Internet Home Based Business – Make a Living at Your Place

An Internet home based business is fairly easy and simple to implement. All that you need is a computer with a fast working internet connection and a bank account where your online money can be transferred to, without leaving the most important ingredient in your home based business i.e. Money!!!, and most reassuring that all this to be done with the luxury of your home.

Before jumping into the Internet home Based Business, keep in mind a few tips and tricks to help you do a successful trade. First of all, choose the programs for business which have been proved by other users that they really do work and give a reassuring amount of profit. This will help you deeply in reducing your losses if you are a new internet business trader as you would be choosing only the best to do business with.

Have extensive research to search for trading or asset programs, those which take the least investment money and give out the highest return. Make sure they do not have any hidden conditions for the businesses and the trade is fair and profitable.

As you are going to be a Rookie at this Internet Home Based Business, therefore do not expect a lot of profit from your business trading. Don’t go to spend more money if you don’t know how it works. Start making maybe a few hundred dollars for a start from your business and when you know how it really works, then you can increase in your investments for larger amounts of profit.

Internet home based business has given a lot of leverage to the traders sitting at their homes to make solid amounts of money. But ultimately, it is up to you as you know your strong holds and your skills, so invest in a business of which you are sure to get money back guarantee. Make sure the programs you chose are not scams and get as much info regarding them as you can. Stay safe from the scammers and have a profitable, pleasurable, congenial and reassuring Home Based Business where you can trade even being with your family and relaxing on your comfortable couch.

Pros and Cons of Alternative Financing for Investment Properties

It doesn’t matter whether you’ve been in the real estate investment business for decades or you’re just starting to get involved, one of the most important things to consider is the best way to sell your properties. Should you use alternative methods for financing investment properties you’re selling? In other words, should you offer the buyer any special deals? If the answer is yes, this is called Alternative Exit Strategies or Alternative Selling Strategies. The point is, do you want to tie yourself up holding on to a property or do you just want to get rid of it, even if you take a hit when you sell?

Conventional Home Sale

Let’s take a look at a typical house sale and see what makes the most sense. Let’s say you have an investment home that you’ve bought and rehabbed, and you’ve set a sale price of $175K. It’s a fair price, it’s at market value and everything seems right. But what happens if the house doesn’t sell? Do you sit on it and hope for the best? Do you lower the price? If so, what do you lower it to? Let’s say you decide to lower the price and it ends up being sold at $152K. After closing costs and realtor commissions and seller concessions, you’re probably only going to net about $135K.

Alternative Method for Selling the Home

Let’s say you’re able to sell the home to a rent to own buyer or a lease option buyer, and you’re able to get full price of $175K. You also get their option deposit – let’s say they give you $8.75K (5% down) in option deposit money. But then you’ll probably have your own closing costs in the future along with real estate commissions. So you end up netting about $150K in net proceeds from that future sale. But you also got $8.75k down today, so your net proceeds are really $158.75K. Then you’re going to have cash flow every month for the next 12 to 24 months. You’re also going to be paying down the principal and creating equity. That might be another $200 a month. You also get to depreciate the property on your taxes at about 3.5% of the property value. Plus you have a lower tax bracket because it’s capital gains taxes instead of ordinary income tax.

The Bottom Line

So at the end of the day you’ve netted from this sale, with all the different tax benefits, about $175K net over the course of that one or two year agreement. This alternative financing exit strategy simply gives you more money. It seems like a no brainer, don’t you think?

Pre-Closing Steps to Create a Great Residential Investment

An investor can easily step back after placing a project under contract and feel that until closing that there is little or nothing to do. Unfortunately, this is a critical mistake. Nothing could be further from the truth. Investors have to look beyond the closing activity and focus on their reports, market studies, and other information to develop plans, budgets, capital improvements, schedules, staffing and service additions to boost earnings, reduce costs, and otherwise secure the investment.

Sometimes thousands of dollars per month can be cut with a program of leak repairs.

Developing plans to place units on individual meters can net $30 to $60 per unit in additional profitability.

Examining the current management’s operation and developing techniques to add value that converts to higher rents or higher occupancy can net huge results. In one case I’ve seen effective occupancy was 84%. By changing office hours effective occupancy increased 10% and increased the property value by more than 50% because of the marginal effect on profits.

Creating plans to accelerate changes to the property to reposition or to turn over underpaying residents can create huge increases in revenue, profitability and value. Couple this with a plan to sell the property quickly after taking over and very large gains can be netted to the investors in a very short period of time.

In another instance the property had several undeveloped unoccupied plots. Keeping these off the note actually increases the value of the property because in general value is based upon profitability for the rented units. In turn, the buyer can turn around and potentially sell plots to achieve an immediate gain.

Ideas like these are found by walking through the historical expenses, old utility statements, the appraisal, the engineering report and surveys. Next, you should examine the properties zoning and see what opportunities this may offer.

The thorough buyer will spend days investigating competing properties management and marketing. Often times, there are differences that can be exploited for real gains.

Finally, traffic studies should be reviewed and frontage compared. If a property can be acquired with strong traffic seeking signage permits often can creates significant revenue for investors.

In short, the pre-closing period is an opportunity to examine your asset and with imagination, dedication, study, and intense review profits can be increased, risks can be reduced, plans to make early gains developed and the general asset value heightened to the advantage of you and your investors. Good luck and great investing!