Always Take a Good Look Before Choosing the Best Home Based Business

Most of the people don’t succeed after setting up a home based business since there are a few frequent issues inherent in many of the home based business possibilities. You need to prevent the following fatal imperfections when scouting for a home based business. In case you are considering a business prospect that requires you to subscribe friends or family as clients, don’t go walking but run to the closest exit. This can be a method to push away both your loved ones as well as your friends.

By no means sign up for a business that needs you to show up at hotel group meetings. Just about the most frequent advantages for starting a home business is economic independence and many achieve this while still doing another daily job. In case your fresh opportunity needs you to go to hotel conferences after work every day then you’ll eventually exhaust yourself. Your primary goal is much more time for you to live your life, not less.

Whatever you decide and do… do not sign up for a business that entails you to buy large volumes of their merchandise. In the event the business requires a minimal acquisition of their merchandise monthly that’s great. However, if you are considering including on your garage to store all of that merchandise, this may not be the business to suit your needs.

Among the most significant aspects of the business will be the pay plan. Never ever be satisfied with a pay plan which is lower than sufficient. If you must work till you are very old, this isn’t the way to suit your needs. Remember that, you will find business opportunities available having excellent payment plans. You should be compensated and also you should be compensated properly.

If you’re a professional and also have analyzed the company’s plan for several weeks but still can’t fully understand the program, it’s likely that this is way too challenging. In the end, you’re going to need to manage to describe the business plan to potential clients and sales agents. It was often realized that the most basic methods function the most effective.

Stay away from those opportunities in whose marketing specifications are idealistic. Many home business opportunities on the internet these days ask you to recruit a lot of other individuals exactly like you who both need or intend to make lots of money. Frequently, you have to recruit an inaccessible number of individuals so that you can have great results. This requires excessive levels of both time and selling ability. You don’t be required to hold either when using the correct business structure.

The perfect solution is would be to go with a home based business that doesn’t have some of the trouble specifications listed above. The most effective businesses are easy, straightforward, affordable, and never excessively problematic with their marketing specifications. Using the effectiveness of the internet to complete your own marketing will certainly fix lots of your difficulties right away and lead to higher earnings. Talking about higher earnings, the very best of the most effective home based businesses should have a profitable pay plan. When you mix an excellent pay plan with verified internet marketing strategies, then you will be rich!

Measuring Your Real Estate Investment Returns

Congratulations, you have finally found one source of information that is both invaluable and easily applicable for your future investment decisions.

We have read many books, reports and various articles on investments, property investment in particular. The majority of them contain great information, some of them even give you instructions on how to implement that information. However, none of them seem to provide the missing ingredient to convert the intent of the article into the actual result. Their “how to” information is never complete, too complicated or overly simplified.

Finally, out of all our research, we have found a major deficiency in the information provided by other authors -

They do not explain properly why you would invest in the first place!

They do not explain how to measure your investments!

What is the point of investment if you do not have a very specific goal in mind? And if you do have an outcome in mind, how do you know that a particular investment will achieve your desired goal?

We hear many times that people wanting to purchase an investment property, without necessarily knowing why they are buying an investment property in the first place. We have probed for the answer only to receive blank looks, vague statements and complete incomprehension of the questions.

Ask yourself, why would you purchase an investment property?

Is it to create more wealth sometime in the future?

Is it to help you financially on a daily basis?

Is it to generate a specific return on your investment?

Is it because investment property is a better investment than shares?

Do you have answers to the above questions? If you do, how specific are those answers?

We have found that people will generally answer yes to all the above without having any specific outcome in mind.

In this report we will give you the primary tool that you will need to start answering the above questions.

That tool is the ability to measure the return on your invested funds.

If you cannot measure your return, you will never be able to achieve any of your objectives, or you will achieve them through luck and not objective, measured approach. Luck will not let you repeat your investment strategies. Luck is only good in casinos!

So how do you measure returns?

Let’s step back and discuss what is a return on your investment. When people talk about percentage returns or dollar returns on investment, they usually define these returns by time and the baseline investment.

So for example if you purchased a property for $200,000, after 1 year that property might be worth $210,000. Therefore your return on investment is $10,000 in one year or 5% in one year. This example has a specific period of time within which a return is measured.

However, when you measure a return on investment, do you need to measure the return on the whole price of the investment? When you purchase an investment property, do you purchase the property with CASH? Granted, some people in very exceptional and sometimes suspicious circumstances do buy property with cash! You would agree with us when we say that this is extremely rare. In most cases the investment property is purchased with a combination of your money and the bank’s money.

In fact, in most cases, the bank lends the majority of the purchase price – 70% to 90% of the purchase price. This means that generally you only put up your own cash as a fraction of the property price. Given that you have only invested 10% to 20% of the total purchase price, when working out the return on YOUR investment, why would you work out the return on investment based on the whole price of the property? You did not buy the property entirely with cash, therefore you don’t need to work out the return on investment on the entire price of the property.

We can provide an example of this in another field. Say you wanted to purchase an antique chest of drawers. You know that antiques go up in price with time, especially if they are properly looked after.

This particular chest of drawers cost $1,000. You did not have $1,000 so you borrowed $800 from a friend and put up the balance of $200. You made a deal with a friend that at the end of the year once you sell the piece, you will pay him $40 for the loan. At the end of the year you managed to sell the piece for $1,100, or for an extra $100. So you might think that you have made 10% return.

Or $100 profit divided by the $1,000 purchase price. You would be wrong. What you really made was $100 profit less $40 that you have to give to your friend for the loan. That makes $60 profit to you. To calculate your return you need to divide YOUR $60 profit by YOUR $200 investment. This means you made 30%. You only calculate the return on YOUR money and not your friend’s and not on the total purchase price of the antique piece.

Here is an example of how your property investment will look. The numbers are purposely simplified and do not take into account various expenses:

Example 1 – Return on investment based on $200,000 property purchased with an injection of 20% of your own money.

Purchase Price $200,000
Increase in price in 1 year $10,000
Return on Investment in 1 year 5% (this is calculated by dividing the Increase by the Purchase Price)

Example 2 – Return on investment based on $200,000 property purchased with an injection of 20% of your own money.

Purchase Price $200,000
Your investment of 20% $40,000
Increase in price in 1 year $10,000
Return on YOUR Investment in 1 year 25% (this is calculated by dividing the Increase in price by Your Investment)

In both cases the property cost the same and increased in price the same and over the same period of time. However, in Example 2 the return on investment was calculated on YOUR initial cash that you invested into the property. The difference is massive – 500%.

You see, in this example, the bank that lent you 80% of the value of the property is already receiving a return on their investment. It is called interest. They do not require you to give them a part of the property appreciation as well. Given this, you can not count the entire value of the property in your investment return calculations.

Of course it is not as simple as that. There are other considerations that need to be included in the calculations to be precise but the basic idea is correct. If you started applying this method to calculating your return on investment, you will discover that investment property is an extremely high yielding investment returning anything from 20% to 100% per year on your investment. Investment property rivals shares for returns and surpasses shares through removing volatility and risk from your investment.

You have heard from so called experts that investment property will always underperform shares and other investments. You have heard that the only way to receive a high return on investing in property is through appreciation (price growth). You have heard that rent does not give you a high return. You have heard that you have to use Negative Gearing when investing in property to squeeze out any return. Unfortunately, none of these statements are true.

Let us show you why….

Let’s take an example property with the following variables:

Purchasing and Investment details:

Purchase Price (new 2 bedroom unit) $185,000
Bank Loan – 80% $148,000
Interest on Loan (Interest rate 5%) $7,400
Your Contribution – 20% (your cash) $37,000

Cashflow details:

Rent per year (Gross) $10,140
Total Expenses (property management, insurance etc..) $3,100
Rent per year (Nett – rental income after all expenses) $7,040
Total income from tax deductions $1,960
Total NETT rental income plus tax deductions $9,000

From this example we see that your final position by owning this property is that you will have a $7,400 interest bill and about $9,000 in income. Therefore, you will MAKE A SURPLUS OF $1,400 PER YEAR. What does that mean if you work out return on your investment?

Well, you have earned $1,400 on your initial cash investment of $37,000 (your contribution to purchase the property). This represents a return on your initial cash investment of 3.8%. That is low you might say and we would agree with you. You forgot about one thing… this property is paying you money to own it. You have just bought an asset that pays you from day one.

What happens to property over long term? Generally properties go up in price. In fact, the average increase in price recorded over the last 100 years or so is compound 7% per year. If we apply this thinking to the above example, 7% increase on the original purchase price of $185,000 is $12,950.

Therefore to calculate the TOTAL return on your original CASH investment, you need to do the following…..

1. Add the income from rent and tax deductions to the price appreciation.

* $1,400 + $12,950 = $14,350

2. Work out the total return on your initial investment by dividing the above by your investment

* $14,350 / $37,000 = 39%

Amazing, your initial investment of $37,000 used to purchase this property earned you 39% return on YOUR MONEY in the first year. Of course, unlike shares you are not able to cash out and take this profit immediately. With property, you have to wait for some time before you can cash out fully.

To put a 39% annual return on your money in perspective, it is 10 times greater then the bank will pay you. It is 4 times greater then professional fund managers strive to obtain – the same ones that get paid millions in bonuses. It is nearly 2 times greater then the richest man on the planet, Warren Buffet, consistently makes.

How does that compare to all your share investments or any other investment for that matter? Where else can you buy an asset and have it pay YOU from day one and increase in price? Remember property appreciates in cycles, but it ALWAYS appreciates.

This is what property professionals know and do not seem to want to explain to everyone else. Now you know how to calculate real return on your money, not the bank’s money. You do not have to work out the return on the bank’s money, the banks can do it themselves. You need to care only about your funds. So when you do the calculations right, you will find that overall by purchasing the right investment property, you will make up to 100% returns on your money. In the worst case scenario you will only make 30%. Either way, the returns are phenomenally high by normal standards.

All this can be done without any risk and in some cases, with absolutely guaranteed rent!

Now what do I do?

Hopefully we have shown you that property is a remarkable investment that is hard to substitute. Not all properties are the same and you need to watch out for those that may stand empty for long periods or give you tiny tax deductions.

Information Product Creation: Never Compete on Price Because There Is Only One You

Information product creation requires extensive preparation, no matter which niche you work within and you want to make sure that your information product has a successful launch. That probably sounds scary and intimidating but here’s the thing: this is a one time effort and it will pay off in a foundation that is strong enough to get your ideal clients to invest in your high-end programs and services without the perils of a traditional funnel. This article will teach you a few of the things that you need to remember if you’d like to invest in yourself and start on the information product creation path using your unique talents and abilities. Remember that you never have to worry about anyone ripping off your ideas because if you understand how to properly position yourself around your story.

Understand Both Strengths and Weaknesses: It is good to have an impartial view of your own strengths and weaknesses when lay the foundation of selling yourself within the information product creation process. It helps you figure out where you are, what you lack and how to move forward so that you get as much growth as possible. It is more than important, it is urgent if you want to create fast success for yourself to have personal positive reinforcement and deep belief to provide yourself the support you need so that you can get over your own limitations to ensure that your information product is as valuable as it can be.

You also need to know exactly who your competition is so you can study them and use their methods to help you improve your own standings. Down recreate the wheel, but understand the wheel and position yourself going uphill from the competition. Check out which kinds of opportunities you’ve already got and try to figure out how best to use them while taking care to remember your strengths and weaknesses. This is a great way to figure out where you stand against your competition which helps you figure out how best to grow.

Launch on Time: No matter what, even if you haven’t officially announced your “launch date” you should launch the site when you’ve said you would. This will force you to stick to your goal and actually work on it. Thinking that “I’ll launch it when I think it’s ready to launch” will only hinder your efforts. You’ve got a responsibility that you need to live up to with your launch, and you can’t move back on that one. If you get close to your launch date and you are getting hung up on your self limiting beliefs in your information product creation, don’t worry this about getting it out there and not perfection. As long as it is usable you should launch it. Launching on time is the professional thing to do and it is more important than creating a “wow” effect in your site visitors. You can always update/upgrade your website when you have to, so there shouldn’t be any issue with that.

Analyze Your Own Concept: If you want to make your information product creation successful you need to understand how good your concept is: is it really going to work for your chosen audience or would something else be better? You already know about your competition; how does your concept measure up? If you haven’t come up with your own idea and are trying to work with someone else’s concept, do some more work on your own before your launch. People want original ideas because they’ve seen too many other me-too websites already.

Test Your Concept Before You Commit To The Information Product Creation Process: One of the biggest failures people have with information product creation is not testing an idea before putting a lot of effort into producing an information product. PPC to a small 5 page site with a landing page is a great way to test an offer before you even produce it. If people will sign up to get it, you can be sure that you can create an information product that will target eliminating the pain of your target market. The small amount of money will be invaluable in using crowd sourcing to direct the final outline of the information product creation process.

You’ll have lots of hurdles to clear after the launch of your information product and the only way to truly take care of them is to follow the advice in this article to work smarter. Plenty of people work hard, but it is the ones who work smarter who make real money online with the information product creation business model.