Tag: real estate investing

Growing Wealth in 2016

Growing Your Wealth
Growing Your Wealth

To grow the wealth necessary to live the life of your dreams, you will need a mechanism to do so. It doesn’t matter if your dream is having luxuries beyond your wildest imagination or helping out family members or the local charity of your choice. You need the money and assets to help you accomplish your dreams and goals.

In this New Year, learning how to be wealthy in today’s economy is as much “art” as it is “science” – but both are learnable. It’s not a mystery, and the fact that it’s been repeated throughout history, over and over, in every culture testifies to the fact that yes, indeed, you can learn how to get rich. Sitting on your couch playing video games is probably not going to make you rich, but digging ditches for the next 50 years probably won’t either. So how can you become rich?

1.) Grow Wealth: Invest in Real Estate

This is my favorite way to get rich! Buying real estate has been one of the surest ways to get rich since before there was money. As you know everyone needs it and, as Mark Twain so eloquently stated, “they’re not making it anymore.” There are numerous paths to wealth in real estate, but it generally revolves around buying property that brings in more income than it costs to own, and holding on to that property until the prices go up.

 You can start building your real estate empire right now by reading my book The Book On Investing:The Ultimate Guide for the Savvy Investor.

2.) Grow Wealth: Invest in the Stock Market

The stock market can be an incredible source of wealth for you and your family. There are a lot of different ways to invest in the stock market. From penny stocks to mutual funds to options and more – there is enough to easily make your head spin. If stocks are going to be your chosen path to getting rich – don’t simply throw your money at random companies. Take time to fully investigate the kind of investing you want to do and follow other investors within that niche to learn how they have made their fortunes.

3.) Grow Wealth: Start an Internet Business

Many internet entrepreneurs are building pretty substantial wealth through online websites and web companies. One of the most significant benefits for starting an online business is that barrier to entry is much lower, as you don’t need buildings, employees, merchandise, or other expensive items to begin – just a computer and some ingenuity. To find out more about starting or building and internet business go to My Biz Dream Team.

4.) Start a Traditional Business

Although a lot of the shopping in the world is moving online, brick and mortar businesses are still the cornerstone of our economic system.  For example, you could move to an area where the economy is thriving (North Dakota) and start a business to serve the oil and gas workers in that area.  Building wealth through a traditional business is built by selling either services or products to consumers or other businesses.

5.) Grow Wealth: Save Your Money

Finally, there is the good old fashion way to get rich: slowly. Save your money, each and every month, and you’ll grow wealthy just by principle. For example, if you make the average American salary, around $50,000 per year, and can live frugally to save half of your income – you could bury your cash under your mattress for 40 years and retire with a cool million bucks.

Or, if you took that money and invested in real estate, earning an average return of 12% per year, you could have $26,389,054.18 after 40 years.  This is why I choose investing in real estate rather saving my way to riches.

Conclusion:

 These are the top five ways that you can use to build wealth in today’s economy.  

To learn how we are helping our clients achieve success by investing in real estate and in businesses, please join us at The Book On Investing. Also, if you are interested in investing in real estate, join us at RADAR Investments

 

Real Estate Entrepreneurship is the Shape of Things to Come- Why Everyone Will Have to Become an Entrepreneur

People frequently ask me why we started our real estate investing company, Radar Investments, It’s Always On! My reply is always the same. We saw a problem in the real estate industry and we believed that we could provide a solution. Our coaches always told us that the most reward comes to those who solve the biggest problems. Radar Investments was created with the goal of helping people with their distressed property issues.

A recent article by Anna Vital and Alexandr Unak entitled, “Everyone Will Have to Become an Entrepreneur”, http://fundersandfounders.com/everyone-will-have-to-become-an-entrepreneur/, suggest that the businesses and companies are replacing workers with entrepreneurs. Why are these businesses and companies hiring entrepreneurs over the traditional workers? Because entrepreneurs bring certain skill sets to companies that other workers do not. Entrepreneurs understand how to solve problems and create value.

Entrepreneurs learn how to see a problem in a business model or system and they begin to think about solutions to solve a problem. In the real estate business, we saw a problem with the number with the houses that were on the market that people wanted to sell  but could not for one reason or the other. We saw the opportunity to create value for these property owners by helping sell their properties to other buyers outside of the traditional real estate sales model. In this scenario, the seller disposes the unwanted property, the buyer gets a great home to live in or fix up and resell and we get paid for bringing the two parties together.

Using this formula, entrepreneurs like myself, are partly responsible for the housing recovery that is currently taking place all across America. This is a very good thing indeed. If the American economy is to fully recover, entrepreneurs with the ability to solve problems and create value will lead the way.

At our website, www.thebookoninvesting.com, and in our book , The Book on Investing we share with you ideas on how you can use real estate entrepreneurship as a means to survive the new economy. Your plan should consist of investing in real estate, and developing or buying businesses.

Conclusion
In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, buy your copy of The Book on Investing.

Share this post and link with your friends so that they can buy a copy of the book also. Let us know about other topics that you would like for us to discuss.

 

 

The Power of Leverage in Real Estate Investing: So Easy, A Cave Man Can Do It!

Leverage is a very simple principle in the physical world. You use one or more objects to multiply the force it takes to move a bigger object. For example, in the illustration above, with the right tools the smaller rock on one end can move the larger rocks on the other end. Using the principle of leverage, the cave man figured out how to move big boulders to provide shelter for his family. This was the start of civilization.

The Power of Financial Leverage in Real Estate Investing

Leverage in the financial world is very similar to leverage in the physical world. Instead of using a smaller rock to move a larger rock, you use a small amount of cash, in combination with debt, to make a much larger investment. Leverage has the effect of multiplying the return on investment. With a small initial equity (cash) investment, you gain control over a larger investment and you reap the returns on the larger investment.

Let’s look at a few examples. In the first example you purchase a $100,000 investment with $20,000 of equity and debt of $80,000. In the second example you purchase a $100,000 investment with $10,000 of equity and debt of $90,000. In these two examples, both have a 10% gain.

As you can see from the table, a gain of 10% generates a 50% return on equity with a 20% investment compared to a 100% return on equity from a 10% equity investment.

Using leverage can mean huge rewards for a real estate investor. Imagine you had $100,000 in an IRA, 401K account, or a savings account that was available for investment. You could use this capital as a 20% down payment on a $500,000 investment property. Assume the property appreciates at a moderate rate of 8% per year for three years. At the end of the three years the equity in the property has increased over $120,000, a return on equity of 120%. When was the last time your stock fund, savings account, or IRA performed like that?

Now, just imagine you could take the $220,000 above (initial $100,000 + $120,000) in equity and gained control of a $1,000,000 investment property. If the $1,000,000 investment property appreciates at the same 8% rate, the equity will grow by $80,000 per year. That’s power of leverage!

Conclusion
In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, buy your copy of The Book on Investing.

Share this post and link with your friends so that they can buy a copy of the book also. Let us know about other topics that you would like for us to discuss.

Real Estate Investing for The Savvy Investor™

Knowing Your Numbers – The Rule Of 72

Do you know your numbers? If you plan to do any type of investing you must know your numbers. Your numbers tells the story of (1) where you have been; (2) where you are; and (3) where you are going. Your numbers represent the scorecard of how well you are doing with your investment. In real estate investing, knowing your numbers can mean the difference between profit and loss.

One of the most important numerical concepts for any investor is the Rule of 72. The Rule of 72 is a simple way to determine how long it will take for an an investment to double in value, given a fixed annual rate of interest. It is useful when trying to determine how hard your money has to work in order to duplicate itself.

No one really knows how this rule developed but historians say that the oldest known reference to it is in the “Summa de Arithmetica” by Luca Pacioli dated to 1494 AD. The formula for the Rule of 72 works like this, take the rate of growth and divide it as a whole number into the number 72.

For example, you purchase a piece of property for $50,000 in an area where the property value has grown for 4% annually. If this growth rate continues, it would take 18 years for that property to double in value (72/4=18).

This is important information for real estate investors because you want to invest in an area that you know will have a reasonable appreciation or growth rate. This will help you minimize your risk and maximize your return.

Conclusion
You have a choice to make. Do you stay on the treadmill of life hoping for wages to increase or by finding another job? Or, do you decide to take the steps to make life better for you and your family and never look back?

In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, take the first step in creating the life of your dreams and buy your copy of The Book on Investing.

Share this post with your friends if you think they are interested in creating the life of their of dreams.

Leave a comment and let us know about other topics that you would like for us to discuss.

Are You Ready for Extraordinary Success?

Dexter and Pamela Montgomery
Dexter and Pamela Montgomery

Have you ever wondered why some people are so successful and you

just can’t quite seem to reach the level of success that you

deserve and desire? I know how you feel! Well, I recently read a

fantastic book that may have the answers to your questions about

achieving an extraordinary level of success. I find that reading

business books by authors who are wildly successful inspire me and

give me a broader perspective on my business. You may want to

take 30 minutes every day to read a book that will help keep you

motivated.

The 10X Rule: The Only Difference Between Success and

Failure

According to Grant Cardone, a New York Times best-selling author

and internationally recognized sales training expert, successful

people know and follow the 10X Rule. In his latest book,

The 10X Rule: The Only Difference Between Success and

Failure, Cardone sets forth the principle that if you

adjust your actions and thinking to 10X levels you will guarantee

success. This very readable and exciting book is not your ordinary

business book about setting goals and achieving them. This book

sets forth a way of life that allows you to (1) create

extraordinary achievement, (2) ensure that you will keep it, and

(3) create new levels of achievement without it feeling like work.

I found it motivational, inspirational, and eye-opening. It helped

me focus on what was really important in achieving extraordinary

success.

Are You Ready for The 10X Challenge™?

The information in this book is extremely helpful for anyone who

wants to receive greater levels of success in any area of life. I

would highly recommend it to any aspiring real estate investor or

other entrepreneur. You can find the book at http://ConnieLoves.me/ProductivityBookList

Are you ready for The 10X Challenge™? Are you ready to set gigantic

goals and take the massive action necessary to achieve those

goals? If you are ready to achieve extraordinary success, follow

my blog so that you get the latest information on how you can

achieve extraordinary success. Over the next few days, I will be

writing about some of the tips set out in The 10X Rules.

Conclusion

We would love to hear from you. Let us know if you plan to join us

in The 10X Challenge™. Send us an e-mail:

dexter@thebookoninvesting.com.

Remember that with real estate investing as one part of your

financial plan, you can create the life of your dreams by following

a few time-proven strategies and techniques. Download a free

article on real estate investing at: www.thebookoninvesting.com

What Has Your Education Done For You Lately?

Dexter with Steve Wozniak, Co-Founder of Apple.
Dexter with Steve Wozniak, Co-Founder of Apple.

Are you $80,000.00 in debt for your college education and can’t make

a decent living? A recent story on the CNN’s Money website really

caught my eye and made me wonder, what has your education done for

you lately? Are you learning the right things in school for today’s

global economy? Or, are you learning an antiquated educational

curriculum that is irrelevant to today’s economy? I surmise that you

are still doing the same old thing and expecting a different result

as it relates to your education, your professional career

objectives, and your personal economy.

MBA’s: A Dime a Dozen?

Case in point, the CNN story entitled, “My Master’s wasn’t Worth It” (http://money.cnn.com/gallery/news/economy/2013/01/24/masters-degree-debt/index.html?iid=HP_LN), highlighted a young man who spent

$120,000 to earn a Master of Business Administration(MBA) and

another Masters Degree only to find that he could not find a job.

This young man stated that people with MBA’s and Master Degrees

are a dime a dozen and that after interviewing with various

companies, he was told that he was either “overqualified” or” high

risk”. The high risk part really surprised me. This means that

because of his high level of education, the company did not want to

hire him because they thought he would leave if he were offered

another job making more money.

So back to my question for you, what has your education done for you

lately? Don’t’ get me wrong, I am not against education. As a matter

of fact, I have advanced degrees in business and in management.

However, I believe that you must have the right education for

today’s economy. In addition, without the right education, you end

up at the whim of the business climate, or the company that you work

for. When things are good, things might be good for you. However,

when things are bad, you are thrown on the heap with all of the of

other advance degree holding folk trying to figure out what happened.

What is the Right Education?


So you are asking, what is the right education? Well, I believe that

the people who learn how to invest in real estate, or how to build

and buy businesses are the ones who will be hiring the MBA’s. After

all, somebody will have to run the day to day operations of the

company while the owners are vacationing in Maui. I also believe

that people who take their passions and turn them into businesses

will be wildly more successful than anyone with an MBA from a top

business school.

To learn more about the right education for this new economy, read

The Book On Investing (www.thebookoninvesting.com). In

The Book On Investing, we show you that with the right education and taking massive action, you can create the life of your dreams. Join The Savvy Investor Program™ today.

Conclusion

Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Download your free article on real estate investing at: www.thebookoninvesting.com

Real Estate Investing So Easy A Child Can Do It

Today I read a very interesting story from Florida that has made the national headlines.  A 14 year old girl from Port Charlotte, Florida, took her earnings from selling items on Craigslist and invested her money in real estate.

Willow Tufano, who earned $6,000 from selling items on Craigslist, decided not to use her earnings to buy depreciable assets such as video games or other toys. Instead she decided to make her money work for her. She took the first steps toward securing her financial future by purchasing a house that she could rent.

By partnering with her mother, she was able to purchase a$100,000 property being sold as a short sale for $12,000. With a little sweat equity, she turned that property into a positive cash flowing investment. Not only is the property cash flowing, she has built-in equity in the property.  

Willow’s mother says that her daughter is always thinking, “How can I skin the cat differently?”  Willow even helped the new tenants find a free bed and mattress.

Let’s analyze what this 14 year old was able to accomplish.

  1. First, she is a natural entrepreneur. She started an internet business that allowed her to raise capital and build net worth.
  2. Once she had some capital to invest, she looked for a deal that would give her leverage and give her the greatest return on investment.
  3. She researched an found an opportunity in real estate where she could buy the property with little or no money down and maximize her profit potential.
  4. With the help of her mentor and coach (her mother), she was able to negotiate a deal with the bank to purchase the property for pennies on the dollar.
  5. She partnered with another higher net worth individual (her mother), to leverage her investment and minimize the risk to capital.
  6. She bought into a real estate deal with instant positive cash flow.
  7. She also bought into a deal that provides instant equity in which she can use to purchase other investments
  8. She was able to add value to other people’s lives by helping them achieve their goals of having a decent and safe place to live.

I applaud Willow and others like her because she has taken action to secure her financial future.  At the young age of 14, she already understands and has learned how to raise capital, look for and negotiate deals, calculate return on investment, invest for cash flow, use leverage to maximize investment, invest in equity, and form partnerships. She has also learned about the importance of having a coach and mentor to accomplish her financial goals and that by helping others, you actually help yourself.

The question becomes, why aren’t more people doing this? I mean, if a child can understand and do this, why not more Americans?

I think it all goes back to the lack of financial literacy in our society today.  You see, our educational system is still teaching us to work for someone instead of us working for ourselves.  We are programmed to use the old business model of work in a job, pay taxes, live and save what is left. The new business model says that you become a business owner, live on the efforts of others and pay taxes on what left. This is the business model that the wealthiest 1% in this country uses.

We need to get back to common sense when it come to money and investing. I am sure that Willow absorbed every bit of information that her parents were saying about investing around the dinner table.  

Look out for Willow.  She is destined to become the next Warren Buffet or Donald Trump.

For more information on becoming The Savvy InvestorTM ,like Willow, go to www.thebookoninvesting.com.

More information for The Savvy Investor

 INVESTING BASICS FOR MAKING REAL ESTATE DEALS COME TO YOU

Do you have real estate deals coming to you? To have real estate deals coming to you, you will need to let people know that you are in business by placing ads in the newspaper, placing ads on the Internet, and placing bandit signs on the street. Placing ads on the Internet may be your first consideration because it’s free.

Using the Internet for advertising is much more cost effective than any other advertising media. Despite the Internet being more cost effective, you still need to learn how to target your market. On the other hand, placing ads in the newspaper and posting signs on the street will cost more than using the Internet, but placing ads in the newspaper and posting signs on the street, may be easier to target a specific area and market.

Regardless of the advertising method(s) you select, people will see your ad and call you. The people who do not call, you will have to find them.

  INVESTING BASICS FOR FINDING REAL ESTATE DEALS ON YOUR OWN

Finding the people who do not call you can be accomplished by making calls to all the ads in the newspaper, all the ads on the Internet, and all the “We Buy houses” signs you see on the street. Making all these calls will serve two purposes:

1) to inquire about potential real estate deals, and
2) to let the other person know you are looking for real estate deals.

Calling the ads in the newspaper and on the Internet is a good way to introduce oneself to other investors and owners interested in selling their houses. Calling the “We Buy Houses” ads and signs will introduce you to other investors. Contacting other investors will also let you know if they have any houses for sale and what type of houses they are interested in buying. Those first few calls can be stressful.  Just remember to use The Savvy InvestorTM  Interview Format of fact, goal, and challenge type questions to qualify a potential dream team member.

Contacting other investors is also a good way to develop your buyers list. Knowing what other investors are looking for will help you when it comes time for you to sell the property you have acquired.
To find out more about making the real estate deals come to you go to www.thebookoninvesting.com.

The Book On Investing — Federal Government Housing Policy: Homeowner Affordability and Stability Plan

A critical part of the Obama Administration’s broad strategy to help the millions of homeowners still struggling to pay their mortgages avoid foreclosure,  stabilize the housing market, and improve the nation’s overall economy is the Homeowner Affordability and Stability Plan

One part of that plan is the Making Home Affordable program.  This is an official program of the Departments of Treasury & Housing and Urban Development.  The Making Home Affordable program offers a number of mortgage reduction relief programs for individual homeowners.  

If you’re not unemployed, but you’re still struggling to make your mortgage payments, you may be eligible for the Home Affordable Modification Program (HAMP).

If you’re not behind on your mortgage payments but have been unable to get traditional refinancing, you may be eligible to refinance through MHA’s Home Affordable Refinance Program (HARP)

More information on the Making Home Affordable program can be found at www.makinghomeaffordable.gov    

Each month HUD and the Department of Treasury release the Housing Scorecard-a comprehensive report on the nation’s housing market.  Data in December 2011, released January 9, 2012 show some subtle improvement in the housing market as compared to the same period in 2010.  However the data underscore the fragility of the overall housing market as the outlook for stabilizing the market remains mixed.  Home prices showed a slight dip from the November 2011 and remain below levels from a year ago. 

The Housing Scorecard can be found at www.hud.gov/scorecard.

WHAT DOES THIS MEAN FOR THE SAVVY INVESTOR?  You should stay abreast of the latest government policies and market trends.  It will make you more knowledgable in your dealings with real estate buyers and sellers.