Category Archives: Investing in Real Estate

Why Collaborate?

A brill article by blog.memphisinvest.com so I’m sharing it with you

Too often we try to do things by ourselves. Sharing credit and profits, after all, doesn’t appeal to most people. But collaboration, more than anything, can positively shape your success in real estate investment.

Why Collaborate?

Real estate investors flooded the market when the housing bubble took its toll. At the time, there were plenty of properties to be snatched up — but soon, that wasn’t the case. Some investors felt pushed out of the market, especially where things got competitive.

Surprisingly, rather than turning real estate investment into a survival-of-the-fittest situation, savvy investors and develops defied expectations and started to collaborate.

“Allied capital” is a strategy that could serve real estate investors very well. Why?

  • It combines multiple viewpoints, experiences and resources to make more informed decisions.
  • It builds relationships that can lead to new connections, deals and business opportunities.
  • Risk is diluted with multiple investors. This can also give investors the capacity they need to diversify.
  • Rather than create competition, you open yourself up to future collaboration and benefits.

Who Should I Collaborate With?

INVESTORS THAT SHARE YOUR OVERALL VISION
All investors have different approaches and perspectives to the business. Still, you can find like-minded individuals in terms of overall goals. If you’re on the same page at a fundamental level, differences will add perspective rather than create problems. While there will be challenges in any collaborative setting, being able to go back to a common ground will mitigate conflict and keep everyone anchored.

INVESTORS THAT YOU CAN TRUST & RESPECT
If you wouldn’t want your name associated with a particular real estate investor, collaboration is likely not a good idea. If you can’t trust or respect them, don’t work with them. Not only will this prevent you from getting burned in the end, but it will save you a lot of conflict, resentment and stress — and safeguard your reputation.

Have you taken an “allied capital” approach with your real estate investments? Share your experience with us in the comments.

Go well, Chat soon
www.flipping2retirement.net

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They Say: Not all your investments will be profitable!

I think we all go into investing with the idea that
we will make money!

In reality maybe that is a bit starry eyed, especially if you are not used to dealing in whatever investment you decide to invest in.

I got stung with some stock investments under-performing and not really understanding much about what they were or where they were. That was my reality check. It made me decide to do some research, do some training and to take more of a hands on approach to any future dealings with stockbrokers. I also diversified into real estate. Something I knew more about and could deal with better.

So  How can we learn from past investment blunders? 
We  need to learn from our experiences and according to FSPInvest the best way to do this is to keep a diary of all your investments. This could be in the form of a notebook or a spreadsheet.

You need to keep a note of the following:

  • Why you invested. – Was it because someone told you about it? Or was it down to research.
  • How much did you think you’d make from the investment? – Did you have dreams of making 200% or 300% on the stock? What was your exit strategy when you invested (for both losses and gains)?
  • When you actually exited the stock? And what were your actual gains or losses?

Their best plan is for you to  check your diary before you get on the phone to your stock broker to buy anything ever again as It might just save you from that blunder yet again…

It could remind you of  similarities with anything you’ve invested in before and if it does, maybe this isn’t a good investment after all.

Think I’ll stick with my properties… I like a bit of bricks and mortar 🙂

Go well till the next time
www.flipping2retirement.net

 

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Retirement: 5 tips on how to save $1 million

I am always open to thoughts on how to best use my savings to grow themselves and I’m sure you are the same so when I read & heard this

Retirement: 5 tips on how to save $1 million

I was all ears! We are all living longer but we still want to maintain our own personal standard of living, as well as being prepared for any future health care costs. This is how to be like a good scout and “Be Prepared”

Five tips for saving a cool million by the time you retire.

  1. Start early and take advantage of the power of compounding.
    It only makes sense too make use of free money
  2. Have a plan
    It really focuses you.
  3. Take advantage of your company-sponsored savings plan
    Again the free money advantage. Jeanne Thompson, vice president at Fidelity Investments, says: “90% of the Fidelity millionaires are taking advantage of the catch-up provisions and many are saving up to the maximum. “They are milking it for all it’s worth.””
  4. Use automatic deductions for all your savings.
    If you stick a certain amount on a regular stop order deduction you can’t be tempted to spend it 🙂
  5. The stock market is your friend. You won’t get there just on savings alone,” says Thompson. “It does take some market action.”

Check out the interview with Jeanne Thompson here 

Robert Kiyosaki has his own views and offers this guide to wealth

Lets get our savings growing.
Click here to see how I am growing my investments to reach a million  …

If you could eventually make $4,000 per month with a $300 investment, would that make financial sense to you?

Go well till the next time
www.flipping2retirement.net

 

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The Transition Into Retirement

Unfortunately the transition into retirement is not always as serene as many of us Boomers thought it would be

A report released by Ameriprise Financial on February 3, 2015 taken from 1000 Baby Boomers who have already retired unearthed some interesting findings:
Quoted from Huffington Post:

  • 47 percent felt ready to retire but had mixed emotions
  • 25 percent made the point that they felt stress after being retired for some time
  • 21 percent were uncertain or realized that they were not ready to retire after the fact
  • 22 percent said that they were spending more money in retirement than they had anticipated
  • 24 percent came to the realization that hey had underestimated their income needs
  • 28 percent reported that they were spending less money than they had anticipated
  • 16 percent were forced to retire by their employer, or were offered early retirement incentives or lost their full time jobs

The conclusions drawn by these statistics is that

  1. You need to be emotionally prepared for your retirement
  2. It is important to be in control of your retirement decisions
  3. You need to have adequate retirement income in place

Hopefully the above stats will urge the younger Boomers to take steps now and prepare for retirement.
Make that PLAN to hedge against anything the world might have hiding round the corner to throw at you!  I can promise you it suddenly appears as if out of the blue and if you haven’t invested smartly you could be one of those statistics.

Go well till the next time
www.flipping2retirement.net

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To be successful in investing you have to start!

This is certainly true you do have to start!

I think a lot of folk are put off by not  believing they have enough to invest, I certainly thought we only had the pension. But I was wrong! I started with just US$100 and have slowly added to that each month. There is always a little over at the end of a month that I’ve managed to save. No coffees in restaurants, this month 🙂 It all adds up.

Then I have watched our pension being invested in the traditional way and thought but we don’t live in traditional times any more!
I personally think it’s time to rethink. So I have. I have looked around for other ways to make my money work for me in small amounts, purely and simply because I don’t have huge amounts

I found that I’m not alone. There are many investment houses opening up to the idea of crowd investing using comparatively small amounts of money, primarily in property but not entirely.

Crowd investing means you use smaller amounts of your money spread over many more investments giving you quite a portfolio.
It also means that if one doesn’t perform as anticipated only a small amount of your money is effected. I like that idea and I’m very comfy with the idea of sharing in the buying of a property with a gang and then sharing in the profits too.

In the UK with the new pension rules coming into play in April, to me it makes sense to hold control over your money on a shorter term than the normal stocks and shares allow. As I understand it investment in stocks requires you to be vigilant quarterly but to not really expect much till about ten years have lapsed. I know this is my very naive version but I also think I’m not alone. So to me to put my money into several properties that are either flipped or kept for only a couple of years as a buy and hold rental property makes real sense.

Chinese investors are likely to buy $20 billion worth of properties overseas in 2015, up 21% year-on-year, forecasts Jones Lang LaSalle.

The Chinese wouldn’t be spending so much if they were unsure – would they?They seem to be canny investors generally, so I’ll follow suit in, this year of the sheep.

Since I took control of our savings and I got educated I’m feeling confident that the choices I have made are good and they are certainly offering up some good profits to date. Way better percentage returns than any bank could offer and I feel more secure than leaving it to a third party investing in stocks

Go well till the next time
www.flipping2retirement.net
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Is Investing risky?

Robert Kiyosaki has said that
“Investing isn’t risky; not being in control is risky.”

I certainly wouldn’t say otherwise as the man is well known for his business success, however it gets you thinking doesn’t it?

We left a big part of our pension to some professionals who, doing their best no doubt, managed to put it in stocks that have diminished our capital by a third already. We have no option but to sit it out and hope the market comes back. But partly we are to blame.

We were very trusting and naive!

  • We didn’t know what questions to ask – so didn’t.
  • We knew less about the stock market.

The realisation that we have lost a third of our life savings was a jolly good wake up call all be it a bit late. We did realise our pension was rather on the meagre side but were rather in denial hoping it would right itself magically! Of course no control was where the risk crept in.

I have now taken courses and become much more educated in the world of investing.
I have taken a much more ‘hands on’ approach  with our savings and investments.

We are no longer ambling aimlessly towards retirement.
We have a plan with structure and vision. It is workable and able to be adjusted.
We are feeling so much calmer knowing exactly where we are headed and how long it will take to get to the end.
Our education has empowered us with new found confidence instead of bleak despair!

With the help of Pete Carruthers, guiding me through the intricacies of Internet marketing and Robert Kiyosaki training me in the property investing world I embarked on both. I have an online business and I am investing in property internationally, with some network marketing thrown into the mix – All with a new found confidence and realisation that it is no more risky than leaving the decision making to the professionals as before. However it is a lot more rewarding and less stressful to be in charge of our own money / future.

Of course I use a bunch of people  to work with. To help in the decision making you need to reduce the risks as much as is possible by researching and asking questions to make  knowledgeable decisions.

I highly recommend it 😀  Why not join me?

Investing isn’t risky; not being in control is risky!

Go well till the next time
www.flipping2retirement.net

 

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Investing is a plan

 “Investing is a plan, not a product or procedure.”

My Financial education has been coming in drips and drabs all my life but the real kickstart only came five years ago with the awakening jolt of early retirement being thrust at us.

My husband and I were forced to look at our various pension plans and put together a detailed financial plan. That was a cold shower of note, the realisation that we really did not have the funds to retire yet! Does this ring any bells with you too?

What were we going to do about it? – A plan was needed but it had to be achievable/believable because in this position you can’t afford to not reach the goal.

Our plan formed itself into a

  • He’ll work for the cash
  • She’ll get educated on how to grow the money

My husband went back to work and I got financially educated and shared with him.
Robert Kiyosaki’s Rich Dad course was instrumental in helping me focus and untangle all the figures until I could understand what we had and what we needed to have. You might find that like myself you have left it a bit late, but rather late than never.

I also played Kiyosaki’s Cashflow game online. It was a fun and simple way to drum into my head where the priorities lay when trying to get out of the hamster wheel and head towards financial retirement freedom. It’s different for each of us but if you have a plan you are well on the way to getting there.

What have to learn and How to do it

  1. Determine Where You Are Today – you need an accurate picture of where you stand financially today so make your financial plan (Rich Dad has a great forms to help you)
  2. Set Your New Goals – Do you want to be Secure? Comfortable? Or Rich? No good just saying rich either you have to see what rich is to you and then decide if you are really prepared to work hard and smart enough to get there. Most of us just wish we were rich the effort to become rich we find is too far outside our comfort zone so we pass but tell ourselves all sorts of stories to make it acceptable to pass on doing the work. Identify your deep-seated reasons why you want to be rich then you have your own incentive; not something fluffy and nebulous.
  3. Take Control of Your Cash Flow – First look after your “disposable income” and make it a little less disposable by cutting out the unnecessary bling from your spending – Invest it instead. With a bit of education of the right sort you can learn to look after your own finances and, I must say it is very comforting, to realise that you can understand what to do and are not solely reliant on others informing you on investment performance once a year. Stock crash victims will know what I’m saying here.
  4. How Are You Going To Get There – Again this is dependant on your personal preferences set out in your plan (mine was property rather than the stock market) The idea is to convert your earned income into portfolio income or passive income as efficiently as possible.
    This will not only put your money to work for you but also increase the chances that your funds will grow.
  5. Become an Investor – You might find this idea scary and risky because your family and friends and maybe you have lost but how else does money grow? – Certainly not in the bank!
    Risk is in everything we do from crossing the road to driving a car but we learnt how to do both of those well enough to make the risk acceptable enough to enable us to cross roads and drive cars!
    All you have to do to lessen the investment risk is to get educated.
    Take your ‘financial investors licence’ then when you invest you can do it having analysed the market knowledgeably and continuing to watch it with your educated eyes and to know when to take any action. Become your own best asset, instead of your own liability. 

Kiyosaki says
Be prepared for anything. Don’t try to predict what will happen or when.
The Zen swordsman disciplines body and mind to counter any blow spontaneously. He does not anticipate the moves of an opponent, for that impedes his ability to react. Likewise professional investors know they cannot control the real estate or stock market, let alone the global economy. Instead, they train themselves to be financially intelligent, to think confidently and creatively when opportunities or problems arise.

“Skilled investors are in control of their investments; employees are under the control of their employers.”

Finally:
Learn to trust that, when a good deal presents itself, There is risk in every investment, but risk is a relative term. Since risk is often directly proportional to reward, anyone who hopes to become wealthy must be able to invest more aggressively than someone who’s content to be secure. The more financially educated you are, the less risk you’re taking.

Rich Dad Tip
“The reason most average investors lose money is because it is often easy to invest in an asset, but difficult to get out. Your exit strategy is often more important than your entry strategy.”

Invest away till the next time – go well
www.flipping2retirement.net