Common Mistakes To Avoid While Flipping Houses
November 29, 2008
With so many commercials and shows on flipping house it is easy to think that it is an easy money making scheme. Just like any trade you needs skill and time to avoid common mistakes make while flipping houses. This blog examines some of those mistakes and how to avoid them.
- Just like any field it is important to educate yourself about real estate and flipping techniques. This could be from magazines or real estate education programs. Also research the market to know what people are willing to buy houses for or how safe the community is.
- If you intend to do some remodeling to increase the value get more bids never less than three bids. A deadline for the completion of the job, with penalties, should have been written in the contract. Also make sure they are licensed and have insurance and check out their references.
- Look for distressed properties. Those are ones that the seller is “desperate to sell” for reasons such as: divorce, bankruptcy, death, poor condition of the property, late on payments or other. This offers much profit margins and room for negotiate.
- Network, network, and network this has saved me a great. They are people who have been there and done it for more than 10 years. They have made a fair share of mistakes and are willing to help you avoid them so reach out. You can even partner up with these experience real estate investors and shorten your learning curve.
Mistakes made during flipping can be very costly yet they are can be avoided. While the above discussed tips begins your research always be on the lookout.
Six Indicators To Business Action Plans
November 29, 2008
As businesses ushers in a new year it is a good time to look at indicator to their business plans. Reflecting on the market environment so as to decide which indicators to implement or incorporate. This blog lists a few indicators that can be incorporate
- Time Frame (should not exceed 12 months)
- Company Name
- Core Foundational Business Statements (Values, Vision & Mission)
- Tag Line or Unique Selling Position
- Dashboard of Key Performance Indicators
- Goal Categories
- Goals for each goal category including target date and completion date
Indicators to business action plans help one think different. You learn to think in terms of actions required on your part to succeed instead of just wishing things were different.<–>
Three Tips To Embrace As You Adopt Successful Business Strategies In An Economic Downturn.
November 27, 2008
To successful adopt business strategies during this down times businesses need to embrace the strong spirit. The cornerstone of entrepreneurship is hope, opportunity and possibilities. I found some tips that are working for me and would like to share (more…)
Creating Passive Income During Recession
November 27, 2008
With unemployment rate at 6.2% many people are now looking to create passive income. This is either in addition to their jobs or for the unemployed, as their only source of income. One of the latest ways of achieving passive income is by turning regular store customers into passive income producers.
The new Gig is Dubli.com which is being referred to as the next e-bay. DubLi.com which is a popular reverse-auction site first born in Europe. Based on the recent growth of DubLi Europe, experts have projected that more than 100 Americans will become DubLi millionaires by 2010. This business is not only attracting individuals and small business owners but appealing to professionals like dentists, doctors.
In this downturn economy it is important to explore different options of creating passive income. DubLi provides a new online business opportunities, and unique ways to securing financial futures
What To Include In a Pre-foreclosure Letter
November 25, 2008
The government is attempting to assist in the foreclosure situation or should l say mess . This necessitates individual to be conversant with writing a pre-foreclosure letter and the required documentation. Recently the government has decided to inject some $20 billion into Citigroup and back more than $300 billion of toxic assets on the banks. (more…)
Five Ways of Improving Cashflow Formula
November 25, 2008
Cash flow formula looks at ways of managing the influx and outflux of cash. In this tightening economic periods we all need to have some cash flow formula. The aim is this blog is to look at some internal areas that one can focus to better manage cash flow. This ideas not only apply to business but also personal finance (more…)
Five Investment Themes In Turbulent Times
November 23, 2008
In this turbulent times systematic investments plans is that it helps to average out your investments to the ups and downs of the equity market. Investors do not like a range-bound, highly volatile market, which are marked by spikes and falls at regular intervals. The future is not predictable hence the need to be armed with some investment themes. This blog looks at five investment themes which may help you to beat the market blues over the next six months.
Defensive positioning
It is better to go for a defensive positioning. If you wish to dabble in the stock markets, then better buy defensive sector stocks - FMCG, pharma, healthcare and information technology.
You should opt for large-cap blue-chip liquid stocks, as in a tough macro economic environment, these stocks can withstand pressures. The focus should be to identify stocks in this space which are quoting at attractive valuations, without trying to time the market.
Stay with cash
If you think you don’t belong to the first category, are cautious about your investments but still you want to get the best out of the equity markets, and then you should better spend the next six months piling up cash. Over the near term, markets will remain volatile due to multiple factors such as policy responses to rising inflation ahead of national elections, absence of FII flows until the global scenario improves and earnings growth moderation. Further, growing strains amongst the ruling coalition pose additional uncertainty for the markets. In this scenario, analysts think it won’t be a bad idea to stay with cash, which you can accumulate to your advantage in the long-term, particularly till the market stabilizes after the general elections.
Capital Protection
If the first two themes don’t excite you, and you are an investor who wants to enjoy the best of both equity and debt markets, then you should opt for structured products with capital protection. The advantage of investing in a capital protection product is that it allows participation in the stock markets without the accompanying worries of capital erosion. Typically, capital protection funds invest up to 20% in equity. Thus, not only your portfolio benefits from a reduced credit and interest rate risks, but also gains from the current high yields. In a nutshell, it acts as a hedge against a difficult market situation.
Value Investing
If you are an aggressive investor, then probably your investment outlook should be to do value picking in the stock markets. In the current market scenario, analysts believe that quality stocks across sectors will clock relatively good performance as investor focus returns to fundamentals. You should slip into the contrarian investing style, buying stocks that are currently trading below their net asset values.
Systematic Route
Last but not the least; your investment theme should be one which includes a disciplined approach to investing. Markets are expected to be cyclical and in such a scenario, analysts recommend that either you can reduce the risk of equities by increasing your holding period or invest regularly through systematic investment plans. It is advisable to avoid momentum and concentrated bets in a range bound market. The advantage with systematic plans is that it helps to average out your investments to the ups and downs of the equity market.
referenced
Just play it SAFE in turbulent stock market times
Five Concerns Related To Investment Objectives Of Long Term Funds
November 22, 2008
Five Concerns Related To Investment Objectives Of Long Term Funds
The investment objective of long term funds is that it yields a higher return. This can only be achieved if the funds is left to grow over a period of time usually ten years and above. However with the recent fall in stock prices it is important to be aware of risks associated with investments.
In an effort to address the issue of risk, certain concerns have been identified, including but not limited to: potential loss of capital, volatility of returns, default or bankruptcy, liquidity, diversification, and leverage. To a varying degree, each of these concerns is addressed implicitly or explicitly in different sections of these guidelines, but for clarity, they are summarized as follows:
- Capital Loss Preservation of the value of capital (in real terms) is of major concern regardless of whether price action is due to the market, a sector or a particular issue - and whether based on technical or fundamental considerations.
- Volatility Portfolio exposure to such volatility is expected to be limited as a reflection of the need to preserve capital and achieve consistent returns.
- Default Only securities of financially sound companies are expected to be used in a portfolio.
- Liquidity Portfolio positions should be issues that are publicly traded in sufficient volume to facilitate, under most market conditions, prompt sale without severe market price effect.
- Diversification The portfolio is to be well-diversified such that no single catastrophic outcome in a single security will compromise the capital preservation objective. Concentration in any one issue, issuer, industry or geographic area is to be avoided.
- Leverage Under no circumstances shall the portfolio employ leverage referenced “http://www.uwsa.edu/tfunds/ltfund.html”
- Ascertain your investment horizon.
- Decide on the periodicity of investment.
- Determine the amount you can comfortably invest in a SIP periodically.
how to evaluate the investment objectives of trust funds
November 20, 2008
The investment objectives of funds require time. Usually to evaluate performance a fund will be measured over a four year period. The trust funds at the university of wisconsin had this to say about trust funds.
The investment objectives for the total fund are to provide real return/investment return net of endowment spending plan distribution over an extended period of time. For evaluation purposes, the achievement of the Funds’ performance objectives will be measured over a four-year time period, a period generally representative of a full investment market cycle. The four-year measurement period shall be computed on a 48 month moving average basis.
Referenced http://www.uwsa.edu/tfunds/ltfund.html
Reasons why systematic investment plans are a better option
November 19, 2008
Systematic investment plans are part of some of the investment techniques which aim at averaging out your investment value over a given period of time, with a regular investment in small amounts at regular periods of time. This is especially so in this volatile stock markets.
First identify your investment goals and then go for an investment plan. Here are a few points that can help:
Points to consider in a investment plan
• Pick a scheme according to your risk profile.
Systematic investment plan is the best way to enter a mutual fund. is via an SIP. To get the benefit of an systematic investment plan, think of at least a three-year time frame when you won’t touch your money.
