Be A Rebel: Contrarian Investing

 Flowers  Comments Off on Be A Rebel: Contrarian Investing
May 282024
 

Buying stock on a hunch that it may go up when all indicators are that the particular stock of interest is destined for a down turn is known as contrarian trading. While this particular type of trading is incredibly risky it can also provide astonishing payoffs to savvy investors. The truth of the matter is that most people in a position to provide trading advise are the very ones listening to the same advice they are providing to you. They do not, for the most part, formulate their own opinions, theories, or hypothesis but rather follow the very same market trends and prediction models that most of the other advisors and brokers are using as well.

If you wish to be successful when it comes to contrarian investing you must first learn to think well outside the box. By learning where the vast majority of traders (by this I mean 80-90% of investors not a mere 60 or so percent) keep their money and by then keeping an eye on the market for indicators to buy elsewhere you can seriously increase your personal wealth by going against the flow.

One important thing to keep in mind with this particular sort of investment strategy is that it is a high-risk type of investment. Chances are that you will be wrong on occasion when taking the road less traveled. In fact, the chances are that you will be wrong more often than not. With this particular style of trading one must trade quickly and work to keep losses minimal rather than sitting and waiting in order to avoid losses along the way.

With this in mind it is very important that you always have an exit strategy when utilizing contrarian trading. For this particular type of trading you must have a strategy in place to get out quickly if things turn south and protect as much of your investment as possible during the process. It is also a good time to consider buying when most people are bailing, wailing, and gnashing teeth at their brokers.

Another thing to keep in mind is that sometimes the best commodity to hold is cash. There have been times in the past when pulling out of the market for a year or two would have served the average buyer much better than trying to weather the storms that have risen and receded along the way. If you find nothing that is appealing to you for investment consider a money market account until something comes along to strike your fancy. Some of the best deals at any point in history have been made on hunches or simple interest.

The important thing to remember when investing is that if you do what everyone else is doing, you will get the same results that everyone else is getting. If you step outside the box and do something fantastic or different, chances are that you will experience fantastic results for your efforts.

Commercial Real Estate Misconceptions: You Mean Location, Location, Location Was a Lie?

 Flowers  Comments Off on Commercial Real Estate Misconceptions: You Mean Location, Location, Location Was a Lie?
May 062024
 

Commercial real estate is a wonderful, exciting business that can offer a wealth of opportunity for those who look for it! Many people are often hesitant to enter such a market as commercial real estate for many different reasons. In fact, there are some major misconceptions about commercial real estate which I am going to address here.

Many people who hear about commercial real estate, but aren’t necessarily in the business, often use the expression “Location, location, location!” Many people associate this expression as the truth, that the three most important attributes about a property are “Location, location, location!”

I am here to tell you- this is absolutely not the case! Now, I am not going to say location is not important, but what if you have a beautiful location for a mountain resort, complete with snowy hills, a perfect location for a lodge, and beautiful mountain views? What you want to do to the property is improve it for a weekend getaway for romantic couples with a beautiful lodge, resort, luxury type housing, and perhaps some individual cottages overlooking the green forest. Sounds great, right?

The perfect location- you can’t beat it! But, you learn that the zoning for this property is residential, R1, to be exact. The use is only one single family residence per acre, and no commercial property allowed. What happened to your “Location, location, location?” It flew out the window!

The most important aspect of a property is the use. What is it intended for by designation of the city or county? It does not matter where the property is, if you cannot get the zoning that is in the realm of your intended use.

It is possible to get properties rezoned, especially as cities change and grow. Be sure to consult with the city or county to determine if these changes are even possible, because you do not want to buy a property that you cannot rezone, and be left with an unprofitable property on your hands.

Most people believe that commercial real estate is complicated and you need a special education or know how to succeed in the business. Many think that commercial real estate is filled with international finance, heavy and complicated math, complicated tax rules, and forms and applications that are just too complicated to understand correctly.

I am happy to tell you this misconception is the worst, because it puts a road block in front of many people’s aspirations to become a commercial real estate insider. Let me put this misconception to rest. There is math involved, and most of it is not at all complicated: simple ratios, adding, subtracting and multiplying. What is even better is you don’t have to do the math. There are others who can do that for you. The same is true with property management, inspecting the property, and doing the year-end tax report. In fact, commercial real estate is less complicated than residential real estate because you can focus your energies on a single deal that will be worth perhaps 10, 20, even 50 residential deals and more!

Let me put it into perspective for you. If you owned a business (many of you may), would you create strategies, keep the books, manage the many locations, sell on the front floor, and take out the trash after the day was over? I think not! Commercial real estate is made up of many people whom are there to help you with whatever you need. You must position yourself as a real estate insider, which is a leader in the business.

Another misconception is commercial real estate is management intensive, that you must manage every property you own. Let me tell you when you end up owning 10 or more properties, this is almost impossible to do! You do not have to actually manage your properties yourself, so you can concentrate on creating more deals. Hire a company or set a team in place to take care of this “day-to-day” business.

As you can see, what is passed around in dialogue about commercial real estate is not always true. Before you take everything to heart, be sure to get your facts straight. In fact, many people in this profession speak about commercial real estate as a business in which only the savvy and sophisticated can succeed. They often act this way because they want to keep people out of the market by differentiating themselves. If you were in this position, you would too!

How To Become A Commercial Real Estate Expert In Your Own Backyard

 Flowers  Comments Off on How To Become A Commercial Real Estate Expert In Your Own Backyard
May 012024
 

Many people may not realize you can literally become a commercial real estate insider just by working in your own local community. There is a wealth of opportunity for those who are motivated and wanting to make a difference, not only in their own lives, but in the lives of people in the community as well.

You do not have to travel across the United States or around the world to find money making properties that will financially take care of you for the rest of your life. It simply takes two things in order to become a real estate insider: knowledge of your community’s real estate opportunities and a steady increase in your own education.

What makes a real estate insider?

A real estate insider knows the ins and outs of the real estate market in his or her own area of interest. This interest could be in office complexes, strip malls, large apartment complexes, medical buildings, and various other income producing properties The commercial real estate insider recognizes trends, the value of property, changes in values before they happen, all zoning laws and regulations, and infrastructural changes that can drastically affect the values of land on or around the new development.

The commercial real estate insider also knows the city decision makers. He or she knows with whom to speak in order to get information, advice, notice regarding changes in the zoning laws or regulations, and to stay ahead of the real estate market.

How do you become a commercial real estate insider?

To start, you should understand that a large part of commercial real estate is dealing with the officials and decision makers of the city or county because they are the ones who decide zoning and use for every piece of property within the city’s or county’s boundaries. They plan for future growth, and attempt to create a balance among both residential and commercial properties so that the community does not grow too quickly or become unbalanced.

Due to the fact that the city officials are so important to your ability to develop, renovate, and otherwise do what you want to a property, it is crucial that you get to know these people and create a rapport. You also need to know what is occurring in your community regarding real estate at all times. Zoning often changes; there may be new regulations or codes regarding the zoning, or the intended use could be limited to only a few uses that will hinder your intended project. All these things can greatly affect your dealings with a specific property, and how you pick and choose your opportunities.

A good way to meet these important officials, as well as learn about the real estate market in your community, is to attend zoning and planning meetings at your local Chamber of Commerce or courthouse. It is there that you can meet face to face the people who will influence your future as a commercial real estate insider. Introduce yourself as a real estate investor, and give them your card. Ask intelligent questions regarding real estate in your community.

Eventually, after building a rapport with these influential people, ask if you could meet with them to discuss a certain project, or something in which you could use more information or advice. You should always come to these meetings prepared with your questions typed so you stay on task and topic. Show that you appreciate their time, knowledge and expertise.

It is a great idea to ask for a few more introductions to people they know who may be able to help you. Always send a thank-you note that briefly reviews your discussion, what advice you used and how it will or has helped you. When you show appreciation for their advice, they are more likely to help you in the future, or share information of which others may not be privy. You will begin to make excellent contacts and learn key elements regarding your specific market. This is how you become a commercial real estate insider.

Beyond meeting the people who make the big decisions regarding the use of property in your community, you must know the laws and regulations regarding the various types of zoning. Zoning labels may differ from city to city, as do building criteria, the size of lots, building and fire codes, and limitations. You must study these rules and regulations so you know what you can and cannot do to a property. As these rules and regulations often change, it is important that you listen and take solid notes at all zoning and planning meetings, and other important real estate related meetings you might attend.

Your goal is to know your market inside and out so you can make decisions based on the changes in the market before anyone else even knows they are coming. You do this by recognizing certain points, such as an increase in vacancies of commercial property, or an increase in the median home price, or how the new mall planned to be developed in one year is going to greatly affect the land values around it.

In addition to understanding your own market, you should be reading the newspaper, trade journals, commercial real estate books, attending seminars, and speaking with others in your area who are involved with real estate so that you are constantly increasing your knowledge. It is with this constant training that you will learn strategy, finance, information about private lending, how to find deals, how to present offers, what markets are hot, new opportunities in the area others are not aware of, and many other tools and strategies that will keep you ahead of the rest.

To be a real estate insider, you must always be on your game. Make those contacts. Ask pertinent questions. Learn everything you can about your business, and act on this information. You will find yourself finding opportunities that you did not know existed, and you will become a commercial real estate insider sooner than you would think!

Learn the Three Ratios That Are Used to Determine Commercial Lending

 Flowers  Comments Off on Learn the Three Ratios That Are Used to Determine Commercial Lending
Mar 292024
 

Getting money for your commercial project can be quite a challenge if you do not know how to analyze and present the property properly to a commercial real estate lender. Before presenting your property to a potential lender it is important to determine the most probable ratios that the lender is going to use in making a decision to lend you the money.

There is an increased risk with commercial real estate loans because of the size of the loans. Hundreds of thousands to millions of dollars are loaned on commercial properties and projects. A commercial lender wants to make sure that he or she will get their money back from the generated income of the property.

Most lenders will use the following three ratios to determine if they will loan the money on a project.

The first ratio is the debt coverage ratio or DCR. The DCR applies to the property itself and how much income it is producing compared to the debt service, or how much money is paid out towards the mortgage on a monthly basis. It is expressed by the net operating income divided by the total debt service.

The net operating income is the total income left over from the property after paying all the operating expenses. The debt service is determined by the mortgage terms, such as interest rate, length of the loan, and how often a payment is made. The higher the DCR, the more ability the property will have to cover the debt service. Many lenders require a DCR above 1.2 in order to consider it a relatively safe investment. Anything below that indicates that the property is either barely breaking even, or losing money. A lender does not want to loan money on a project that is not able to cover its debt service.

The second ratio is the loan-to-value ratio. This is expressed by the total loan balances (sum of all mortgages) divided by the market value. When you apply for a commercial loan, as you do for a residential loan, you must determine how much value of the property you are actually borrowing versus what will remain as equity. If you can acquire a loan-to-value ratio of 75%, then that is generally a good number.

If you can get more than 75% of the value loaned to you, then consider that a bonus. Lender’s rules and guidelines may differ greatly depending on how much they are willing to risk on the project.

The third ratio is the debt ratio. For smaller commercial projects commercial lenders may require that you submit personal information to back the loan. This includes your personal income and debt on a monthly basis. The debt ratio is expressed by dividing monthly housing expenses by gross monthly income.

The results show how much debt stands in relation to income. Many commercial lenders will not accept a debt ratio greater than 25%. However, some commercial lenders have been known to go up to 28% or even 36%. A debt ratio greater than 25% stands a good chance of having budget problems.

The lower debt ratio you have, the more likely you will be able to get funding for your smaller commercial project.

Before approaching any lender, it is really important to analyze these ratios on your own. They pertain to your specific deal for which you want to get financing. By performing the ratio analysis on your own, you can better determine if financing will be easy or difficult to obtain, depending on the nature of the project and its level of risk.

It may be a good idea to contact several potential lenders and ask them their basic criteria and guidelines that they follow in evaluating properties. You may find that some lenders are far more conservative than others.

By understanding your property, you can better fit a lender to your specific needs. Also remember that private lenders can be extremely helpful with those risky deals that public lenders will not even consider. Be sure that you are well equipped with the proper information and supporting documentation no matter what lender you approach.

Marketing Research: An Overview

 Flowers  Comments Off on Marketing Research: An Overview
Mar 262024
 

Market research refers to the systematic collection & evaluation of information about the market for your business. Unempirical approach will never help you either launch or operate a successful business. A broad range of knowledge needs to be developed on the basis of a number of facts before you start a business.

Good market research will help you find out the following facts:

§ Location and size of market.
§ Market Demographics.
§ Receptiveness for your product in the market.
§ Trends and outlooks in the industry.
§ Industry structure & lines of distribution.

Market research helps companies know more about the past, present & potential customers, including their preferences towards various products and services. It comprises of testing the market for determining the acceptance of a particular product/service, especially among various demographics. It’s used for establishing thing such as which segment of the population does or will purchase a specific product. Such analysis is usually based on a number of variables such as gender, age, location and income level, to name a few.

Market research also allows the companies in developing information about new products and product lines plus what is the scope of a particular product in the market. Businesses can find out the customers’ response to a comparable product existing in market. It’ll help them take decisions such as whether they should produce a specific product or not.

Of course, you can never sell a product or service that’s not required by the customer in the first place. Hence, you need to learn what does your customer want and how to present the product/service attractively?

With the help of a good market research report you can make intelligent decisions about your business. Market research reports provide you with answers to key questions influencing your business. Thus, help you in better decision making about your business.

Marketing research deals with people & their ever-changing needs and behaviors, which are affected by numerous subjective factors. For conducting marketing research you need to gather facts & opinions in a systematic & objective manner.

Such information can only be acquired once you get market research done with some experienced and reliable market research firm. Getting the market research done is more significant for those running large businesses. Market size is larger for such firms as compared to the small businesses where the market size is not so vast.

Though, small business owners do have a sense of what their customers need, this informal information might not be timely or relevant to the current market. However, focused and organized market information is provided by the market research reports. Also, the information is timely & relevant so that business risk can be minimized. It also helps in spotting current & future problems in the market, identifying sales opportunities and developing plans of action.

To be able to run a successful business you must know all about your potential & existing customers as well as the marketplace you operate in. Acquire as much information as you can from various sources to understand the marketplace for your business. Find out the economic & industry trends, latest products, customer requirements and an idea of the plans and strategies adopted by your competitors.

RNCOS is an industry leader in the field of online business research. We specialize in industry research on various business verticals. To read our reports, please visit us at http://www.rncos.com/Report.htm or email us at info@rncos.com

Involving your Kids with your Home Business

 Flowers  Comments Off on Involving your Kids with your Home Business
Mar 142024
 

Working from home while caring for toddlers can be an extreme challenge. Trying to find the time to work on your business, without depriving your toddler of the love and attention they need can be hectic. Often times, work at home moms find that either their toddler is spending too much time in front of the TV or that the business is neglected. So, how do you get your business thriving while still being a good mom?

I can tell you from first-hand experience that maintaining a deep level of concentration on work in a home business for long periods of time is next to impossible. Nap time does offer some reprieve, but any break from the kids is usually short lived.

Even with older children, summertime introduces new challenges with kids running in and out of the house all throughout the day.

Set business ground rules and share them with your kids.

Your kids need to be aware that you operate a home-based business and know how to act accordingly. Set out basic rules that will allow you to operate your home-based business as professionally as possible, such as how to answer the telephone, how to answer the door, and how to act when clients are around. Include rules that will help make the time you spend working on your home-based business more productive, such as not touching Mommy’s desk or not interrupting Mommy while she’s in her office.

However, from both a business viewpoint and from the human relations viewpoint, it’s best to have a clear understanding with each of them as to what kind of things they will and should do (answer the phone, open mail, pack and ship merchandise, etc.) and what they definitely are not to do (make payments to people without your authorization, make agreements, deals or contracts without asking you). Such advance agreements can avoid a lot of aggravation and make everything go much more smoothly.

Include your kids in your home-based business.

No matter what kind of home-based business you run, there’s something your kids can do, and making your kids a part of your home-based business can be a great opportunity for you to spend more time with them and teach them things such as handling money.

For instance, one home-based business owner I know takes her age 7 and 9-year-old kids with her when she goes around replacing the products in dispensing machines, and has them count and organize change.

If your kids are working in your home-based business, I believe you should pay them. This is not only a great way to teach your kids the value of labor, but can be a business tax deduction for you as well.

Find creative ways to combine your home-based business and your kids.

If the client is agreeable, for example, you could hold a business meeting at MacDonald’s, for instance, or some other restaurant that has a play area for kids. If a client is coming to meet with you in your home, perhaps she could bring her children so your kids could play together while you meet. Take your kids with you when you go to buy more office supplies or run other business-related errands.

Give your toddler his own office.

Most moms find that their toddlers want to be like mom as much as possible. So, set your toddler up with a table and chair next to yours. Make sure you have good office supplies for them. A coloring book, a few sheets of paper, crayons and a pencil are basic essentials. If possible, an imitation computer and play phone would be ideal office equipment. Then sit at your desk and work beside your child. Remember that a toddler requires a lot of praise, so be sure to look over at your child’s work and compliment it from time to time. Also keep their attention span in mind. Keep your child’s office time limited to a half-hour and only do this once a day. It keeps your child from getting bored with the “game”. Be sure to reward your child for working and allowing you to work with some quality time afterwards.

If you have two or three kids with age range of 3 to 5, you will definitely be up to your neck. While often restless and cannot stay put for a minute, it does not mean that toddlers cannot be trained to cooperate with you while you are working. I know of a friend who was able to manage these ‘coyotes’ perfectly during their supposed ‘office hours’.

My friend installed three tiny office desks beside her own office desk. These tiny offices were complete with a toy telephone, bunches of coloring books, Nursery Rhymes, Bible Stories, Children’s Picture Books, a generous stack of ‘writing paper’. Their snacks and beverages are prepared and kept in the refrigerator for them to go and pick it up whenever they are hungry. When mom is sitting at her desk working, the kids are instructed to work silently at his or her own desk. Everyone must show the ‘assignments’ to mom during breaks. Breaks are timed every hour, to allow the children time to play with each other and with Mom. After two weeks of firm implementation, the children automatically reported to their own little office space after breakfast and everyone silently did their own share of what mom has assigned them to do.

I would like to share with you some of the tips I have discovered to help manage your home office with children in your midst. Since children of different ages pose different challenges, I will present my tips in terms of age groups.

OLDER CHILDREN AND TEENS

We will look at older children first since they pose the least challenge to our work productivity.

Children, who are old enough to understand the idea of schedules and chores, are old enough to understand the needs of your home business. Explain to your children that you do your work at home so that you can be near them when they need you. But also be sure they understand that you must do your work so that you will have the money necessary to keep your house, feed the family and to provide them with money for entertainment.

Once your children understand the necessity of your work, then outline a work schedule and explain it to them. Do make sure they understand that emergencies are definitely an acceptable reason to interrupt your work. Then make sure they understand that between hours x and y, you will be doing work — and then hold them to respecting your schedule.

INFANTS

Infants will never understand your needs for work. But fortunately, babies do well under a schedule or routine. Instead of expecting your child to work around your schedule, schedule your work around the needs of your baby.

It is simple. Babies eat, sleep and poop. Sometimes they play. Fortunately, babies sleep more than they do anything else.

Nap time offers the best advantage for getting your work done. Get your baby into a routine of eat, sleep and play, and you will experience unexpected levels of productivity.

TODDLERS

Develop a routine with your children for meal times, nap times, and play times. Work these times into your work schedule and adhere to them. If you fail to keep appointments with your children, your children will have less respect for your work and do more to prevent you from the completion of your work.

Don’t be afraid to let your children sit in your lap while you are working. It helps them to feel wanted and it helps them to be a part of your daily life. There are times when it is okay for them to be sitting in your lap while you work, and at other times you need them out of your lap. Don’t be afraid to tell them to get down and go play or read a book so that you can resume your work.

Permit your children to have their toys in your office. Often they will sit contently and play while you work. Just knowing you are near is enough to keep them happy.

Be prepared to take an hourly break to deal with your toddler. Try to do potty breaks at your hourly break and to do drink refills. This can help your child grow into a routine that will work well with your home business. At each break, spend a few minutes with your child giving hugs and kisses and talking with your child about what he or she wants to talk about.

Toddlers don’t always do well with the routine, so be prepared to take a few minutes when needed to give the attention that your child so desperately needs in the moment.

IN CONCLUSION

I hope these tips serve to help you in the challenge of operating a successful home business.

My home business permits me to fulfill my financial obligations *AND* see my children grow up. I would never contemplate trading my home business for another kind of business. Even with the added challenges of dealing with toddlers in my home office, the upsides far outweigh the downsides.

Growing my own home business with children around has definitely given me a new respect for all people who successfully run a home business with kids in the work environment. I tip my hat to you… You deserve it!

Scheduling daily time with the kids will help you remember that your kids are just as important as your home-based business activities.

American Satellite and Entertainment

 Flowers  Comments Off on American Satellite and Entertainment
Mar 082024
 

The History
American Satellite and Entertainment Inc. has been founded in 1996, in the years where satellites had already been introduced, yet had plenty of aspects that needed to be developed and improved. The market was existent, yet new; it was the perfect time for a new company to enter this field, and wage war on other retailers. The area of expertise of American Satellite ranges from satellites, broadcasts, DirectTV, Satellite Internet as well as HDTV and (according to recent press releases issued by American Satellite) even GPS navigational systems. With more than 4,000 licensed and trained installers who are in turn available throughout 39 states, American Satellite has become quite a prominent giant of the satellite business. Whether they are number one or the best of the bests is not important, but we should rather focus on how reliable the service is.

Price Matching
A point that surfaces quite often when discussing about companies, retailers and everyday stores is the following: “Will business X personally guarantee the lowest price available on the market?” The answer to this question is: “Yes, American Satellite does match the lowest available price.” However, you should be aware that this is not as simple as walking in the store or calling them and asking them to match a price that you have seen somewhere else. American Satellites reserve the right to limit quantities or dates if the other retailer has a similar police; furthermore, American Satellite’s price matching is not valid if you found a lower price that was due to a bonus offer (nor any kind of different special offers), rebates or even typographical error. What this means is that American Satellite will only match the everyday normal price of another retailer, nothing more, nothing less.

Exclusive Deals
As of June 2006, American Satellite and Entertainment Inc. has signed a deal with another giant, which is none other than Amazon.com. The deal in question allows Amazon.com to be the exclusive online dealer for DirectTV systems. This is quite a good deal for us, the average customer as Amazon.com does have quite a good reputation toward their customers (which are estimated to be at roughly 50 million buyers who bought a single item or more.) The joint work of Amazon.com and American Satellite will undoubtedly please many, and should not be looked as a bad move.

Reward Program
With the HDTV market blooming; it is quite understandable that the battle of supremacy, the battle for the number one spot in HDTV and cable retailer is still fierce and ongoing. American Satellite has thought of a clever and overall very simplistic way of attracting even more customers; if you fill out and send a referral form to a friend, family member or neighbor, and in turn, they buy and activate their DirectTV system, you will receive 75 dollars. It is quite an easy stunt, but you can be assured that it encouraged people to talk about the service. As for the fine prints, you will only receive your $75 via checks (which take about 8 to 10 weeks to arrive) and will also be declared void if they are not cashed in the following 6 months. Obviously, you are also required to be an already existent owner of a DirectTV system via American Satellite. It is also good to mention that the offer does not limit you to a set number of referrals, as you can refer as many people as you can.