Posts tagged: capital

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.

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.

You Can’t Afford Not To Pay These Vital Business Costs!

business capitalAll kinds of costs come with running a business. Of course, a lot of your budget should go on your primary operations. Many companies choose to invest money in things like marketing, great equipment, and a large workforce. But while these costs are helpful, some expenses are absolutely essential. Here are some of the costs you must pay to keep your business running smoothly.

Workplace Upkeep

Whether you operate out of an industrial building or rented office space, you’ll likely have to pay monthly costs. While the main cost of the building is a big concern, there are also other costs associated with the upkeep.

Naturally, you’ll also have to pay for utilities like water and electricity. You may also need building maintenance work from time to time. Some workplace problems can cause you and your employees illness. Make sure everything is well-maintained to avoid health and legal problems.

Sometimes rented office space covers a lot of the upkeep themselves. By renting out a small office unit in a business building, you won’t have to worry about handling building maintenance costs. This can save a lot of money.

Taxes

All companies must file business income taxes each fiscal year. Failing to do this can result in penalties and fines for your business. If you fail to pay the full amount back, you’ll have to pay extra interest on the rest. Therefore, it’s essential you plan for this cost in advance and handle it on time.

What you pay and the forms you fill out can vary depending on what type of business you’re running. It can get confusing trying to handle it all on your own. Most companies enlist the help of an IRS lawyer to make sure their taxes are handled professionally.

If you can’t pay your taxes on time, you can sometimes get a short extension. The good news is you can get all kinds of deductions from your business tax. Things like office supplies, premises, and work-related travel can often be taken off your tax bill. This can make the costs much easier to handle, so keep receipts for anything you might be able to deduct.

Payroll

You’ll need to pay your employees what you’ve agreed to on time, every time. Terms are often set out in employee contracts about how your employees will be paid and when. Some businesses choose to pay workers weekly, some monthly. Either way, make sure employees get their money.

Paying employees late can severely reduce their motivation to work. Not only that but if you fail to fulfill payment agreements with employees you could find yourself in legal trouble. If your payroll is becoming a crippling cost, you may need to look into downsizing. However, not paying employees is never a suitable option.

Internet Connection

The internet is essential for many business operations nowadays. Make sure you pay for internet connection with the best uptime- this is the most important factor for company internet.

It’s also a good idea to use I.T. services to handle any computer or internet problems around your business. Computing problems can affect your business’s productivity, so it’s important to pay to keep it running well.

Top 5 Legal Tips For Fledgling Startups

startup business ideasSo – you’ve had an excellent idea for business and thought it might be a success? Well, congratulations. It’s an amazing experience owning a startup and seeing something grow from an idea to an actual business. However, there are a lot of things that can go wrong – unless you have the right protection in place.

Most business owners understand the importance of security – but you have to start sooner rather than later. In fact, ask any legal expert and they are likely to tell you to sort out your protection before you even write your business plan. In this guide, we’re going to reveal five simple legal tips for fledgeling startups. Take a look and make sure you have the right protection.

Consider your structure

Before you start work, you will need to register your business with HMRC. It’s advisable to register as a company, rather than a sole trader, as it gives you a little extra protection. You should have a chat with an accountant, too – they will tell you the type of company you should be to save on your tax bill.

Contract everything

From the second you start dealing with other people, make sure you have a contract. It could be a partnership or an employee – it can also be a supplier or investor. In short, anyone that has any contact with your business needs to be held in a contract. It outlines everyone’s responsibilities and expectations and holds both parties to account.

Intellectual property

Don’t forget that your ideas have value, too – and it’s essential you protect them. Trademark registration is a simple process, as is applying for patents or copyrights. Ensure you do this as early as possible. If you have a very good idea, you don’t want someone stealing it from you and making a fortune off the back of it. It’s happened many times before, and will continue to do so if you don’t have intellectual property protection.

Hire a business lawyer

Don’t underestimate how useful a business lawyer can be for your fledgeling startup. They can help you cover yourself in a legal sense, and highlight areas of potential improvements. If someone files a claim against you, they can react quicker as they already understand your business. Just like having an accountant, it will save you money in the long-term. The amount of legal help you might need will be enormous as you grow your company. It makes sound sense – financial and otherwise – to use the same person.

Get insurance

If the worst happens, you have to have insurance. No matter how safe you think you are operating, there is always the chance of something happening. A slip, trip, or fall on your premises can lead to an expensive lawsuit. An unhappy client could pursue you for damages – even if you think you have done nothing wrong. It all adds up to a large payout, which could blow your startup out of the water before you even get started. Insurance will give you the peace of mind you need to make your business success.

3 Things You Must Do Before Moving To London

moving to londonLondon is one of the most sought after places to live on the planet. People from all corners of the world would love the chance to live in this energetic and vibrant city. Whether you’re moving closer to your family or for your job, living in London is unlike anywhere in the world. You have incredible shopping destinations, endless culture and fabulous entertainment right on your doorstep. But due to it’s popularity, buying a home in London can be challenging. From high house prices to finding a suitable area, there is plenty of things you must consider. To make the process easier, there are three things you must do first.

Do your homework

London is an enormous city that is full of different boroughs all of which have their own unique qualities. Use accommodation search engines, talk to friends and search on Google to establish which boroughs might appeal to you. Do plenty of research into each one including property types, transport links and local entertainment. The house prices will also vary from borough to borough and how close you want to live to the city centre. So find out what the average prices are as this will help you budget and plan ahead. If you have a family, you should also research what schools, parks and attractions are in each borough too. This should help you choose some viable places to start your search.

Visit the city

It’s not alway wise to move somewhere you have never been before. So if you have never visited London before, you should always take the time to do so before moving here. You may find that city life is not for you after all or that the areas you can afford to buy in aren’t what you thought they would be like. If you have visited before, you should still visit again but from the perspective of a buyer not a tourist. You can spend your visit contacting Canary Wharf estate agents or viewing potential properties. Try to fit in as many viewings as you can to see what options are available. You can also use this time to explore the borough’s you researched previously. Doing this will help you determine whether moving here is right at this moment in time.

Look for work

With people from the UK and beyond looking for employment in London you face stiff competition. The sooner you start your search for work the better. If you work for a large company, you may be able to relocate to their London office. Or you might want to look for something completely different to what you are doing now. Sign up to recruitment sites or contact an agency to help you find a suitable role. Securing work should be a top priority as it will help to fund your new home and life.

Whatever your reason for wanting to move to London, these tips will help make the transition go a lot smoother. Take the time to do each action and carefully consider each decision you make. Acting on impulse may sound exciting, but it could have expensive repercussions.