Real estate investment seems like a sure-fire way to get rich — after all, land will always be valuable. However, real estate is a dangerous game, and you stand to lose a great deal by jumping in without experience or education.

Real estate investment is more than buying and selling properties: It is buying and selling the right properties at the right time. To get a sense for the rights and wrongs of real estate, you need to take baby steps into this investment opportunity. You can also get some good advice by following real estate experts like Than Merrill on Twitter. This guide will show you how to put one foot in front of the other, and soon you’ll be walking into a successful real estate investment career.

Understand How Real Estate Makes Money

Real estate properties don’t magically provide you with bundles of cash. Rather, there are four discrete ways you can increase your wealth through real estate:

• Cash flow income. You can buy real estate properties and use them to generate a steady stream of incoming cash. For example, you might buy or build apartment or office buildings to collect rent. As long as your tenants are trustworthy, you can usually enjoy a healthy income from this method.
• Appreciation. Unlike most other items you own, your real estate properties will likely increase in value for a variety of reasons. Real estate appreciation is a risky game that requires experience with specific markets. Generally, it is riskier than buying properties for cash flow income.
• Related income. “Specialists” in the real estate industry, such as brokers or management companies, make money by buying, selling, and managing properties. Typically, they make a commission of the total, meaning their income is less than investors and owners, but their risk is also lower.
• Ancillary income. Ancillary investments include sources of revenue like vending machines or laundry facilities strategically placed around real estate properties. For some investors, these mini-businesses can generate significant profits.

Know About Different Types of Real Estate

Not all real estate operates on the same market, and not all properties offer identical rewards. There are five primary types of real estate as well as one investing option that is closely tied to real estate:

• Residential. Houses, apartment buildings, townhouses, vacation houses — anywhere someone can live is considered residential. You determine the length of the tenant’s lease, but most residential rental properties operate on a 12-month basis.
• Commercial. Office buildings and skyscrapers are leased to companies and small business owners for several years at a time. This offers you more stability in your cash flow, but might prevent you from capitalizing on a hot market.
• Industrial. Warehouses, distribution centers, storage units, and other special-purpose properties can be leased by tenants for short periods.
• Retail. Shopping and strip malls as well as other retail storefronts can be lucrative, especially if you request a percentage of your tenants’ sales in addition to base rent.
• Mixed-use. Properties that combine any of the above two (or more) real estate types into a single project. These are becoming incredibly common in urban areas, where retail or office space combined with residential space provides higher quality of living and greater income potential.
• REIT. You invest in real estate investment trusts (REITs) the way you would a stock or mutual fund. However, unlike stocks and mutual funds, REITs are composed entirely of real estate properties There are different types of REITs that work with specific types of real estate. In fact, investing with REITs before you buy your own properties is a safe way to become more familiar with different markets.

Find Someone Who Provides Targeted Advice

If you are attempting to begin investing in real estate with no experience whatsoever, you absolutely must find a mentor. Because real estate is so risky — and because it deals with such significant amounts of money — it is easy to make mistakes that financially cripple you for life. It isn’t difficult to find information on how to invest in real estate, but if you couple your research with advice from an ally or guide, you are sure to build a real estate investment foundation you can trust.

Determine How Much You Can Invest

Finally, it’s unlikely that you have unlimited cash to spend on your new real estate investment career. You don’t need to buy multi-million-dollar apartment complexes at the outset; if you are a successful investor, that will come in time. To begin, you should feel safe and sensible with a modest flip.

In fact, a smart way to begin investing is to assume you will lose everything you invest. If that occurs, you should still have enough money left to keep a roof over your head and food in your mouth. A smart investor knows their financial and emotional limits.

For most entrepreneurs, cash flow is a concern. Until your business starts turning a profit and growing, it can be tricky to manage all your expenses. Even when your business is doing well, there may be times when you need some additional funds to expand or take advantage of new opportunities.

When you need money for your business, your first instinct might be to head to the bank and apply for a loan. Although this has proven to be a smart move for many business owners, and there are programs in place for all types of businesses, there are some things that you need to know before you begin the process of applying for a loan. If you go in unprepared, you may be in for an unpleasant surprise.

1. Prepare to Provide a Lot of Paperwork

Since the Great Recession, banks have become a lot more selective when it comes to lending money. This doesn’t mean that you won’t get a loan if you’re financial background is less than perfect, but it does mean that you are going to have to supply a lot of information and paperwork to the lender in order to get approved. Not only will you need to provide a business plan that outlines how you will use and repay the money, but you can also expect to supply copies of cash flow statement, profit and loss reports, balance sheets, and other documentation to demonstrate your creditworthiness and ability to repay the loan. Because gathering and reviewing all this paperwork takes time, it might be several weeks before you have an answer on your application — and there will probably be times when you think you’ve turned everything in, only to receive another request for additional documents.

2. Your Personal Finances Matter

Because banks want to have a complete picture of your financial picture before they hand over the cash, you’re most likely going to have to supply information about your personal finances as well as your business finances. The bank is likely to run a credit check on you personally, as well as the business, and also request copies of your tax returns and information on all of your assets and liabilities. Again, a less than perfect personal financial history is not going to disqualify you from getting a loan, but it could affect how much you get and your interest rate.

3. You May Need to Make a Personal Guarantee

Some banks will only grant you a loan if you provide a guarantee via collateral — such as your home. That way, if you default on the loan, the bank can seize your assets as repayment. Because there is some risk inherent in personal guarantees, you need to proceed carefully.

4. The Bank Will Tell You How You Can Use the Money

When you borrow money from a bank for your business, there are limits on how you can use that cash. You can only spend it for the purpose for which you applied. In other words, if you took out a loan to purchase equipment, you cannot use that money to pay staff salaries. You need to apply for the specific type of loan you need, whether that’s equipment, real estate, working capital, or other expenses.

5. The Rules Are Fluid

Unlike other types of financing, such as credit cards, that have hard and fast rules about credit history, debt-to-income ratio, and income that determine whether you qualify, business loans do not have those same rules. Banks have the ability to look at applications individually, and evaluate all of the factors before making a decision. Being strong in one area can offset a weakness in another; at the same time, several weaknesses can’t be overlooked because you have some strengths. Be prepared to explain your finances and make your case.

6. You Have Alternatives

Finally, the bank isn’t your only option for securing cash for your business. There are a number of alternative financing options that may be a better fit for your situation. Invoice factoring, for example, can solve short term cash flow problems quickly, and often more inexpensively than a bank loan. Before you jump through bank hoops or incur unnecessary costs and headaches, explore other options and weigh them against a traditional loan.

Securing financing for your business can be a stressful process, but if you’re armed with information and know what to expect, it doesn’t have to be. Do your homework, and get the money you need without surprises.

 

When you’re a student you have a lot of demands on your time. There’s the responsibilities of studying and meeting your deadlines for reading and for writing essays. On top of that you’ll have time you want to devote to any clubs and societies you’ve joined: student theatre is no small commitment, and neither is joining a university sports team. Finally, the university experience wouldn’t be the same without the friends you make there and having free time to spend with them is a vital thing to preserve.

Today, let’s have a look at some of the shortcuts you can use to get the most out of your time as a student and make sure you’re living life to the full!

Moving House

Regular house moves are an unfortunate fact of life when you’re a student. Most people find themselves moving two or three times in the course of a standard three year course, and this carries with it all the stress of a house move later in life.

One way to cut down on the stress and worry is to look into student storage (visit byStored for more details and rates). You can pack the essentials of your life into a storage unit while you search, and even leave them there during the summer holidays so you can return and unpack at your leisure, rather than trying to fit in a house move at the beginning of the academic year!

Beating Procrastination

Procrastinating is the bane of many students’ lives. While you’re too intimidated to start a big essay, the time you spend procrastinating isn’t actually spent doing anything else useful or fun! Pointless tidying or busy work you do to avoid working isn’t time spent with your friends, it’s wasted. If you can just start, and get your essays written efficiently, you’ll have much more time to actually spend on things you want to do.

Try the Pomodoro Technique to cut big tasks down to size. Set a 25 minute timer and work with your full concentration for those 25 minutes then take a five minute break and reset the timer. Every 4 intervals take a longer break to avoid burning out. This cuts even the biggest task down into manageable chunks and helps you maintain a high level of concentration!

Getting Up on Time

If you can get up on time, you’ll have a few more hours to spend doing valuable work in the morning, meaning you’ll have more time for fun in the evening! Try putting your phone in a mug to magnify the sound of your alarm and make sure you can’t ignore!