You've no doubt seen them or study them. Glossy adverts or four-color advances in publications and magazines promising to teach you all the juicy information about successful real-estate investing. And all you need to do to learn every one of these real estate investing surface encounters chuck russo secrets is to pay a rather high sum for a one-or two-day seminar.
Often these kinds of slick real estate investing seminars claim that you could make wise, profitable real-estate investments with absolutely no money down (other than, of course, the hefty fee you pay for the seminar). Now, how attractive is that? Make a make money from real est investments you made out of no funds. Possible? Not most likely.
Successful owning a home requires cashflow. That's the type of almost any business or perhaps investment, especially real estate investing. You put your money into something that you wish and plan will make you more money.
Unfortunately too little newbies towards the world of real-estate investing believe it's the magical type of business where standard enterprise rules don't apply. Simply set, if you want to stay in real-estate investing for more than, say, a day or 2, then you will have to generate money to use and invest.
While it may be true that buying real estate with simply no money down is easy, anyone that is even made a simple real estate investment (such as buying their very own home) is aware there's much more involved in real-estate investing that can cost you money. For illustration, what concerning any essential repairs?
So, the primary rule people not used to real estate investing ought to remember would be to have available cash reserves. Before you determine to actually do any property investing, save some cash. Having just a little money in the bank once you begin real est investing surface encounters chuck russo can help you make more profitable real estate investments in rental properties, for example.
When real estate investing in rental qualities, you'll want in order to select just qualified tenants. If you've no cashflow when real estate investing within rental attributes, you might be pressured to take in a much less qualified tenant because you need somebody to pay for you money so that you can take attention of fixes or attorney fees.
For almost any real property investing, meaning leasing properties or properties you get to re-sell, having money reserved can allow you to ask for any higher cost. You can ask for a higher price from your investment because a person surface encounters chuck russo won't feel financially strapped as you wait for an offer. You won't be backed into a corner and forced to accept just any offer because you desperately need the money.
Another downfall of many new to property investing is actually, well, greed. Make any profit, yes, but don't become so greedy that you ask for ridiculous local rental or second-hand rates on any of your real estate investments.
Those not used to real est investing need to see real estate investing as a business, NOT an interest. Don't think that real estate investing will make you wealthy overnight. What business does?
It requires about six months to determine if real estate investing in for you. If you might have decided which, hey I really like this, then offer yourself many years to actually start earning profits. It often takes at least five years to get truly successful in real estate investing.
Persistence may be the key to success in real estate investing. If you've decided that real estate investing is perfect for you, surface encounters chuck russo keep plugging away at it and the rewards will be greater than you imagined.
You wouldn't think Apple and Indonesia have much in common. On the surface, they don't, but they can still teach you a lot about investing. Let's start with Apple.
Apple made the news recently with two major events. It is locked in a battle with Exxon over which is the most valuable company by market capitalization -- a remarkable turnaround. Apple has a market value of over $344 billion. Then Steve Jobs announced his resignation at Chief Operating Officer for health related reasons.
According to a thoughtful blog by Weston Wellington of Dimensional Fund Advisors (not available online), it was not so long ago that the financial media was trashing Apple. In February 14, 2005, Robert Barker, in an article in BusinessWeek stated "...Apple doesn't tempt me..." I wonder what did. Maybe Lehman or Bear Stearns!
Steven Gandel weighed in with an article in Money on March 24, 2004. He quoted Transamerica portfolio manager Chris Bonavico who opined that Apple stock is "...crap from an investor standpoint."
Many analysts credit the remarkable sales of its Apples Stores as the key to Apple's success. In a quote attributed to David Goldstein, Channel Marketing Corp, which appeared in an article in BusinessWeek on May 21, 2001, Mr. Goldstein gave Apple "two years before they're turning out the lights on a very painful and expensive mistake."
What can you learn from these comments about Apple stock? Read the financial media if you find it entertaining. It's useless (and potentially harmful) as a source of reliable financial advice.
What about Indonesia?
The financial media was preoccupied with the downgrade by Standard & Poor's of the credit rating of the U.S, which lowered its rating from AAA status to AA plus. The new rating places the U.S. below the United Kingdom, Canada and even the Isle of Man.
Many investors viewed the lower rating with alarm and considered it a precursor of low stock returns for decades to come. The data tells a much different story, and may indicate there is no better time to invest in U.S. stocks and bonds.
In another blog, Wellington notes that Standard & Poor's rated the credit of Indonesia a "B" in July, 2001, which placed it in the "junk" category. Over the past decade, its credit rating has never risen to investment grade.
Investors in the Jakarta Composite have earned a total return of a whopping 29% per year over the last decade, ending June 30, 2011. According to Wellington, "If the Dow Jones Average had kept pace with Indonesian stocks over the past decade, it would be over 104,000 today."
Here's the lesson to be learned from Indonesia: A low (or reduced) credit rating on sovereign debt does not necessarily correlate to lower stock market returns. This is the opposite of what many investors and financial talking heads believe.
Most investors get their financial information from the financial media or brokers. As Dr. Phil would say: How is that working for you?
Dan Solin is a Senior Vice President of Index Funds Advisors (ifa.com). He is the author of the New York Times best sellers The Smartest Investment Book You'll Ever Read, The Smartest 401(k) Book You'll Ever Read, and The Smartest Retirement Book You'll Ever Read. His new book, The Smartest Portfolio You'll Ever Own, will be released in September, 2011. The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. Returns from index funds do not represent the performance of any investment advisory firm. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Readers who require investment advice should retain the services of a competent investment professional. The information on this blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or class of securities mentioned herein. Furthermore, the information on this blog should not be construed as an offer of advisory services. Please note that the author does not recommend specific securities nor is he responsible for comments made by persons posting on this blog.
funny.. i learn from this thread that there are "good" capitalists and "bad" capitalists.. only if it were for good capitalists everything would be fine... there are no good/bad capitalists. concentration of wealth and diminishing marginal profitability lead to rent-seeking, monopoly seeking, corruption and imperialism for all eyes willing to see. it was always like this. it always will be. good thing the us citizen is at least seeing the present corruption. maybe with some critical thinking he will also connect the dots and see the omnipresent corruption indogenous to capitalism. the tale of perfectly competitive free markets is a tale. there never has existed one there never willl.. maybe fruit/vegetable markets, which now are facing extinction brought to you by the wonderful capitalist monopoly-seeking inventions of monsanto...
the us entered the first world war by organising false flag attacks on its vessels so that capitalists could sell nerve gas to both sides. the us entered the second world war by allowing japs to bomb pearl harbor so that capitalists could make more money. the us organised another false flag attack on ny and killed 1 million iraqis so that oil could keep flowing and haliburton could make a few bucks meanwhile. there's no "clean" version of capitalism. wake up!
and for the nth time.. no, obama is not a marxist. if he were, he would not be waging imperialist commodity wars in afghanistan and socialising bank losses. marx would probably be severly frustrated if he knew people called slick imperialist puppets marxists...
No comments:
Post a Comment