Tag Archives: real estate investing

How to afford an investment property on $5 a day

investment property

Most people believe that it takes a ton of money to buy a quality piece of real estate. They feel that it will cost a whole lot more money than they will ever be able to accumulate from their paychecks alone. While saving for a mortgage is tough if you are trying to accumulate a lump sum of money, it is a whole lot easier if you start by saving small amounts of money. Use these methods to make your dream of owning an investment property affordable.

Save small amounts of money every day

You may not think that saving a couple of dollars a day can help you to buy a property investment but it really can. You could cut out a cup of coffee a day or start eating lunch at home to save yourself five bucks or more a day. You might be surprised to know that an amount as small as $5 a day comes out to $1,825 a year. If you do this for three years then you will have saved almost $5,500 in cash. That is just in principal alone! That is a nice down payment to put down on your investment property.

Invest a small amount of today

The same $5 that you are socking away and saving can grow even higher than that $1,825 a day. If you took that five dollars a day in savings and invested $150 each month then your money would grow at an even faster rate. You could get guaranteed interest with a certificate of deposit or a savings account. You could also take the money and buy some short term government bonds. The amount of money that you have to put down on an investment property will continue to grow. Your mortgage broker will be shocked at the large amount of money that you saved just from some small cutbacks in your budget.

Earn an extra five bucks a day

If you do not want to cut out five dollars a day from your budget then another method you can use is to earn an additional five bucks a day. You can perform a simple task that nets you an extra $35 a week. It is incredibly easy to do this. You could do an extra hour or two of overtime on the job or you could start a little business that just makes $150 a month. It will take you under 10 hours a month to do this and you will have the satisfaction of knowing that all of the money you earned is going to an investment property.

The Things You Must Avoid and Must Do When Buying Real Estate in Your IRA or Pension Plan

Real Estate Investing

Hi everyone. I just came across the most recent edition of Escape from America magazine and I found an interesting an useful article that I’d like to share with you all. It talks about the 3 things you must avoid and the 5 steps you must take when buying real estate in your IRA or pension plan. All of this advice is very good and I strongly recommend you follow it.

Here is a listing of the 3 things you must avoid:

1. Taking title in your IRA  administrator’s name

2. Lack of an overall plan

3. Do not involve yourself or disqualified parties

And now for the 5 steps you must follow:

1. At closing, have the property deeded into a land trust

2. Record a lien

3. Get Homeowners’ Insurance

4. Use an attorney or title company to close

5. Begin with the end in mind

To read the complete details of each “must and must not do” step I suggest you checkout the full article over here.

Hope you found this useful.



Pros and Cons of Buying Properties off the Plan

Real Estate Investing

Buying properties off the plan is an exciting method of investing that has a great deal of potential for profit. But there are very real risks involved in this type of real estate investment. Make sure you know the risks and the potential rewards before you dive in head first.

Buying Off the Plan: Pros and Cons

Buying off the plan when it comes to real estate investing can be an extremely profitable way to do business in high demand real estate markets. What it is, is buying property at today’s prices even though it hasn’t yet been built. In some instances, ground hasn’t even broken on the projects before entire buildings are sold out or “on contract.” The idea behind this type of real estate investing is that you can buy at today’s prices and bank on the fact that real estate investments are going to increase in value by the time construction is complete and units are ready to be “lived in.”

The Good News about Buying Off the Plan

There are plenty of benefits for buying property off the plan. The first and perhaps biggest benefit is that in boom markets, the value of a property can easily increase substantially by the time construction is complete. This means a huge payoff for what is a minimal investment in many cases. How is it that this would be a minimal investment? Another benefit is that you don’t need all the money to make the purchase at the time you make the offer and “buy” the unit. In many cases, earnest money of five to ten percent is adequate to hold the property for you. There are also many tax benefits to making this type of investment. Be sure that you get the specifics from a qualified accountant before you invest so you can be certain that the investment you’re making will serve you better in the end.

The Downside of Off the Plan Investing

While the good is really good, the bad with this type of investment is really scary. First of all, there are a lot of scams going on so do your homework about the company you’re investing with. Make sure you’re not getting into some sort of scheme that will ultimately take your deposit and run. When you consider that many of these properties sell for half a million dollars or more, even five to ten percent is a sizeable amount of money. The second problem is that there are no guarantees that the property bust will continue or that prices will continue to rise. It is very possible to get stuck with properties that are worth less than what you offered for them and now you have to come up with the money to buy the property and make good on your offer. This often leads to short sales and in addition to the loss of the investment and deposit (again not an insignificant amount of money by any standards) but also to the potential loss of your good credit score.

The Bottom Line for Buying Off the Plan

In the end, there are a few things you’d do well to remember when buying properties off the plan. You should never buy from developers that don’t have a good reputation or are unknown. You should also ask around and talk to people who have invested with them (with good results) in the past. Get specific information about every aspect of the sale and what is included in the sale of the property. Study the market. Yes, an upward cycle or real estate boom is exciting. But don’t invest more than you can afford (even if it would be painful) to lose. Don’t risk your livelihood or retirement on what could amount to an expensive gamble. When you have everything in order before going into the sale you will be better prepared to buy with confidence. Be aware of the risks and mindful of the potential. Good luck!

Stop Getting Scammed Online – Get Involved In A Real Offline Business!

Is The Following Lifestyle… Possible?

Not If you keep participating in online scams that promise
you the world and an unrealistic ROI %

If you are fed up with getting ripped off and would like to join
a Real, Offline, Long Term, Legally Registered, Land Development
that could provide the means for such a lifestyle, read on….

Would You Prefer To Be Involved In A Real Offline Business?

Where you:

Earn by doing absolutely nothing.
Don’t need to promote.
Have no down-lines to build.
No matrix to fill.
Don’t need a website.
Know who has your money.
Know where they are located.
Can easily contact them by multiple means.
Can visit the business projects in person.
Know how profits are being generated.

What Is This?

This Is not MLM, Gifting, or anything to do with the Internet.

You do NOT have to promote this program to make money.  Your earnings do NOT depend on multitudes of people joining after you.

As a matter of fact, the hardest decision you will need to make is: Who Will You Want To Tell About This Program?  We purposely control the number of people involved so we can guarantee everybody makes money.

You have reached this page at the invitation of one of our current members.

This may be your only opportunity to take advantage of this program.   We rarely promote for new members, except in cases where an exceptional project is in the works.   You may have heard of this organization before, but probably not.

This is a very rare invitation for you to join an exclusive group of individuals who have banded together to create a very profitable business organization.

We have no referral program. If you were referred to this page by an existing member, they will NOT gain financially by you joining.

Who Are We?

We are internet marketers and business professionals who formed their own ‘co-operative’ for the purpose of creating a venture capital pool with the express goal of helping each other create an income.

Be assured that this has NOTHING to do with Internet Marketing.

This very unique partnership program has allowed a small band of entrepreneurs to create a very lucrative development fund from which you can profit.

No member who has participated in this program has ever lost money.  EVER !   I bet any of your existing programs can’t say the same.

You are invited to partner with us today and participate in our future growth.

Please Note: Our membership has been private for well over a year. We are briefly opening up to new members again for a limited time. When our quota is filled, this invitation will be closed once again.

If you interested in joining our group please give me (Alan – one of the members) a shout at the following e-mail address:

opportunity [at] alansmoneyblog.com

Does Energy Efficiency Add Value To Your Home?

green home

Improving the value of your home is important for resale and investment purposes. One of the most beneficial ways to do this is to improve your homes energy efficiency. By doing this you will increase the value of your house, save money, and help to save our precious environment all in one swoop.

Value Added Efficiency

If you are considering making changes to your home before you put it on the market, your best bet is to make it more energy efficient. Most everyone will tell you that conserving energy is important to them, but it is hard to know if it really matters when it comes to making choices about actually purchasing a home. The short answer is that yes, it does. Although an increased awareness of the environment and the need to save energy is part of the reason, it really comes down to the all mighty dollar. Everyone knows that if your house is more efficient you will spend less to heat it, cool it, and keep all your appliances and computers running. That savings is the bigger driver of getting an energy efficient home then the idea of conservation.

We should not ignore the ever increasing conservation awareness either. Ever since the former Vice President Gore released his Inconvenient Truth film there has been a move toward greater conservation and awareness of our energy consumption. From installing more efficient windows and appliances to unplugging items around the house, loads of people have cut back on their energy use and seen the reward in their monthly bill.

General Appeal

But, it was hard to know if that awareness translated when it came to the actual value of your home to a buyer. Now there has been some research done that proves that indeed a more energy efficient home is more appealing to most buyers. In a recent poll more then half the people who were asked said that they energy rating of a home played a big part in their decision to purchase it. Just over ten percent said the energy rating of a home had no affect on their choice. However, people tend to talk a big game when it comes to ecology, but they do not always follow through which is why this needed to be further investigated.

As it turns out there was a study done just a few years ago that took a homes energy rating in terms of stars. one star meant that a home was not at all energy efficient and five stars meant it was very efficient. In this study, improving a homes efficiency rating by just one star increased its’ value by three percent. Broken down into money terms that meant you could spend $1200 to improve the insulation in a $360,000 home and see a return on that investment with an increased sales price of around $8,500. That is a big profit for just a small change in your home. Imagine how much value you could add if you made even bigger changes like installing solar panels or changing out windows and furnaces.

You will probably find that homes with a poor energy rating are not as saleable as they once were. Most buyers will not be inclined to consider a home that they know is going to cost them a fortune to run or that they will have to spend a lot of money on to make more efficient. This is especially true in areas of the country that face extreme heat or extreme cold, in those places buyers want to know they will not have to spend a fortune to keep their home at a comfortable temperature.

Before you consider making any improvements to your home you should look at ways to make it more efficient. Not only will this increase your homes value for resale purposes, but it will save you money right now on your monthly electric and gas bills.

First Home Checklist That Won’t Fail

Choosing your first home is one of the most important investments you will ever make and for that reason alone it is something that needs a lot of thought and planning beforehand. This is the place where you are going to be bringing up your family, where you will be seeking refuge at the end of a busy work day, where you will be entertaining friends and family, and last but not least this is your own little corner of the world where you can relax and do whatever you like.

It’s very easy when you start house hunting to make the assumption that you will just “know” when you find the right house, and that might be true. But a more sensible approach would be to have a first home checklist that you can use to make sure the homes you view meet your essential criteria.

Key points for a good checklist

Size: Nothing could be worse than underestimating the amount of space that you need for yourself and family. Even though your budget might not stretch to the palatial mansion that you might like, it is still important to estimate exactly how much space you need. Don’t overlook that wasted space is a bad investment too; if there’s more room than you want or need, maybe this isn’t the right one.

Planning rates and taxes: Are you buying in the latest upmarket suburb or somewhere more family orientated and residential? The area you select can have a big impact on your future budget in terms of rates or taxes. The more expensive the suburb or land, the more you pay. Find out what the current rates on the property are and the predictions for the area generally. Is the area likely to become more expensive over time as it develops? How will this affect you? Are there any developments planned that could impact on your rates or taxes? Have a survey done so you know exactly what is planned for your new neighbourhood.

Travelling to work: How far is the house from your place of work? Given that you will be travelling each day it’s important to take this into account. Two factors to consider here are cost and distance. How long are you prepared to spend travelling back and forward each day? Is it going to be costly for public transport or parking every day, is there any public transport close by?

Location: Your choice of location can make a big difference to the cost of your home. For some, it’s important to be seen to be living in the “right” area whilst others are more concerned that the house is just right and the area doesn’t matter too much to them. If you want to live in a prestigious suburb this means you will pay for the privilege. However, if you choose to sell you will probably make a profit from your investment. For those who are not fussy about the suburb, keep in mind that if it’s run down or abuts a “bad” area, your house value might not improve too much over time.

Local area facilities: You need to know what is in your area in terms of facilities. What type of entertainment is available? Are there any clubs, theatres, cinemas or community centres where you can go to socialise and relax, where are the nearest medical facilities in case you need a doctor, hospital or dentist?

Parks and play areas: When you have children or pets it’s nice to know there is somewhere you can take them for a walk or to play, when the back garden just isn’t quite big enough and you need a change. Parks and public gardens are nice to visit when you want to experience a bit of nature and fresh air.

Shopping: A necessary part of our everyday lives is doing grocery shopping or filling the car with petrol. So make sure the nearest supermarket or service station isn’t too far away.

Meet the neighbours: Now you might be anti-social and not really care who you live next too. But meeting the neighbours is the best way to get a feel for the neighbourhood and learn about the area generally. Having a good neighbour can be very helpful when you move into a new area, till you find your way round. They might even give you ideas for more things to add to your first home checklist.

Whilst there are many things to take into account when choosing your home the first home checklist above covers the basics and will give you some guidance before making your final choice.