1st way - buy low, sell high
Very simple strategy. Timing is key to success for this strategy. Opportunity for buying low is during recession, when sentiments in job market and economy are low (the lower the better). This is a great time to enter the market 'coz prices will be depressed. Some investors like to buy when prices are "relatively attractive" or "affordable" according to their means. Some investors may choose to buy in only when there's signs of uptrend (so they are buying at the base of the upturn).
So how do we know whether it's the bottom? During the bad times, many will say "it's too risky, it will go lower, let's wait". Do understand that real estate is inherently an illiquid investment, as opposed to the equity market. The periodic charts / graphs / data presented (on a macro scale) will be good indicators of how the real estate market is moving. The stock market chart may show volatility (up 1 day, down the other, up 1 week, down the other) but real estate market data will trend for quite some time before peaking or bottoming (we also won't know exactly how long, that's a question which only the market has an answer to).
Many home buyers like to think that today's prices are "too expensive" relative to last month / last year's price. We will only support such thinking if the broad data shows "all-time highs", otherwise smart buyers should understand that its not only you who is buying at this "higher price". If others are buying around the same price, then it is only natural that the market forces will continue to push the prices even higher because each buyer-turned-seller will continue to ask for higher prices to gain profit, and that is how everyone plays the game (well, at least until the bubble bursts).
2nd way - buy at a discount
Simple strategy but often neglected. So, you may be curious as to where exactly can you find properties at a discount? Most real estate articles will teach you to look for foreclosures (auctions), urgent sales, etc. So, we won't say more about those.
There's another type of property which we believe can be considered as "discounted" - old apartments in worn-out condition. A word of caution - you should be somewhat interested in doing renovation works, talking to designers and contractors if you are interested in trying out this type of discounted properties. And always remember the 3 golden rules of real estate - location, location, location.
In fact, you can also find discounted properties in new condo projects as well. How so? ... stay tuned to our updates and we will tell you more =)
3rd way - buy to lease out
Rental yield (your rental returns on your property purchase) is a fundamental way many people make money from properties. If you are looking into this strategy, may we suggest purchasing 99 year leasehold properties (in a great location) instead of freehold (in the middle of nowhere)? Tenants are willing to fork out higher rental for (1) convenience, (2) comfort. Tenants will not pay you more because your property is a Freehold tenure (even if you had to pay the seller / developer more). Tenants will pay more if your property is near a subway (MRT), or has wonderful facilities, is nicely furnished and lets them hugely enjoy their limited period of stay in Singapore.
We have a list of properties near subway (MRT) which will be updated onto our blog soon. Your can stay updated on our blog via email or you can see the updates on our twitter page and facebook page as well.
Showing posts with label Ways. Show all posts
Showing posts with label Ways. Show all posts
Friday, July 27, 2012
Saturday, July 21, 2012
Ways Of Accounting For Non Profit Organizations
Nonprofit organizations have different accounting needs than businesses that are profit driven. Non profit accounting is based on the principal of fund accounting. The fund accounting is the one that emphasizes accountability for separate funds that are segregated from other funds in the organization. For the fund accounting, this is driven by rules or guidelines specifying that an organization has to account for funds separately that are designated to be used only for certain purposes. For example, donors may donate money to be used specifically for medical equipment, or some other purpose, and the funds in that account can only be used for that purpose and may not be used for administrative salaries or other budget items. Track revenues and expenses for each fund separately and be able to provide reports for each fund is a must for nonprofit organizations. The kind of software that an accounting nonprofit organizations needs is a software that is designed for non profits and allows an organization to track and pull reports for separate funds.
Accounting practices are important for any business. Knowing how much money is coming in and how much money is going out is critical for making decisions about spending. A nonprofit organization often has donors, board members, or other officials who want to know exactly how money is being spent too. Keeping accounting records accurate and up to date can help a nonprofit organization be able to answer questions about expenses accurately. It is important to have an accurate record keeping can also help an organization understand expenditures so that adjustments or reductions can be made to help the organization run more efficiently. For a nonprofit organization, for them to operate, they need donors, grants, fundraisers and other types of charity donations. It is best that an organization is able to accurately account for and show how much money comes in and how much money is spent, it can foster a feeling of trust in the organization that in turn can generate greater donations and support.
A nonprofit operation can benefit with tax exemption status. In order to qualify as tax exempt, an organization will need to meet certain guidelines established by the IRS. Proper tax forms will need to be filed with the IRS for the organization every year. Keeping proper accounting records will make it easier to fill out IRS forms or other forms that need to be filed on a regular basis showing income and expenditures. To show whether or not you continue to qualify for a tax exempt status, there should be a proper recording.
Nonprofit organizations has so much help in their communities by providing services that help to improve individuals and communities. The founders, volunteers, and employees who are dedicated to these special causes often spend many hours and in service to make these organizations viable. But having a passion for the cause is not always enough to keep an organization running. In order to help the organization run successfully and continue to bring in the necessary funds to operate year after year, there should be proper accounting profit should be kept at all times. Finding accounting software that is designed for nonprofit organizations can help non profits successfully keep accurate financial records.
Accounting practices are important for any business. Knowing how much money is coming in and how much money is going out is critical for making decisions about spending. A nonprofit organization often has donors, board members, or other officials who want to know exactly how money is being spent too. Keeping accounting records accurate and up to date can help a nonprofit organization be able to answer questions about expenses accurately. It is important to have an accurate record keeping can also help an organization understand expenditures so that adjustments or reductions can be made to help the organization run more efficiently. For a nonprofit organization, for them to operate, they need donors, grants, fundraisers and other types of charity donations. It is best that an organization is able to accurately account for and show how much money comes in and how much money is spent, it can foster a feeling of trust in the organization that in turn can generate greater donations and support.
A nonprofit operation can benefit with tax exemption status. In order to qualify as tax exempt, an organization will need to meet certain guidelines established by the IRS. Proper tax forms will need to be filed with the IRS for the organization every year. Keeping proper accounting records will make it easier to fill out IRS forms or other forms that need to be filed on a regular basis showing income and expenditures. To show whether or not you continue to qualify for a tax exempt status, there should be a proper recording.
Nonprofit organizations has so much help in their communities by providing services that help to improve individuals and communities. The founders, volunteers, and employees who are dedicated to these special causes often spend many hours and in service to make these organizations viable. But having a passion for the cause is not always enough to keep an organization running. In order to help the organization run successfully and continue to bring in the necessary funds to operate year after year, there should be proper accounting profit should be kept at all times. Finding accounting software that is designed for nonprofit organizations can help non profits successfully keep accurate financial records.
Friday, July 6, 2012
Three Ways Bad Credit Hurts You
You've probably heard that bad credit can ruin your life, and this is totally true. Having credit that is less than stellar is a great way to set yourself up for financial failure in the future. Bad credit can cost you money, and it can even cost you a job. If you haven't thought about changing your credit score, here are three ways that less than great credit can hurt you. All of these are reasons to pay attention to your score so that you can have a better financial life.
First, bad credit costs you money on a daily basis. Many people think that poor credit only costs you when you're getting ready to take out a loan. The truth, though, is that it can keep you from getting the best rates on any loan you take out. This has immediate and long-term ramifications. Immediately, it causes your monthly payments to rise. In the long term, it causes you to pay a whole lot more money in interest to various lenders.
Just think about this with your home. There is a huge difference between 3% and 5% interest on a home loan when you're talking about a 0,000 loan! Over the life of a loan, you could be talking about tens of thousands of dollars of interest payments because your credit score wasn't good enough to get the lower interest rate.
Bad credit can also cost you a job. Credit scores are basically risk assessments done by professionals. The more responsible you are, the less risky you are, and the higher your score. When you have a low score, it means you are probably reckless with your money and are prone to paying bills late. This could mean that you'll be irresponsible in a job, and it could cause potential employers to reject your application.
Finally, a bad credit score can keep you from getting a contract for an apartment or home lease or even a cell phone. When you don't pay your bills on time for the most part, no one is going to trust you to start doing that right now. If you go to apply for an apartment, your potential landlord will most likely check your score. If it's too low, you might be denied, and this could happen with other things including phone contracts and even Internet contracts.
First, bad credit costs you money on a daily basis. Many people think that poor credit only costs you when you're getting ready to take out a loan. The truth, though, is that it can keep you from getting the best rates on any loan you take out. This has immediate and long-term ramifications. Immediately, it causes your monthly payments to rise. In the long term, it causes you to pay a whole lot more money in interest to various lenders.
Just think about this with your home. There is a huge difference between 3% and 5% interest on a home loan when you're talking about a 0,000 loan! Over the life of a loan, you could be talking about tens of thousands of dollars of interest payments because your credit score wasn't good enough to get the lower interest rate.
Bad credit can also cost you a job. Credit scores are basically risk assessments done by professionals. The more responsible you are, the less risky you are, and the higher your score. When you have a low score, it means you are probably reckless with your money and are prone to paying bills late. This could mean that you'll be irresponsible in a job, and it could cause potential employers to reject your application.
Finally, a bad credit score can keep you from getting a contract for an apartment or home lease or even a cell phone. When you don't pay your bills on time for the most part, no one is going to trust you to start doing that right now. If you go to apply for an apartment, your potential landlord will most likely check your score. If it's too low, you might be denied, and this could happen with other things including phone contracts and even Internet contracts.
Thursday, May 31, 2012
Creative Financing - Ten Ways
Do all the creative financing techniques you hear about really work? Yes, actually. They probably have all worked somewhere for someone at least once. The point isn't if they will all work for you. The point is to know what is possible, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking.
1. Hard money lenders. You can ask around or find these online. They specialize in short-term loans at high interest. You typically use this type of financing for a "fix and flip." You can often get the money fast, and if you make ,000 on a project, who cares if you paid ,000 interest in six months.
2. No-doc and low-doc loans. No (or low) documentation of your income or credit required. Again, you can find banks that do these online now. The catch is that you will only be able to borrow up to 80% of the purchase price or property value. If you have 10% in cash, you might be able to borrow the other 10% from a friend or the seller.
3. Seller-carried second mortgages. Sometimes a bank will loan you 90%, and allow the seller to take back a second mortgage from you for 5%, leaving you needing only 5% for a downpayment.
4. Land contract. Called "contract for sale" or other names as well, this just means the seller lets you make payments, and delivers the title upon payment in full. I sold a rental this way for ,000 down, because I wanted the 9% interest, and the higher price I got this way.
5. Credit cards. If a seller will take ,000 down on a fixer-upper that you expect to make ,000 on, why not use credit cards? This is a true 0-down deal for you, and if you turn the project in six months, you will have paid 0 in interest on an 18% credit card. Don't let 0 get in the way of making ,000.
6. Retirement accounts. The laws get pretty complex in this area, but you can check with a tax attorney to see how you might borrow from your own retirement account to finance real estate investments.
7. Friends and family. Keep it all business, if you use this source, but loaning you money at 7% isn't a gift if their money is getting 2% in the bank.
8. Note buyers. The seller needs cash. He raises the price, and sells to you for 0,000 with no money down, taking back two mortgages from you for ,000 and ,000. He arranged (or you did) for a note buyer to pay him ,000 cash for the first mortgage at closing, getting him the cash he wanted. You pay two payments now, one to each note holder.
9. Get a loan on other property. Interestingly, if you take out a home equity loan for a vacation, and then forget to use it for that, you can use it for the downpayment on an investment property, without violating the rules of the bank that gives you the primary mortgage. In other words, you got in with no cash of your own.
10. Partnerships. For bigger projects, you could arrange for five investors to each put money into a partnership, with your share being the management responsibility instead of cash.
1. Hard money lenders. You can ask around or find these online. They specialize in short-term loans at high interest. You typically use this type of financing for a "fix and flip." You can often get the money fast, and if you make ,000 on a project, who cares if you paid ,000 interest in six months.
2. No-doc and low-doc loans. No (or low) documentation of your income or credit required. Again, you can find banks that do these online now. The catch is that you will only be able to borrow up to 80% of the purchase price or property value. If you have 10% in cash, you might be able to borrow the other 10% from a friend or the seller.
3. Seller-carried second mortgages. Sometimes a bank will loan you 90%, and allow the seller to take back a second mortgage from you for 5%, leaving you needing only 5% for a downpayment.
4. Land contract. Called "contract for sale" or other names as well, this just means the seller lets you make payments, and delivers the title upon payment in full. I sold a rental this way for ,000 down, because I wanted the 9% interest, and the higher price I got this way.
5. Credit cards. If a seller will take ,000 down on a fixer-upper that you expect to make ,000 on, why not use credit cards? This is a true 0-down deal for you, and if you turn the project in six months, you will have paid 0 in interest on an 18% credit card. Don't let 0 get in the way of making ,000.
6. Retirement accounts. The laws get pretty complex in this area, but you can check with a tax attorney to see how you might borrow from your own retirement account to finance real estate investments.
7. Friends and family. Keep it all business, if you use this source, but loaning you money at 7% isn't a gift if their money is getting 2% in the bank.
8. Note buyers. The seller needs cash. He raises the price, and sells to you for 0,000 with no money down, taking back two mortgages from you for ,000 and ,000. He arranged (or you did) for a note buyer to pay him ,000 cash for the first mortgage at closing, getting him the cash he wanted. You pay two payments now, one to each note holder.
9. Get a loan on other property. Interestingly, if you take out a home equity loan for a vacation, and then forget to use it for that, you can use it for the downpayment on an investment property, without violating the rules of the bank that gives you the primary mortgage. In other words, you got in with no cash of your own.
10. Partnerships. For bigger projects, you could arrange for five investors to each put money into a partnership, with your share being the management responsibility instead of cash.
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