5 Basic Real Estate Investment Strategies

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment.

Investing in a property has high returns but is considered a high risk investment. Educating yourself about the process will determine your success. Real estate values rise and decline, and can only work to your advantage if you can make wise investments. 

Taking time to study and evaluate will lead to finding the right property to invest. The best way to  identify the suitability of a property is thru Comparative Market Analysis (CMA). Comparing from sold data  plus the general market movement will  determine the current market value of the property and its profit potential.

Real Estate and Private Equity investor like David Ebrahimzadeh have the vision to find a property and expertise to maximize its potential thru investment analysis that leads to financial success.

Education is always the key in building knowledge and expertise in any field. Having the necessary diligence will help you get pass through those ‘portfolio of uncertainties”.

“Real Estate remains one of the most exciting investments out there.

You just need to know where to look, be prepared to do some extra work, and take into account changing needs. The need for great spaces and great locations is ever present, but ever changing.”

If you want to get started, Here’s the list of Real Estate Investment Strategies to consider:

1. Buy to Rent – Single Tenant Properties

Single rentals are a good investment because they’re very simple to understand, easy to set up, and, generally, straightforward to run. However, they’re unlikely to deliver very impressive rental yields, certainly not market-beating returns.

2. Flipping Houses

In very simple terms it means buying it and quickly selling it for a profit.

You may do some minor cosmetic work to the property to achieve profit. But, generally, this strategy relies more on a rising market (or buying at a great discount) as opposed to adding any real value. The idea is to get in and get out as quickly as possible, so you don’t want to be doing any expensive, time-consuming development work on the property.

3. Become a real estate agent, rental agent, or property manager

This is the best way to learn the industry where you can develop contacts, earn income, and build a successful business for yourself.
4. Invest in real estate investment trusts
Real estate investment Trusts are investment products where property is the underlying asset. A REIT is a company or trust that owns and operates properties, such as office blocks, apartment blocks, retail properties, and other kinds of buildings that people or businesses rent.
REITs can be private or public, with public REITs being traded on the major stock exchanges, just like regular shares. 
5. Commercial property
The success of commercial real estate investments hinges on having good, stable business tenants in place. Without a tenant, it’s just an empty building costing you money.
If you can find a good tenant, that gives you some stability and potentially lowers your risk. The longer the lease, the more value this adds to the property.
Overall, these are some of good long term investments to add up for cash flow diversification. The goal  to have other stream to rely on to create financial security with this type of investment is always a big opportunity.

Pros and Cons of Getting a Hard Money Loan

A Hard Money Loan or private money loan is simply a short-term loan secured by real estateIt is given using the property as a collateral and are funded by private investors (or a fund of investors) as opposed to conventional lenders such as banks or credit unions. 
This loan is intended for short-term investors. The terms are usually around 12 months, but the loan term can be extended to longer terms of 2-5 years. The loan requires monthly payments of only interest or interest and some principal with a balloon payment at the end of the term.
When banks are not an option or the loan is needed in a short period of time, you can source financing through hard money loan. 
A hard money loan, usually taken out for a short time, is a way to raise money quickly, but at a higher cost and lower Loan-To-Value (LTV) ratio. The ideal ratio  is 80% or less. And because hard money loans are not traditionally executed, the funding time frame is reduced immensely. Repayment can lead to default and still result in a profitable transaction for the lender.
Hard Money Loan is ideal for situations such as:
  • Finance Fix and Flips.
  • Land Loans.
  • Construction Loans.
  • When the Buyer has credit issues.
  • When a real estate investor needs to act quickly.
This type of loan is a short-term with higher interest rate, quick to acquire but also quick to be repaid. Nevertheless, getting this type of loan is a good fit for investors who need to get funding for a quick property investment.
  • Can be acquired more quickly; you don’t need to have good credit standing to qualify because the loan is based on the property value.
  • More Flexible because every lender has their own set of criteria.
  • Provide tremendous leverage for Fix and Flips Investors to maintain liquidity without putting their own money at risk.
  • Useful as a bridge loan to fund investment while securing longer term Financing.
  • It offer higher interest rate due to more risk to the lender. It usually carry an interest rate of 4-10% higher than Traditional loans.
  • Higher risk on both lender and borrower, due to loan higher interest and short-term that can lead to high financial burdens if not entered wisely.
  • Must be paid back quickly in term specified.
  • If you can’t repay the loan, you walk away with “nothing.”
Yes, typically you walk away with nothing if you fail to pay back the loan. Lenders are quick to foreclose. Since the entire property was used as collateral, any portion of the loan amount that was paid back is forfeited. For example, if a business owner paid back $100,000 of a $115,000 loan, the entire $100,000 paid is deemed lost.
When considering getting this type of loan, seek lenders with best reputation with fair terms like Associates Home Loan. Closely review the fees, interest rates, and terms. Needless to say, a lender’s proven and trusted loan history will get you a closed deal without the hassle of last minute change of terms.

Getting Out of Credit Card Debt with Colony Associates!

Paying off debt wasn\’t only about getting rid of what you owe at the moment but making sure you have the focus and discipline on keeping yourself debt-free all throughout. It\’s also important to know where to find help when you get off the track. The low interest rates offered by Colony Associates is a good example of the first step to take as a solution.

So, have you started with your holiday shopping yet?

As for me, this is the best time to charge all the holiday spendings on Credit Card 😉. Bank providers simply entice us to use credit cards with corresponding e-coupons and bigger holiday treats on every required amount spent!

Times like this that I truly appreciate the goodness of having a card that gives rewards every time you shop. The choice to use credit over debit is undeniably more beneficial and exciting! Just make sure not to indulge too much on your excitement and atleast carefully plan the holiday budget.

Always remember that while it is good to take advantage of rewards and holiday offers, it\’s still the best to spend only the amount that you can pay in full when the payment due arrives, or else all the freebies and rewards wasn\’t actually \”free\”. As you realized you still paid for those goodies with all those interest and charges incurred. Yikes!

Most people found themselves on higher debt with this common mistake of over spending due to holiday rush, giving them a hard time to pay off debt the following year. Paying off credit cards was just a basic example of getting out of debt.

The usual solution of getting out of debt fast  was that of  Colony Associates\’ service to prioritizing what clients need by offering a single monthly payment with low interest rates.

To clearly understand what action to take, we must first take a look of  these 10 Biggest Mistakes People Make When Paying off debt:

  1. Same Old spending habits
  2. Trying to dig out of debt alone
  3. Signing up for a debt-relief program, but not understanding what is expected.
  4. Not creating a practical budget.
  5. Trying to pay off multiple debts at once.
  6. Closing accounts when they are paid off.
  7. You decide to stop contributing to a retirement account.
  8. Not setting aside emergency savings.
  9. Not verifying your credit report is correct.
  10. Not prioritizing your debt.

With the holiday rush and the honest to goodness feeling of a generous gift giver on this holiday season, we must consider double checking our budget first and go shopping with a list. A shopping list makes it easier to foresee expenses and cuts down unnecessary items that you don\’t actually need.

Again, this is the best time to charge all the holiday spending with your Credit Card! Would you agree? The use of credit over debit will do suffice if use with great sense of responsibility and control. Overall, taking advantage of freebies and rewards points while always paying in full  is the best way to outsmart those CC companies. 😀

The Personal Loan Can Be a Real Help

The personal loan is different from other loans in the sense that the personal loan is not to fund something specific like a car or a house. It’s used to fund just about anything else.
Do Banks Offer Personal Loans?
Yes, banks offer personal loans as one of their financial instruments. It’s a good bet that most people do not have the funds to buy expensive items, so turning to forms of credit is a way of getting ahead. Personal loans are one of those forms of credit.

Are personal Loans a Good Form of Credit?
Any loan that comes with a low interest rate is a good form of credit. Compared to credit card rates, personal loans have a lower interest rate even though they’re unsecured like credit cards. Personal loans have a much lower interest rate than Payday Loans or auto title loans, so if you were considering either of those options, you should think about personal loans Pasadena TX.
Do You have to Provide a Reason When Applying for a Personal Loan?
Most personal loans are unsecured and based on credit score, income and debts, so most of the time, you don’t have to provide a personal reason. If a banker asks, don’t worry, banks approve personal loans for a variety of reasons. For instance, you may need funds to remodel your home. You may want to improve your credit by taking out a personal loan and paying it back immediately. Weddings are sometimes funded by personal loans. You can pay off high-interest credits card too. Some people start a small business with a personal loan.
The banks do offer personal loans and the funds can be used for a variety of things. It’s a good way to avoid the predatory lenders and Payday Loans. Sometimes people need to take out a loan for things that they can easily pay installments for. Personal loans help people with many things. Personal loans are good things as a solution to urgent financial needs!

Mom\’s Guide To A Healthier And Longer Life

There is no good time for moms to get sick, but it’s not an impossible scenario—with most of their waking moments spent tending to their kids’ needs and often not caring about their own.

According to a study in Circulation, women who followed the five healthy lifestyle habits—exercising at least 30 minutes a day, having a healthy diet, not smoking, drinking in moderation, and maintaining a healthy weight—lived 14 years longer than those who don’t.

So, if you want to be with your kids for a decade longer, this mom\’s guide to a healthier and longer life can help you get there.

  1. Eat healthily
May it be the kids’ leftovers or just a conscious effort to serve the family the same dish, mommies end up eating what the kids are also having. If you’re not routinely serving the healthier kind to your kids, chances are, you’re wreaking havoc to your diet.

Don’t copy your kids’ diet and stick with eating three healthy meals a day and practicing portion control. Instead of calories, pack in more protein to your diet by having food such as oatmeal, fish, broccoli, eggs, chicken breast, and almonds to name a few.

  1. Sleep early
Put your kids to bed early so that you’d also get to sleep early, or at least have enough sleep at night.
Inadequate sleep time results in lack of energy and affects your health negatively. Take every chance you get to take a nap during the day, too.

  1. Get moving
You don’t have to plan out a fitness regime and spend hours in the gym (because no mommy has time for that)—simply sharing an activity with your kids can be enough.

As often as you can, play with them. It not only burns off the calories and motivates you to be active, but it’s also a good bonding time.

If you do want to exercise, something as simple as walking can be beneficial. A yoga or dance class or a playing a sport that you like is good, too.

Know what you want to do to stay active and keep at it.

  1. Get social
And no, this doesn’t mean social media. Nothing can ever replace the actual conversation you can have with your friends in person. In fact, now that you’re a mother, you should try to minimize your use of social media. It takes too much time and is often not a productive activity.

If you need to get outside to be social, then so be it. It’s a lot better than keeping to yourself at home all day because the fresh air outside is good for your overall health. Plus, you’d get to meet people and parents like you who are more understanding of what you’re going through as a mother.

  1. Find inner peace
As much as mothers love their child, it’s no surprise that her day can get a little too rowdy and messy with them around. Sometimes, it can put them over the edge or even make them feel like they\’re not a good parent.

That’s why it’s important for moms to stay calm and find their inner peace. This can be done through a few changes of habits and actions. Something as simple as playing your favorite music while doing the chores can make routines more enjoyable.  

Alone time is necessary, too, especially since you’re now always surrounded by people who constantly need your attention. Create a schedule that allows you to have your me time.

  1. Get a life insurance policy with health and wellness benefits
As a mother, you’d want to protect your children for as long as you can. One way to do this is to get a life insurance policy that will cover your beneficiaries in case anything happens to you.

To make the most out of your insurance, get one that offers you rewards for making healthy choices.

Moms need to take care of themselves to have a long, happy life. The healthier and happier they are, the more time they have to look after their kids—and even fulfill their personal goals in life.   

[This is a guest post written by  Ms. Bea Rico from BPI-Philam featuring a useful Infographic on how Moms can stay healthy.]

Get Out of Credit Card Debt for Good in 5 Simple Ways

Getting out of Credit Card Debt and having control over your finances is something that can be done through discipline and careful planning. I know it sounds easy but a true struggle to actually maintain a spending habit without using a credit card. I must know based on my experience of how I took my baby steps on taking control over my financial habits.

Here\’s the 5 Simple Ways to get back on track:

This applies if you have Card 1, 2,3… to take care of. Take steps in paying off and getting out of credit card debt with any of the following method:
  • \”Snowball\” Method
Consider paying off your lowest balance first. Pay the monthly minimum payment for all the cards and focus all your extra cash to the one that has the lowest amount billed. In this case, you are able to paid off the card one by one by attacking the lowest amount first.
  • \”Debt Avalanche\” Method
This speaks of paying off the Card with the highest interest rate first. Pay the monthly minimum payment for all the cards and throw all your money to the one that has the highest interest. This method is the best to take when taking a longer debt payment timeline because it will allow you to save up more on interest charges.
  • \”Highest Balance\” first Method
       Paying the highest balance first regardless of interest. This gives you the satisfaction of taking care of the huge amount first by paying the minimum monthly payment for all the other cards and target the high amount flashing on the bill.

Before deciding what method to take, consider your personality and payment ability first that can help you identify which works best for your own paying-off plan.

Regardless, you are required to STOP using the cards that you are paying off to eventually get out of debt. For a smooth guide on the process, you can try Nationwide Debt Reduction Services to negotiate on all other options and be debt free in the shortest period time possible.

2. Track down expenses

Treat the card NOT as extra cash and record all expenses regardless of the amount spent. Easily track down unnecessary purchase and small purchases that adds up by keeping a record.

This is a good way to identify where to cut down and set up monthly budget by knowing where the money is going.

3. Avoid impulse buying

Apply a waiting time for a purchase that categorized as \’WANT\’. The idea is to wait a little longer before making a purchase. The longer you go, the better. You might be surprised how you end up not buying those things that you can actually live without.

4. Stick to a Budget
This implies as simple as following the grocery list, and not spending more than you have. Make a habit of using CASH instead of your invisible money. Also, develop a dislike to overpriced items and live a simpler frugal life that makes it easier to build the discipline to save before spending.

5. Stop Making New Debts

This goes to NOT keeping your Credit Card in your wallet to avoid unnecessary purchase. Create a money saving strategy after debt reductions is fully settled. Don\’t hesitate to use a reasonable part of your savings to help you become debt-free so you can start fresh to challenging yourself every month to save.

Above all, INVEST in financial education to frequently remind yourself the importance of having finances under full control. This way you can easily think, reflect and apply on how to leave behind those financial burdens.