Do you believe that internet marketers produce all of their content on their own?
Ponder over it. They need to write content to complete their products, post on their blogs, content to send to their subscribers through email as well as content for their many other sites.
If they need to invest all of their time just writing content for all this, they will not have any time left to do their marketing strategies. Remember, regardless of how successful they are, these people still only have 2 hands and 24 hours in a day. There is only a limited number of things that they are able to complete on their own.
Therefore we can only come to the conclusion that not everything that you see on their site, blogs and products are developed by them.
As an online marketer, you can find 3 very helpful sources of content that you ought to most certainly capitalize on so that you could create additional time to accomplish other activities to market your internet business.
1) Private Label Right Content
Private label right content is definitely an internet marketer’s best friend. These are basically content which you buy or download free of charge. You are permitted to put your name on them without changing them in the slightest and claim to be the original creator. Nobody will sue you for copyright violation.
The drawback to private label right content is that they tend to be pretty basic and not targeted. If you ever go through a few of these content, you will discover that there's very little when it comes to good information for you to use. It’s just that the foundation has been laid and all you have to do is add on a bit of your own content to them so that they are more “detailed”.
There are plenty of memberships on the internet that you can be a part of to download private label right content from any market.
2) Public Domain
Public domain in essence denotes content which have not been copyrighted or the copyright timeframe has lapsed. Just as the private label right content, you can put your name on them and claim to be the original author without having to worry about infringing upon any kind of copyright complications.
Nevertheless, public domain content are usually a bit outdated due to a great deal of them were written a long time ago, before copyrights was introduced. A good example is the “Think & Grow Rich” book written by Napoleon Hill.
Many people are selling the content from that book, the majority of them still using the original title. The good internet marketers will modify the content in order to reflect on the present.
Gutenberg.org is considered the most well-known source of public domain content.
3) Freelancers
If you want original content which are new and distinctive, try to get freelancers to write for you. For a very minimal cost for each piece of content, depending on the length and research required, you can obtain one of a kind content material for your products, blogs and to share with your subscribers.
There are lots of freelancers promoting their services on the internet and you can get in contact with them to provide content for you. If they happen to be good, it is possible to retain them regularly. If not, there are lots of others on the market so take your pick.
Consequently don’t spend all of your time generating content on your own. Your time as an online marketer must be used to market your business so that you can generate profits.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Wednesday, June 26, 2013
Monday, June 24, 2013
How To Retain The Resale Value Of Your Investment Property
There are many points that have to be dealt with when dealing the resale value on investment property. Prior to making any kind of rash conclusions - shop around as you can never judge the book by the cover.
Picturesque landscapes or commercial surroundings are crucial issues that could impact the resale value of your property. When shopping for or selling a property be sure you have all these points stay at the back of your head. Purchasing a home in fantastic proximities such as near to the seaside can easily increase the dividends past anticipation - well who doesn't want to wake up to the sound of the ocean?
Not all buyer considers the dollar value based on a view therefore leaving you in a tricky predicament - go along with your own instincts. Locating a buyer for your home may take longer than estimated with or without viewsout views. In some cases the resale value on property rates are decreased for a quick sale due to the location or neighbourhood.
Recently - focus from prospective buyers is drawn more towards the bricks and mortar side of things, however the land is very important too. Homes that hold excellent resale value must be seated on land that is as flat as possible. If the property is built in a typical neighbourhood then the land should be square - certainly not unusual or unevenly shaped. Size of the yards are often found to be a great deal smaller in contemporary properties compared to properties built in the days gone by, even so, don't get discouraged. You can still find a decent sized front and back courtyard in smaller sized properties.
Over-landscaped property is a no go. You would usually expect to fork out a premium on this of which you could find difficult to claim back when you put your house on the market. The best resale values are found in premises that are modestly landscaped or under-landscaped. If gardening is your strength you can add your own bushes and trees.
Properties in residential locations will be different in proportions. In the event resale value is a crucial matter then opt away from buying the largest building in that particular part of the town or village. When figuring out market value the properties directly next to yours can hamper a buyers evaluation so if you purchase a small or medium property in that neighborhood the bigger properties might help pull up your value.
Acquiring property in a more prestigious neighbourhood may present more financial benefits.
Stick to purchasing property in the size of three to four bedrooms which are the most desired among first time homebuyers. With regards to the resell deal you will have more chance of attracting offers because of the size. Keep a look out for his and her bathrooms - in other words two washrooms. Walk-in spacious closets are incredibly appealing within the master bedroom.
Always have a look at wardrobe space - more space more money in your bank account when you come to selling. Resale Value will increase with an attached garage or conservatory.
Have the utility/laundry area placed somewhere accessible on the ground floor of the property. Kitchens are usually about a person's personal taste however the bigger the better. The serving of meals made simple - would be to locate dining and eating spaces which are adjacent to the cooking area.
Look for easy access to the backyard from the kitchen area if you would like entertain in the garden with barbecues. Swimming pools today can deflate the resale price because of kids and the danger risks. Children can never be kept unattended by water. Sound judgment will help you decide on what priorities come first to help hold the properties resale value.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Picturesque landscapes or commercial surroundings are crucial issues that could impact the resale value of your property. When shopping for or selling a property be sure you have all these points stay at the back of your head. Purchasing a home in fantastic proximities such as near to the seaside can easily increase the dividends past anticipation - well who doesn't want to wake up to the sound of the ocean?
Not all buyer considers the dollar value based on a view therefore leaving you in a tricky predicament - go along with your own instincts. Locating a buyer for your home may take longer than estimated with or without viewsout views. In some cases the resale value on property rates are decreased for a quick sale due to the location or neighbourhood.
Recently - focus from prospective buyers is drawn more towards the bricks and mortar side of things, however the land is very important too. Homes that hold excellent resale value must be seated on land that is as flat as possible. If the property is built in a typical neighbourhood then the land should be square - certainly not unusual or unevenly shaped. Size of the yards are often found to be a great deal smaller in contemporary properties compared to properties built in the days gone by, even so, don't get discouraged. You can still find a decent sized front and back courtyard in smaller sized properties.
Over-landscaped property is a no go. You would usually expect to fork out a premium on this of which you could find difficult to claim back when you put your house on the market. The best resale values are found in premises that are modestly landscaped or under-landscaped. If gardening is your strength you can add your own bushes and trees.
Properties in residential locations will be different in proportions. In the event resale value is a crucial matter then opt away from buying the largest building in that particular part of the town or village. When figuring out market value the properties directly next to yours can hamper a buyers evaluation so if you purchase a small or medium property in that neighborhood the bigger properties might help pull up your value.
Acquiring property in a more prestigious neighbourhood may present more financial benefits.
Stick to purchasing property in the size of three to four bedrooms which are the most desired among first time homebuyers. With regards to the resell deal you will have more chance of attracting offers because of the size. Keep a look out for his and her bathrooms - in other words two washrooms. Walk-in spacious closets are incredibly appealing within the master bedroom.
Always have a look at wardrobe space - more space more money in your bank account when you come to selling. Resale Value will increase with an attached garage or conservatory.
Have the utility/laundry area placed somewhere accessible on the ground floor of the property. Kitchens are usually about a person's personal taste however the bigger the better. The serving of meals made simple - would be to locate dining and eating spaces which are adjacent to the cooking area.
Look for easy access to the backyard from the kitchen area if you would like entertain in the garden with barbecues. Swimming pools today can deflate the resale price because of kids and the danger risks. Children can never be kept unattended by water. Sound judgment will help you decide on what priorities come first to help hold the properties resale value.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Thursday, June 20, 2013
Using Affiliates To Grow Your Internet Business Fast
You are about to find out the true key to sending hordes of traffic to your website, building up your mailing list within a brief period of time as well as eventually, exploding your sales.
However, this is only relevant if you are a product owner yourself.
It does not require buying advertisements or making use of tools as well as other cool tricks to dominate the first page of Google (even though to be able to achieve that will still be fantastic).
The key is simple - create an affiliate program.
Make somebody else to promote your product and in return, you offer them a percentage of commission.
Now, why would you want to hand out a portion of your revenue to other people when you can promote the product by yourself and hold on to 100% of the revenue?
Well then, ever wonder why there are so many products listed on affiliate sites such as Clickbank? And plenty of them are offering commission as high as 70% in the least.
That’s because these marketers are aware of the advantages that they can get from leverage. They leverage on someone else's time, resources, list as well as circle of contact. Your affiliates most likely possess a list, but they do not have a product. You, on the other hand, have a product, but a limited list. By using affiliates, you're able to expand your circle and be able to reach out to an audience that you will probably never be able to access, or require a very long time to reach to begin with. The savvy marketers know that they are able to make back more than the amount they offered as commission off their backend since they now have a much bigger list to market to.
So how do you set up an affiliate program that appeals to quality affiliates?
First, you have to make the revenue incredibly lucrative for them. Offering as much as 70% commission is fine, but when everybody else is doing it too, you don’t stand out. It is possible to go above and beyond the normal offerings and give them something extra - such as a cut of commission (this may be a reduced percentage) from any backend product that you promote or recurring income (truly powerful if you’re marketing a membership package).
Something else which can be done is to make it easy for your affiliates to promote your product. You can create readymade affiliate tools for them to use such as banners, pre-written content material for their blogs, email marketing promotions, posts for Facebook and Twitter and any other tools that they can use to promote your product.
So how do you locate affiliates? They can be found almost everywhere. The easiest way is to include your affiliate program in affiliate sites such as Clickbank. There are many affiliate sites on the internet. The secret is, to craft the copy targeted at affiliates, and not customers. A lot of marketers make the mistake of talking about exactly how wonderful their product is, but they forget that the purpose they list their affiliate program is to get affiliates to market, not purchase their product.
Hence the description must be customized for affiliates, by showcasing your commission rate, how simple it is to market your products, whether there are any recurring commission or commission on backend sales, the fact that you have got affiliate tools all set for them to make use of and any other perks that can help set your affiliate program apart from the competition.
Keep in mind, your affiliates are your very best friends. They can help your business reach mass critical really fast, which means you most definitely should give them preferential treatment. The affiliates that have promoted your products with success can be your long term jv partners, working together with you for even bigger ventures.
Therefore don’t do it alone when you can leverage on other people.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
However, this is only relevant if you are a product owner yourself.
It does not require buying advertisements or making use of tools as well as other cool tricks to dominate the first page of Google (even though to be able to achieve that will still be fantastic).
The key is simple - create an affiliate program.
Make somebody else to promote your product and in return, you offer them a percentage of commission.
Now, why would you want to hand out a portion of your revenue to other people when you can promote the product by yourself and hold on to 100% of the revenue?
Well then, ever wonder why there are so many products listed on affiliate sites such as Clickbank? And plenty of them are offering commission as high as 70% in the least.
That’s because these marketers are aware of the advantages that they can get from leverage. They leverage on someone else's time, resources, list as well as circle of contact. Your affiliates most likely possess a list, but they do not have a product. You, on the other hand, have a product, but a limited list. By using affiliates, you're able to expand your circle and be able to reach out to an audience that you will probably never be able to access, or require a very long time to reach to begin with. The savvy marketers know that they are able to make back more than the amount they offered as commission off their backend since they now have a much bigger list to market to.
So how do you set up an affiliate program that appeals to quality affiliates?
First, you have to make the revenue incredibly lucrative for them. Offering as much as 70% commission is fine, but when everybody else is doing it too, you don’t stand out. It is possible to go above and beyond the normal offerings and give them something extra - such as a cut of commission (this may be a reduced percentage) from any backend product that you promote or recurring income (truly powerful if you’re marketing a membership package).
Something else which can be done is to make it easy for your affiliates to promote your product. You can create readymade affiliate tools for them to use such as banners, pre-written content material for their blogs, email marketing promotions, posts for Facebook and Twitter and any other tools that they can use to promote your product.
So how do you locate affiliates? They can be found almost everywhere. The easiest way is to include your affiliate program in affiliate sites such as Clickbank. There are many affiliate sites on the internet. The secret is, to craft the copy targeted at affiliates, and not customers. A lot of marketers make the mistake of talking about exactly how wonderful their product is, but they forget that the purpose they list their affiliate program is to get affiliates to market, not purchase their product.
Hence the description must be customized for affiliates, by showcasing your commission rate, how simple it is to market your products, whether there are any recurring commission or commission on backend sales, the fact that you have got affiliate tools all set for them to make use of and any other perks that can help set your affiliate program apart from the competition.
Keep in mind, your affiliates are your very best friends. They can help your business reach mass critical really fast, which means you most definitely should give them preferential treatment. The affiliates that have promoted your products with success can be your long term jv partners, working together with you for even bigger ventures.
Therefore don’t do it alone when you can leverage on other people.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Wednesday, June 19, 2013
The Importance Of Market Research In Internet Marketing
It’s the ultimate chicken and egg story of the internet marketing world, one where so many people got wrong even before they started
their business.
Do you find a market first before creating a product or
create a product then find a market for it?
The answer is to find your market first then create a
product to serve that market. You never, ever create a product then find a
market for it. This would be depending on luck. If you’re lucky, you can find a
market for the product. Or you could find yourself with a product that you took
a long time and a lot of resources to create but can’t find a market that wants
it.
That unfortunately, is a pitfall that many newbie marketers
will experience. They have this idea for a product that they think is wonderful
and they go about creating it, creating the website and all the bells and
whistles to promote it, only to find that there is no market for it, not even a
very small niche.
The correct way to go about this is to research your market.
Take a look at what they want, what questions they are asking and then create a
product to fulfill that need.
Hint: Big corporations spend millions of dollars per year on
market research. Next to marketing, it is the biggest allocation in their
annual budget. This should tell you something about how important market
research is.
So how do you find out what the market wants?
Well, first you have to know what market you want to go
into. You can’t just decide that you want to sell products related to a particular
market just because it is very lucrative. Experts always advice to go for
markets that you have a certain affinity towards. You must have a certain level
of interest for a market to be able to build a sustainable business.
Of course, there is no stopping you from going into a very
lucrative market where you have no knowledge or interest in. You can, but if
you’re going to build a long term business around a topic, it might as well be
something that you already know something about or have a keen interest to
learn about.
The next thing is to get involved with your market. Lurk
around forums and discussion boards and read what other people are posting
about the topics related to your current market. Facebook is also a great place
to find out what the market wants. In all likelihood, you will find a fan page
or group devoted to the topic. Go in and read the posts there.
It is also a good idea to participate in the discussion or
ask questions. This will basically lay the foundation for you to be seen as an
expert in your chosen field. Then when your product is ready, you will more or
less have a ready market to sell to.
Once you have discovered a need on the market, you can start
building a product to serve that need.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Tuesday, June 18, 2013
Overview Of The Rent To Own Strategy
In the event you desire to own your own home but cannot secure standard financing today, renting a house with an option to purchase may be your best option. A lease purchase can make your rent money work for you instead of making your landlord rich. Generally rent to own homes come with rent credits that decrease the final purchase price!
Here's this it works:
A home is offered via a regular lease with one crucial add-on. Included is an option to buy that property at a stipulated price over a stipulated time period (generally a couple of years). To be able to acquire that option, the renter/buyer is required to pay a single time, NON REFUNDABLE, charge called the option consideration. The exact sum is flexible, nonetheless it is generally ranges from 2.5% to 7% of the price. A reasonable contract will credit the purchaser 100% of that option consideration upon conclusion of the sale. Additionally a negotiated portion of all rent transactions is generally applied toward the price of the property. A few standard terms and conditions one might expect to find inside a contract follows:
* To be able to be given a rent credit of 50%, time is important. You have to pay your rent on or BEFORE the deadline of your lease (usually the 1st of the month). This implies it must be received by the lessor (landlord) on or before the deadline. Any payment received past the deadline will lead to a 0% rent credit for that month, a penalty fee may apply and you will probably not be creating any sort of resources.
* Repairs and maintenance is the obligation of the Tenant Buyer. You are at this instant renting to own and homeownership requires repairs and maintenance. This can include things such as damaged windows from rocks or even baseballs, blocked drains, peeling paint, broken appliances, burnt out light bulbs, yard work, etc. In cases where any major repairs are required to ensure habitability, the owner continues to be responsible.
* You need to have Option Consideration. Option Consideration is often 2.5% to 7% of the price of the property. This is a non-refundable costs, out of which 100% is credited toward the price, that binds the lease purchase contract.
Here's a sample transaction:
You come across a nice 3 bedroom, 1 bath single family home located in a great neighborhood with excellent schools and also a solid community members. It has been freshly painted, cleaned up, and is ready to occupy. The purchase price is going to be $215,000. Monthly rent payments shall be $1,500 and you will get a 50% rent credit ($750 per month). You need approximately 2.5% and 7% in advance Option Consideration. Suppose your budget allows for $6,000 for Option Consideration. This equates to approximately 2.8% ($6,000/215,000). You will also need $1,500 for the first months rent for a total first payment of $7,500.
Take note: Option consideration is definitely not a security deposit. This is a non refundable payment toward the price and is 100% credited toward reducing the cost of the home.
Now assuming you paid all your monthly rent payments on or prior to the deadline and you decide to purchase the rent to own property at the end of the 12 month lease purchase contract. You will have $15,000 in equity prior to you even own the property! Here's the math:
Lease Purchase Price - $215,000
Less: Option Consideration paid at lease signing - $6,000
Less: 50% rent credit of $750/m x 12 months - $9,000
Net Purchase Price after credits - $200,000
You began with $6,000 and by paying your rent punctually; your equity standing grew 150% (another $9,000) for a full amount of of $15,000 with 12 months. Not a terrible arrangement! Many people find it extremely hard just to save $9,000 in a year with all the costs of living continuously on the rise.
What's the catch?
Now you could be thinking, "OK, what's the catch? This appears to be too good to be true."
Answer, there is absolutely no catch.
There are lots of likely factors a landlord/seller may want to get into a rent to own agreement. Some factors may be:
- Needs to maintain ownership for at least a year for tax requirements.
- Cannot receive a good price because of local circumstances.
- Fed up with undertaking minor upkeep.
On top of that, when one sells a property by using a realty service, a commission of 5%-7% is typically paid. In the example stated above, this could be more expensive compared to rent credit. Since realtors are often not involved with this sort of transaction, there is absolutely no commission and the landlord is able to pass off the benefits to tenant/buyer by means of rent credits.
Also, once the Tenant becomes the Tenant Buyer (via rent to own), it comes with an instant sense of pride in ownership. Tenant Buyers give back to the community. They take care of their future property, make enhancements, and feel great knowing their rent money is earning a living for them (reducing the price) rather than just making their Landlord rich.
In addition there are many advantages for the renter:
- Build equity toward home ownership.
- No bank or finance company involvement.
- A less than stellar credit history may not be a problem.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Here's this it works:
A home is offered via a regular lease with one crucial add-on. Included is an option to buy that property at a stipulated price over a stipulated time period (generally a couple of years). To be able to acquire that option, the renter/buyer is required to pay a single time, NON REFUNDABLE, charge called the option consideration. The exact sum is flexible, nonetheless it is generally ranges from 2.5% to 7% of the price. A reasonable contract will credit the purchaser 100% of that option consideration upon conclusion of the sale. Additionally a negotiated portion of all rent transactions is generally applied toward the price of the property. A few standard terms and conditions one might expect to find inside a contract follows:
* To be able to be given a rent credit of 50%, time is important. You have to pay your rent on or BEFORE the deadline of your lease (usually the 1st of the month). This implies it must be received by the lessor (landlord) on or before the deadline. Any payment received past the deadline will lead to a 0% rent credit for that month, a penalty fee may apply and you will probably not be creating any sort of resources.
* Repairs and maintenance is the obligation of the Tenant Buyer. You are at this instant renting to own and homeownership requires repairs and maintenance. This can include things such as damaged windows from rocks or even baseballs, blocked drains, peeling paint, broken appliances, burnt out light bulbs, yard work, etc. In cases where any major repairs are required to ensure habitability, the owner continues to be responsible.
* You need to have Option Consideration. Option Consideration is often 2.5% to 7% of the price of the property. This is a non-refundable costs, out of which 100% is credited toward the price, that binds the lease purchase contract.
Here's a sample transaction:
You come across a nice 3 bedroom, 1 bath single family home located in a great neighborhood with excellent schools and also a solid community members. It has been freshly painted, cleaned up, and is ready to occupy. The purchase price is going to be $215,000. Monthly rent payments shall be $1,500 and you will get a 50% rent credit ($750 per month). You need approximately 2.5% and 7% in advance Option Consideration. Suppose your budget allows for $6,000 for Option Consideration. This equates to approximately 2.8% ($6,000/215,000). You will also need $1,500 for the first months rent for a total first payment of $7,500.
Take note: Option consideration is definitely not a security deposit. This is a non refundable payment toward the price and is 100% credited toward reducing the cost of the home.
Now assuming you paid all your monthly rent payments on or prior to the deadline and you decide to purchase the rent to own property at the end of the 12 month lease purchase contract. You will have $15,000 in equity prior to you even own the property! Here's the math:
Lease Purchase Price - $215,000
Less: Option Consideration paid at lease signing - $6,000
Less: 50% rent credit of $750/m x 12 months - $9,000
Net Purchase Price after credits - $200,000
You began with $6,000 and by paying your rent punctually; your equity standing grew 150% (another $9,000) for a full amount of of $15,000 with 12 months. Not a terrible arrangement! Many people find it extremely hard just to save $9,000 in a year with all the costs of living continuously on the rise.
What's the catch?
Now you could be thinking, "OK, what's the catch? This appears to be too good to be true."
Answer, there is absolutely no catch.
There are lots of likely factors a landlord/seller may want to get into a rent to own agreement. Some factors may be:
- Needs to maintain ownership for at least a year for tax requirements.
- Cannot receive a good price because of local circumstances.
- Fed up with undertaking minor upkeep.
On top of that, when one sells a property by using a realty service, a commission of 5%-7% is typically paid. In the example stated above, this could be more expensive compared to rent credit. Since realtors are often not involved with this sort of transaction, there is absolutely no commission and the landlord is able to pass off the benefits to tenant/buyer by means of rent credits.
Also, once the Tenant becomes the Tenant Buyer (via rent to own), it comes with an instant sense of pride in ownership. Tenant Buyers give back to the community. They take care of their future property, make enhancements, and feel great knowing their rent money is earning a living for them (reducing the price) rather than just making their Landlord rich.
In addition there are many advantages for the renter:
- Build equity toward home ownership.
- No bank or finance company involvement.
- A less than stellar credit history may not be a problem.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Friday, June 14, 2013
What You Should Know Before You Start Flipping Houses
Money is made at the buy, not the sale of your flip. So often times people buy a property with the objectives of making a big return only to figure out that they could not make any money after taking into consideration the refurbishments because the purchase price of the house was excessive.
1. Revenue is generated at the point of acquisition, not the sale of your flip. When flipping a house your money is made during the purchase and not during the sale of the house. So, often times people buy a house with the explicit aims of earning a big profit only to figure out that they could not make any money after all the refurbishments because the purchased price of the house was way too high. When purchasing your property you must be sure that you purchase the house with sufficient money to make refurbishments, have holding cost, and add around $5,000-$6,000. The error was made during the acquisition of the property, not during the.
2. Get an inspection on the home - Get a full inspection carried out on your property. By spending some money on this expenditure you can save thousands in problems that you cannot notice. Foundation, Pest, Wood Rot, Etc... By getting a full examination you can you can be confident that you know every thing that is wrong about the property before it is too late. Inside the contract for the property you must make sure that you have 7 days to have an inspection carried out, and if the inspection finds problems that are going to cost more money than you are willing to shell out you can get out of the contract with no penalties.
3. Don't do the work on your own - Get yourself a contractor or a few sub-contractors and you will see the work completed swiftly. You need to have your property flipped as soon as possible, to enable you to get it available on the market and get it sold. Even if you have the expertise in construction or home restoration, it is nevertheless not an efficient way to spend your time. Your time ought to be used searching for the next deal. This is how you become rich in real estate.
4. Put the property 1% to 2% below market price: If you are wanting to flip real estate and generate profit the object is to buy and sell the real estate right away, to enable you to move on to the subsequent property. If you happen to purchase a property and attempt to sell it off at top dollar to make an additional few thousand dollars on your flip, and find yourself holding it for 6 months you happen to be losing profits. Put the property on the market at a price tag which is going to blow the competition aside, and you may be able to sell it regardless of the market conditions. This is what you need to do especially if the market is slow.
5. Utilize a realtor - You should never try to sell your property on your own. Harness the power of a realtor along with the power of the Multiple Listing Service system. When you put up a "For Sale By Owner" you might be depending upon people driving by your property and reading your sign. With a realtor you have someone actively selling your property to get it sold. Once more this will free up additional time for you to look for even more great deals. If you want to speed up the process, Craigslist and placing your property in Google Adwords help as well, but utilize these tools with the help of an agent to ensure you have all of the bases dealt with.
When you will study and learn you certainly will make money. Nevertheless, shop around prior to deciding to buy a property, and ensure that it's possible to make a profit on your deal. Then, make it happen!
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
1. Revenue is generated at the point of acquisition, not the sale of your flip. When flipping a house your money is made during the purchase and not during the sale of the house. So, often times people buy a house with the explicit aims of earning a big profit only to figure out that they could not make any money after all the refurbishments because the purchased price of the house was way too high. When purchasing your property you must be sure that you purchase the house with sufficient money to make refurbishments, have holding cost, and add around $5,000-$6,000. The error was made during the acquisition of the property, not during the.
2. Get an inspection on the home - Get a full inspection carried out on your property. By spending some money on this expenditure you can save thousands in problems that you cannot notice. Foundation, Pest, Wood Rot, Etc... By getting a full examination you can you can be confident that you know every thing that is wrong about the property before it is too late. Inside the contract for the property you must make sure that you have 7 days to have an inspection carried out, and if the inspection finds problems that are going to cost more money than you are willing to shell out you can get out of the contract with no penalties.
3. Don't do the work on your own - Get yourself a contractor or a few sub-contractors and you will see the work completed swiftly. You need to have your property flipped as soon as possible, to enable you to get it available on the market and get it sold. Even if you have the expertise in construction or home restoration, it is nevertheless not an efficient way to spend your time. Your time ought to be used searching for the next deal. This is how you become rich in real estate.
4. Put the property 1% to 2% below market price: If you are wanting to flip real estate and generate profit the object is to buy and sell the real estate right away, to enable you to move on to the subsequent property. If you happen to purchase a property and attempt to sell it off at top dollar to make an additional few thousand dollars on your flip, and find yourself holding it for 6 months you happen to be losing profits. Put the property on the market at a price tag which is going to blow the competition aside, and you may be able to sell it regardless of the market conditions. This is what you need to do especially if the market is slow.
5. Utilize a realtor - You should never try to sell your property on your own. Harness the power of a realtor along with the power of the Multiple Listing Service system. When you put up a "For Sale By Owner" you might be depending upon people driving by your property and reading your sign. With a realtor you have someone actively selling your property to get it sold. Once more this will free up additional time for you to look for even more great deals. If you want to speed up the process, Craigslist and placing your property in Google Adwords help as well, but utilize these tools with the help of an agent to ensure you have all of the bases dealt with.
When you will study and learn you certainly will make money. Nevertheless, shop around prior to deciding to buy a property, and ensure that it's possible to make a profit on your deal. Then, make it happen!
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Thursday, June 13, 2013
Internet Business vs Conventional Business
Everyone wants to discover how to make money online. It is the ultimate dream way of living when you consider it.
There are plenty of advantages to having a business in cyberspace, not just for the regular lone entrepreneur, but also for large businesses who already have a powerful brand presence in their own market.
In this modern age where speed and quick gratification is commonplace, it would be foolish for any organization to not explore how they can benefit from the internet to further their business.
Let's take a look at some of the advantages of an internet business versus a offline business.
1) Minimal Running Costs
If your business is virtual, you won't have to get a store for it. What this means is you get rid of just about all your operation costs like rental, utility bills and also staff salary. At most, you will need to pay for the web hosting of your website and any programs that you may be using to help automate your business whenever possible, but these can be very minimal and the ROI extremely high.
2) Accesing An International Market From A Single Point Of Contact
Through a website, anyone can gain access to your products from all over the world. Compare that to a regular offline business. The traditional business most certainly have to open a shop where ever it hopes to conduct business in. This means 10 stores with all the expenses that come along with them if they wish to do business in 10 areas. If they want to conduct business across the world, then this implies hundreds of stores. Unless the organization is really very big, it is going to be very expensive.
When you run an internet business, it does not matter where you are in the world. You could still market to a global clientelle because people are able to access your website using their internet browser from around the globe.
This means you've got a shop on any computer with access to the internet!
3) Your Business Operates 24/7
There are absolutely no weekends, vacation days and even business hours for the internet. This means it may be night time in your location and you are sleeping peacefully but someone from the other part of the world can still purchase your products. As a result, you wake up to find that your bank balance has increased during the night.
4) You can Generate Passive Income
The aim of any internet business should always be to automate as far as possible. This allows the entrepreneur, that means you, don't need to be there in front of your computer to handle the many transactions from start to finish. Wise internet marketers invest a great deal on programs to computerize their business to make sure they don't have to be there to handle the many transactions.
5) Extremely Low Cost Startup
Starting an internet business is very, very affordable. All you need is buy a suitable url along with web hosting for your website. These you can get for a really low price. You can find free of charge services too but there are disadvantages using free services. You can look into trying out other applications to help make your business more efficient but if you don't want to do that at the startup period, that's fine as well. You can always start using those resources at a subsequent stage once your business is profitable.
To learn more about internet businesses and internet marketing, come to the Internet Marketing Intensive Seminar organized by Wealth Mastery Academy. Like our Facebook page to get the latest updates on events we organize.
There are plenty of advantages to having a business in cyberspace, not just for the regular lone entrepreneur, but also for large businesses who already have a powerful brand presence in their own market.
In this modern age where speed and quick gratification is commonplace, it would be foolish for any organization to not explore how they can benefit from the internet to further their business.
Let's take a look at some of the advantages of an internet business versus a offline business.
1) Minimal Running Costs
If your business is virtual, you won't have to get a store for it. What this means is you get rid of just about all your operation costs like rental, utility bills and also staff salary. At most, you will need to pay for the web hosting of your website and any programs that you may be using to help automate your business whenever possible, but these can be very minimal and the ROI extremely high.
2) Accesing An International Market From A Single Point Of Contact
Through a website, anyone can gain access to your products from all over the world. Compare that to a regular offline business. The traditional business most certainly have to open a shop where ever it hopes to conduct business in. This means 10 stores with all the expenses that come along with them if they wish to do business in 10 areas. If they want to conduct business across the world, then this implies hundreds of stores. Unless the organization is really very big, it is going to be very expensive.
When you run an internet business, it does not matter where you are in the world. You could still market to a global clientelle because people are able to access your website using their internet browser from around the globe.
This means you've got a shop on any computer with access to the internet!
3) Your Business Operates 24/7
There are absolutely no weekends, vacation days and even business hours for the internet. This means it may be night time in your location and you are sleeping peacefully but someone from the other part of the world can still purchase your products. As a result, you wake up to find that your bank balance has increased during the night.
4) You can Generate Passive Income
The aim of any internet business should always be to automate as far as possible. This allows the entrepreneur, that means you, don't need to be there in front of your computer to handle the many transactions from start to finish. Wise internet marketers invest a great deal on programs to computerize their business to make sure they don't have to be there to handle the many transactions.
5) Extremely Low Cost Startup
Starting an internet business is very, very affordable. All you need is buy a suitable url along with web hosting for your website. These you can get for a really low price. You can find free of charge services too but there are disadvantages using free services. You can look into trying out other applications to help make your business more efficient but if you don't want to do that at the startup period, that's fine as well. You can always start using those resources at a subsequent stage once your business is profitable.
To learn more about internet businesses and internet marketing, come to the Internet Marketing Intensive Seminar organized by Wealth Mastery Academy. Like our Facebook page to get the latest updates on events we organize.
Wednesday, June 12, 2013
Advantages Of Options Directional Trades
Options present excellent position management as well as risk management opportunities when using them to trade the market directionally. This goes way beyond the fundamental point in which a long position in a call or put option provides a complete maximum risk equal to the price of the option (in addition to commissions, naturally). This alone is very useful. What this article covers, however, are some useful little things you can do while keeping an option position to improve the profit and keep the risk well constrained.
Roll Up/Down
Almost all traders are familiar with the concept of a trailing stop where someone changes their protective exit as the market changes in favor of the trade. They use this tactic to lock in revenues. The same thing may be accomplished when one is trading options rather than the underlying. This is done by rolling one's position up or down strike prices depending on whether the trade is actually a long employing calls or short employing put options.
Below is a good example of a case study:
A long position in Seagate Technology (STX) had been initiated when the stock was dealing at around 21.50 based on the March 22.50 call options. These were bought at $0.80. The market bounced back throughout the subsequent few weeks, finally moving up above $24. At that point, a roll-up had been implemented by selling the March 22.50 calls at $2.60 and buying the March 25 calls at $1.40. This move served two purposes. The first is that it took $1.20 off of the table, cutting down the portfolio vulnerability and allowing for money to be used somewhere else. It also locked in a profit of $0.40 ($2.60 sales price minus the $0.80 purchase price for the 22.50 calls minus the $1.40 purchase price for the new 25 calls). At the same time, it doesn't affect the rest of the upside prospects for the trade. The two strikes would most likely profit comparably from any further increase in value in the price tag of STX shares.
In the event the portfolio vulnerability was considered fair at $2.60, an alternate plan of action might have been selling the March 22.50 calls instead of take any cash out, but instead roll all of it inside the March 25 calls. For example, if the position had been 10 options, selling the 22.50s would likely net $2600. That cash could have been utilized to purchase 18 of the 25 calls ($2600/$140 = 18.57). By doing so, one actually improves the upside possibility of the trade greatly. Of course, the full position is at stake, meaning one could hypothetically lose the entire $2600 invested, which is greater than could have been lost when the trade started.
Roll Forward
One of many problems with options is the limited duration they provide for keeping trades. If you are an intermediate to longer-term trader, this could be a significant hurdle. That said, however, in a style just like the roll up/down, if one desires to lengthen the holding time period of a position it can be done by rolling forward the expiration month.
Continuing with the STX example, we are able to take a look at rolling forward. That could be achieved by going from the March contract to the June one. As of the time of this writing, the March 25s are trading at $2.40 and the June 25s are at $3.60. There's the rub, though. As a result of lengthier timeframe to expiration, the June contract is priced significantly higher. This is why a roll forward is normally best accomplished with a roll up/down.
Take into account the prior roll-up in STX from the 22.50 call to the 25 call. If we were still in the former, and wished to both roll forward and up, we could jump to the June 25 call. The present price on the 22.50 option is $4.10. With the June 25 at $3.60, we could execute both the roll up and roll forward plus take $0.50 off the table. That isn't close to what we accomplished with the roll up, however it does lengthen the amount of time we're able to hold the position by three months. Whether or not that is really worth the trade-off depends upon the expected holding period for the trade.
The rolling of strike prices and expiration is something effortlessly executed. The transaction rates for options trades have decreased greatly for the individual trader in recent years. That uncovers a great many possibilities for playing the market directionally and also managing positions successfully.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Roll Up/Down
Almost all traders are familiar with the concept of a trailing stop where someone changes their protective exit as the market changes in favor of the trade. They use this tactic to lock in revenues. The same thing may be accomplished when one is trading options rather than the underlying. This is done by rolling one's position up or down strike prices depending on whether the trade is actually a long employing calls or short employing put options.
Below is a good example of a case study:
A long position in Seagate Technology (STX) had been initiated when the stock was dealing at around 21.50 based on the March 22.50 call options. These were bought at $0.80. The market bounced back throughout the subsequent few weeks, finally moving up above $24. At that point, a roll-up had been implemented by selling the March 22.50 calls at $2.60 and buying the March 25 calls at $1.40. This move served two purposes. The first is that it took $1.20 off of the table, cutting down the portfolio vulnerability and allowing for money to be used somewhere else. It also locked in a profit of $0.40 ($2.60 sales price minus the $0.80 purchase price for the 22.50 calls minus the $1.40 purchase price for the new 25 calls). At the same time, it doesn't affect the rest of the upside prospects for the trade. The two strikes would most likely profit comparably from any further increase in value in the price tag of STX shares.
In the event the portfolio vulnerability was considered fair at $2.60, an alternate plan of action might have been selling the March 22.50 calls instead of take any cash out, but instead roll all of it inside the March 25 calls. For example, if the position had been 10 options, selling the 22.50s would likely net $2600. That cash could have been utilized to purchase 18 of the 25 calls ($2600/$140 = 18.57). By doing so, one actually improves the upside possibility of the trade greatly. Of course, the full position is at stake, meaning one could hypothetically lose the entire $2600 invested, which is greater than could have been lost when the trade started.
Roll Forward
One of many problems with options is the limited duration they provide for keeping trades. If you are an intermediate to longer-term trader, this could be a significant hurdle. That said, however, in a style just like the roll up/down, if one desires to lengthen the holding time period of a position it can be done by rolling forward the expiration month.
Continuing with the STX example, we are able to take a look at rolling forward. That could be achieved by going from the March contract to the June one. As of the time of this writing, the March 25s are trading at $2.40 and the June 25s are at $3.60. There's the rub, though. As a result of lengthier timeframe to expiration, the June contract is priced significantly higher. This is why a roll forward is normally best accomplished with a roll up/down.
Take into account the prior roll-up in STX from the 22.50 call to the 25 call. If we were still in the former, and wished to both roll forward and up, we could jump to the June 25 call. The present price on the 22.50 option is $4.10. With the June 25 at $3.60, we could execute both the roll up and roll forward plus take $0.50 off the table. That isn't close to what we accomplished with the roll up, however it does lengthen the amount of time we're able to hold the position by three months. Whether or not that is really worth the trade-off depends upon the expected holding period for the trade.
The rolling of strike prices and expiration is something effortlessly executed. The transaction rates for options trades have decreased greatly for the individual trader in recent years. That uncovers a great many possibilities for playing the market directionally and also managing positions successfully.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Tuesday, June 11, 2013
4 Steps To Real Estate Investing Success!
Property investment is always fantastic and at times it might be red hot. When it's sizzling lots of property classes begin running across the country and many people spend thousands of dollars for investing education.
It really is startling to find out that of the many thousands of excited people who go to all these seminars approximately 5% buy even one investment house. Why? The property gurus sell the "sizzle" and make cashing in on real estate seem easy. The fact is that it can be simple, but is not easy.
Here's a quick plan that will make it possible for anyone to get started on building financial independence.
You will find basically four steps to investing in real estate:
1. Acquire real estate less than full market price. Without a doubt, people do sell real estate for less than the home's total value. The key is to understand that many property owners will only look at a purchase offer that is all cash and around 5% to 10% of the price tag.
The profitable investor finds financially troubled property owners who may have no other choice than to sell for less than the true market value. They may have lost their job or been unexpectedly transferred; they may be getting a divorce; they have been living over and above their income; the family could have been overwhelmed with medical bills and, not uncommonly in recent times, their funds went to support a substance abuse habit.
These are types of motivated sellers. They need to sell and they're going to settle for anything with the exception of the normal, all cash offer.
2. How can you find motivated sellers? You work at it! Like any business it is essential to develop a little marketing plan. One which is straightforward, but quite effective, is the one that was tested 75 years ago by the Fuller Brush company; door to door sales.
You are marketing your expertise as a real estate buyer to the people who must sell. Your are there as soon as they need you and you possess the expertise to help them work out at the very least a part of their problem. By using door to door prospecting you will learn more and buy more real estate more rapidly than any other strategy. Even so, most people simply will not walk door to door for three or perhaps four hours each week. OK, there are other techniques.
You can check out public notices for the foreclosure sales announcement. Meeting with a home owner soon after they've been given a notice that they may be about to lose their property enables you to deal with a really motivated seller. Other public notices that provide purchasing potentials include probate, divorce as well as bankruptcy. You can even follow the Homes For Sale listings in your local newspaper or even Internet site.
You can telephone the names found in these types of notices or, and this also may be the least time intensive, send out a postcard conveying your interest in acquiring their property. It will probably produce purchasing opportunities, simply not as many as personal contact.
3. After you've identified a motivated seller you need to understand how to frame proposals that come with benefits for both yourself as well as for the property owner. A great real estate investor swiftly discovers that this is simply not a business of stealing property, but of solving problems in a way that is beneficial to the seller.
The property owner is in a jam of sorts and you are in a position to help save them from open humiliation and, most frequently, provide them with at least a little bit money to have a fresh start.
No investor is able to to pay cash in every transaction. No one but Bill Gates has that much readily available money. You have to utilize innovative strategies for instance, leases, option and taking over mortgage repayments. Little or no cash is needed for all those deals. You will find plenty of reasonable priced educational product on those subjects in book stores or on EBay. The exact same education that seminars will sell for thousands of dollars.
4. Make profit when you buy! Under no circumstances invest until you have meticulously checked precisely how you will make profit. In case you keep it as a long term investment does the monthly rental revenue more than take care of the monthly loan payment? Are you going to sell off the deal to a different investor for quick cash? Will you do a little fix-up and sell the property for full value? Are you going to quickly swap it to get a much more attractive property? Create a plan before you buy.
These are the four steps that even a part-time investor can execute in three to four hours each week. What's the absent ingredient? Your own persistence and perseverance. When you will unfailingly stick to the strategy for a few months you will be well on your way to financial independence.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
It really is startling to find out that of the many thousands of excited people who go to all these seminars approximately 5% buy even one investment house. Why? The property gurus sell the "sizzle" and make cashing in on real estate seem easy. The fact is that it can be simple, but is not easy.
Here's a quick plan that will make it possible for anyone to get started on building financial independence.
You will find basically four steps to investing in real estate:
1. Acquire real estate less than full market price. Without a doubt, people do sell real estate for less than the home's total value. The key is to understand that many property owners will only look at a purchase offer that is all cash and around 5% to 10% of the price tag.
The profitable investor finds financially troubled property owners who may have no other choice than to sell for less than the true market value. They may have lost their job or been unexpectedly transferred; they may be getting a divorce; they have been living over and above their income; the family could have been overwhelmed with medical bills and, not uncommonly in recent times, their funds went to support a substance abuse habit.
These are types of motivated sellers. They need to sell and they're going to settle for anything with the exception of the normal, all cash offer.
2. How can you find motivated sellers? You work at it! Like any business it is essential to develop a little marketing plan. One which is straightforward, but quite effective, is the one that was tested 75 years ago by the Fuller Brush company; door to door sales.
You are marketing your expertise as a real estate buyer to the people who must sell. Your are there as soon as they need you and you possess the expertise to help them work out at the very least a part of their problem. By using door to door prospecting you will learn more and buy more real estate more rapidly than any other strategy. Even so, most people simply will not walk door to door for three or perhaps four hours each week. OK, there are other techniques.
You can check out public notices for the foreclosure sales announcement. Meeting with a home owner soon after they've been given a notice that they may be about to lose their property enables you to deal with a really motivated seller. Other public notices that provide purchasing potentials include probate, divorce as well as bankruptcy. You can even follow the Homes For Sale listings in your local newspaper or even Internet site.
You can telephone the names found in these types of notices or, and this also may be the least time intensive, send out a postcard conveying your interest in acquiring their property. It will probably produce purchasing opportunities, simply not as many as personal contact.
3. After you've identified a motivated seller you need to understand how to frame proposals that come with benefits for both yourself as well as for the property owner. A great real estate investor swiftly discovers that this is simply not a business of stealing property, but of solving problems in a way that is beneficial to the seller.
The property owner is in a jam of sorts and you are in a position to help save them from open humiliation and, most frequently, provide them with at least a little bit money to have a fresh start.
No investor is able to to pay cash in every transaction. No one but Bill Gates has that much readily available money. You have to utilize innovative strategies for instance, leases, option and taking over mortgage repayments. Little or no cash is needed for all those deals. You will find plenty of reasonable priced educational product on those subjects in book stores or on EBay. The exact same education that seminars will sell for thousands of dollars.
4. Make profit when you buy! Under no circumstances invest until you have meticulously checked precisely how you will make profit. In case you keep it as a long term investment does the monthly rental revenue more than take care of the monthly loan payment? Are you going to sell off the deal to a different investor for quick cash? Will you do a little fix-up and sell the property for full value? Are you going to quickly swap it to get a much more attractive property? Create a plan before you buy.
These are the four steps that even a part-time investor can execute in three to four hours each week. What's the absent ingredient? Your own persistence and perseverance. When you will unfailingly stick to the strategy for a few months you will be well on your way to financial independence.
Wealth Mastery Academy aims to provide wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Monday, June 3, 2013
5 Tips To Examining Your Investment Property
Finding a bargain investment property on paper is only half of the process of property investment. The other half of real estate investing is going down to the property to examine the real estate investment property physically for defects either in terms of the construction and legal title and other liens that can be on the property. You do not want to spend lots of legal costs later to undo the bad lemon you bought into. This article will highlight five possible things to consider when searching for your next investment property.
Firstly, unless you find a property that is really run down and you want to tear it down to its foundations, you want to look out for properties that might have potential electrical and water piping problems. The reason why this is critical is that, wiring and water piping is usually hidden behind walls and other furniture fixtures and repairing them can be a very costly affair since you have to hack into the walls and run the piping and wiring if the problem is very serious. If you are new to property investing try to bring an electrical engineer along with you when you are doing some property inspection.
Secondly, foundation problems are usually harder to spot. When walking around the property, look for cracks appearing at the side of the house and the foundation that goes into the ground. Look for large unusual holes found at the side of the property and cracks on the exterior paint of the building. You might want to bring a civil engineer and a contractor along to figure out how much it would cost to fix the property if you suspect the repairs involved will be substantial. You can also bring them along to give a "grim estimate" to the house owner and bring down the cost of the property.
Thirdly, roofing problems can be a persistent nightmare to you and your potential tenant if you are purchasing the real estate for tenancy purposes. When inspecting the house, look around the ceiling near the windows and around the edges of the walls to look for new paint or yellow spots or cracks with water in them. Most sellers would be smart enough to eliminate the water bubbles after a heavy rain when trying to sell the property, but it is always important to figure out if there is a major leaking roof which might cost you a lot into repairing it. Use this defect to negotiate the price of the property further if you are interested in the property.
Fourth, another reason why the investment property in question might be a bargain might be because there are legal problems associated with it. Common ones include, multiple owners that cannot agree whether to sell or not. Litigation here would be futile and you should avoid such property once you learn about it.
Another problem might be a lack of clean title. Did you know that the seller can be selling you only the building without the land or maybe there are existing tax liens on your property or some other liens that can prevent you from getting good title to the property? Spending some time chatting with a reliable real estate attorney to learn about common real estate problems in your area can save you lots of legal problems later.
Fifth, bankruptcy of your seller or one of the part owners of your real estate may depending on the legal proceedings of your state affect your ability to transfer title quickly. Most states make it a requirement that the receiver of the bankrupt has to agree so pay careful attention to the bankruptcy legislation of your state. That being said, sometimes the banks are willing to sell you at a bargain so as to recover the bad debts quickly so do your homework before purchasing such an investment property.
In conclusion, these five pointers can be used as a starting point for you to evaluate your property investment. Spend some time to think rationally about the properties that you have seen and see if they have any of the above flaws and consider if you want to continue purchasing them and whether the costs that you may incur in fixing them will justify the discount of the property to the market value. Above all, take massive action today and pursue your property investment aspirations.
Wealth Mastery Academy aims to provide real wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
Firstly, unless you find a property that is really run down and you want to tear it down to its foundations, you want to look out for properties that might have potential electrical and water piping problems. The reason why this is critical is that, wiring and water piping is usually hidden behind walls and other furniture fixtures and repairing them can be a very costly affair since you have to hack into the walls and run the piping and wiring if the problem is very serious. If you are new to property investing try to bring an electrical engineer along with you when you are doing some property inspection.
Secondly, foundation problems are usually harder to spot. When walking around the property, look for cracks appearing at the side of the house and the foundation that goes into the ground. Look for large unusual holes found at the side of the property and cracks on the exterior paint of the building. You might want to bring a civil engineer and a contractor along to figure out how much it would cost to fix the property if you suspect the repairs involved will be substantial. You can also bring them along to give a "grim estimate" to the house owner and bring down the cost of the property.
Thirdly, roofing problems can be a persistent nightmare to you and your potential tenant if you are purchasing the real estate for tenancy purposes. When inspecting the house, look around the ceiling near the windows and around the edges of the walls to look for new paint or yellow spots or cracks with water in them. Most sellers would be smart enough to eliminate the water bubbles after a heavy rain when trying to sell the property, but it is always important to figure out if there is a major leaking roof which might cost you a lot into repairing it. Use this defect to negotiate the price of the property further if you are interested in the property.
Fourth, another reason why the investment property in question might be a bargain might be because there are legal problems associated with it. Common ones include, multiple owners that cannot agree whether to sell or not. Litigation here would be futile and you should avoid such property once you learn about it.
Another problem might be a lack of clean title. Did you know that the seller can be selling you only the building without the land or maybe there are existing tax liens on your property or some other liens that can prevent you from getting good title to the property? Spending some time chatting with a reliable real estate attorney to learn about common real estate problems in your area can save you lots of legal problems later.
Fifth, bankruptcy of your seller or one of the part owners of your real estate may depending on the legal proceedings of your state affect your ability to transfer title quickly. Most states make it a requirement that the receiver of the bankrupt has to agree so pay careful attention to the bankruptcy legislation of your state. That being said, sometimes the banks are willing to sell you at a bargain so as to recover the bad debts quickly so do your homework before purchasing such an investment property.
In conclusion, these five pointers can be used as a starting point for you to evaluate your property investment. Spend some time to think rationally about the properties that you have seen and see if they have any of the above flaws and consider if you want to continue purchasing them and whether the costs that you may incur in fixing them will justify the discount of the property to the market value. Above all, take massive action today and pursue your property investment aspirations.
Wealth Mastery Academy aims to provide real wealth creation strategies to the masses to achieve financial freedom. Like our Facebook page to get the latest updates on our upcoming events.
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