Similar to the variety of games in a casino, there are tons of options available to you. You can invest in the stock market (companies), natural resources (gas, oil etc.), commodities (rice, corn, sugar etc.), precious metals (gold, silver, copper etc.), currencies (US dollar, yen, euro etc.), countries and a lot more. You can invest in a general direction of a market, whether you think it will go up or down. If you don’t want to pick a particular company or resource, you can invest in a group of them. The options are endless. It doesn’t matter if your a beginner or an expert, there are all types of investments that can achieve profit in any scenario.
Then there are stocks. And let me tell you, there are more stocks out there to invest in than Carter has liver pills. Just check with the NYSE to see how many stocks are actively being traded. Stocks are much riskier than bonds. A stock can sell for a share one day and drop down to a share the next day. Imagine investing in 1000 shares. You would have lost ,000 in just one day. Conversely stocks can give you a big windfall literally overnight. The key to stock investing is to get a good broker who knows the market. And don’t worry, he WILL have your best interests in mind because he wants to make money too, as he gets a percentage of any gain you make on the stocks you invest in.
What these hucksters fail to deliver is a lasting strategy. No matter how eloquently you talk about winning stocks, once you deconstruct the advice several common elements emerge. These are basics of investing 101, and what everyone who plays the stock market game needs to know.
If you put one dollar in, you want to get two dollars out. So, if you are doing carpet or paint, for instance, you better ensure that you get twenty dollars in return for every ten dollars spent. Now, there is always a particular improvement that you are just going to break even on.
Bonds also come with a certain lifespan and that can be 10, 15 or 20 years. Upon reaching its maturity, bond holders will receive all their money back. So if you happen to invest 00 in a 10 year bond that pays 5% interest, you are going to get a total of 0 over 10 years and your 00 back at the end of the term.
There it is. I don’t care how much cash you have now, or ever will have. I don’t care who you are, or where your bank account stands. You’re cash supply is finite, not infinite, and cash is a valuable resource that gives your real estate investing flexibility and leverage. Using no money down investment mortgages allows you to preserve cash, one of your most valuable resources.
A typical investor has credit card debt under control. It makes no sense investing in stocks, bonds, or mutual funds if you have a lot of credit card debt and an interest rate of more than 10%. You don’t have to be debt free to invest but make sure to pay each debt each month. You also should be paying low interest rates on that debt. A typical investor also has an emergency fund of at least three months’ worth of basic living expenses. And finally, a typical investor has a 401(k) plan so he can maximize his contributions and diversify his investments.
C. No need to take ownership of the property, just get it under contract and pass the deal on to the best buyer/investor, with what is called an assignment fee (up to K) added on to the negotiated price.