Generational Financial Responsibility

As with most skills, talents, and overall 'education' gained throughout a lifetime of experiences, remember - practice makes perfect, and consistency is key. We suggest that when imparting knowledge of finances; from children saving change in a piggy bank, to teenagers saving a percentage of an allowance or gifts in cash, working with them in a mentor role, as they start their very own bank accounts is critical to generational success. 

Practice Makes Perfect 

Every day, month, quarter and year, there are activities and habits needed to be accomplished consistently. This helps ground children in the basics of financial literacy, which are appropriate to their family wealth factors and long-term responsibilities such as philanthropy. 

Children who will inherit significant wealth and the responsibilities that go along with it, require world-class preparation. Balancing income and outgoings and understanding compound interest is one thing, but managing assets, establishing a growth-mindset, and teaching a child to have vision, is another. Parents may have built up a very successful business, but your children may someday need to sit on the board and also approve the management of investments that support an extended family.

One way to engage children is to play off of their passions; otherwise, financial education will feel like classroom instruction. There are "family wealth advisors" who work with families to identify the things their children already have an interest in, and are willing to spend time pursuing such as a favorite sport or activity. From this identification, these counselors develop a learning program around the child's interest or passions as a theme. 

The end goal is to help each family member of the next generation to have an individual 'economic vision statement,' and to have developed the skills required to realise their unique vision and support in turning the vision into a reality.

While many families want their children to understand the basic concepts and terms, their children need to go beyond the introductory level of money management to incorporate family values, such as those related to charitable giving or volunteering, as well as their particular interests in participating. Their 'economic vision statements' themselves will evolve as these children mature and become more focused in their individual interest and goals. 

Consistency is Key 

Every family takes for granted that if a child is going to be a proficient at tennis, golf or the piano, they need regular lessons, a great teacher, and practice. It's that same thing for financial education. And so, those kids who get practice, great instruction, and lessons do better." By incorporating the "passions" and interests of your children - regardless of age. 

Those parents who hope a financial education specialist can take their kids and tutor them may have good intentions, but they're not taking necessary actions to address the challenge. Parents and children must be involved. To do it otherwise is just a waste of time and money, not every family has the appetite to take on this work. It's costly. It takes a fair investment of time. And it certainly requires all family members to begin to look at their actions in a different way. In general, there's certainly interest in financial education, but I think a lot of it is just trivial unless there's an ongoing commitment to the process. The commitment needs to be at least as powerful as the commitment to building the next pro golfer.

Planning for Financial literacy 

Learning starts early - just as models of non-productive behavior do. While parents may have good intentions for raising money-mature children, they often fail to succeed because they don't move from 'soft' intentions to a realised program of financial education tailored to the age and interests of the next generation. 

The kids who do well have parents who've gone from good intentions to being intentional. Every parent has the good intention for their children to grow up financially intelligent, but few of them really act on it. Parents who have a growth mindset, are committed to their intentions can help ensure the orderly transition of financial planning from parent to child.

Hot Tips: 

• The prime age is between 6 and 14 for learning and building good, solid money skills 
• Preparation for building and managing wealth is an on-going activity, if you want to create and sustain long term generational financial responsibility
• Consistency, planning and practice truly does make the real difference

How Do I Get Into Commercial Real Estate Investing?

First of all, commercial investing is not as hard as people think. There seems to be a stigma surrounding commercial investing. People think it's the big glass 100 million dollar buildings downtown. Sure, it is, but it's not always that. There are many different kinds of commercial investing that you can get into. You can start small and work your way up. It's not as hard as people think. It's not as hard to get funded, to find deals, and sometimes not as much work, once you have the deals. 

Everyone that owns commercial properties are not like Donald Trump. They don't all have their own TV shows, aren't in the news, aren't in the casinos, own sports teams, and don't have the perfect woman on their arm. It's just real people that own most of the commercial properties out there. People like you and me. It's the guy next store. The guy that owns a few Dunkin Donuts stores. There are all types of commercial properties. 

Let's talk about the basics. First off, what is commercial investing? When it houses a business, it's a commercial investment. Business parks, where it's one level, and there are many different buildings, those are commercial rented condos or business offices. It consists of office buildings in office parks. There are also industrial parks which look like office parks, but they are mostly blue collar businesses like manufacturers, warehouses, and storage places. This also includes strip malls where there are Starbucks, Dunkin Donuts, UPS stores, etc. It's one building, one-story tall that's broken off into many different stores. Then we have our indoor malls where there are hundreds of stores inside, which include an anchor store, which is the main store, like a Decathlon or Target to get your attention. There are also office condos which house doctors, offices too. Also, we have warehouses, and even apartment houses. These are considered recession-proof properties. Assisted living facilities are commercial properties as well. Let's not forget about land. People are buying land and putting a cell tower or antennae on the land and making money. 

When you are out driving around, please pay attention to what you are seeing. Start noticing these commercial properties. Start thinking about commercial investing! Commercial investing adds a zero. You can do one deal a year in commercial investing and become a multi-millionaire. Some people have done one deal and it has changed their life, enabling them to retire. Don't let it intimidate you. It just has one more zero on the end! 

One of the things about commercial investing is that once you own the property, it's easier to maintain it because most of the time, you will let the pros handle it. You will have a management team to handle the payments, as well as attorneys and accountants handling the day to day work. There will be less day to day work once you own that commercial property, versus a residential property. Let's face it. If you own one piece of property with tenants in there, you know how much work that is. If you have a few properties, it's even more work dealing with tenants not paying, collections, disappearing tenants, and cleaning it out and finding new tenants. It's a lot of work! Virtually, you can pretty much have the pros do it for you. You can hire a management team, attorney, and accountant. Properties generally throw off enough monthly cash flow so that you can have it all taken care of for you. 

Anything you do with residential properties, you can do with commercial properties! You can buy and hold a house and rent it out, as well as a commercial property. You can wholesale it, get a contract on it, find someone to pay more, flip it, and step out of the deal. You never owned it. You get your finders' fee or spread, but instead of making $3,000 or $8,000, you can start making $50,000 to $200,000 just by flipping commercial deals. Just add another zero or two! Don't let it intimidate you! 

You can also lease commercial properties with the option to buy and make the big bucks! 

All of the same techniques you can use with houses, you can use with commercial properties. Note that one of the main differences is how you get the value. You can have two apartment buildings across the street from each other or in the same complex, and both apartment buildings can be identical. But, if one is 30% occupied and one is 70% occupied, and the first one is worth $700,000 and the next one worth 3 or 4 million, the only difference is how much it's occupied. How do you make big money fast in commercial investing? You find the one that is 30% occupied, find 5 or 6 tenants and bring it up to 70% occupied, and then you sell, get out of it, and make the spread. You can double or quadruple the cost or equity of commercial property by controlling it, filling it, and then getting out of it. It's a beautiful thing! 

Don't let commercial investing intimidate you. Add a couple of zero's to the profit! Consider opening your mind about commercial investing. Start thinking big! 

Article Source: https://EzineArticles.com/expert/Nick_Cifonie/237825

How Any Woman Can Become Rich

Did you know that there is no shortage of money? The problem is that you may not believe that you are worthy of having a lot of money. Anything you believe you can have, you will receive it. If someone is going to get rich, then why not YOU?

Many women are on the list of the rich and famous today. There is no secret on how to get money. You either inherit money or acquire it through some type of business (unfortunately, a lottery win is extremely unlikely). People's reasons for acquiring a lot of money are different from others. Some will apply money to their daily needs and wants to live a better life. Others may save their fortune and leave it to their children. Some use money to devote to a charitable cause to make the world a better place to live. 

If you want to create wealth, you must do something different. First, pay off all those credit cards and get out of debt. Second, you should make saving and investing your money a high priority in your life. To keep most of your money, you must make wise investments. You may start this process by seeking the advice from financial experts. 

When you use money to fulfill your purpose by starting a business to help others fulfill theirs, then you are doing good. When you are doing good with money, you can expect to draw more money to you. Once you start drawing money to you, then the sky is the limit. This means that you can get lots of money or as much as you want or need to fulfill your purpose. It is like standing under a water fall, "If you stand under a water fall, you are bound to get wet." The same is true with money, if you follow the principles of making and investing money, over a period of time, you are bound to get rich.

To the new and experienced entrepreneurs, getting help with your small business is very crucial to your success. Getting the right help will cause you to avoid costly mistakes, and it can also help you to save a lot of time, money and energy. You will need to get the right help to form the legal structure of the business, financial, management, procurement/certification, marketing, pricing products, preparing a business plan, and more. 

There are many successful business coaches and mentors that you can learn from, you just need to be clear on the areas you require support with. Look for recommendations within your local communities, FB groups, online sites such as Upwork and network with those around you. 

Always remember when you are starting out- to focus on the areas you are good at, get support in the areas you are not so great. You do not need to hire full time employees, look at pay on demand type services for booking keeping, accountancy, virtual assistants etc. I would also suggest you look for collaborations with others where you can exchange services which is a won-win for many people.

Article Source: https://EzineArticles.com/expert/Dr._Mary_E._Waters/99920

9 Diverse Types of Investment That Will Ensure Your Financial Future

I know almost all of the people in this world are concerned about their financial future. I don't know anyone who isn't. And if you're already a married man or woman, you will surely think of your kids who are going to college in the next few years. Some are also tired already of working. That's why most retire in an early age. I reckon they're just exhausted of their usual job. Who doesn't want to have an assurance that you will have a progressive financial life? No one, right? And I also know that you want to retire without brooding about your financial situation. 

Most people are like that. Unfortunately, there are also a lot of people who do not even know what to do with their hard-earned money. They do not know how to invest. They aren't aware that there are diverse types of investment. If all you know about saving your money is putting it in a piggy bank, hiding it somewhere in your cabinet, then you should really learn about the types of investment. There is actually 9 of it. The stocks, bonds, real estate, foreign currency, mutual funds/ETF's (Exchange Traded Funds), certificates of deposit, insurance and savings account are the types of investment that you could use. 

-Stocks are buying a portion of a company or corporation. You'll become a stockholder of that company. Thus, you have your own rights there. You can gain profit with this type of investment by receiving stock dividends from that corporation. Another way of gaining profit in this is to buy low-amount stocks and then sell it in a higher price. Stocks are also considered as Medium-risk investment. 

-On the other hand, investing in bonds is like loaning your money to the Government. Because of that, the risk in this type of investment is a lower risk investment. 

-Real estate investing is buying a property and then selling it in a higher price soon. Some real estate investors do not sell their property. They just use it for rental. That's why the flow of money to them is continuous but not that massive money like reselling it. In a buyer's market, it's better if you buy properties today and then re-sell it when the time changes into a seller's market. You can also buy REITS (Real Estate Investment Trusts) which is like buying property on the stock market as opposed to buying physical property.

 -Foreign currency or one of the types of investment in foreign exchange (FOREX) deals with currency trading market. It is always open and can be accessed through the use of internet. With this type of investment, you'll need to trade currency pairs for other currency pairs in the hope that you will trade for currency that has more value. 

-Regarding the mutual or Exchange Traded funds, when you invest in this, you include a variety of different investments, such as high-risk, long-term, short-term, stocks, Index funds, bonds, and the like. 

-Crypto currency is a high risk strategy. Bitcoin is the most known and a promising commodity. The upside is unknown and it is very speculative. Unless you are a high risk investor, ignore this type of asset class as the price is known to drop -80% in a short time and you need to be able to control your emotions, otherwise you will lose a lot of money.

-Certificates of Deposit, or CDs, are alike to savings accounts, except they pay better interest. The reason for the higher interest rate is simple: when you open a CD at your local financial institution, you agree to leave the money there for a set amount of time; generally, the shortest amount of time is six months, but you may agree to a term of one year, two years, or even five years. The longer you agree to keep the CD, the higher the interest rate. 

-Some people choose to use life insurance as an investment. Many policies have investment properties, and an insurance agent or financial advisor can help you choose which the right one is. 

-Savings accounts offer very little return. In fact, despite they are technically a form of investment, they barely qualify anymore. They are certainly a very good way to teach your kids the process of saving though. 

Those are just some of the diverse types of investment. 

You may also want to invest in a business. You can either invest in a company that's just starting up, an existing business that is for sale or creating your own business. 

3 Top Secrets Wealthy Women Use to Overcome Barriers to Creating Financial Freedom

When women reach a certain age, they begin to ask the important questions: "What will my retirement look like? Will I be able to maintain a specific lifestyle? How will money affect my sense of security?" Women typically are so immersed in the present day-to-day activities that they are too exhausted to think beyond that. No, not all women, but a good amount to make a difference. 

What are the 3 big 'No-No's' that women find themselves doing that not only create barriers to financial success but actually prevent it from happening all together? 

1. Not planning early enough. How many times have you said, 'I'll start that tomorrow" but tomorrow never came? 

Financial Quick-Start: Map out your plan when you have your first experience with money. It's not too late, and it's never too early. Babysitting money, birthday money - it doesn't matter - map out your plan on how you will relate, save, spend and value the money that comes in and out of your life. Mothers, teach your daughters to become familiar and comfortable with money at an early age. The important piece is to start - your plan may change or grow, but it should be a plan that grows with you. 

Put money and credit in your own name. Money and credit in your name is a sure way to boost your sense of security. Don't be hesitant to do this. Be proud and excited about the greatness of establishing your own accounts and credit ratings. Start small with bank accounts and credit, then expand into investments. 

Putting money in your own name and knowing it is yours creates a feeling of security and independence. These two feelings build the foundation critical to living a financially independent life. 

2. Closing the door to knowledge. Women don't speak up or ask questions when the financial planner comes around (if they have one). They fear looking uneducated or embarrassed about not knowing much about money. Or there's an attitude of "it'll take care of itself."  

Financial Quick-Start: Read. Learn. Observe. Listen. Hire a financial planner. Get in the game. Expose yourself to several opinions on financial matters. Pretend you know what you are doing and the more you do it, the more you will learn. There is no shame in grabbing the money-lion by the tail and taking charge. 

Learn what will make you money AND know what wastes your money. Read, read, and read again. There are great books out there for you to learn about money decisions, investing, income streams, and financial planning. Set a priority to grow your money enough to allow you to meet with a professional planner, accountant or someone you feel safe in asking questions and learning where to start. 

The main purpose of knowing everything about your money is for you to make informed and responsible money decisions that will help your financial future instead of hurting it. 

3. The "I-couldn't-handle-money-if-I-tried" thinking. This is thinking that will land you in the poor house. Actually, this is a defence mechanism designed to shield you from knowing the truth. The truth may be good, bad or ugly, but it's still the truth. And sometimes knowing the truth around your money can be scary. 

Financial Quick-Start: Grow your confidence. To grow money, you have to feel good about it. And to do that, you must get in touch with your money. When control goes up, worry goes down. When worry goes down, security goes up and so does confidence. This means balancing your finances on a regular basis, knowing your rental or mortgage agreement at all times, opening and paying all bills on time, and reading your quarterly retirement planning reports. 

You should expect more than the crumbs falling off the table. But, gosh, you say, I have too many bills. Well, make a budget (aka spending plan) and stick to it. Sacrifice whatever is expendable (eating out, movie tickets, that cool smelling bottle of perfume) so you can get yourself into a power position with your money. 

Decide what you can pay yourself each month then do it - no matter what! Start with 10% after taxes but no less than 5%. Before you know it, the dollars you are paying to yourself will start to add up! 

The main purpose of paying yourself first is so you learn that you are more important and deserving than anything you could buy.

Article Source: https://EzineArticles.com/expert/Karen_Keller,_Ph.D/581146

Are You Afraid To Invest In Yourself?

I am sure that you have heard this phrase: "Your business can only grow to the extent that you grow." If you are playing small, hiding out, procrastinating, doing it all yourself, undercharging, under-earning or over-delivering, then you are getting in your own way. Without a doubt, each of these actions or habits will stall your business growth, repel ideal clients and sabotage your success.

As an Angel Investor, I have worked with many business owners for years, and the number one mistake I see such entrepreneurs make these days is failing to invest in themselves at a high level. This failure keeps them-and their businesses-stuck, for the quickest way I know to help alleviate self-sabotaging behaviors and quickly get back on track is by investing in and working with a mentor. We can help you identify the behaviors that are holding you back and show you how to move forward. We can work with you to create a customised plan that is appropriate for you and your business. 

Here are 3 advantages to investing in yourself at a high level: 

1. You will Make a Higher Commitment to Yourself: When you pay, you pay attention and therefore if you invest in a high-level mentor, you'll be more committed to doing what is required. Because you're paying for their services, you'll be more likely to follow through with their recommendations. 

2. Your Energy Is More Focused: Because you're spending time (and money) to work on your business strategies with someone else, you'll become much more focused on achieving your desired results. You'll allocate time, clear out your diary, making sure to listen to, and follow, your mentor's expert guidance. This often results in attracting more ideal clients who are extremely committed and invested in their business success. 

3. You'll Be More Decisive: Since you'll be motivated to get a solid return on your investment, you'll finally get out of analysis paralysis and take action. 

A quick exercise: Keeping in mind your end goals of making more money and attracting your ideal clients into your business, take out a note pad and pen and list all of the areas in your business where you are not taking action AND/OR the areas in which you are just confused about what the next steps should be. Once you've completed this list, circle the top 3 things that need to be done to build your business now.

Business Start Up Ideas For Women

Why Are Women Starting Businesses who are fabulous fifties and above? 

A lot of older workers are finding the job market very difficult these days. Instead of staying out of work or accepting lower pay, many are deciding that they may as well start their own business. Women over 50, in particular, are particularly attracted to the idea of being their own boss. 

• These women say they want more flexibility, and having a business allows them to set their own schedule
• The women want more control over their financial lives
• The have an idea/vision, and being self employed gives them more job satisfaction

Let me mention that being self employed is not for everybody. Even though you may have more control over your work hours, you will still have to have determination and discipline to actually make your business prosper. Depending on whether you have an Entrepreneurial spirit or otherwise, certain individuals are much better off working for somebody else. 

I will say that you do not have to start out with rocket scientist skills or a lot of money to invest. In addition, you can start many businesses part time while you still attend to other duties or a "day job". 

What Type Of Business Should Women Start? 

The type of business you will start depends upon a few things. Your energy level, the way you like to work, and your own skills and interests are very important considerations. I tried to filter down these business ideas to things that would not require a lot of capital investment to start, and that could be started on a part time basis. 

Self-service laundry or Vending Machine Business

Most of the experienced owners say that purchasing a good, established route is the simplest way to get started. You will have to do your due diligence to make sure the route is really productive. But this relieves you of the chore of having to find locations to install equipment.

You will have to be responsible for collecting money, keeping the machines stocked, and making sure the machines are in good repair. You either have to do these things yourself, or you have to hire somebody to perform some of the functions. 

This is a good solution for people who like to be active, and who do not want to get stuck in an office all of the time. You will probably need to start out by doing a lot of the actual work yourself. However, if you expand your business, you may hire employees to do some of the work for you. 

Boutique Bakeries are in! 

Small, boutique bakeries, like cupcake or artisan bakeries, are very popular today. If you love to bake, this can be a good way to turn your specialty into a business. 

Depending on where you live, you may require a commercial kitchen. However, you may solve this problem by leasing space from a church or other organisation that does not use their own kitchen during certain hours. 

You can concentrate on perfecting your treats, marketing, and expanding your business. If your business grows, you may consider getting your own commercial kitchen space later. 

Book Keeping/Payroll/Accounting Services

Businesses need to keep track of their finances in good times and bad. You can find a lot of online classes, or you can draw upon your past experiences. This is one business you can perform out of your own home, or in client offices. 

Antique or thrift shop owner

If you’re crafty or artistic there’s a good chance you’ve considered how you could turn that skill into some extra cash, or maybe even a whole business.

Online shops like Etsy allow you to easily turn your crafting hobby into a stream of extra income.

Online e-commerce platforms are created specifically for helping you list your business and products online. Some of the most popular ones include Shopify and Squarespace. If you’re looking for something more simple you could also try selling on Facebook using Facebook’s business pages as your online shop.

What to consider before starting your own business

Even if you feel like you’re ready to start your own business, there are many factors to consider when choosing the type of small business you want to start. You might not be sure where to start, so here are some of the top considerations you should make before deciding on a business.

Will this be your main source of income, or in addition to the income you already make?

What will the business startup costs be? How much do you have to invest in the business as of now, will you need further financing and if so, where will it come from?

How much time do you want to spend on your business? This relates to the first one, is this your main job or a side gig?

Do you want to use skills you already have and monetise them? Or do you want to learn new skills entirely for this new business?

Are You Ready To Be Self Employed? 

Spend some time researching different business ideas. Try to find ideas that will not require a huge initial investment or a very long work week. As your business grows, you may decide to expand. People who start with a small and manageable business idea tend to do well. 

Women, Wealth and Marketing

The traditional sources of wealth for women have historically been through inheritance from our parents or our deceased husbands, or from financial gain from the divorce of a wealthy husband. Whilst these methods for achieving wealth are still evident, an increasing number of women have created our own wealth through either our job or the ownership of a business, which is independent of our husband and or family. 

Whilst men's major motivation for starting a business is financial gain, women tend to cite flexibility, freedom (from corporate structures and politics), being more present with our Children and financial gain as the main reasons for setting up on our own. 

Motivations for amassing and protecting wealth are almost identical for men and women. Financial security in retirement is seen as the main priority followed by a better personal lifestyle and enjoyment of the finer things in life. In other words the goals appear to be neatly divided between spending on the present and saving for the future. More intangible factors such as status and the sheer enjoyment of making money, come much further down the list. 

Women want wealth to enjoy a better lifestyle. We spend our leisure time and disposable income on holidays and home improvements, just like men. The only significant difference in spending is that men are likely to spend a greater proportion of their disposable income on cars and gadgets whilst women focus on clothes, jewellery, bags and shoes ' so far the cliché holds true. 

However, women do invest quite differently to men. We are far less likely to take risks with our money, whether within our personal finance and/or business affairs. Research suggests that more men than women invest in financial products that are considered to be at the riskier end of the financial spectrum such as hedge funds, private equity, derivates and Crypto (including the use of leverage across these investment classes). 

Women tend to take longer to come to a decision about what to invest in and are less likely to go to a third party for advice than men. Men are more likely to consult tax specialists, accountants, private banks, brokers and the media. The only source of advice that is more widely used by women than men is the high street bank. 

This does not mean they are less successful or able investors than men. It's just not clear to us about where to get started or who to trust, which is why we created Femvestors Global.

Wealthy men are more likely to use personal trainers, chauffeurs, chefs, alternative health practitioners, property search agencies, lawyers and private banks than women. However, wealthy women are more likely to use what may be considered 'lifestyle' services such as personal concierge and shopping services, life coaches, personal trainers, personal stylists, bodyguards and private doctors. Women tend to invest to reach a particular goal, for instance, an education fund, retirement, a major holiday.

Once the investment goal has been reached, women are more likely to 'protect' the fund rather than put it at risk through further investment. So what are the conclusions that can be drawn about marketing financial products and services to high net worth women: 

1. Whilst products do not have to be marketed as a 'women only' product, they do need to provide clear, comprehensive information from which we can make an informed choice. As many of the women will be making investment choices without the benefit of advice from independent advisors or tax specialists, everything produced must be jargon free and in plain English. Provide well researched information and support when required. 

2. Building a relationship through education. Providing information to women on financial matters that may concern us, in regards to age or lifestyle. 

3. Develop products 'themed' around issues such as 'wedding', 'education fund', 'retirement' . Encouraging us to continually invest for our future selves

4. Women do hire personal trainers and are prepared to pay for the personal touch. A 'financial coach' may be the incentive a woman needs to invest in a particular product or organisation

Inspiration from Article Source: https://EzineArticles.com/expert/Pam_Kennett/31862

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

Growing Your Business - Why Separating Business and Personal Finances is Good

 This article is not all about finances. Well, it's partially about finances. More importantly, it's about how to grow your business. Growing your business doesn't just happen by magic. There's no business growth fairy that takes away a balance sheet and leaves a bigger business under your pillow. It takes a consistent, carefully managed investment to create your own success.

 And that investment starts with something that you might not have considered: Separating your business and personal finances. Surprised? 

Here are the reasons. First, you'll want to separate your business and personal finances for tax purposes. If you keep them combined, you might not be eligible for certain deductions, but if you separate them, you may be entitled to deduct expenses for your home office and mileage allowance. Likewise, you may be responsible for paying certain taxes on your business that do not apply to your personal income. Separating your finances is the only way to ensure that you properly follow all tax laws and receive all advantages to which you are entitled by law. That can grow your business by clarifying your paperwork and possibly making more money available (because of more deductions) which you can reinvest in your business. 

Another important reason for separating your finances is to get a loan or a grant so you can invest in your business. Separating your finances helps to establish a paper trail and helps you to create financial reports that demonstrate the business' performance. If your finances are separated it will be much easier to determine which income and expenses belong to the business itself. 

Third, separating your finances can help you decide how best to grow and develop the business as well. You will be able to see the areas in which the business excels as well as those areas in which it needs some extra help. You can generate targeted, accurate reports and financial statements that show at a glance how the business performs in various areas. 

 How Can I Separate My Business and Personal Finances? 

The easiest way to separate your business and personal finances is to open a business bank account. If you use credit to make business-related purchases, apply for a card in the name of the business. Have all payments made to the business account, and use only those funds and the business credit card to make purchases. 

How Do I Get Paid? 

You have multiple options for paying yourself. Some business owners find it best to write themselves a set paycheck every week. If you are confident that the business will retain enough funds to pay your salary each time, this will streamline the process and make it easier to accurately pay your personal income taxes.

 However, if your business is new or unstable, you may find it better to pass funds through the business account to your personal account. You might decide to retain just enough money in the business account to pay for expenses, and transfer everything that is left into your personal account. This is an ideal solution for those who have many personal expenses but few business expenses and earn wildly different sums on each contract. 

Setting Up and Maintaining Bookkeeping and Accounting 

Many business owners find themselves confused and overwhelmed by the paperwork that is involved in maintaining separate accounts. 

Check out Invoice Ninja, the leading free open-source online invoicing app for freelancers and businesses.

Also consider hiring outside help. A Virtual Assistant company can set up and maintain your bookkeeping and accounting. Your VA can even handle payroll, writing your paycheck each week. You can maintain as much or as little control over the process as you desire. You can hire the VA for a set number of hours per week or per month, or simply retain his or her services on a per-project basis.

My post last week recommended "Successful Female Entrepreneurs" as a source, alternatively, you can also find VA's from websites such as Fiverr and Upwork.

Ultimately, separating your business and personal finances can seem like a complicated task in the short term but in the long term it is an effective way to grow your business. 

 Article Source: https://EzineArticles.com/expert/Heather_Villa/388875