Archive for April, 2007


Leave your Feelings at Home when Purchasing Income Property

Written by Marc on April 28th, 2007 with no comments

If you are a novice real estate investor, or an expert, there will come a time when your feelings get in the way of your logic.  You may fall in love with the yard, love the paint, or like the view of a certain property.  When you get these feelings you need to

STOP!

Investing in income properties needs to be a mechanical process.  You should consult and analyze the numbers to determine if a property is worth investing in.  Also use some common sense and do some research on the area you are going to invest your money.

If you do let feelings make your decisions, you may find yourself purchasing income properties that don’t perform well, or …

Read more articles on Business Ideas and Real Estate Investing.

Longer Mortgages increase your cash on cash return

Written by Marc on April 24th, 2007 with no comments

If cash flow is your priority in your real estate investments, you probably have considered many options.  Such things as adding a suite, renting out the garage, or turning a portion of the yard into a parking may have been some options that you have considered.

You probably have tried to lower your expenses as well.  This can be very effective in increasing your cash flow.  Most owners look at reducing their utility costs as a primary means to reduce expenses.  But, have you considered amortizing your mortgage over a longer period of time?

By extending the length of your mortgage over a longer period of time, you can increase your cash on cash return significantly.  Consider the following example …

Read more articles on Real Estate Investing.

Websites offer high ROI, low risk

Written by Marc on April 22nd, 2007 with no comments

If you are unfamiliar with owning a website, it is worth taking a look.  Websites cost as little as $0.99 at the moment, which would mean that you would have to go without your morning coffee to try your hand at being a webmaster.

Obviously, $0.99 doesn’t cover the development, marketing, or maintenance of your website.  None the less, if nine out of ten businesses fail in the first year, it would cost under ten dollars to get a website that would succeed (provided the odds work out as they should.)

Chances are that you could recoup your initial investment during the year.  Recently I crunched some numbers regarding a website project I was considering and my daily costs just …

Read more articles on Entrepreneur and Online Opportunities.

Keep up with your books – and allocate your time properly.

Written by Marc on April 21st, 2007 with no comments

With tax time in Canada looming (just nine days till the deadline) I have been sitting here working on my books.  The work has gone smoothly but it did give me some good advice – keep up with your accounting to keep track of your business efforts.

Looking over my books I can see some winners and some losers in my organization (I am talking businesses here… 🙂  ).  If I had kept up with my books last year, I would have known what winners to keep and which one’s to sell.

For those of you that don’t have the time or don’t like accounting (I know it is not for everyone…), hire a bookkeeper.  For a modest fee, they …

Read more articles on Entrepreneur.

Raise the rent and lose your good tenants?

Written by Marc on April 19th, 2007 with no comments

Like many landlords, you are often faced with the predicament over raising the rent (because the market can support it) and losing some of your good tenants.

A good example is the rental market in Saskatoon at the moment.  Housing here has been a hot commodity over the last few years and there have been a lot of condo conversions resulting in a shortage of rental properties.

A certain rental community in our city named McNab park is a good example.  The majority of the tenants in this community are lower income families, with the average income just over half of the city of Saskatoon average.  Basically for these people, any major rental rate increase will drive some of them …

Read more articles on Business Ideas and Real Estate Investing.

Diversify. Reduce your risk. Increase your profit.

Written by Marc on April 12th, 2007 with no comments

Now, when I hear the word diversify, I think mutual funds.  I don’t know if there is any other word used so much as diversify in their industry.  Diversification is a result of the old saying: “Don’t put all your eggs in one basket.”  Now, where might you ask, does diversification fit into business opportunities.

Diversifying your portfolio of businesses, income properties, and websites helps you in a few ways.  Some examples are:

  1. Protection from changing trends

    If all your rental properties are located in a town whose workforce depends on a particular industry (for example lumber) and suddenly the demand for that product drops, people may lose jobs and move out of the area.  This recently happened to a friend in …

    Read more articles on Business Ideas and Business Opportunities and Entrepreneur and Online Opportunities and Real Estate Investing.

Why I Love Online Business

Written by Marc on April 7th, 2007 with no comments

I recently was hanging out in a forum online where I came across an offer for complete websites – domain name, hosting, promotion, and updates with fresh content for $5 per site per year.

What really gets me excited is this:

I have to earn less than two cents per day to break even

Except for the Internet, I don’t believe anywhere else in the world there is the opportunity to have a complete business for two cents per day.  Chance are that there should be no problem earning two cents per day. 

If you look at it from the other perspective – how much could I reasonably make in a month – that is where I get …

Read more articles on Business Ideas and Entrepreneur and Online Opportunities.

Set Priorities to Increase Productivity

Written by Marc on April 4th, 2007 with no comments

Sitting here tonight I realize one thing:  I am not getting enough done in a day.  The reason:  no focus.

If you feel the same, you are not alone.  I find one of the most challenging thing being an entrepreneur, you need to set targets or goals for your day and work towards them.  Unlike a traditional job where someone gives you some tasks to do, you are on your own.

If you look at my past few days, you will see I have been a whirlwind of activity:  creating content for websites, blog posting, contributing to forums, looking at investment properties, looking at websites to invest in, marketing, etc.  If I would have had defined tasks or goals to …

Read more articles on Business Ideas and Business Opportunities and Entrepreneur and Online Opportunities and Real Estate Investing.

Take advantage of a booming market – using your home to get you into real estate investing

Written by Marc on April 1st, 2007 with no comments

A booming market can present some interesting investing opportunities.  If you are fortunate to have bought your home before the boom began, it has increased in value.  This increase in value could allow you to purchase some investment property. Consider the following example:

Rob and Barb bought their house just a year ago, in Saskatoon.  He put $10,000 down on a $70,000 home.  After the first year, their remaining mortgage is $55,000.  During the past year, they did some repairs to their home.  Recently, their home was appraised at $90,000.  If they sell their home, they would end up with $35,000 (not including fees and taxes due to the sale of their home).  Looking in the real estate listings at mls.ca, they find a …

Read more articles on Real Estate Investing.