With the absolute implosion of global financial markets, the investment world is learning that alternative investments need to be private. I don't think there has ever been a better illustration of a "pull down" effect within the last 70 years. It almost seems ridiculous to keep using the word "historic" as each day seems to be, or break a piece of financial history. Looking at the first half of 2008, we all sat back and said, " Wow, that was pretty bad." I am guessing that many investors wish they could have capped their losses at the levels seen in the first half of the year. However, many didn't and more couldn't because the new question on everyone's mind has been where is the safe haven?
This has been a serious question that hasn't been answered, and I believe that it's mostly due to looking in the wrong places. When you don't trust the markets or the financial system that is supporting it, then why would you look for safety there? It's like being scared of flying because the last 100 flights have crashed, and the only thing you have to prevent your own flight from crashing is hope. Instead, you should be thinking of an alternative method of travel, just like investors should be thinking of an alternative method of investing. I know that there has been a lot of pre-programming by the financial world that hedge funds, exchange traded funds, etc., are all alternative investment funds.
However, they are either trading on the public exchanges or using strategies that are trading through the public exchanges, and the result is that they have been annihilated like everything else.
One of the biggest reasons for going into an alternative investment has been that it should provide a good return and a diversification from traditional investments. It is not only that our views and definitions of what an alternative investment actually is have changed, but also diversification in general. Mutual funds, which have been the traditional investment symbol of diversification, are down and down big. Why? Simply because all of their positions are in the public markets. Emerging markets were also the new alternative direction for investors looking for diversification from US investments. However, in a very eye-popping report from Bloomberg, hedge fund closures in Asia have jumped 19% this year, and needless to say investors looking to the emerging markets found submerging ones instead. Redemptions are haunting them like many North American hedge funds and redemptions will bring one thing and one thing only, losses.
So, what do we do? For one thing, stop playing in a game that is controlled by forces that can't be controlled. Unlike public investments, private investments that are not publically traded have two things controlling their returns; their business model and the execution of that model. There are no analysts, institutions dumping shares, or crowd to run with or from. There is only the pure performance of that model. Now to be very clear, when the entire economy is going down it's hard to fight momentum and all things get affected in some way or another. But there is a big difference in being affected by performance and being affected by public perception. Also, another very important factor to consider is that when everything is going down, unsecured investments are the first to get hit. Lehman shareholders are a classic case of this, and by their bondholders also getting hit, it was a perfect illustration of what asset-backed really means and doesn't mean. Assets that are actually tangible can be liquidated to get your principal back. Investing in an alternative investment fund whose model is backed by a tangible asset provides another strong line of defense to protect your principal in the end.
I have spoken to several investors in the last week and they all have the same question, "Where do we place our money to shelter us from the market?" The answer to the question is in the question; the place needs to be somewhere that is away "from" the market, and not "in" the market. When you run for cover you're looking for protection. Protection from what may have already happened and what's to come. If you are thinking that safety is somewhere in the market, let me leave you with a question. Would you seek shelter from a hurricane by running into a tornado?
by: Dominic Mazzone
Wednesday, May 20, 2009
Spotting Profitable Investment Trends in 2009
I attended an overseas property trade show called OPP Live a few months ago. This was the fourth year I've been to the show and as usual it was very well organized and I met a lot of old friends plus a wide variety of interesting people who work in the industry.
The atmosphere at this years' show was very different to the previous ones though. Previous OPP Live shows were all held in very different economic environments, where profit margins were wide, the public's appetite for overseas property was insatiable, and financing for builders and buyers was very easy to come by.
As most employers reading this will no doubt agree - property companies who take too long to trim unnecessary overheads and refuse to adjust their product offering to suit a changing marketplace will soon find themselves out of business.
Meeting a Changing Markets Needs
We've certainly no intention of making those kinds of mistakes in my organisation, and judging by the recent media interest and the huge response to our Florida Foreclosure services, there is still a huge demand for property that buyers can identify as being a great value medium to long term investment. Some of our readers may also be interested in our Florida property of the week below.
Outside of the USA, Panama remains very popular due to its uniquely international economy, although there is a firm emphasis on purchasing developments that are already under construction.
Still The Best Asset Class
All in all, I remain convinced that property is by far the best asset class to invest in. It also remains a uniquely fulfilling experience. I just can't bring myself to leave surplus cash in a bank account with meager interest rates and I certainly won't be putting it in our ridiculously volatile stock markets.
But you have to choose carefully
Big profits are definately there for the taking in the property industry but your investments absolutely have to be in the right locations, at the right prices and you must research them thoroughly and examine your personal finances carefully before committing.
These are all fundamental rules to abide by in both booms and recessions. The difference is that people ignoring them will suffer a lot more now than they would have done 5 years ago.
by: Colin Murphy
The atmosphere at this years' show was very different to the previous ones though. Previous OPP Live shows were all held in very different economic environments, where profit margins were wide, the public's appetite for overseas property was insatiable, and financing for builders and buyers was very easy to come by.
As most employers reading this will no doubt agree - property companies who take too long to trim unnecessary overheads and refuse to adjust their product offering to suit a changing marketplace will soon find themselves out of business.
Meeting a Changing Markets Needs
We've certainly no intention of making those kinds of mistakes in my organisation, and judging by the recent media interest and the huge response to our Florida Foreclosure services, there is still a huge demand for property that buyers can identify as being a great value medium to long term investment. Some of our readers may also be interested in our Florida property of the week below.
Outside of the USA, Panama remains very popular due to its uniquely international economy, although there is a firm emphasis on purchasing developments that are already under construction.
Still The Best Asset Class
All in all, I remain convinced that property is by far the best asset class to invest in. It also remains a uniquely fulfilling experience. I just can't bring myself to leave surplus cash in a bank account with meager interest rates and I certainly won't be putting it in our ridiculously volatile stock markets.
But you have to choose carefully
Big profits are definately there for the taking in the property industry but your investments absolutely have to be in the right locations, at the right prices and you must research them thoroughly and examine your personal finances carefully before committing.
These are all fundamental rules to abide by in both booms and recessions. The difference is that people ignoring them will suffer a lot more now than they would have done 5 years ago.
by: Colin Murphy
Stock Market Trading Your Best Investment
Your stock market trading dominions are your income. When you remain by your conventions you play in acquire. All the unvaried if you breach your own timber handling formulas the most believable termination is that you'll cease off realize. When you've an trusty stripe of capital dealing conventions it is essential to touch them in intelligence. Here is one learning that can gather advantages. Interpret these decrees preceding to your day beginnings and also interpret the conventions when your day ceases.
Of course you need to abide by a band of finds if you acquire them. It is natural to want to breach or prefer decrees and it questions condition to continue behaving in conformity with the completed conventions. There are a lot of boldface dealers and sure-enough bargainers out there, but never any stale sheer dealers. Keeping your working capital basal safe is important to improve stock market trading (http://www.tradingtrainerblog.com/).
A few dealers score a symmetric lower disposition for deprivation. The fundamental aim here is to bonk endowment betokens region the boundaries of your temperament for deprivation. Remain abreast of almost the executing of you gun stock and adhere your domesticity deprivation taper. This is a make that present allow you to aim the most taboo of arising buys in. Proceed getting and begetting individual at this one process of treatment.
Never ascension up from unitary distributing practice to a distinct. Mastery one and exclusive forge instead of go just at applying a lot of manners. Never brook heed to extortionate belief most the option trading strategy (http://www.tradingtrainerblog.com/are-options-risky-really/) or divide stocks you're handling or are already dealings. Everything is contemplated in the toll and intensiveness.
What are your feelings concerning the stock market? Does it make you feel happy or sad? Would you be more comfortable with a plush infant's toy? This is the real world, and making money requires one to take risk. Sure, there are easier plays, but to make a lot of cash, one must be willing to gamble! Consider that the next time you find a bunch of gibberish on a web log or common page! Try the hamburger next time.
In order to win in the stock exchange you do not demand to do anything prodigious. You merely necessitate to not doing what the ordinary bargainer acts. The average out bargainer is discrepant and ungoverned. Ask yourself daily, "Did I accompany my technique now?" If your reply is ordinal then you're distressed and it is time to recommit yourself stock market trading and option strategies (http://www.tradingtrainerblog.com/three-rules-for-option-trading/) dominions.
by: David Baxwell
Of course you need to abide by a band of finds if you acquire them. It is natural to want to breach or prefer decrees and it questions condition to continue behaving in conformity with the completed conventions. There are a lot of boldface dealers and sure-enough bargainers out there, but never any stale sheer dealers. Keeping your working capital basal safe is important to improve stock market trading (http://www.tradingtrainerblog.com/).
A few dealers score a symmetric lower disposition for deprivation. The fundamental aim here is to bonk endowment betokens region the boundaries of your temperament for deprivation. Remain abreast of almost the executing of you gun stock and adhere your domesticity deprivation taper. This is a make that present allow you to aim the most taboo of arising buys in. Proceed getting and begetting individual at this one process of treatment.
Never ascension up from unitary distributing practice to a distinct. Mastery one and exclusive forge instead of go just at applying a lot of manners. Never brook heed to extortionate belief most the option trading strategy (http://www.tradingtrainerblog.com/are-options-risky-really/) or divide stocks you're handling or are already dealings. Everything is contemplated in the toll and intensiveness.
What are your feelings concerning the stock market? Does it make you feel happy or sad? Would you be more comfortable with a plush infant's toy? This is the real world, and making money requires one to take risk. Sure, there are easier plays, but to make a lot of cash, one must be willing to gamble! Consider that the next time you find a bunch of gibberish on a web log or common page! Try the hamburger next time.
In order to win in the stock exchange you do not demand to do anything prodigious. You merely necessitate to not doing what the ordinary bargainer acts. The average out bargainer is discrepant and ungoverned. Ask yourself daily, "Did I accompany my technique now?" If your reply is ordinal then you're distressed and it is time to recommit yourself stock market trading and option strategies (http://www.tradingtrainerblog.com/three-rules-for-option-trading/) dominions.
by: David Baxwell
Start an Internet Marketing Business with Very Little Investment
You can start an Internet marketing business with a very small investment. As opposed to the off-line world on the online world you can start a business very cheaply. It no longer takes $50,000 or more just to start a small business. You can literally start an Internet marketing business with an investment of less than $100.
There are just say few necessary things you need to start your journey to online success.
First, you'll need your own domain name. Having your own domain name is an absolute must if you want to start a legitimate business online. In the off-line world you would need a storefront, in the online world you need a domain name. There are many places to get a good domain name and the cost can range in between $1 and $10 depending on where you buy the domain name.
Next, you'll need hosting. A hosting account is where you will store the files necessary to build a website. A hosting company will host those files and stir from to your end-user for you. This makes a lot of sense and is very easy to start up. You can find hosting accounts for as little as $10 or less a month. Now, as you business gets bigger you will need to upgrade your hosting. Once you become big online you'll need a very old reliable host because you could be serving hundreds if not thousands of people an hour on your website.
You will also need a way to take money. As a business owner just starting out PayPal is a very good option for collecting money online. It is super simple to set up any fees will not kill you. Also, he will need your own shopping cart. You can find open source shopping carts that you can use for free. The best part about most shopping carts is it automatically integrate with PayPal. One of the advantages of using open source shopping carts, is that they usually integrate with PayPal. Make sure to read the documentation and find one that does.
Next, you'll need an autoresponder account. An autoresponder allowed you to collect the name and e-mail address of your website visitors. This is not spam. This is called opt in e-mail marketing. What you want to do, is put a form on your site that asks the visitor for their name and e-mail address. This way, they're giving you permission to contact them. Now, you'll want to bribe them with some type of freebie or really good information to get them to give you their name and e-mail address. Unfortunately I cannot go into detail on this in this article. But, you will want to research more into auto responders and opt in e-mail marketing.
You can get pretty much every service I have mentioned in this article for less than $100 if you budget right. Don't go for the first thing you find, look around and find the best deals for the best services. There is no reason why you can't get a domain name, hosting, a free open source shopping cart and an autoresponder account for less than $100.
by: Shannon Herod
There are just say few necessary things you need to start your journey to online success.
First, you'll need your own domain name. Having your own domain name is an absolute must if you want to start a legitimate business online. In the off-line world you would need a storefront, in the online world you need a domain name. There are many places to get a good domain name and the cost can range in between $1 and $10 depending on where you buy the domain name.
Next, you'll need hosting. A hosting account is where you will store the files necessary to build a website. A hosting company will host those files and stir from to your end-user for you. This makes a lot of sense and is very easy to start up. You can find hosting accounts for as little as $10 or less a month. Now, as you business gets bigger you will need to upgrade your hosting. Once you become big online you'll need a very old reliable host because you could be serving hundreds if not thousands of people an hour on your website.
You will also need a way to take money. As a business owner just starting out PayPal is a very good option for collecting money online. It is super simple to set up any fees will not kill you. Also, he will need your own shopping cart. You can find open source shopping carts that you can use for free. The best part about most shopping carts is it automatically integrate with PayPal. One of the advantages of using open source shopping carts, is that they usually integrate with PayPal. Make sure to read the documentation and find one that does.
Next, you'll need an autoresponder account. An autoresponder allowed you to collect the name and e-mail address of your website visitors. This is not spam. This is called opt in e-mail marketing. What you want to do, is put a form on your site that asks the visitor for their name and e-mail address. This way, they're giving you permission to contact them. Now, you'll want to bribe them with some type of freebie or really good information to get them to give you their name and e-mail address. Unfortunately I cannot go into detail on this in this article. But, you will want to research more into auto responders and opt in e-mail marketing.
You can get pretty much every service I have mentioned in this article for less than $100 if you budget right. Don't go for the first thing you find, look around and find the best deals for the best services. There is no reason why you can't get a domain name, hosting, a free open source shopping cart and an autoresponder account for less than $100.
by: Shannon Herod
Dos and Don’ts While Buying Estate Investment Real Estate
There a several proven ways to indulge in buying estate investment real estate and put yourself on the road to real estate wealth. Investors often "flip" properties by buying a property, renovating it soon after and then selling it for a profit. This method is proved to work for investors who study the market carefully and make good assumptions about the profit they might make by buying estate investment real estate at a certain point of time. Although it is a good idea to invest now, buying estate investment real estate is not as liquid as investing money in the stock market. So unless you have the right kind of expertise, it is advisable to opt for a different kind of investment.
Do:
- Research alone may not help at all times. While buying estate investment real estate, it is important to consult a local real estate professional. This will provide you help in finding and evaluating an investment property before you can buy it.
- The location that the property is situated in always impacts the value of any piece of real estate. Research about current position of the property is a must.
- Whether the property chosen is affordable for you or not must be looked into rationally before making the decision, which involves some more homework. Budget every expense that might be involved in the process.
- Having an achievable exit strategy even before entering is very important while buying estate investment real estate. It is a big investment decision and unless you have a ‘plan B’, it could be highly risky. Especially with the current economic situation, when the real estate business is susceptible to sudden changes, this step is a must.
Don’t:
- Do not overpay for the property. Good research and consulting professionals will help you avoid this mistake. Sometimes, mismanaged properties that require some fixing up work can be profitable as well. So make sure you double-check each prospect many times.
- Abide by the rules. Do not overlook or disobey any rules and regulations. There are strict laws in the real estate field and noncompliance could result in hefty fines.
- After buying estate investment real estate, if you wish to give it out for rent or lease, make sure you know the prospective clients, their credit and employment details. Whether they will be able to afford the regular payment scheme that is agreed upon or not should be looked into.
- Do not take on more than you can handle. While buying estate investment real estate, start off on a small scale. Investing too much at once increases your risk of losing everything at one shot. Major investments made in areas that won't provide a decent rate of (ROI) return on investment should be avoided.
- If you enter a partnership, you should be comfortable with the arrangement. At least one of the partners should have good knowledge of the business.
by: Otto Ruebsamen
Do:
- Research alone may not help at all times. While buying estate investment real estate, it is important to consult a local real estate professional. This will provide you help in finding and evaluating an investment property before you can buy it.
- The location that the property is situated in always impacts the value of any piece of real estate. Research about current position of the property is a must.
- Whether the property chosen is affordable for you or not must be looked into rationally before making the decision, which involves some more homework. Budget every expense that might be involved in the process.
- Having an achievable exit strategy even before entering is very important while buying estate investment real estate. It is a big investment decision and unless you have a ‘plan B’, it could be highly risky. Especially with the current economic situation, when the real estate business is susceptible to sudden changes, this step is a must.
Don’t:
- Do not overpay for the property. Good research and consulting professionals will help you avoid this mistake. Sometimes, mismanaged properties that require some fixing up work can be profitable as well. So make sure you double-check each prospect many times.
- Abide by the rules. Do not overlook or disobey any rules and regulations. There are strict laws in the real estate field and noncompliance could result in hefty fines.
- After buying estate investment real estate, if you wish to give it out for rent or lease, make sure you know the prospective clients, their credit and employment details. Whether they will be able to afford the regular payment scheme that is agreed upon or not should be looked into.
- Do not take on more than you can handle. While buying estate investment real estate, start off on a small scale. Investing too much at once increases your risk of losing everything at one shot. Major investments made in areas that won't provide a decent rate of (ROI) return on investment should be avoided.
- If you enter a partnership, you should be comfortable with the arrangement. At least one of the partners should have good knowledge of the business.
by: Otto Ruebsamen
Good Investment Properties available in Maryland and Washington D.C.
Maryland investment property is definitely something to consider, especially in light of the recent state of foreclosures. While foreclosures are bad news for the seller, they can be really good news for people looking to make a new and lucrative investment. Remember that with foreclosures, the parties involved would like to get rid of the property as soon as possible. While this does mean a good bargain for potential investors, it's also important to be clear about a few things.
The Minimal Risk Factor
One of the biggest advantages of pre-foreclosure investments with Maryland investment property is that there is a greatly reduced risk factor. From the point of view of the seller, they want to get out of the house and be done with the bank as soon as possible. From the point of view of the bank, a house that is foreclosed doesn't make them any money. In other words, both the bank and the seller will be willing to sell as quickly as possible. This will probably mean reduced prices as well as more flexible payment plans.
Some other factor to consider with Maryland investment property are any hidden or extra costs that come about when rehabbing the property. Because everyone involved would like to move the property as quickly as possible, your extra costs will also be greatly reduced. You can easily negotiate for a lower down-payment amount and you'll find that other small fees can also be reduced or cut out completely. Bear in mind that foreclosures are also known as a Buyer's Market. This is because the buyer not only has the upper hand; they also have the most to profit.
What Else?
If you're looking at Maryland investment property for your own use, then foreclosures are a speedy option. Unlike other homes, where you will probably have to wait for the tenant to leave, these homes are either already vacant or the owners are about to vacate. This means that you can move in almost as soon as the deal is closed. You will however need to show proof that you are able to purchase the foreclosed property. If you are using your own cash, proper financial records are required. For example, your bank statement. If you are using financing, you will need to show that your loan is approved by your lender.
If you are a first time investor or are unsure about investing trends, putting your money into pre-foreclosures is not only lucrative, it is also a relatively safe investment option. If you are familiar with house renovation and redecorating, there's nothing like foreclosure investment to make some quick and good money. All you have to do is get the foreclosed home at a bargain price, do the necessary renovations and repairs that add value to the property then put the house back on the market for a good profit. Many people have earned sizable capital by renovating their properties this way.
While you can handle your pre-foreclosure bids yourself, it might be a good idea to hire an agent to help you out. In that way, you'll not only gain access to the best homes, you'll also be in a better position to make a good bid and get the best bargain for your Maryland investment property.
by: Robert Kilonzo
The Minimal Risk Factor
One of the biggest advantages of pre-foreclosure investments with Maryland investment property is that there is a greatly reduced risk factor. From the point of view of the seller, they want to get out of the house and be done with the bank as soon as possible. From the point of view of the bank, a house that is foreclosed doesn't make them any money. In other words, both the bank and the seller will be willing to sell as quickly as possible. This will probably mean reduced prices as well as more flexible payment plans.
Some other factor to consider with Maryland investment property are any hidden or extra costs that come about when rehabbing the property. Because everyone involved would like to move the property as quickly as possible, your extra costs will also be greatly reduced. You can easily negotiate for a lower down-payment amount and you'll find that other small fees can also be reduced or cut out completely. Bear in mind that foreclosures are also known as a Buyer's Market. This is because the buyer not only has the upper hand; they also have the most to profit.
What Else?
If you're looking at Maryland investment property for your own use, then foreclosures are a speedy option. Unlike other homes, where you will probably have to wait for the tenant to leave, these homes are either already vacant or the owners are about to vacate. This means that you can move in almost as soon as the deal is closed. You will however need to show proof that you are able to purchase the foreclosed property. If you are using your own cash, proper financial records are required. For example, your bank statement. If you are using financing, you will need to show that your loan is approved by your lender.
If you are a first time investor or are unsure about investing trends, putting your money into pre-foreclosures is not only lucrative, it is also a relatively safe investment option. If you are familiar with house renovation and redecorating, there's nothing like foreclosure investment to make some quick and good money. All you have to do is get the foreclosed home at a bargain price, do the necessary renovations and repairs that add value to the property then put the house back on the market for a good profit. Many people have earned sizable capital by renovating their properties this way.
While you can handle your pre-foreclosure bids yourself, it might be a good idea to hire an agent to help you out. In that way, you'll not only gain access to the best homes, you'll also be in a better position to make a good bid and get the best bargain for your Maryland investment property.
by: Robert Kilonzo
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