How To Start Investing For Financial Independence, Part 1

Today, I am going to start a multi-part series about how to go from being a beginning investor to being "financially independent" in a steady and predictable way. At our website, we get tons of e-mails about how do I start, how do I start with little $ 's, etc., etc., etc. If you are asking this question, congratulations because you are ahead of most. All of us have been there at some point.

I must warn you …. What I am about to share here for free is what "gurus" across the nation charge thousands of dollars for in weekend seminars. The "secrets" disclosed are going to seem pretty simple because quite frankly, there are no secrets. The methods used here have been done for centuries and there is no real reason to complicate them. Let's apply these principles to see how fast someone might become financially independent without betting the farm.

Realize that everyone has wildly different starting points and different financial goals. For this series of articles, we assume that an individual has access to at least $ 15,000 liquid capital (or home equity) to start, is at least breaking even with their current income income expenses, and has decent credit to obtain financing. Note there yet? …. See the footnote below.

To start, what you need is to make your money grow while keeping your current income stream, and current expense level in place. I can not say this more plainly ….. To change your current financial path, you have to us your money and your time to grow additional income streams that increase wealth. There is many ways to do this but we are going to use investing in real estate as an example.

Now for beginners, here is the really bad news …… As an investor, you reap rewards by placing your money in HARMS WAY. You do everything in your power to minimize your risk but bottom line is that real investors make money by taking CONTROLLED risks. As investors get better, they learn how to make fantastic investment returns doing things that all their friends and relatives thing is crazy ….. However, they know exactly what risks are small in comparison to the potential Rewards.

One reason people really like real estate investing is leaseage; Ie, you can purchase an expensive property using 0-20% of your own money while financing the rest. So if you put 10% down for example, and then the property goes up by 20%, you have made a 200% return (ignoring expenses, taxes, etc. for simplicity). Of course this works in reverse … If the property drops by 20%, you have lost not only your original investment but have to come up with another 10% as well ….. Ouch!

For someone beginning, here is what I would suggest:
1) Look for an opportunity that will return at least 150% in 2 yrs or less;

2) Be mentally and financially prepared if the investment does not work out;

3) Have VERY good reasons why you do not think you will lose money …… You may not make as much as expected but you would rather not lose money at this stage.

4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan.

In our Mastermind Group, we are bringing out a land project (see related article Land Investing that appears to meet these criteria (each investor has to decide for themselves.) So let's say the purchase price is $ 150,000, with 10% down and another $ 3,500 In closing costs. With good credit, then the financing obtained would make the land payments for 2 years while waiting for growth.

Now let's say after you did your analysis, looked at what had happened in the past, looked at why you thought more and more people would want this property, etc., you decide that you think this property will average 20% / Yr escalation over The next 2 years. MORE IMPORTANTLY, you decide that barring a major meltdown in the market, you think there is little chance that you can not at least break even after 2 years.

So if you end up being right about the growth, then you might net a tidy $ 43,000 (before taxes) or so after everything is considered. After long term capital gains at 15% let's say, then you just picked up about $ 36,000 of the "market's money". That is money that if you take a loss on the next investment will not be nearly as painful as if you lost your original money. When you combine this with your original investment amount, you now have around $ 55,000 of operating capital for step 2.

Realistically, you can not predict how much you will make from the investment. When I invest, I try to establish in my mind what is reasonable. Frequently, I have been surprised to the positive and made much more than expected. Sometimes I have made less. The key being put to yourself in a low risk situation where you have a strong reason to believe the market will go in your favor.

To accomplish this first step, let's look at what you really had to do:

1) Had to be willing to put $$ in harm's way;

2) Had to educate yourself enough to evaluate the risk and the opportunity;

3) Had to find the opportunity or be in a position to have the opportunity presented to them;

4) Had to act.

I would like to comment on the education side. As a former professor, I have seen very smart people spend 1,000's of hours and 10,000's of thousands of dollars educating themselves to "earn a living"; This is a great move in many cases. On the other side, I have seen very smart people who want investing to be a major source of income but will not spend any time or any money educating themselves.

To me, this is a recipe for disaster. By the time we finish this series, you will see that with a few simple steps, implemented over time, many people can easily produce more money than their regular job. Tomorrowmore, many people will put 100's of thousands of dollars at risk but know almost nothing about what they are doing. If you chose the path of making your investment dollars grow steadily with time, I hope this does not end up describing you.

** Footnote: If you are not yet at that level, here is what I suggest. First, read Michael Masterson's book called "Automatic Wealth". This is an excellent book on how to quickly change your financial position while staying employed. Next, I would read Van Tharp's new book called "Safe Paths To Financial Freedom". Van uses a very different thought process from many and so adds a great deal of rounding. Like anything else, you will not agree with everything written in these books but they provide some great thought processes. When you have some capital and are cash flow positive, they come back and revisit this article.

Why You Need Title Insurance

Protecting your Home Investment

A home is usually the largest single investment any of us will ever make. When you purchase a home, you will purchase several types of insurance coverage to protect your home and personal property. Homeowner's insurance protects against loss from fire, theft, or wind damage. Flood insurance protects against rising water. And a unique coverage known as title insurance protects against hidden title hazards that may threaten your financial investment in your home.

Protecting Your Largest Single Investment

Title insurance is not as well understood as other types of home insurance, but it is just as important. You see, when purchasing a home, instead of purchasing the actual building or land, you are really purchasing the title to the property – the right to occupy and use the space. That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. Title insurance protects against these types of title hazards.

Other types of insurance that protect your home focus on possible future events and charge an annual premium. On the other hand, title insurance protects against loss from hazards and defects that already exists in the title and is purchased with a one-time premium.

Two Kinds of Title Insurance Benefit You in Two Ways

There are two basic types of title insurance:

  • Lender or mortgagee protection,
  • Owner's coverage.

Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection. When title insurance is provided, lenders are willing to make mortgage money available in distant locales where they know little about the market.

Owner's title insurance lasts as long as you, the policyholder – or your heirs – has an interest in the insured property. This may even be after you have sold the property.

Depending on local practices and state law where the property is located, you may pay an additional premium for an owner's policy or you may pay a simultaneous issue charge – usually a smaller amount – for the separate lender coverage. You may even split settlement costs with the seller for the lender or owner's policy.

What does Your Premium Really Pay For?

An important part of title insurance is its emphasis on risk elimination before insuring. This gives you, as the policyholder, the best possible chance for avoiding title claim and loss.

Title insuring begins with a search of public land records affecting the real estate concerned. An examination is conducted by the title agent or attorney on behalf of its underwriter to determine whether the property is insurable. The examination of evidence from a search is intended to fully report all "material objections" to the title. Frequently, documents that do not clear transfer title are found in the "chain," or history that is assembled from the records in a search. Here are some examples of documents that can present concerns:

  • Deeds, wills and trusts that contain improper word or incorrect names;
  • Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes;
  • Easements that allow construction of a road or utility line;
  • Pending legal action against the property that could affect a purchaser; Egypt
  • Incorrect notary acknowledgments.

Through the search and the examination, title problems are disclosed so they can be corrected whenever possible. However, even the most careful preventive work can not locate all hidden title hazards.

Hidden Title Hazards – Your Last Defense

In spite of all the expertise and dedication that go into a title search and examination, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises. Some examples of hazards include:

  • A forged signature on the deed, which would mean no transfer of ownership to you;
  • An unknown heir of a previous owner who is claiming ownership of the property;
  • Instruments executed under an expired or a fabricated power of attorney; Egypt
  • Mistakes in the public records.

Title insurance offers financial protection against these and other covered title hazards. The title insurer will pay for defending against an attack on title as insured, and will either perfect the title or pay valid claims. All for a one-time charge at closing.

Your home is your most important investment. Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner's title insurance policy.

Avail Digital Marketing Services To Transform Your Business

A strong marketing strategy is not a choice, but it has become a necessity for every business be it a startup, medium-sized company or large organization. Every business is struggling to keep up with promptly evolving customer behavior. A personalized marketing strategy can help a business to know what customers wish for.

When implemented in a right manner, a marketing strategy can show noticeable results in the context of ROI, traffic and online visibility. However, achieving desired results is not so easy. In order to get the most out of it, the marketers should go on board on a range of digital marketing services to transform the way they promote their businesses.

A successful digital marketing campaign includes professional strategies, structures, and top-notch technologies, along with professional experience. The experts utilize cutting-edge digital marketing techniques to drive bottom-line development of a business. If you run an online business and would like to grow by leaps and bounds, it is the time to hire a digital marketing expert. If you are still confused, here are some reasons why you need an effective digital marketing strategy for your business -

Get a direction

Many businesses don’t have a clear motto and aim. They don’t know what they want to achieve exactly. The experts set the goals keeping in your mind your expectations and utilize the best methods to achieve them for you. The marketers start the work by outlining the business goals. Planning, execution and management, etc. all the responsibilities are carried out by the professionals.

Know your market share

In order to satisfy demands of the customers, it is essential that you know your market share. The experts analyze customer’s behavior, buying tendencies, competitors and many more things to let you know where you exists the market. Social media marketing is one of the advanced and useful digital marketing techniques that allow a business to know the customers. The experts increase engagement with customers by making a strong and dynamic presence of clients over social media.

To be in competition

Online marketing is not a one time job, it is an ongoing process. If you are not utilizing avant-garde digital services, your competitors will move ahead to you. Every day, many companies are launched over the internet with a common goal to achieve success and increase profit. Without proficient marketing plans, it is not possible to survive in the competition. Having a professional digital marketing partner may enable you to lead the battle. Don’t give up if a marketing plan is not offering quick results, be patience and wait for productive results.

To build loyalty online

Gaining confidence of your clients is not an easy thing to do, it requires constant efforts. By utilizing right kinds of marketing services, you can build and maintain trust and loyalty among clients about your brand. The marketers know how to make the clients remember you with online reputation management and branding. Blogging, content marketing and social media activities, etc. can help you to build loyalty among target audiences.

Know your customers

A successful marketer always understands the mind-set, needs and expectations of the clients. If you don’t how what your clients very well, it is time to invest in an effective marketing campaign. The experts evaluate the clients, identify weakness and address them to nurture your business.

Go beyond the boundaries

With traditional marketing techniques, you can grow, but can’t reach the edge. Digital marketing services allow you to go beyond all the boundaries. By investing in SEO, social media marketing and PPC, etc. you can enlarge your reach to your potential customers.

Encourage customer engagement

Professional digital marketers understand the worth of customer engagement for the growth and popularity of your business and they encourage it using various tactics. They segment the customers according to your interest and allow you to interact with them.

In order to accomplish your goal, opt for a right digital marketing company that can carry out the jobs in an efficient manner keeping in mind your business nature, target audiences and specific objectives. Choose a reliable company that is engaged in offering top-notch digital marketing services according to the latest trends.

Top 6 Trends Followed by the E-Commerce Website Design Company

An e-commerce web design has its own unique character and is indeed designed to lead the online shoppers to make purchases from the site. When a business designs an e-commerce website, it needs to consider the chief principles of designing e-commerce website. An e-commerce website has to be attractive and must use the right color combination. Only a well-organized website can help you convert. The best e-commerce website design company follows the latest trends in e-commerce website designing.

If you are looking to have an online store or redesign the site, you must choose only an e-commerce website design company which follows the latest trends in web designing. Let us check out the latest 6 trends.

· Bigger background to redesign your site: When it comes to designing the website, companies are looking to incorporate video backgrounds and large images. If the background is large, the company can convey the story of the business and talk about the products and services in details. The more convincing the story sounds; the more chance of conversion is there. Buyers will be attracted towards the products and end up making purchases.

· The use of animations to engage the customers: If you want to engage the customers in the best possible manner, it is great to use attractive animations. A reliable and experienced company will use rich animations into the design to make the shopping experience enjoyable. It is only animations that can make your customers feel that you care for them.

· Cleaning off clutter: Nowadays, when it comes to creating an e-commerce website, the more focus is upon having a clean design. Among the designers, the hidden menus are extremely popular. It helps in cleaning clutter from the site and this is why it is so popular. Initially meant only for the mobile devices, now hidden menus have established their presence in the desktop design as well.

· Long scrolls: Now everyone is used to long scrolling web pages. This is all due to the coming up of mobile friendly websites. If the website features long scrolling, it will allow more of visuals, storytelling and also permit easy navigation. If the scrolling is permissible, the users will like to stay to the site for longer periods. This will promote interaction and open the door for more sales.

· The layout is responsive: More and more web designers focus on creating responsive websites featuring a responsive website design. The design of the site must be such that it is displayed well on the mobile device or any other device. Your site must be accessible from multiple devices.

· Pleasant browsing experience: Ecommerce web design companies in India focus on giving your users a pleasant browsing experience. Thus, they can shop comfortably without any delay in page loading. Professional designers include only relevant content and thus help your brand establish trust relationship with the customers.

If the e-commerce website design company follows all the latest trends in e-commerce website designing, your site is sure to succeed and gain an edge over the competitors.