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This is great news for real estate invstors because short sales are becoming easier to do and the FHA financing makes flipping a house easier and faster.
Read more here http://goo.gl/ziK1A
FHA Continues to Fund Real Estate Investor Flips
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Safe Investments with Moderate to High Returns
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Investing can be a little scary for most people – especially if your expendable income is limited. As you know, all investments have an element of risk; however, it’s wise to seek out those opportunities that will minimize your risk while earning decent returns.
The true key to making an investment safe is by investing in a time-tested "top dog" where the return on investment is moderate to high.
Consider these types of investments for your portfolio:
1. Bonds. Bonds are a safer investment than stocks. This is because a stock is an investment without a guaranteed return, while a bond is similar to a loan and has a promised return, plus interest.
· There is a difference between promised and guaranteed. No investment can be guaranteed but with bonds, you know what to expect. Look for investments with a low probability of default (the chance that the company would close its doors or file bankruptcy).
· Bonds are generally paid back to you by the end of the year. However, the terms can be different for each agreement.
· The larger the bond, the larger the profit. But remember, you’re always going to make more money on a higher interest bond. So, you may be better off investing your funds in one high interest bond rather than two lower interest bonds.
2. Stocks. As mentioned, stocks can be risky but, in order to earn a high return, some level of risk must be involved. You can minimize your risks by choosing one of the safer stocks (such as constantly thriving defensive stocks) to invest in.
· Companies, such as Pepsi (PEP), McDonalds (MCD), The Procter & Gamble Company (PG), Johnson & Johnson (JNJ) and Wal-Mart Stores Inc. (WMT) are some of the safer choices in the stock market. These companies also place a high value on shareholder satisfaction.
· Investing in defensive stocks, which are reliable and have proven their longevity and profitability, allows you a small blanket of security that you wouldn’t get investing in the newest, hottest companies, which can tank at any moment.
· Keep in mind, when investing in stocks, there are no 100% safe choices, but you can minimize your risk by buying stocks of a time-tested and profitable company. Or spread out your risk by investing in profitable, long-standing mutual funds where your return is based on a portion of a whole portfolio of stocks.
· Stocks are a better choice for your long-term financial planning goals. If you’re a cautious investor, look for a long-standing solid company to invest in.
3. Multi-family real estate. Now is a great time to invest in a multi-family dwelling. Due to the housing meltdown, there are many multi-family units priced to move quickly.
· A multi-family dwelling is a safer investment than a single-family home because you’re able to retain more tenants. Therefore, if one tenant decides to leave at the end of their lease, you still have other tenants set up in other units that are still generating income.
· Multi-family dwellings are more profitable than single-family homes. For example, if you have three 2-bedroom units renting for $700 each per month, you’re bringing in $2,100 per month. As opposed to the one, smaller income from just one tenant.
Developing an investment strategy takes patience and an honest assessment of your risk tolerance. Real estate investing has always been a popular investment. Owning a fully occupied multi-unit rental property guarantees a monthly return provided you budget for maintenance and other contingencies.
Bonds are safe, but they have the lowest return. However, a few hidden gems in the market offer high interest rates. Stocks offer a higher return but the return isn’t guaranteed and you expose yourself to greater risk.
A smart strategy is to spread your risk and return through a diversified portfolio of investments, some with lower risk and others with moderate risk. Only go for high-risk investments if you have money to burn! This strategy will let you enjoy consistently positive returns throughout the years.
Save Money By Becoming More Self-Sufficient
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Becoming more self-sufficient can help you save money in a wide variety of different ways. What you do in order to increase your self-reliance should be a personal choice, and it can take time to properly discipline yourself to meet these goals, so be patient as you adopt this new way to save money.
Try these effective, money-saving strategies:
1. Grow your own fruits, vegetables, spices, and herbs. There are a variety of different ways that you can grow your own food, including planting your own vegetable garden, growing non-hybrid vegetables and harvesting your own seeds, and using square foot gardening techniques in order to grow a lot of food in very small spaces.
* Take the capabilities of your garden further by using organic mulch from local sources and using homemade compost or free manure in order to enrich the soil in your garden.
* You can grow your own potatoes inexpensively, then save the fingerling potatoes to plant next year.
* Consider creating your own small orchard and growing your own fruit. You can even get planter-pot-size varieties of many fruit trees.
* Extend your growing season by building your own greenhouse. There are DIY options as well as kits that you can buy and assemble in a variety of shapes, sizes, and styles.
2. Utilize natural resources. There are a variety of ways that you can utilize renewable, natural resources in order to be more self-sufficient, saving money in the process.
* Cut your own firewood rather than purchasing it.
* Collect rainwater for use in watering your plants and other purposes instead of relying on municipal water.
* Supplement the heating system in your home by installing solar heating panels. You can also supplement your home’s water heating needs using the same panels.
3. Raise your own food. Consider raising chicken, sheep, goats, or even bees – not only to create your own food, but for other materials as well. You can raise chickens for eggs and meat, goats or cows for milk products, pigs and other animals for meat, and more.
* Goats and sheep can also provide you with materials for spinning, knitting and crochet. If you learn how to spin wool into yarn, you can make some of your own clothing, blankets, towels and other necessities.
4. Store what you grow. Consider building a root cellar so you can store as much of your harvest as possible. Also, by learning how to can foods, you can preserve some of the food you grow and some of what you cook, like soups, and enjoy food all year long based on what you grow from season to season.
5. Use and reuse. Reduce, reuse, and recycle may be an overused adage, but when you use and reuse whatever you can as much as possible, you reduce waste and find new and creative ways to become more self-sufficient and save money in the process.
There are many ways that you can become more self-sufficient. Be conscious of alternative techniques to improve your health and well being, your impact on the environment, and your wallet, and you may find other ways to increase your self-reliance as well.
What is Your Debt to Income Ratio?
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You’re probably wondering the best way to get your financial matters in order. The first step is determining your debt to income ratio. This will give you a clear picture about your financial status as you work out a plan to improve it.
It goes without saying that you want to have more money coming in than payments going out. But what is the best way to figure it out?
You can start by adding up all of your assets and all of your liabilities. If your assets outweigh your liabilities, you are in a good position. On the flip side, if your liabilities outweigh your assets, you need a plan of action to change that.
Many lenders use the debt to income ratio before approving loans as they want to make sure you will be able to pay them back. Knowing your debt to income ratio before applying for a loan will give you a realistic idea about whether or not you will qualify depending on the terms.
Make a list of your monthly outgoing payments. To get a completely accurate number, be sure to include everything. Here’s a list of possible debts that you should consider:
· Mortgage or Rent
· Car note
· Credit card payments
· Utility bills
· Insurance payments
· Any other outgoing payments
These are your debts.
Next, figure out your monthly income, which is your salary, bonuses, dividends, or any other incoming money you receive.
To calculate your debt to income ratio, take your total debt and divide it by your monthly income; this is your debt to income ratio.
You want this number to be as low as possible so if it’s on the high side, you may want to start thinking about how you can get it down.
Paying Off Your Debt vs. Investing Your Money
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Should your primary concern be to repay debt or to invest any extra money that you have to work with?
It can be hard to determine which course of action will best benefit you at any point in time. If you have a sum of money, such as a tax refund, it’s best to consider the most effective way to use that money with your future in mind.
Deciding whether to pay off debt or invest is a scenario that you’re likely to face many times. The best decision for you will depend on your own unique financial situation.
Here are two paths to consider when making this decision:
1. Rate of return. This path involves looking solely at the numbers. What’s the most profitable use of your extra money? Since not all debt is created equally, the solution isn’t always clear. Student loans, mortgages, and similar debt may have low interest rates and you could profit more by investing rather than seeking to pay these off early.
* Credit card debt, on the other hand, costs you more. It typically comes with an exorbitant interest rate, making it wise to pay this debt off as soon as you can. The rate of return on paying off a debt like this would often be better than investing that money.
* Check your credit card interest rates, or interest rates on other lines of credit that may be costing you money before you decide what to do with your windfall.
* Saving for retirement is also essential, however, so consider the options available here as well. Does your employer contribute matching funds to what you put into your 401(k)? Consider investing at least the amount that your employer will match in order to double your money immediately.
2. How you feel. You should look at more than the numbers, considering your own feelings as well. Where do you think the money would be best used? If you have a significant windfall, do you feel best investing it or using it to repay a large portion of your mortgage? The best answer for you will fall in line with your highest priority goals.
* It’s important to make the decision that you’ll be happiest with, so consider all options before applying money to one or the other.
* You may want to speak with an investment professional or your family for advice. They may point out options you hadn’t considered.
Two Important Considerations
Before you begin to pare down your debt or invest, there are two important things you should consider:
* The first is to ensure that you have an emergency fund so you won’t have to rely on credit in the future if a financial emergency occurs.
* If your company has a 401(k), begin investing in it as soon as you can, even if you cannot invest a lot at first. At the very least, invest enough to receive matching funds from your employer.
Keep in mind that very rarely do you have to rush to a decision. Take your time and make choices that will benefit you both in the short term and for your future. Ultimately, it’s up to you to decide how you want to spend your money. Follow these tips to help you make a decision you’ll be happy with.
Benefits of Investing in Gold and Silver
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One of the most important considerations when investing is to diversify so that your money isn’t all invested in a single basket. One investment that is well worth considering for your portfolio is purchasing gold and silver. You can invest in the actual metals, collectible coins, or in gold and silver futures, which is similar to stock investing.
Gold and silver investing isn’t for everyone, but this can be a solid investment strategy. Whether you’re collecting coins for the sake of an enriching hobby or for the investment value that comes from future resale, gold and silver can be quite advantageous.
Upward Trends for Silver and Gold
In recent years, gold and silver have both substantially increased in value. Since the year 2000, the price of gold has more than tripled. Since 2005, the value of silver has increased over 600%, doubling in price the past couple of years.
In contrast, the value of the US dollar has been falling. With the US government printing money in vast amounts like never before, the value of a dollar is predicted by many experts to fall further and faster.
As a result, many wise investors are putting part of their portfolio into silver and gold – both for their investment value and as a hedge against the falling dollar.
Here are some more benefits of investing in gold and silver:
1. Security. The investment can be physical rather than just on paper. Many investments are only on paper, such as stocks and bonds. They are virtual investments with nothing physical to back them up. On the other hand, a coin collection is something that you can hold and touch.
* Due to the physical nature of a coin collection, there is added perceived value because you can determine the personal worth of your collection by the condition, age, and rarity of the coins, and more, rather than just the value of the metal collection.
* Proof mint, numismatic, and semi-numismatic coins are historically more valuable than bullion coins due to their intrinsic and collectible value on the market. Bullion coins are generally valued only by the amount of silver and gold in them.
* Even in times in the past when the US government has forbidden hoarding gold by its citizens, it has allowed the collecting of valuable coins because their perceived value goes further than just the value of the silver and gold in them.
* Many people collect coins not only due to their worth, but also because of the rich history that comes with each one.
2. There are a variety of ways to invest. Since there are so many different types of coins, there are a wide variety of ways you can kickoff your investment. You can choose to collect historical coins, new coins, silver coins, gold coins, rare coins, misprinted coins or more, depending on what your individual interests are.
* Let your personal interests guide how you invest in coins and you’ll end up with a completely unique and valuable collection.
3. The investment can be liquefied easily. Although the amount of money you can net by selling your collection will vary from coin to coin, a coin collection is generally something that you can turn into cash very quickly.
4. Anyone can invest in gold and silver. It doesn’t take a lot of knowledge or experience to begin a coin collection: just a little bit of research, some planning, and a love of coins and investing. It’s a worthwhile investment for many people – young and old.
Diversifying is important when it comes to investing. You should never invest solely in gold or silver, or solely in any other type of investment. Invest in several different types of investment vehicles, and your portfolio will be much stronger.
