Tuesday, January 29, 2013

How to Get Rich - Real Estate Management Tips

Do you have a burning desire to own Revenue Real Estate ?

Do you look forward to telling people how many properties you own ?

Before you jump in you had better read the following guidelines !

Investment Management

When it comes to individual Real Estate investments you can quite easily become bogged down with so many details that you lose sight of your original purpose. Namely, to make money ! No other reason !

So many so called Real Estate investors that I know do all of their own work. This means that they collect the rent, do minor repairs, get calls from Tenants in the middle of the night or when they're on vacation,etc. etc.

This is not what I call a real Real Estate investor. They have simply purchased another job that takes away their precious time. I would much prefer to spend my valuable time looking for new investments to make me more money and you should too. If you want to become truly wealthy that is.

What To Do

Well, as I said, my time is better spent looking for more opportunities. I leave the everyday details of managing my properties to a professional property management firm. For a small fee (usually about 10% of the rent collected) all I have left to do is cash the rent checks. They do consult with me if there are any larger repairs, but that is quite rare. Does this sound like a better option for you ? It should !

If you already own Revenue Properties and manage them yourself, start shopping around for a management company today. As with anything else, there are good ones and some not so good ones. Ask for references and check them out.

When buying new properties always build the 10% management fee into your cash flow projections. If they don't give you positive cash flow with that cost, they are not good revenue investments. I always look for at least $100.00 per month positive cash flow per door net of all expenses. Anything less is not worth the bother.

The Business of Real Estate

Your Real Estate should be thought of as a business. If it doesn't put money in your pocket every month, sell your holding and invest elsewhere. Yes, elsewhere ! By using a management company, you can invest in Real Estate anywhere in your country, your continent, or even the entire world. I guarantee there will be a good opportunity somewhere if you look hard enough.

Real Estate should never be the only form of investment that you have. As with any investment category, it is wise to diversify to give you added safety and security of future income.

As always, I welcome your comments and suggestions for future topics.

Tuesday, January 22, 2013

How to Get Rich - Break the Mold

Do you fit into the mold of everyone else's expectations ?

Do you go with the flow and choose the path of least resistance ?

If you are like most you probably said yes to both of the above questions !

Break the Mold

If you truly want to become wealthy you must learn to break the mold and stop being bullied into thinking or doing things exactly like everyone else. No one else really truthfully wants you to be more successful than they are. (except for maybe your proud papa or mama) Most would rather you be just like them or even a little worse off than them. That way they can feel good about themselves without doing anything with their own lives. Same old, same old, ho hum, ho hum. This is human nature.

You must start thinking for yourself and work towards achieving what you want out of life. No two individuals will have the same objectives or dreams. That would be absolutely impossible because each individual lives a different life and sees different things.

To rise above the crowd you must first learn to break the mold of everyone else's expectations. Never do something because someone else thinks it would be good for you. Do it because you want to do it, otherwise  you may regret it for a very long time.

Where To Start

Your starting point must come from within your own mind. This is where you must decide what you want to do and start planning before telling anyone. I mean anyone. Don't give anyone a chance to kill your dream before you can develop it properly. I know far too many who have made this fatal mistake and been shot down before they had a chance to ever develop their idea.

Keeping a good idea or plan to yourself can be quite difficult. You will have the overwhelming urge to blurt out your plan, but don't. Not until the time is right.

When Is The Time Right

When is the time right to share your idea with people you trust ? I would say this is only when you have answered every possible question about your idea or plan and it still makes sense to proceed.

Many ideas will not pass this initial test and would probably not have worked in reality. By developing your ideas internally in this way and screening out the not so good ones, you could save yourself a few awkward moments. Be sure in your own mind before you externalize.

It takes courage to break the mold of everyone else's expectations. However, this could very well be the most important decision and action in your entire lifetime. Don't hesitate, do it now !

As always, I welcome your comments and suggestions for future topics.

Tuesday, January 15, 2013

How to Get Rich - Avoid Feeding the Wealthy

Can you get rich if you keep feeding the wealthy ?

Do you think the wealthy care if you become rich ?

The answer to the above is an absolute NO !

What is Feeding the Wealthy

Feeding the wealthy basically means doing whatever the big corporations and business owners want or more importantly expect you to do. These business owners generally have a monopoly or near monopoly in their given markets and feel they can do whatever they want with little or no consequences. They can raise prices to whatever they want, they can withhold their services for however long they want, etc. They are so confident that they never even consider the possibility of loosing any of their future business.

One good example of this situation is the professional sports organizations around the world. Another are the entertainment conglomerates. There are many others, but I think you get the general picture.

They expect you to go to their show, go to their event, buy their product no matter what. No matter what kind of economy we are in, no matter how much debt an individual has, they will always expect their market to find the money for their product or service. The scary part is, most of the time they are absolutely right.

This is what I call feeding the wealthy !

Find a Better Way 

Don't get me wrong. I'm not saying to give up your favorite form of entertainment or latest gadget. Recreation is a very important part of our lives. What I am saying is to find a way to balance your life in such a way that puts your entertainment and recreation in it's place.

If you really can't afford something, find something that you can afford. Never go into debt over recreational or non essential costs.

It is much better to feed yourself and your family before you feed the wealthy. The wealthy will always get their money from the masses. Most will never truly understand how much they are being taken advantage of.

Emotions play a huge part in the selling of any product or service, especially in the recreational field. The wealthy know this and they are masters of this emotional science.

The biggest thing I would like you to take from this posting is to be able to recognize what the wealthy are doing to affect your life. Only then will you truly be able to make a conscience decision as to how you can reduce your costs associated with feeding the wealthy.

As always, I welcome your comments and suggestions for future topics.

Tuesday, January 8, 2013

How to Get Rich - Discover the Easiest Real Estate Investment

Do you want to take advantage of owning Real Estate in your future ?

Would you like  a simple way to get started in Real Estate investing ?

If so, there is a very simple way that you can gain the benefits of owning Real Estate quickly !

What is the Easiest Real Estate Investment ? 

As I have mentioned in previous posts, the best way to get rich is to own investments that do not take very much of your time to maintain. The problem with traditional Real Estate investing is that it can take a lot of your precious time to develop and maintain. This is especially true for individual properties that you may have to renovate and then find a good quality tenant etc. etc.

Fortunately, there is another option that the average investor can utilize without the hassles of the hands on of individual properties. It is an investment product called a Real Estate Investment Trust or REIT for short. These Real Estate Investment Trusts generally pay you a monthly income simply for holding shares in the investment. They are sold on most stock exchanges and are very simple to buy and sell. The value of their shares fluctuate in the market similar to stocks.

How it Works

A Real Estate Investment Trust takes a  pool of money from investors such as yourself and invests this money in top quality pieces of Real Estate. The Trust manages the everyday activities of each property such as collecting rent, doing maintenance, finding new tenants, etc.For providing this service, they charge a fee which is deducted from the income prior to distribution.

Each Real Estate investment Trust has a different mandate, or in other words a different set of rules which to abide by. For instance, some may invest only in office buildings while others invest solely in residential apartment buildings. Others invest only in hotels, while others invest in commercial manufacturing sites or perhaps retail malls. Whatever the trust invests in, it pretty much has to stick to that sector of the market.

What To Do

Choosing the right trust is very similar to selecting the proper stocks for your investment portfolio. You must do your research on each trust to ensure they are in good financial shape in order that they will easily be able to provide the future income you need. All trusts are not created equal and some sectors of the real estate market will do better at certain times than others. Learn all you can about a trust before making the investment. It will be time very well spent.

For the new investor and/or the investor just wanting to try out real estate investing, I would recommend selecting a good quality Trust as opposed to an individual property. In this way you will not be risking a lot of your hard earned money on a sector of the investing world that can be very costly and challenging for the unprepared.

Not to say you cannot make money on individual properties. Quite the contrary. It's just that it will take a lot more preparation and research. It will also take a lot more of your time and will come with a greater level of risk. Not generally the place to start out.

As always, I welcome your comments and suggestions for future topics.

Tuesday, January 1, 2013

How to Get Rich - Discover the Most Valuable Commodity

Do you know what the most valuable commodity is ?

Do you know what commodity is irreplaceable ?

Chances are you have never thought this way before !

The Most Valuable Commodity

No it is not precious diamonds, it is not gold or silver. In fact it's not any earthly known substance known to man. It is something in your life that cannot be replaced and once it has been used up it is gone forever.

Many people waste this commodity and afterwards wish they had it back again. Every person is given only so much of this commodity but no one knows how much until it is too late.

I'm probably driving you crazy by now. Well here it is. The most valuable commodity known to every individual on this earth is time. There are 86,400 seconds in every day. There are 604,800 seconds in each week. And finally, there are 31,536,000 seconds in each year except for leap years where there are 31,622,400 seconds.

Well, that sounds pretty impressive when you do the math. We have all had a lot of time to do whatever we have done up until now. None of us know how much of this time we have left to do what we have left to do.
That is the problem with life, the uncertainty of it all.

How to Use This Commodity 

There is absolutely nothing we can do to change what we have done with our time in the past. However, there is a lot that can be done to better use the time we have left in the future.

For instance, the more money you can save and invest early in your life, the richer your life will be for a longer future. You will be able to enjoy a much more rewarding life if you have the freedom to do what you want to do.

It takes money to live and enjoy the things you want to get out of life. You can either live for today and forget about tomorrow or you can live a little less today and plan for a better tomorrow. It's your choice. But whatever you decide, remember, there is no going back to do it over again.

For most, the best choice is to do a little bit of both. Enjoy today and plan for a better tomorrow. People that scrimp and save today, give up their enjoyment of time now hoping that they will have time in the future to enjoy their wealth. Sorry, but that time may never come if you become ill. People that spend all their money to enjoy their time now will be wanting in the future time and wishing they had done things differently. Sorry too late. You made your decision and now you have to live wit it.

Future of This Commodity

No one knows what the future will bring. However, we must all go on living with a positive outlook imagining that we will have a long and prosperous future. How could you possibly have a good life if you thought any other way?

Whatever you do right now will shape your future time. The past is in the past and cannot be changed.

Go forth with the time you have today to make your future time as enjoyable as possible. You owe it to your future self.

As always, I welcome your comments and suggestions for future topics.