Janet Giacoma
Developing and initiating efficient investment strategies enables you to create the lifestyle and security you desire for you and your family. By increasing your financial education and forging a path to strategic wealth management, you can quickly turn your financial life around and start living life.
However, there are several common pitfalls to investing that both men and women investors should avoid. Below I have listed a few of these pitfalls.
What To Avoid
Pitfall #1: Belief in the 1-size-for-all investment strategy
In other words, your investment strategies must be custom-fitted for you and your particular situation. You need to diversify appropriately for your needs and employ techniques for investing that compliment your abilities and preferences. The business or other investment that you choose should "fit" you. Your decision needs to compliment your "tolerance level", not your neighbors or even your advisors.
Pitfall #2: Risking without necessity
You are not required by any means to risk your investment capital unnecessarily. There are safe investment strategies to engage in - ones that are all but guaranteed to show you positive returns. If you are thinking like a lottery player, chances are that you will not prosper. Especially in today's market it's important to think things through.
Pitfall #3: Procrastination
You need to position yourself and then allow time for your investment strategy to pay off. Creating incomes streams and prospering from strategic wealth management techniques are not an overnight event. Get in early and then persistently work your investing plan to fruition. Don't be the one saying "coulda, shoulda, woulda" - follow your intuition after you've completed your due diligence.
Pitfall #4: Emotional or spontaneous investing
You should approach your investment strategies with logic, not emotion. Consider a given opportunity and establish its legitimacy. Then, when you decide to invest in the opportunity, give it your full attention and be consistent. Remain committed to your investment strategy for the long run. If it fails to produce after you have given your best efforts for a respectable time frame, then make a readjustment and move on.
When you have researched and decided on a particular investment strategy, then dedicate yourself to its development. If your financial education is limited, find a way to educate yourself. Do not rely solely on what others tell you. These should be viewed as recommendations, but YOU want to make the final decisions as it relates to your financial security. There are traditional investment vehicles, as well as those that are under most people's radar, or network opportunities. Look for alternatives and broaden your horizon.
Remember to take control of your destiny or someone else will!
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Janet Giacoma is a business coach, marketer, and online business owner who assists serious entrepreneurs in building a profitable online business with multiple income streams. To contact Janet visit: http://www.TheAbundantAlliance.com and http://www.TheAbundantAllianceBlog.com
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Showing posts with label Investment. Show all posts
Showing posts with label Investment. Show all posts
13.8.09
5.8.09
7 Reasons Why You Should Buy a Luxury Investment Property
Volker Weiss
Investment properties are typically looked at as either flips or rentals at the lower end of the financial spectrum. An investor will buy something relatively inexpensively, fix it up and then sell it if the market is right, or rent it out. However, the luxury rental market can be quite lucrative and is often overlooked by many investors. A luxury property can be worth its weight in gold if bought at the right price and in the right location. So, if you're contemplating investing in real estate, or expanding your existing real estate portfolio shouldn't you consider buying a luxury home or condominium?
Luxury holds different meanings for different buyers. It may translate into a home with its own stretch of beach. Or a top-of-the-line condo along the fairway of one of the best golf courses in the world. Perhaps your idea of luxury is a secluded retreat where you can get away from it all. Obviously, there is no set definition for luxury to each and every investor, but there is certainly a difference in terms of location, price and features.
In any given area, the luxury properties will be on the high end of the sales price range. In some small town in the middle of North America a luxury home with all the bells and whistles may cost $400,000. But head on over to the Wailea area on the island of Maui where condominiums are easily found in the million dollar range and luxury properties, especially single family homes, will be well above that million dollar mark.
Of course, it's exciting to purchase a luxury home as an investment property. Doesn't everyone want to add high end homes to their real estate portfolio? But there are more explanations why buying a luxury investment property is a smart move, other than just the "feel good" aspect. Here are seven reasons why a luxury real estate purchase can work in your favor:
1 - Right now is the perfect time for an investor to buy! Real estate is a cyclical industry. Prices go up and prices go down. The market gets hot and properties are selling left and right. And then the market cools. That's just the nature of real estate. And currently, prices are extremely favorable to buyers. Not only are prices reasonable, but many sellers are very motivated and are pricing their homes to sell!
2 - Luxury real estate is a great long-term investment...it does not depreciate to the extent that other markets may. Yes, the market is favorable to buyers at this moment, but over the long run, you won't see the ugly drop in your investment. Meaning, you won't see your property depreciate by 50% or worse. Luxury properties tend to hold their value fairly well.
3 - Luxury properties are flexible! You can purchase it as your upscale getaway and then turn around and rent it out to travelers by the week or by the month. You can even rent it out annually until you plan to retire to your luxury property paradise. But the flexibility is there. Many investors are able to make it work financially buy renting luxury property out on short-term agreements with travelers or locals and then still take advantage of the property themselves.
4 - Luxury rentals are typically treated better by tenants. The reality of renting a property out is that people may not treat the property as you would. However, when you are renting out higher end properties you attract those who will care for the property.
5 - You can see a higher rate of return on a luxury investment property because you can rent it out at a higher rate. A property in a coveted location can demand a higher monthly payment from tenants.
6 - Luxury property is typically quite secure and can bring with it peace of mind. Gated homes or gated communities are the norm for luxury real estate. Depending on the community, there may even be a dedicated security force. Increased security is a great bonus in terms of protecting your investment and keeping you and your tenants comfortable, knowing that extra level of security is in place.
7 - If you own a business or network with other business executives, a luxury rental makes a great reward for business well done, or as a getaway for a business retreat. It can also be used as a perk for exceptional clients.
Imagine everything you could do with a luxury real estate investment! A wonderful place you can call your second home, in a paradise of your choosing. A relaxing getaway and a lifelong investment rolled into one!
Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
Volker Weiss - Maui Realtor(R/S) specialist focusing on Wailea Condos. Make your vacation last forever, check out Maui Real Estate. For immediate help call VW directly at 888.572.6888
Read more....
Investment properties are typically looked at as either flips or rentals at the lower end of the financial spectrum. An investor will buy something relatively inexpensively, fix it up and then sell it if the market is right, or rent it out. However, the luxury rental market can be quite lucrative and is often overlooked by many investors. A luxury property can be worth its weight in gold if bought at the right price and in the right location. So, if you're contemplating investing in real estate, or expanding your existing real estate portfolio shouldn't you consider buying a luxury home or condominium?
Luxury holds different meanings for different buyers. It may translate into a home with its own stretch of beach. Or a top-of-the-line condo along the fairway of one of the best golf courses in the world. Perhaps your idea of luxury is a secluded retreat where you can get away from it all. Obviously, there is no set definition for luxury to each and every investor, but there is certainly a difference in terms of location, price and features.
In any given area, the luxury properties will be on the high end of the sales price range. In some small town in the middle of North America a luxury home with all the bells and whistles may cost $400,000. But head on over to the Wailea area on the island of Maui where condominiums are easily found in the million dollar range and luxury properties, especially single family homes, will be well above that million dollar mark.
Of course, it's exciting to purchase a luxury home as an investment property. Doesn't everyone want to add high end homes to their real estate portfolio? But there are more explanations why buying a luxury investment property is a smart move, other than just the "feel good" aspect. Here are seven reasons why a luxury real estate purchase can work in your favor:
1 - Right now is the perfect time for an investor to buy! Real estate is a cyclical industry. Prices go up and prices go down. The market gets hot and properties are selling left and right. And then the market cools. That's just the nature of real estate. And currently, prices are extremely favorable to buyers. Not only are prices reasonable, but many sellers are very motivated and are pricing their homes to sell!
2 - Luxury real estate is a great long-term investment...it does not depreciate to the extent that other markets may. Yes, the market is favorable to buyers at this moment, but over the long run, you won't see the ugly drop in your investment. Meaning, you won't see your property depreciate by 50% or worse. Luxury properties tend to hold their value fairly well.
3 - Luxury properties are flexible! You can purchase it as your upscale getaway and then turn around and rent it out to travelers by the week or by the month. You can even rent it out annually until you plan to retire to your luxury property paradise. But the flexibility is there. Many investors are able to make it work financially buy renting luxury property out on short-term agreements with travelers or locals and then still take advantage of the property themselves.
4 - Luxury rentals are typically treated better by tenants. The reality of renting a property out is that people may not treat the property as you would. However, when you are renting out higher end properties you attract those who will care for the property.
5 - You can see a higher rate of return on a luxury investment property because you can rent it out at a higher rate. A property in a coveted location can demand a higher monthly payment from tenants.
6 - Luxury property is typically quite secure and can bring with it peace of mind. Gated homes or gated communities are the norm for luxury real estate. Depending on the community, there may even be a dedicated security force. Increased security is a great bonus in terms of protecting your investment and keeping you and your tenants comfortable, knowing that extra level of security is in place.
7 - If you own a business or network with other business executives, a luxury rental makes a great reward for business well done, or as a getaway for a business retreat. It can also be used as a perk for exceptional clients.
Imagine everything you could do with a luxury real estate investment! A wonderful place you can call your second home, in a paradise of your choosing. A relaxing getaway and a lifelong investment rolled into one!
Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
Volker Weiss - Maui Realtor(R/S) specialist focusing on Wailea Condos. Make your vacation last forever, check out Maui Real Estate. For immediate help call VW directly at 888.572.6888
Read more....
30.6.09
Are safe investments possible?
by: David Humeniuk
That was the response I received from the first client I spoke with a few days after opening our doors for business. The husband and wife were questioning my sanity because I was suggesting that the time was right to be investing in a product that is secured by real estate. Yes, I have heard of investment companies being in trouble and note almost daily the number of published articles in newspapers, magazines and on the internet that are painting a picture of doom and gloom. As a matter of fact the Calgary Herald has just printed an article with the following headline in bold print: “Commercial Real Estate Suffers $1-Billion Drop.” Based on the headline anyone thinking of investing in commercial real estate would be putting their investment funds back under their mattress. The article was about how commercial real estate sales had decreased from 2008. What it failed to mention was that in 2008 and years preceding the number of sales were inflated because Calgary was the “ho!
ttest market for commercial real estate in North America.” That market is returning to normal which is a good thing. One should not always take media hype at face value. If you analyze and complete due diligence before you invest you will be making informed decisions based on fact and that will provide you with lucrative ways to increase your net worth even in these embattled times. So my answer to the, are you nuts, question is a definite NO!
“What Should We Look For?”
The investment promoter should be willing to give you their legal documents so that you can read and understand them yourselves, or with the assistance of legal and/or accounting advice. When an offer is made they should provide you with access to the due diligence that they complete. That should include current appraisals, engineer’s reports, environmental studies, a review of the leases and title searches to ensure that there are no undisclosed liens or problems. You will want to be assured that your funds are held in a trust account and that some form of audit is completed on the account. After you have invested you will want to know on at least a quarterly basis, if not more frequently, how the building you have invested in is performing.
Some investment companies still try to entice investors with projected returns that cannot be substantiated. The only return that is real is the cash flow. Therefore, you should note the following:
1) Who are the tenants and when do their leases expire?
2) Is there a good mix of tenants or does one tenant occupy the majority of the leasable space?
3) What is the basic rent they are paying and how does that compare to market rents?
4) What are the operating costs and is the amount collected from the tenants sufficient to cover all operating expenditures?
5) Who will actually own the property and how will your interests be protected?
6) Is there a mortgage on the property?
7) What is the amount being mortgaged? What is the rate? Are there prepayment penalties? What is the lenders receptivity to renewals and refinances?
If you have done your homework and you are satisfied that the company promoting the investment has done theirs real estate can be a safe short, medium or long term investment.
“Is There One Investment Product that I Should Consider?”
Syndications of commercial real estate have been around for a long time. The newest syndication product in the market is the private mutual fund trust secured by real estate. Some companies offer this product with debt while others provide a debt free property as security.
“Why Invest in Debt-Free Real Estate?”
1) Income is based on lease payments for a contracted period of time and amount from long term tenants with strong covenants.
2) Your capital is protected and will be there when it is needed.
3) Your return is steady and is not based on predictions or gimmicks.
4) Income and profit are maximized by not having to pay a mortgage.
a) Being mortgage free reduces risk of loss.
b) Real estate consistently stays ahead of inflation.
c) Real estate avoids stock market volatility.
5) It provides a dependable, secure income for retirement, a rainy day or a child’s education.
6) This type of investment is ideal for registered products like RRSPs, RESPs, Liras and RRIFs. It also is an excellent way to maximize the tax free returns in your tax free savings account.
7) Purchasing real estate with cash often allows for a better purchase price as a quick closing puts cash in the vendors pocket in much shorter period of time than if mortgage financing was required. From the vendor’s point of view this is a positive and often leads to a reduced purchase price. This, in turn, means that the potential for an increased capital gain at the time the investors sell the property is greater.
Summary
Investing in products secured by commercial real estate is still a safe and sound way to provide a positive source of growth in your investment portfolio. The key to investing in the right product is to ask the right questions and to make sure that you are comfortable with the company promoting the investment. Syndication is a popular way for everyone to invest in real estate as groups of investors provide the funds for a purchase that would normally only be available to wealthy individuals. The newest form of syndication is the private mutual fund trust. Debt free real estate provides the safest and best security for investors.
Read more....
That was the response I received from the first client I spoke with a few days after opening our doors for business. The husband and wife were questioning my sanity because I was suggesting that the time was right to be investing in a product that is secured by real estate. Yes, I have heard of investment companies being in trouble and note almost daily the number of published articles in newspapers, magazines and on the internet that are painting a picture of doom and gloom. As a matter of fact the Calgary Herald has just printed an article with the following headline in bold print: “Commercial Real Estate Suffers $1-Billion Drop.” Based on the headline anyone thinking of investing in commercial real estate would be putting their investment funds back under their mattress. The article was about how commercial real estate sales had decreased from 2008. What it failed to mention was that in 2008 and years preceding the number of sales were inflated because Calgary was the “ho!
ttest market for commercial real estate in North America.” That market is returning to normal which is a good thing. One should not always take media hype at face value. If you analyze and complete due diligence before you invest you will be making informed decisions based on fact and that will provide you with lucrative ways to increase your net worth even in these embattled times. So my answer to the, are you nuts, question is a definite NO!
“What Should We Look For?”
The investment promoter should be willing to give you their legal documents so that you can read and understand them yourselves, or with the assistance of legal and/or accounting advice. When an offer is made they should provide you with access to the due diligence that they complete. That should include current appraisals, engineer’s reports, environmental studies, a review of the leases and title searches to ensure that there are no undisclosed liens or problems. You will want to be assured that your funds are held in a trust account and that some form of audit is completed on the account. After you have invested you will want to know on at least a quarterly basis, if not more frequently, how the building you have invested in is performing.
Some investment companies still try to entice investors with projected returns that cannot be substantiated. The only return that is real is the cash flow. Therefore, you should note the following:
1) Who are the tenants and when do their leases expire?
2) Is there a good mix of tenants or does one tenant occupy the majority of the leasable space?
3) What is the basic rent they are paying and how does that compare to market rents?
4) What are the operating costs and is the amount collected from the tenants sufficient to cover all operating expenditures?
5) Who will actually own the property and how will your interests be protected?
6) Is there a mortgage on the property?
7) What is the amount being mortgaged? What is the rate? Are there prepayment penalties? What is the lenders receptivity to renewals and refinances?
If you have done your homework and you are satisfied that the company promoting the investment has done theirs real estate can be a safe short, medium or long term investment.
“Is There One Investment Product that I Should Consider?”
Syndications of commercial real estate have been around for a long time. The newest syndication product in the market is the private mutual fund trust secured by real estate. Some companies offer this product with debt while others provide a debt free property as security.
“Why Invest in Debt-Free Real Estate?”
1) Income is based on lease payments for a contracted period of time and amount from long term tenants with strong covenants.
2) Your capital is protected and will be there when it is needed.
3) Your return is steady and is not based on predictions or gimmicks.
4) Income and profit are maximized by not having to pay a mortgage.
a) Being mortgage free reduces risk of loss.
b) Real estate consistently stays ahead of inflation.
c) Real estate avoids stock market volatility.
5) It provides a dependable, secure income for retirement, a rainy day or a child’s education.
6) This type of investment is ideal for registered products like RRSPs, RESPs, Liras and RRIFs. It also is an excellent way to maximize the tax free returns in your tax free savings account.
7) Purchasing real estate with cash often allows for a better purchase price as a quick closing puts cash in the vendors pocket in much shorter period of time than if mortgage financing was required. From the vendor’s point of view this is a positive and often leads to a reduced purchase price. This, in turn, means that the potential for an increased capital gain at the time the investors sell the property is greater.
Summary
Investing in products secured by commercial real estate is still a safe and sound way to provide a positive source of growth in your investment portfolio. The key to investing in the right product is to ask the right questions and to make sure that you are comfortable with the company promoting the investment. Syndication is a popular way for everyone to invest in real estate as groups of investors provide the funds for a purchase that would normally only be available to wealthy individuals. The newest form of syndication is the private mutual fund trust. Debt free real estate provides the safest and best security for investors.
