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Real Estate Investing and its Basics

Have you already tried real estate investing? Many people have tried it and some succeeded but others failed. The reason why many investors fail is because they do not know the basics. Real estate investing can be very profitable but only to those who are willing to give their best efforts, time, and money.

You need to ensure that all the deals are profitable and by knowing the basics, you will definitely reap significant profits.

It’s quite ordinary to encounter challenges as your start investing in real estate. Even if there are pitfalls, you should not be discouraged to pursue your investments. You just need to ensure that you learn from your mistakes because this is one way of learning from your experiences. As years pass, you can already master the closing of profitable deals and walking away from bad ones.

If you want to be successful in the real estate business, you need to know some of the basics. You can use these things to create a profitable investment portfolio.

1. Learn how to find the right seller at the right place and time.

2. You should learn the qualities of a good negotiator so that you can close good investment deals.

3. When looking into various real estate deals, you should be able to decide quickly whether you will proceed or walk away. Try to accurately analyze the investment deals and then make an informed decision.

4. You need to be familiar with the various areas of the real estate business. Know the different terms like wrap mortgages, cash sales, lease options, short sales, and many other terminologies. This is one way to understand the language used by your fellow investors.

5. Know the concept and meaning of real estate investment, as well as the benefits and financial risks.

After you’ve learned about the basics, it’s up to you to decide whether you will enter the real estate business or not. If you simply put your best effort to it, you can earn potential rewards. Don’t be surprised if you have little confidence when you enter the real estate market because as you gain experience, your confidence will grow. It will surely help if you’re able to close a few good deals after you’ve began investing. But you don’t need to be satisfied with the deals you’ve closed. You can still close better deals in the future.

Develop your skills further by reading more real estate info resources. Learning is a continuous process. As you become more experienced and successful, your investment portfolio will also grow.

Have a game plan and look for hidden opportunities. You need to study the current market and the buying trends. Once you find the opportunities, grab them and you will reap huge money.

Real estate investing is for everyone but it entails hard work. Many people are already choosing this profitable career to ensure their financial stability in the future. Again, be ready for the possible pitfalls and challenges that you will encounter in the first few years. This is natural but you need to learn how to face them. By being more informed and knowledgeable, you can make the best decisions for the improvement of your portfolio. Good luck with your investments and continue in gathering helpful information sources.

You will succeed if you’re willing to work hard and if you have enough capital investment.


Gold Bullion – Buy Gold Bars for the Perfect Investment

Gold bullion may well be the perfect investment at the moment. Demand for gold far outstrips supply and the way things are looking, it’s going to continue that way for a long time to come. Acquiring gold bars is the perfect way to hedge against the uncertainty of the future and to bulletproof your portfolio.

The value of any unit of wealth depends on the confidence people have in it. Unlike many paper currencies, people’s confidence in gold is high and set to increase which makes it the ideal asset to acquire and hold.

Meanwhile the supply of gold is limited and the cost of extraction is getting higher. No new cheap supplies are likely to appear anytime soon.

To better understand the world gold situation, let’s look at the world demand for gold and see who relies on the yellow metal.

The fact is that gold is not just a valuable metal to be bought and kept in vaults or crafted into jewelry. Its special properties make it a key component in many medical and technological processes and systems. Its growing importance in the latter means a continuing demand for the future.

Firstly, we’ll look at gold kept for investment purposes. Gold’s beauty and scarcity have long made it the perfect medium of exchange. Gold is the best metal for this purpose because of its high value, durability, portability and easy divisibility.

When paper money was first introduced it was backed with gold. In fact until the early 1970s, the United States was on the ‘gold standard’ and promised to exchange gold for dollars at a fixed rate. Many people blame the world’s current economic woes on the ending of this system. Nonetheless, gold remains a major asset for most of the world’s governments.

Thus gold bullion is a key component of the assets of all the world’s major central banks. What’s interesting is that the state banks of the newly emerging super economies – India and China – having been adding to their stock of the yellow metal recently.

Other than central banks, investment and commercial banks also hold large supplies of gold both as their own assets and on behalf of clients.

Another use for gold is in the creation of gold coins. Issued in specific weights, these are popular ways for people to buy and hold small volumes of gold for investment. Gold coins are also issued for commemorative purposes. This gives the item both a collectable value and an asset value for gold itself.

Gold’s malleability, tarnish resistance and ductile qualities, together with its beauty and luster have long made it the metal of choice for the crafting of the finest jewelry and this is something that will only continue despite the popularity of platinum. After all, what would a wedding be without a gold ring?

Gold is an important material for use in medicine. The use of gold fillings, permanent bridges and crowns in dentistry is long established but nowadays, gold is used for an array of essential medical instruments, particularly in the use of lasers and medical electronics.

Industrially, the main use for gold is in electronics. This is because it’s such an efficient conductor of electricity and resistant to corrosion and tarnishing. Gold is perfect for use in connectors, switch and relay contacts, soldered joints, connecting wires and connection strips.

Other key industrial uses include computers and catalytic converters. Gold is needed to build everything from aircraft to space craft and cars.

The fact is that gold has so many uses, there will always be demand for it. Most of the uses of gold today have only been developed in the last few decades suggesting that many more uses are on the way in line with technological progress. Meanwhile, according to estimates made in 2005, the cost of extracting one ounce of gold stood at over $400.

When looking to acquire gold for investment rather than sentimental reasons, you should buy gold bars and gold bullion.


Why Real Estate Investors Have The Greatest Job In The World

Many are encouraged to get into real estate investing today. In fact, some have even left their regular day jobs so they could go full time with real estate. Yes, real estate investing is one of the best ways to earn a living today. Despite the global crises that our economy faces, the industry continues to prove to be very profitable. If you are planning of real estate investing a full time job, below are some of the few things that you can look forward to:

  • You can run errands during the day when all the kids have gone to school and no one is left home to attend to.
  • You do not need to leave work just because you want to make appointments with your dentists or doctors.
  • You can shower any time you want to. You can start making money in front of your computer even in your pajamas.
  • You can take a vacation anytime you want to. Gone are the days when you had to file for a leave. As long as you have your laptop and mobile phone with you, you can run your business wherever you are.
  • Your perception about money becomes “warped.” You can spend lavishly on dinner or on a vacation without thinking twice.
  • You get to handle your own schedule. You can do what you want to do whenever you want to.
  • You have time for a lot of things which you can’t do when you’re on a regular day job. You can take your dog on a walk in the woods anytime you want to.
  • You can take a nap everyday!
  • You can get an assistant and let her run your business for you. As long as you keep everything properly and clearly delegated, you do not have to worry about getting your business messed up even if you go on vacation.
  • You are your own boss. You do not have to worry about conforming to office politics which you do not like in the first place. Because you are your own boss, you get to make 100% of your decisions.
  • A single deal can make you pay a new car.

Real estate investing can be very profitable and anybody is entitled to experience the benefits and the perks mentioned above.


Real Estate Investing for the Brave Investor

If you say that you want to try real estate investing amid the country’s current financial situation, some people will probably tell you that you have just signed your own death sentence. Indeed, investing in real estate while many companies are placing their workers on the chopping board is considered a financial suicide by most people. However, what these “blissfully unaware” folks don’t know is that now is the best time to make money in the real estate business.

Believe it or not, now is a great time to buy investment properties. Here are the reasons why investing in real estate are a great way to make money amid these trying times:

  • According to market analysts and experts, now is the best time to buy investment properties as real estate prices are generally low because of the recent housing bubble and the ongoing economic crisis. If you engage in real estate investing today, you will be able to purchase as many investment properties as possible without straining your finances.
  • Because of the country’s current financial troubles, there has been an increase in the number of motivated home sellers. As we all know, these home sellers can be a great source of affordable investment properties since they are willing to sell their houses at prices lower than the prevailing market price as long as you will help them get rid of their unwanted homes quickly.
  • There is also an increase in the number of foreclosures and real estate owned properties or REOs. Because banks and other lending companies are having trouble accommodating all these properties, they are selling REOs at rock-bottom prices just to clear their inventories. This gives real estate investors the perfect opportunity to obtain inexpensive houses that they can fix and flip.
  • By investing in real estate today, people can earn bigger capital gain once the United States fully recovers from the economic recession. Capital gain is the profit earned from investments that exceeds a capital asset’s purchase price. So if you purchase an investment property today at a very low price, you might be able to earn double the amount of money you spent on buying that house or more.

Real estate investing is indeed a great way to earn big profits despite the economic crisis. You should remember, however, that buying investment properties is not a “get rich quick” strategy. It requires hard work and dedication on your part.

Learn The Basics Of How To Invest In The Stock Market

There are many people who are interested in growing their income by using the stock market. However, making consistent, profitable trades in the stock market is not as simple as you’d think. Those who have no basic expertise of the stock market will want to research the inner workings of the stock market before they make any major moves. In the following article, you will learn some critical basics a person must know if they want to properly invest in the stock market.

First and foremost, one must know what a stock is before they go investing in the stock market. Basically, stocks are individual pieces of ownership in a company. When you buy a stock, you become a shareholder of a company. This means if you hold the entire supply of a company’s stocks, you own the entire company. Essentially, the value of your shares go up when the stock price rises. This usually happens when a company is profitable. However, if the share price goes down (the opposite side of the coin) you may end up breaking even, or worse, ending up in the red. Of course, you never officially make or lose it until you sell your stock.

An important question of many newbies is how much they should begin to personally invest in the stock market. The sum of cash that a person invests in the stock market depends on how much stock that person wants to buy and what the price of each stock is. Before they can invest in the stock market, a person will need at least three hundred dollars and an account with an online brokerage company. Once a person has an online account, they can ask for quotes on the stock(s) of their choice. They should receive an ask price, which will be the lowest cost for the stock that the person inquired about. They will also receive a bid price, which will be the highest cost that a person could sell that stock for.

Many people also ask about what stocks they should think about buying. Since there are over 8,000 stocks to choose from and invest in, it can be overwhelming to invest in the stock market, as a beginner. In the beginning, the best idea is to get advice from financial experts. A broker is the best place to start, as the fact that you have an account with a brokerage will get you easy access to one. Newspapers, magazines, and television are great places to find experts to listen to, too. If your employer offers a retirement account, such as a 401(k) or 403(b), you should take advantage of that program.. You can learn from that investing process, too. People who are curious about investing in the stock market should also look for investing in stocks that are performing well and that have been doing well for sometime. It is imperative to have a clear idea of what financial goal(s) you want to accomplish, and to research how to get there before you invest in the stock market.

Different Types of Stock

The different types of stock are what confuse most first time investors. That confusion causes people to turn away from the stock market altogether, or to make unwise investments. If you are going to play the stock market, you must know what types of stock are available and what it all means!

Common Stock is a term that you will hear quite often. Anyone can purchase common stock, regardless of age, income, age, or financial standing. Common stock is essentially part ownership in the business you are investing in. As the company grows and earns money, the value of your stock rises. On the other hand, if the company does poorly or goes bankrupt, the value of your stock falls. Common stock holders do not participate in the day to day operations of a business, but they do have the power to elect the board of directors.

Along with common stock, there are also different classes of stock. The different classes of stock in one company are often called Class A and Class B. The first class, class A, essentially gives the stock owner more votes per share of stock than the owners of class B stock. The ability to create different classes of stock in a corporation has existed since 1987. Many investors avoid stock that has more than one class, and stocks that have more than one class are not called common stock.

The most upscale type of stock is of course Preferred Stock. Preferred stock isn’t exactly a stock. It is a mix of a stock and a bond. The owner’s of preferred stock can lay claim to the assets of the company in the case of bankruptcy, and preferred stock holders get the proceeds of the profits from a company before the common stock owners. If you think that you may prefer this preferred stock, be aware that the company typically has the right to buy the stock back from the stock owner and stop paying dividends.

How to Evaluate Stocks Picks for Better Prospects?

Internet is filled with stock picks websites. They are powerful investing tools. They can help you improve your investments results if you know how to use them. If you are well informed and want to add some stock picks to your investments portfolio, here are a few suggestions:

First, analyze all stock picks you want to trade

In the name of hygienic wisdom, you should clean fruits you pick from the farm before eating them. Similarly, in the name of common sense  you should evaluate stocks you get from stock picks sites before trading them. The problem is to find a better prospect from the daily stock picks is difficult. It requires time, discipline and knowledge of stock market.

Second, use online financial tools as your advisor’s second opinion

Like using a second opinion of a medical specialist to assess your doctor’s diagnosis, you can use online financial tools to evaluate stock picks you get. You can narrow down the list of stock picks for better prospects by using the free tools on Yahoo! Finance and MSN Money or tips financial newspapers. For example, you can decide to trade or disregard any stock picks that passed or failed your trading strategies or your screening criteria on MSN or Yahoo – such as analysts’ consensus or MSN stockscouter.

Third, filter out the stocks picks with your common sense and tips from investing magazines

In the same manner, you can filter out the stock recommendations with your common sense or tips from financial TV-show or investing magazines.  For instance, if a company Alpha was among the picks you want to buy but you learned from financial headlines that Alpha will shortly fill for bankruptcy and that the CEO, Directors, or Accountants, who are the insiders of Alpha, are selling their shares before the bankruptcy deadline. If you know when insiders are dumping their stocks, will you buy the Alpha’s shares?  You will hesitate to buy Alpha. Your investing common sense and knowledge of the stock markets will tell you that it is not the right time to buy.

As you can see, it is possible to profit from the advices of the stock picks websites. You need only to be disciplined and well informed. Above all, you have to evaluate systematically their stocks picks before buying.

Veblen Goods Investment

As the world’s economy rights itself in fits and starts there is one group of products that will likely outperform the rest. Veblen goods are luxury items which sell better the higher they are priced. The Veblen goods effect is named for the economist, Thorstein Veblen, who talked about how conspicuous consumption and status seeking seem to fly in the face of normal economics. This Chivas Regal effect has the tendency to demonstrate itself with every economic recovery as first successful few buy Veblen goods to show off. Investment in the makers of luxury goods, Veblen goods, can be an excellent long term investment.

There is still a lot of concern about how fast the recession will end and, in some quarters, if it will. However, for long term investment it is always time to look to money makers that will last. Over the long term investing in the Chivas Regal effect can be very successful. A common comment of the wealthy is that if you don’t enjoy your wealth what is the point of having it? Thus the wealthy, especially the newly wealthy, will pay ten times as much for a bottle of wine that is perhaps twice as good as what they drank before they struck it rich.

Conspicuous consumption touches on exotic cars, tropical islands and consumer items such as a bottle Louis Roederer champagne that sells for nearly $400 a bottle because it comes in a clear bottle. (A 19th century Russian Czar was afraid of receiving a bomb hidden in his green champagne bottle.) Today rock stars and other newly rich love to engage in conspicuous consumption by drinking their champagne from a distinctive, clear, bottle. The Veblen effect is alive and well in France’s champagne district.

The Chivas Regal effect is another name for conspicuous consumption. The Strathisla Single Malt Scotch Whisky Distillery in Scotland, the makers of Chivas Regal, has been doing well since the 18th century, proof that catering to conspicuous consumption pays.

It should be noted that many of the companies that cater to the rich make very nice products. However, the fact of the matter is that the Veblen effect has to do with women wanting their friends, and the competition, to see the Gucci label more than wanting to have a beautiful, serviceable purse.

Gucci, Chanel, Ferrari, Chateau Latour Gran Reserve (for $1,000 a restaurant bottle), Mac instead of a PC, or a Blackberry when you don’t really need one fit the conspicuous consumption mode. In fact, one dones not need to look only at the super rich to see the Veblen effect. At ever level of wealth people tend to want to show off their success and, implied, importance.

As the economy mends itself in fits and starts look at luxury goods where selling to a select group at higher prices will let you make money on the Chivas Regal effect. Well managed companies with a great eye for style and fashion often benefit from the Veblen effect as people not only want a good product but want the world to see that they have “arrived.” Conspicuous consumption has been with us since the beginning and will continue to make money for the long term investor who invests in folks catering to conspicuous consumption instead of engaging in conspicuous consumption.

Interest Rate Rise

As the economy mends itself we may see a long overdue rise in interest rates. If you have been holding onto US bonds you may see their value drop with the rise in interest rates. You also may not be ready to commit your funds to more risky investments. Utility stocks have always been secure investments which yield dividends which are usually competitive with current interest rates.

The first goal of long term investment is not to lose your capital. The second goal is to keep up with inflation. The third goal is to increase your capital over the rate of inflation.

Thus, holding US bonds during a rise in interest rates will decrease your capital, assuming that you are not planning on holding the bonds to maturity. Hold US bonds at a lower interest rate and you may well lose ground to inflation. And, hold US bonds, worthless, paying a lower interest rate, and you will not increase your capital over the rate of inflation.

Today many are suggesting that one move out of US bonds into utility stocks, or various preferred dividend paying stocks. The rational is that as the economy improves the stock’s value will go up and the dividends of these companies, such as utility stocks, will reflect the current interest rate.

We have talked before about green investments the dividends of cheaper, more efficient energy production. Holding utility stocks is one way that one might invest in a cheaper, greener, more efficient future – with your utility stock appreciating in value and paying better dividends along the way.

An interest rate rise is never an assured thing. However, the Europeans and Asians are complaining about low US interest rates and a lower priced US dollar help the US in international trade. It is unlikely, after decades of currency manipulation by Japan, Taiwan, and, now, China, that the US will bend to demands not it its own interest. However, there is concern about a low interest rates could lead to inflation and a further decrease in the dollar’s value to the detriment of the USA. Many believe that an interest rate rise is a matter of when and not if.

The stock market has typically been where one wants a portion of ones money to beat inflation. However, the baby boom segment of society is getting to where conservative investments to protect capital are more important than growth stocks. Thus utility stocks, of US bonds once interest rates rise, are a wise move. Also, many are still hurting from the market collapse of a year ago and the near loss, for many, of a lifetime of saving and investing.

It would seem that last year’s lesson for aggressive investors has created more US bond buyers and, now, owners of utility stocks. Some talk about a new financial conservatism for America. In fact, there is evidence that the financial recovery will be a “W” shape as much of America’s money is now going into investing and saving and not into consumer spending.

Very Long Term Investment in the Green Revolution

Norman Borlaug passed away this last year. The man many call the father of the “Green Revolution” is credited with starting and leading the “Green Revolution” that allowed the world’s food production to keep up with its population growth in the later half of the 20th century. Borlaug was an Iowa boy who came to the University of Minnesota in 1933 to learn and to wrestle. Attending a lecture by the late Professor Charles Stakman, Borlaug learned how plant breeding techniques could prevent plant disease. It changed Borlaug’s life and saved those of billions world wide. Long term investment in new plants, the continuing green revolution can be profitable and help in feeding the world’s hungry.

Norman Borlaug accepted work at an agricultural station in Mexico experimenting in different strains of wheat. At the time Mexico imported half of its wheat and after twenty years exported wheat. Borlaug is credited with developing breeding techniques in an number of plant varieties that ended up multiplying worldwide cereal production. The long term investment by the Rockefeller and Ford Foundations fostered the green revolution and feeding the world through the work or Norman Borlaug.

Today’s word of plant genetics is every so much more complicated with the ability to insert new genes into the genetic code of wheat, corn, soybeans, and rice. Developing more and better ways of feeding the world happens at field stations and in the lab at companies like Monsanto. Interestingly, many of the companies involved in the ongoing green revolution have not seen their stocks rise with the this year’s market recovery.

Farmers are short of cash and are not paying for more expensive, new varieties of seed. The economic crunch is also reducing the amount of pesticide and herbicide that many are using. Since many companies like Monsanto are in the seed business and in the business of controlling plant infestations their cash flow is down.

Nevertheless the world will find means to feed its hungry. Discoveries made today will result in the world producing new and more nutritious foods for less. Long term investment in the companies pursuing research in plant genetics, the ongoing green revolution, will pay over time.

The ongoing controversy about using genetically manipulated seeds will likely continue and will in all likelihood reduce stock prices of companies whose business is feeding the world. Thoughtful long term investment in companies with a strong research base in the green revolution will not only help in feeding the world but help in sending quarterly dividends to your mailbox for decades to come.

An old farmers’ saying is that “they aren’t making any more land.” This is true. However, new plant varieties that more drought resistant or resistant to salinity increase the land that can be planted. Long term investment in those making those seeds will pay dividends, virtually forever.

If you are thinking of very long term investment think of energy, clean water, and think of food. Think of the green revolution and feeding the world.


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