You've no doubt seen them or read them. Glossy advertisements or four-color advances in publications and magazines promising to show you every one of the juicy details about successful real estate investing. And all you should do to learn each one of these real est investing surface encounters chuck russo secrets is to pay a rather high sum for a one-or two-day seminar.
Often these types of slick real estate investing seminars claim that you could make intelligent, profitable property investments with zero money straight down (with the exception of, of training course, the large fee you pay for the class). Now, how appealing is which? Make a make money from real est investments you created using no money. Possible? Not most likely.
Successful real estate investment requires cashflow. That's the nature of any type of business or perhaps investment, especially real-estate investing. You put your money into something that you wish and plan will make you more income.
Unfortunately too few newbies for the world of real-estate investing believe that it's any magical form of business in which standard business rules will not apply. Simply place, if you would like to stay in real estate investing for greater than, say, a day time or two, then you will have to create money to use and commit.
While it might be true that buying property with no money down is straightforward, anyone who is even made a fundamental owning a home (such as buying their very own home) understands there's a lot more involved in real estate investing that can cost you money. For instance, what regarding any required repairs?
So, the number one rule people new to real estate investing ought to remember would be to have obtainable cash reserves. Before you decide to actually carry out any property investing, save some money. Having just a little money inside the bank once you begin real estate investing surface encounters chuck russo can help you make more profitable real estate investments in rental properties, for example.
When real estate investing in rental properties, you'll want to be able to select simply qualified tenants. If you've no income when real estate investing inside rental qualities, you could be pressured experience a less qualified tenant because you need somebody to cover you money so that you can take attention of maintenance or attorney fees.
For almost any real property investing, meaning leasing properties or even properties you get to resell, having cash reserved can enable you to ask for any higher price. You can require a greater price out of your real estate investment because you surface encounters chuck russo won't feel financially strapped as you wait for an offer. You won't be backed into a corner and forced to accept just any offer because you desperately need the money.
Another downfall of numerous new to real-estate investing will be, well, greed. Make the profit, yes, but do not become so greedy that you simply ask with regard to ridiculous rental or second-hand rates on all of your real est investments.
Those new to real est investing have to see real-estate investing like a business, NOT an interest. Don't think that real property investing is going to make you rich overnight. What enterprise does?
It requires about six months to figure out if property investing set for you. If you've decided which, hey I love this, then give yourself many years to actually start earning profits. It typically takes at least five years to become truly productive in real-estate investing.
Persistence may be the key to success in real estate investing. If you've decided that real-estate investing is perfect for you, surface encounters chuck russo keep plugging away at it and the rewards will be greater than you imagined.
It is very difficult to determine the sex of a pigeon. I used to keep pigeons as a kid so I’m good at it.
There are three ways to do it:
1 – Check their reproductive organs
Pigeons genitalia all look the same (they have ‘cloaca‘) so you will have to cut them open to actually see their reproductive organs. Not a very efficient method.
2 – See who goes on top
There isn’t much variation in the sex life of a pigeon. Males go on top. No Kama Sutra here. Fortunately all they do is eat and, ehm, reproduce. You won’t have to wait very long to see that happen. But you do need 2 pigeons and some patience.
3 – Look at their faces
Yes, pigeons have faces just like humans.
It takes years to be able to read the face of a pigeon. I kept pigeons as a kid so I can tell the sex of any pigeon just by looking at their faces for few seconds. Just like with most humans. Humans have the added benefit of clothing, hair and breasts. But even without that a face looks feminine or masculine.
Investors try to look under all those feathers but up close all excel sheets look the same. They try to see who goes on top but then you would have to wait until the entrepreneur meets an actual client.
But once you have met enough starting entrepreneurs one look at someones face is usually enough. You know what you have got and who is a good bet and who isn’t.
Just like with pigeons.
This is a variation of post I published in 2007. Photo credit: Igor Stevanovic via Shutterstock.
You wouldn't think Apple and Indonesia have much in common. On the surface, they don't, but they can still teach you a lot about investing. Let's start with Apple.
Apple made the news recently with two major events. It is locked in a battle with Exxon over which is the most valuable company by market capitalization -- a remarkable turnaround. Apple has a market value of over $344 billion. Then Steve Jobs announced his resignation at Chief Operating Officer for health related reasons.
According to a thoughtful blog by Weston Wellington of Dimensional Fund Advisors (not available online), it was not so long ago that the financial media was trashing Apple. In February 14, 2005, Robert Barker, in an article in BusinessWeek stated "...Apple doesn't tempt me..." I wonder what did. Maybe Lehman or Bear Stearns!
Steven Gandel weighed in with an article in Money on March 24, 2004. He quoted Transamerica portfolio manager Chris Bonavico who opined that Apple stock is "...crap from an investor standpoint."
Many analysts credit the remarkable sales of its Apples Stores as the key to Apple's success. In a quote attributed to David Goldstein, Channel Marketing Corp, which appeared in an article in BusinessWeek on May 21, 2001, Mr. Goldstein gave Apple "two years before they're turning out the lights on a very painful and expensive mistake."
What can you learn from these comments about Apple stock? Read the financial media if you find it entertaining. It's useless (and potentially harmful) as a source of reliable financial advice.
What about Indonesia?
The financial media was preoccupied with the downgrade by Standard & Poor's of the credit rating of the U.S, which lowered its rating from AAA status to AA plus. The new rating places the U.S. below the United Kingdom, Canada and even the Isle of Man.
Many investors viewed the lower rating with alarm and considered it a precursor of low stock returns for decades to come. The data tells a much different story, and may indicate there is no better time to invest in U.S. stocks and bonds.
In another blog, Wellington notes that Standard & Poor's rated the credit of Indonesia a "B" in July, 2001, which placed it in the "junk" category. Over the past decade, its credit rating has never risen to investment grade.
Investors in the Jakarta Composite have earned a total return of a whopping 29% per year over the last decade, ending June 30, 2011. According to Wellington, "If the Dow Jones Average had kept pace with Indonesian stocks over the past decade, it would be over 104,000 today."
Here's the lesson to be learned from Indonesia: A low (or reduced) credit rating on sovereign debt does not necessarily correlate to lower stock market returns. This is the opposite of what many investors and financial talking heads believe.
Most investors get their financial information from the financial media or brokers. As Dr. Phil would say: How is that working for you?
Dan Solin is a Senior Vice President of Index Funds Advisors (ifa.com). He is the author of the New York Times best sellers The Smartest Investment Book You'll Ever Read, The Smartest 401(k) Book You'll Ever Read, and The Smartest Retirement Book You'll Ever Read. His new book, The Smartest Portfolio You'll Ever Own, will be released in September, 2011. The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. Returns from index funds do not represent the performance of any investment advisory firm. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Readers who require investment advice should retain the services of a competent investment professional. The information on this blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or class of securities mentioned herein. Furthermore, the information on this blog should not be construed as an offer of advisory services. Please note that the author does not recommend specific securities nor is he responsible for comments made by persons posting on this blog.
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