pay your bills on time.

Having bad credit can reduce the opportunities of things. You may get approved for a loan or for a credit card but with a higher interest rate. You are considered a “at risk” customer because the creditors are not sure if you will pay your bills. If you are trying to apply for an apartment complex the landlords may take a look at your credit score to determine if you will be able to pay your rent. Not to mention that most look at the report and will use it to form an opinion about you character.

These are just some of the many reasons as to why having a good credit score is very important in today’s world. However, what do you do if you happen to have a bad credit score? If you have bad credit it is important to address this problem as soon as you can. Here are few ways to do just that.

First, you must stop your bad credit before it gets worse. So how do you do this? You pay your previous overdue debts as soon as possible.

Secondly, you can raise your credit score by opening a new savings or checking account. You should also apply for a secured credit card. This secured card will have a lower limit and a higher interest rate however,by paying the monthly credit card bills on time you will be able to see a significant rise in your credit history report.

If you continue to follow these steps you will eventually start to see a good credit rating. However, your past credit history will contain bad credit scores and ratings. This does not expire for 5 to 7 years. You must remember that it does take time to raise your credit rating. You must be patient and diligent to see a change.

That is why it is very important to make positive reports for your creditors. They then will pass those on to credit reporting agencies. Remember to pay your loans and credit cards on time in order to get a good credit rating. By doing so you will eventually end up with a good credit score and history. Never miss out on a future financial opportunity when they come your way.

Doc Schmyz has done real estate deals all over the US and Mexico. He built a free free website shares Real estate investing information for all over the US. Find real estate information by state

Foreclosed Homes…How To Find The Deals

Thursday, March 11th, 2010

During a down real estate market, finding foreclosed homes can be easy but you can also find foreclosures in a strong market. To make your search easier, here is a list of the places where you can start your search for foreclosures.

Auction Houses

Many of the auction companies hold a large inventory of properties. Since the bidding is relatively quick and houses can be sold in a matter of seconds, prices of real estate can go over market value but you can also find really good properties in their inventory.

Web Sites Of Major Banks

Major banks maintain a good list of foreclosed properties. Some maybe listed on the homepage of the company website. Visit bank web sites and check out the foreclosed properties listing, or look for linking to the company REO (Real Estate Owned) department. Sometimes you will have to do some digging…but you can find information that will lead you in the direction your looking.

Online foreclosure companies

There are several online companies that specialize in listing foreclosure real estate. Some charge a one-time membership fee to anyone who wishes to access the list of foreclosed properties. The good thing about signing up on web-based foreclosure companies is that once you are in, you can get a wide selection of foreclosure properties available nationwide. More often then not, you can opt in for a email update on real estate in areas your looking at.

Real estate agents

Due to the internet, most agents are either maintaining personal web sites or are under real estate companies that sell foreclosed properties. Major cities have real estate offices where you can inquire into possibility of acquiring foreclosures. A lot of agents are dealing with large volumes of foreclosed real estate these days. Seek out and ask for a agent who has a track record of dealing with both foreclosure and short sale real estate.

Real Estate “Bandit” And Listing Signs

You don’t need to look anywhere else because you can find foreclosure signs around your neighborhood. Homes with signs like foreclosure, bank repo, and bank-owned are for you to consider. These signs contain address and contact information of the agents you can visit or call. The best thing about considering homes with real estate signs is that you can actually check the condition of the house on-site. And with one phone call, you can arrange with the agent the date when you want to see the interior of the house.

Government Agencies

Fannie Mae foreclosure homes, Housing Urban Development, Small Business Association, Department of the Treasury and other government agencies have a list of real estate properties for sale. Usually, when buying a house from these agencies, you are required to acquire the services of a real estate broker or personally submit an offer. Go to any of the government agencies web sites for more information.

Doc Schmyz has worked with investors all over the US and Canada. His free website shares Real estate investing information for all over the US. Find real estate information by state

First Time Home Buyer’s Guide to Working with Seller’s Agents

Friday, December 11th, 2009

A home purchasing deal will more than likely involve a seller’s agent. First time homebuyers should realize that a seller’s agent, or a sub-agent, should have the seller’s best interest in mind when doing transactions. In other words, a sub-agent is hired by the seller to forge a deal with a buyer.

Real estate regulations vary across different states but there are federal laws that define common responsibilities, and limitations, of a seller’s agent. Ilyce Glink, Author of ‘100 Questions Every Home Buyer Should Ask’, advises home buyers to know the exact terms of service of an agent by reading the agency disclosure form. Clarify what each provisions mean with the agent; but if you really cannot understand the wordings, it is best not to sign the form. Below are the key obligations of a seller’s agent:

The seller’s agent can provide you with detailed pricing lists of comparable homes in the area. These are often called ‘comps’ and are a compilation of similar homes in the neighborhood, listing information and their list prices. This information ensures that you are not offering, or being offered, an unreasonable price when it’s time to negotiate.

The seller’s agent cannot tell you which home to choose when you are still deciding. Even though it’s the seller’s agent’s job to sell you the home they are commissioned to sell, they do not have a right to ‘push’ their home over another in question. If you like two homes and the broker is working with both sellers, they cannot persuade you to purchase one over the other; the decision is ultimately yours to make.

A seller’s agent cannot reveal the flaws of the home, except for imperceptible material imperfections. They are not allowed to disclose information that can influence you not to buy a property. Homebuyers must conduct their own inspection to assess the condition of a home.

The seller’s agent cannot make suggestions on the best offer for the home. It may be tempting to ask the seller what price you should pay for the property, but they cannot legally offer this information at any time during your communications. The seller broker has certain obligations to the seller, so this information may impede on that relationship.

A seller’s agent has the right to ask you for referrals. Most sellers’ agents run their own businesses and are likely to ask you for referrals. It is up to you to decide if a seller’s agent is worth referring to your fiends and relatives.

The job of a seller’s agent is to make the buying and selling process as smooth as possible. As a buyer, you have to remember that seller’s agents are working for the seller. Therefore, it is still important for you to do your own research and work with a professional buyer’s agent.

Alexandria P. Anderson is a licensed MN Realtor that helps people to find and purchase Minnesota Condos as well as Condos for sale in Minnesota.

Homebuying Basics - Negotiating The Best Price For Your Home

Wednesday, October 21st, 2009

After you’ve spent enough time doing all of the research about your prospective home and are comfortable with working with the seller, it’s time to make the offer. However, the home buying offer isn’t the end of the sales process; you may be involved with negotiating a price after making the offer if the seller refuses to accept it, so you’ll need a plan to get the price you want - or close to it - well before you extend your initial offer.

Knowledge of the contract and devising a contingency plan are just some ways to ensure you get your dream home within your budget. Barron’s ‘Consumer’s Guide to Home Buying’ advises homebuyers to make a checklist of things to consider even before entering the negotiation process. Below are some of the things you need to pay attention to when negotiating:

1. Knowing who are involved in the decision making process. Sellers usually employ the services of agents, lawyers, accountants and other third parties to transact with buyers. Knowing whom you’ll be dealing with beforehand will help you devise a specific method for negotiating.

2. Develop a contingency plan. It’s possible for the seller to refuse all your offers. While it is frustrating, some negotiations are never meant to produce a deal. Specify what you are willing to give for the house and don’t go beyond it just to come into an agreement. You have to look at other prospective homes if the seller wants you to pay more than you’re willing to give.

3. Have you looked over all of the details of the contract? It’s important to fully understand all of the terms of the contract so you’re not left with any surprises at closing. Take the time to review the contract in as much detail as possible and note down any questions you have. Set up a meeting with the seller to go over anything that doesn’t seem clear to you so you don’t have any reservations about signing if you do get an accepted offer.

4. Develop a relationship with your realtor. Realtors have the experience to give you professional advice about your prospective home. Spend the time to develop a positive working relationship with them. Voice out your concerns to your realtor well ahead of the negotiation process to give your realtor time to help you in making an informed decision.

5.Are you ready to handle setbacks? Poor communication skills from the seller’s agent, hostility from the seller and other negative communications that occur during the buying and selling process can make it difficult to negotiate fairly. You need to keep your cool and make sure that you are ready to stop the deal if you don’t feel like it’s going down the right path.

About the Author: Alexandria P. Anderson is an Saint Louis Park real estate agent that helps people to find and purchase Saint Louis Park Homes and properties in the Twin Cities of Minnesota.

Home Inspection Basics As A First Time Homebuyer

Saturday, October 3rd, 2009

You want to avoid any major surprises when you’re considering a new home purchase so contracting with a professional home inspector can alleviate much of the stress and concerns about your prospective home early in the home buying process.

However, you aren’t required to conduct an official home inspection until after signing the initial contract, so it’s a good idea to learn as much as possible about the condition of the home by having an honest discussion with the seller, and even performing your own ‘mini’ inspection where you can check for basic structural defects or potential problems.

Sellers usually allow prospective buyers to check the condition of the property before any contracts are signed. This can give the buyer some bargaining advantage during negotiation since the buyer is already aware of any damages the property has acquired through time. ‘The Smart Consumer’s Guide to Home Buying’ advocates the use of checklists and taking a note of all known issues regarding the property. The book further explains that conducting an informal inspection is very beneficial to homebuyers, especially those who are considering buying a house that needs renovation.

Create a checklist that you will use in your home inspection. This will help you in taking notes of the general condition and appearance of the house. Below are important issues to include in your notes:

Know the age of the house - Know the exact date when the house was built. You must also check if there are any renovations or upgrades done on the home, when they took place and if the house’s blueprints are still available.

Check the foundation for potential problems - are there any large cracks or noticeable water problems around the home or in the basement? Ask about flooding issues and weather-related problems that have taken their toll on the home in different seasons.

Examine the interior of the house - Keep an eye for any defects and other potential sources of problems in the interior of the house. Specifically, you need to check if all walls are even with no cracks and if all doors are easily opened and closed. Take a picture of any visible crack, if possible. Check if there are any molds, foul odors and if all water drainages and faucets are working properly.

Examine the exterior of the house - Again, look for any obvious defects and potential problems. First, check if all doors and windows open and close easily. You might also want to check if they are properly insulated. Take note of the sidings and see noticeable signs of wear and tear.

Inspect the house’s heating and air conditioning systems - You want to know the average electricity cost per month when operating these appliances. Ask about the age of these appliances as well. Old heating and air conditioning systems are usually inefficient and you may need to replace them.

Take all the information you gathered and create a written inspection report. You may also use a digital camera or camcorder to take pictures or video clips that you can review later. Video clips and pictures will allow you to document your inspection in more detail. These visual documents may also give you additional negotiation leverage.

About the Author: