It has been estimated that over 95% of the world’s millionaires have made money through investing in property. It has also been said that the best way to become successful it to find someone who is, and copy what they have done.
With this in mind, once you are aware of the huge potential that property investment has for creating wealth, and have decided that you would like to follow this course of action, how do you know where do you start?
The most important thing you can do is become informed. Learn how to research the property market, so that you will be able to purchase properties that will not only give a good rental yield, but they will also return the best capital growth possible. Read as many investment books as you can. Read auto-biographies of successful people. Learn what they did right, and even more importantly what they did wrong, so that you won’t make the same mistakes. Speak to people who have succeeded in doing what it is that you want to do. The more you learn, the easier it will be to recognise a good investment.
Find out about Negative, Neutral and Positive gearing – and why gearing is such an invaluable tool, which will enable you to build up a wealth base in accelerated time, compared to if you only invested your own hard earned dollars.
Once you have educated yourself and understand why investing in property is such a powerful tool, you will be able to embark on the road to financial security.
In Australia, and many other countries less than 5% of the population reach retirement able to support themselves, without government or family assistance. If you want to be one of the elect who are self sufficient at retirement, then now is the best time to start striving toward financial security.
Debra Lohrere is the author of several books on property investment, creating financial security, goal setting and the power of compounding. Please visit her storefront at http://www.lulu.com/DebraLohrere or homepage http://www.debra.lohrere.com/home.shtml
Article Source: http://EzineArticles.com/?expert=Debra_Lohrere
Sunday, October 7, 2007
Saturday, September 15, 2007
Top 10 Option Investment Strategies
Neutral to Bullish Strategies
1. Long Call: Simply buy a call option on a stock. This provides unlimited upside potential and caps the associated risk at the amount paid for the stock option. For Example, say you have $1600 and think Google (GOOG) will increase in value: say it is currently trading at $500 a share but you only have enough money to buy 3 shares. Instead of buying the shares you decide to buy call options on Google (GOOG). Let’s say you want to be conservative and only buy options trading write at the money (strike of $500). Now you just need to choose the expiration month (do you think the stock will increase in value soon or will it take a while?)
Say you believe Google (GOOG) will increase in value within 1 month. You buy September 500 Calls for $16 (you have $1000 so you can afford 1 contract (sold in 100 board lots). As long as Google (GOOG) Trades at $516 at expiration in September you have made a profit.
Say GOOG is trading at $550 at expiration of the call options:
If you had bough 3 shares your profit would be ($550-500)*3 = $150.
If you bought the Call Options your profit would be {(550-500)-16}*100 = $3400.
2. Put Writing (Short Put): Simply sell put options on a stock. This provides you with the option premium while your maximum risk is strike price of the option minus the premium received. Your max risk scenario would only occur if the price of the stock went to $0. For this strategy an investor will normally have a neutral to bullish market forecast.
Say you are interested in Apple (AAPL) and think it will appreciate in value or remain the same. You can sell Puts on Apple (AAPL) and received the option premium in exchange for the risk that the stock may decrease in value up to the expiration of the stock options you sell. Say Apple (AAPL) is trading at $120. To be conservative you write put options with a strike price at the money ($120) for $6 each and an expiry in 1 month. Say you only write 1 contract, you will receive $600. While you are waiting for the option to expire you can invest that $600 elsewhere say in Google. At expiry, as long as the Apple (AAPL) is trading above (120 – 6 = $114) you have made a profit.
3. Married Put: This strategy is implemented by buying the stock and buying a put on the stock. This provides you with protection against a price decline while you can still participate in all upside in the stock price. The risk/reward profile is very similar to the Long Call; that’s why this strategy is also referred to as a ‘synthetic call.’
Lets go with Starbucks (SBUX). You buy 100 shares at $25 a piece for $2500 and want to protect yourself against a decline in Starbuck’s (SBUX) stock price so you buy puts right at the money because you are being very conservative. Say you only want to protect your stock from a decline for 1 month. You buy puts with a strike of $25 1 month to expiration for say $1. Now, the most money you can loose over the month is the $1 you paid for the put while you still can participate in any upside so as long as the Starbucks (SBUX) is trading above $26 at expiration you have made a profit.
Neutral to Bearish Strategies
4. Long Put: Simply buy Put Options on a stock. This strategy is implemented when an investor has a bearish forecast for a stock. Say you think Google (GOOG) will decrease in price over the next month. Instead of shorting Google (GOOG) you decide to buy put options on Google (GOOG) because you don’t want to put so much money at risk. Say Google (GOOG) is trading at $500. If you were to short the stock you need to be able to cover you position. Say you have $1500, you would be able to cover shorting 3 shares. If you buy puts and are conservative you could write at the money $500 puts for one month out for say $15. You could afford 1 contract (100 shares). If you had just shorted the stock you would profit as long as the stock declines in value, but you have unlimited up side risk. With the put options on google (GOOG) your risk is limited to you initial investment while your rewards could be substantial.
Say Google (GOOG) in one month is now trading at $450:
If you shorted the stock your profit would be ($500 - $450) * 3 = $150
If you purchased the puts your profit would be ($500 + $15 - $450) * 100 = $6500
5. Call Writing: Simply Write (Sell) call options on a stock. This provides you with the option premium while your maximum risk is infinite (the stock can potential increase to infinity, ha). For this strategy an investor will normally have a neutral to bearish market forecast. Say you are interested in Apple (AAPL) and think that it will depreciate in value over the next month or remain the same. You can sell Call options on Apple (AAPL) and receive the option premium in exchange for the risk that the stock may increase in value over the month.
Say Apple (AAPL) is trading at $120 and you are going to be conservative and write put options with a strike price at the money ($120). You receive $5 in premium. As long as the price of Apple (AAPL) is less than (120 + 5 = $125) at expiration, you have made a profit.
6. Protected Short Sale: This strategy is implemented by shorting the stock and buying a call option on the stock. This provides you with protection against an increase in the price of the stock while you can still participate in the decline in the stocks price. The risk/reward profile is very similar to the Long Put; that’s why it is also know as a ‘synthetic Put.’
Let’s go with Starbucks (SBUX) again. You can short 100 shares at $25 a piece for $2500 and want to protect yourself against a rise in the stocks price so you buy calls on Starbucks (SBUX) right at the money because you are conservative. Say you only want to protect your stock from a decline for 1 month. You buy calls on Starbucks (SBUX) with a strike of $25 and 1 month to expiration for $1. Now, the most you can loose over the month is the $1 you paid for the put while can still participate in any decrease in the stock price. As long as Starbucks (SBUX) is trading for less than $24 at expiration you have made a profit.
Neutral Option Strategies:
7. Short Straddle: This strategy is implemented by simultaneously writing a put and a call option on the same stock with the same strike price and the same expiration date. This way, as long as the stock price remains somewhat stable you will profit.
For example, say Google (GOOG) is trading at $500 and you think it will remain near that price over the next month: sell google (GOOG) $500 Calls for $16 and sell google (GOOG) $500 Puts for $15, both with expirations of about 1 month. As long as the price of Google (GOOG) at expiration in one month is trading above ($500 – (15 + 16) = $469) and below ($500 + (15 + 16) = $531) you have made a profit.
8. Short Combination (Short Strangle): This strategy is similar to the Short Straddle as you write a call and a put option; however, the difference is that with a short combination you use different strike prices. This way you can increase your window of profit opportunity just incase there is a price move.
For example, say Apple (AAPL) is trading at $120/share and you think the price will remain somewhat stable over the next month but are a bit more causes than the Short Straddle Investor: sell Apple (AAPL) $130 Calls for $2 and sell Apple 110 (AAPL) Puts for $3; both with one month to expiration. As long as the Apple Shares remain above (110 – 3 – 2 = $105) and below (130 + 3 + 2 = $135) you have made a profit. This way you will receive less option premium but are more likely to make a profit.
9. Long Straddle: This strategy is the opposite of the Short Straddle; an investor will simultaneously buy a call option and a put option on the same stock with the same strike price and same expiration date. Investors use this strategy when they think a large price more will occur in a stock but are unsure of which direction the stock will move. This strategy can work well when a major anticipated decision is about to be made for the stock: buy-back program, law suite, new technology, earnings reports, presidential election.
For example, say the United States Presidential Election will occur in the next month and you want to find a way to profit. Some stocks will move depending on which candidate wins and you decide to focus on Starbucks (SBUX). Say one candidate wants to increase taxes on milk and the other wants to decrease them. You know this will effect Starbucks (SBUX) bottom line so you decide to implement a long straddle because you are not sure which candidate will win. You buy calls and puts with the same strike price on Starbucks (SBUX) and same expiration month. When the decision is announce the stock will most likely move dramatically in one direction. As long as the stock moves in one direction more than the amount that you paid in option premium you will profit.
10. Time Spreads (Calendar Spreads): This strategy is implemented by buying and writing an equal number puts or calls on the same stock with different expiration dates but the same strike prices. Normally time spreads have a neutral basis but they can also be designed for a bullish or bearish basis.
For example, sell $500 Calls on Google (GOOG) with 1 month to expiration and buy $500 Calls on Google (GOOG) with 6 months to expiration. You can make a profit if the Calls with a shorter time to expiration erode in value faster than the longer term calls. This tends to work as the time value component of an options value usually erodes faster the shorter the term to expiration. However, you need to consider other aspects of the options price like volatility.
For more about options strategy please visit http://www.investcanada.blogspot.com where you have access to more detailed descriptions of options trading strategies including risk/reward profiles, when each should be used, and break even points.
An independent investor with a passion for investment strategy. I currently hold a B.COM and am working towards the CFA designation.
Article Source: http://EzineArticles.com/?expert=Stuart_Mcconnachie
1. Long Call: Simply buy a call option on a stock. This provides unlimited upside potential and caps the associated risk at the amount paid for the stock option. For Example, say you have $1600 and think Google (GOOG) will increase in value: say it is currently trading at $500 a share but you only have enough money to buy 3 shares. Instead of buying the shares you decide to buy call options on Google (GOOG). Let’s say you want to be conservative and only buy options trading write at the money (strike of $500). Now you just need to choose the expiration month (do you think the stock will increase in value soon or will it take a while?)
Say you believe Google (GOOG) will increase in value within 1 month. You buy September 500 Calls for $16 (you have $1000 so you can afford 1 contract (sold in 100 board lots). As long as Google (GOOG) Trades at $516 at expiration in September you have made a profit.
Say GOOG is trading at $550 at expiration of the call options:
If you had bough 3 shares your profit would be ($550-500)*3 = $150.
If you bought the Call Options your profit would be {(550-500)-16}*100 = $3400.
2. Put Writing (Short Put): Simply sell put options on a stock. This provides you with the option premium while your maximum risk is strike price of the option minus the premium received. Your max risk scenario would only occur if the price of the stock went to $0. For this strategy an investor will normally have a neutral to bullish market forecast.
Say you are interested in Apple (AAPL) and think it will appreciate in value or remain the same. You can sell Puts on Apple (AAPL) and received the option premium in exchange for the risk that the stock may decrease in value up to the expiration of the stock options you sell. Say Apple (AAPL) is trading at $120. To be conservative you write put options with a strike price at the money ($120) for $6 each and an expiry in 1 month. Say you only write 1 contract, you will receive $600. While you are waiting for the option to expire you can invest that $600 elsewhere say in Google. At expiry, as long as the Apple (AAPL) is trading above (120 – 6 = $114) you have made a profit.
3. Married Put: This strategy is implemented by buying the stock and buying a put on the stock. This provides you with protection against a price decline while you can still participate in all upside in the stock price. The risk/reward profile is very similar to the Long Call; that’s why this strategy is also referred to as a ‘synthetic call.’
Lets go with Starbucks (SBUX). You buy 100 shares at $25 a piece for $2500 and want to protect yourself against a decline in Starbuck’s (SBUX) stock price so you buy puts right at the money because you are being very conservative. Say you only want to protect your stock from a decline for 1 month. You buy puts with a strike of $25 1 month to expiration for say $1. Now, the most money you can loose over the month is the $1 you paid for the put while you still can participate in any upside so as long as the Starbucks (SBUX) is trading above $26 at expiration you have made a profit.
Neutral to Bearish Strategies
4. Long Put: Simply buy Put Options on a stock. This strategy is implemented when an investor has a bearish forecast for a stock. Say you think Google (GOOG) will decrease in price over the next month. Instead of shorting Google (GOOG) you decide to buy put options on Google (GOOG) because you don’t want to put so much money at risk. Say Google (GOOG) is trading at $500. If you were to short the stock you need to be able to cover you position. Say you have $1500, you would be able to cover shorting 3 shares. If you buy puts and are conservative you could write at the money $500 puts for one month out for say $15. You could afford 1 contract (100 shares). If you had just shorted the stock you would profit as long as the stock declines in value, but you have unlimited up side risk. With the put options on google (GOOG) your risk is limited to you initial investment while your rewards could be substantial.
Say Google (GOOG) in one month is now trading at $450:
If you shorted the stock your profit would be ($500 - $450) * 3 = $150
If you purchased the puts your profit would be ($500 + $15 - $450) * 100 = $6500
5. Call Writing: Simply Write (Sell) call options on a stock. This provides you with the option premium while your maximum risk is infinite (the stock can potential increase to infinity, ha). For this strategy an investor will normally have a neutral to bearish market forecast. Say you are interested in Apple (AAPL) and think that it will depreciate in value over the next month or remain the same. You can sell Call options on Apple (AAPL) and receive the option premium in exchange for the risk that the stock may increase in value over the month.
Say Apple (AAPL) is trading at $120 and you are going to be conservative and write put options with a strike price at the money ($120). You receive $5 in premium. As long as the price of Apple (AAPL) is less than (120 + 5 = $125) at expiration, you have made a profit.
6. Protected Short Sale: This strategy is implemented by shorting the stock and buying a call option on the stock. This provides you with protection against an increase in the price of the stock while you can still participate in the decline in the stocks price. The risk/reward profile is very similar to the Long Put; that’s why it is also know as a ‘synthetic Put.’
Let’s go with Starbucks (SBUX) again. You can short 100 shares at $25 a piece for $2500 and want to protect yourself against a rise in the stocks price so you buy calls on Starbucks (SBUX) right at the money because you are conservative. Say you only want to protect your stock from a decline for 1 month. You buy calls on Starbucks (SBUX) with a strike of $25 and 1 month to expiration for $1. Now, the most you can loose over the month is the $1 you paid for the put while can still participate in any decrease in the stock price. As long as Starbucks (SBUX) is trading for less than $24 at expiration you have made a profit.
Neutral Option Strategies:
7. Short Straddle: This strategy is implemented by simultaneously writing a put and a call option on the same stock with the same strike price and the same expiration date. This way, as long as the stock price remains somewhat stable you will profit.
For example, say Google (GOOG) is trading at $500 and you think it will remain near that price over the next month: sell google (GOOG) $500 Calls for $16 and sell google (GOOG) $500 Puts for $15, both with expirations of about 1 month. As long as the price of Google (GOOG) at expiration in one month is trading above ($500 – (15 + 16) = $469) and below ($500 + (15 + 16) = $531) you have made a profit.
8. Short Combination (Short Strangle): This strategy is similar to the Short Straddle as you write a call and a put option; however, the difference is that with a short combination you use different strike prices. This way you can increase your window of profit opportunity just incase there is a price move.
For example, say Apple (AAPL) is trading at $120/share and you think the price will remain somewhat stable over the next month but are a bit more causes than the Short Straddle Investor: sell Apple (AAPL) $130 Calls for $2 and sell Apple 110 (AAPL) Puts for $3; both with one month to expiration. As long as the Apple Shares remain above (110 – 3 – 2 = $105) and below (130 + 3 + 2 = $135) you have made a profit. This way you will receive less option premium but are more likely to make a profit.
9. Long Straddle: This strategy is the opposite of the Short Straddle; an investor will simultaneously buy a call option and a put option on the same stock with the same strike price and same expiration date. Investors use this strategy when they think a large price more will occur in a stock but are unsure of which direction the stock will move. This strategy can work well when a major anticipated decision is about to be made for the stock: buy-back program, law suite, new technology, earnings reports, presidential election.
For example, say the United States Presidential Election will occur in the next month and you want to find a way to profit. Some stocks will move depending on which candidate wins and you decide to focus on Starbucks (SBUX). Say one candidate wants to increase taxes on milk and the other wants to decrease them. You know this will effect Starbucks (SBUX) bottom line so you decide to implement a long straddle because you are not sure which candidate will win. You buy calls and puts with the same strike price on Starbucks (SBUX) and same expiration month. When the decision is announce the stock will most likely move dramatically in one direction. As long as the stock moves in one direction more than the amount that you paid in option premium you will profit.
10. Time Spreads (Calendar Spreads): This strategy is implemented by buying and writing an equal number puts or calls on the same stock with different expiration dates but the same strike prices. Normally time spreads have a neutral basis but they can also be designed for a bullish or bearish basis.
For example, sell $500 Calls on Google (GOOG) with 1 month to expiration and buy $500 Calls on Google (GOOG) with 6 months to expiration. You can make a profit if the Calls with a shorter time to expiration erode in value faster than the longer term calls. This tends to work as the time value component of an options value usually erodes faster the shorter the term to expiration. However, you need to consider other aspects of the options price like volatility.
For more about options strategy please visit http://www.investcanada.blogspot.com where you have access to more detailed descriptions of options trading strategies including risk/reward profiles, when each should be used, and break even points.
An independent investor with a passion for investment strategy. I currently hold a B.COM and am working towards the CFA designation.
Article Source: http://EzineArticles.com/?expert=Stuart_Mcconnachie
Wednesday, September 12, 2007
Investing Making Money - How To Make A Fortune On Any Investment You Choose
When it comes to investing and making money, whether it be through real estate or the stock market. However, here’s one thing you need to keep in mind: no matter which avenue of investment you take, it is always about the numbers. Here’s what I mean.
In many instances, many people start investing in a rental property or a stock simply because somebody calls them up and tells them they have to get in on this thing, because it’s going to be huge. Stock brokers are notorious for doing this.
Since they make a certain percentage of the money you are investing, naturally they want to get their clients to invest as much as possible. Therefore, they will often times call up their customers and try to hype them up on a stock, telling them it will be the next big thing, and it’s a can’t miss opportunity.
An easy way to tell whether they are telling the truth, when they call up, is to ask them if they themselves are investing their own money in the stock. If they aren’t, you can be sure they are trying to get you to invest just for the money.
How can you tell whether something, whether it be a company or a real estate property, is a good investment? Check the numbers. Unfortunately, most investors aren’t educated enough to do this.
Quite simply, before laying down your money in any investment, make sure it is already turning a profit; don’t be duped by somebody who tells you they are on the verge. If the investment doesn’t have a long and profitable history, it’s always best to move on and look elsewhere. This is the only way to making money investing; if you don't do this, you are essentially gambling with your money. If you invest in a stock or rental property that has been churning out the money for 10+ years, then you can be reasonably sure it will continue making money.
Here's one more quick step: make sure to look into the investment carefully, to make sure the future outlook is also profitable. Just because an investment has proven to make money in the past doesn't necessarily mean this trend will continue. Follow these steps, and you will be investing and making money faster than you ever thought possible.
To learn to invest money and for other investing advice, try checking out http://www.online-investing-tips.com.
This is a popular investment site that gives money investment advice to help you achieve financial freedom.
Article Source: http://EzineArticles.com/?expert=Josh_Neumann
In many instances, many people start investing in a rental property or a stock simply because somebody calls them up and tells them they have to get in on this thing, because it’s going to be huge. Stock brokers are notorious for doing this.
Since they make a certain percentage of the money you are investing, naturally they want to get their clients to invest as much as possible. Therefore, they will often times call up their customers and try to hype them up on a stock, telling them it will be the next big thing, and it’s a can’t miss opportunity.
An easy way to tell whether they are telling the truth, when they call up, is to ask them if they themselves are investing their own money in the stock. If they aren’t, you can be sure they are trying to get you to invest just for the money.
How can you tell whether something, whether it be a company or a real estate property, is a good investment? Check the numbers. Unfortunately, most investors aren’t educated enough to do this.
Quite simply, before laying down your money in any investment, make sure it is already turning a profit; don’t be duped by somebody who tells you they are on the verge. If the investment doesn’t have a long and profitable history, it’s always best to move on and look elsewhere. This is the only way to making money investing; if you don't do this, you are essentially gambling with your money. If you invest in a stock or rental property that has been churning out the money for 10+ years, then you can be reasonably sure it will continue making money.
Here's one more quick step: make sure to look into the investment carefully, to make sure the future outlook is also profitable. Just because an investment has proven to make money in the past doesn't necessarily mean this trend will continue. Follow these steps, and you will be investing and making money faster than you ever thought possible.
To learn to invest money and for other investing advice, try checking out http://www.online-investing-tips.com.
This is a popular investment site that gives money investment advice to help you achieve financial freedom.
Article Source: http://EzineArticles.com/?expert=Josh_Neumann
Sunday, September 9, 2007
Real Estate Investment
"If you are interested in getting involved in the business of real estate, there are a few basics that you need to know before you get started. For most, making that first purchases is the hardest step because the jargon and paperwork involved with the business can seem a bit overwhelming. In addition, there are so many different types of properties to purchase that investing in real estate can seem downright confusing.In order to simplify the process and to get started in the business of real estate investment, there are three major areas you must consider.
These areas include:
• Getting comfortable with the market
• Knowing your strong points
• Establishing your goals
Once you have taken care of these three areas, you will find that it becomes much easier to buy and sell real estate for profit.Getting Comfortable with the MarketYou most likely will never be completely comfortable with the real estate market until you actually start to dabble in it. The more you buy and sell real estate, the more you will learn and the better you will be able to understand how to gain the most profit from your investment. At the same time, you need to become somewhat comfortable with the process before you begin.The best way to get comfortable with the business of real estate investment is to get to know other investors and to learn from them.
There are many ways you can accomplish this, including:
• Attend Real Estate Investment Association meetings
• Talk with other investors and learn from their stories
• Partner with other investors – you can even offer to do some work for free while they teach you the ins and outs of the business
You can also learn a great deal about the real estate business by watching listings and sales. The MLS is a good way to keep up with sales information, while some counties also publicize sales in their local newspapers. By watching the market closely, you will begin to notice trends that can help you maximize your profits and minimize your risks.
Knowing Your Strong PointsThere isn’t necessarily a “right” way to approach a real estate deal. Rather, you need to understand your own strengths and weaknesses so you can approach the deal from the angle that works best for you. To help you better understand your strengths, you might have to do a little trial and error. You should also choose just one area in which you can specialize.
Areas of specialty may include:
• Foreclosures
• Pre-foreclosures
• Rehabs
• Quick flips
Once you become comfortable with one area of specialty, you can expand your business to include other types of real estate investments if you desire.Establishing Your GoalsNo business can be a success without first establishing clear business goals, the same is true when it comes to real estate investment. To help you better develop a business plan, you must first decide where you are going. For example, if you are just looking to generate a little side income, you might look into investing in fixer uppers or into flipping houses. If your goal is to earn a sizeable income, however, you will need to think bigger.
Whatever your long term goals may be, you can create a business plan that will help you achieve that goal. This will involve developing several small goals along the way that will help you monitor your progress and stay on track.The business of real estate investment can be quite profitable and can be of very little risk if you approach it wisely.
Do your homework, be honest with yourself about your strengths and weaknesses, and establish goals and you will be sure to be a success."Kinan Beck is the Broker and co-owner of One Source Realty in Austin Texas. Visit Kinan’s Austin Real Estate Guide, visit his Austin Realtor website, & his Tulsa Real Estate website. He has seen considerable success in real estate, and looks forward to many more years in the business.Article Source: http://EzineArticles.com/?expert=Kinan_I_Beck
These areas include:
• Getting comfortable with the market
• Knowing your strong points
• Establishing your goals
Once you have taken care of these three areas, you will find that it becomes much easier to buy and sell real estate for profit.Getting Comfortable with the MarketYou most likely will never be completely comfortable with the real estate market until you actually start to dabble in it. The more you buy and sell real estate, the more you will learn and the better you will be able to understand how to gain the most profit from your investment. At the same time, you need to become somewhat comfortable with the process before you begin.The best way to get comfortable with the business of real estate investment is to get to know other investors and to learn from them.
There are many ways you can accomplish this, including:
• Attend Real Estate Investment Association meetings
• Talk with other investors and learn from their stories
• Partner with other investors – you can even offer to do some work for free while they teach you the ins and outs of the business
You can also learn a great deal about the real estate business by watching listings and sales. The MLS is a good way to keep up with sales information, while some counties also publicize sales in their local newspapers. By watching the market closely, you will begin to notice trends that can help you maximize your profits and minimize your risks.
Knowing Your Strong PointsThere isn’t necessarily a “right” way to approach a real estate deal. Rather, you need to understand your own strengths and weaknesses so you can approach the deal from the angle that works best for you. To help you better understand your strengths, you might have to do a little trial and error. You should also choose just one area in which you can specialize.
Areas of specialty may include:
• Foreclosures
• Pre-foreclosures
• Rehabs
• Quick flips
Once you become comfortable with one area of specialty, you can expand your business to include other types of real estate investments if you desire.Establishing Your GoalsNo business can be a success without first establishing clear business goals, the same is true when it comes to real estate investment. To help you better develop a business plan, you must first decide where you are going. For example, if you are just looking to generate a little side income, you might look into investing in fixer uppers or into flipping houses. If your goal is to earn a sizeable income, however, you will need to think bigger.
Whatever your long term goals may be, you can create a business plan that will help you achieve that goal. This will involve developing several small goals along the way that will help you monitor your progress and stay on track.The business of real estate investment can be quite profitable and can be of very little risk if you approach it wisely.
Do your homework, be honest with yourself about your strengths and weaknesses, and establish goals and you will be sure to be a success."Kinan Beck is the Broker and co-owner of One Source Realty in Austin Texas. Visit Kinan’s Austin Real Estate Guide, visit his Austin Realtor website, & his Tulsa Real Estate website. He has seen considerable success in real estate, and looks forward to many more years in the business.Article Source: http://EzineArticles.com/?expert=Kinan_I_Beck
Saturday, September 8, 2007
Investment technique For creating Passive Income
There are many wealth creation strategies and investment techniques available to those who are looking to create a passive income. These fall into three main categories. Running a business, investing in property and investing in the share market. Although there are many options in each of these areas, finding the right wealth creation strategy for you is not that hard.The formula for Wealth Creation is relatively simple.
In order to increase your wealth, you need to increase your wealth generating activities. Most of us start out trading our time, for money.We get paid an hourly rate for doing a certain job. The problem with this is that in order to increase your income, you usually need to increase the amount of hours you sell to your employer or clients. Which in turn reduces the amount of time you have to spend on yourself, your family and doing the things you enjoy.In order to increase your quality of life, the only realistic strategy is to increase your income, and reduce the amount of hours you work.
How do you do this you might ask? By using time tested wealth creation strategies and investment techniques to create and then increase your passive income.Creating a Passive Income gives you more time and money to spend on Wealth CreationPassive income is generated when you are making an income without having to work for it. For example if you own a business, that you have setup to run completely on its own, or if you own shares in a company that pays you annual dividends, or perhaps a piece of real estate that generates capital or rental returns.
All these investment techniques earn you passive income. because you are not limited by the amount of hours you can spend per day working on them. Instead of working for money, you now have money working for you. This is the true essence of any effective wealth creation strategy. Maximum return for minimum effort.
Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at http://www.Global-Investment-Institute.comInvestment webmasters or publishers, please feel free to use this article provided this reference is included and all links remain active.Article Source: http://EzineArticles.com/?expert=Mika_Hamilton
In order to increase your wealth, you need to increase your wealth generating activities. Most of us start out trading our time, for money.We get paid an hourly rate for doing a certain job. The problem with this is that in order to increase your income, you usually need to increase the amount of hours you sell to your employer or clients. Which in turn reduces the amount of time you have to spend on yourself, your family and doing the things you enjoy.In order to increase your quality of life, the only realistic strategy is to increase your income, and reduce the amount of hours you work.
How do you do this you might ask? By using time tested wealth creation strategies and investment techniques to create and then increase your passive income.Creating a Passive Income gives you more time and money to spend on Wealth CreationPassive income is generated when you are making an income without having to work for it. For example if you own a business, that you have setup to run completely on its own, or if you own shares in a company that pays you annual dividends, or perhaps a piece of real estate that generates capital or rental returns.
All these investment techniques earn you passive income. because you are not limited by the amount of hours you can spend per day working on them. Instead of working for money, you now have money working for you. This is the true essence of any effective wealth creation strategy. Maximum return for minimum effort.
Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at http://www.Global-Investment-Institute.comInvestment webmasters or publishers, please feel free to use this article provided this reference is included and all links remain active.Article Source: http://EzineArticles.com/?expert=Mika_Hamilton
Friday, September 7, 2007
Online Investing Tips
The world of online stock investing has proved to be the fortune maker for thousands of people. It is a dynamic market where an intelligent and careful investor can make a lot of money. It has been regarded as the best legal way of making money in the shortest time. In spite of all this, the fact that the stock market can be a risky market and it has made many investors back out.
For a new stockbroker it is essential to be well versed with the terms and trends of the stock market if he/she wants to succeed with the least of risks involved. It is futile to make brash theories about the stock trading field on your own hunches. This will lead to the loss of money and you might be forced to withdraw from future efforts in this field. In order to excel in this industry, you have to employ good planning skills with a lot of patience to get the desired results.
One of the best things you can do to raise your income through stock market trading is to study the working methods of the investors who have been above average in this field and follow their example. You must start off by investing in the stock market with relatively safer investments. In the beginning, you must stay clear from stocks that have a history of extreme fluctuations. Another thing to be kept in mind is that you must start the investment process at a young age so that you get the maximum returns on your retirement.Today you can invest your resources at home. This is a very good thing for you as you can utilize the extra time in educating yourself on the finer points of the market. You must read all the relevant information and learn to ward off useless advices.
There are many people who can create a situation of panic around you and this might lead to a situation where you might make the wrong decisions. The determination to stick to a well-planned investment is essential to get the right results. Stock market quotes are a great way in analyzing the market trends. They help in the right assessment of a stock as you can see its performance over a wider period of time.You should not hesitate to use the services of an established broker if you are new to the market and need some good advice to start off with your fortune making exercise.
Patience is also a must-required virtue, which will help you in making the right choices. You must realize that money cannot be made overnight and needs meticulous planning to become a reality. If a stock broker is patient and well educated about his investments, he/she is guaranteed to make the most out from the online stock-trading field. With these points in mind, you can surely benefit a lot in the long run, and carve out a better future for you and your family.
Open an account with sogoinvestIf you are new to sogoinvest: Online stock trading investmentArticle Source: http://EzineArticles.com/?expert=Amit_Malhotra
For a new stockbroker it is essential to be well versed with the terms and trends of the stock market if he/she wants to succeed with the least of risks involved. It is futile to make brash theories about the stock trading field on your own hunches. This will lead to the loss of money and you might be forced to withdraw from future efforts in this field. In order to excel in this industry, you have to employ good planning skills with a lot of patience to get the desired results.
One of the best things you can do to raise your income through stock market trading is to study the working methods of the investors who have been above average in this field and follow their example. You must start off by investing in the stock market with relatively safer investments. In the beginning, you must stay clear from stocks that have a history of extreme fluctuations. Another thing to be kept in mind is that you must start the investment process at a young age so that you get the maximum returns on your retirement.Today you can invest your resources at home. This is a very good thing for you as you can utilize the extra time in educating yourself on the finer points of the market. You must read all the relevant information and learn to ward off useless advices.
There are many people who can create a situation of panic around you and this might lead to a situation where you might make the wrong decisions. The determination to stick to a well-planned investment is essential to get the right results. Stock market quotes are a great way in analyzing the market trends. They help in the right assessment of a stock as you can see its performance over a wider period of time.You should not hesitate to use the services of an established broker if you are new to the market and need some good advice to start off with your fortune making exercise.
Patience is also a must-required virtue, which will help you in making the right choices. You must realize that money cannot be made overnight and needs meticulous planning to become a reality. If a stock broker is patient and well educated about his investments, he/she is guaranteed to make the most out from the online stock-trading field. With these points in mind, you can surely benefit a lot in the long run, and carve out a better future for you and your family.
Open an account with sogoinvestIf you are new to sogoinvest: Online stock trading investmentArticle Source: http://EzineArticles.com/?expert=Amit_Malhotra
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