When looking at investment opportunities, real estate is always going to look like a tempting possibility. The market is starting to look up in some areas but down in some. When you invest in real estate, there are a few different ways to do just that and make your investment back. Which should you aim for and which will work best in today’s market?

Buy ‘em to flip ‘em

When thinking of investing in property, buying homes to sell them at a profit is one of the first options worth considering. It’s all about identifying properties with real potential and making use of that. For instance, you might spot a home that you can improve to sell at a much larger profit. But the best way to find properties worth selling is by building a portfolio of properties in developing areas. Look at places where new businesses and other community buildings are set to be built. Features like new commercial centers, new cafes, newly renovated homes are good signs of a growth area. However, buying, improving, and selling homes is slow. If you do it one at a time, your profits are likely to be slow coming, too.

Becoming the landlord

The number of people buying homes is on the decrease, so finding those growth spots is more important than ever. On the other hand, rentals are on the increase, so this can be the most reliable way to start making money sooner. However, as you might expect, rentals payback on investment a bit at a time. They can make a good retirement fund or income source if you have one or two and act directly as a landlord. If you start renting out more, then you have to consider the costs of letting agencies and how they impact your profits, too.

Hit the holiday crowd

When we talk about renting, we’re usually talking about long-term tenants but short-term holiday rentals are a different market entirely. If you spot a buy-to-rent opportunity in a popular location, like a winter vacation home near the Catskills, you could stand to make a lot from holiday goers. However, annual returns can go in the negative sometimes, so you have to be ready to stick with a vacation home for the long-run. In general, over a long period of time, they can always be sold for a profit. You just have to wait out the road bumps in this occasionally volatile market.

Make a business out of it

Commercial real estate is, again, an entirely different market. If you know primarily about residential properties, it can be a lot to learn. However, they tend to see annual return off the purchase price at a rate that can be 2-3 times higher than family home properties. Business owners tend to take pride in their location, as well. They’re a lot more likely to become long-term tenants, guaranteeing income through the years. They also tend to take much better care of the property on average, which means lower risk of having to make repairs.

It’s all down the environment you want to invest in and your ability to spot the right opportunity. Even in a bad market, a fantastic home, rental, or business property can stand to new you a lot of cash.

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Any smart person who wants to make more money will look into making investments. If there’s one thing for certain, it’s that investing your money in various ways is much smarter than simply putting it into savings.

Investing will make your money grow much faster than a savings account will – especially since interest rates have remained stagnant for quite some time now. Bear in mind that inflation will have an affect on the money you save, meaning that it will be worth much less in the future. Putting your money into the right investments ensures that your money retains it’s value or grows in value.

Here are 10 crucial things you should be considering before you invest:

1. The Best Use Of Your Money

The first thing you need to consider is whether investing is the best use of your money. Of course it is at some point, but right now, you may have other priorities. For example, paying off debts first and foremost is crucial. The longer you’re in debt, the more interest you pay. Paying off your debts ASAP will ensure you have more money freed up for investing in the future.

Health insurance is also a good shout. You never know what the future could hold, and this way, you’ll have peace of mind even though you’re not plowing every cent you have into a savings account.

That being said, you should have a cash cushion of at least 6 months expenses. You never know what could be around the corner. Consider every eventuality. May you need to take a pay cut? Could you lose your job if the company goes bankrupt? Lots of things can happen, so being prepared for them is a must. Just make sure you have your money in an easy access account!

Once you have these things, you can confidently begin investing your money!

2. Goals For Investing

You should know your goals for investing, as this will determine where you put your money. If you’re on the verge of retirement, safer investments are best for you. Bonds are fairly safe so look into those.

You can afford to take a moderate risk if you won’t need the money too soon. In this case, stable companies that pay out dividends are a good option. You can maybe take aggressive risks for higher gains – best for keeping your money in investments for quite some time. Look into companies that are focused on growth and investing money back into the business.

You can even potentially start investing for two different goals. For example, investing for a house downpayment which is short term, and investing to retire which is long term. Having goals like this will make you more financially secure and smart both now and in the future.

Know exactly what the goal of your investing is so you can make the right choices!

3. How Old You Are

Being young has its advantages when it comes to investing, but don’t panic if you’re older. It’s never too late to start, you may just need to alter what you’re doing a little to make it work.

When you’re young, you tend to be more secure, have less responsibilities, and have more disposable income. It’s also easier to pick yourself back up and brush yourself off after making a mistake. In your 20s especially, your biggest asset is time. Make the most of it when you’re young by making riskier investments and taking advantage of the fact you have more time for compound interest.

4. The Time Before You Need The Money

Some investments will have shorter goals, some won’t. Bear in mind that some investments come with charges if surrendered or redeemed before a holding period is up.

We mentioned it earlier, but the sooner you need the money, the less risky your investments should be!

5. Your Risk Tolerance

Not everyone can take risks with their money past a certain level. You may worry as you have responsibilities and dependents, or it can be something simple. The ups and downs of the stock market can make some people uncomfortable.

A higher return may not be worth the stress or losing sleep over, so bear that in mind. Consider your personality and what you expect you can handle in terms of investment risks. Bear in mind that you don’t have to navigate this minefield alone. There are financial planners, wealth advisers, and robo-advisers to guide you through the process.

6. A Diversified Investment Portfolio

A diversified investment portfolio is recommended for anybody and everybody who wants to invest. You can invest in many things, including:

• Different companies
• Industry sectors
• Markets
• Asset classes

Having all of your money in stocks can’t be considered a diverse portfolio. Having diversity in your portfolio can help protect you from market fluctuations. The more powerful your portfolio will be if you take the time do this, and the more smoothly things will run for you.

7. How Involved You Want To Be In Your Investments

You can be as involved as you like when it comes to your investments. You can work on them everyday, or take a backseat and let a dedicated professional do this for you. If you don’t have the time, you can delegate portfolio management to a financial advisor. You could even hire a property manager if you’ve invested your money in property. There’s barely any need for you to be involved at all, but it’s totally your preference.

8. Is There An Expert You Can Speak To?

If you’re totally confused, there are places you can find experts. There are dedicated people out there that can advise you, and networking on LinkedIn could even be an option. By doing this, you might just come up with questions you didn’t even realize that you should be asking.

Look for a professional investor or an investment banker and see what you can find out.

9. Do You Understand Growth?

To understand growth, an investor has to dig into the key financial statements. The things like balance sheets, income statements, and cash-flow statements. In the consumer sector you can ask for retail level sales too. Understanding growth is key to ensuring you’re putting your money into the right investments.

10. Knowing Your Exit Strategy

Above all else, you need to know exit scenarios for the industry that interests you. Having an exit strategy is crucial if you want to avoid potential disasters. You can take different things into account, such as how big the company is and the margins. Whatever you do, make sure you develop an exit strategy that suits you and makes you feel comfortable.

Now you’ve considered these 10 crucial things, you should have a good idea of what step to take next. Do you need to pay off your debts, save up a cash cushion, or find an expert to guide you? It can all seem complicated at first, but you don’t need to be an expert or even a business person to invest. Everybody should invest, as it can be a very smart way to use your money.

If you don’t think you have the cash to invest right now, take a good look at your budget and spending. Chances are, you’re buying many luxuries that can be cut back and better spent on your investments. If you’re going to experience investment success, you need to get serious about it.

Do you have any tips and thoughts on investing? Leave them below!

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Those who have bought their own home and feed their savings account regularly seem to have it all figured out. It’s very difficult to save money when there’s nothing left at the end of the month, though, and it tastes especially sour when you have to pay down on someone else’s mortgage.

But with so many benefits to renting an apartment, it should be possible to continue this flexible way of living while still getting the piggy bank nice and fat. Here are a few of the thriftiest money saving tips from tenants out there who actually manage to save, making the world a bit less unfair.

Ditch the gym

Gym memberships should be a thing of the past already. You need exercise, of course, but you don’t need to pay up every month to get moving; with apartments often being so incredibly central, it should be easy enough to find a local park for your morning jog.

Buy yourself a yoga mat and take care of your muscles at home, either with weights or your very own body weight. Paying for a gym membership is kind of like paying someone to cook for you; sure, it’s convenient, and everything is taken care of for you, but doing it yourself just makes a lot more sense. At least when you’re trying to save money.

Buy multitaskers

You already know that you should cook every meal at home, right, so we’re not going to waste time on explaining why. Apartments are often rather small, so it’s a good idea to find functional kitchen appliances you can use for multiple things. It makes it a lot more likely that you’ll get cooking even on a grumpy Tuesday evening, and you won’t hate the look of your cramped-up kitchen afterward.

Find green apartments

While you should always try to find someone to live together with as it will save you a ton of money, it’s also a good idea to look for greener apartments. Many apartments here have gas projects that allow you to save money on energy, while the best ones also offer GE appliances in the kitchen.

It’s the kind of stuff that makes rental life a bit more manageable – and if you discover a better offer somewhere else, you can always pack up and move without having to sell first.

Get a second job

The last one may not be the one you’d like to hear, but here it goes; when you rent an apartment, you’re often a bit closer to the action than the house owners are. It means that flexible jobs are within reach and you have a variety of options to supplement your income with and live within your means.

Boost your income, find an energy-efficient and reasonably priced apartment to rent with someone, and continue to cook at home. Here’s a handy article in case you need a bit of extra money quickly, by the way.

Increasing your income is the only way to drip a bit of cash into your savings account each month, and the best way to stay debt free for as long as possible.

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When you get yourself into financial trouble, your credit score is going to suffer. Having a bad credit score affects in so many ways and it’s not a position you want to be in. Trying to borrow money or buy things on credit is a nightmare so your dream of starting a business seems so out of reach. But there’s no need to give up on your dreams just because you’ve got bad credit. It’s going to be made more difficult by your low credit score but if you’re serious about it, there are ways to deal with it. If you’re worried about your credit score affecting your business goals, check out these tips to get around it.

Increase Your Score

The first thing you need to do is to try to increase that credit score, even the smallest increases will help your situation no end. Paying down debts is the simplest way to do it. If you’ve borrowed a lot of money, seek the services of companies like consolidation.creditcard who can help you to combine all of those separate debts into one easy to manage payment. Clearing those debts will put you in a better financial situation and improve your score so it’s easier to borrow the start-up capital that you need for your new business.

Find A Partner

Having a business partner is always a bonus. Two heads are better than one and it also helps to reduce the financial strain that starting a business will put on you. If you’re struggling to get loans in your name, consider collaborating with a business partner that has better credit than you. They will be able to borrow the money that you need for start-up costs but make sure that you make clear agreements beforehand because they will be shouldering the lion’s share of the risk so you need to be bringing something to the table as well.

Crowdfunding

The internet has given birth to lots of alternative lending streams that aren’t bothered about your credit score at all. Crowdfunding sites like Kickstarter are perfect for your situation because they offer a platform where you can showcase your business idea. If people like it, they can make small donations to help towards your costs. It runs solely on the quality of your idea so you aren’t hindered by any financial mistakes you’ve made in the past.

Peer To Peer Lending

Another new lending stream that has started to become more relevant in the past couple of years is peer to peer lending. These sites pair up investors that are looking for opportunities with entrepreneurs that are looking for alternate lending streams. Again, you won’t be bound by your credit score and you can find investors that are willing to take a chance on you based on your ideas rather than your financial history.

Having bad credit makes it more difficult to start a business, but there are so many successful businesses out there that are run by people that have been bankrupt multiple times, so don’t give up on your dream of owning your own business.

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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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