You've no doubt seen these or study them. Glossy advertisements or four-color propagates in magazines and papers promising to show you all of the juicy details about successful property investing. And all you need to do to learn all these real estate investing surface encounters chuck russo secrets is to pay a rather high sum for a one-or two-day seminar.
Often these slick property investing seminars claim that you can make smart, profitable real estate investments with zero money lower (other than, of program, the large fee you buy the class). Now, how interesting is which? Make a profit from real est investments you created using no cash. Possible? Not most likely.
Successful real estate investment requires cash flow. That's the nature of any kind of business or even investment, especially property investing. You put your cash into a thing that you wish and plan is likely to make you more income.
Unfortunately too few newbies to the world of real-estate investing think that it's any magical type of business where standard enterprise rules do not apply. Simply set, if you would like to stay in real estate investing for more than, say, a day or two, then you are going to have to create money to make use of and make investments.
While it may be true which buying property with simply no money down is simple, anyone who's even made a basic owning a home (such as buying their particular home) knows there's a lot more involved in real-estate investing that will set you back money. For illustration, what concerning any necessary repairs?
So, the primary rule people not used to real est investing must remember would be to have obtainable cash stores. Before you determine to actually perform any property investing, save some cash. Having slightly money inside the bank when you begin real estate investing surface encounters chuck russo can help you make more profitable real estate investments in rental properties, for example.
When real-estate investing inside rental qualities, you'll want to be able to select simply qualified tenants. If you have no cash flow when property investing within rental qualities, you could be pressured to take a much less qualified tenant since you need somebody to pay you money to enable you to take treatment of fixes or attorney at law fees.
For almost any real est investing, meaning local rental properties or even properties you purchase to sell, having money reserved can permit you to ask to get a higher cost. You can request a higher price out of your real estate investment because a person surface encounters chuck russo won't feel financially strapped as you wait for an offer. You won't be backed into a corner and forced to accept just any offer because you desperately need the money.
Another downfall of many new to real-estate investing is actually, well, greed. Make any profit, yes, but don't become therefore greedy that you ask with regard to ridiculous local rental or resale rates on any of your real estate investments.
Those a new comer to real property investing need to see property investing being a business, NOT an interest. Don't believe that real estate investing is going to make you rich overnight. What company does?
It takes about six months to decide if property investing set for you. If you've decided in which, hey I love this, then give yourself a couple of years to actually start making money. It often takes at minimum five years to get truly prosperous in property investing.
Persistence could be the key to success in real estate investing. If you have decided that real estate investing is perfect for you, surface encounters chuck russo keep plugging away at it and the rewards will be greater than you imagined.
You wouldn't think Apple and Indonesia have much in common. On the surface, they don't, but they can still teach you a lot about investing. Let's start with Apple.
Apple made the news recently with two major events. It is locked in a battle with Exxon over which is the most valuable company by market capitalization -- a remarkable turnaround. Apple has a market value of over $344 billion. Then Steve Jobs announced his resignation at Chief Operating Officer for health related reasons.
According to a thoughtful blog by Weston Wellington of Dimensional Fund Advisors (not available online), it was not so long ago that the financial media was trashing Apple. In February 14, 2005, Robert Barker, in an article in BusinessWeek stated "...Apple doesn't tempt me..." I wonder what did. Maybe Lehman or Bear Stearns!
Steven Gandel weighed in with an article in Money on March 24, 2004. He quoted Transamerica portfolio manager Chris Bonavico who opined that Apple stock is "...crap from an investor standpoint."
Many analysts credit the remarkable sales of its Apples Stores as the key to Apple's success. In a quote attributed to David Goldstein, Channel Marketing Corp, which appeared in an article in BusinessWeek on May 21, 2001, Mr. Goldstein gave Apple "two years before they're turning out the lights on a very painful and expensive mistake."
What can you learn from these comments about Apple stock? Read the financial media if you find it entertaining. It's useless (and potentially harmful) as a source of reliable financial advice.
What about Indonesia?
The financial media was preoccupied with the downgrade by Standard & Poor's of the credit rating of the U.S, which lowered its rating from AAA status to AA plus. The new rating places the U.S. below the United Kingdom, Canada and even the Isle of Man.
Many investors viewed the lower rating with alarm and considered it a precursor of low stock returns for decades to come. The data tells a much different story, and may indicate there is no better time to invest in U.S. stocks and bonds.
In another blog, Wellington notes that Standard & Poor's rated the credit of Indonesia a "B" in July, 2001, which placed it in the "junk" category. Over the past decade, its credit rating has never risen to investment grade.
Investors in the Jakarta Composite have earned a total return of a whopping 29% per year over the last decade, ending June 30, 2011. According to Wellington, "If the Dow Jones Average had kept pace with Indonesian stocks over the past decade, it would be over 104,000 today."
Here's the lesson to be learned from Indonesia: A low (or reduced) credit rating on sovereign debt does not necessarily correlate to lower stock market returns. This is the opposite of what many investors and financial talking heads believe.
Most investors get their financial information from the financial media or brokers. As Dr. Phil would say: How is that working for you?
Dan Solin is a Senior Vice President of Index Funds Advisors (ifa.com). He is the author of the New York Times best sellers The Smartest Investment Book You'll Ever Read, The Smartest 401(k) Book You'll Ever Read, and The Smartest Retirement Book You'll Ever Read. His new book, The Smartest Portfolio You'll Ever Own, will be released in September, 2011. The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. Returns from index funds do not represent the performance of any investment advisory firm. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Readers who require investment advice should retain the services of a competent investment professional. The information on this blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or class of securities mentioned herein. Furthermore, the information on this blog should not be construed as an offer of advisory services. Please note that the author does not recommend specific securities nor is he responsible for comments made by persons posting on this blog.
Warren Buffett just announced that he's making a landmark investment, $5 billion, in Bank of America.
Bank of America was facing a free-falling stock price and a number of criticisms, including that it did not have enough capital, and that its assets were not worth what it claimed.
Now thanks to Buffett, that will certainly change.
When similar investments were made in Citi and in Goldman Sachs, by Prince Alwaleed and Warren Buffett, in 1990 and 2008, respectively, the stocks experienced long term gains.
And get this - he says he dreamt up the idea to invest in Bank of America in the bathtub on Tuesday. He liked it, so he called Moynihan on Wednesday morning. The entire story of how it happened is available in a video embedded below, as told to Becky Quick by Buffett.
The story (and the mental image) is amusing but also important - it suggests that the Obama Administration and/or the Treasury, did not have a hand in the agreement.
And to make it very clear that Treasury or Obama had no hand in the arrangement, which makes the news even better for Bank of America.
So does this - the deal is expensive for Buffett, and a good deal for Bank of America. He says in some ways, it's better than the deal he gave to Goldman Sachs in 2008.
But obviously, it's a great deal for Buffett.
Buffett's investment alone is now worth $700 million more than it was when he bought it.
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