Real Estate Investing Is It a Cash Cow or Dud

Originally posted 2011-08-31 12:01:08. Republished by Blog Post Promoter

Is real estate investing still a good way to make money?  To answer this question, we will examine what occassional debt  such as credit cards can do to your financial future.

Most people use a credit card like it is a never ending money tree and spend, spend, spend.  If this occurs, you will never achieve wealth.  Here is why.  If that credit card’s interest rate is eighteen percent, you are paying eighteen dollars, for every one hundred dollars you spend.  The latter is an example of “living rich while growing poor.”

The objective in growing rich is to use the concept that the rich use.  It is, use OPM, other people’s money, to become financial free.

The steps are simple.  Reduce consumer debt.  Next, build assets through homeownership, save money, and invest.  Third, borrow against those assets to increase your net worth.

A critical requirement of OPM is that the moeny acquired needs to be used to maintain and/or improve your wealth.  In other words, it is not wise to use your newly acquired funds to purchase stock because the stock may be a higher risk proposition than real estate.

After all, real estate can reduce in value, but it will never be worth zero, unlike stock.  Yes, real estate is always  worth something even if there is no structure on the land.

The land, the dirt, the trees, the air, is all worth something.  So, next time you have some extra money do your homework and consider real estate as your

How to Strengthen your Trading Mindset

How to Strengthen your Trading Mindset

To be able to succeed at trading, you must be fully aware of how to strengthen your trading mindset.

Trying your luck at trading is as good as trying your luck at a card game table in a casino, you take a gamble byt placing your bet on what you consider your aces, try to establish a fallback position by managing your risks and how to play with your cards to make the most out of every possible gambling situation you are in, whether you win or lose.

Here are some common tips on how to strengthen your trading mindset.

Always take full responsibility for your trading decisions.

As a rule of thumb, most investors simply follow the crowd, but successful traders make up their own minds.

Although you should always be open to good advice from other experts, but the final and ultimate decision rests upon you and not with anybody else.

You can always try to focus on the opportunity to learn since there’s plenty of it, but don’t  let it cloud your perspective or determine the choices you make.

Avoid the pitfalls of over-trading.

There are basically two types of over-trading – trading too often and trading too many shares.

If you are trading too often, remind yourself that there’s really no good reason to trade constantly, since extreme over-trading creates stress, produces high commissions but sometimes often leads to losses.

This is so because market forces do not last forever and time has shown various examples of the law of gravity in the trading market- that whatever comes up must go down.

Instead of grabbing every stock that comes along, make sure each trade setup meets the criteria of your trading plan, don’t be too over cocky or too selfish.

To prevent trading too many shares, use a risk calculator to determine the appropriate position size before you click the enter button. It relieves stress to know that the amount at risk for each position you hold is safely proportioned to the size of your entire account, this is asset management at work.

Always go easy on yourself.

There’s a tendency for traders who take responsibilty for their actions to be tough on themselves.

After all, this gives credence to the saying that ‘do not cry over spilled milk.’

This could be a good opportunity for some positive self-criticism, but don’t slam yourself too hard or too often, since even the best traders make mistakes.

When you do, learn from them quickly and then let it go.

Avoid yelling at yourself, as self inflicted psychological damage is tough to overcome, so it’s best to avoid it entirely.

Always think like a winner.

Thinking like a winner turns you into a winner, since the sum of your thoughts has an interesting way of showing up in your life.

Thoughts are like muscles, the ones you use the most will grow to become the strongest. Work on the thoughts you want to develop and focus on them regularly, since it has the tendency to become action, action become habits, and habits determine results.

Always think of success and you are much more to be on your way to success.

Lastly, take every effort to relax.

Even though trading is serious business, the best traders know how to laugh – especially at themselves.

Having fun and enjoying at what you do is a very good motivator to give you focus on making money and earning it on trading.

So know how to strengthen your trading mindset and be on your way to success.

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Why should You Use Technical Indicators in the Stock Market?

Why should You Use Technical Indicators in the Stock Market?

For someone who is new in the trading business, it is always a good start to take time to do some research in line with the useful technical indicators. So much more, even the pros still have the same degree of need for them. What they typically do often is that of surfing the Internet for blogs and articles that feature the discussion of the gurus regarding why they believe that their personal choice of indicators are so far the best. While there is no rule saying that you should not believe them, it is always implied that there are times when the presented indicators are often conflicting. To make things worse, people who simply adopt the exact plans of the Internet guys don’t actually succeed.

The Clear Indication

Now here is the catch. The people who call themselves technical indicator gurus are convinced that their businesses work basically because they have already formulated their specific goals and working your way towards success in this line of trade is all about having your personal definite plan. Yes, all that you must do is to pull things together and execute your wisest judgment. You have to be responsible for every single course of action that you take.

The Importance of Technical Indicators

Why is it important to utilize the so-called stock market technical indicators? Can they really help you out as you find your chance in the stock market? Don’t worry because they can definitely do some of the hard work for you. Most of the known technical indicators are able to spot the precise entry and exit points as you venture into trading in the stock market. More so, you can count on them whenever you need help.

Technical Indicators Explained

For every type of business, there are rules and standards for you to adopt. In line with the stock market, the indicators are among those that can aid in inviting more of your luck.

Basically, technical indicators are the mathematical formulas that you must meet. They are furthermore based on the movement of the price. Since many people trust them, experts agree that they are indeed very much precise.

There are several known indicators out there and normally traders make use of one, two, or even more indicators before they execute whatever decision they have in their minds. The thousands of varieties of indicators likewise run on numerous varying formulas too. In fact, you can take a pick from among them. Of course, as mentioned above, gurus have their own bets. They are likely to recommend to you those which they think are working the best. You must know that many of them suggest those indicators that they personally use or else they will not bear that strong amount of conviction. While it is emphasized that you may or may not follow what they say, it will not also hurt if you prefer the first option. After all, they serve as your guide. On the other hand, never limit yourself and your decision with those things that they tell you. You can always find out the indicators that will also work best for you. Talk about experimentation and discovery!

What is so great with the stock market technical indicators is that their being accurate allows you to see the potentials in making money. They express signals that will let you determine the possible risks at hand. All you must do is to load them up via a chart and they will do the rest.

 

Related articles

• The Technical Indicator: Despite rally, technical repairs needed (marketwatch.com)
• The Technical Indicator: S&P, Nasdaq edge atop major resistance (marketwatch.com)
• We’re In a New Bear Market, Says One Technical Indicator (blogs.wsj.com)

Tips for Recession Proofing Your Portfolio

Anti-Recession Tips for Effectively Shoring Up Your Portfolio

The economy can be hard on your portfolio.  This has happened before and it could happen again.  Now that we’re officially in a recession, what better time to pump up your resources and shore up your portfolio than to make it recession-proof now or at least weather the tough economic times?  Here are some anti-recession tips you might want to consider:

Aim for quality.

If there’s one thing that markets abhor, it’s uncertainty.  This is especially prevalent in the way investors behave when faced with companies that produce predictable figures.  This is also the reason why investors are loathed to take chances on companies that don’t perform as expected.  These companies are usually the small ones, ones that need investors’ faith the most.

To start shoring up your portfolio, try to avoid companies that will rely heavily on you, the investor.  It will be easier for you (and safer for your investment) to rely on companies that more or less show predictable growth because this points to better earning quality.  Opt for these companies instead – these are usually large firms, big players in an industry that have proven staying power regardless of the economy and have plenty of money to continue to run, do business, pay debtors, produce and make their investors happy.

Invest in health care.

Take your pick: drugs, medicines and pharmaceuticals or health services.  Whichever way you go, you have a better means of shoring up your portfolio if you put your faith on this sector that continues to enjoy a healthy performance.

And it shouldn’t surprise you one bit: what the health care industry can offer is a staple among consumers – good health and a means to cure.  Unless someone comes up with a miracle cure soon, the health care industry will continue to thrive.  Until then, this is one more segment of the market that you might consider putting your faith on.

And yes… the fact that certain segments such as pharmaceuticals pay a lot in terms of dividends doesn’t hurt.

Stick where the crowds are.

By crowds, we mean consumers.  Consumers are the lifeblood of economies.  Without their support and willingness to spend, economies can crash and burn so easily.  As an investor looking to shore up your portfolio, here’s an anti-recession tip for you: invest where consumers bloom.

This means putting your money on industries that cater to the most basic of consumer needs, such as food and beverages, personal care and household needs.  Other than the fact that consumers have been proven to continue spending for basics even during a bad economy, these industries have also performed well during less-than-ideal economic times in the past.  You’re less likely to experience disappointment if you go where consumers go.

Diversify.

Recession always brings out the worst – and best – in people, especially investors.  Which way you wish to take is really up to you.  However, wouldn’t it be better to view the recession as an opportunity to find other means to make money?

If you want to shore up your portfolio and avoid the negative effects of a recession, consider diversifying.  But do so only by carefully considering the pros and cons of the industries that you wish to invest in.  Focus on industries that have behaved so well under pressure, particularly those that continue to stay steady even during a recession.

Related articles

• INSTANT MBA: You Can’t Be Recession-Proof, But You Can Be Recession-Resistant (businessinsider.com)
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• Tips for Buying Property During a Recession (taylorbrownrealestatetalks.com)

10 Surprising Ways to Get Money From the Government Involving Real Estate

If you purchased your home using a HUD/FHA insured mortgage, you may be able to get a refund on part of the insurance premium.

To qualify for the refund, you must have purchased your home after September 1, 1983.  You can not be in default on your mortgage.  You also must have paid on that mortgage for seven years.

You can search HUD’s website at http://www.hud.gov/refunds/index.cfm your name or case number to find out if you are due a refund or write:

US Department of Housing and Urban Development

Post Office Box 23699

Washington, DC 20026

or call

800-697-6967

Did you know that the government and more importantly the IRS gives 70% tax credit for an investor that invest and owns low income housing?  To file visit http://www.irs.gov/pub/irs-pdf/f8586.pdf.

The IRS requires that the owner files the claim as part of his or her business credit.    There are, however, special requires for the owner to qualify.  The owner must completed Form 8609, and it  must be filed with the owner’s Federal income tax return.   In addition, the owner must file the Form 8609 for each of the 15 taxable years of the compliance period.   If the owner fails to file the proper forms  the compensation received will be treated as a mathematical or clerical error.  Therefore, if you feel that you qualify please review the rules for Form 8609.  Once you have reviewed and complied with the requires of Form 8609 then file it as required.

Still yet, did you know that you can get a ten percent credit from the IRS for fixing up building buildings built before 1936?  You will need to meet the requires listed on Form 3468.

If you are adventurous, then why not fix up a historic building for a twenty percent credit.  Once again, you will use Form 3468.

How Does Personal Grants Support Real Estate Ventures?

If you are US citizen looking forward to buy or construct a house or invest in property and real estate business,  the US Government is a source to give your dreams a reality. Investment in the real estate includes offices, hotels, land, …

$15000 Free is Available From Obama Government Grants For New …

3. Up to $275000 in grant money to enter the real estate market. While many eyes are focused on the negative aspects of the current recession, the Obama government is ready to spend $1 trillion in the next year in government grants for …

<a href=”http://cheapflatslondon.com/investing-in-real-estate-with-government-grants”>Investing in Real Estate With Government Grants</a><p>Not all people interested in real estate know that there are grants for real estate especially from the state and federal government. Billions of dollars are available as grants and there are many ways to put this money in to good use. …</p><a href=”http://www.docstoc.com/docs/1024408/Government-Grants”>Government Grants</a><p>Elderly and More Free Money for Housing and Real Estate Ventures Additional Sources for Money to Fix Up Your Home Foundation Grants For Foreign Individuals Other Small Business Administration Offices Most Frequently Asked Questions …</p>

<a href=”http://www.realestaterama.com/2009/11/19/home-headquarters-receives-100000-grant-from-neighborworks-america-to-help-strengthen-auburn-and-binghamton-communities-ID06270.html”>Home Headquarters Receives $100000 Grant from NeighborWorks …</a><p>Washington, DC – November 19, 2009 – (RealEstateRama) — NeighborWorks America today announced that it awarded a special $100000 grant to Syracuse-based.</p>

<a href=”http://newyork.realestaterama.com/2009/11/19/home-headquarters-receives-100000-grant-from-neighborworks-america-to-help-strengthen-auburn-and-binghamton-communities-ID0916.html”>Home Headquarters Receives $100000 Grant from NeighborWorks …</a><p>Washington, DC – November 16, 2009 – (RealEstateRama) — NeighborWorks America today announced that it awarded a special $100000 grant to Syracuse-based Home HeadQuarters, Inc.,  a member of the national NeighborWorks network, …</p><a href=”http://www.erierealestateblogs.com/my_weblog/2009/10/grant-to-remove-lead-paint-from-homes.html”>Grant to remove lead paint from homes – Erie Real Estate</a><p>More than 200 property owners in Erie County will benefit from a new $4 million federal grant to control the hazards of lead paint in homes. It’s being run by the city of Erie — but the offer is open…</p>

<a href=”http://pennsylvania.realestaterama.com/2009/11/24/congressman-fattah-awards-844000-in-affordable-housing-grants-gaudenzia-newcourtland-new-directions-for-women-and-pec-receive-funding-ID0294.html”>Congressman Fattah Awards $844000 in Affordable Housing Grants …</a><p>Philadelphia, PA – November 24, 2009 – (RealEstateRama) — Congressman Chaka Fattah (PA-02) today announced the awarding of $844176 in grants from the Federal Home Loan Bank of Pittsburgh (FHLBank) to four new affordable housing projects …</p>

Indiana/Illinois Real Estate Broker Reveals the Insiders’ Secrets To Making Money in This Market

The way that an individual makes money is by keeping expenses low and income high.  The latter is true for any business venture; however, you may be wondering how do you accomplish that in real estate? 

 

To keep expenses low you must be aware of your expenses.  Your expenses may be:

• Property taxes
• Insurance
• Maintenance
• Mortgage

 

Despite the fact that an investor is not eligible for exemptions on income property, there are other ways to decrease the property taxes. 

 

The investor must first understand how property taxes are calculated by the treasurer.  Taxes are calculated by multiplying the tax rate by the assessed value.  The tax rate consists of:

• Police
• Fire
• Schools
• Library
• Trash removal
• Health

The assessed value in most states including Indiana is some variation of the market value for the property. 

 

The investor can lower his or her property taxes his or her property taxes by examining what the property is assessed at.  If the property is assessed for more than the current market will bear or assessed for more than the investor paid, the investor can file an appeal.  If successful with the appeal, the investor can save a lot of money.

 

The investor can save money on insurance, as well.  The investor can have a higher deductible.  Unlike car insurance, the investor does not pay the deductible first, then the insurance pays instead the deductible is deducted from the claim.

 

The investor can also reduce his or her replacement cost to 80% of the value; therefore, reducing the premium for the insurance.  This tactic is only advised if there will be enough available after the deduction to pay the property’s mortgage and/or money available to start on replacement of the property.

 

Still yet another way the investor can save money on insurance is by changing insurance companies.  Yes, shopping around is another way to save money on your premium.  Use caution here make sure you are getting similar or better coverage than you had before when changing insurance companies for a lower premium.

The investor also can set aside a certain amount each month from the collected rental amount for maintenance.  By setting aside a little of the rent, the investor can be prepare for major maintenance issues.

 

Another way an investor can save money on maintenance is by having a home warranty.  The home warranty covers most major components in the property. 

 

Shopping around is always the best way to save money on a mortgage.

 

When looking to save money in real estate, research and shop around you will be amazed at your savings.