Start You Own Duplex Investment
You can create your own duplex investment by converting a home into a duplex. This can make a negative cash flow house into a positive cash flow duplex. Of course, zoning and permit problems are definite possibilities.
Houses may be a losing proposition as rentals in your area. They are in many areas now. However, if you find the right kind of home, you may be able to convert it into a duplex and turn that cash flow situation around. Let’s look at an example.
Make A Duplex Investment
First you go to the county or city to find out what residential areas are zoned for both single family homes and duplexes. Take a map and mark it well, so you won’t waste your time looking at houses that you’ll never be able to convert. You don’t want to try to get properties rezoned for small projects like this – it just isn’t worth the trouble and probably won’t succeed.
Suppose you find a 3-bedroom, 2-bath house in one of these areas. The seller is asking $102,000. This is less than the surrounding homes, but it is because the home is in rough shape. You don’t want to tie up more than $20,000 in any one project, so you quickly realize that positive cash flow would be difficult to obtain, since the usual rent for houses like this is around $775 per month. You look at the home anyhow, with the idea of making a duplex out of it.
The repairs necessary are mostly cosmetic. The bathrooms are on opposite sides of the house. There is an office that can be made into a bedroom. There is a natural place to divide the house that will leave a dining room on one side – which will become a living room – and a living room on the other side. One end of this living room will be used to make a small kitchen.
You will end up with two 2-bedroom units, which rent for about $630 in this area. The vacancy rate for the area is 5%, so you project an annual gross income of about $14,360. Taxes, insurance and repairs will be about $4,660, leaving a net income before debt service of $9,700.
You have already checked, and know that you can borrow 90% of the value of a duplex, at about 8% interest on a 30-year loan. You figure (roughly – all of these numbers will need to be firmed up before closing) that you want cash flow of at least $1,800 per year. Subtracting this from the $9,700 leaves $7,900 for debt service. Dividing this by 12, you see that you can have a payment of up to $658 per month.
Now you pull out your amortization book, and turn to the page that says 8% interest. Working your way down the monthly payments column under “30 years” you see that you can borrow up to $90,000 and still make your plan work. Since you don’t want to put more than $20,000 of your own money into the deal, this means the whole project has to be done for $110,000 or less.
Roughly estimating the construction costs, clean-up costs, holding costs, closing costs, loan costs, refinance costs (once the project is done) and other expenses, you figure your total costs will be around $23,000. When you make your offer, you will have an inspection contingency that allows you to cancel the contract if there are problems that put the likely cost beyond this.
Subtracting $23,000 from $110,000, you arrive at a figure of $87,000. You know this won’t thrill the seller, but this is the price you need to make the deal work for you. You offer $83,000, and he counter-offers at $93,000. You offer $85,000 and drop the clause that had him paying $2,000 of the closing costs – you had only put it in there as a negotiating tactic anyhow.
Eventually, when he realizes that you really will walk away from the deal, he agrees to $88,000. You decide that this is close enough. Your inspections and quotes come in and you are satisfied, so you close. You borrow only 80% of the value to avoid mortgage insurance and points. You intend to refinance when you have the place ready anyhow.
You find some cheaper ways to get the job done, and the total costs up to the day you rent the units is just $20,500. This means you have total of $108,500 into the duplex. You shop around and find a new loan at 7.5% interest. You also decide to finance 90% and have less cash flow. You like the idea of having only $11,000 or so of your cash invested.
You borrow $97,650, making your payment $682 per month, or about $8150 per year. This leaves $1,550 per year cash flow – close to what you wanted. Your cash-on-cash return is around 14%, and if rents are rising in the area, it will soon be higher. This is why you might want to create your own duplex investment.
Copyright Steve Gillman. This article was an excerpt from 69 Ways To Make Money In Real Estate. Want to know the other 68 ways? Visit http://www.99reports.com/make-money-in-real-estate.html
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5 Tips For Long Term Stock Market Investors
You have made up your mind to invest in the stock markets and you have probably decided that you are going to do it as a long term stock market investor. That means that you are not generally interested in short term trades that mainly rely on stock prices and their trends. Still, you need to know that there are some general guidelines for all long term investors which might help you secure better returns and minimize possible risks or losses. Let me offer a few tips.
One, have a long term goal in mind. Having a long term goal will help you decide which approach is most suitable for you while also guiding your future decision making despite acting as the bench mark for success or failure. In the long run you stand to make more consistent and steady decisions should the market move or change and avoid unnecessary moves that might jeopardize your investment.
Two, since long term investment will most likely compel you to use the fundamental analysis as opposed to technical analysis when it comes to analyzing the stock market, you need to keep yourself knowledgeable on the company in whose stock you are investing. You need to go through its past history, current performance in their market and what vision and future plans the company has in mind. This should help you decide whether it stands to grow substantially because the growth of the company represents the growth of your investment.
Three, maintaining self discipline is very crucial if you are to meet your long term objectives. The need to persevere even as the market shifts is important if you are to achieve your long term goals. Remember that self motivation is what compelled you to invest in the stock markets and secure and rewarding investments will always require a good amount of self discipline.
Four, always keep a record of all your trade moves. While this might sound more important for the short term investor it is equally important for you as well. Keeping track of all your investment decisions and moves will help you analyze your successes and failures and will serve as a reference point for your future decisions. They offer valuable lessons for your investment decisions in future.
Finally, there are of course plenty more tips you could learn from fellow investors, market experts, online tutorials and journals as well. This will serve as my fifth tip. Any useful information that is beneficial to you as a long term investor is very important to you. So go ahead and invest. Learn and keep learning and keep your investment secure.
Trading – Bio
Using the strategies he now teaches, Marcus de Maria went from 100,000 GBP in debt to financial independence in just 5 years.
He taught friends and family and seeing the same fast and effective result, decided to teaching more people by setting up one of the leading wealth creation education companies in UK. For more trading tips visit http://www.wealth-workout.com/socialnet/sn_audio_index.html. Start today and enjoy the life as a stock market investor.
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The Role Financial Restructuring Consultants
The twenty first century India witnesses a boom in the economy with industrial growth followed by an increase in investments made by the people at large. People have become fully dependent on the services provided by the financial restructuring consultant in India as their earning capacity has increased over time. Increased earning capacity calls for a proper planning of your funds and assets to derive benefits in the near future. A wise decision on your part will be to zero your vision to a particular investment banker to manage your finance after taking into consideration the pros and cons of the venture.
Before you move a step ahead and manage your finance through them, there are certain aspects to be borne in mind.
Who are the Investment bankers?
You might have come across this term quite often. The investment banking firms might be large, medium or small conglomerates responsible for financing your capital requirements. The services provided by the investment bankers ranges from bond offering, private equity placements, stock broking to performing the functions of mergers and acquisitions. The investment bankers help the private and the public corporations by issuing certificates in the primary market and act as an intermediary in share trading for the clients. As a planned investor if you are looking forward to obtaining financial advice from the financial restructuring consultant in India, then you are moving on the right track as they would assist you in purchase of securities, managing financial assets and trading securities.
With an overall growth and development of the investment banking sector in India, the need for manpower has also increased. To crave out of this and meet the manpower needs, a large volume of investment banking jobs in India have been generated. The mob of India looks forward to becoming a part of the investment banks to earn big bucks and lead a lavish lifestyle.
Goldman Sachs, JP Morgan and Morgan Stanley are the all time favorites and crowd pullers from the top notch b-schools in India. Other small investment banks are located regionally or situated in the middle market. These are often referred by the name of “boutiques” which might be oriented towards an industry vertical, bond-trading, technical analysis or program trading. These firms are mostly diversified into different areas and groups within them. Most of the firm consists of sales and trading which works with the owners of securities in the capital market. Investment banking jobs in India has been generated by the investment banking firms of international repute and if you want to be a part and parcel of these firms, grab a job right now.
If you look at the banking scenario in India, then you will discover that it covers different facets of the economy. The investment banks in India generate funds from the public at large via capital market by selling stock in their company. Apart from that the other way of raising the fund is to look out for private equity or the venture capital to cover the stake in their company. The investment banks handle the funds globally and if you feel they are the right place to divert your funds, go ahead.
I have grew up in a family of finance professional. Thus I have a special attraction in finance and accounting. I started writing about financial advisory services in India and the scope of business as financial restructuring consultant India
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Protection Of Assets For The Elderly – You Earned It, Now Make Sure You Keep It
Despite the credit crunch many people can still look forward to a long and comfortable retirement on the strength of sound financial assets built up during their working lives.
Consequently, I have found that the firm of solicitors I work for is receiving an ever-increasing number of instructions for advice to provide “asset protection for the elderly”. Most commonly these assets involve a main home (mortgage free), pension fund, stock market investments and Premium Bond, ISA and other savings.
Precisely because people now have greater life expectancy, one issue of concern to many clients is management of their assets should they become incapacitated mentally or physically in their later years. Fortunately, these fears can be put to rest by granting power of attorney to a trusted individual (or individuals), usually a close relative or very good friend. Should someone’s condition deteriorate, the person appointed “power of attorney”, administers their affairs for them.
If there is no obvious person to appoint as Attorney or should there be a wish to appoint a neutral professional third party as attorney, then it is the solicitor who is often happy to provide such a service, which, of course, will be supervised, by our regulatory authority and the public guardian.
Another area in which solicitors can help relates to the cost of social care. We have often been asked to ensure that any benefits to which a person is entitled are taken up, thus keeping a drain on their asset portfolio to a minimum.
Finally, many people are concerned after their death a substantial amount of the assets they worked hard to build up all their adult lives will go not to their family but to the State. Rising house prices have led to many people being snared by inheritance tax (IHT), especially in Edinburgh where a fairly modest family home can – quite apart from other assets – easily take the value of an estate to the point after which IHT becomes payable (at 40 per cent). However, there are ways to minimise liability to IHT, often inexpensively.
The key to asset protection for older people is to plan early to formulate wills and other appropriate legal documentation so that they can provide adequately and tax efficiently for themselves and their heirs.
But don’t let failure to plan early put you off. Get in touch with your solicitor and the chances are he will still be able to assist.
Richard Godden is a solicitor with over twenty years of experience before the Scottish courts, and is a partner in the Edinburgh firm of McKay Norwell.
He has wide experience in claims arising from accidents, employment, contract claims, commercial actions, and debt collection.
His motto is always to try to find the practical and workable solution for his clients.
http://www.mckaynorwell.co.uk
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Free Asset Management Software
However, a few companies offering information technology asset management software applications and other limited functionality asset management software provide free versions or trial versions that can be used free for a limited period of time.
Information technology assets include computers, printers, scanners and software licenses. Several firms have developed asset management software specifically for information technology assets.
SysAid is one such firm that offers free Asset Management Software. The available version is completely free, with no trial period, but the limitation is that it works in organizations with less than a hundred computers. If an organization with larger IT assets wants to use this software, it has to buy the full version from the vendor. The software enables you to view details of the hardware, the software, the manufacturers, the printers, and other assets on one?s network. It also prints reports of the organization?s hardware/software inventory.
Similarly, FootPrints? Asset Management software is available for free for an evaluation period of thirty days. This software among its many functionalities helps maintain software license compliance by automatically creating a dynamic audit of all software applications across the organization.
Free asset management software applications for management of financial assets are also available but are comparatively difficult to locate. These usually are meant to help an individual construct a portfolio and manage his or her investments. Web based applications are more commonly available.These usually are meant to help an individual construct a portfolio and manage his or her investments. Web based applications are more commonly available.
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Why A Financial Accountant Is So Important
A financial accountant is a very important person in the entire operations of an organization. It is very much true that the finance is the foundation stone holding the whole edifice of the organization as well as its future plans of expansion and in carrying out the current operations that it has undertaken. A financial accountant is the person who takes on the mantle of identifying as well as recording the financial transactions of the organization, measuring it, classifying it as well as verifying the financial information and then further interpreting it as well as communicating the information to the decision makers. In the event of performing the computerized financial accounting he is supposed to report the value as well as the nature of the financial assets of the company and also reveal the liabilities as well as the equity of the owner. He also informs the owner about the profits and losses of the company for a given period of time.
Some of the fundamental responsibilities that a financial accountant has to take care of are:
a) Internal financial assessment
b) Give an expert’s advice as well as help the people on the matters of taxation
c) Record and review the financial transactions
d) A comprehensive and thorough management of the financial records
e) Report as well as analyze the information pertaining to finances to the management
f) A constant monitoring of the financial assets as well as the investment strategies of the company
g) Keep abreast with the latest in the financial news
In order to perform the following duties a financial accountant needs to be very much thorough in his core areas of competency. Another most important quality that a financial accountant is supposed to have is that he needs to be honest in his approach to work, have integrity as well as be forthright in his dealings with the higher echelons. A financial accountant is the person that the management looks upon while seeking any information pertaining to the finances of the organization. It is on the basis of his reports that the management and the decision makers base their plans as well as decide upon their future course of action.
For more information regarding: accountant, financial accountants, find accountant. Please visit: http://www.accountant-search.com
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Information about Financial Institutions
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A <a rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link']);” href=”http://www.zuuply.com/1/financial+institutions.html”>financial institution</a> is an organizations that provides financial services to their customers. There are rules and regulations that are controlled and supervised by government authorities for financial institutions. Some of the different types of financial institutions are Banks, Non Banking Financial Institutions, Stock Brokerage Firms, Building Societies, Credit Unions, Insurance Companies and Asset Management firms.
The primary functions of financial institutions like banks, savings associations, loan associations, etc. are to accept deposits, provide real estate loans, provide commercial loans, provide mortgage loans, and issue share certificates. They also provide loans, business inventory financing and indirect consumer loans.
Some financial institutions are mediators in the debt security markets and share markets. The principal function of these institutions is to collect the investors funds and direct the funds to various financial service providers in search for those funds. Financial institutions also deal with a variety of financial activities including bonds, debentures, loans, stocks, insurance, risk diversification, planning, portfolio management, and other related functions. With these functions, financial institutions transfer money to various tiers of the economy playing a significant role is the domestic and international economic scenario.
Financial institutions implement different economic models to carry out their business operations. They assist investors and clients to help maximize their profits. Financial institutions also provide a wide range of educational programs to educate investors on investment fundamentals and much more.
Financial institutions can be public or private companies with the most common forms being categorized by Business Finance Company, Mortgage Finance Company, Car Finance Company, Personal Finance Company, Personal Loan Finance Company, Home Finance Company, and Corporate Finance company.
In summary, financial institutions are an institution that collects funds from public and private investors and utilized these funds in financial assets. The function of a financial institution is not limited to a particular country, but they can have impact abroad due to the growing impact of globalization. Learn more about <a rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link']);” href=”http://www.zuuply.com/”>finance</a> and financial questions here.
Brittany Stanzas is a professional freelance writer.
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Finance Summary – Financial system, Financial activities and Banking
1. The financial system
The financial system is a network of financial organizations, which carry out and regulate financial activities, the ministry of finance, the treasury, the central bank, the tax service, stock and currency exchanges.
There are budgeting, financing, investment, banking, taxation and insurance are the main forms of financial activities. Financial assets flow in the system from savers to borrowers, who use them. Savers and borrowers are linked by financial intermediaries. They are banks, finance, investment and insurance companies.
The heart of Britain financial services industry locates in the famous “Square Mile” in the City of London. It is one of the largest financial centers in the world. The world’s largest banks and financial markets located there. For example, London Stock Exchange, the Foreign Exchange Market, the Financial Futures and Options Market, Eurobond and Eurocurrency markets.
2. The financial activities
The modern market economy is populated by three types of economic agents, whose interaction constitutes economic activity. There are budgeting, financing, investment, banking, taxation and insurance are the main forms of financial activity.
Financial assets flow in the system from savers, which act as sources of funds, to borrowers, who use them. Savers and borrowers are linked by financial intermediaries. They are banks, finance, investment and insurance companies. And the ministry of finance, the treasury, the central bank, the tax service and other governmental organizations also carry out and regulate financial activities.
There are stock and currency exchanges, commercial banks, producers, finance, investment, insurance companies, and special financial-credit institutions such as investment founds, pawnshops, trust companies – all of these types of economic agencies carry out the financial activity, which is a backbone of any financial system.
3. Banking
Banks play very important role in any financial system. Banks are classified as commercial banks and central banks.
Commercial banks open accounts for their clients and receive money on current and deposit accounts. These funds they use to provide loans and for investment. They also collect cheques, discount bills, transfer money, buy and sell securities and do other commercial operations. The main purpose of commercial banks is to make profit.
The main purpose of central bank is to control monetary system. It helps government provide monetary policy by regulating supply, cost and availability of money and credit. It is the county’s leading bank, which act as banker to government. It issue banknotes, regulate activity of retail banks and provide services related to the public debt.
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