Everyone wants to make money in the real estate business but for every billionaire property magnate there are a dozen bankrupt chancers sitting in motel rooms wondering what they Hell happened. Investing in a property as an absentee landlord is one thing, but going from renting out of flipping one property to growing a portfolio of properties is a huge and expensive transition that carried with it a certain amount of risk. Buy hey, if it was easy, everybody would be doing it!

Buying property for investment is very different from buying a home and it requires a different set of skills and priorities. While neither a seasoned investor or someone looking for a new home wants to buy a turkey, the more you invest, the smarter you need to be. Here are some important things to consider when building your property portfolio…

Focus and strategize

When you’re just starting out, your investment strategy will be something along the lines of ‘buy property’ but buying indiscriminately is the surest way to a loss. When your portfolio grows, however, you need to think a little harder about when and where you buy. Do you want to buy properties, renovate them and let them out while you live off the passive income or would you prefer to buy and flip them, maximizing the profits and reinvesting your capital in your next project? These will determine the types of property you buy and their location.

Diversify

A portfolio that’s richly diverse in terms of property type and location has a great chance of longevity and profitability. Investing heavily in hip, upcoming area is a great strategy since rental demand will be consistently high and your yield will tend to grow but you run the risk of keeping all of your eggs in one basket. If something happens to compromise the value of property in any given area, though, this can create huge problems for you. Thus it’s a good idea to hedge your bets by investing in a variety of different locations, even if they are similar properties to those in areas where you’ve already invested.

Don’t be afraid to refinance

Making money in property involves considerable and ongoing investment. While you need capital to acquire new property, you also need to have sufficient liquidity to manage your properties in terms of maintenance fees, ground rent and other fees not paid directly by the tenant. It’s important to be able to move quickly in the property game and having all your cash tied up in your investments can cause you to miss golden opportunities when they present themselves. Strategic refinancing can allow you to expand your portfolio, thus generating more revenue from rental income which means more disposable income for you!

Be prepared to let go of a dud investment

Investors can very often be their own worst enemies by obstinately clinging to properties that just aren’t working for them. Every now and then you may need to bite the bullet and take an up front loss. While a bitter pill to swallow, it’s far better than missing out on more opportunities because you’re shovelling all your capital into a money pit.

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Every standard investment advice consists of making a big purchase in the shape of a house, as it’s generally viewed as one of the best ways to get a good return, or if you ask for another item to invest in, most people will say get another property! But are there other options for investment that don’t involve four walls and a roof? Well, surprisingly enough, there are!

Precious Metals

Precious metals like gold are considered to be quite controversial assets. Some people see them as a no-brainer and are a foolproof investment, and while others may view them as a nightmare, the fact is that the truth is neither here nor there, but they are responsive to certain market conditions. Precious metals appear to gain value when the dollar is weak, and then weaken when the dollar is strong in value. However, this is not an exact science. And of course, we don’t know when this will occur, so it’s best to have some precious metals available at all times. The great thing about items like gold bullion is that you can purchase them and keep them safely at home.

A Boat

A lot of people would consider a boat to be a terrible investment. However, this is largely due to the upkeep and maintenance of the boat. The financing alone can be crippling, but there are sites like boatfinancing.co that can show you the best options for getting a loan to purchase a boat. As time goes on, and the concerns about rising water levels and the threat of natural disaster at every corner, it would be very sensible to own a boat. So not only is it a sensible investment right now, but it’s something that is going to be highly desirable in the coming years.

Peer To Peer Lending

As a way to remove the middleman out of the equation, this is a great way to get a higher rate of return. It benefits both sides, the investor, and the borrower, as the borrower gets a lower rate. Many organizations specialize in peer to peer lending, such as ratesetter.com, but there are plenty of other peer to peer lending platforms that have a decent return on investment, you just need to look for them. But you need to beware that with certain lending platforms, you may be required to invest more than $50!

Wine

Yes, believe it or not, wine is a great product to invest in because it can increase in value as it ages. With the right type of vintages, these can be highly sought after, and you can make a decent amount of money. Of course, to make the most out of this investment, you need to have a good understanding of wine generally, but you also need a room to store them in that is temperature-controlled. To get a substantial profit from your wine, you will also need to buy in bulk. In addition, you need to keep notes of when you bought certain vintages and where from, as these are vital trinkets of information to wine connoisseurs.

You see? There are more investment ideas than a house. So take some of these ideas on board and start investing!

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When a person invests in real estate, he or she doesn’t go to an auction. Usually, they find a realtor, view a variety of properties, and make a few bids. There is nothing wrong with this method. In fact, it’s a tried and tested technique which has provided excellent results on many occasions. But, that doesn’t mean that an investor only has one path to walk. Regardless of how you feel, auctions provide a range of benefits which make them a no-brainer. For the non-believers, below are the reasons why they are great places to find cheap properties.

Seller’s Circumstances

No one likes to address this topic, but the conditions of the seller play a significant role in the price. Anyone who can afford to wait doesn’t have to go to auction. Instead, they can put their house up for sale and go through the normal channels. By definition, people at auction can’t do the same thing. They either have to make a quick sale for financial reasons or have gone bankrupt. Again, it isn’t nice to admit, but this is an opportunity. Because people need an immediate injection of cash, they will accept lower offers and you can pick up a bargain. Sometimes, the bank will set the price and that will reduce the value further.

Less Popular

There is no doubt that the majority of people use the method above to find an investment property. Therefore, auctions are less attractive and not as well frequented. The reason this is important is due to a lack of competition. If there are fewer people at an auction, the price is bound to stay steady. When that happens, you pay less for the building than normal. Yes, auctions are usually packed, but not every person bids on every lot. For the most part, you will have competition from one or two people and that will keep the price low.

Perceived Risks

Another reason an average investor stays away from traditional and online auctions is the risk factor. In their eyes, the negatives outweigh the positives. Yes, there are risks and you will have to take a gamble of sorts. Still, the dangers aren’t as big as people like to imagine. After all, everything is in document form, signed and accounted for. Plus, there is a description of the house flaws. By reading this, you can get an idea of what to expect. Ultimately, the stigma keeps investors away and increases the chances of a bargain.

Play The Game

Think of an auction like a game of poker. By bluffing the other people in the room, you can keep your cards close to your chest. If they don’t know which properties you find appealing, they won’t up bid and increase the price. For example, a great trick is to bid on lots which aren’t attractive. This will get the ball rolling and people thinking the property is a keeper. When it comes to the one you want to buy, the competition will be less as everyone will have made their bids.

As you can see, an auction is an excellent place to find an investment property.

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The heritage and history of a country is a very important thing. It shapes the attitudes and lifestyles of the people that live there, and it is a great source of pride for so many people. Remembering where we came from is the best way to decide where to go next, and respecting the sacrifices of those that went before us helps us to appreciate the things that we normally take for granted. Heritage has an incredible emotional and spiritual value, but have you ever considered its financial value? These are the ways that the heritage of a country brings lots of significant financial benefits to its government and its citizens.

Tourism

The most obvious way that heritage benefits a country financially is tourism. Some countries depend on their natural features like beaches and hot weather to attract tourists, but when you don’t have that to offer, history and heritage can be just as big an attraction. Europe is the perfect example of this. There are still some European countries that are the perfect beach destination but for the most part, the continent doesn’t have that asset. It does, however, have a rich history that you can see in the form of tourist attractions. There are lots of museums dedicated to the continent’s history during the world wars. People come from all over the globe to see these kinds of attractions and it brings huge amounts of money to the countries.

Collectibles

You can use the heritage of your country to make yourself money personally as well. Lots of important historical events have been immortalized in the form of collectibles that will be worth a lot of money a few years down the line. Sites like www.lpm.hk sell special collectible coins dedicated to historical events. These kinds of collectibles will appreciate in value very quickly and can be sold on for a big profit in the future. Collectibles are a great investment that you can start at home fairly easily. As well as coins, you can invest in commemorative plates or even actual relics from historical periods. Items of interest from historical periods are worth lots of money to collectors and the longer you keep them, the rarer they will become as similar items fall into disrepair. The condition is one of the most important things to consider when you’re investing in these items because it hugely affects the value of them.

Trade

Countries hold grudges for a long time. The history and heritage of countries often dictate the relationship they have with other countries. Having a rocky past with another country is going to hugely affect any trade deals that they might try to make with one another. Countries may find themselves involved in unfavorable trade deals with other governments that they have had disputes with in the past. Regardless of the many years that have passed, bad blood runs deep and it can have far reaching effects on the economy of a country.

The heritage of a country is a hugely important part of life for its citizens, but it also brings serious financial benefits.

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Keeping your finances in check is a very important thing to do in the 21st century. You’re going to need to be able to keep everything where it is because the world revolves around money! Everything you need and want you have to pay for with money, including your house and food, so it’s important to make sure it’s all in order so you don’t go without anything, but how can you do it? Well, if you read on, you’ll learn how!

Keep A Good Credit Score

Credit scores have been around for a while but have only recently become used, so what is it? Well, your credit score is a representation of how good your financial standings are in terms of credit. It takes into account things like how much credit has been used in your past, how long it’s taken you to pay it back and if there were any discrepancies with the payment. When you apply for a loan, banks will look at your credit score and judge you off it; if it’s in a poor state then they’re going to be likely to turn you down for the applied loan, however if your credit score is good then you’re going to be in the green and get your loan! Not getting loans can become a very serious problem if you need to money urgently, so we need to find a way around this, and luckily there is. Websites like usarepaircreditinc.com are able to repair your credit score by filtering through very small loans and repayments through your account, improving your credit score so you don’t have to worry about getting turned down for a loan ever again!

Opening A Savings Account

Savings accounts are brilliant ways to raise money without actually having to do anything or invest anywhere, so what are they? They are small accounts that are attached to your main bank account and serve as a way to store money. Each month, your savings account will take a predetermined amount of money from your main bank account into your savings account, which will stack up and accumulate after a while. You can open these accounts from banks like american express, and the real beauty of them is revealed once you’ve been paying into them for a few years. You’re going to have a sum of money that has interest on it so that it grows within the account, which can be a huge amount depending on how long you leave it! This can get you through a rainy day when you need funds but don’t have the available in your bank account. Another good thing about them is that they are temptation free; you need not worry about accidently spending what is in your savings account because you are unable to access it with your card, perfect for anyone that might find themselves buying extra things because they think the money is there which makes it a great tool for keeping on top of your money.

Debt Consolidation

Having and dealing with debt is part of life, and an unavoidable one at that too! Debt just means something that you need to pay back, and with the amount of things we have to borrow money for in the 21st century this covers a lot of things. Debt can come in the form of credit card payments, loan repayments, mortgages and so on, and the single thing that makes them a pain is how many there are. Debts become a problem when you’ve got lots of them; they become hard to follow and track, which means that you’re going to struggle a bit trying to work out how much money is going out of your account each month to what company! This means it’s more difficult to budget, meaning that life gets more difficult. However there is a solution. Debt consolidation loans that you can find more about if you read on at DebtConsolidationUSA.com, operate in a way that allows all of your debt repayments to be funneled into one, monthly repayment. This reduces the amount of tracking down money you have to do, you know how much you’re going to have to pay at the end of the month in one easy instalment making life easier for you!

Smart Meters

This is a great way to keep a track of how much you’re going to be spending on your utility bills at the end of the month! Smart meters are installed into your system, and it will gather data from all of the different sources your house pulls from, mainly being electricity, gas and water. It will be able to read how much of each commodity you have used, and by inputting how much you pay for a given volume or measurement of each of the commodities, it can tell you how much you’ve used and therefore how much it’s going to cost at the end of the month. It will be able to make basic predictions about your resource usage so you can effectively plan for the month ahead by knowing how much your bills are going to be instead of being stuck doing guesswork like the days of old!

Coupon Shopping

Everyone loves coupons; they’re given to us by supermarkets and other retailers and give us brilliant discounts that we then go and take full advantage of, but there is a problem with them. Nothing in the world comes for free, and unfortunately neither do coupons; they’re given away when a customer spends over a certain amount, which means that if you don’t reach the quota like a lot of us won’t, you’re not going to be eligible for the coupon and this means you’re going to miss out! So what can we do to circumvent this? Well, websites like groupon exist to serve this purpose for us. They have online coupons available for free, for everyone to use however they’re only available for a limited time so if you’re wanting to use something for a later date it’s best to do it sooner rather than later! They’re able to do this because the company coupons are a form of advertising, meaning that it’s completely legal and nothing for you to worry about getting in trouble for. Some coupon sites are illegal though, so you will have to use your head and avoid websites that look dodgy to save yourself from having a nightmare!

Budgeting Properly

Budgeting is the key to managing your finances properly, it’s an essential skill that you need to learn in order to be able to properly manage your finances. Budgeting involves being able to plan out where your money is going to go for the next month, or where it should be going at least! You’re going to have to know how much you spend each month on each bill that you have to pay, as well as for food and taking into account how much money you’re going to be putting away each month! This can all be very difficult to do when you’re starting off and chances are that you’re not going to be able to do it very well, but there is a helping hand available to you! Online budget planners are available for free on the internet, which you should take advantage of if you find yourself struggling! They’re able to take out all of the pain of trying to do all the maths work manually; instead, these planners do it for you and show how much money you’re going to have at the end of the month and how much you should be saving each payday to keep some spare.

It’s recommended to do all of these things to make sure that you keep on top of everything to do with your money, if you have a good credit score you’re not going to have to worry about getting refused for a loan when you need it most, you’ll have a savings account that you can dip into as and when you need it for those days that cost just the little bit extra, you could have yourself a debt consolidation loan to help you pay back all those small niggling debts that somehow creep up on you, a smart meter so you know exactly what your bills are going to be that month too. And then to top it all off you’ll have loads of coupons at your disposal to make your life cheaper and you’ll have a proper budget so you know what your plan for your money is for the month! When you’ve got all this income, it’s important to not only know where to spend it, but how to protect it once you’ve spent it. If you go out and buy something new with all your savings, only for it to break, you’ve just lost yourself a lot of money, so if you want to know how to keep what you invest in safe then read this!

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