Social investing has received a lot of interest in recent years - especially following the financial crisis. Most people, however, are left wondering: What is social investing? Let's answer this question. To understand what social investing is, we must first consider how traditional investors look at the world. In traditional investing, investors weigh investment decisions by looking at two broad factors - risk and financial return.
A Variable investment is one where your money is typically invested in stocks or mutual funds. The performance of these stocks or funds varies and is not guaranteed - hence the term "variable investment." Variable investments have many key benefits. They allow you to earn interest by investing in a single company (individual stock), multiple companies, or a specific segment of the market (mutual funds). You can even invest in an entire Index like the Dow Jones or S&P 500. Also, variable investments allow for the greatest return and historically have outpaced all other investment options.
Find places with high rentals Find areas with traditionally high rental returns that outperform the national average and then spend time looking for them and make money from the rentals. Here in this area of real estate investment, spending some time to find the real estate investment that is a bargain is a good idea so that you can get better return on investment. Some people do not seem to get it that high rental yields are important to a real estate investor and think that most of their customers would pay anything to get a winter residence. I was at a property exhibition recently and spoke to a Spanish Real Estate Agent and when I asked her what the Return on Investment was on a piece of Bulgarian property that she was selling. Not only could she not even understand the concept of ROI but she even laughed off the question of rental yield when I asked her. I am sure she is not alone in his mistaken belief that people buy just because they like the real estate. Thus rental yields or return on investment is critical when you decide what type of real estate investment property to purchase.
A Fixed investment offers a pre-determined or fixed interest rate for a specified period. This is most commonly seen with bonds, CD's, annuities and universal life insurance products. Fixed investments have three major advantages over the other options. First, they provide a guaranteed or known interest rate that is disclosed prior to making your investment. Second, fixed investments are generally designed to protect your initial or principal investment. A Fixed investment also has two major pitfalls. First, because they provide a known or guaranteed interest rate, they generally provide a lower rate than what may be available when you're willing to risk your principal. Second, they normally have restrictions or penalties associated with any withdrawals made during the fixed interest rates term period. This is especially true with CD's and annuities. Overall, Fixed investments can be a great option for those not willing to risk some or all of their money, older clients using the investment interest to provide or supplement their income, and clients looking to provide a hedge against other, more aggressive investments.
The second broad category of social investing is known as impact investing or, sometimes, community investing. In impact investing, rather than investing in companies that do no harm, investments are made in companies that do social good. Enterprises that fall under the impact investment heading perform services that have a charitable or social purpose but also have a business model that can generate income and support a financial investment. They straddle both the charity and business worlds. Impact investment enterprises might be structured as non-profit or for-profit companies but rarely do they take the form of the large public companies listed in the capital markets. As a result, making an impact investment is more difficult and usually takes the form of a private investment in the form of a note or loan.
Remember that real estate investment is dependent on rental and the higher the proposed rental the better your monthly cash flow is. You could also purchase the property at a lower price and this would mean that your monthly cash flow would improve. Note that once your property is partly paid up, you can refinance your loan and extract out some money and purchase a second property and so on. Soon you would have multiple streams of income from the purchase of one real estate investment property. In conclusion, there are many ways to make money from real estate investment and what's missing is massive action on your part. Take massive action and start hunting for your ideal real estate investment property today and start generating substantial real estate investment property profits.
A Variable investment is one where your money is typically invested in stocks or mutual funds. The performance of these stocks or funds varies and is not guaranteed - hence the term "variable investment." Variable investments have many key benefits. They allow you to earn interest by investing in a single company (individual stock), multiple companies, or a specific segment of the market (mutual funds). You can even invest in an entire Index like the Dow Jones or S&P 500. Also, variable investments allow for the greatest return and historically have outpaced all other investment options.
Find places with high rentals Find areas with traditionally high rental returns that outperform the national average and then spend time looking for them and make money from the rentals. Here in this area of real estate investment, spending some time to find the real estate investment that is a bargain is a good idea so that you can get better return on investment. Some people do not seem to get it that high rental yields are important to a real estate investor and think that most of their customers would pay anything to get a winter residence. I was at a property exhibition recently and spoke to a Spanish Real Estate Agent and when I asked her what the Return on Investment was on a piece of Bulgarian property that she was selling. Not only could she not even understand the concept of ROI but she even laughed off the question of rental yield when I asked her. I am sure she is not alone in his mistaken belief that people buy just because they like the real estate. Thus rental yields or return on investment is critical when you decide what type of real estate investment property to purchase.
A Fixed investment offers a pre-determined or fixed interest rate for a specified period. This is most commonly seen with bonds, CD's, annuities and universal life insurance products. Fixed investments have three major advantages over the other options. First, they provide a guaranteed or known interest rate that is disclosed prior to making your investment. Second, fixed investments are generally designed to protect your initial or principal investment. A Fixed investment also has two major pitfalls. First, because they provide a known or guaranteed interest rate, they generally provide a lower rate than what may be available when you're willing to risk your principal. Second, they normally have restrictions or penalties associated with any withdrawals made during the fixed interest rates term period. This is especially true with CD's and annuities. Overall, Fixed investments can be a great option for those not willing to risk some or all of their money, older clients using the investment interest to provide or supplement their income, and clients looking to provide a hedge against other, more aggressive investments.
The second broad category of social investing is known as impact investing or, sometimes, community investing. In impact investing, rather than investing in companies that do no harm, investments are made in companies that do social good. Enterprises that fall under the impact investment heading perform services that have a charitable or social purpose but also have a business model that can generate income and support a financial investment. They straddle both the charity and business worlds. Impact investment enterprises might be structured as non-profit or for-profit companies but rarely do they take the form of the large public companies listed in the capital markets. As a result, making an impact investment is more difficult and usually takes the form of a private investment in the form of a note or loan.
Remember that real estate investment is dependent on rental and the higher the proposed rental the better your monthly cash flow is. You could also purchase the property at a lower price and this would mean that your monthly cash flow would improve. Note that once your property is partly paid up, you can refinance your loan and extract out some money and purchase a second property and so on. Soon you would have multiple streams of income from the purchase of one real estate investment property. In conclusion, there are many ways to make money from real estate investment and what's missing is massive action on your part. Take massive action and start hunting for your ideal real estate investment property today and start generating substantial real estate investment property profits.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Unsecured Private Loans You have full permission to reprint this article provided this box is kept unchanged.
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