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Tuesday, December 22, 2009

Can Flipping My Investment Property Work For Me?

By Cody Scholberg

When it comes down to it, flipping investment properties is not really investing. The thing about it is that it can be a very good strategy to go along with the "buy and hold" concept. The concept of flipping your properties can be very profitable if done correctly. What I am referring to when I say flipping property, is the concept of buying property with the intention of selling it right away to make a profit right away.

In order to see any means of revenue from engaging in flipping, you are being forced to put more money into your investment. Basically, your having to start off with high revenue just to clear any means of a profit when you engage in flipping any home.

However, if you are like millions of other Americans that get their rocks off watching the various shows that show people avidly flipping homes then you have a genuine idea of what goes into remodeling a property. You can make a substantial profit simply buying a home and flipping it, if the flip is done correctly. However, if you flip an investment property and it is not done accordingly, you are risking the chance of being out a lot of money.

If you opt to buy investment properties with your mind on the idea of the long term gain of your investment, you will end up with a passive income. This income can give you a substantial amount of money in which you can use to retire, or you can transfer the funds over to your family for generations to come.

When it comes to flipping a home, there is one question that you need to ask yourself. In your opinion, would it be better to receive money now for your investment or in the future? A lot of people boisterously answer this question saying they want their money in the quickest amount of time possible which is inadvertently right now. Flipping can allow you to make a large amount of money in an extremely short period of time, as long as the flip is done correctly. However, you need to be aware that there are some instances when people did not perform a flip right and ended up losing a lot of money.

Plus since you are selling the home that you purchased, you don't have to worry about rental contracts or having to deal with tenants that will be residing in your home. You simply buy the property for a low price, and sell it for a higher price in order to make your money back right away. However, one rule of thumb, before you get involved in flipping homes you need to learn all the stipulations that go along with the process. - 23221

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Residential Real Estate The Place To Start

By Cody Scholberg

When first starting out with real estate investing, it is wise to start with residential property. You will be more familiar with this type of property compared to the other types. You will be able to know if the home is messing vital rooms or parts such as the front room or the kitchen. With commercial property, you may not be so familiar with the essential areas so you will not know what to look for or what potential buyers require.

Commercial real estate has its own complexities whether it is retail, office space, or industrial real estate. You have different types of business contracts that are different and more detailed compared to residential real estate. Residential real estate includes single-family dwellings, condominiums, duplexes, town houses, and apartments. With each type of residential real estate, you will be dealing with tenants. Realize the tenants can call you at anytime to complain about the residence. Tenants generally do not care about the residence's condition only when things are not working properly. Dealing with tenants requires having good people skills as well as knowledge about the type of investment.

Normally when you deal with residential properties, you will consistently have a positive flow of income coming in every single month from your investment. However, a lot of people hesitate to get involved with investment properties that are in residential places because they do not want to have to take on the extra responsibilities that come along with their investment.

However, there are some good points to think about when it comes to investing in residential properties. Banks are normally open to lending out up to 90% on residential properties as opposed to commercial properties banks normally only lend out about 70% of the initial funds.

Residential properties will continue to pay for themselves. You will consistently have tenants in your dwelling, which means you will always have an extra source of income coming in every single month. However, the biggest drawback that comes into the picture when you are investing in residential properties is the fact that you will take on the role of a landlord. You will be responsible for all repairs as well as maintenance that has to be done on the home while a tenant is occupying it.

You will also need to ensure that after a tenant moves out that the residence is in a decent condition so you can rent it out again. Residential properties do take a lot of work; however you will reap the benefits of your investment when you invest in these properties. - 23221

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RV Rentals Investments vs Real Estate Rental Investments

By Mike Williams

Motorhome rentals are on the rise. RV Rentals Nationwide's new national reservation center has been overwhelmed by motorhome reservation request and they are now seeking owners of motorhomes, travel trailers, and coaches to fill the demand.

RV Rentals Nationwide specializes in bringing the RV rental to the customer and was able to capture a large portion of the travel trailer rental market in Oklahoma in less than 2 years. Since then RV Rentals Nationwide of Oklahoma in now allowing RV renters to tow units on there own as well deliver rv rental unit to the campsite but the demand for Motorhomes / Coaches are on the rise. RV Rentals Nationwide receives thousands of requests every month for people wanting to rent a rv and drive a motorhome to many different events such as NASCAR, Church events, disaster relief and many other situations that RV Rentals Nationwide has always been involved in.

RV Rentals Nationwide has been referring allot of the business out but in January of 2007 RV Rentals Nationwide made the major decision to create its own National RV Affiliate / Owner operator program allowing RV owners that don't use their RV that much the opportunity to get a piece of the RV Rental and Motorhome Rental industry. RV Rentals Nationwide is creating a special site for RV Owners to sign up as an affiliate and to list there RV Motorhome and travel trailer on a state of the art RV reservation system. RV owners will be able to log in and upload all the pictures of the RV to the Reservation website for the world to see. RV owners will also be given the option to register as an owner or owner operator which will allow the owner of a travel trailer the option to deliver their trailer directly to the campsite of a renter that is not able to pull a travel trailer. This option will put even more money into the pockets of the RV Owner.

Real estate investors have been contacting RV Rentals Nationwide to get a piece of the pie as well. "This is better than the Real Estate Business" Say Real estate Investors.. Motorhomes, Class A, Class B, and Class C rent out about 11 to 12 months of the year as were travel trailer are about 6 to 7 month of the year. RV rental property is insured on million dollar RV Rental policies. RV Renters are required to put up a damage deposit by credit card to make this investment a zero risk investment.

Allot of people are buying real-estate left and right but if one was to do the math the "RV property management way is the way to go".

on a $100,000 home you would spend about $655 and you might be able to rent it out for $850.

Real-estate Investors could make up to $2450 off one Motorhome worth $50,000. The monthly payments are estimated around $360 a month. This is achieved by using the RV Rentals Nationwide Reservation System to keep there unit booked out. If an investor had more that one unit then the numbers would go up again.

Investors are also able to track there Motorhome / Travel Trailer with the RV Rentals Nationwide GPS tracking system right online.

You can reach RV Rentals Nationwide by calling 866-610-4931 Ext 60 for more information. - 23221

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Beginners Introduction To ETF Trading System

By Patrick Deaton

The type of ETF trading system that a person chooses is going to be a personal choice that will involve many variables. Depending on whether a person wants to invest in a software program, subscribe to a service, do the research on their own, or use a system that they come up with. There basically is no standard system that everyone uses when they trade.

The effectiveness of any trading system that one uses will depend a lot on the type of trading they are doing and the baskets they are trading in. A system that is geared for long positions will not do as well in a short position sector. So, a trader who is diversified in Leveraged or other types of risky ETFs will want to be able to adapt their system to meet the needs of the sector they are in.

There is no magic trading system that will make a person a lot of money very quickly. It would take the fun out of ETF trading for one thing. But also, this is a market that is affected by millions of little details that just can't all be accounted for. Then, there is the fact that some people work very well with a system that no one else can figure out.

A system that many beginners find effective and has a fairly low risk is the EMA system. Exponential Moving Average is a trending system that is done by following the trends of the sectors that one is trading in. TLT, SMH, RTH, XLF, and a few others are traded by many people using this system. It requires only that a person do their analytical and historical research to be effective.

The system involves going long when the fast EMA crosses above the slow EMA and short when the reverse happens. The trader must always leave or reverse positions the day after the fast EMA and slow EMA cross. And, when the rules have been set up, the new trader needs to stick to them.

Even this simple system will require that a person do the necessary research on each sector and follow their trends to make effective trades. It is important to set buy and sell limits so that one does get caught up in trading and lose more than they intended.

Setting a risk allotment that is a percentage of the total capital you are willing to risk on a position will also make the trading in this system more effective. When an account reaches the minimum, move on. Setting the number of losing trades in a row acceptable, then the percent that the account will be reduced will also help to assure an effective trade.

When deciding on the system or method that will be most effective it is important to get as much information about the system as possible before implementing it. When a system is offered that has no history of consistent success it may not be the best system to start with. Talking to a person who has expertise in each ETF trading system will help a person to find the system that will be most effective for their needs and requirements. - 23221

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The Advantages Of Investing In The Stock Market - Part 1

By Zigfred Diaz

Previously, I wrote a comprehensive introduction on how to invest in the Philippine stock market. The basic principles that each prospective investors should understand was extensively discussed. Here, the advantages of investing in the stock market, will be tackled.

As I said in the previous articles, the stock market is just another vehicle of investment. You might be asking yourself why would you want to invest in the stock market? What are the advantages of investing in the stock market.

The question could probably be best answered by the following. Be advised that the examples given refer to Philippine based companies and currency. Should you wish to view the article in its entirety please visit my blog.

1.) The allure of great returns - Most financial expert would tell you that in a bull run the market really goes up. Average returns could be as low as 30 % and as high as 200 %+ per annum or even more. Profit is always expected when you invest in the long term. For example, In 1997, the Globe Telecom Inc. (GLO) stocks price per share was only P152.00. during that time you only spend P 1,520.00 to buy the minimum board lot which is 10 shares. Currently the price per share of Globe is P 1,620.00+. The value of those 10 shares that you previously bought is right now P 16,200, meaning in ten years time your money has grown ten times. This is translated to an average of 30 % return per annum. This is far better than putting your money in a time deposit account at less than 4 % per annum. It is interesting to note that the Philippine stock market is at its highest these days. For the next 2 to 3 years, they say the market will still be in a bull run. Make the best out of this situation.

2.) Investing in the stock market would make you "part owner" of the company that you are investing in. - Franchising a Jollibee outlet could cost you somewhere between 20 to 25 million pesos, not to mention the time and the effort you have to put in. Instead of franchising a Jollibee outlet in order to own your "own" Jollibee why not buy stocks of Jollibee instead ? For only P 5,000 + you get to own 100 JFC shares (Jollibee Foods Corporations - JFC) That means you indirectly own the more than 1414 stores in the Philippines and 175 in other countries not to mention Red Ribon, Chowking, Deli-France, A popular fastfood chain - Yonghe King in China and popular teahouse chain from Taiwan called Chun Shui Tang including Jollibee's pilot restaurant "Tio Pepe's Karinderia." Isn't that cool! You could proudly say to your friends and relatives the next time you eat at Jollibee that you like to eat there because you "own part of the company." Perhaps owning stocks of PLDT or Globe will make you more prompt in paying your bills.

3.) You belong to a special group of people when you invest in the stock market -

When somebody will ask me to join a multi-level marketing scheme I always ask when the company started. The reason is that because if it started a long time ago, then my chances of recruiting other people will be slim because almost everybody I know has already been recruited.

But investing in the stock market is not multi-level marketing. It does not matter whether the market is saturated or not. But it's good to know that we are among the first to exploit the market's potential.

According to Asian Development Bank as of 2005 only 600,000, out of the of the country's 87 million population, invest in the stock market. That's less than 1 % or roughly around 0.7 % It can also be observed that most of the market players are from the Class A and B segments. - 23221

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