real estate

Real Estate Investing for Beginners: Tips That Can Help Beginners

Real estate investing for beginners can seem a bit intimidating, and it may be easy to get lost in the sounds and lights of the various books, blogs and television gurus offering advice to beginners. To help you start your journey to find financial freedom through real estate, I have come up with some real estate investing for beginners tips that will be very beneficial to you.

Tips on for beginner real estate investors

Be resolved

You should always remember that investing in real estate is not a get rich quick scheme. You will have to struggle to become a successful investor. Know that you will make mistakes and fail at times but take those experiences and turn them into lessons that will help you improve your skills.

Do your homework

Some of the real estate investors out there jump in with both feet not sure of where they are going to land. At times, these investors succeed while most of them lose a lot of money. Avoid this by studying the niche you want to invest in and learn everything you can about that niche.

However, remember that you don’t have to know everything about real estate investing. Just focus on what matters so that you don’t get overwhelmed with knowledge.

Connect with local real estate investors

Look for real estate investors near you and ask them to show you some of their properties. And since most of the investors out there like showing off their accomplishments, let them tell you about their experience as this will help you know more about real estate. Local investors usually know what works in your community and what does not work. This means that what they tell you will benefit you a lot.

Write out your business plan

You don’t have to write a super formal business plan. What are your goals? How are you going to achieve these goals? Remember that it may be difficult to succeed without having a roadmap.

Learn to sacrifice

If you want to succeed in the real estate industry, you will have to learn to sacrifice. Investing in real estate is rewarding, but you have to know that it will not always be easy. You may have to sacrifice your money, time and opportunities to achieve financial freedom. As we said earlier, this is not a get rich quick scheme.

Learn to trust basic math

Real estate investing involves basic math that is not difficult to learn. Use a basic spreadsheet to help you analyze a deal or download an investment property calculator to help you explain each every deal you do. After understanding the math, don’t deviate from it. Trust it and don’t let your emotions get involved.

Treat your real estate investment as a serious business

Always remember that real estate is a business. You can achieve this by keeping it organized, building systems that will manage your life and try as much as you can to improve your efficiency. Most of the real estate investors who get burned out treat real estate investing as a job or hobby. Keep in mind that you are a business owner and you should ensure that you manage your business to the standard which suits you best.

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Investing In Your Home With Insurance

Every policy geared at insuring your home is going to be a little different depending on the insurance provider you go with, the level of coverage you choose, and the diligence with which you track changes in what is offered by the company that insures you. You’re simply going to have to go over your policy with a fine-tooth comb in order to see exactly what is covered, assuming that anything not expressly stated is not going to be covered.

However, that could leave a pretty large list of things that would not fall under your policy, and that can be a bit disconcerting considering how much you’re paying to insure your biggest asset: your house. So here are just a few things that may not be covered and what you can do to protect your home.

Natural disasters

In many cases, natural disasters like floods, earthquakes, tornadoes, and so on are not covered by a standard homeowner’s insurance policy. Although some areas that are prone to these disasters will require you to carry this insurance as an addition to your homeowner’s policy, low-risk areas generally won’t call for such coverage, meaning your policy provider may not even make the recommendation. However, you may still experience these natural disasters, so you should talk to your provider about the likelihood of such events and whether or not you should take out a policy that covers them.

Liability

Did you know that if guests or workers in your home suffer accident or injury on the premises you could be responsible for their medical bills and any legal action they take against you? Wouldn’t you prefer to be covered by insurance in case of such events? Suppose your dog bites the mailman, a workman falls off the roof, or your child’s friend leaps off the top step like a superhero only to break his leg on the way down. Each of these occurrences could result in a hefty payout on your part, so find out if accident liability is covered by your policy instead of assuming that it is (possibly wrongly).

Home-based business

If you run a business out of your home, there’s a good chance that it isn’t covered by your homeowner’s insurance. While working online as a personal assistant won’t require you to take on any additions to your policy, businesses that require you to manufacture goods in your home or have employees working with you on your property could pose a risk since they almost certainly won’t be covered. And what if you are sued by a client or consumer? How will you pay for a settlement against you? These are all things you need to talk to your insurance provider about in order to make sure your business is covered.

Assets in the home

Although most policies have some provisions to cover valuables in the home in case of theft or some sort of natural disaster, not all of them offer this addendum, while some require you to report on assets beforehand. Even then, they may require proof such as photographs or serial numbers. You need to know what is covered and what is required for home insurance before disaster strikes.

Future assets

Most people buy a home with the intention of waiting for the value to appreciate so that it can be sold for a profit. But your insurance may not account for this adequately. For this reason, you may want to opt for some kind of blanket policy that covers future appreciation and accumulation of assets so that you don’t wind up with less than you bargained for.

 

See our resources for agencies willing and able to assist in any way they can.

 

Investing Myths Are Tough

Investing Myths

Myths are practices and beliefs perceived by many to be true. These statements are not real and can result in serious losses or damages. There are many investing myths in the market that bar or encourage investors from venturing in a certain field.
Relieving yourself from these myths helps a lot in that you will soberly understand the market.

Here are some common myths that have gained a widespread popularity that many perceive them as the truth:

Investment is Like Gambling

This myth compares investment as gambling. It states the outcome is not guaranteed. It further claims that investment has a lot of risks. This myth discourages people from investing in various fields. Honestly speaking, investment is different from gambling in that the outcome can be predicted. Secondly; gambling is considered as a leisure activity, whereas investment is a serious business activity. The power of investment lies behind effective planning.

There Are Hidden Investment Secrets That Few People Know

This statement is wrong. Successful business people have always highlighted the secret behind investment is careful planning, coordination and coming up with effective strategies. These three factors are what successful investors rely upon reap maximum profit from their investments.

Older people can’t invest in high-risk business activities

This is a pure lie. Any person can invest in any type of business activity he/she deems fit, provided there is sufficient funding. This widespread myth has discouraged many elderly people from investing. There is no age limit on when a person should stop investing.

Only purchase stock, when there is a lot of hype about a Company

The above myth has resulted into many investors losing their hard earned money. A person needs to check out the performance of a Company before purchasing any stock. The hype of a Company can mislead you into thinking the selected company is performing better. There are many underground companies that perform better than hyped Companies.

You need a lot of money to invest

There is no on who hasn’t come across this myth. This myth suggests you need to be rich in order to be an investor. That is not the case. There are many business investments that don’t require a lot of capital to start. This myth has barred many people from conducting their businesses.

Investments take a lot of time before delivering profits

This myth has stuck in many people’s mind. Investments are different. There are those that take time before a person starts reaping profit, whereas there are those that deliver instant results.

Differentiating myths from facts

There are some investment myths that are difficult to identify. Regularly consult professional investors for comprehensive information and guidance on investing myths. Alternatively; you can attend investments seminars to help identify these myths. Lastly; you can research more on these myths.

Investing Myths Can Be Hard To Break

Investment isn’t difficult as most people think. It all depends on the strategies you choose. Myths are dangerous in that they will not only make you incur losses, but can permanently crumple down your investment. Carefully plan for any investment, before commencing any operations.

Investing Money in MicroCap Stocks

Microcap stocks

Microcap is one of the most profitable investments in the market. These stocks mostly apply to Companies or businesses with low capital. Companies with microcap stocks operate on limited assets. Let us kick off our discussion by understanding what microcap stocks are. These stocks are categorized based on market capitalization. This is the market value of a company’s shares.

Investing in Microcap stocks

These stocks are almost similar to other types of stocks, in that they can be traded. However; there are a couple of differences worth checking out.

 

Differences between Microcap and large Companies stocks:

• These stocks have been rated less stable and riskier when compared to those of large Companies.
• Most microcap stocks are purchased or sold in pink sheets, which have lower listing standards than the normal stock exchange market center. As a result; potential investors are provided little details on the selected stock. This makes it difficult for investors to make upright judgments.
• It is difficult to sell microcap stocks to help minimize risks.
Some investors avoid these stocks for various reasons; some stating it is a risky investment. That is not the case. A person can easily generate quick profit. Here are some few things people need to understand before investing in microcap stocks:
• Thorough research is necessary. As earlier stated, investors are provided with few details on a selected stock. Research helps a person understand his/her selected Company. This makes easy for an investor to predict the future.
• Microcap stock prices vary. It is important to select a stock you can comfortably afford and manage to lose.
• Set a profit limit. Most people end up making huge losses because of setting very high targets compared to their initial investments.

Managing Your Stocks

Management of microcap stocks is similar to that of ordinary shares. A person needs to set a sale period of his/her microcap stocks. This will help evaluate how frequently a person needs to monitor his/her shares.
The market will not always go your way. There are cases where microcap stock drop in value. This is normal. Constant monitoring of your selected stock in the market will help you determine if your microcap stocks are making profit or its time to sell.

Current Trends in the Stock Market

A person no longer has to manage his microcap stocks on his/her own. There is an option of hiring an agent to handle all transactions on your behalf. They will advise you on when to buy or sale your stock. In addition, the agent will help you understand the current stock market.
There has been emergence of fake Companies emerging in the market selling fake microcap stocks. As a result; a person must countercheck the selected Company and ensure it is dully registered. This reduces the chances of transacting with a fake Company.

Moving on, people are drifting away from the tradition of purchasing only a Company’s microcap stocks. Most investors are spreading risks across multiple Companies. This is some form of security that aims at minimizing losses.
Microcap stocks are worth investing in as they can generate huge profits.

Are Mutual Funds Right for You

Are Mutual Funds Right for You?

What is a Mutual Fund?

A Mutual fund is an act of pooling money from many people and offering professional management for them. You get charged a fee for this service. Mutual funds portfolio is a collection of securities. Those investing in them are the shareholders. There are thousands of mutual funds out there with varied objectives. Mutual funds invest in bonds, stocks or both. Some fund companies are geared towards earning the investor interest while others target growth.  Here is a closer look at mutual funds.

Mutual funds have a variety of advantages that make them right for you as an investor:

Mutual funds provide Diversification

Mutual funds operate by pooling of money from different investors. Through this method, you buy into a pool of investment. There exists a diverse variety of investment opportunities either through bonds or stocks. While some stocks will perform highly, some may not do so well. The good performers from your investment will offset the bad ones. This is the mutual fund diversification benefit.

Mutual Funds are Easy to Transact

You might develop an urgent need for money tied up in a mutual fund. This can be freed by selling the shares held. The services of selling and buying of mutual funds are available from a wide range of institutions. Trust companies, Investment firms, Credit Unions, Banks or financial planning firms can be used to transact. It gives you the freedom to access your money when you need it. However, you need to transact wisely to avoid selling at a loss.

Professional Fund Management

When money from different investors is pooled together, it is left at the hands of a portfolio manager to manage. The portfolio manager makes all the decisions on where the money will be invested. He decides when to buy or sell. This means that people without investment or management skills can comfortably invest in mutual funds. Even for people with financial management skills, mutual fund investment saves them time.

Wide Variety of Investments to Choose from

Mutual funds have different goals and objectives. Equity funds present a higher risk but offer greater potential to give returns. If you are a youth still with many years to work and invest, this may be a great opportunity to invest in.

A balanced mutual fund could be more suited to you if you are a mid-career investor. It offers a balance between the risk and return. Moderate risk will give you moderate returns.

A bond fund might be the best investment for you if you are approaching retirement. It will give you a fixed income while presenting the lowest risk

Bottom Line

Mutual funds are a right investment choice. Choose them wisely depending on your goal and objectives. Enjoy as your investment is being managed by professionals and watch it grow.

Do You Have Enough Invested for Your Retirement

Do You Have Enough Invested for Your Retirement?

Changes in the economy can affect your retirement plans. When you start to plan for your retirement, you will need to list your goals and how you plan to achieve them. For others, retirement is a long way to go but for some, it is just a few seasons to go. It doesn’t matter how far or how near your retirement is, what is important is to have enough savings for your retirement.

The only way you can be assured that you will have enough money to live comfortably is to start planning at an early age. Many people are used to a certain standard of living and it is difficult to drop it low. You should take into account the Social Security benefits you will receive but the important thing here is the age you will be able to receive full benefits. This means that your retirement plan should consist of other investments and savings plans.There are various options for planning your retirement.

Net worth Utilization

It is one of the basic principles of planning your retirement by calculating your net worth. Well before your retirement is due, you should chalk out the total income that you are likely to receive. Ensure you pay off any outstanding loan amount and keep a small balance for yourself.  Saving in children can also serve in utilizing your funds. Well before your retirement is due, you should chalk out the total income that you are likely to receive.

Investing

Investing your money in money market accounts, stock market, certificate of deposits and mutual funds. It is a risky way but you can make your money grow over time. Investing in share market is also a better way to safeguard your money and yield high returns. Profits are made as share prices rise which will take care of your financial stability. Buying properties and homes at low prices and selling them at a later date when the rate is high is also a profiteering option and can fetch you money so as to secure your future.

A 401(k) Option

401(K) is mostly offered by employers but you can get one on your own. You can seek advice from a financial planner to help you. 401ks also have the unique benefit of contribution matches from your employer to help you succeed.

Attending Seminars

Retirement seminars can help you learn about basic principles of investing your retirement. Most companies organize these seminars to aid people in knowing how to live effectively after retirement.

Planning for one’s retirement must start as early as possible. It doesn’t matter if you are saving a few dollars a month it all counts. Your savings should also be growing year by year in a way that will satisfy your target down the line.