401K and Real Estate Investing - A Simple Wealth Strategy

Here?s a simple wealth strategy you can easily implement by using your IRA or 401K and real estate investing.

Step One- Roll your funds into a self-directed IRA (Individual Retirement Account)

The first thing you need to do in order to combine your IRA or 401K and real estate investing is to roll your available funds over into a self-directed IRA. This is nothing more than a regular IRA account administrated by a company that allows you to determine specifically how and where the money is invested.

A Self-directed IRA, also known as a Checkbook IRA, allows your funds to be placed into a checking account, giving you far more flexibility and ?liquidity? than with typical retirement accounts. You can then use the funds by simply writing a check, combining your IRA or 401K and real estate investing.

There are several sources and providers of self directed IRA accounts. Use online search resources for assistance in locating them. One such company, highly respected for combining your IRA 401K and real estate investing, is Equity Trust Company.

Step Two- Determine your investing criteria

Before you start using your IRA or 401K and real estate investing together, it?s important to think through your investing criteria. What kind of real estate investor do you want to be? Do you have the temperament and financial resources to hold and rent property, or are you better suited to quick-turn real estate? Does rehabbing suit you, or are pretty houses more in keeping with your skills and abilities?

These are vitally important questions, and the time to ask and answer them is before you start using your IRA or 401K and real estate investing.

There are lots of online resources for helping you make these kinds of decisions. I?ve written another article that can help you determine which type of investing is right for you. You can find it at Best Income Opportunities.

Once you?ve determined the type of investing you?re suited for, you?ll know what types of properties fit that criteria, and you?ll be ready to start using your IRA or 401K and real estate investing.

Step Three- Locate a property that fits your investing criteria

Now is the time to hunt for properties that fit the investing criteria you?ve established for yourself. When you?re just beginning real estate investing. I would stick to single family homes and small multi-units (1-5 units). Leave the larger apartments and commercial properties until after you?ve gotten your feet wet in IRA / 401K and real estate investing.

Find and work with a good Realtor who can help you locate properties that work for you. Look for value in your real estate investing? in other words, buy for well under retail. Buying value is the secret to success in this business, and builds instant equity.

Step Four ? Let your Account Administrator walk you through the first few transactions

The companies that administrate self directed IRA accounts know their business well. They have a vested interest in helping you succeed with IRA or 401k and real estate investing. Make use of their expertise and let them hold your hand through the first few purchases you make. They will help you avoid landmines you would never see otherwise.

You will need to follow the specific rules for IRA or 401K and real estate investing, and one of those rule is that all monies paid related to your property must come from the self-directed account. That means that every expense, no matter how small, must be written out of your self-directed IRA checkbook. Also, the property must be bought, sold, and held under the self-directed IRA.

You can see from these two examples that the rules can be complicated, although not so complicated that you should let it stop you from investigating this exciting and lucrative investing niche. After all, by combining your IRA or 401K and real estate investing, you can watch your nest egg grow exponentially, while avoiding the tax man?s big bite.

That?s it? four simple steps to building wealth using the incredibly powerful combination of your IRA or 401K and real estate investing. As it says on the shampoo bottle in your tub? lather, rinse, repeat!

Now, go make more offers!

Small Business Ownership and Whole Business Accommodations

Self-employment is never easy, and there are increased challenges when the business owner has disabilities. Business owners with disabilities need to find ways to operate their businesses successful in a competitive environment.
Small Business Ownership and Whole Business Accommodations; By Alice Weiss Doyel; BOLD Consulting Group, LLC

This article contains excerpts from No More Job Interviews! Self-Employment Strategies for People with Disabilities, by Alice Weiss Doyel (2000). Used with permission of the publisher, Training Resource Network, Inc.

Even when the economy was strong, three-fourths of the people with moderate to severe disabilities remained unemployed. Not surprisingly, many people with disabilities see small business ownership as their chance for economic self-sufficiency.

Self-employment is never easy, and there are increased challenges when the business owner has disabilities. Business owners with disabilities need to find ways to operate their businesses successful in a competitive environment. A few years ago I saw my own disabilities become more severe. I knew that I needed to find ways to run my company more effectively. My years of experience as a small business consultant helped me develop the concept of Whole Business Accommodations. I realized that as business owners with disabilities, we must create workplace accommodations which take into consideration the success of our entire business.

Whole Business Accommodations permeate the full scope of the business.

* Operations planning should include accommodations for the owner’s disabilities. These accommodations are not just for the physical attributes of the office, e.g., access, furniture, equipment. These accommodations should take into consideration the people who will be part of the business, or closely associated with it. Whether they are business partners, associates, employees, vendors, family members or support providers, these people are an integral part of making the business work. Their roles in supporting the business owner with disabilities must be integrated into their business functions through the business planning process.

* Marketing capabilities are often affected by the owners disabilities. Determining potentially effective marketing approaches during business planning will allow the company to test and determine the best ways to reach and sell to customers. Some people with disabilities believe that an Internet website is the answer to their marketing challenges. However, the Internet should almost always be used as a secondary marketing approach. There must be direct marketing either by the owner with disabilities, by other company owners or employees, or by sales representatives in order to create a successful marketing effort. * Financial planning is a challenge for business owners with disabilities. Many people with disabilities have few assets of value to help secure a business loan. They may have lived for years in poverty, unable to establish a sound credit record. They may have poor credit due to an unexpected health emergency or accident that created large medical expenses at the same time that they were no longer able to work. Micro-loan programs are a resource for small business owners with disabilities who have viable business plans for start up or existing businesses. These programs will take into consideration disability-related financial limitations and credit problems. Some Whole Business Accommodations are free while others may be quite expensive. All accommodations must meet the same financial test as any other business expense: 1. Can the Whole Business Accommodation be paid for? 2. Is this an effective use of limited company funds? The following are specific examples of Whole Business Accommodations which are consistent with best business practices:

* Creating an accessible office. Many accessibility methods are free or inexpensive, e.g., arranging office furniture and equipment for the greatest ease of use, telephones with easy to read displays and/or large keys, speakerphones or head sets, open storage shelving for easy access, keyboard and mouse that fits the owners physical needs, free Microsoft accessibility utilities, and tables and desks with comfortable wheelchair access. Good office design saves time and energy that the business owner can put into the business. * Including alternative means of transportation in the business plan, e.g., hiring a part-time driver, finding volunteer drivers such as family members or friends, determining effective methods for using public transportation and/or taxi services, and teleconferencing instead of in-person meetings. Business owners with disabilities can host meetings in their own offices, minimizing the need for transportation.

* Using company business policies that protect business owners with disabilities from working in a manner adverse to their health. Developing these policies requires the owner to evaluate and determine the most effective means of running the business. This analysis leads to more effective and profitable management of the entire company.

* Creating a positive, supportive work culture for the business. This includes a culture that values everyones abilities and supports the concept that disabilities do not decrease a persons humanity or value . . . that for many people, the challenges from their disabilities are a means for personal growth. This work culture will be a positive environment for all employees who share these values.

* Hiring a full-time or part-time employee who does work that is difficult or not possible for the business owner. This is a common practice in all businesses; however, here the focus is on assisting in the area of the business owners disabilities. The same employee can serve other functions for the business, bringing more capabilities to the company.

* Partners are often used to create a company where the owners have complementary business or technical skills. Business owners with disabilities can find partners with the skills, time, or energy to compensate for their disability needs.

* Creating alliances with other companies is often an excellent strategy for business owners with disabilities. It allows them to provide a variety of services or products through their alliance partners, while limiting the size of their business and the number of employees they manage. In summary, business owners with disabilities report a wide range of positive experiences when they use Whole Business Accommodations to run their companies more effectively. Whole Business Accommodations are powerful tools for success in business and for success in living a complete and satisfying life.

About the Author

Alice Doyel is the founder of BOLD Consulting Group: where she heads the consulting practice specializing in operations management for small businesses. Also, she is a national speaker, consultant, and advocate on self-employment for people with disabilities. Alice wrote the book, No More Job Interviews! Self-Employment Strategies for People with Disabilities.

Real Estate Investing: Hard Money Loans

People sometimes need more money than they had anticipated while dealing in real estate and that is when hard money lenders are needed the most. Hard moneylenders are private moneylenders who lend money for short terms with low loan to values and strict repayment schedules.

This type of a loan is called hard money loan because of its strict terms, higher than market interest rates and they usually take between 3 to 10 points as upfront fees. Hard moneylenders give investors access to asset-based capital, where the loan is secured by adequate collateral. The interest rate varies between 14% to 18% interest only annually and the loan term is usually 6 to 12 months.

Criterion to Secure Hard Money Loans:

The lenders look at the collateral, they need proofs, such as, tax returns and bank statements, and they make appraisals and inspect the property before granting the loan. The hard money lenders will study the investment intent, the exit strategy adopted, the property information provided such as the kind of property commercial or residential, and check the credit profile of the borrower, his financial strengths etc. the fee they charge depends on the risk factor and the nature of the deal. They will also study how the investor plans to use the borrowed money, so the investor has to present them with a good business plan in order to convince them they are low risk investments.

The terms and conditions vary from lender to lender and it is essential for an investor to find and maintain good relationship with a reputed hard moneylender in his area. Hard money loans are useful while purchasing or procuring a property or if a buyer lacks finances but has a good sizeable fixed income, then the seller would like to recommend a hard moneylender of repute to finance the buyer.

Hard moneylenders can be choosy as to which area of real estate investing such as purchasing a house, rehabbing a house, lease purchase options etc. they will lend money to. Investors have to understand the importance of maintaining good relationship with the hard moneylenders, as hard money loans will be essential for investing in real estate. It would be too hard to lose a great deal because you lacked the finances, with hard moneylender?s support that can never happen to an earnest investor. Some hard moneylenders give a pre-qualification letter that will help close deals faster as your assuring the other party that you can finance the deal.

Investors go for hard money loans as they are approved faster, making it possible to close deals faster too, unlike a conventional bank loan. The investor has to make sure to see how strict the pre-payment penalties are.

There are firms that offer their services and products to run businesses efficiently and hassle free.

Virtual Business Ownership - - Marketing The Best You

When you think of the word “marketing”, most people automatically associate the term with a business, however, in this article it will be associated with you, the virtual business owner.

Now picture this, Zipgirl is attending a network gathering and someone walks up to her and says “Hi there, my name is ABC and I represent XYZ company” Zipgirl responds, pleased to meet you, my name is Zipgirl and I work from home. Well, ABC simply nodded and walked away. Would you have done the same as ABC? Did Zipgirl say enough to attract your attention or enough to make you want to stay and listen? I think we both agree in a resounding NO.

To often times when we are asked who we are and what we do, we short change ourselves by not marketing the best in ourselves. How can I do it better you ask? Below are some questions that will help you to identify your marketing strengths as well as your challenges:

- Can you describe your personality in just five words?
- Are you totally committed as well as passionate about what you do?
- Are you always optimistic about what you do in spite of the challenges you face?
- Are you happy doing what you do?
- What’s unique about your service or product?
- What type of energy do you release when you talk about your business? Do you leave people fascinated and wanting to learn more or bored and uninterested?
- When out promoting your business, what does your outward appearance say about you? Do you walk with your head down? Do stay cooped in the corner of the room or are you out in the crowd taking charge, meeting people with a smile, standing tall and bringing out the best in those you meet?

Next, I’ll share with you some tips on how to market the best in you:

- Always present a pleasant smile, whether on the telephone, in person, in email or even in a fax (SMILE)
- Do what you love (you’ll be more fulfilled)
- Dont try to be the jack-of-all-trades (you do everything and anything) rather, specialize (promote the one thing or area you do best)
- Be unique (original)
- Always be professional
- Always be yourself
- Always express a sense of passion in what it is you do
- Always explore ways to enhance yourself (personally, professionally, and/or spiritually)

As you can see, marketing the best you is more than just selling or promoting your business and it’s products or services. As a business owner, you are in most cases the business (when people meet you, they are immediately exposed to the quality of your service or product). In the virtual world however, people won’t necessarily meet you face-to-face but they too are exposed to the quality of your service or product. How? Through your website, telephone conversation, and/or via email responses.

In closing, remember this, first impressions are everlasting, so when given the opportunity always remember to market the best in You…

To learn more about the Virtual Business Owners Initiative go to: www.vsscyberoffice.com.

Now picture this, Zipgirl is attending a network gathering and someone walks up to her and says “Hi there, my name is ABC and I represent XYZ company” Zipgirl responds, pleased to meet you, my name is Zipgirl and I work from home. Well, ABC simply nodded and walked away. Would you have done the same as ABC? Did Zipgirl say enough to attract your attention or enough to make you want to stay and listen? I think we both agree in a resounding NO.

To often times when we are asked who we are and what we do, we short change ourselves by not marketing the best in ourselves. How can I do it better you ask? Below are some questions that will help you to identify your marketing strengths as well as your challenges:

- Can you describe your personality in just five words?
- Are you totally committed as well as passionate about what you do?
- Are you always optimistic about what you do in spite of the challenges you face?
- Are you happy doing what you do?
- What’s unique about your service or product?
- What type of energy do you release when you talk about your business? Do you leave people fascinated and wanting to learn more or bored and uninterested?
- When out promoting your business, what does your outward appearance say about you? Do you walk with your head down? Do stay cooped in the corner of the room or are you out in the crowd taking charge, meeting people with a smile, standing tall and bringing out the best in those you meet?

Next, I’ll share with you some tips on how to market the best in you:

- Always present a pleasant smile, whether on the telephone, in person, in email or even in a fax (SMILE)
- Do what you love (you’ll be more fulfilled)
- Dont try to be the jack-of-all-trades (you do everything and anything) rather, specialize (promote the one thing or area you do best)
- Be unique (original)
- Always be professional
- Always be yourself
- Always express a sense of passion in what it is you do
- Always explore ways to enhance yourself (personally, professionally, and/or spiritually)

As you can see, marketing the best you is more than just selling or promoting your business and it’s products or services. As a business owner, you are in most cases the business (when people meet you, they are immediately exposed to the quality of your service or product). In the virtual world however, people won’t necessarily meet you face-to-face but they too are exposed to the quality of your service or product. How? Through your website, telephone conversation, and/or via email responses.

In closing, remember this, first impressions are everlasting, so when given the opportunity always remember to market the best in You…

To learn more about the Virtual Business Owners Initiative go to: www.vsscyberoffice.com.

ABOUT THE AUTHOR

Real Estate Investing By The Numbers

Just like most things real estate investing can be broken down into easy to learn step.

Just like most things real estate investing can be broken down into easy to learn step.

Step One - Learn the basics:

Ownership of real estate is evidenced by a valid deed. When you buy property the seller signs a deed that transfers his ownership interest to you. Most states use a Warranty Deed. With that deed the seller warrants that title to the property is as he has described. You would buy title insurance in case some defect in title was discovered after the transfer of ownership. Recording the deed is notice to the world that you are the new owner.

You must know how to correctly fill out such basic documents as purchase offers, deeds, options, leases and rental agreements. Many of those documents have been recorded in your county and you can see many expert examples by viewing your County Recorders files.

If you have borrowed money to buy the property the lender will record a mortgage or trust deed immediately after the Warranty deed has been recorded. This mortgage is a lien on the property and gives the lender power to foreclose if you violate terms of the loan, like stop making payments.

Step Two - Understand how to buy real estate:

Most sellers want to sell their property for full price and all cash. Investors generally want to buy at a discount and delay paying for as long as possible. To do that you must understand the many techniques an investor can use to satisfy the needs of the seller.

You only make good deals if the seller is urgently motivated to sell. Perhaps he has lost a job, been transferred, has a drug problem, is facing divorce, bought more house than he could afford… or a variety of other reasons why he/she must get out from under those mortgage payments.

You can control real estate with leases, options, subject to techniques and a host of other “creative ideas”. To be successful you must understand which technique to use in which situation. You just talk to the seller until you learn what he/she will accept.

Step Three - You must uncover a steady stream of motivated sellers:

They are always plenty of people who must sell their homes and sell them in a hurry. The trick is to find them. Since most people will so “no” to any offer but all cash, you need to be constantly on the search those motivated home owners.

My experience is that most new investors don’t fail at investing… they fail at marketing. Marketing is how you sell you skill as an investor and find enough motivated sellers to keep the cash rolling in.

You can use billboards, flyers, telephone calls, door to door canvassing, bandit signs, newspaper ads, Web sites, direct mail… or any combination. If you don’t use good marketing every week of the year your chances of becoming a successful investors are minimal.

Good marketing is the secret. You can be expert at every creative buying technique in the book. If you can’t locate motivated sellers every week you just won’t be able to buy houses.

Time and again we’ve seen people with just basic knowledge of one or two buying techniques become very successful, because they are unrelenting in their search for motivated sellers. Perseverance and stamina can work wonders.

My choice is to mail postcards, because they are inexpensive to prepare and send. You can read more about my postcard system at http://digbig.com/4cjxp

Step four - Always have an exit strategy before you buy:

Before buying an investment property you must carefully evaluate the potential for profit. One of the keys to your evaluation will be to determine what you will do with the property if you buy it.

Included in the many way to profit are:

1. Place it in your “buy & hold” inventory if it will produce profitable rental income.
2. Place it in your “buy & hold” inventory if it will produce break-even cash flow and you expect it to increase in value by 8% to 15% or more per year.
3. You can assign the purchase contract to another investor for a one time cash payment.
4. You can buy the property and immediately sell it to a retail buyer and cash-out.
5. You can exchange it for a more desirable property.
6. Refinance cash out and use the money for the down payment on another property.
7. Etc…

Finally

Now you can visualize the four basic steps in real estate investing. You’ll never know all there is to know about every step. Just get started and add to your knowledge as you go along. Remember, all it takes to be successful is perseverance and stamina!

ABOUT THE AUTHOR

Beginning Real Estate Investing - Understanding Market Values

Another in a series of articles on beginning real estate investing. A crucial step to becoming a wise real estate investor is getting to know your local market, and learning to put a value on the properties within your target neighborhoods.

Beginning real estate investing involves learning a new set of skills, one of the most important of which is valuing property. For the limited scope of this article, we?ll limit our discussion to residential single-family and duplex homes.

When you are just beginning real estate investing, it?s helpful to set a goal for yourself to become the market value expert in one or two select neighborhoods. When choosing these neighborhoods, look for locations close to your home with a good selection of homes in the lower-middle to middle price range for your market. This is where you?ll find the best combination of working-class homeowners and what I call ?aspirational? renters- those renters who aspire to homeownership. These will become your best customers.

Once you?ve found one or two of these neighborhoods, start driving through at least twice a week, looking for all real estate activity, including listed sales, For Sale By Owner, auctions, estate sales, vacant property, even moving van activity. As someone who is beginning real estate investing you should get tuned in to the pulse of the neighborhood.

Look for and get to know the local Realtors. Stop in to the Realty offices and introduce yourself. Find out who the most active listing agents are, who sells the most houses, who deals with the most foreclosures, and who works with the investors. These are the best Realtors to work with as you are beginning real estate investing.

Also, beginning real estate investing means getting to know local service people, especially contractors. Talk to as many of these as you can, and find the ones that do a lot of work in your target neighborhood, especially plumbers. Ask them what kinds of recurring problems they see. They will provide you a wealth of information.

Give yourself a timetable to learn property values in your target neighborhood. Three to six months is probably realistic. When you are just beginning real estate investing you will need to work closely with a Realtor. Ask for all the listings in your target neighborhood, and try to see them all. Ask also for the listings of comparable sales (Comps) so you can see what similar properties have sold for recently.

Build a spreadsheet, database, or even just a handwritten notebook so you can refer back to it from time to time. This will become a valuable resource for you as you progress beyond beginning real estate investing. Slowly but surely you will become an expert on property values in your target neighborhoods. You will be able to look at most any property and know, within a few hundred dollars, exactly what it?s market value is. This knowledge will serve you very well as you progress in your real estate investing activities.

For more in-depth information, visit my website and read more about beginning real estate investing.

Now, go make more offers!

Opening A Dollar Store - Rewards of Business Ownership

There are many potential rewards associated with opening a dollar store. However, with those rewards come many risks as well. It is important that the entrepreneur who is opening a dollar store carefully determine what those rewards are in their case and then compare the rewards to the many risks that will also be faced.

So what are some of the rewards associated with opening a dollar store? The rewards can include the potential for monetary profits. There is also the freedom associated with working for yourself, and the pride associated with owning your own business. Among the biggest rewards for many is getting rid of the 9-to-5 J-O-B and the boss that comes with that J-O-B.

All of these rewards and more are attainable if you are opening a dollar store. Well run dollar stores can be profitable. Owning and operating your own business does offer a degree of independence. You can definitely determine what you do and when you will do it. (However, never lose sight of the fact that mistakes can affect business performance.) There is nothing to compare to the pride as you stand in your finished and ready to open for the first time store. Say goodbye to your boss; you are now your own boss.

All of these rewards are well worth seeking. They are all very achievable when opening a dollar store. However never allow those rewards to blind you to the risks associated with business ownership. Recognize the rewards. Recognize the risks. Together they define your potential business success. It is absolutely no fun to see a business fail because the risks existed, yet they were not recognized or properly addressed because of the potential rewards.

To Your Dollar Store Success!

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