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How Small Business Owners Can Strike a Financially Viable Real Estate Deal

How Small Business Owners Can Strike a Financially Viable Real Estate Deal

If you want to improve your finances and have income diversity, real investment is one of the best choices. Many small and large businesses are looking at it seriously and you should too. If you are a small business owner, you will have to focus on what is important. And in most cases, it would be the cash flow and profit. If you have a nice sum of money, it is recommended that you invest it in real estate. You may even turn it into a small side business since the profits can be huge.

Real estate is one of the wisest investments you will ever make. It’s safe (most of the times) with high rewards as well. Real estate prices are rising almost everywhere, and the returns can be as high as 15%, given that you play well.

Many buyers still go the traditional route when it comes to buying a property. However, is it always the right thing to do? Not really. There is a lot you can do to find a killer real estate deal, one that costs you less and gives you a very high ROI.

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So how does one find such a deal? Here are some tips.

1. Look at a Lot of Options and Compare them All

It is all about numbers. Look everywhere for sales. Subscribe to online real estate agents, talk to your friends and family members about your intentions, so they can refer you to an agent or let you know of someone looking at selling a property

You will receive hundreds of leads, but only a few will be worth it. It’s basic, a lot of the deals will be too expensive and a lot will be with really low ROI. You should collect all the leads and then chop them gradually, first eliminating the properties you cannot afford. Next, eliminate the properties based on how much return they are going to provide you.

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You will also need to keep in mind the pros and cons of buying a new property versus the old one, I got a chance to speak with Tamir Davies of Sellhousefast, a property specialist with years of experience in the industry, according to him, “Though, in all the excitement, buying a property is still a difficult venture and an expensive one too; thus, families, couples and those purchasing alone are opting for new-build properties which are energy efficient, brand spanking new and come with a builders guarantee and a ten year warranty.” That goes to make a point that new builds are often the better choice.

Once you have a few left, compare them all. When you plan on selling in mind, consider how much renovations they need and if such renovations will help the property. Addition such as a pool, can push a property’s value by up to 20%. You should study the real estate market deeply. Also, it is important to compare two options. For example, if you are in Chicago you should see what’s happening in the Chicago real estate market and then compare it to other markets such as Los Angeles and Tampa, both offering high returns.

2. Bank-foreclosed property Is a Good Option

While foreclosure is sad, someone’s loss may end up being your gain. When a borrower fails to pay back a loan, the lender may put the mortgaged property on sale, allowing you to get it at usually a low price.

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Banks are good at giving loans, and not managing houses. They are interested in getting back their money, hence they will often sell a property at a cost much lower than its market price. It’s often a deal you do not want to miss. However, you will have to study about buying foreclosured houses. Having the right information will make help you get the right property. You may even ask for discounts based on the condition of the house.

3. Be Quick and Offer Wisely

Believe it or not, at times sellers will sell a property to the first bidder. This may be due to them being in a financial crunch or simply not being in a position to afford the property. Whatever it is, it can be your gain.

You do not have to seal the deal the day you check a property, but do not be late in making an offer. You can also avail discounts by promising to pay lump sum money.

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4. Approach Owners Privately

This may not look like a very good idea, but works in several cases. You can look beyond listings and find homeowners privately. However, only make an offer if you are sure of the home owner looking at selling a property.

The problem with listings is that there are often too many offers. The real estate market is hot and everyone is trying their luck. This is also partially why a lot of homeowners still prefer to just put a ‘for sale’ sign outside of their property instead of posting an add online. You should look for such a homeowner and speak to them about the property.

You may also find absent homeowners. So if you find a deserted house, look for a homeowner and approach them privately asking if they’d be interested in selling the property. But make sure to make this offer in a subtle manner, so that you do not end up offending them or sounding too desperate. Highlight the benefit of selling the property. Some pointers that may help you strike the deal include highlighting the maintenance cost, how the property is losing money and taxes.

We hope following these simple tips will help you get the property you want. If you are looking at starting this as a business, remember to not count on it as your primary business till everything is in place.

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Ahmed Raza

CEO of Samurais.co

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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