Karen Aho, a writer for MSN Money, explains that people should watch out for companies selling high-priced collector coins. Some of these companies make false claims, such as “the government can’t confiscate collector coins” to influence you to buy their coins.
Log on to the U.S. Treasury Direct website, click the “Individuals” link to open an account and buy short term debt directly from the U.S. government. T-Bills can be purchased in a number of different maturities.
Buying and selling real estate is a risk – make no mistake, and it is a very LARGE risk at that. Part of the problem with the real estate market today is because [mostly novice] “real estate investors” rushed to cash in on rapidly escalating prices of real estate. Econ 101 – supply and demand. They bought recklessly, not intelligently, and now find themselves stuck with properties (whose values are resetting just as quickly) that they can’t unload. You must be aware at all times that any purchase you make, you must be prepared to hold if necessary. This is investing 101. Pay attention to the market.
Winging it – almost every real estate course on available advises wannabe investors to fake it until you make it and just jump into action with no plan at all. That’s a big mistake that could cost your livelihood, reputation and bank account in a hurry, depending on how big your screw up is. Take at least an hour or two and jot down what exactly you want to see happen (yes, I’m talking about setting realistic goals here) and how you plan to make it happen. Bottom line, plan your work and work your plan.
Look for something that is priced below its actual value and buy it. Easier said than done, especially if you’re just starting out. The good news is that you can do most of your research on the internet. Read the companies annual reports, their goals, mission statements, etc. . They usually post these on their websites.
Mutual funds are dead! Exchange traded funds (ETFs) are the way to go. They are low cost, marginable, can be traded intraday, give broad diversity of holdings, allow for stop loss orders, cover just about any stock, bond or commodity market and put and call options can be purchased or sold against the ETF position.
Real Estate Agent- A good agent will know what is on the market, and should be able to quickly determine what a good ARV (After Repair Value) for a given property will be. This agent will also know how to price the property to maximize return. That doesn’t always mean maximum price, those closing costs can add up, and if one’s capital is tied up, one can’t move to the next project.
Of course the amount of cash flow you generate from a multi-unit investment property will far exceed that of a single-dwelling property. The potential for returns is much higher, as is the realization of profits.