Tag Archives: investment property

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 ūüôā 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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Investing is a plan

¬†‚ÄúInvesting is a plan, not a product or procedure.‚ÄĚ

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.‚ÄĚ

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
‚ÄúThe 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.‚ÄĚ

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

Ask about your neighbours, then buy the house!

Proverbs and old wives tales hang around I have found because they fundamentally  are offering smart advice if anyone cares to heed it.

‘Ask about your neighbours, then buy the house’ is one such wise Jewish proverb.
Meeting the neighbours is part of doing your due diligence and more than giving you an idea of whether you will be compatible or not more importantly it might prevent you from making a buying mistake and purchasing a home which is not a best fit for you just because the neighbours disclosed some facts that the seller might rather omit to tell you like the time the heavy rains brought a deluge of mud rushing in the front door and out the back door two years ago!! Yes a friend of mine had just that scenario.

Buying a home is a kind of a¬†game but with very high stakes (your life savings ++), and huge opportunities¬†to avoid outing inconvenient facts.¬†Remember it’s always a¬†good idea to follow up on what anyone ¬†has to say¬†with more of your own¬†research as well.

Clever questions to ask the neighbour when buying

So, here are some questions thought up by realtown.com to ask the neighbours.

  • How long have you lived in the neighbourhood?
  • What do you like best about living here?
  • What do you like least about living here?
  • Do all the neighbours get along with each other?
  • Have you ever noticed anything odd going on with this house or in the neigbhorhood?
  • If you could change one thing about this street, what would it be?
  • How is¬†crime in this area — has anything happened around here?
  • How quiet is the neighbourhood?
  • Do you know the seller (or previous owner if the home is an estate)¬†— are you aware of any issues the seller has had with the house?
  • Has the seller ever complained to you about anything?

The people that live in a neighbourhood can be your best source of information.¬†By talking¬†with them before making a¬†decision to buy a particular house, you’ll learn more about what goes on in¬†the neighbourhood, who the good and bad neighbours are, and issues that might not be obvious about the house, street or area.

¬†So,¬†Ask your neighbours,¬†and¬†Ask about your neighbours, then buy the house ūüôā
Go well till the next time
www.flipping2retirement.net
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Investing: It’s a Worldwide Phenomenon

¬†“I think it‚Äôs a worldwide phenomenon that people tend to only look at their financial affairs when they‚Äôre in dire straits or when there‚Äôs a significant life event that forces them to do so‚Ķ” says¬†PETER HEWETT¬†MD, Efficient Group SA

If that is so how do we stop ourselves becoming a statistic? When should we start our financial planning?

We all know in theory we should have started saving with our first pay cheque – but life has a habit of getting in the way and we don’t always keep to the Grand Plan…

So what should I have in place as I roll towards retirement?

  1. An Emergency Fund ‚Äď it should normally be around three months of your monthly income, to ensure that you can cater for those sudden unexpected short-term emergencies,¬†
  2. Make an Investment Plan –¬†Create an investment plan so you have a disciplined approach to investing throughout retirement ¬†(Tick)
  3. A¬†Retirement Budget –¬†You must come up with an accurate estimate of what you spend now and what will change after retirement. (Tick)
  4. Health Insurance Options РHow to cover medical expenses and health insurance and included them in your budget? (Tick)
  5. Make a Retirement Income Timeline РMake a retirement income timeline to show  when different sources of income will begin matched against potential retirement expenses (Tick)

Well I’m on the right track – how about you?
I just need to keep to it now … watch this space I guess ūüôā

Go well till the next time
www.flipping2retirement.net

 

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Do you feel like you never have enough money?

This was too good not to share in its entirety – enjoy!

5 lessons property investors can learn from farmers

How often have you thought to yourself, if only I had more money, life would be that much simpler?

BY MICHAEL YARDNEY

Are you constantly spending your salary the day it lands in your account and then eagerly waiting for the next pay day so your stocks are replenished and you can start consuming all over again?
This is the unfortunate reality of how most people survive.
They live to consume and in turn, are ultimately consumed by the driving need to earn more money.
However, the problem with this logic is that often, the more money that comes to you when you have this mindset, the more you will ultimately spend.

Farmers do things differently

Farmers are producers rather than consumers and work towards growing something from very little ‚Äď a tiny seed in fact.

Smart property investors understand that they must nurture and grow their portfolio, producing the returns they desire in favour of consuming all they have, rather than ending up with nothing to show for it when they finally retire.

They share the farmer’s desire to see their efforts reap great rewards and understand the value of these five important farming lessons…

  1.  Look at your salary or wages the way a farmer looks at a seed.
    In other words, instead of focusing on consumption and spending, think about how and where you can ‚Äúplant‚ÄĚ that income to create a return on your investment. This will shift your mindset from wondering what you can buy with your money today to future asset growth, cash flow and income.
  2. Be patient and look after your investment the way a farmer tends his crops.
    A farmer understands the cyclical nature of primary production, nurturing his crops after planting and allowing time and seasonal influences to work their magic. As a property investor, you need to understand that long-term market cycles (as with the seasons) and time in the market will ultimately determine your capacity to produce a post-work income through real estate.
  3. Be selective with how you use your growing asset base, like a farmer is selective with his harvest.
    A farmer takes the best seed from the top of his harvest to put aside for next season‚Äôs planting. He certainly doesn‚Äôt scrape the bottom of the barrel, but focuses instead on quality. As an investor, you need to keep an eye on your growing portfolio and know when to take out profit. Now, here‚Äôs the important part ‚Äď in the asset-building phase of your investment journey, you should only take out profit to reinvest for accelerated returns, just as a farmer re-sows the best seed to make sure each new crop is more bountiful than the last.
  4. Each new cycle (or season) should be seen as a chance to grow your wealth.
    The farmer never ceases to look for opportunities to grow his crop. When the next harvest comes around, the cycle is repeated and the accumulative effects of seed, plus time, plus harvest are repeated all over again. Like the farmer, you don’t want to consume the fruits of your investment labours, but continue to look for new buying opportunities that will enable you to use that good quality profit to acquire even more superior assets.
  5. Work your investment portfolio, the way a farmer works his land.
    The farmer does not sit back and pray that this season‚Äôs harvest will be bountiful. Instead, he is pro-active in nurturing his land and ensuring his crops are fed, watered and weeded as necessary. For property investors, the lesson is to be an active participant in the growth and sustainability of your portfolio. This means taking care of your investments, regularly reviewing their performance and protecting them with necessary asset protection structures, cash flow buffers and insurances. It also means keeping a close eye on the performance of your properties and, if necessary, doing a bit of ‚Äúweeding‚ÄĚ if you have under-performing assets that are threatening your harvest.

Remember, smart property investing is about the long-term returns you ultimately produce at the end of the day.

To find success in growing your own crop of high growth assets, you must change your focus from consumption to production.

It really is that simple.

Go well till the next time
www.flipping2retirement.net

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How To Make a Real Estate Investment

MAKE A REAL ESTATE INVESTMENT IN
5 SIMPLE STEPS

1. Register as an InvestorFrom Flipping2Retirement,net (4)

It’s free and easy and once you sign up you gain direct access to exclusive private real estate investments around the world.

2. Browse Investmentsbrowse

Registered investors can securely browse our marketplace of real estate investments and access a detailed investment page for any specific offering.

3. View & Finalize Investments.

When you’re ready, you can invest directly through the site. Funds are transferred electronically depending on where you live.

4. Wait for Funding Goal to be Reached.

Each investment has a unique funding goal and your funds are maintained in escrow until that goal is reached. Once reached, you own a share of that investment.

5. Manage Your Real Estate Investments Online.

As a Flipping 4 Profit Investor you have¬†full control over your¬†funds, via your¬†Investor Member’s area. ¬†As each property is sold,¬†you choose from the different options¬†available,¬†what to¬†do with your¬†funds…

  • Take the¬†funds¬†out,
  • Take the profits¬†out,
  • Reinvest the funds and profits or
  • Take some out ¬†and reinvest some

It works like a dream and is great fun. I couldn’t find a better way to add to my retirement funds where I have total control and can watch as I gather profits to re-invest until such time when I want to use it. Why not start your property portfolio today¬†ūüôā

Go well till the next time
www.flipping2retirement.net

The Rise of the Entrepreneur!

So how can we become entrepreneurs?

Well there are several ideas that come to mind but the idea that seems to be gathering the most momentum and, one I want to be part of, is Crowd Investing, in particular Real Estate Crowd Investing.
I have been making a study of it lately and I thought you might like to know what I have found out …

What is property crowd investing?

“Crowdfunding helps investors who are unable to fund their own buy-to-let investment to start growing a portfolio. Existing landlords can now easily diversify their portfolio to improve the performance of their investments.”- Andrew Gardiner Property Moose

 Crowd Investing brings investors together to buy properties for flipping, the buy-to-let market and development projects. The investing company, partners with professionals who manage the acquisition, sale and rentals of the property for the duration of the investment term, The investor, you, receives a share of the profits when the property is sold and in the case of rental properties a monthly rental income and when the property is sold any capital growth is shared between investors.

The companies I have looked at all show projected returns are shown net of all known costs, expenses and fees which consequently means they only source deals that have great growth potential especially as they only make money when the investors do.

How is  our money protected?

Investors generally hold legal shares in the company / property  and as an investor you receive share certificates. Shares can be sold at any time and quite democratically, the investors in a property can vote to sell early or extend the term.

The companies will always be committed to getting the best price for properties at the end of the investment terms as their profit is tied into the returns.

To me it appears that the only wrong decision we can make is to not make the decision to join the crowd!

For the smallest ever investment you can for the first tiime join the rich- become an entrepreneur and start growing your own portfolio

Go well till the next time
flipping2retirement.net

 

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