Friday, February 16, 2018

Buy A Mortgage Not Rigor Mortis

Mortgages are complicated and centre on money, obviously. However, flexibility can
often be the most important asset of a successful loan application. Strict terms and
conditions allow rigor mortis to set in, and that, in turn, causes monetary problems.
Considering the property may be on the line, you can’t afford to miss a payment and
mess the bank around. A flexible mortgage provides homeowners with the security for
adjusting the terms to benefit them in the long run. For example, you can vary the amount
you pay back each month depending on the circumstances.

If you think that’s cool, wait until you check out the following.

Cut Interest Payments

Like all bank loans, mortgages work by charging extra on top of the initial agreement.
Over the course of 25 to 30 years, the amount an average property owner pays in interest
can be thousands of dollars. Of course, it’s better to avoid these penalties and keep
the money in your pocket, which is where a flexible mortgage comes into play. Because
you can pay more than the required amount each month, you can lower interest payments
by reducing the ‘principal balance.’ Remember that the sooner the contract is paid in full,
the more you will save.

Avoid Bankruptcy Or Collateral Debt

Typically, there is a dire consequence for missing a loan payment. Sometimes, it can
result in bankruptcy and others it can result in losing a prized asset. Mortgages are no
different and everyone who agrees to terms is in danger. Thankfully, a flexible arrangement
gives the buyer enough bend to move the goalposts. For instance, you may reduce
the monthly amount to match your earning potential. A mortgage modification prevents a
property disclosure and allows you to keep the house. Always get help before negotiating
new terms. After all, one slip could make things worse.

Pay Less Overall

There are two main types of mortgage: a fixed and variable rate loan. As the names
suggest, the rates are either set in stone or change over time. Usually, a fixed rate option
is the best deal because the market can be unpredictable. Therefore, it’s a massive risk
to opt for a variable rate over a long-term contract. However, a flexible loan allows you
to pick and choose. Therefore, you can switch between the two when the interest rates
rise and fall. Over the course of the mortgage, this feature should save you a small fortune.

Miss Payments

It seems inconceivable that people can miss loan payments, but it’s true. A mortgage
agreement that isn’t strict allows homeowners to forego a certain amount before the
terms change. Of course, everything has to be agreed to beforehand and you can’t
decide halfway through a deal. However, a grace period may provide you with the
perfect safety net when things get tough. It’s especially beneficial for the self-employed
and workers whose wage fluctuates over the year. Please check the terms of the
loan before withholding payment.

The pros are pretty conclusive. Still, are they enough to make you change tact?

The Downsides of Freelancing That People Rarely Talk About

To many people, freelancing seems like the ultimate career choice for people who love
freedom and want to break out of the monotony of a regular 9-to-5 job. Sadly, there are
many aspects of freelancing that just aren’t talked about very often. This usually results
in a poor understanding of freelancing and many people ruin their careers because they
jump the gun too soon and fail to grasp just how difficult freelancing can be.

Of course, that’s not to say that it’s the toughest career choice out there. There are many
situations in which freelancers can flourish, but it’s not as common to be a successful
freelancer as you think and many struggle to get by. To help clear up some misconceptions
and help you understand freelancing better, here are a couple of downsides that you
should keep in mind.

Are you too creative and passionate to stick to a regular job? Freelancing might be
the cure, but it still requires a lot of work! (Image Source)

Passion Is Important, but Realism Is Even More Crucial

Are you an incredibly skilled artist? Were you top of the class with your writing skills?
Did you get the best grades in your engineering course? That’s fantastic and all and
you’re probably passionate, but you need to be realistic when you want to become a
freelancer. For example, if you’re an artist then you shouldn’t expect to just draw whatever
you want and make money for it. You’re going to get plenty of people
asking you to work for free and you’ll end up drawing things and shaping your art around
what your clients ask of you.

Similarly, your writing skills don’t mean that you’re going to be able to write a novel and
sell it instantly. To gain exposure, you’ll likely have to start a blog, start writing articles
and other small bits and pieces that you never expected to and slowly build up that recognition.
You can be passionate about something and it will help you out as a freelancer, but you
need to remember to be realistic and flexible.

There Are More Responsibilities That Will Drain Your Productive Time

We’ve all heard the saying that time is money, but rarely do we ever feel the effects of it
until we’re involved in freelancing. From doing your tax return to chasing clients for pay
and emailing pitches to different publications, it’s important to focus on these tasks because
they mean a lot to your livelihood as a freelancer. You need to get paid hence why you
spend hours chasing clients with invoices, and you have tax responsibilities as a
self-employed individual so you need to manage your finances as well.

All of these responsibilities will eat into your productive time, so you need to include
several extra hours per week in order to sort them out. Many people will tell you that
they work for 3-4 hours per day and make more money than a 9-to-5 job, but what they
don’t tell you is that they’re also stressed out from managing their own taxes and they
spend their evenings chasing clients for payments.

Wednesday, February 14, 2018

Reasons Why You Are Not Making Money Online

If you have been trying to make money online for some time now but find that you are
constantly coming up against a brick wall, you need to identify why this is. While there
is a myriad of possibilities, there are also some common themes which come up time
and time again when it comes to the reasons you are not making money online. So,
let’s take a closer look at these to help you zero in on the issues that you may be having.

You Don’t Truly Believe in it

If you don’t have total confidence that you can make money online in the first place,
you are unlikely to be able to get much further. In fact, more and more people are turning
to the internet in all lines of work, so it may help you to read a few success stories or
even attempt to contact people who know what they are doing, allowing you to speak
to them directly.

You Are Looking for the Easy Way Out

While there are some simple ways to make money online, they are unlikely to be the
most profitable ones. Instead, you need to try and carve out a specific niche for yourself
and focus on that as much as possible. And you also need to first accept that you may
not be hugely successful in the first place or make money straight away. It is only once
you get the ball rolling that you can start to enjoy the spoils.

You Are Not Getting the Right Advice

Do a quick Google search and you will be inundated with articles about how to make
money online. But before you start reading through everything that you find, you first
need to check the source. There is no point taking in information that is going to be of
no use to you. If you are trying to get into betting, take a look at as a starting
point. If you are planning on making money through blogging, read through articles of
successful bloggers who already know what it takes to succeed and can do the same
for you.

You Are Trying to Do Everything at Once

As we have already touched upon earlier in the article, a lack of focus can bring you
down. So, before you try every method under the sun of making money online
(freelancing, blogging, teaching etc) try focusing on just one. Otherwise, it is highly
likely that you are spreading yourself too thin and you are never going to be able to
enjoy the success you are looking for.

Obviously, there are plenty more reasons why you may not be making money online,
but if you have identified some of your own characteristics in one or more of the sections
listed above, now is the time to do something about this. First of all, you need to believe in
what you are doing. Then, you need to stop looking for the easy way out and find the right
advice to follow. Finally, ensure that you remain focused.

Tuesday, February 13, 2018

From Small Time to Superstar: How To Approach Scaling Up

Getting a business off the ground takes determination and skill, so if you’ve managed to
successfully start your own company last year, hat’s off to you. But you may never hit the
big leagues if you don’t start thinking regarding scalability. That means the growth potential
that your company has – taking on more business without losing revenue or turning in a
weaker performance. But you need the right processes, people and mindset to make it
from small fry to superstar. Here’s your roadmap to scaling up…

Get Foolproof Fundamentals

It might sound boring, but getting the basics right is absolutely key – premature upsizing
can tip your business into cash flow problems and failure. You need to make sure that you
understand implicitly who your customer base is and what they want. What marketing channels
are generating the best return on investment for you? What user feedback have you got
about improvements that can be made to your core product or service offering? You need to
have complete certainty that your offering is right and that the audience is there for it. Then,
you need also to make sure that you have sufficient resources in place to scale up. What
investment is required? Will you need more capital? What sources of funding are available
to you or what do you need to do to seek more? Typically, scaling up with need a cash
injection and there may be a delay on seeing the profits.

Find The Right Contacts and System

So much depends on being able to find reliable suppliers that can also assist you in scaling
up operations. First of all, you should invest in automating as many business support processes
as you can. If you haven’t already, prioritize looking into cloud storage systems, onboarding
and training for any new employees, payroll and invoicing and others. All your systems need
to support your need to access data quickly and securely, make financial decisions quickly
and get the people you need. You also need to ensure that you’re working with the right
suppliers to make your growth possible, and if not find new contacts who can specialise.
Look at companies such as Red Stag Fulfilment to make sure you can process volume
orders across a wide geographic area and Sage for online invoicing.

Define Your Marketing Strategy

If you’re expanding into new regions or product sectors, you need a robust plan for spreading
the word before launch. Content marketing is vital to spread the word about what you do and
get potential customers interested. Could you partner with a complementary brand to
introduce yourself to their customers? Could a targeted advertising campaign on social media
be narrowed down to your specific target demographic?

Get The Right People

Being able to expand successfully means embracing delegation, which can be difficult for
small business owners used to having to take care of every detail themselves. So make
sure you have the best people in place to support you. You need individuals who are
multi-skilled and creative at problem-solving to give your business the best chance of
success in a new market.

Friday, February 9, 2018

Commercial vs Residential Property: Which Is Better?

Most people agree that property investments are the best way to make money. Let
everyone else waste as much time as they want with things like Bitcoin that go up
and down like crazy. Put your money in property, and you’ve invested in something
that’s relatively safe, and gives you multiple ways of making money.

When it comes to property investments, a lot of people are in debate as to what type
of properties are the best; commercial or residential. Well, we’re going to settle the
debate by looking at each idea and seeing what’s good and bad about it. In doing so,
we can see which is truly better.

Residential Property

First up, let’s take a look at the big wide world of residential property!
What Is It?
Residential property pretty much refers to any building that people live in. Houses
are the most common property, but apartments, bungalows, and any other buildings
like this are also included. If someone can buy/rent a building to live in, then it’s
There are plenty of advantages to investing in residential property. The first is that
people are always looking for places to live. No matter where you go, there will always
be someone looking to buy a house or rent an apartment, etc. The demand for these
properties is high, meaning the potential to make money rises with it.

Secondly, residential properties offer you various ways of making money. On the one
hand, you can invest in a house, provide renovations, then sell it for a massive profit.
This is a very popular form of making money, and it’s called property flipping. On the
other hand, you can easily buy residential property and rent it out to potential tenants.
Both ideas make money, just in different ways.

Thirdly, a lot of residential property also comes with land attached to it. People have big
gardens or space outside their homes, and you can buy that with the property. In fact,
there are loads of house and land packages out there for investors to take advantage of.
The benefit of this is that you now have more land to do things to. You can build an
extension or completely do up the back garden, making the home more valuable and
increasing your chances of flipping it for a profit. Or, if you manage to buy a house that
comes with loads of land, you can build things on that land that make you more money.
I know people that invested in property on a farm or ranch, and it came with acres of land.
So, they built another house on their land and sold it to the highest bidder! You can’t really
get commercial property and land packages, so this isn’t a thing with them.
Next, residential properties are more readily available for investors. They’re easier to
find, there are more on the market, it’s just more convenient to invest in them
compared to commercial properties.
It sounds like residential properties are amazing, but do they have any drawbacks? Of
course, they do, nothing in this world is perfect! One of the key drawbacks with
residential properties is that you’re dealing with a very competitive market. Yes, having
lots of properties for sale means you have loads of choice when it comes to buying one.
However, it also means there are loads of other people trying to buy them too.
Commercial property investment is a much smaller world, with less competition.

Property flipping can make you a lot of money, but it can also be a bit risky. There’s
no telling what could go wrong during your renovations, meaning they may cost more
than you first anticipated. This could lead to you driving up the cost of your property,
making it harder to flip it for a profit.

On the whole, if you know what you’re doing, you can make a lot of money from
residential investments. They’re relatively safe, particularly when you don’t make
risky investments to try and flip them for a profit. But, what do commercial properties
have to say in response?

Commercial Property

We’ve seen what’s good and bad about residential property, but how do commercial
properties fair in comparison? Check everything out down below:
What Is It?
Commercial property refers to any buildings that people use for business or commercial
purposes. For example; an office, retail space, restaurant - anything someone can buy/rent
and use for their business.
A massive pro of commercial property is that they’re excellent for bringing in rental revenue.
This is the main way you will make money - you buy an office building, and you rent out
the offices to different businesses. You bring in multiple tenants all at once and have
different streams of income. There are always businesses looking to rent commercial
spaces, so you should always have a good time finding commercial tenants.

Another plus point of commercial properties is how easy they are to manage. Commercial
tenants are way less of a handful than residential ones. A family living in a home will
be there most of the time and have various demands. They could have issues with
their hot water, dishwasher, washing machine, fridge - loads of problems can occur.
Not only that, but families or individuals are more likely to struggle with rental costs.
They can easily dodge payments, put them off for an extra month, and just be very
difficult to manage. But, businesses are a different kettle of fish. There are fewer
problems that could occur, seeing as they don’t have bathrooms or kitchens - the only
main issue is electricity and their internet. They’re also more professional, and will
likely be able to pay rent every month. It’s much easier to manage commercial tenants
because they’re pretty much just like you - businesses trying to make money!

Thirdly, residential properties are more greatly affected by the property market. This is
because you tend to buy and sell houses more than office buildings. As mentioned,
the main aim of commercial properties is to make money through renting. Therefore,
if there’s a housing market crash, and residential properties drop dramatically, your
commercial property won’t be affected, and you can continue earning money.
Right, what are the drawbacks of commercial properties? Well, we already touched on
a few when talking about the positives of residential property. For one, you can’t really
flip a commercial property. Some people might be fine with this as they don’t like doing
this tactic anyway. But, there are groups of people that spend their whole lives making
money by flipping, which means commercial properties aren’t an attractive prospect
to them.

Secondly, commercial properties can be extremely expensive. Think about it, if you
want to get the most out of your investment, you have to buy an entire building. This
costs loads of money, potentially more than any house or apartment out there.

Thirdly, it’s possibly harder to find the ideal commercial property to buy. With houses,
there are loads on the market, increasing your chances of finding one that suits your
parameters. With office buildings/other commercial properties, your choices are limited.
There are nowhere near as many on the market, meaning you struggle to find one that
suits you. It could mean you spend months trying to find the ideal investment, wasting
time and money.

Commercial vs Residential: The Winner Is…

It’s hard to really decide which type of property is the best out of the two. I know it
sounds like I’m sitting on the fence, but it depends on the type of investor you are.
If you know the residential market, then stick to it. If you know the commercial market,
then stick to that instead.

Having said that, for beginner property investors, I believe residential is the way forward.
There are simply more options at your disposal, and some of them are cheaper too. You
can easily get your foot on the property ladder by investing in a small apartment, then
renting it out and taking things from there. It’s definitely harder for a beginner to find a
commercial property to buy.

The more your residential portfolio grows, the more money you start making. Now, it
makes sense to dip your toe in the commercial market after doing lots of research.
It’s a smart way to diversify your assets and broaden your property portfolio.

So, in conclusion; residential property is an excellent starting point, while commercial
properties can come in handy once you’ve already enjoyed success. The main thing
you can take away from this article is that the real winner is real estate. It’s so clear
that property investments, on the whole, are the best way to make money. The simple
fact you have two different categories - both with subcategories too - shows the variety
at your disposal. There are loads of options out there, and it’s still much safer than
investing in volatile stocks or other assets. So, if you’re keen to set out on an investment
journey, this is the perfect starting place.