Saving N Spending |
- Investing in a Rental Property
- 7 Things to do With a Lump Sum of Cash
- 4 Ways to Fund Your Business Idea
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Posted: 14 Apr 2014 08:44 PM PDT
 Real estate investing can take many different forms. You can buy foreclosure properties, abandoned properties, or move-in ready homes. If you are thinking about buying a home as an investment, though, you should not buy anything without considering investing in a rental property. A rental property is different because it can actually generate money while you own it. Rent prices are higher than mortgage prices in most areas, especially for buildings that have multiple units. For example, you may be able to buy a building that requires you to pay $1,500 a month for the 30 year mortgage, but you know that you can get anywhere from $750 to $900 per unit in your area. With four units, that means you can bring in between $3,000 and $3,600 each month, paying the mortgage and giving you an income. One strategy, for example, could be putting all of the income that you make back into the house. You can get through the whole mortgage in far less than 30 years. You can then sell the house, and you get to keep 100 percent of the profit for yourself. You do have to forgo your monthly income to do this, but it saves you thousands in interest on the property since you pay it off so quickly, and you get a bigger payday in the end. You could also keep it longer, making more each month since your mortgage is paid off and you only owe for the property taxes. Whatever strategy you choose, a rental properly may be the perfect investment for you if you are interested in real estate. Starting off in real estate investing can create many new questions you had never considered. One area that changes the game is financing rental property. Banks and mortgage companies deal with rental property differently than home owner occupied property. You will need to meet a different set of criteria for being approved for the loan for your rental properties. One difference you will immediately discover is in the amount of your down payment. The low down payment loans are not commonly available for purchasing rental property. Expect to pay 15% down, and sometimes even more. When you start exploring options for financing your rental property investment, you have several options to consider. The first most people consider is a mortgage broker. A good second option is your local banks or savings and loan companies. Along with checking with the banks and mortgage companies, check to see if FHA loans are available for financing. The last option commonly considered is private lenders. Since you are moving out of buying for yourself, and into buying as a business investment, all lenders will want to know the details of your proposal. They will want to evaluate your potential monthly income in comparison to the mortgage payments, and other expenses of maintaining the rental property. Expect to provide them with insurance estimates, taxes you would expect to pay, utility costs, and routine maintenance cost estimates.  Related posts:
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Posted: 14 Apr 2014 08:34 PM PDT
 Let's say you're given three wishes. What are the first things, besides of course one hundred more wishes and world peace, you would wish for? If you're like most everyone else, it's a large wad of lots of cash. The good news is you don't need a genie for that wish to come true. Between tax returns, 401Ks, pensions, inheritance, or even winning the lottery, chances are you’ll at some point in your life end up with a large sum of money and left wondering what do to with all of it.Pay Off DebtThe most responsible thing to do is to get yourself out of debt. Be it credit card, loans, or even car and house payments, clearing away debt should be the first thing to consider. Living in debt is one of the most stressful factors in a person's life, and having that wiped away can greatly improve your overall quality of life. Sure, you won't have that 70-inch flat screen TV and new Ferrari in the driveway, but you’ll have the security and relief of knowing that you won't pass your debt onto your family.Monthly Spending MoneyHave you been dying to eat out at that new restaurant down the street? Or are your clothes worn down to holes? There are many day-to-day wants that most people have a hard time working into a monthly budget. If you find yourself coming into a large lump of cash, considering setting some aside for those occasions when an extracurricular comes your way. That way you have the money for those little things in life, without having to dip into your monthly budget.Retirement FundDepending on how close you’re to retirement, this is a great option. If you’re reaching retirement knowing that you don't have much money saved, put away a large portion of that money. It may be hard to set it aside, but it’ll be worth it when you're able to enjoy your golden years complaining about kids these days and napping on the porch in between day time television.Short and Long Term InvestmentsIt's always wise to consider investing money into different forms of investments. Short-term investments like money markets and other liquid investment vehicles will offer somewhat lower returns, but with low fees and penalties for early withdrawal. If you're looking for long-term investments, things like mutual funds or other portfolios will yield better results over a longer period of time, but they’ll need to be invested for longer periods of time.College FundsIf you have kids, then setting up a college fund for them is another great way to invest your money. Though it definitely won't be an investment that’ll yield much monetary results, it’ll give your kids the head start they need to succeed. And some day when you're in your golden years, they'll be able to repay the favor.Have FunThere's nothing wrong with wanting to have a little fun with your money, as long as you don't get carried away. Why not plan that vacation that you've been dying to take but just never got around to? Or try your luck with some online gambling? Whatever it is that tickles your fancy, it's ok to indulge yourself now and then.CharitiesGiving back is one of the best things a person can do with their fortunes. What better feeling is there than knowing that your money is going to someone who truly has nothing? There are hundreds of charities found online, and no matter which one choose, you'll sleep better at night knowing that you gave back to your fellow man.There are hundreds of ways to spend your money, and ultimately it comes down to your situation in life and how you want to spend it. There are definitely right and wrong ways to handle your money, but no one but you can decide what those right and wrongs ways are for you. Related posts:
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Posted: 14 Apr 2014 08:22 PM PDT
 Got an idea for a business? Great! You're on the road to achieving the dream of self-independence, personal wealth, and business fulfilment… but it takes a lot of hard work to reach that point, and your passion will only take you so far. Sooner or later you'll need money to fund your project. Depending on your circumstances, there's a number of ways you can find support to get your dreams off the ground.Selling sharesIf it works for the entrepreneurs on Dragon's Den, it could work for you too! If you have friends or family who have faith in your business and spare cash, consider asking them to provide funding in exchange for a share of your company and its profits. Another source of funding is angel investors – just like on Dragon's Den, there are individuals always looking out for the next big idea with the cash to back you up.Remember that you'll have to give up part of your control in the company, which might come as a shock if you're used to total control. Any investors will have a say in how the company is run, and this can conflict with your own ideas. It's important to take legal advice before selling shares in your business to help prevent any unexpected complications in the future. CrowdfundingIn recent years, the concept of 'crowdfunding' has become particularly popular – check out websites like Kickstarter for ideas. If your idea has widespread appeal, ordinary people might well come together to provide support. The great thing about crowdfunding is that you needn't necessarily give up control of your company – rewards for your backers can come in other forms, ranging from advance prototypes to discounted services. If you're looking for serious cash, you can offer backers a deluxe reward like a personal meeting or direct input in your company's operations.Loans and overdraftsIf you've got an idea that will bring in guaranteed income, a loan can be a safe bet to fund your business without jeopardising control of your company. The repayments will take a cut out of your profits, but with careful planning you can balance this to leave you with enough to save and re-invest in your business in the future. If you're struggling to find finance because of a poor credit rating, a personal loan from a provider like 1st Stop might be a good idea – it's secured against your home so you're more likely to be approved.If you're not sure how much money you'll need, you can arrange a business overdraft with your bank. This gives you the flexibility to borrow money at short notice and pay it back without penalties. Grants and other schemesAnother way to fund your business without giving up control is to find out if there are any grants available from the government. These grants come in many different forms. For example, some grants might be set up to boost business growth in your local area. Others are geared towards young business entrepreneurs. Some grants will cover specific costs, like funding to pay the wages of your employees. It's particularly worth looking for a grant if you're working in a niche field.Related posts:
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