Monthly Archives: April 2017

Real Estate Investing 101: A Beginners Guide!

Now that people are being scared away, the prices are dropping and value is becoming real again. Houses will still get old but there will be a lot less competition for those who stand the test of time. If you didn’t learn about flipping foreclosed homes in this last decade, good for you. Now you will be able to make some real money in it.

I dare you to actually ask your favorite expert exactly how they pick the stocks and funds he or she is recommending you buy today. I bet you won’t get the full story. Here’s my rule of thumb: If they’ll dangle big fish in your face but they won’t teach you how to reel one in yourself, Run!

Expect Volatility. Don’t be afraid of big market swings, because you can profit from them! By learning to deal with volatility, you can make money in even the most topsy-turvy market environments. I advise you to stick to the 60-30-10 rule: 60% of your portfolio should be in the most conservative stocks, 30% in moderately aggressive stocks and 10% in aggressive stocks. This mix gives us the smoothest path to profits over the long run. Especially when the market is volatile, this mix keeps our portfolios afloat! The 60-30-10 rule keeps us locked and loaded, even when the market fluctuates day-to-day.

The amount of revenue you pull in if you keep your occupancy rate at or above a certain level (see the James Fales YouTube video for minimum occupancy rates) allows you to realize more revenue now, as well as higher gains later. Think about it: once you go to sell your property, the markup is going to be exponential to that of a single-dwelling property. At the same rate of return, more money invested means more money returned. It’s investing 101 all over again. If you invest 0,000 at a 10% rate of return, that’s a ,000 gain. If you invest ,000,000 at that same 10% rate of return, that’s a 0,000 profit. Makes sense to me.

That’s a good question. The reason, as mentioned earlier, is people don’t take action. They don’t take action because they don’t have the mindset and mental willpower to set aside money today in order to have more tomorrow. The need to fulfill cravings for instant gratification is far too powerful for some people. As a result, they rack up credit card bills, go deep in debt, and are upside down paying bills that exceed their income. When the money that you owe is greater than the gains you can make on an investment, it’s impossible to get ahead.

The best stock investment advice is don’t invest in stocks! Instead opt for no-load mutual funds and exchange traded funds. Preferably mutual funds and exchange traded funds (ETF’s) with low expenses and broad diversification – such as passive or index funds.

Well, once you have mastered the stock market basics, it becomes essential for you to expand your knowledge. There is so much more to investing than meets the eye, beyond the mere basics. There are many different investment vehicles to invest in. There are many different investment strategies. There are many variables at play that you need to be aware of.

Just because you spend ,000 on repairs doesn’t guarantee that you are going to add ,000 of marketable value to that property. It is important to focus on the right things, required necessities, and spend money that will get you the return you need for a profitable deal.