Should You Invest in a Single or Multi-Family Rental Property?

As a real estate investor, one of the first decisions you need to make is whether to purchase a single or multi-family rental property. While both options offer a reliable income stream, you may decide that one feels like a better fit for you.

To aid you in the decision process, we’re discussing what to expect when purchasing a single-family versus a multi-family investment property.

Why Invest in Single-Family Rental Properties?

The first and most obvious reason many investors opt for single-family homes is that they usually have a lower price point than multi-family properties. This makes it much easier to save up for a down payment, get approved for mortgage financing, and purchase your first investment property.

Single-family homes also offer flexibility when it comes to leasing. There are two primary ways in which single-family homes can be offered to potential tenants. First, you can lease the entire property to an individual, family, or group. You can also rent out each bedroom within the home separately (say, to different college students on individual leases). If you rent to multiple people on one contract, there is a risk of having an empty home if you can’t immediately fill a vacancy after tenants give notice. In this case, you would be responsible for covering the mortgage and any utilities until you find a new renter. You must also pay for any advertising you need to find potential tenants.

Another advantage of investing in single-family rental properties is that they are relatively easy to manage on your own. However, if you’re just starting out as a real estate investor, you may still want to consider partnering with a property management company. A manager can help you handle tenant relations, property maintenance, and more while you focus on building your portfolio.

Why Invest in Multi-Family Rental Properties?

Because multi-family investment properties are larger than single-family homes, they tend to cost more upfront. This means that you’ll need to borrow more and save up a higher down payment for your purchase. While multi-family properties might be more expensive to purchase, you’ll likely see higher profits down the road because you can rent out each unit separately. This might also provide more financial security since it’s less likely that everyone in the building will move out at the same time.

Despite better opportunities for income and greater financial security, there are a few downsides to purchasing a multi-family property. First, you’ll likely have to spend more time and money on advertising efforts to ensure you can fill every unit in your building. You may also have higher repair and maintenance costs, as larger properties have a greater potential for issues.

Landlords of multi-family buildings must also dedicate a significant amount of time to tracking down rent payments, advertising available units, and generally managing an investment property. If you’re looking for something that feels like passive income, a single-family home might be more appropriate. However, you can also hire a property manager to handle the daily ins and outs of your multi-family building.

Financing Your Investment Property

If you’re looking at multi-family buildings with four or fewer rental units, you can apply for a conventional mortgage loan. However, if the properties on your radar have five or more units, you’ll have to apply for a commercial loan.

While some lenders enjoy providing loans for multi-family properties due to financial security, other lenders are more conservative. Hesitant loan officers may sneak in restrictions when underwriting the loan. Therefore, if you decide to purchase a multi-family property, it’s wise to shop around for a mortgage package before making an offer.

Ultimately, both types of rental properties have their benefits. As a real estate investor, you may decide it’s worthwhile to diversify your portfolio by investing in both single and multi-family rentals.

Mega-Merger of Barrick and Newmont Could Generate a Divestment Free for All

Gold prices are grinding higher, as the dollar remains soft. This comes in the wake of Fed Chair Jay Powell’s Humphrey Hawkins in front of both houses of Congress. He continued to keep to the script discussing the need for patience. He also said that the runoff in the Fed’s balance sheet, which has had a tightening effect, would end in 2019. While prices have been rising slightly, merger and acquisition news hit the tape.

Continue reading

Tips for Having a Budget-Friendly Vacation

Budget-Friendly Vacation

You do not have to let cost stop you and your family from enjoying a vacation. It is possible to have a great family vacation on a budget. There are several ways that you can cut your travel expenses without cutting back on fun and adventure. Here’s how:

Rent an RV

If you and your family travel frequently, then renting an RV can potentially help you save thousands of dollars per year. Your RV is your home on wheels, so you will not have to get a hotel room. For less than the cost of comparable accommodation, you can opt for a stay at an RV resort in San Diego or other in-demand destination cities. This lets you and your loved ones enjoy the perks of a standard hotel resort without the high cost. Furthermore, an RV also comes with a kitchen, so you can cook meals instead of eating out. Traveling in your rented RV is also likely to cost less than getting plane tickets for everyone going on the trip.

Look for Free Things to Do

The entertainment is one of the main things that can make a vacation expensive. One of the keys to having a budget-friendly family vacation is to look for free things to do. Public parks and beaches are examples of places that you can go for free. Most museums are free at certain times. It is a good idea to find out about the free things to do in the area before you go to your destination.

Travel During the Off-Season

Summer is the most popular time of the year for families to travel. The children are out of school, and parents are able to get time off from work. However, this is also the most expensive time of the year to travel. If you can travel during the offseason – fall, winter, or early spring – then you will be able to save a lot of money.

Collect Things Instead of Buying Them

Everyone wants to have souvenirs from their trip. However, you do not have to spend money on souvenirs. You can collect things instead of buying them. For example, you can collect seashells at the beach. You can also collect maps from the tourist offices.

Use Coupons

Many restaurants and attractions have discounts at various times of the year. You can take advantage of these discounts by using coupons. Groupon is a place where you can find coupon deals. You can also find coupons by directly visiting a company’s website.

Select a Nearby Destination

You do not need to go far to have a good time. There are likely a lot of fun places within a short drive from you. If you choose a close destination, then you can save money on gas. You will also be able to save money on the activities that you do with your family.

Use a Gas Finder App

The amount that you pay for gas will depend on the gas station that you buy it from. Even if you are only able to save a few cents, this can add up. You can use a gas finder app to find the cheapest gas station in your area.

It is possible to travel with your family on a tight budget. You can cut your travel costs by renting an RV. You can also travel during the off-season and select a nearby destination. Looking for free things to do and collecting free items are other ways that you can save money. Additionally, you can use a gas finder app. There are many ways to pull off a budget-friendly vacation, it’s just a question of which ones to choose.

Focus on Results: Where to Spend Resources for Maximum Gain

When you’re running a business, working in any kind of managerial role, or simply taking decisions on behalf of one, you have a crucial task of choosing where to spend resources to get the best results for the smallest investment possible.

One example is being entrusted with the resources of a marketing agency. Those resources might literally be money, work-hours of the team you’re managing, the reputation of your company, or even personal favors built up over time.

You need to make shrewd use of these resources, putting them into projects that bring in a bigger return. This doesn’t just mean profit. One of the most important things you can do is to start recognizing more indirect gains – from building a reputation for quality with your customers, spending money to build in risk avoidance systems that reduce loss from future projects, and avoiding false economies. Seeing the bigger picture is vital as you rate your decision making and account for it in front of others.

One of the most important factors at work here is the use of data to inform each decision you make. Using research on your own company as well as from market research agencies such as Attest, you can approach choices with confidence about what your consumers want, the extent to which they’ll trust your brand, and exactly what you can do to get it to them.

It ensures you’ll avoid problems such as over-promising. This can cause long-term harm in your company, losing trust and driving away loyal, repeat customers that success is founded on. With good data, you can start to predict the outcome of your choices – allowing you to steer towards good results and away from bad ones.

It’s important that your research and data gathering looks back as well as forward. Don’t just walk away from a project, especially if it’s gone badly (or at least, not as planned). Review your decisions, look at where your expectations differed from reality and try to work out why.

You might need to make some personal changes if your preconceptions are causing to allocate resources wastefully, or change your data gathering and analysis techniques to better your ability to predict how your choices will turn out and make sure you’re making the right ones.

Buying Part of a Business: Is it Worth It?

Buying Part of a Business

When seeking to continue to build your financial portfolio, adding investments is one idea that many choose to pursue. One way that such investments are typically made is by buying part of a business. Buying into an existing business means that you become one of the main stakeholders, owning a portion of the business itself. While this is something that is done frequently, business owners, quite often, are not aware of the many factors that are related to making this significant financial decision.

Benefits

Of course, buying part of a business may sound overwhelming, but there are many factors that make it a beneficial decision.

• Established company client base. One of the benefits of owning part of an established business is the fact the client base is already set. While a new business has to attract customers and build a group of returning clients, one that is already functioning will have this taken care of. This will allow the business owners to focus more on customer service, client retention and increasing the number of clients.

• Ease of expansion. If you happen to buy part of a business that is looking to expand, it will be much easier to do with a company that has already made a name for itself and gets good feedback from its clients. It’s also easier to get an unsecured small business loan for expansion when the company has a proven track record of sales.

• Focus on business improvements. You may like challenges and, thus, purchase part of a business that may need to make a few changes to improve. Luckily, the company has a plan of operation in place so that you can focus on how to improve it for the company’s overall success.

• Current owner knowledge. One of the best factors of buying part of a business is that the current owners will be very familiar with the company and can show you what has and hasn’t worked for business operations thus far. You, equipped with this knowledge, can then come up with innovative ideas to benefit the business.

Risks

As there are many pros to buying part of an existing business, there are just as many risks of shared ownership of a company. It is best to keep these factors in mind as you make your decision.

• Current owner practices. It would be an absolute nightmare to purchase part of a business where the owners mismanaged funds. Upon learning more about a business you may want to purchase part of, be sure to research all financial records.

• Bad reputation. Good use of customer feedback is to learn how the company fares amongst past clients. A company with a bad reputation will likely struggle with being successful.

• High turnover. In addition to clients being indicative of a company’s progress, the employees can serve the same purpose. If there have been numerous employees during the business’ lifespan, especially due to multiple resignations, this would be something to keep in mind as a problem area when taking the company on.

• Differences between owners. If the current owners are not open to change or new ideas, you could possibly run into difficulties with trying to take the company to the next level in terms of expansion, increasing profits, or employee and client satisfaction.

The choice to buy part of a company should only be made after carefully considering all factors, good and bad, that are involved. It can also be helpful to seek the help of a business adviser who can answer your questions and give guidance as you take this big step.

Ways to Save

ways to save

When it comes to our personal finances, it’s safe to say we’ve all done our fair share of worrying. With bills to pay and mouths to feed, it can seem like saving any of your money is a pipe dream. An impossibility. And, yet, we must. We have the unenviable task of doing the impossible. Or, at least, that’s how it seems. In truth, savings money can be easier than you think. With a healthy dose of will power and the right know-how, you can secure your financial future. Here are some tips to get you started.

First and Foremost, let’s talk where and when to spend your hard earned money. For starters, consider eliminated or reducing luxury spending. For example, you don’t really need that new video game, so it can wait until it’s on sale, or until you’re in a better financial position. Meanwhile, we all need things like Winter coats and shoes, so these are items worth spending money on. In fact, it might even be worth spending a little extra on these items to ensure quality. After all, you don’t want to end up spending even more from having to replace these items frequently. However, even in this situation, there’s room to save. Here’s a Mackage coupon to help you find a good quality coat and save. Which brings me to my next point…

Coupons and sales are another great way to save. Retailers employ these cost-cutting measures frequently in order to entice customers new and old and generally drum up some extra business. That’s why an eagle-eyed shopper stands to be able to take home most, if not all, of their shopping at a heavily reduced price. You may have to do your shopping piecemeal in order to maximize savings, but it’s well worth it to save that much money. You’ll also have to remain diligent in order to find thee special offers, so keep your eyes peeled like a jaguar ready to pounce on its unsuspecting prey.

Mistakes to Avoid When Investing

investing

If you’re new to investing, there’s probably quite a bit you still don’t know. While experience is the best teacher, you may be able to avoid some common mistakes by following the advice of professional advisors. Looking at some of the worst mistakes new investors can make may help you avoid these common pitfalls.

Disregarding Inflation

In whatever medium you choose to invest, it’s important to account for the inevitable cost of inflation. Your gains over several years should reflect a profit, even after considering the rise in the cost of living, since you invested the initial funds. For instance, you may invest $100,000 in bonds with a 30-year term limit, yielding a net interest of 4%, which you reinvest in more bonds at the same rate. If inflation also rises by 4%, the $311,865 you have made isn’t any better than what you might have normally saved and that money was tied up in the bonds for those thirty years.

Depending on Margins

Another big mistake new investors make is to essentially use margins as free money to finance their investments. If the investments don’t pan out, the investor is left with the debt of the margin with nothing to show for it. This isn’t much different than financing your investment with a credit card or with car title loans in Orlando. Unless you’re confident in your financial savvy, it’s better to avoid margin investments as much as possible.

Basing Investments on Rumor

Many new investors will throw their funds in on a new business or an established business with a new product just because they have heard people raving about the product. Even in cases where the product sells as well or better than expected, that doesn’t necessarily mean the stock price will see similar gains. Similarly, investment professionals recommending specific stocks on television or the internet is most often just one person’s opinion and you should have more factual information, before risking your funds on that stock. Every investor should do his or her own research.

Diversifying with the Same Risks

Everyone has heard of the importance of diversifying, but this is more than merely putting your eggs in different baskets. If all of your investments share the same levels of risk, you’re defeating the purpose of diversifying. Instead, look for investments with better risk profiles. This may mean investing in precious metals, as well as stocks, or buying bonds to add to your portfolio.

Invest, Don’t Gamble

Investing should be viewed as a long-term commitment and one for which you develop a sound plan to maximize your earnings over several years. If you’re trying to buy individual stocks on the premise that you expect a big return on one or two, you might be better off taking your money to the casino. Investing isn’t the same as gambling and even past stock performances can’t indicate a sudden increase that will lead to a personal windfall. Instead, research your investments and consider consulting a professional advisor to help you develop a promising investment strategy.

Investing can help you save for the future and ensure the financial security, but only when approached with a good strategy and the patience required for a long-term plan. By taking the time to learn about your investments ahead of time, you can avoid making mistakes that could cost you your funds. If you’re uncertain or confused about investing principles, you may want to enroll in an investing course or consult a professional advisor, before putting your savings at risk unnecessarily.

Tax Efficiency Currency Spread Betting

spread betting

When you start any sideline or freelance business, one of the most important issues to deal with is handling your income and paying your taxes. The differences are varied from country to country in how to pay your taxes and what income is even subject to being taxed. It pays to educate yourself about the best ways to shelter what income you can from the taxman, legally, of course. That knowledge and skill set may be the most valuable you acquire as you explore ways to trade online.

Spread betting is indeed free from capital gains tax in the United Kingdom. The trading practice is illegal in the United States because regulators consider the practice to be as close to gambling as possible. Spread betting got its start in the sports gambling world, but it quickly migrated over to the financial markets, where intrepid speculators can guess on the price change of a particular financial instrument.

Let’s say that you want to speculate that the price of a mining stock index is going to rise from $1000 to $1400 by the close of trading. You can find a spread betting exchange and bet $100 per point that it moves.

When you get involved in spread betting it is important to note that this is a leveraged method of working in the markets. That means that you can only put down a portion of your position into an account in order to take that position on a bet. That could mean that you only risk $50 and make $500 but it could also mean that you risk losing $500 when you bet $50. The losses can exceed the bet.

Not only is spread betting free for cap gains taxes in the UK, but you also do not have to pay stamp duty or commotions on your winnings. That makes the idea of spread betting tantalizing. You can bank more of your profits from the practice than you could be trading on other types of financial instruments. If you are in any way proficient at spread betting, you can benefit from the tax break and make a killing compared to other forms of financial investing.

It pays to understand how exactly spread betting works as well. The bid is what an investor or traders might offer to buy a security and the ask is what the market maker or broker is setting as the price. The difference between those two prices is the spread. Supply and demand. It harkens back to freshman year economics. When investors are super interested in a stock or product, the spread gets tighter and tighter. With computers algorithms getting better and better at matching buyers and sellers the spread is moving constantly. Being able to predict the movement can be a very lucrative skill to have.

While risk management in regular trading is such an important and complex topic, the same is true for spread betting. You want to be sure that you know how much money you have out there at any one time, so you can keep track of your orders and bets. Taking control of your risk profile is vital.

Day traders tend to be very good at predicting the movement of spreads because they spend all day staring at screens and trying to determine where the bid tick is going. Watching it day after day can give an intuitive feeling to traders and investors that are always paying attention to the markets. So getting into spread betting can be an effective way to diversify your income stream, with the added benefit of avoiding capital gains taxes. Spread betters in the United Kingdom can be sitting pretty if they are good at the game.

A Comprehensive Cars.com Review

Many of us have read about Cars.com online or in the latest issue of USA Today. They’ve been endorsed by national news outlets and are most often associated with the online sale, trade, and purchase of a new or used car. What some people might not know are the actual benefits of using their website. The benefits are actually pretty amazing and might be more of what you are bargaining for when it comes to buying and maintaining your car.

Benefit 1: Research Car Models

So many times people go into a car dealership and get charged extortionate sticker prices because they simply don’t know what a car is worth. Cars.com is a great place to know exactly what you are getting, the true value of the car, and just what you should be paying for your new or used car. With an easy comparison on cars.com, you can look at just about every make and model you might like to buy. All while comparing payments and learning just how much you should put down in order to finance your next car. You can also review a dealer, review a car, and read other reviews for honest comparisons by consumers just like you.

Benefit 2: The American-Made Index

Cars.com has come out a rating system, with something so many people look for in a car, a rating system that tells the consumer just how American their car really is. If you want to know what it takes to call a car American, look no further. In 2017, “Cars.com has revamped its longstanding American-Made Index for the first time. Over the AMI’s 11-year history, the number of models meeting our original criteria has fallen due to the globalization of automobile manufacturing — from more than 60 vehicles in the AMI’s inaugural year to eight last year. By the original requirements, only three 2017 models would have qualified this year.” If you’re looking to buy American made cars with American made parts, www.cars.com is the place to look for your next vehicle. Quite often buyers want to know if their engine was completely sourced in the U.S. Or they really want to know that an American vehicle was manufactured by an American car company. You can find all of that out and more in The American-Made Index.

Benefit 3: Service & Repair Options

Cars.com doesn’t just help you buy, sell and trade cars. They don’t just tell you which cars are American made and which hybrids offer more value for money when bought new. Cars.com actually offers you even more with their service and repair options. Not only can you get a service estimate and find a service center, but you can also read some great advice on car service and repairs. Cars.com offers expert service advice on maintenance, brakes, coolant systems, drive trains and transmissions, electrics, engines, and so much more. Whether you are trying to figure out what is wrong with your car, or how to fix something yourself, their comprehensive advice is well worth the read. You can also read up on the latest safety recalls and notices, so you are on the up and up when it comes to keeping you safe on the open road.

Cars are an essential part of some people’s daily lives. They get you too and from work, take your kids to practice and summer camp, get some people to and from school, and often are the centerpiece of summer road trips and family vacations. That’s why it’s important to really be knowledgeable about cars and Cars.com can keep you in the know.