How to Calculate Real Estate Investment Profits
Copyright 2005 Peter Dobler
If you are investing in real estate you will face a variety of challenges. First you have to find the right property. Finding the right property is a combination of personal preferences and opportunities involved in a real estate deal. My most important real estate investment principle is; "You make money with real estate when you buy the property not when you sell it". This means that I wouldn't touch a rehab property where the purchase price is not below 65%-70% of the market value.
Why do you need such a low price to make it work? This is quite simple. A common guideline among investors is that you must make at least $10,000 to make it worthwhile. Remember you're an investor and not a handyman. Rehab projects last typically 4-6 months, sometimes even longer. You don't want to end up making minimum wage as a handyman after the project is done. Quite frankly this is not uncommon for first time investors.
Real estate investment is all about numbers. If the numbers are right you must make every mistake in the book to turn your project into a financial disaster. That's why you must buy the property as cheap as possible. Selling the property is your least problem. First you have to put together a budget. Here's a little example.
Property A is located in a decent neighborhood with average home resale values of $150,000. That's what our property will appraise after the repairs are done. We also take out a hard money loan with 4 points and 12% (interest only) for 100% of the purchase price. We calculate that the property will sell for $150,000 in 6 months. There are about $10,000 in repairs you have to take care of.
Property A
Purchase Price $100,000
Purchase Closing Cost $8,000 (fees + 4 points)
Holding Cost $6,000 (6 months of interest)
Repair Cost $10,000
Insurance, Utilities $2,000 (you need a vacant property insurance which is more expensive)
Selling Closing Cost $13,000 (6% realtor fee of $150,000 + closing cost)
Total $139,000
Selling Price $150,000
Expenses -$139,000
Total Profit $11,000
This is just a very simple example, but I hope you get the picture. Keeping track of the numbers is essential in real estate investment. In the example above just imagine what happens if you spend more money for the repairs or you have to sell the property for less money. Even worst if you can't sell the property within 6 months and after 9 months you sell it for less money. Not only did you loose on the selling price you had 3 months of interest piling up as well.
When you're investing in rehab properties you have to have an exit strategy. My exit strategy is, to rent the house and refinance the hard money loan if I can't sell the property after 6 months for the price I'm asking for. This will cover my monthly expenses and I have more time to sell the property when the market is better. Actually converting a rehab property into a rental can be a very profitable choice of real estate investment. Friends of mine are doing quite well with this strategy.
Bottom-line; crunch the numbers, make a budget, keep track of your expenses and have an exit strategy. Having this in place you're good to go.
About the author:
Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner. Learn more about real estate investment at http://www.suncoastrenttoown.com or signup to his real estate investment newsletter by sending a blank email to mailto:suncoastrenttoown@getresponse.com
Peter Dobler
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Scotch Whisky: On top of the world
In terms of export, Scotch whisky amasses approximately 90% of all export sales combined in England and is a principle export commodity. This income is in great part foreign currency. This trend has been followed since the turn of the 19-century as the value of overseas marketing was discovered.
Between 15-20% of all scotch whisky consumed in Scotland is first purchased in Britain. Although the reason for this is unknown, they do not dwell on it since their Scotch seems to be more popular in other countries. This is proven by the fact that scotch whisky is within the top five export earners and makes a considerable profit while making very large contributions to Britain’s foreign exchange.
Approximately 200 markets are in the exchange for Scotch whisky with the European Union being in the forefront vying for top spot with the United States, Japan and other Asian markets following suit. The European Union is accountable for at least 50% of all Scotch whisky sales with the other countries rounding up another 40% or so.
A nine-year sales projection is in reserve of scotch stock maturing or already matured. In 1996 the stock of matured scotch was sitting at 2,741 million liters up a tenfold from 1945 at 247 million liters. The stock was higher in 1939 at 374 million liters. Obviously the Scotch whiskey market is predicted to grow based on the amount of maturing stock.
It is a difficult trade dealing in stocks with a scotch manufacturer as they sit and wait on maturing product, they cannot accurately gather information on what the market years down the road will be for their product. This is a commercial problem. The most significant undertaking is the capital investment of maturing stock.
There is a very small portion of fine scotch that actually makes it out of Scotland and into other countries. Matured whiskies as well as fresh fillings are an enticing profit grabber; however the time it takes for this product to turn over and give way to said profit makes this a risky endeavor. It is very hard to determine whether or not the products value will hold in the future.
In closing the value of these company’s finely distilled products is not likely to lose appeal any time soon, although one never knows what the future will bring. For Scotch lovers, another drink is always in their futures.
http://www.factasy.com/scotch/index.shtml
In terms of export, Scotch whisky amasses approximately 90% of all export sales combined in England and is a principle export commodity. This income is in great part foreign currency. This trend has been followed since the turn of the 19-century as the value of overseas marketing was discovered.
Between 15-20% of all scotch whisky consumed in Scotland is first purchased in Britain. Although the reason for this is unknown, they do not dwell on it since their Scotch seems to be more popular in other countries. This is proven by the fact that scotch whisky is within the top five export earners and makes a considerable profit while making very large contributions to Britain’s foreign exchange.
Approximately 200 markets are in the exchange for Scotch whisky with the European Union being in the forefront vying for top spot with the United States, Japan and other Asian markets following suit. The European Union is accountable for at least 50% of all Scotch whisky sales with the other countries rounding up another 40% or so.
A nine-year sales projection is in reserve of scotch stock maturing or already matured. In 1996 the stock of matured scotch was sitting at 2,741 million liters up a tenfold from 1945 at 247 million liters. The stock was higher in 1939 at 374 million liters. Obviously the Scotch whiskey market is predicted to grow based on the amount of maturing stock.
It is a difficult trade dealing in stocks with a scotch manufacturer as they sit and wait on maturing product, they cannot accurately gather information on what the market years down the road will be for their product. This is a commercial problem. The most significant undertaking is the capital investment of maturing stock.
There is a very small portion of fine scotch that actually makes it out of Scotland and into other countries. Matured whiskies as well as fresh fillings are an enticing profit grabber; however the time it takes for this product to turn over and give way to said profit makes this a risky endeavor. It is very hard to determine whether or not the products value will hold in the future.
In closing the value of these company’s finely distilled products is not likely to lose appeal any time soon, although one never knows what the future will bring. For Scotch lovers, another drink is always in their futures.
http://www.factasy.com/scotch/index.shtml
Healthy Ways to Say I Love You
Learn how to say “I love you” with more than words. These 15 relationship tips will keep your partner happy & your love alive. Good practice even if you’re still waiting!
Finding practical, meaningful ways to say “I love you” can be challenging – especially when your actions speak louder than words. Showing love regularly is a worthwhile habit since healthy relationships reduce stress, improve perspective, and boost the immune system. If you learn how to say I love you, you’ll benefit from a sweeter relationship.
These relationship tips aren’t just for lovers - they affect relationships with friends, siblings, parents, and even mothers-in-law! If you’re still waiting for the love of your life, these healthy ways to say I love you will help you get off on the right foot when the time is right.
15 healthy ways to say I love you:
Flow with the ups and downs. Sometimes you’re in a lousy mood, hurt, stressed, or need to be alone; the same goes with your partner. Every relationship has ups and downs. As long as there’s no physical or emotional abuse, learn to ride the valley to the next peak. That’s a huge way to say “I love you”: trust in your relationship and have faith that the rocky or even boring times will pass.
Forgive. Forget. Don’t bring the past into your current discussions or problems. Say I love you by letting go of past mistakes and disappointments.
Accept your partner’s beliefs about relationships. You may have a different or even conflicting view about the way relationships “should” work. Talk about your different expectations and find common ground.
Speak up for your needs. Forget the “If you loved me, you’d know,” game or expect your partner to read your mind. If you don’t state your needs, you can’t get angry or frustrated at your partner for not meeting them. Say I love you by being open and honest.
Don’t be afraid to disagree. Having different perspectives won’t ruin your relationship, but abuse, name-calling, and criticism will. Learn how to accept that your partner disagrees with you and still say “I love you.”
Ask questions. Maybe you don’t understand why your partner usually forgets your birthday or leaves dirty socks everywhere but in the laundry hamper. Ask why. Getting to the root of the behavior provides more insight than complaining about it. Say I love you by being curious!
Face problems as they arise. Don’t ignore problems or let your resentment simmer. Be honest about how you feel, and try to understand your partner’s motivations.
Listen carefully. Saying “I love you” involves truly listening to your partner’s concerns – without judging them. Often we just need someone to hear us, and to try to see things from our perspective.
Have fun together! Figure out what makes you laugh and incorporate those movies, jokes, or activities into your life regularly. Respect that your sense of humor may be different than your partner’s.
Work hard to stay close. When you’re married or committed for the long term, you may drift apart especially when children, the mundane routine, or financial struggles arise. Learning how to say “I love you” no matter how difficult life is will keep your relationship strong.
Update your dreams regularly and keep your partner involved. When you include your partner, you’re clearly saying “I love you.”
Be the first to apologize. The more you both try to smooth the bumps, the happier you’ll both be. Say I love you by being willing to make up, forgive, and forget.
Nurture your self-respect & self-esteem. Be someone you like and respect. Find meaningful work, get involved in the community or church, and pursue professional and personal growth. Explore your interests and passions, and share your life with your partner.
Cooperate. Don’t expect your partner to take the full load – whether it’s with the kids, housecleaning, relating to relatives, earning money, or investing. Say I love you by going out of your comfort zone!
Examine bad relationships. Why do you keep choosing the wrong partner or end up in addictive relationships? Do you make the same mistakes repeatedly? Knowing how to say “I love you” may not effective if you’re in the wrong relationship.
http://ping.fm/NfWfs
Learn how to say “I love you” with more than words. These 15 relationship tips will keep your partner happy & your love alive. Good practice even if you’re still waiting!
Finding practical, meaningful ways to say “I love you” can be challenging – especially when your actions speak louder than words. Showing love regularly is a worthwhile habit since healthy relationships reduce stress, improve perspective, and boost the immune system. If you learn how to say I love you, you’ll benefit from a sweeter relationship.
These relationship tips aren’t just for lovers - they affect relationships with friends, siblings, parents, and even mothers-in-law! If you’re still waiting for the love of your life, these healthy ways to say I love you will help you get off on the right foot when the time is right.
15 healthy ways to say I love you:
Flow with the ups and downs. Sometimes you’re in a lousy mood, hurt, stressed, or need to be alone; the same goes with your partner. Every relationship has ups and downs. As long as there’s no physical or emotional abuse, learn to ride the valley to the next peak. That’s a huge way to say “I love you”: trust in your relationship and have faith that the rocky or even boring times will pass.
Forgive. Forget. Don’t bring the past into your current discussions or problems. Say I love you by letting go of past mistakes and disappointments.
Accept your partner’s beliefs about relationships. You may have a different or even conflicting view about the way relationships “should” work. Talk about your different expectations and find common ground.
Speak up for your needs. Forget the “If you loved me, you’d know,” game or expect your partner to read your mind. If you don’t state your needs, you can’t get angry or frustrated at your partner for not meeting them. Say I love you by being open and honest.
Don’t be afraid to disagree. Having different perspectives won’t ruin your relationship, but abuse, name-calling, and criticism will. Learn how to accept that your partner disagrees with you and still say “I love you.”
Ask questions. Maybe you don’t understand why your partner usually forgets your birthday or leaves dirty socks everywhere but in the laundry hamper. Ask why. Getting to the root of the behavior provides more insight than complaining about it. Say I love you by being curious!
Face problems as they arise. Don’t ignore problems or let your resentment simmer. Be honest about how you feel, and try to understand your partner’s motivations.
Listen carefully. Saying “I love you” involves truly listening to your partner’s concerns – without judging them. Often we just need someone to hear us, and to try to see things from our perspective.
Have fun together! Figure out what makes you laugh and incorporate those movies, jokes, or activities into your life regularly. Respect that your sense of humor may be different than your partner’s.
Work hard to stay close. When you’re married or committed for the long term, you may drift apart especially when children, the mundane routine, or financial struggles arise. Learning how to say “I love you” no matter how difficult life is will keep your relationship strong.
Update your dreams regularly and keep your partner involved. When you include your partner, you’re clearly saying “I love you.”
Be the first to apologize. The more you both try to smooth the bumps, the happier you’ll both be. Say I love you by being willing to make up, forgive, and forget.
Nurture your self-respect & self-esteem. Be someone you like and respect. Find meaningful work, get involved in the community or church, and pursue professional and personal growth. Explore your interests and passions, and share your life with your partner.
Cooperate. Don’t expect your partner to take the full load – whether it’s with the kids, housecleaning, relating to relatives, earning money, or investing. Say I love you by going out of your comfort zone!
Examine bad relationships. Why do you keep choosing the wrong partner or end up in addictive relationships? Do you make the same mistakes repeatedly? Knowing how to say “I love you” may not effective if you’re in the wrong relationship.
http://ping.fm/NfWfs
lördag 7 februari 2009
Choosing a facial skin care product
Talking about skin care, ‘facial skin care’ seems to top the chart. There are loads of facial skin care products available in the market. The most common facial skin care products are the ones that are used as part of daily routine. These include things like cleansers and moisturizers. Toners and exfoliation ones are well known too but not many people use them as such.
The general classification of facial skin care products is based on the following:
* Gender (so there are facial skin care products for men and there are facial skin care products for women)
* Skin type (facial skin products for oily skin, facial skin care products for dry skin, facial skin care products for normal skin and facial skin care products for sensitive skin)
* Age (facial skin care products for old and facial skin care products for young)
* Skin disorder (i.e. facial skin care products for treatment of various skin orders like eczema, acne etc)
So that is your starting point for choosing a facial skin care product that suits you. A good way to start is by determining your skin type first. Also note that the skin type changes with age, so the facial skin product that suits you today, might not suit you forever and hence you need to constantly evaluate the effectiveness of your facial skin care product.
The facial skin care products are available in various forms i.e. creams, lotions, gels, masks etc, and a lot of people try to pit one against the other in their discussion on which form is best. However, one can’t really rate one form as better than another form. What suits you (and whatever you are comfortable with) is the best form of facial skin care product for you, really.
However, it’s important to note that these products work differently for different people. So the best thing is to try the facial skin care product on a small patch of skin (e.g. ear lobes) before actually going ahead and using it.
Another important consideration is the state of your skin. If you are suffering from a skin disorder of any kind, it is best to seek the advice of a dermatologist before you actually make your selection and start using a facial skin care product.
Once you have selected the facial skin care product for yourself, you also need to ensure that you use the facial skin care product in the right way i.e. follow correct procedures for application, use the correct quantity and make the facial product a part of your skin care routine.
http://ping.fm/FFgLU
Talking about skin care, ‘facial skin care’ seems to top the chart. There are loads of facial skin care products available in the market. The most common facial skin care products are the ones that are used as part of daily routine. These include things like cleansers and moisturizers. Toners and exfoliation ones are well known too but not many people use them as such.
The general classification of facial skin care products is based on the following:
* Gender (so there are facial skin care products for men and there are facial skin care products for women)
* Skin type (facial skin products for oily skin, facial skin care products for dry skin, facial skin care products for normal skin and facial skin care products for sensitive skin)
* Age (facial skin care products for old and facial skin care products for young)
* Skin disorder (i.e. facial skin care products for treatment of various skin orders like eczema, acne etc)
So that is your starting point for choosing a facial skin care product that suits you. A good way to start is by determining your skin type first. Also note that the skin type changes with age, so the facial skin product that suits you today, might not suit you forever and hence you need to constantly evaluate the effectiveness of your facial skin care product.
The facial skin care products are available in various forms i.e. creams, lotions, gels, masks etc, and a lot of people try to pit one against the other in their discussion on which form is best. However, one can’t really rate one form as better than another form. What suits you (and whatever you are comfortable with) is the best form of facial skin care product for you, really.
However, it’s important to note that these products work differently for different people. So the best thing is to try the facial skin care product on a small patch of skin (e.g. ear lobes) before actually going ahead and using it.
Another important consideration is the state of your skin. If you are suffering from a skin disorder of any kind, it is best to seek the advice of a dermatologist before you actually make your selection and start using a facial skin care product.
Once you have selected the facial skin care product for yourself, you also need to ensure that you use the facial skin care product in the right way i.e. follow correct procedures for application, use the correct quantity and make the facial product a part of your skin care routine.
http://ping.fm/FFgLU
Are Natural skin care products the answer to all problems?
When it comes to skin care products, you will find that a lot of people are very particular about using only natural skin care products. They treat all the synthetic products as harmful to the skin.
So, are natural skin care products the answer to all of our problems? What if a natural skin care product is not available for the treatment of a particular skin disorder? Are the synthetic skin care products so harmful that they should be banned?
Different people have different answers to these questions. However, the reality is that due to presence of synthetic preservatives, it’s really tough to find a natural skin care product that is 100% natural. There are natural skin care products that have natural preservatives, but their cost might be detrimental. Moreover, such natural skin products have a shorter shelf life and hence are not preferred by the manufacturers of natural skin care products.
Some people carry a wrong notion that since natural skin care products are natural, they cannot cause any harm to the skin. The suitability of a skin care product is not based on whether it is synthetic or natural. An unsuitable natural skin care product can harm you in almost the same way as a synthetic one. So, use natural skin care products, but be open to synthetic ones too (you might need them when a natural solution is not available)
Your selection of a natural skin care product should be based on 3 factors:
* The skin type (dry, oily, normal, sensitive) of the person who will use that natural skin care product
* The climatic conditions in which it will be used e.g. hot and humid condition would warranty the use of oil-free natural skin care products.
* The process for application/use of the natural skin care product. A good natural skin care product (in fact any product) can seem useless if not used in the proper way.
You can also make natural skin care products by yourself, by using the recipes that are readily available on the internet and in the books at book stores.
Use of organic fruits and vegetables is also popular as a natural skin care procedure. Some essential oils, herbal oils, are useful too and are known for their moisturising and antiseptic properties
However, using a natural skin care product does not mean that you can exercise carelessness with other aspects of skin care. Natural skin care products should be used like supplements to the following ‘essential’ recommendations: healthy eating habits (avoiding oily food), regular exercise, drinking a lot of water (8 glasses everyday), and cleanliness. This will then form a perfect and completely natural skin care routine that will help maintain a healthy beautiful skin for longer time.
http://healthylivingonline.info/
When it comes to skin care products, you will find that a lot of people are very particular about using only natural skin care products. They treat all the synthetic products as harmful to the skin.
So, are natural skin care products the answer to all of our problems? What if a natural skin care product is not available for the treatment of a particular skin disorder? Are the synthetic skin care products so harmful that they should be banned?
Different people have different answers to these questions. However, the reality is that due to presence of synthetic preservatives, it’s really tough to find a natural skin care product that is 100% natural. There are natural skin care products that have natural preservatives, but their cost might be detrimental. Moreover, such natural skin products have a shorter shelf life and hence are not preferred by the manufacturers of natural skin care products.
Some people carry a wrong notion that since natural skin care products are natural, they cannot cause any harm to the skin. The suitability of a skin care product is not based on whether it is synthetic or natural. An unsuitable natural skin care product can harm you in almost the same way as a synthetic one. So, use natural skin care products, but be open to synthetic ones too (you might need them when a natural solution is not available)
Your selection of a natural skin care product should be based on 3 factors:
* The skin type (dry, oily, normal, sensitive) of the person who will use that natural skin care product
* The climatic conditions in which it will be used e.g. hot and humid condition would warranty the use of oil-free natural skin care products.
* The process for application/use of the natural skin care product. A good natural skin care product (in fact any product) can seem useless if not used in the proper way.
You can also make natural skin care products by yourself, by using the recipes that are readily available on the internet and in the books at book stores.
Use of organic fruits and vegetables is also popular as a natural skin care procedure. Some essential oils, herbal oils, are useful too and are known for their moisturising and antiseptic properties
However, using a natural skin care product does not mean that you can exercise carelessness with other aspects of skin care. Natural skin care products should be used like supplements to the following ‘essential’ recommendations: healthy eating habits (avoiding oily food), regular exercise, drinking a lot of water (8 glasses everyday), and cleanliness. This will then form a perfect and completely natural skin care routine that will help maintain a healthy beautiful skin for longer time.
http://healthylivingonline.info/
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