Posts tagged: business

Why Flipping Houses Is A Good Business Opportunity

flipping house for financePeople who flip houses sometimes have a bad reputation because the work that they do necessitates that they be rather ruthless. To buy a house and quickly try to renovate it so that it can be sold for a profit is not an easy job at all, not least because so many factors in the success or failure of the enterprise are out of the person’s control. For instance, if someone was to buy a house and start pouring money into it to get it to the point that it is marketable and then the economy started to suffer, that person could potentially lose lots of money. It is not just shifts in the country’s economic well-being that can be a factor though. There is so much paperwork and legal fees that have to be processed to buy and then sell a house. Also, sourcing all of the materials and redesigning an entire house is something that some people spend years doing (although with the intention of creating a home rather than a profit). If you flip houses, you have to do it all much quicker. However difficult it may be, here are a few reasons why it is a great way to make money and something that you may want to consider doing:

It is not always the case that shifts in the economy are necessarily going to work against you. While it may seem rather callous, property foreclosures offer a good business opportunity. If you can buy a house as cheaply as possible, that gives you a greater chance of making a profit. Another good thing about the recent financial crisis was that it has lowered mortgage interest rates. This means that more people will want to take out mortgages, which means that there will be more potential buyers. Besides, the market is good right now. There are lots of people who are thinking ‘I want to sell my house fast’, a fact demonstrated by 5.71 million existing homes being sold last month, up from 5.47 million in February of this year. You always have to be aware of the rate of inflation, but right now is the best time to buy, renovate and sell houses in several decades.

Do not let anyone tell you that it is easy though. The sweat equity of flipping houses plays a big part in your final profits. If you do lots of the work on the property yourself, you can cut down on costs, but if you do not have the time or the skills and choose instead to hire outside labor, you can quickly see your future profits disappear. If you are not as handy with a tool belt as you’d like to be, you should consider trying to find contractors with whom you can negotiate a deal. If they work for a lesser rate, you could perhaps guarantee them work for several years.

Finally, to make money flipping houses, you have to be patient. Do not buy a house unless you are confident that it is the perfect one. Do not accept the first quotes that you receive from contractors and do not try to sell the place as soon as it is finished. Timing is everything.

Low-Cost Investments to Start Making Money From Home

investment for online businessOne of the most popular ways to secure financial freedom in this current generation is to establish multiple streams of income. It could be from multiple jobs, a personal business or even investments. With job security an ever-growing problem for people all over the world, it seems like the most secure living you can get these days is to invest in the internet and work from home. Not only does working from home bypass the minimum wage that is set in your country, you also guarantee a wide range of clientele and the ability to work with people all over the world.

But most home-based investments require a lot of money. Trading stocks, starting up a business or investing in a company takes a lot of cash to start, making it a difficult option for someone who’s climbing out of debt but still wants to secure a comfortable future financially. In order to give you a hand, here are a couple of low-cost investments to get you started with making money from home.

Low-Risk Investments

When investments are concerned, we often think about expensive high-risk purchases like stocks, foreign currencies and even property. However, among all of the investments that people can make in life, there are some low-risk ones that have a very small chance of making you bankrupt. For instance, you can learn how to trade penny stocks online as a way to practice stock trading and you could invest in land purchases instead of entire properties. There are many low-risk investment options available to you as long as you do your research and look at the stability of a market instead of the potential gains.

Penny shares are, as the name implies, very low in price, meaning you can trade them freely without much consequence. However, don’t expect to turn $10 into $1,000 in a single week, and don’t even expect to make money within the first week of getting started. It’s a gradual and slow process, but that’s the nature of low-risk investments.

For property investments, you typically have a lot of factors involved when developing a property to be sold such as the location, target audience and so on. However, when it comes to investing in land, not only is the price a lot lower because you’re factoring out the development costs, it also doesn’t have a defined use, making it a versatile purchase for your buyers.

Starting a Content-Focused Business

A business could mean anything from a YouTube channel to a small company. However, the cheaper options here are definitely content-focused, such as a video channel, news website or a blog. You can monetize most of your content with the help of advertising services, but if you’re feeling brave then you can always upgrade to affiliate programs or even offering a product.

For instance, if you have a popular blog about the history of candy, then you could compile all of your material and blogs into a book to be sold. Ebooks are a natural transition for blog owners due to the content being relatively similar. All you need to learn is how to publish your own eBook and then advertise it to your viewers, social media and so on.

A Typical Investment Portfolio

financial investmentsA typical investment portfolio consists of stocks, bonds, real estate holdings, and other types of assets that provide varying degrees of financial security. However, both novice and experienced investors are also routinely advised to buy into mutual funds when they want to build portfolios that allow for better degrees of confidence. You can confidently add mutual funds to your own portfolio by learning some of the primary advantages that they offer to investors today.

Diversification

Mutual funds provide you with the diversification that you need to get the highest degree of security from your investment portfolio. They offset the risk that can come with investing in stocks in the retail, industrial, and other sectors. They also counter bonds that have varying degrees of maturity.

Further, mutual funds are typically low in cost and more affordable than buying individual stocks and bonds. You can buy mutual funds for as low as a $200 to $300 depending on the robo-advisor or financial planning services you use. A certified management accountant like James Dondero can tell you what mutual funds offer the lowest initial investment and offer the highest degree of ROI.

Best Value

As noted, mutual funds tend to be low in cost and easier to purchase than individual stocks and bonds. They also provide you with the best value for your money.

By allowing a certified financial analyst like James Dondero to guide you in buying mutual funds, you essentially get a discounted rate per stock because you are buying in bulk. Mutual funds also help you avoid costly individual transaction fees. You can make more transactions without having to spend a lot of money.

Professional Management

Mutual funds are managed by a professional money manager. This money manager uses your money to buy stocks for you that he or she has carefully researched.

This research ensures that your investment is secure and that you reap the largest ROIs possible with each mutual fund. Professional money managers also take the guesswork out of deciding what stocks to invest in and how much money to put into each fund.

Liquidity

Finally, mutual funds are easier to liquidate than other types of investments like stocks, bonds, and real estate. When you sell your mutual funds, you stand a greater chance of getting back what you initially invested if not more if the fund appreciated in value.

However, you can only sell mutual funds once per day. You must wait until the fund’s NAV (net asset value) is calculated. The time of day that you sell could impact its value. You can get the highest ROI for your mutual funds by following the advice of a certified financial adviser like James Dondero.

About James Dondero

James Dondero began his career in the financial industry in 1984. Since then, he has become an industry leader, having worked for top companies like American Express and the GIC subsidiary of Protective Life.

He now serves as the CEO of Highland Capital Management, L.P. in Dallas. He is also the chairman of the board for companies like NexBank and HCM Acquisition Company.

Dondero volunteers extensively for academic and charitable organizations throughout the Dallas area. Some of his charities include Snowball Express, Education is Freedom, and SMU’s Tower Scholar Program. He also supports the George W. Bush Presidential Library.

4 Ways to Prepare for Bear Market Investing

money market statusBear markets happen. You can’t avoid them, so you might as well prepare for them before they hit.

First things first: What exactly is a bear market? It’s when the stock market as a whole is off by 20 percent or more from its high point. If you look at stock market trends, you’ll see that this shows up about once three years.

Preparing for the Bear’s Rampage

When the bear starts his rampage, your initial reaction may be unsettling. It will probably look like tough times are on the horizon, and you start envisioning yourself losing all the gains you’ve made financially. But don’t let the bear fool you. There are ways to not only prepare, but also to succeed with bear market investing.

If you keep your wits about you and a cool head, the market’s troubling timespan be used to your advantage. Knowing that a bear market is inevitable, there are a few things you can do to prepare for it.

Accept that the Bear Is Going to Come Along

Downturns are going to happen, and there is nothing we can do to prevent it. Just like everything else in life, the stock market has ebbs and flows. If you want to get biblical about it, look at it this way: the market giveth and the market taketh away. These swings are just a normal part of the investing game. Take advantage of the downturns when they occur and you’ll come out ahead when the bear goes back to hibernating.

Cut the Leverage

In financial circles, the term “leverage” refers to money borrowed at any level. It could be money you borrowed from a bank to buy your home, or from a credit union to buy a car. You may even have borrowed money to get into some investments.

The problem is that leverage is just a fancy way of saying debt. And debt can rapidly grow into a massive burden during challenging economic days. When you get a hint that a bear market is rearing its ugly head, you’ll want to get rid of as much leverage as you can, from both your invested portfolios and your everyday life. Doing this shields you from some major financial problems that can arise when hard times hit.

Spread It Out

This simply means to make certain all your investments aren’t sitting in one stock or fund. Diversification should be the strategy that rules your portfolio. This will give you flexibility during a bear market. To keep your assets performing at an acceptable level while the market is down, spread your money out into cash, bonds, favorite commodities, varied real estate and stocks.

Keep It Fluid

If something in your portfolio is doing well, sell some of it. Purchase some of what is not doing so well. This is the basic tenet of the “buy low, sell high” strategy that is time tested. Even when the popular trend may be going in the opposite direction, don’t jump on the “buy it while it’s hot” train. This process of rebalancing your portfolio shields you from the bear market while allowing you to sell stocks at a profit and buy bonds while they’re low.

77 Features of Mobile Banking

money in mobileSmartphone usage is on the rise across India and this has revolutionized banking, as phone users can use several mobile banking apps that improve convenience and efficiency. Banking institutions adopt new technology and increase their product offerings to retain and expand their customer base.

Mobile banking services are experiencing rapid growth and innovation, with the aim to incorporate cutting-edge technology in financial services. Opting for these services gives users different benefits, such as convenience, time saving, and flexibility.

Mobile banking applications have several interesting features that allow users to view information, perform transactions, and enjoy other value added services. Some of the features include:

Viewing

  • Bank account overview and transaction history
  • Track term deposits
  • Scheduled payments
  • Statement request
  • Credit card statement
  • Demat account overview
  • Investment details

Transaction

  • Fund transfer through NEFT, RTGS, One-time transfer without adding beneficiary or message money
  • IMPS money transfer
  • Payments for mobile bills, utility services, direct-to- home recharge, and credit card
  • Service requests for debit card, credit card, or cheque books
  • Bookings for flights, hotels, and other services

Applications

  • In My Kotak you can customize and personalize your home screen
  • Modify different settings for your account

Benefits of Mobile Banking

  • Convenient – Users do not have to visit bank branches, travel agents, or utility-service providers. You can do more than just transfer funds, with some mobile banking apps even allowing you to recharge your mobile or DTH connection, make flight and hotel bookings, and lots more, all through your smartphone.
  • Flexibility – Mobile banking in India has grown so rapidly, increasing versatility, allowing users to perform a wide variety of transactions that were previously unheard of. The message money feature, in Kotak Bank’s mobile banking app, even allows you to send funds to friends, relatives, and associates through a messaging service!
  • Safe – Almost every transaction done through your mobile phone requires authentication. Moreover, the bank will usually send you an SMS whenever a transaction happens in your account. Any mobile banking apps require 2-level authentication to prevent mobile fraud. Users need the login password (MPIN) and the activation code for authentication.

Almost every private and public sector bank in India provides mobile banking services to customers, but the services offered by some banking apps are exemplary. The app from Kotak Mahindra Bank is notable in this regard. Some of the innovations give users the ability to customize settings, setup transactions and view information. This adds several benefits to the user experience.

Settings

Certain mobile banking apps allow users to even customize their banking settings. This means that users can:

  • Add or delete multiple customer relationship numbers
  • Personalize the Home Screen

Transactions

Banking transactions are redefined with mobile banking, as they are no longer restricted to fund transfers or payments. Users can perform the following actions:

  • Money transfer – Through RTGS and NEFT
  • IMPS fund transfers – generating one-time password for IMPS2M
  • Customer can view/modify the MMID
  • Bill payments – utility services, mobile or DTH services, redemption requests, balance transfer, purchase, cancel request
  • Service requests – request add-on card, auto debit for credit card payments, report lost or damaged cards
  • mStore – Book flights, buses and hotels

View

Users can also track their financial activities, not just in terms of transfers executed via the app. You can access and update information related to the following:

  • Activity – bank account, Demat account, investments, and credit card
  • You can also create or modify your profile, if you’re the primary CRN, go to Settings> Mange Profile and change the CRN, the same goes for modifying one. This is only applicable if you’re the primary CRN.
  • Financial History – Credit card summary, bank account summary, My investments, bill pay, mobile recharge, JIFI

Technological innovations are driving rapid growth across all sectors and banks are taking the lead by offering new and improved services to customers. The scope of mobile banking is only likely to grow in the coming years.