THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

Real Estate Investing and Yoga

Recently someone emailed me from my real estate web page serving the London Ontario Canada real estate market asking for advice regarding the purchase of there first real estate investment. The next morning when I was practicing some yoga it occurred to me that successful real estate investing is very much like yoga. Both are very simple in execution and theory; however both require discipline, consistency and perseverance.

In yoga you take a relatively simple position and hold it for a long period of time to derive benefit. Likely at this point you see where I’m going with this analogy. Yes indeed real estate is quite the same. You take a position which is buying a property and hold onto that position for a sufficient period of time to derive a benefit. Sounds simple indeed! However, if you’ve tried yoga you know that it can be one of the most challenging workouts one can do. In real estate investing one can be challenged by, raising interest rates, bad tenants, vacancies, maintenance issues and perhaps most significant changing personal circumstances. You need to hold on to your position to derive a planned for or significant benefit, which in this case is significant appreciation of the property.

To derive a benefit from yoga one must have certain rules that have to be consistently followed. For example, one must plan for specific times per day or week to set aside for yoga practice. Other rules might be not to be overly fatigued, inebriated etc. for these time periods. For real estate investing setting goals is a separate issue from setting rules. In my opinion it is extremely important to do significant research so that one can realistically set certain rules as these rules will protect you from impulse buying and poor buying practices in general the least of which is one’s own greed or ambition. For example, many years ago prior to being a realtor I bought houses close to the University of Western Ontario Canada and fixed them up to rent to students. So here are my rules from this time period.

1. Identify certain geographic area based on travel time to the main campus.

2. Know market rents for this geographic area

3. Be very conversant with market value of properties in this geographic area and know cost of capital improvements if any for all the work required prior to purchase

4. Ignore other geographic areas

This went extremely well for me, until I broke one of my own rules and purchased a house outside the geographic area. I’d like to blame this on a fast talking real estate agent; however it was my greed/ambition that truly was to blame. The main point here is one needs a set of rules or guidelines specific to his/her investment goals, geographic area and capabilities and stick to them. The above rules may not be applicable to your situation but are for illustrative purposes. After all everyone should have their own rules to live by (lol) In regards to investing in real estate or Yoga I hope the above may provoke some thought and provide some guidance.

THE TRUTH ABOUT REAL ESTATE INVESTINGIS IT RIGHT FOR YOU?

D.You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials spewing out sales pitches for courses that teach you how to buy residential real estate no money down or for next to nothing. Furthermore, polished pitch men on the advertisement emphasize that it is so easy that anybody can do it. They smugly show you that it is simple as they pencil out on the back of a napkin how you will supposedly make a fortune in real estate. Then these real estate investment course promoters show actual interviews of people who have reportedly made gobs of money with the course system.
Although it is true that fortunes can be made in real estate it is actually more likely that it will be the guru owner of the real estate course than you! The reason is that real estate investing is a lot harder than most people realize. When you buy, rent, and sell real estate as opposed to stocks you are dealing directly with people and there is not organized exchange to keep things standardized. Dont forget that courts see it as their duty to protect the shelter of families even if they are non paying renters who are total deadbeats. Another problem is that many contractors who do odd fix up jobs for real estate rehabbers are drifters with as many personal and financial problems as bad tenants. They damage houses and are down the street as soon as they get a little cash out of the hapless real estate investor.
It also takes many years to learn how to properly assess value in a town or neighborhood and get the required experience in real estate closings to not have the big profits you initially think you see in a deal leak out. The key point is that real estate investing is a business. Like any other business it requires constant dedication and education. If you work full time it means losing your free time to your rentals and rehabs. If a property doesnt sell or if the tenant doesnt pay you will have to lose part of your salary to cover the mortgage. You should enjoy your regular full time job because you selected it. If you prefer cookouts and trips to the beach over collecting rent and repairing your residential real estate investment then the stock market is a better place for you. If you are interested in real estate investing I have a list of reliable real estate investing courses as well on my website!

About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. The Wallet Doctor, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term Irrational Exuberance. In 1998 he was shouting out to the world to get out of the stock market but now he is shouting to everyone that it is time to get in! The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Browns site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com

IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRYMatthew ParkinsonWHY WONT THE GOVERNMENT STOP IRRESPONSIBLE LENDING FROM THE CREDIT INDUSTRY?

It is not uncommon for credit card companies to offer credit limits of 10,000, 15,000 or even as much as 25,000 allowing you to effectively walk into a car dealership and buy a brand new car by signing on the dotted line and then driving away!

To whom do they offer these limits?
Anyone earning more then 100,000 per year?
Company Directors?
Solicitors?
Members of Parliament?

No.

They are offering these limits to retired widows, low-income families and single parents working 16 hours per week. People who have no ability whatsoever to repay such huge sums of money.

Hard to believe isnt it? But Payplan, a free debt management company who deals with thousands of individuals with debt problems each week, have come across many unbelievable cases of irresponsible lending over the last few years and the problem appears to be getting worse. There are now more than 300 different credit cards on offer in the UK all competing for your business.

They will use attractive offers to get you to sign up, such as cash back, 0% interest on balance transfers and purchases, loyalty points etc All designed to make you spend more on your cards so that you then pay them interest out of your hard-earned cash.

These offers are often deliberately confusing and complex in the hope that customers will fall foul and not qualify, resulting in interest being charged.

Britain’s personal debt is increasing by 1 million every four minutes.

Gone are the days where borrowing money involved making an appointment with your bank manager and turning up in your best Sunday suit to make a good impression then politely explaining why you needed the money.

But it isnt just the new credit card companies that are doing this the high street banks are guilty of overloading their customers with credit facilities too.

The former Big 5 Banks are probably most guilty of this; once a customer runs up a large overdraft they are quick to offer a consolidation loan, which may also incorporate any credit card debts. While this seems like a good financial move, many customers find that the interest rates charged by the banks are extremely high and the temptation of overdrafts and credit cards still remain.

Should the credit cards, store cards, catalogues and overdrafts start to creep up once again, the banks may intervene a second time and allow a large unsecured personal loan of up to 25,000 to clear some or all of the debts.

This only causes further problems and does not allow the customers a realistic opportunity to resolve the problems they really need budgeting advice, and LESS credit facilities.

Once these large loans have been taken then it means that all the customers eggs are in one basket this stops the customer from seeking professional help as there is only one creditor to negotiate with and they will require all the monthly surplus.

SO WHY DO THE BANKS LEND SUCH HUGE SUMS WITHOUT ENSURING THAT CUSTOMERS CAN REPAY?

We can only speculate but there could be several reasons:

1. Banks and credit card companies could take insurance against the risk that their customers become insolvent. Credit insurance premiums generally cost between 0.3 - 0.7% of annual turnover a small price to pay for a guarantee against irresponsible lending!
2. It may be that companies have calculated just how much extra interest can be earned from customers if they provide them with such high credit limits. By overcommiting customers they know that extra interest and charges will be added.
3. In light of recent comments from HSBC and Barclays who have been blaming bad debtors for their drop in share price it could simply be a diversionary tactic!

WHY WONT THE GOVERNMENT INTERVENE?

The wheels are in motion to make creditors more accountable for irresponsible lending, (Lloyds TSB have been in trouble recently for unsecured lending of up to 100,000!) but there is little rush from Gordon Browns Office as the UKs economy continues to hit growth projections aided by massive consumer spending.

Household final consumption expenditure is the largest single component of the expenditure measure of GDP, accounting for about 50% of spending.

In other words, the more money spent by the UK population, the higher the GDP (Gross Domestic Product) and this means more money is pumped into the economy.

If you feel that you have lost control of your credit card and loan repayments or that you have borrowed more than you can pay back, then give Payplan a quick call on 0800 716 239 or visit the website for further details www.payplan.com

Payplan are a free debt advice agency, who are able to provide a personal solution to anyone experiencing debt problems.

About the author:
I have been working as a Debt Advisor in the UK for the last 5 years, assisting families who have been overwhelmed with debt.

Real Estate Investing and Yoga

Recently someone emailed me from my real estate web page serving the London Ontario Canada real estate market asking for advice regarding the purchase of there first real estate investment. The next morning when I was practicing some yoga it occurred to me that successful real estate investing is very much like yoga. Both are very simple in execution and theory; however both require discipline, consistency and perseverance.

In yoga you take a relatively simple position and hold it for a long period of time to derive benefit. Likely at this point you see where I’m going with this analogy. Yes indeed real estate is quite the same. You take a position which is buying a property and hold onto that position for a sufficient period of time to derive a benefit. Sounds simple indeed! However, if you’ve tried yoga you know that it can be one of the most challenging workouts one can do. In real estate investing one can be challenged by, raising interest rates, bad tenants, vacancies, maintenance issues and perhaps most significant changing personal circumstances. You need to hold on to your position to derive a planned for or significant benefit, which in this case is significant appreciation of the property.

To derive a benefit from yoga one must have certain rules that have to be consistently followed. For example, one must plan for specific times per day or week to set aside for yoga practice. Other rules might be not to be overly fatigued, inebriated etc. for these time periods. For real estate investing setting goals is a separate issue from setting rules. In my opinion it is extremely important to do significant research so that one can realistically set certain rules as these rules will protect you from impulse buying and poor buying practices in general the least of which is one’s own greed or ambition. For example, many years ago prior to being a realtor I bought houses close to the University of Western Ontario Canada and fixed them up to rent to students. So here are my rules from this time period.

1. Identify certain geographic area based on travel time to the main campus.

2. Know market rents for this geographic area

3. Be very conversant with market value of properties in this geographic area and know cost of capital improvements if any for all the work required prior to purchase

4. Ignore other geographic areas

This went extremely well for me, until I broke one of my own rules and purchased a house outside the geographic area. I’d like to blame this on a fast talking real estate agent; however it was my greed/ambition that truly was to blame. The main point here is one needs a set of rules or guidelines specific to his/her investment goals, geographic area and capabilities and stick to them. The above rules may not be applicable to your situation but are for illustrative purposes. After all everyone should have their own rules to live by (lol) In regards to investing in real estate or Yoga I hope the above may provoke some thought and provide some guidance.