Women and Real Estate

If you don't already own a home, there are so many reasons to from a financial perspective: 

• build equity
• save money on taxes and use your equity as back-up security 

Equity is the ability to increase the difference between your home value and the amount you owe on your mortgage.

Moreso, as a woman there is an even important reason, it is a tremendous source of security for your future. 

Many women that own real estate have seen success in other parts of their financial lives as well! 

This could include renting out spare rooms for additional income.

If you already own a home, you should think about paying down your mortgage a bit more each month or year. 

If you are married, this will only increase the value of your assets towards your retirement. 

In fact, it is an opportunity to become more active within the financial realm of your life. 

By becoming interested in the insights of the financial details of how it works (i.e. through paying off your mortgage earlier, refinancing when rates lower or appraising the home when values rise), it can lead to taking more of an interest in other areas of your family's personal finance. 

For women that end up alone, either through divorce or widowed, owning a home can provide tremendous financial security. 

It provides options that provide security later on in life such as: tapping into the value of the home, getting extra income or taking advantage of the increased value. 

Since real estate prices have gone up so much these last few years, partially due to low interest rates, you might be thinking that you can't afford to get into the real estate market where you live. 

You can look in other areas. 

For example, central CBD locations have become prohibitively expensive. 

Therefore, many people are buying homes in the outer suburbs and have already seen property values rise. 

Or you might be thinking that you don't have enough saved for a down payment. 

Many people don't believe in mortgage insurance, the reality is that this may be worthwhile to enable you to purchase a home. It is likely you will see this money returned as the value of your home may have gone up so the insurance is money well spent.

If you don't do anything about it, you still won't have enough saved for a down payment. 

The alternative options is that you could buy a small 1 bedroom apartment and rent it out. It doesn't always have to be the home you need to live in.

My first investment property was a 1 bedroom apartment in a boutique development in Melbourne's CBD in Australia. I have since purchased further investment properties and have not lived in any of them.

I am a "rentvestor" which means that I rent myself and buy houses to rent out to others.

If owning a property is aligned to your goals, the key is to just get started!

Make Sure You Are Crystal Clear About Your "Invest" Definition

In today's unstable economy, many people are searching for alternative means of making money and creating their own retirement plans. It is becoming clear that corporations and governments cannot guarantee your retirement plan upon turning 65. As a result, many are taking control of their own futures and putting their money into investments like property and shares. For others, it may be a distant dream, but they are not quite sure where they should begin. The definition of "invest" is a broad one and there are several methods. 

Buying a property is considered a fairly safe kind of investment, because real estate generally appreciates in value. There are a couple of different options to choose from. You can purchase a single home, a multi-unit complex or a vacation home to rent out to various tenants; alternatively, you can purchase a home for a low price and renovate it, then sell it for a higher price. Each option has its pros and cons and it's important to do some research before making a decision on which method you will go with.

Becoming a landlord is a huge responsibility, and you will need to become familiar with the local laws regarding tenants. They will be well aware of their rights, so you should be aware of yours. If you consider yourself a DIY person and can install floors, renovate bathrooms and apply a coat of paint, then flipping properties may be for you. 

When you complete the renovations yourself, you save money and increase your profit. When everything has been done, sell it at market value. Once it's sold, you can collect a nice big lump sum of money. Now, you can find another home and repeat the entire process. When you rent your properties, you receive a smaller amount of money, but it is a steady monthly income.

Keeping a lump sum of money in a bank account is not a good wealth-building method. If you decide not to purchase any more properties, another investment option is shares. When you buy the shares of a company, you are becoming part owner of that company. There are many public organisations and companies that offer their shares for purchase. You can get them via a self-directed investment account or a stockbroker. Due diligence and research are imperative before deciding which companies to include in your portfolio. 

You make a profit with shares by buying low and selling high. Depending on the type of company you invest in, you could see profits in just a few weeks, or it might take a few years. Many people buy stocks and hang on to them for at least 10 years; others sell them as soon as they realise they will make money.

An easier option is to invest in Index funds and or Exchange Traded Funds (ETFs) where you are buying a group of companies as opposed to one individual company. Buying into a group of companies protects you when the prices fall as you are not as exposed in comparison to one individual company.

But above all be clear as to your invest definition, and increase your knowledge and resources, you are able to make better decisions. Having a comprehensive plan is a good first step to taking care of your financial security. The time has come to stop depending on governments and corporations to provide your funds for retirement. 

Article Source: https://EzineArticles.com/expert/Mike_McLoughlin/587899

Why Should I Invest in the Stock Market? The Truth Revealed!

Why do people invest in stocks? For some, it's like gambling. They high associated to the adrenaline that comes as a result of throwing hundreds or thousands of dollars into high-risk, high-reward endeavors. Of course, many individuals are highly calculated and look at investing in the stock market as a way to fund their future, perhaps in an extremely comfortable fashion. Of course, this is actually very possible to do, but not without the proper psychology, mechanics, and discipline in place. 

So why should we invest in the stock market? 

No matter how you look at it, your stock picks will be a gamble. It is possible for an undisciplined individual to bankrupt themselves very quickly. With that being said, there are several advantages of stock trading and investing that far outweigh the risks involved. 

Firstly, with a long-term focus, there is seldom a regulated market that doesn't rebound. This means that with a bit of due diligence, you can continually invest in an index fund whether the market is weak or strong, and chances are good that you'll come out on top eventually. 

Imaging this scenario. You invest in the stock market in a fairly low risk way, meaning you pick an  index fund (you can even invest in the NASDAQ itself) and invest $300 per month into your fund. What happens when the market goes up? Your stocks are worth more! But what happens when the market goes down? While the pessimist may panic, the wise man or woman will simply view this as an opportunity to purchase even MORE shares for that same 300 bucks! 

Then, when the market goes back up, you've got LOADS of shares enjoying this increase in value. Does this make sense? I know it's pretty basic stuff, but the basics are where a LOT of people unfortunately make their mistakes. 

Another reason I invest in the stock market, and why I firmly believe you should, too, is that you can get out of a bad decision in a heartbeat. Just sell your shares. Done. Do you think you have that kind of freedom to just walk away in the real estate business? Not a chance!

 The point is - and hear me loud and clear, I LOVE real estate - the stock market is a far more streamlined investment. For all intents and purposes, it's digital vs. physical. Both are valid in terms of return on investment, but only the stock market allows you to be incredibly efficient with your investment maneuvers. 

Consider starting small, if you're a beginning investor. And above all else, educate yourself. Read books, attend courses, join and converse with Femvestorsglobal... it's YOUR capital, so you'd better know your stuff! Do NOT blindly trust the "experts," as they're just people... and they can be just as wrong as anybody else!

Remember, education is everything!

Do You Want to Know the Six Easy Steps Into Your First Investment Property?

Thank you for your curiosity about what the six steps are to your life as a Property Investing. As an active investor I know it's not about the property itself, it's about the dream. Property is just the express bus to financial independence, to wealth and to creating a lifestyle full of freedom, choice and the ability to do what you love. 

Have you actually taken the time to ask yourself what financial freedom means to you? Is it having enough money to pay for a fabulous lifestyle, is it having enough income producing assets so you never have to worry about money again? Is it having enough money so you can quit your job, so you too have the time to discover your divine purpose, do what you love for a living and contribute your message, your cause. 

For me it's empowering women in their finances, which is a catalyst for empowerment in all other areas of your lives. So you too can become financially free, to take of the mask you wear every day and to stand in your feminine energy, become authentic and inspired to share your unique message, your gift, your purpose with the world. 

There are so many great property programs in the market place today from successful investors teaching people how to invest, yet only 10% of people who invest time and money in these programs will take action and actually buy a property. Why is that? I realised that 80% of investing is psychology or the right mindset and only 20% is the actual investing. This is why the market has created a need for Property Empowerment. 

After going through the process myself for a third time, it occurred to me that buying an investment property can be a very daunting, costly and time consuming process, when navigating it alone. It's no wonder that only approx 5% of property investors buy more one or two properties and only a staggering 1% retire financially free on with more than five. 

It also occurred to me that many women, regardless of how committed you are, might be put off by the uncertainty and the contradictory information available. You give in to the fear of making a mistake and allow yourselves to be swayed by the well meaning dream stealers to not only give up the challenge, but all the dreams that go with it. 

So to make your venture into property investing by following my six step program. It's about creating the right environment and the right mastermind team of active investors who specialise in residential property investing. Leveraging against their combined experience and knowledge to help you on your journey to property wealth and success. 

Whilst you engage a team of experts, you must however, always remain 'in charge' of your property investing business. Lay a solid foundation for success by empowering your mindset as the most vital first step, then educate yourself in the basics of property, finance, tax and structure. Once you have a sound knowledge of the above, you can leverage against the knowledge and resources of relevant experts to make it happen quickly and efficiently. 

The 6 Step Property Program Includes: 

Step 1: Creating an Empowered Investor Mindset 

Step 2: Education and Information 

Step 3: Finance Strategy 

Step 4: Portfolio Structure 

Step 5: Property Purchase 

Step 6: Property Conveyancing 

Step 1. Creating an Empowered Investor Mindset 

The first and most vital step in becoming a successful property investor is having the right mindset. Successful investing is 80% mindset or psychology and only 20% strategy, which in our case is residential properties. The market proves this to be true over and over again with all the failed property investors who thought it was just about buying a house.

The Oxford Dictionary defines "mindset" as a habitual way of thinking. It has also been described as an attitude, disposition or mood; an intention or inclination. I think this is a very fair description. Having the right attitude about property investing or any other aspect of your life to the point where it becomes a "habit" or behaviour is vital for your consistency, determination and eventual success. 

You must empower your mindset with specific regard to your values, decisions and beliefs around money and investing. Work with Femvestorsglobal to identify and work with your unconscious values in quite some detail to ascertain whether creating wealth is something you value and whether you are motivated toward a desire for abundance or away from your fear of scarcity and lack. If creating wealth is not a an unconscious value, no matter how hard your consciously try, you will not succeed. 

Work with a qualified Neuro Linguistic Programming (NLP) coach who specialises in finance or wealth creation and with their many tools, identify and eradicate any deeply held decisions and limiting beliefs that have unknowingly held you back in the past. Then instill new, more empowering beliefs and lock them all into place using targeted goal setting and visualisations. 

Step 2. Education and Information 

Once you have the success mindset of champions it's time to head into the classroom to learn about Property, Structure and Finance. Although this is when you will leverage the time, knowledge and expertise of many experts throughout the program, it is essential that YOU remain in charge of the property investing business. 

You need to treat every investment property, with its income and expenses, as though it were a stand-alone business with you as the Director. You don't need to be an expert in all aspects of investing, but it is important to be educated and well informed. 

You must understand the basic concepts of property, finance and structure so you can both understand and communicate with the experts in these specific areas of your investing. Get educated in such topics as property basics including property selection criteria and the Wealth Creation Strategy. Look into the basic principles of company and trust structures and which is best suited to your personal circumstances. Look into the multitude of investment mortgage options, the principals of each and shortlist which will suit your current financial and investing situation best. 

Researching and becoming informed will not only increase your financial and property vocabulary but will give you a very sound understanding of property investing, saving you time and money when eventually dealing with the relevant experts. Do not however, use the excuse of lack of knowledge and not knowing enough, to get stuck in analysis paralysis, know when to say enough is enough and get started. You never stop learning about investing, so expect that you will learn along the way. 

Step 3. Finance Strategy 

Now that you have a successful investor mindset and a good basic understanding of property, structure and finance it's time to look in detail at your overall finance strategy which can make or break your success as an investor. With the expert guidance and advice of a finance broker who specialises in investing, not mum and dad mortgages, firstly review the mortgage on your existing home (if any) with the aim of refinancing and releasing equity to be used as a deposit and a buffer for your first investment property. 

Then with your shortlist, look at the best option according to your particular financial situation for financing your new investment property. Once you have chosen the best option, formally gain pre-approval or approval in principal for your future investment property, before moving to the next step. 

Step 4. Portfolio Structure 

Now that you have your finance in order it's time to look at what structure you are going to purchase your investment property in. This is the step that most people skip or don't even realise they need until after they have 3 or 4 properties and it's all getting very messy and complicated with the tax office. Here is where you will rely on the property and tax accountant to determine the right structure for you specifically. Whether you should buy in your name, multiple names, in the name of a company or a trust or a combination of both. 

The structure for your portfolio is as important as the concrete foundation under your investment property. It needs to be just as strong and it needs to be laid first, or like the actual foundation, it becomes very difficult and costly to fix any problems after you have built your home on top. 

You will need to verify this for your own geographic region, If you decided to transfer a property from your own name into a trust you would in effect have to "sell" the property to your own trust which incurs all the normal legal and buying and selling costs including having to repay the stamp duty.. ouch! 

Step 5. Property Purchase 

Now that you have your investor mindset, your sound knowledge, your finance strategy and your structure in place, it's time to finally go property shopping... Yahoo!! This is contrary to a novice investor who at an open house is lured by glossy brochures, the smell of an open fire, baking bread and percolating coffee, falls in love with a property first and then worries about the rest later. As a professional investor, you buy with logic not with emotion. 

In all areas of my own professional investing I assign each task to companies who are specialists in that area. Their teams are so committed and so passionate about their specialty that they spend all their resources sharpening their knowledge, skills and expertise, thereby becoming industry leaders in their field. 

Think of it this way; if you want a haircut you go to a hairdresser, if your pipes are blocked you call a plumber, to service your car you go to a mechanic and these are all relatively minor expenses. Even when selling a home, people engage the services of a local real estate agent they trust. So I don't understand, when spending hundreds of thousands of dollars, people insist they are more qualified to find, select and negotiate on a quality residential investment property than a specialist buyers agent. Unless you are an expert this can be risky and extremely time consuming as you spend 12 months searching for a property. Not to mention expensive as the market keeps going up and up as you search, requiring a bigger deposit. 

I advocate using a professional who wants to see you succeed. One who specialises in the specific area you are investing in, who has all the network and personal relationships required to find you a great investment, with any luck, under market value. 

They will select a short list of properties with a history of good growth that fit within the selection criteria and then it's a simple matter of making an informed choice. Depending on the property type, you can then organise to have your building, pest or strata inspections undertaken as necessary. Being a new investor, or if you are new to the particular buyer's agent, I suggest you organise an independent valuation to confirm you are paying fair market value. 

Once a property is chosen, the agent will use their extensive negotiation skills to negotiate on your behalf for the best possible price and settlement conditions. If the offer is accepted you celebrate!! but if not, then you start over again. 

Step 6. Property Conveyancing 

Congratulations, your offer has been accepted, the deposit has been exchanged, the champagne is flowing and you are now officially a property investor. You are on your way to financial freedom. So now it's time to kick back, relax and watch the capital growth right? Well, not quite... There is still one very important step to go. 

You now need to legally transfer the property from the vendors name into your name or the name of your trust. You can choose either a solicitor or a conveyancer to do this on your behalf. They will do all the necessary searches and checks required to ensure that the property you purchased is exactly as stated in the relevant contract in your country. They confirm that there are no structures that are not government approved, any unexpected water or electrical easements, caveats or any other nasty surprises. 

They will also be responsible for coordinating settlement between you, the vendor, their solicitor and both lenders...Now that is no easy feat! Settlement, usually 30 to 90 days later is when your loan is fully drawn down and the balance of the purchase price and all associated finance and legal fees are paid. 

To further protect yourself, this is also the time to review your insurances and estate planning and create or update your will to include your trust and portfolio. This will ensure that your specific wishes are respected with regard to your legacy that you have worked so hard to create. 

So that's it... a simple, accelerated 6 step process that you can follow, no matter what your level of property experience or what town or country you live in. Start your journey to wealth and empowerment through residential property, so you can become financially free, become authentic and free to create the life of your dreams. So what are you waiting for?

Article Source: https://EzineArticles.com/expert/Luca_Ricciardiello/172537

Women and Retirement - Start Preparing Now

As much as we all hate to admit it, financial planning - for business and for personal use - has long been an activity that falls on male hands. Although the majority of us women handle the day-to-day financial aspects of running a family, few of us spend the same amount of time on creating long-term plans. In fact, only about 45% of women participate in a retirement plan where they work, compared to almost twice that for men. (Statistics exclude Australia as your employer is required to pay into Superannuation where applicable).

Many of us who do take this important step in financial planning tend to use that money too early, especially, when the family is in financial trouble. Despite the fact that we continue to strive for more equality for us in the workplace, we continue to miss out on opportunities to prepare for our retirement years. 

Why Retirement Planning is Important

If you retire at 65, you could have up to 25 or 35 years of retirement ahead of you. These days, very few women are investing in preparation for these so-called relaxation years, and over half of us women will end up working long after the age of 65. And those who do retire often find it difficult to maintain a high quality of life because the cost of living increases at a higher rate than our returns. 

For some women, retirement and financial planning isn't considered a top priority, whether it's because we consider ourselves too busy or we intend to share in the support and long-term planning of a spouse or other long-term partner. The reality is that half of all marriages fail, and oftentimes to catastrophic financial damages. Even if a couple does make it to the "golden years" together, it is considered unwise financial planning to put all our eggs in one basket, so to speak. With two retirement funds, most couples will be better off over the long term, whether they are still together or separated when the time for retirement hits. 

How Women Can Prepare for Retirement 

Part of the problem for many of us is that we don't know where to start with our financial future. The financial world can be complicated to navigate, and many of us suffer from a misapprehension that we might be discriminated against based on our gender (hence, Femvestorsglobal was formed!)

With the right financial advisor, this will never be the case. The best thing any of us can do is to educate ourselves and start small. As you learn more and start to build relationships with our team, you can start investing in bigger things and making more informed money choices. 

To start out, you should be making full use of your employer's retirement program. This will stand you in good stead later, but don't depend only on this. Investing in low risk index funds is an excellent way for women to get started in investing. These lock your money in for a specific term, which is perfect if you can't handle the temptation of having money in the bank. 

Thanks to advances in technology and financial options, there are a number of investment options that women can take part in. We support and educate you and help you choose the methods that work best for you and your family. This is an important part of planning for your financial future and will make all the difference when the time comes to retire and start enjoying those golden years with those you love.

Article Source: https://EzineArticles.com/expert/Wesley_Watkis/362080

Ladies- Why we prefer the safer option of investing in property

Historically, women lacked the resources and confidence to enter the property market, but trends show that as more and more of us women are occupying higher paid jobs, we are becoming more proactive investors and taking charge of our finances.

It has been shown that we have a preference for property investment, when compared to other riskier forms of investing. 

But what is actually driving this pattern for investing? 

Many of us who might previously have felt low in confidence, now have the knowledge and tools to make informed investment and property decisions right at our fingertips. 

We are turning to the internet as the source of our property investment advice. The availability of information has empowered many of us, giving us the initial confidence to take to the property market. 

However, despite the advantages the internet offers, female investors should be aware that nothing can replace the advice of a trusted financial "Fiduciary" professional and obtaining sound investing advice. In addition, we need to also look to Property experts familiar with the local area we are looking to invest in. 

With our increased financial freedom, we are recognising that a man is not the ultimate financial plan, and that we have the ability to plan for our financial future - regardless of our relationship situation. 

We are educating ourselves about investing and choosing the best investment portfolios based on our desires and needs. 

As we are generally perceived as more cautious investors than men, preferring to invest our money in options with lower risk. It is usually because we see the tangible investment of property (as we can see, touch and feel), which we recognise as a more stable and safer investment choice. Money invested in the property market can also provide long-term returns and reliable income through to retirement if managed correctly. 

Property also offers a sense of control and the opportunity to make an investment property our own is also attractive for us women, who are instinctive nurturers by nature. By turning a property into a home, this also contributes to our sense of enjoyment and ownership. 

With property, we also have the option of purchasing a lower-end investment, and through our own personal efforts and investment into home renovations, increase the value of our investment. 

As the number of women in property continues to rise, we pioneering ladies are paving the way for the success of other female investors. Financers, developers and realtors are all taking notice of the trend and providing property options tailored to the needs of women. The property market is no longer a male-dominated investment arena. With our newfound financial freedom, we are growing more proactive with our investments and our confidence is increasing.

Investing our money in the property market can provide a stable, safe return over the long term. This reliability is something we women want and appreciate. 

 Article Source: https://EzineArticles.com/expert/Kathy_E_Roberts/1202759

Why Us Women Fall Off the Financial Cliff

Why do so many women leave their financial future to chance? Why do women face so many challenges with their finances? If you could learn how to overcome your financial concerns, would you take action? After speaking to several women, which is the reason for writing my book which will be published later this year "Femvestors". Women don't get involved with their financial security. We leave it up to a myriad of other possibilities. 

Us women already face additional challenges that are unique. First, we have a longer life expectancy. According to "Statista 2021 Report" for developed countries, the average life expectancy for a man is age 79 and for a woman it is age 82. That's a 3 year difference, which means retirement savings must last longer. With longer life expectancy comes the possibility of health issues and the need for long term care planning. 

According to the World Economic Forum Global Gender Gap Report 2020, worldwide, women on average earn around 20% less than our male counterparts for equally valuable work. Major variations exist across countries and regions- the gender wage gap ranges from 3% in Luxembourg to a staggering 37% in South Korea  – no country in the world has yet achieved income parity, however, Iceland is on track to become one of the first countries to achieve this. The impact is that we are contributing less to our pensions, superannuation, 401ks and social security, resulting in less retirement savings to draw income from in retirement. We also have less discretionary funds to invest and save to sustain our lifestyles now and in the future. 

Women also fall into the role of primary care giver taking more time off from our careers to fulfill care giving roles to either our children, elderly parents or a sick spouse. Less time earning income further reduces their ability to save. 

Women tend to rely on our partner to manage investments, balance budgets, and create financial plans. With the divorce rate at 50% (and climbing post Covid), us women could find ourselves single and not knowing where our money is or how much it is worth. Even worse, not knowing if our partner carefully managed the family assets or possibly squandered them away. For the widowed woman it may mean trying to manage our finances with little knowledge at a much older age after a lifetime of being out of the financial picture. Many women don't plan for the possibility that we may lose our partner's pension and other benefits. Either of these cases could come with detrimental effects.

Lack of financial knowledge ranks high on the list of challenges facing us. Traditionally, we are not encouraged to educate ourselves on financial issues. More than 70% of men say they have a good understanding of stock market basics, but less than 45% of women feel that way. This puts us at a disadvantage to our male counterparts. This lack of knowledge leads us to be more conservative, under utilising stocks, bonds and other invests. As a result our long term returns and ability to hedge inflation are affected. Research released by HSBC showed that many women are not prepared for retirement, with just 24% of women in their 50's claiming to have a financial plan in place. 

After learning about the challenges us women face with our finances, do you want to leave your financial future to chance? What are you ready to do to overcome these financial concerns? Please consider taking charge of your future by working on a financial plan. Don't let a longer life expectancy, lower earnings, and lack of financial knowledge take you off course. Make a plan to take charge today!

 

Article Source: https://EzineArticles.com/expert/Bill_Leavitt/1496352

Top 10 Keys To Successful Real Estate Investments

When dealing with real estate investments there are many steps to go through before investing. Here are my top 10 keys to a successful real estate investment. 

1) Education 

If you are not experienced in real estate investments the very first thing you should do is to get educated. Take the time to find out what all of the risks are in the investment type you are interested in. Find others that can help educate you on the investment type, which are not involved in the transaction you are doing specifically so there is no conflict of interest. Buy educational material, get connected with online groups and go to multiple seminars in order to continue your education

2) Goal Settings 

If you do not have a goal lined out for your real estate investments how do you plan on getting there? Most investors buy one property, or invest based on emotion rather than having a set goal in mind. For example, you could have a goal of obtaining $30,000 per month in passive rental income from your investments through buying single family rental homes and apartment buildings. Your goals should be clearly defined and should include protections and risk mitigation techniques to make sure it is a stable viable plan that can be obtained

3) Building Your Resources

You WILL NOT become a successful real estate investor without resources. In real estate resources include, capital investors, property leads, team members and much more. For this you must expand your relationship base. Real estate is a team sport so if you do not build your network, you cannot build your team

4) Building Your Team 

In order to make your investments work you must build your team. Some of the team members you need are Real Estate Agents, Brokers and Bankers, Private Lenders, Appraisers, CPA's, Attorney's, Affiliates, Inspectors, Property Managers and Contractors. There are much more but it's pretty impossible to name them all. It takes quite a bit of time to develop your team and make sure they can be relied upon. Building a team is the most important aspect of investing other than your due diligence on the investment itself

 5) Due Diligence

Before investing in any real estate asset your due diligence is crucial. You need to analyse the market your investing in, the market timing relative to that market, the specific neighborhood, the market value of the investment, the cash flow it produces, the rental income it should bring in, all of the expenses related to the investment and much more. 

Inspections should be done as well as review of all of the backup documentation such as leases and contracts. Think like an auditor, review all of the backup information provided by the seller and verify it with an outside source as much as possible. I hear horror stories all the time about how people lost money in real estate. After inquiring as to what happened I can say that 99% of the time the investor did not do or know how to do the right due diligence on the investment in the first place. 

6) Property Management

Property management can make or break your investment. If you do not have a competent property manager that actually cares about your investment and your success you will have a losing investment. 

Most managers are bad at some of the basic management functions such as accounting, rent collection, tenanting, leasing and background checks, repair calls and taking care of the tenant. By far the most important and biggest problem is communication with the owner of the property. 

Communication is crucial because without communication the investor cannot make decisions regarding the investment and lack control. Property management also needs to be structured based on performance, meaning, they get paid if it's occupied only, not when it's vacant and there are incentives in place to optimise performance. 

7) Marketing 

If you do not know how to market for property, capital, property sales, and resources you will not be successful in real estate. Marketing and sales is one of the most important parts of any business. 

During economic problems and recessions most companies cut back on marketing when it's most important to increase your marketing efforts. If there are less investors, buyers, and resources available because of the economy, there is more of your competition going after your resources. So in order to attract those resources before your competition you have to market more. 

Marketing and sales is a business all in itself so getting educated on marketing strategies is imperative to your success. If you do not understand it or start to learn about internet marketing you will not gain the market share you deserve and will not be as successful. 85% of buyers go online first for investments. 

8) Treat Your Investments As a Business 

Most investors buy one real estate investment and do not fully utilise all of its capabilities from a business perspective. If you own one property or 50+ properties you should be treating it as a business. Be sure to keep track of ALL of your expenses related to the investment, the due diligence you did, travel costs you incurred, etc so that you can get a deduction for those items against income from other sources. 

These types of expenses can happen annually and a percentage of your personal expenses can be used as a tax loophole in order to deduct more against your active income from your job. Your biggest expense in life is your taxes. It is the government's job to find more creative ways to tax us. It is our job to find creative ways to legally not pay taxes. If you are not winning against the government, start to educate yourself on key tax saving strategies. 

9) Legal Protection And Tax Structuring 

It is crucial that you protect yourself from financial predators. There are people out there that will sue anyone they possibly can. It's really important to obtain insurance or put your assets into a proper entity so that you are not liable in frivolous lawsuits. 

Please consult your individual tax advisor to go over your specific situation. Also be sure to keep yourself separate financially from the investment or entity you hold the investment in so that you do not pierce the corporate veil. If you co-mingle your funds there is a very real possibility that in court your legal entity protection that you worked so hard to setup is worthless. 

10) Investing In Sustainable Investment Types 

Invest in asset types and real estate investments that are sustainable in the long run. Look closely at the cash flow included in the investment. 

Flipping can be much more dangerous than investing for cash flow because you typically have a payment on a flip investment that is not covered fully by the rental income and if you get stuck with the property you find yourself in a negative cash flow situation and can only sustain as long as you have money in the bank that can make that payment. Many people lose a lot of money trying to flip property, not knowing fully what they are doing and the risk they are taking only to lose a significant amount of money. 

On the other side when you are investing for cash flow only invest in quality assets. Typically if you invest in low end assets in your market you get low end tenants also. What I consider a low end tenant is someone that does not pay the rent on time if at all, causes damage to your property and is a nightmare to deal with. This happens quite frequently in low end property for a particular market. 

You want to invest in quality long term assets that are going to produce positive monthly cash flow and make you a great return on investment after you have been conservative with the numbers. I truly believe if you do these things along with increasing your financial IQ you will be successful if you work hard for it. 

Most of the wealthy individuals in the world work hard for their money and are constantly evaluating their financial situation and investment goals. Putting a personal budget together and reviewing it monthly, creating additional income sources, implementing tax savings strategies, protecting your money from financial predators and constantly educating yourself are the keys to becoming wealthy. 

Article Source: https://EzineArticles.com/expert/Mathew_P_Owens/916588 © 2021

8 Causes of financial failure

Struggling financially? A lot of people are, even though they give everyone the impression that they have it all made. They are working, live in a nice house and drive a nice car, but are living from payday to payday. Here are 8 major causes why people are struggling today.

Living beyond your means 

There is no getting away from it. If you spend more money than you earn then you must be getting your extra money from somewhere and that almost always means borrowed money, also called buying on credit. There is a cost to all of this and it is called interest. If you are in the habit of buying stuff on credit then the interest you are paying during your lifetime will add up to a fortune. The interest is sometimes called dead money because you have nothing to show for all of the interest you are paying. Think of what you could have spent with all of that interest. It is almost too painful to even think about but if you are to avoid poverty then you need to pull your head out of the sand and face the facts; your financial future depends on it. 

Keeping up with the Jones's 

Some people try to keep up with their peers with whatever they are spending their money on. It's a compulsion that will cost you plenty. Living up to some kind of self image will severely dent your finances and will prove costly by the time you stop working. You may think your peers are doing well financially to afford this stuff or even think they have done well for themselves but what you don't know may surprise you. That they may be up to their eyeballs in debt. Even if they are living within their means to finance their lifestyle, it does not mean you have to keep up with them. Don't be a people pleaser and live up to other people's expectations, live according to what is the right course of action for your own circumstances and you will be far happier. 

Consumer Debt 

Consumer debt or dumb debt as it is often called is purchasing stuff with borrowed money. It is spending tomorrow's income today. Debtors are usually oblivious to what is happening to the so-called stuff they bought on credit; that their newly acquired possessions are worth less the minute they have bought it. A crucial factor which needs to be observed is this; The money owing on the item is always more than what the item is worth. So many people are caught up in the debt poverty cycle and it is not just those on lower-incomes; in fact people on a middle -income are prone to this trap.

Commercial Greed 

Commercialism during the 20th century has brought a lot of prosperity; it has provided jobs and created countless businesses but there is another side to it. Social media and society has caused us to have an insatiable appetite for things. People are not content with just stuff they need but keep wanting more. This all has to be paid for, it is money that could have been used to build a financial base for their future. 

Addictions 

Addictions are very expensive; just ask any smokers. One does not need to be a mathmatician to calculate how much cigarettte smokers are paying for their addictions. It is estimated at over $A100 per week. That equates to $5200 per annum. No wonder many smokers are broke. It is the same with those who are addicted to alcohol and the pokies. 

Financial illiteracy 

Financial illiteracy is the major cause of financial poverty and it is not only those with low incomes who are financially illiterate; people on a high income can also be guilty of this. You hear stories of successful sports people who earned millions during their heyday but are broke years after their retirement. It is important to save and invest your money during your best earning years to set you up for when you are no longer earning as much. 

Irresponsibility 

Not taking responsibility for your own finances is irresponsibility. They will come up with all kinds of excuses why they or are not contributing to savings, and investment opportunities. Excuses such as, "You can't take it all with you," "I might die before retirement," or "I'm only young." People who are irresponsible with their finances tend to be irresponsible in other areas of their lives as well. Making commitments whether it is in a relationship, owning a house or car, or saving for your retirement takes responsibility

Bad Company 

There is no doubt that bad company is a major reason why so many people are living in poverty. It has been said, "You are the average of the five people you spend most of your time with," so it pays to examine who you are hanging out with and ask whether their attitudes and opinions on finance are influencing your money habits. In order to grow you need people to help and encourage you. This sometimes means separating from bad company. Some find that hard but in the long run it is all worth it.

Article Source: https://EzineArticles.com/expert/Robert_Alan_Stewart/2287449

Going Through a Divorce - Everything You Need to Know to Protect Yourself and Your Children

 Going through a divorce is never an incredibly happy time, but there are ways to make it as stress-free as possible - and protect yourself and your interests while you're at it. Even if your divorce is a relatively amicable one, you still want to get the best deal you can, and hopefully protect yourself and your assets now and in future. 

Top Ways to Protect Your Finances 

Don't forget to change your will. Many couples forget to do this after the divorce. Don't. When an imminent divorce is inevitable, there are simple ways to protect yourself from the financial fracas that will ensue. 

Get your finances in order and you'll be on your way to surviving the battle without any deep monetary scars... 

* Open an individual checking account. Do this as soon as possible. Not only will it help your credit rating, but will also help you sort out who has what. 

* Establish as much credit as possible. Credit is vital when it comes to borrowing money, and credit scores can affect future properties you may rent and even the type of job you get. Make sure you don't suffer any fall-out from your spouse's lousy credit rating, and do as much as possible to establish a solid credit rating of your own. If you've never had a credit card of your own before - and many women haven't, believe it or not - get on the horse as soon as possible. 

* Track down credit cards. Make sure your spouse isn't charging things to your name, or on a joint credit card, which could affect your rating. Track down and cancel any joint accounts. This can be difficult if they are not being sent to your home address. You can freeze accounts by telling the credit card companies that you are going through a divorce.

* Take care of the mortgage and other loans. If you will continue living in the house it's important that only your name is on the mortgage, and vice versa. The divorce proceedings will sort out who is paying for what. Transfer the car to one name as well through the Department of Motor Vehicles, and sort out who is paying for what loans. 

* Keep track of all investments etc. Go through all you and your spouse own with a fine-toothed comb, and make copies of every single financial document you unearth. This can include mortgage and life insurance documents, pension/super statements, tax returns, bank statements, money market accounts etc. Also, make sure your name is on every legal document, especially the title or deed of property the two of you bought together. 

* See if you qualify for alimony, support and/or maintenance. Support isn't based solely on gender - both men and women can get it. Similarly, you don't need to have kids to receive it. Don't make assumptions, get the facts. Speak to a divorce lawyer as soon as you can. 

* Save money. You never know when you will need it, so now is not the time to be a spendthrift. Squirrel away what you can in your individual bank account - it might soon come in handy!

 * Consider mediation as opposed to litigation. A lot less time-consuming - and costly. If it works, this is usually the best - and more financially viable way - to come to an agreement for everyone concerned.

* Don't forget to change your will. Many couples forget to do this after the divorce. 

* Hire a financial planner with a specialty in divorce. They can advise you what to do next as far as asset division is concerned based on your current situation. Top Ways to Protect Your Children Your children should be top priority when it comes to a divorce, so don't make things worse by acting badly. Children do best when both parents stay involved in their lives, so keep this in mind next time you feel like telling your ex to jump off a tall building or move to the North Pole. Here are other ways to make your kids deal better with your divorce... 

* Explain that it's not their fault. Don't let your kids grow up thinking they could have done something to prevent Mommy and Daddy from splitting up. Tell them it has nothing to do with them, and that both of you still love them more than anything. 

* Answer their questions as honestly as possible. That doesn't mean telling them that Daddy had 12 affairs and is in love with a woman half his age, and that he enjoys dressing up in high heels and a pink feather boa when they're asleep. What it does mean, however, is being as honest as possible, while not involving them in things they don't really need to know. 

* Keep things as amicable as possible in front of them. Airing petty grievances in front of the children and arguing constantly will only backfire in the long run.

 * Aim for shared custody arrangements, if possible. Children benefit from being with both parents. Make sure they have two happy, harmonious home environments and try to have both parents as involved in their lives at school as possible. Encourage your child to maintain a close relationship with the other parent, and encourage each other to be as active as possible in your children's lives, without canceling appointments and trying always to be on time. 

* Avoid the temptation to quiz your children about what is going on in the other parent's life, and don't use them to carry messages back and forth between you. They don't need the added responsibility, and it's not fair on them to feel they have to take sides or be in control of your relationship with your ex. Also, resist the urge to say bad things about the other parent in front of the kids. Top Ways to Protect Yourself Personally When all is said and done, you still have a life to live - on your own. Flying solo can be a liberating experience, once you've got over the shock of the divorce. Make it easier on yourself by following these simple tips... 

* Make sure you are employable. If you haven't worked for years, don't panic. Speak to a career counselor or life coach about re-doing your resume. Maybe all you need is to take a few courses or have an internship to get back on top of things. Maybe not: your life experience will count for more than you think! 

* Have lots of friends and family around you. Don't suffer things on your own. Seeing a film or visiting an art gallery can take your mind off your problems, if only for a few hours. Ask for support if you need it and try to enjoy the little things in life. 

* Seek new friends. Many married couples rely on other married couples for companionship, and often are left high and dry when they venture out on their own. Starting a new hobby can help you develop new interests and meet new people while you're at it. 

* Resist the rebound. While having new relationships can be fantastic, don't jump into a full-time romance immediately. Take the time to look around and enjoy yourself. Don't let friends set you up on a date, at least for a while. Being on your own is important - for now. Going through a divorce is never easy, but there are ways to minimize both the pain and the hassle. If you play your cards right you can make the whole process run as smoothly as possible - and make sure your future is financially secure as well. Take your time and get the help you need, and keep up a positive, optimistic outlook. Good luck!  

Article Source: https://EzineArticles.com/expert/S_Matthews/489059

What is an Investment?

One of the reasons many people fail, even very woefully, in the game of investing is that they play it without understanding the rules that regulate it. It is an obvious truth that you cannot win a game if you violate its rules. However, you must know the rules before you will be able to avoid violating them. Another reason people fail in investing is that they play the game without understanding what it is all about. This is why it is important to unmask the meaning of the term, 'investment'. 

What is an investment? An investment is an income-generating valuable. It is very important that you take note of every word in the definition because they are important in understanding the real meaning of investment. 

From the definition above, there are two key features of an investment. Every possession, belonging or property (of yours) must satisfy both conditions before it can qualify to become (or be called) an investment. Otherwise, it will be something other than an investment. 

The first feature of an investment is that it is a valuable - something that is very useful or important. Hence, any possession, belonging or property (of yours) that has no value is not, and cannot be, an investment. By the standard of this definition, a worthless, useless or insignificant possession, belonging or property is not an investment. Every investment has value that can be quantified monetarily. In other words, every investment has a monetary worth. 

The second feature of an investment is that, in addition to being a valuable, it must be income-generating. This means that it must be able to make money for the owner, or at least, help the owner in the money-making process. Every investment has wealth-creating capacity, obligation, responsibility and function. This is an inalienable feature of an investment. Any possession, belonging or property that cannot generate income for the owner, or at least help the owner in generating income, is not, and cannot be, an investment, irrespective of how valuable or precious it may be. In addition, any belonging that cannot play any of these financial roles is not an investment, irrespective of how expensive or costly it may be. 

There is another feature of an investment that is very closely related to the second feature described above which you should be very mindful of. This will also help you realise if a valuable is an investment or not. An investment that does not generate money in the strict sense, or help in generating income, saves money. Such an investment saves the owner from some expenses he would have been making in its absence, though it may lack the capacity to attract some money to the pocket of the investor. By so doing, the investment generates money for the owner, though not in the strict sense. In other words, the investment still performs a wealth-creating function for the owner/investor. 

As a rule, every valuable, in addition to being something that is very useful and important, must have the capacity to generate income for the owner, or save money for him, before it can qualify to be called an investment. 

It is very important to emphasize the second feature of an investment (i.e. an investment as being income-generating). The reason for this claim is that most people consider only the first feature in their judgments on what constitutes an investment. They understand an investment simply as a valuable, even if the valuable is income-devouring. Such a misconception usually has serious long-term financial consequences. Such people often make costly financial mistakes that cost them fortunes in life. Perhaps, one of the causes of this misconception is that it is acceptable in the academic world. 

In financial studies in conventional educational institutions and academic publications, investments - otherwise called assets - refer to valuables or properties. This is why business organisations regard all their valuables and properties as their assets, even if they do not generate any income for them. This notion of investment is unacceptable among financially literate people because it is not only incorrect, but also misleading and deceptive. This is why some organisations ignorantly consider their liabilities as their assets. This is also why some people also consider their liabilities as their assets/investments. It is a pity that many people, especially financially ignorant people, consider valuables that consume their incomes, but do not generate any income for them, as investments. Such people record their income-consuming valuables on the list of their investments. People who do so are financial illiterates. This is why they have no future in their finances. What financially literate people describe as income-consuming valuables are considered as investments by financial illiterates. This shows a difference in perception, reasoning and mindset between financially literate people and financially illiterate and ignorant people. This is why financially literate people have future in their finances while financial illiterates do not.

 From the definition above, the first thing you should consider in investing is, 

"How valuable is what you want to acquire with your money as an investment?" The higher the value, all things being equal, the better the investment (though the higher the cost of the acquisition will likely be). 

The second factor is, "How much can it generate for you?" If it is a valuable but non income -generating, then it is not (and cannot be) an investment, needless to say that it cannot be income-generating if it is not a valuable. Hence, if you cannot answer both questions in the affirmative, then what you are doing cannot be investing and what you are acquiring cannot be an investment. At best, you may be acquiring a liability. 

Article Source: https://EzineArticles.com/expert/Eugene_C._Onyibo/1291199