Posts Tagged ‘investments’

How To Find A Good Broker

In a previous article, we recommended getting to know a good real estate, stock or business broker as a source for education and ideas. Some of our readers have asked us how to tell whether the broker is good or not? Sadly, as in everything else there are some very good brokers, and others that are not so good.

1. The first thing you need to do in order to make sure you find a good broker is to ask for referrals. Ask around, and talk to people that have worked with the broker before, and see what kind of experience they had with the broker.
2. Secondly, as far as real estate brokers go, make sure you find an investment broker, and not just a plain old residential real estate broker. Those kinds of brokers will just want to sell you a house, and generally have no better idea of how money works than you do.
3. Thirdly, find a broker who is an investor, as well. This type of broker will be familiar with what you are trying to do, and may even be willing to mentor you.

The education that a mentor can provide will be the most valuable type of education you can possibly get. You’ll not only be able to learn first-hand by someone who has actually done what you want to do, but continues to do it, and this will give you the opportunity to learn first-hand by example.

Creating Income from Assets

As we discussed in a previous article, our goal is to buy or create assets instead of liabilities to stay ahead financially. To figure out what is an asset, and what is not, we need to gauge how well it does what an asset is supposed to do – put money in your pocket. If it does put money in your pocket, it’s an asset, if it does not, then it is not an asset. Simple enough, right?

Once we have figured out what an asset is, then we must look at the cash flow it generates. This cash flow is the money that goes in our pockets. The assets that we need to focus on in order to create this cash flow can be in any form, but the most common forms of assets are things like properties, financial investments like stocks or businesses or creative endeavors that generate royalties like songs or books.

If an asset does not generate cash flow, it can also generate capital gains. Capital gains are a form of cash flow, except that in comes in a one-time lump sum. Cash flow generally comes in ongoing income, such as a monthly payment that comes in regularly. Capital gains are just as good, especially if the lump sum amount is sufficiently big enough to carry you over for some period of time.

The on thing that you should look for, as someone who wishes to buy or create assets that bring in income, is to look for assets that work hard for you at creating this income. Whether it’s an investment in a business, or a property to rent out, or resell, the basic process is the same – look for assets that will put the most money in your pocket.

Having more money in your pocket will mean more options for you, and that is the definition of freedom for most of us – options to choose what we want to do with our time, with our money and with our lives.

5 Tips for Buying Foreclosures & Investment Property

5 tips for buying foreclosures and investment property

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