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Smart Rental Property Investments – How to Make Them (Part 1)

Has anyone ever told you that investing in rental property is easy? Yep, just buy a property with no money down, wait a year and then sell it to the next person in line for a hefty profit, all while collecting monthly rent checks and not getting your hands dirty. Sounds great – ok, my article is finished, finito. But wait, there’s one small fact that’s missing from that prior advice – right, it’s called reality, oops!

The Status of the Real Estate Market Today

The days of getting easy financing from lenders to buy investment properties that experienced double-digit annual appreciation have come and gone. The real estate landscape is currently correcting itself to get back to normal, where the number of buyers in the market equals the number of sellers. Although corrections can be painful, fortunately they don’t last forever. In the long term, they provide market stability and opportunities for buyers. And this is actually healthy – it’s the markets way of applying the brakes to keep the train on the tracks.

Today, as a rental property investor, you’ll need a solid base of knowledge on the subject to be successful, especially in this challenging real estate and economic environment. Knowledge of the business will “let you know what you’re getting into” so that you can avoid potential problems and investment mistakes.

Basically, making smart rental property investments involves taking the following steps:

  • Evaluate your employment situation: First and foremost, the stability of your job and income stream is a key factor that reduces your real estate investment risk. How stable is your industry, employer and the economy in your area? If you were to lose your job tomorrow, how long would it take for you to find suitable employment again? Could you collect unemployment benefits if you were laid off, and for how long?
  • Take inventory of your current financial status: Getting your financial house in order and paying down credit is needed to qualify for lender financing to purchase property. As a result of the “sub-prime” lending mess, lenders have tightened their belts with stricter qualifying standards for borrowers. You’ll need to have enough money saved for a down payment. If not, you’ll have to develop a disciplined budget and savings plan to accumulate the necessary funds.
  • Get pre-approved for a mortgage with a lender: This will make you a serious buyer in the eyes of sellers and will determine “how much house” you can afford. And, shop around with several lenders to get the best deal – this can save you a lot of money, especially over the long run.
  • Develop a real estate investment plan: Just like a “road map” is needed to get you through unknown territory to your ultimate travel destination, a real estate investment plan is needed to help you realize your investment goals. Learning the fundamentals of how to develop a practical investment plan that’s tailored to your individual goals is essential for achieving investment success.
  • Realize that all real estate is “local”: Get a feel of the real estate market conditions in the areas where you’d like to buy investment property. This includes getting actual sales price (not just list price) data of recent investment property sales in the local areas. Having your finger on the pulse of the local rental property market is paramount for investing wisely.

We’ll stop and catch our breath here so that the information can be absorbed. Part 2 of this article completes this list with several more recommendations that will “round-out” the major steps needed to make smart rental property investments.

Business Center Lease

All sizes and types of businesses require a huge capital investment in the starting phase of a business to buy new business space or equipment. Those who’ve started out on a new business will not be able to invest the huge amounts required for their business center. If you’re in such a situation you can opt for business center leasing solutions which are the most popular option for start-up businesses nowadays. A business center is the place from where you can operate your business and achieve optimum workflow. Moreover, it is a viable option for small and large businesses to maintain a competitive edge.

Acquire new lease space or upgrade the existing one with the business center leasing solution. With this ideal solution, you can have an office space with equipment, fixtures, furniture, furnishings, and technology required for your office needs. In addition, business center leasing supports soft costs related to equipment purchase including training services and installation services. Thus all your office needs can be clubbed under a single lease through business center lease. The idea behind the business center lease is to make one payment a month. This will help you grow your business with minimal monthly expenses.

Business center lease will give you an added advantage for the short term when compared with long term obligations. Business center leasing options will help you to

o Lower your tax bill
o Preserve your capital
o Preserve your personal credit rating
o Make your business remain competitive
o Avoid future inventory hassles
o Keep pace with the modern business world
o Manage the balance sheet and improve cash flow
o Have flexible payment terms
o Save your bookkeeping expenses

Keeping the needs of today’s businesses in mind, business center leasing providers offer finance lease as well as true lease. The leasing period may vary from 1-5 years. Attractive offers are available for business center leasing owners to

o Buy-out the leasing business center
o Extend the leasing terms
o Return the business center

A workspace with the latest equipment plays a vital role for the success of every business, large or small. Get a business center lease on a competitive budget.

How To Gain a Better Return of Investment From Your Business

Every person who turns to business has a goal to create the largest return of investment with minimum risk. However, the theory is easy to understand but getting it into practice is difficult. Rate of return is the benefit one gets from the total investment. This is the keystone to a success in business. A venture can lead to both profit and loss. Here, risk refers to the loss of money.

In certain areas, the invested amount may also be an utter loss. All such risks can be expelled by choosing a proper investment. Fields such as a legitimate home based business require only low rates of investment. By managing the risk properly, one can be successful through investing. Measuring the risk of an investment is to investigate the worst and best case scenarios. Plan for the worst and hope for the best, and you will never be the loser.

If you are in the business of share trading, studying a stock’s past performance will point out flaws in that particular stock’s parent business. Confusion on determining the degree of risk can be solved by finding a reliable advisor or brokerage. You need to remember that all major investments have risks hidden in them. As the success rate increases, the risk and profit potential will also increase.

Today, people are more inclined to online jobs for better rates of return. There are many interesting and legitimate work at home jobs that are available online. The degree of investment ranges when it comes to the various categories of online jobs and businesses. On the one hand, freelancing and online jobs generate decent returns with low investments, while on the other hand creating a business website and promoting links is useful, but more expensive. Initial investments that are low are apt for a web creation. Later, hard work and regular investments on creating blogs, forums, and ebooks all will help in promoting more users thereby creating a better profit.

Subscribing to articles on the marketed product will help in a more profound rate of return of investment. It gives no headaches related to business flops. A thorough study and research on the intending online business along with reliable partners like joint ventures or jvs will again add to the benefit of initial tasks. Simply investing and keeping your hands free thereafter would not do. Generating fresh traffic to the site is essential. This too needs quite a bit effort and struggling as there is heavy competition prevailing on captivating traffic. Combining all the proposed articles to one whole ebook and expanding it to all the subscribers is indispensable.

Experience in the field is essential. If a person lacks such knowledge on business, it is advisable to seek the assistance of a renowned business icon. Sure the icon would be expensive, but consider the potential returns and you will get the whole picture. There are lot of books and articles available in the market nowadays that are good enough to acquire a good return rate. It would also be beneficial approaching financial and business consultants such as a search engine optimization specialist, as they would be able to give practical guidelines for a successful online business. Above all this, the person should always go for a business to which he is thoroughly interested in, rather than pursuing others ideas. This will lead to a more hard work and will attain more profit. Needless to say, the return of investment would be much higher in this case, as the business is just an extension of the personality of the owner!