Have you realized that NOW is a GREAT time to invest in real estate, but you just don’t have the money to do it? Here are several ways you can generate cash for your next investment to make sure you can cash on the great opportunity that this market is providing.
One big Detroit Area investor, Darrick Scruggs, the owner of My First Michigan Homeand many other companies, said, “Most of your problems will disappear if you become world-class at raising money.”
Most people will read this and think that I am stating the obvious. Many of these same people will say that they don’t have any money. If they had money, they say, THEY would be raking in millions, too.
I’m here to tell you that you NEED money, but nobody said it had to be your own. I know! Many of us have heard that, too. So how do you use “other people’s” money?
Besides using your own cash, have you considered….
1. Make Money as a Middleman: You can wholesale properties until you get enough cash to do bigger, more profitable deals.
2. Borrow from a Lending Institution: Today this is not always so easy, but can be done, still. Use the money for your investments. Don’t get distracted using that borrowed money for other things.
3. Refinance Your Home: You can (a) get more money to invest, or (b) use the reduced monthly payment to make it easier to create a positive monthly cash flow from the property or other investment that you will buy.
4. Use Credit Cards: Obviously, you have to be careful with this since most credit cards charge a high interest rate. However, if you can make a quick $20,000 profit within six (6) months, would you be willing to pay around $4,000 in interest payments? (This figure comes form borrowing $30,000 @ 30% for 6 months. Most people can get better terms on their credit cards than this.)
5. Obtain a Second Mortgage: Tap into your home equity, and use that money for a killer investment.
6. Borrow from Your Retirement (401K, 403b, Roth, SEP, etc.) Account: You can use this as collateral for a loan and use this money for investments.
7. Solicit Other Active Investors: These people are always looking for ways either to have their money work for them harder or make good money without them having to do any work.
8. Use Money from Passive Investors: How many people do you know complain about their 401K shrinking? They have less control over the bigwigs at the companies overseeing mutual funds than they do you. If you know how to make them money and can show them how you are going to make them money, many of these people will feel safer investing with you. Many of these people would be delighted if you could promise them a return of 8% – 10%.
9. Team with Other Investors: Sometimes, there will be a project where you have some expertise but missing another piece of it. Other times, you might have the idea but not the money or vice versa. Find a another person who has your “missing piece.”
10. Friends and Family: This is a possible source, but be careful with this one! Really!!!
11. Borrow from a Hard Money Lender: This is similar to a credit card, but while they are expensive, they often are cheaper than a credit card; however, the repayment terms are usually shorter. This is suggested more for quick turning than it is for rentals. You can use their money to gain quick chunks of money for only a small price compared to your quick profit.
12. Buy on Land Contract: Usually the price will be higher, but you do not have to use as much of your own money. Run the numbers to make sure it works for you, but several investors got started this way.
Use these techniques responsibly. These are great ideas, but if they are used improperly, you can create some tough situations for yourself. Do your due diligence on the investment opportunity. Make sure that you have a backup plan in case your main plan backfires. These are the two (2) most common investing mistakes.
Make sure that you have a plan and that you thoroughly thought out that plan. You do not want to make a habit of using borrowed money just to lose it. We all make mistakes, but make sure you do your due diligence to reduce your chance of making them. Calculate your risk.
No matter your investment, remember this! NEVER “invest” more than you can afford to lose. That’s called GAMBLING on the Hope-n-Pray method. Save this for your fun money. Feel free to ask me more questions about that.
SEARCH ENGINE KEYWORD RESULTS :
- how to raise capital robert kiyosaki
- which of the following is not one of the suggested ways to find money to invest
- robert kiyosaki what are the 10 things to look for when raising capital?
- which of the following is not one of the recommended solution if you are having trouble making payment on your consumer credit
- which of that 1 of the suggested ways to find money to invest
- what are some suggested ways to find money to invest
- suggested ways to use money
- robert kiyosaki raising capital
- robert kiyosaki how to raise capital
- 25) which of the following is not one of the suggested ways to find money to invest?
In my pursuit for further educating myself when it comes to achieving financial freedom, I enrolled myself in a free online coaching in the Rich Dad Poor Dad lessons of Robert Kiyosaki.
In one of the chapters of the e-learning that I’ve been reading, Robert Kiyosaki suggested the Rich Dads Get Rich Strategies in which he used to get out of the rat race and become a business owner and investor.
I would like to share it all to you my readers so we can also use it to achieve financial freedom just like what Robert Kiyosaki did:
STRATEGY 1: Become financially literate.
The number 1 strategy to get rich is to become financially literate. Financial literacy is not always taught in schools. It requires proficiency in several areas: economic history, accounting, taxes, investing and building businesses. These are difficult subjects but don’t let the difficulty scare you.
Becoming financially literate has nothing to do with how far you got in school. It doesn’t matter whether you’re a failure in school, a jeepney driver, a janitor, or an executive of the company. What matters most is that you’re willing to educate yourself.
One of the things that I learned about financial literacy is on cash flow patterns. Based on these cashflow patterns, you would be able to determine if you belong to poor, middle class or rich persons.
Kiyosaki compared people with average financial intelligence vs. people with advanced financial intelligence:
People with average financial intelligence know only:
- Bad debt, which is they try to pay it off.
- Bad losses, which is why they think losing money is bad.
- Bad expenses, which is why they hate paying bills.
- Taxes they pay, which is why they say that taxes are unfair.
- Climbing the corporate ladder instead of owning the ladder.
- Buying shares of a company rather than selling shares of a company they own
- Investing only in mutual funds or picking only blue-chip stocks
People with advanced financial intelligence know the difference between:
- Good debt and bad debt
- Good losses and bad losses
- Good expenses and bad expenses
- Tax payments and tax incentives
- Corporations you work for and corporations you own
- How to build a business, how to fix a business, and how to take a business public
- The advantages and disadvantages of various investment vehicles: paper securities, real estate properties, and businesses
STRATEGY 2: Work to Learn
Most people focus on working for pay that rewards them in the short term; over the long term, this strategy can be disastrous because it doesn’t build up enough assets for a stress-free retirement. You’re not sure if your employer will be there for the next 10 years. What if you were laid off? Or what if the company closed?
If you want to be financially free, you need to seek work for what you’ll learn, not for what you’ll earn. This is one of the main reasons why I left my previous company. With my tasks, I am no longer learning and in that way, I feel rusty. It’s not always the pay that matters. It’s the satisfaction and the amount of learning that you get. The skills you learn when you work for someone else can be invaluable when you begin to work for yourself—and if you want to be financially free, you’ll have to work for yourself.
Kiyosaki said that there are three essential skills that we need to learn from our job while we are working for somebody else. These are Leadership, Management, and Sales & Marketing.
STRATEGY 3: Find Mentors, Build a Team
They say that no man is an island and that two heads are better than one. The same applies when you want to get rich and achieve financial freedom. You need to seek out mentors and advisors who can teach you the valuable skills you’ll need to become a business owner and investor. No one climbs Mount Everest alone, and you shouldn’t try to climb your personal financial mountain without the aid of others. Without support, you’ll never reach the top.
Kiyosaki said that “business is a team sport.” One thing is certain: When you want to get rich, you need to set out to work for yourself. In doing so, you’ll need more than just friends and family—you’ll need a team of professional advisors. According to Kiyosaki, one secret of the rich is their humility. They surround themselves with people who know more than they do. They surround themselves with experts.
STRATEGY 4: Work For Yourself
Kiyosaki said that most people work first for the owners of the companies that employ them, then for the government through taxes, and finally for the banks that own their mortgages. No wonder they have little left at the end of their working days! To escape the rat race, you need to work for yourself.
You should think like Rich Dad. Instead of saying, “but the odds of a start-up succeeding are against me—nine out of ten companies fail within five years,” say to yourself, “one out of every ten businesses succeeds within five years, and mine will be one!”
STRATEGY 5: Create Money
Kiyosaki said that “Money isn’t real. It’s just an idea!” Today, we are now living in the information age. The information age allows some individuals to get ridiculously rich from nothing more than ideas and agreements. There are people who makes a lot of money in the internet either by maintaining a website or by trading stocks and forex online. Today, it’s not at all out of the ordinary for millions to be made instantaneously out of nothing.
How do you create money?
Finding an opportunity that everyone else has missed.
Learning how to raise money through investments and assets.
Working with knowledgeable people to help you reach your financial goals.
STRATEGY 6: Give Back
Kiyosaki believe on charitable giving. Personally, I also believe on the universal law of nature and that’s Karma: “Do unto others what you want others to do unto you.”
Also, we should not forget Newton’s Law that states: “For every action, there’s an equal reaction.” If you’re a greedy Scrooge, people will respond to you in kind. You have to give money to get it back. Remember, give and you shall receive.
The rest is here:
6 Strategies To Get Rich
SEARCH ENGINE KEYWORD RESULTS :
- financial strategies of the rich
- 9 Strategies to Become Rich
- rich dad strategies that work
- rich dad strategy
- robert kiyosaki believe in giving
- robert kiyosaki tax strategies
- saving strategy get rich
- strategy to become rich
Robert Kiyosaki is an investor, author, and motivational speaker. You probably have heard of his Rich Dad Poor Dad books.
Here are some of my favorite Robert Kiyosaki quotes:
- Your business revolves around your asset column, as opposed to your income column. The rich focus on their asset columns while the poor and middle class focus on their income columns
- Remember to dream big, think long-term, underachieve on a daily basis, and take baby steps. That is the key to long-term success
- You need to understand the difference between an asset and a liability. An asset puts money in your pocket and a liability takes money from your pocket. The rich understand the difference and buy assets, not liabilities
- Your future is created by what you do today, not tomorrow
The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way - Your mentors in life are important, so choose them wisely
The only difference between a rich person and poor person is how they use their time - Academic qualifications are important and so is financial education. They’re both important and schools are forgetting one of them
- The poor, the unsuccessful, the unhappy, the unhealthy are the ones who use the word tomorrow the most
- Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them. The rich have learned to recognize opportunities as well as how to create them
- The rich invent money
- Tomorrows only exist in the minds of dreamers and losers
- Inside of every problem lies an opportunity
- Remember, your mind is your greatest asset, so be careful what you put into it
- Face your fears and doubts, and new worlds will open to you
- If you want to go somewhere, it is best to find someone who has already been there
- Today is the word for winners and tomorrow is the word for losers
- When people are lame, they love to blame
- He said, ‘Raise your price. Make it ridiculous. ‘That would make people perceive it as a value
- Great opportunities are not seen with your eyes. They are seen with your mind
- The poor and middle class work for money. The rich have money work for them
- You have to be smart. The easy days are over
The last one is my favorite of this batch of quotes.
See the original post here:
Words of Wisdom: Robert Kiyosaki
Consumers shopping for a mortgage are frequently confronted with having to make a choice between complex alternatives. For example, they can select an FRM on which the rate is fixed at 5 percent for 30 years, or an ARM on which the rate of 4.375 percent holds only for five years, after which it changes with the market. On both loans, furthermore, a lower rate is available if the borrower pays points, an upfront charge expressed as a percent of the loan amount. In addition, borrowers have to pay a variety of fixed-dollar fees to lenders, and other fees to third parties, such as title agents and appraisers.
To deal with this problem, the federal government in the Truth in Lending Act decreed that lenders had to disclose one number designed to be a comprehensive measure of all costs, which borrowers could rely on in comparing one loan with another. They called it the annual percentage rate, or APR. By law, whenever a lender discloses an interest rate, they must disclose the APR alongside it.
Developing a composite measure of all mortgages costs was a great idea, but APR is the wrong measure. For one thing, very few borrowers understand it. The APR is expressed as a percent, same as the interest rate, except that the APR is somehow a composite of the percentage rate and dollar costs. How they are combined is a mystery to most. The mystery is even deeper on ARMs because the ARM rate is subject to unknown change in the future.
Few loan officers or mortgage brokers understand it either. Indeed, within most lender firms, the only ones who understand how the APR is calculated are the technologists responsible for having it programmed, and sometimes they get it wrong.
Not a Comprehensive Measure
A second problem is that, despite its intent, the APR has never been the comprehensive measure of cost it was supposed to be. A comprehensive measure would cover all costs that would not arise on an all-cash transaction, but in practice third-party charges are not covered. In principle, this is an easy problem to fix, and the Federal Reserve, in recent proposals to amend its Truth in Lending regulations, has proposed a fix. It has only taken them 30 years.
The third problem is more difficult. Cost depends not only on the characteristics of the mortgage but also on the characteristics of the borrower. A given set of mortgage features may carry different costs to different borrowers, but this is not reflected in the APR.
The most important difference between borrowers is in how long they expect to be in their house. The APR assumes they will be there for the full term of the loan, which very few are. This can lead to bad decisions.
Consider a borrower choosing between two 30-year fixed-rate mortgages, one at 5.125 percent and zero points, the other at 4.25 percent and 4.4 points. The first has an APR of 5.125 percent, while the second has an APR of 4.64 percent, suggesting that the lower-rate mortgage is the better deal. But that is only because the APR is calculated on the assumption that the borrower enjoys the lower rate over the full term. If the borrower expects to be out in five years, the APR on the low-rate mortgage calculated over five years instead of 30 — which I usually call the “interest cost” to distinguish it from the APR — would be 5.31 percent, and the higher-rate mortgage would be the better deal.
APR and ARMS
Because of the built-in assumption that the borrower will have the loan for the full term, the APR is also useless to borrowers assessing the cost of adjustable-rate mortgages (ARMs). If the borrower expects to be out of the house before the initial rate period is over, an APR calculated over the full term may be misleading. If the borrower expects to have the mortgage beyond the initial rate period, or isn’t sure, he needs to know how much risk he faces from interest rate increases after the initial rate period ends. But the APR doesn’t tell him that.
A second difference between borrowers that the APR does not account for is their tax bracket; the APR is a before-tax measure. Because mortgage borrowers can deduct interest payments and points from their taxes, any measure of cost should be after taxes.
A third difference between borrowers that the APR does not account for is their opportunity cost of funds. Because the upfront and monthly payments required by the mortgage could otherwise be invested to yield a return, that return is a cost to the borrower. For some borrowers who keep all their money in savings accounts, the opportunity cost might be 1.5 percent. For others who run businesses that always require capital, it might be 15 percent. The APR implicitly assumes that the borrower’s opportunity cost is the same as the APR.
An alternative measure of borrower cost is what I call “time horizon cost,” or THC. It makes more intuitive sense to borrowers than the APR and is easier to understand. It is comprehensive in its coverage. And it takes account of important differences between borrowers that affect costs: time horizon, tax rates and opportunity costs.
Read the rest here:
How Do You Know Which Mortgage Prices Are Lower?
Kim Kiyosaki on KITV 4 / ABC News
