Showing posts with label term. Show all posts
Showing posts with label term. Show all posts

Tuesday, September 15, 2015

How to Make Money in Real Estate Using Sandwich Lease Options


Identify attractive properties in nice, stable neighborhoods that are likely to appreciate in value over the next few years. Hire an attorney to write a lease option that is legally sufficient and enforceable. The option is only binding on the optionor (the homeowner) and must state the term of the contract, the future sales price and the amount of the nonrefundable option deposit. Locate future possible tenants.
Rent a property with an option to buy. A long-term lease of one to five years has more potential for profit. Make sure if you decide to exercise the option that you can purchase the property anytime during the term of the contract, and that the option deposit is applied to a future down payment. Make it clear to the landlord that you intend to sublease the property.
Find a tenant who also wants to rent with an option to buy. This sublease term can't be longer than your lease term. Ideally, the tenant will be able to obtain a mortgage loan before the option to buy expires, so check her credit report to make sure that is possible. Your tenant's option deposit, monthly rent and future purchase price must all be higher than what you're paying in order to maximize your potential profit.
Collect your profits. If your tenant decides to buy, then you exercise your option with an earlier closing date than the tenant's closing. In this case you've made money on the monthly rent and the purchase price. If the tenant decides not to buy, you've made money on the monthly rent and the nonrefundable option deposit, and you can let your own option expire, renew it and repeat the scenario with another tenant, buy the property or walk away. Any way you do it, you've made a profit.
VPS Hosting

Saturday, September 12, 2015

How to Get Free Money from the Government (5 Steps)


Get an idea. The government does not just give out money for free. There has to be a good reason. The idea has to meat a need or fit a niche that is lacking. A business example would be a grocery store where there isn't already one. A research example would be cancer research because there is a need.
Make a plan. Exactly what is the long term goal? How long will it take to achieve? How much money do you need? Establish logistical procedures for executing you plan. The government wants to feel like they are a part of the process so that they can feel comfortable in giving out the money for free.
Establish credibility. They are not going to give anyone money no matter how good the idea if they lack credibility. Don't compare yourself to others; rather determine why exactly you are qualified to execute this venture. If lack credibility the government will not give you the money for free.
Submit a formal request. You will have to find out exactly what the process is for getting the money for free based on the type of proposal you submit. No matter what the case, you will have a wait ahead of you while all of your paperwork is reviewed and carefully considered.
If you are denied, you can always resubmit. Try to find out what other people did that worked and tweak your plan a bit so that you will hopefully be approved the next time.
VPS Hosting

Friday, September 4, 2015

How to Make a Million Dollars in the Stock Market


Open an IRA or account that allows money to grow pre-tax. The government wants its people to be wealthy, which is why they've allowed people to open investment vehicles like IRAs that don't get taxed until you retire. If you own your own business, there are other versions of IRAs, which allow you invest even more money each year than if you are an individual.
Start early and invest often. The biggest proponent on your side is time. The longer you invest, the more money you will make. At about a 7 percent interest rate your money doubles every 10 years. Now, of course there are some years where you earn 12 percent on your money and others where you squeak out 2 percent. But it's all about the long-term picture.
Accumulate $75,000 by the time you are 28 years old. Following our example of money doubling every 10 years, this will give you about $1.2 million by the time you are 68 years old. Throw in whatever pension or 401(k) plan you accumulated during your working years, the average person would easily be able to retire in their mid-fifties. So the simple goal is to put aside $7,500 per year, or $625 per month or $20 per day. (Note that at current IRA limitations, you would have to open a separate brokerage account for $2,500 of the $7,500.)
Invest in the S and P index. Every money manager on Wall Street tries to beat the S and P. The S and P is an index that represents the broadest breath of the stock market and holds 500 of the top companies found in the US and abroad. So if the economy is flying, the S and P may earn 15 percent in a year. If we are in weak economic times, then it may only earn 3 percent. But since 1871, the S and P has returned an average of 9.4 percent (ahead of previously discussed projections.) And if you move forward in history that number gets as high as 13.4 percent per year from 1980 through 2005. (Which includes the dot-com bubble.)
Leave your money alone. Unless catastrophic events occur, the moral of the story is buy and hold. That's not to say that you should have some other money on the side that you invest more aggressively. But keep your original nugget of cash working on the side. Follow these steps and you'll easily make a million dollars in the stock market.
VPS Hosting