Posts Tagged: ‘investing’

The Perks of Investing in Real Estate

May 16, 2012 Posted by admin

Thinking of a great way to build wealth amid these trying times? If you are, you should consider investing in real estate.

Despite what many people believe, becoming a real estate investor can help you earn huge profits, regardless of the current financial crisis. As long as you play your cards right, you can reap huge rewards and achieve the goals that you have set for yourself.

Investing in real estate is more advantageous than, let’s say, buying stocks. Although taking chances at the stock market can sometimes yield higher profits, suck a lucky break doesn’t usually last long. As we all know, stock prices are volatile and they go up and down almost everyday. You can score a big jackpot today but lose them all the next morning. With real estate investing, however, you don’t have to be afraid of losing all your investment capital in one day as real estate prices are relatively stable, unlike stock prices.

Another perk of investing in real estate is that you can get access to a continuous source of income. Instead of selling a house that you have rehabbed, you can find tenants for the property. This way you can collect rental income every month. And if you put additional amenities into the property, you can collect higher rent.

However, to succeed in the real estate investing business, you have to make sure that all the properties you will invest in will bring you big profits. Otherwise, it will only cause you to waste precious time and lose a lot of money.

So what makes a property profitable? The first answer would be its location. If the property has proximity to major government and commercial establishments or is located in the best school district in a city or county, chances are it can fetch a higher price even before you fix its leaking roof and paint its walls.

Upcoming urban development projects in the area where the property is located can also boost its profitability and marketability. People would naturally relocate to places that can offer them great living arrangements, thus, it would be wise to invest in houses located in such areas.

Another key to success when investing is real estate is to educate yourself about the latest market trends and learn various hints and tips on being a real estate investor. Such strategies can help ensure your survival in this competitive but rewarding industry.

For your real estate education needs, log on to www.Rehab-Real-Estate.com. The website is committed to providing quality real estate education for those who want to become experts at real estate investing.

REI Wired is the pinnacle of real estate education by serving high-quality content through high-quality videos. Sign up only takes a minute and you can start right away! Learn More

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The Basics of Investing in Real Estate

May 15, 2012 Posted by admin

If you are thinking of a new way to make money, then you should probably consider investing in real estate. Being a real estate investor is a lot of fun. You get to meet a lot of different people, as well as learn valuable skills and lessons that can help you grow as a person.

There are many modes of real estate investing, which is basically defined as the purchase, ownership, management of real estate properties for profit. The most basic of them, however, is wholesaling, rehabbing, flipping.

In the real estate business, the term wholesaling is applied to the process of placing properties under contract and then selling or “assigning” the said contract to another buyer. In a nutshell, a wholesaler basically finds a bargain property and then sells it to a bargain hunter.  He makes profits in this business through the “assignment fee” he receives from the buyer of the property.

Rehabbing, on the other hand, involves the purchase, renovation, and sales of an old or undervalued property. In this type of real estate investing, the rehabber buys a house, usually at a highly discounted price, and then makes structural repairs and renovations. Once the repairs are completed, the investor will sell the rehabbed property at a much higher price, which is mostly close to the property’s market value.

The business of flipping houses has come under fire in recent years because of the negative publicity about it. This has led to many people believing that this particular type of investing in real estate is against the law. However, there is absolutely nothing wrong with buying and quickly selling properties for profit. Flipping becomes illegal only when it involves mortgage fraud.

If you want to become a real estate investor, here’s what you should do to ensure your success in the business:

  1. Find a trustworthy mentor. Having someone to guide you when making tough decisions can help prevent you from getting stuck in the middle of deals.
  2. Find good instructional materials about investing in real estate. Before you delve into the world of real estate investing, you have to equip yourself with proper information about the business so you’ll know exactly what to do when a good deal comes your way.
  3. Find profitable properties. Don’t invest in houses that won’t bring you profits, period.

To learn more about investing in real estate, log on to www.Rehab-Real-Estate.com, your great source of quality real estate education.

Rehab Real Estate is your perfect guide to the exciting and lucrative world of real estate investing. Whether you’re into rehabbing houses, property investment buying, or fix and flip, we’ll teach you everything you need to know so that you’ll earn MAXIMUM PROFIT in each and every deal.

Article Source:http://www.articlesbase.com/investing-articles/the-basics-of-investing-in-real-estate-1581900.html

2 Reason a Stock Price Will Change – You Must Know them Before Investing

December 29, 2011 Posted by admin

Stock prices are constantly changing, especially stocks that trade hundreds of millions of shares in a single day. Every second the stock price is changing, but why? What causes sudden fluctuations in a stock price? The answer to this is very simple and it all has to do with supply and demand of the stock. The supply of a stock is the number of shares offered at any given moment and the demand of a stock is the number of shares investors are willing to buy at the exact same time. Let’s say for example that good news about a company was just released on the morning news. The demand for the company’s stock will jump because investors know that the company is worth investing in. However, the demands of the investors don’t meet the supply of the sellers. This will cause the price to go up because of the increased demand. People cannot just automatically buy stock because for every share bought there was a share sold.

In our example, let’s say that there is a demand for 1000 shares but only 500 shares are being sold at the time. Since there is more demand than supply this will cause the stock price to rise. With the rise in stock price, more people who own the stock will be more likely to sell it. This is how the stock reaches equilibrium (1000 shares demanded = 1000 shares sold). When a stock price decreases, just the opposite is happening. In stead of 1000 shares demanded and only 500 shares selling, there would be 1000 shares waiting to be sold and only 500 shares demanded. This will cause the stock price to decline and investors will then be more likely to buy the stock at a lower price to fulfill all of the sellers.

We implement the complexities of the stock market and put them into terms that the average individual can connect with and understand. If you enjoyed this article and would like to learn more about stock related topics then please visit: http://www.erikandjeff.com

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How To Make The Right Investing Choice Tips

December 25, 2011 Posted by admin

Loads of people want to try their hand at investment, usually as a means to form a nest egg for their relations in the future and there are countless ways to achieve this. One of the most apparent avenues for investment are the stocks and share markets, but there are various other practicable options too, which may be of relevance to you. Any one of these might be promising for the future, provided you have the right mental make-up to cope with them. Although this piece cannot provide sufficient space for covering all detail concerning this vast topic, this could in the slightest, offer you some sorts of rule of thumb involving possibility.

Stocks and mutual fund investments have all the time been beneficial, however before doing this you should do a huge amount of investigation on the corporations where you want to invest in. If you are searching for short term gains (long term too), subsequently the stock exchange is the place to do this but it is also where everyone can end up with egg on their face from time to time! Certainly if you are investing in real estate, you are more expected to witness respectable profits however they will take some time although it is a a lot safer option. Some individuals purposely purchase a home that requires extensive remodeling as they could acquire them for a lesser amount of money although the profits when they are sold could be huge however this does take a sizeable quantity of work to be carried out first. In case you find this choice of property desirable, do some investigation as there is more than what is mentioned here, which is not the case with the next option we will discuss.

The fastest way to get started is by doing it on the internet and it is too the fastest emerging segment of investment since it could be excuted by just about anyone using their computer and internet connection. For online trading, you have to check the company’s history, their progression and performance track record prior to you putting your funds with them, nevertheless the whole of this could be done very fast. This kind of investment needs some speculation and someone with a lot of built-in restraint would be good at it, as majority of folks goes on blindly bidding till they find that more money is lost than gained.

While some individuals go about their business depending only on Lady Luck to smile on them, whereas others who are more diligent, burn the midnight oil to analyze the lot they ought to know to make their investment ideas come true with desire income. Do not turn trading into a something parallel to the turn of a roulette wheel as if you do, you will surely lose when all that was necessary was some examination of the markets. Use the Internet to your benefit where there are plenty of forums and sites devoted to provide you information on sensible investments, learn from these as well as others’ experiences. I individually know lots of people who have trusted in this kind of investing and have become prosperous, and there are several who have lost all they had.

To Learn More about mutual funds as investment options, What is mutual fund and Understanding Mutual Funds Go over to my blog for quality mutual funds information.

Article Source:http://www.articlesbase.com/investing-articles/how-to-make-the-right-investing-choice-tips-1543104.html

Stock Market Investing

December 3, 2011 Posted by admin

Investing in the stock market requires a lot of knowledge and understanding of the forces that control and affect the performance of the securities that are usually traded in the market. To get involved with stock market investing, you must first get educated about the basics of investing. This may mean that you will need to attend a seminar for example, or just look for this information online. Other sources of this information are financial advisors and stock market analysts.

Once you are armed with the information, you will need to come up with investment goals and objectives. By so doing, you will be able to come up with clear cut outcome of what you hope to achieve from the investments. In addition, the objectives and the goals will be able to help you develop your own stock picking strategy that will lead you where you want to end up as far as investing is concerned.

Remember that stocks come in many different types. You therefore have an extra assignment of getting to understand the stocks in their own individuality. Reading the annual reports and other documents available at the Securities and Exchange Commission will help you get even more clear information about these stocks.

If you want to fully succeed in stock market investing, choose to invest in what you know. Consider investing in stocks from companies that you are familiar with. You also need to have confidence in those companies. Do not rely on your own knowledge; consult with other investors and investment advisors. As you invest, choose to diversify by investing in a number of varied stocks and securities. This goes a long way to curb and spread the risk that comes with investing in limited number of stocks.

Peter Gitundu Creates Interesting And Thought Provoking Content On Mutual Funds. Read More Of His Articles Here STOCK MARKET INVESTING

Article Source:http://www.articlesbase.com/investing-articles/stock-market-investing-1483634.html

Canadian Income Stocks!

November 7, 2011 Posted by admin

18 High-Dividend Canadian Stocks

 

 

The 2008 financial crisis uncannily echoes what happened in Japan more than a decade ago. In the 1990s, the Japanese banking systems had become overloaded with bad loans after a property bubble collapse, according to Gillian Tett, author of Fool’s Gold. The investor psychology seemed dangerously similar too.  If this is the case, investors who buy high yield stocks now could collect big dividends while the economy fights to get back on its feet.

 

The Associated Press (AP) reported on Friday that the U.S. federal budget deficit has surged to an all-time high of $1.42 trillion. The Obama administration projects deficits will total $9.1 trillion over the next decade. For weeks the US dollar’s decline sent gold to all-time highs and helped oil to over $78. Canada happens to have plenty of these commodities. 

 

The following are 18 Canadian companies listed on U.S. exchanges with market caps greater than $1 billion, reasonable P/E ratios, and dividend yields greater than 3.5% (sorted by yield):

 

 

Name

Symbol

P/E

Yield

Market Cap

PROVIDENT ENERGY TR

(PVX)

9.0

11.1%

1.66B

PENGROWTH EGY UTS

(PGH)

5.0

10.6%

2.61B

PENN WEST ENERGY TRU

(PWE)

5.1

10.1%

6.90B

ENERPLUS RES FD

(ERF)

5.8

8.4%

3.97B

HARVEST ENERGY TRUST

(HTE)

4.2

8.1%

1.14B

B C E INC

(BCE)

21.7

6.1%

18.82B

TELUS CORP

(TU)

8.6

5.8%

9.41B

PRECISION DRILL TRST

(PDS)

4.3

5.7%

1.91B

BANK OF MONTREAL

(BMO)

17.3

5.1%

27.68B

TRANSALTA CORP

(TAC)

21.9

5.1%

4.07B

BAYTEX ENERGY TR UTS

(BTE)

12.8

5.0%

2.77B

CANADIAN IMP BK COMM

(CM)

3.7

5.0%

2.98B

BROOKFIELD PTYS CP

(BPO)

6.2

4.6%

4.47B

TRANSCANADA CORP

(TRP)

15.1

4.3%

21.71B

SHAW COMM CL B NV

(SJR)

15.6

4.2%

8.24B

ROGERS COMMUN CL B

(RCI)

16.8

4.0%

16.57B

BANK OF NOVA SCOTIA

(BNS)

16.7

3.9%

45.86B

TORONTO DOMINION

(TD)

17.4

3.5%

53.70B

 

These 18 high-dividend companies are in 4 sectors: Energy, Financial, Telecom and Utilities.

 

Energy Income Trust

High demand from China and a weak US dollar make the energy sector attractive.  7 companies belong to energy income trust category:

 

Symbol

Operating Margin

Debt/Operating CF

52-wk Range

(BTE)

36%

1.0

7.84 – 26.44

(ERF)

51%

0.7

12.85 – 28.58

(HTE)

10%

3.2

3.00 – 11.55

(PDS)

28%

2.0

2.00 – 12.21

(PGH)

22%

2.5

4.51 – 11.90

(PVX)

23%

1.5

2.23 – 6.84

(PWE)

58%

2.3

6.77 – 19.01

 

 

For sophisticated traders, trading commodities directly might provide a higher reward. For income investors, commodity companies might be a better choice because they provide some buffer, in addition to regular dividends.

 

There is a small ETF called Claymore Canadian Energy Income (ENY) which includes most of these companies. Its yield is 5.45%.

 

 

Financials

The Following are comparisons between Canadian banks, U.S. major banks averages, as well as JPMorgan Chase (JPM), one of the most conservative banks in the US. Clearly Canadian banks are much more profitable.

 

Description

P/E

ROE %

Div. Yield %

Net Profit Margin %

U.S. Money Center Banks

n/a

1.1%

1.1%

1.3%

JPMorgan Chase & Co. (JPM)

52.6

2.9%

0.4%

15.5%

Toronto-Dominion Bank (TD)

17.6

9.4%

3.5%

22.2%

The Bank Of Nova Scotia (BNS)

16.8

13.2%

3.9%

28.9%

CIBC (CM)

3.8

7.0%

5.0%

18.8%

Bank of Montreal (BMO)

17.4

9.2%

5.1%

21.8%

 

 

Telecom

Competition in the telecom sector is heating up in Canada. When BCE (BCE) and Telus (TU) announced they will start carrying the iPhone next month which puts an end to the exclusivity that Rogers (RCI) has enjoyed, it sent RCI’s short ratio to a stunning high of 33. Unlike those 3, Shaw Communications (SJR) primarily focuses on cable services.

 

Utilities

TransAlta (TAC) is an electric utility company while TransCanada (TRP) operates through two segments: pipelines and energy. TAC’s short ratio of 5.8 makes me nervous.

 

 Conclusion

After boldly buying when others were selling, Warren Buffet is pulling back, buying fewer stocks while investing in debt.  He is warning that the economy, though on the mend, remains deeply troubled.

 

In addition, the Canadian dollar is a strong threat to the Canadian economy. CurrencyShares Canadian Dollar Trust (FXC) appreciated over 13% this year. Mark Carney, the governor of the Bank of Canada, has warned that the Canadian dollar appears to be moving away from the fundamentals. 

 

The iShares MSCI Canada Index (EWC) year-to-date’s return is an astonishing 46%. A great stock can be easily turned into a bad investment, if you buy it at a higher than reasonable price.  It all depends on the starting price.

 

Nonetheless, high-dividend, fundamentally-strong companies are more likely to survive in this stormy market. One of the greatest ways to protect your portfolio is through asset allocation: to make sure not a single sector accounts for more than 20% of your portfolio. Be sure to re-balance as it will automatically enroll you into the “buy low, sell high” camp.

 

Disclosure: I have long positions on BMO, BNS, CM, PWE, TD, and TRE. All data is from Yahoo Finance (http://finance.yahoo.com/) as of Oct 16, 2009. 

 

Stocks: BCE, BMO, BNS, BPO, BTE, CM, ENY, ERF, EWC, FXC, THE, JPM, PDS,

PGH, PVX, PWE, RCI, SJR, TAC, TD, TRP, TU

 

Hao Jin, CFA
Contributing Writer

Article Source:http://www.articlesbase.com/investing-articles/canadian-income-stocks-1360481.html

Buying Property with an Investment Loan

November 7, 2011 Posted by admin

When it comes to purchasing a new property, you may want to consider obtaining an investment loan. This option should only be considered if you want to purchase a second home for either the purpose of resale or to use as a rental income. There are many advantages to securing an investment loan for this type of property purchase, and in some places it is the only option open to those who want to purchase investment property. While on the surface an investment loan and a mortgage seem the same, in reality they are two completely different types of funding.

It is important that when you are considering any new loan that you first research all of the possibilities available. It is also highly recommended that you ensure that your credit and financial situation is at the level that your financial institution will require to get the best rates possible. All of this research and previous planning will ensure that you will be able to obtain the best rate, which has the potential to save thousands of dollars over the course of your loan. All of this planning should be done before you even approach your financial institution to avoid any surprises during the actual loan process.

Once you have decided that you meet all of the requirements of your financial institution and you have found the investment loan that will meet your specific situation, then it is time to seek pre-approval from your institution. In this case an investment loan and a mortgage are very similar. You should always secure pre-approval for any investment loan or mortgage that you are seeking before you begin the process of searching for the right property. This will give you an edge over other potential buyers and will give you a concrete amount that you will need to work with during the shopping phase of this process.

It is important to remember that in this case an investment loan will work much like a mortgage in many ways; however there are certain programs and benefits that will not be available. While on the surface both an investment loan and a mortgage will act in the same manner, you may see the difference when it is time to refinance, or in the fees that are charged at the close of the loan. It is important to anticipate these differences to avoid any unnecessary stress during this time.

When it comes to investing in property an investment loan is usually the only option open to you. Many both in and outside of the financial industry will use the terms mortgage and investment loan interchangeably when the conversation turns to investment property. The important thing to remember is that these are two very different loans. Most financial advisers will tell you that investing in real estate is always a wise choice, even in a slow housing market. One of the most secure types of investments will always be real estate, so it may be time to try your hand at the housing market.

Austral Mortgage makes choosing the right Investment loan for you easy. Your Choice of Investment loan will impact on your Investment Return. We have a wide range of loans to suit your mortgage needs. We also provide advanced mortgage calculators to help make your financial decisions easy.

Article Source:http://www.articlesbase.com/investing-articles/buying-property-with-an-investment-loan-1351787.html

Finding an Investment Loan

November 6, 2011 Posted by admin

When it comes to finding an investment loan, whether you want to purchase property or help fund a new product or an upcoming business it is always important to do your homework. Even in today’s economy there are many options available to an individual who would like to secure an investment loan, this is where taking the extra time to research your options has the potential of saving you thousands over the course of the loan. It is important to understand that there is a major difference between an investment loan and a mortgage or business loan, and these differences need to be understood even before you approach your financial institution.

All loans are not created equal and understanding the purpose of each option can have very positive effects on your bottom line. When it comes to investing in property either for resale or for potential rental income it is important to know that the loan you will need is an investment loan, not a mortgage. While both loans seem the same on the surface, in actuality they are very different. There are many tax incentives and programs that are available to those who have a mortgage on a property that are not available for those who have an investment loan, and vice versa.

When attempting to secure a loan for either a business or a new product there are different types of loans that are available depending on the amount of interest you will have in the business. If you want to start your own business then you will need to secure a business loan, however if you only want to become an investor or have a small interest in an existing business then you will need an investment loan. The same is true if you are in a position to help bring a valuable new product onto the commercial or private market. Depending on how much interest you have in the venture will depend on what type of loan you will need to secure, however in this situation the most common is an investment loan.

While all of this may sound confusing there are many ways to determine the exact type of loan you will need in any given situation. The first step is to always do your homework both on the type of loan you will need to secure and you personal finances. Understanding every possible avenue when it comes to funding can greatly increase the chances of getting the best deal possible. It also has the potential of saving thousands of dollars over the course of the loan.

There are a few key facts that have not changed when it comes to securing an investment loan, and they start with knowing exactly how much interest you will have in a property, business, or new product. An investment loan should only be considered if you want to “buy-into” a company, purchase an investment property, or help fund a new product that on the market. This is a simplified explanation of the best times to obtain a investment loan, however you should always speak to your financial institution to customize the right funding options for your situation.

Austral Mortgage makes choosing the right Investment loan for you easy. Your Choice of Investment loan will impact on your Investment Return. We have a wide range of loans to suit your mortgage needs. We also provide advanced mortgage calculators to help make your financial decisions easy.

Article Source:http://www.articlesbase.com/investing-articles/finding-an-investment-loan-1351795.html

Income Investing Secrets System

July 30, 2010 Posted by admin

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REHAB-REAL-ESTATE: Real Estate Investing: What Makes It A Good Choice?

January 4, 2010 Posted by admin

Real estate investing is not only a profitable business. More than just that, it also offers you many benefits, which will give you the career satisfaction that you will not find in other jobs. In this article, REIWired shares with us some reasons why many investors have chosen to build their career in real estate.

  • You are your own boss. Nobody asks you to slow down or to speed up. In real estate investing, you are your own boss. You can work at your own pace and at your own convenience. If you think you are most productive at night, you may do so. As long as you get all your tasks done, you have nothing to worry about.
  • You can sleep as long as you want. The downside about going to a regular day job is that you go to work every day. Before going to sleep, you set your alarm and when it starts to beep the next morning, you are left with no other choice but to drag yourself out of bed and prepare for work. According to REIWired, one of the best things about real estate is that sleep no longer becomes a luxury. You can sleep any time you want to.
  • You have no routines. Today, you can work right after you wake up inside the comforts of your room. The next day, you can work at a coffee shop. REIWired says that going fulltime in real estate saves you from the boredom of dealing with routines.
  • You have more time for your family and for yourself. Studies have shown that the number of women who shifted career path from corporate jobs to real estate investing has significantly increased. The most common reason for this is because most moms want to spend more time with their families. This is almost impossible to do when you have a regular day job.
  • Real estate investing allows you to meet people from all walks of life. More than just learning the basics of construction and remodelling, real estate also entails extensive. You need to expand your network in order for you to build your market. This means that you get the chance of meeting people from different lifestyles.

The industry offers a wide range of niches for you to choose from – rehabbing homes, flipping houses, short sales, etc. If you plan of venturing into real estate, be specific. According to REIWired, take time to assess yourself and find out which among these options will fit you best. For more tips on real estate investing, go to www.rehab-real-estate.com.

Rehab Real Estate is your perfect guide to the exciting and lucrative world of real estate investing. Whether you’re into rehabbing houses, property investment buying, or fix and flip, we’ll teach you everything you need to know so that you’ll earn MAXIMUM PROFIT in each and every deal.

Article Source:http://www.articlesbase.com/investing-articles/rehabrealestate-real-estate-investing-what-makes-it-a-good-choice-1662509.html