Tip#10 Grab the right timing

The fast track to escaping the rat race is to take advantage of perfect timing!

I still remember what my first millionaire mentor taught me on how critical it is to take advantage of timing. When you understand this strategy you will be able to quickly narrow down all of the potential business opportunities out there to just a few.

The fast track to escaping the rat race is to take advantage of perfect timing!

Coincidentally, one of the common key to incredible success of all my mentors is taking advantage of timing when opportunities lie in front of us!

They also explain and highlight to me that their success was mostly due to the fact that they get the right timing was perfect.

So, the key to accelerate our success is to look for an opportunity in which we can take advantage of perfect timing.

For instance, those who grab the opportunity and go into the business when the business is building its foundation, most of the time, they achieve rapid success. If we are fortunate enough to recognise a brilliant opportunity during its foundation stage, we can take advantage of timing.

When we are positioned in the foundation of a business, we will be there when it goes into hyper growth. Those who are involved in the foundation of a company usually enjoy the benefits of hyper growth. Hyper growth is where true wealth is created.

Now, I am not saying you can't be successful by joining a more mature company, but it is certainly easier to get there during the foundation period.

So, do as my mentors did and position ourselves in front of a business or
industry that is about to go into hyper growth.

We can definitely accelerate our success easier by taking advantage of perfect timing!

Tip#9 Stay Focus To Achieve Your Dream

Once we have found the right opportunity and made a positive decision to get involved then we must focus all of our efforts in the right manner.

One of the key reasons that people fail to create a successful home based business is that they fail to focus all of their efforts in a laser like manner.

They become easily distracted by everything else that is going on in their life. Every new business opportunity that comes along they join and then do nothing.

If we want to be successful and live our dream lifestyle, we must learn to stay focus like a laser.

What do we want to focus on then?

We could easily focus on what many other people do and focus on the things that is not critical or do not carry any impact to our success like:

- The product was delivered a day late or somebody was terribly late
- Someone said no or reject the request
- We fail to make a million dollars in our first week

but the question is 'Is this the most important thing for us to focus on to achieve success?'

Of course NOT!

We must focus on critical areas in our new business that will lead us to success.

Yes, there are always going to be things that go wrong.

Yes, there are always going to be negatives if we look for them or find fault with them.

Unless we learn to stay focus on what is most important to us in achieving our success and financial freedom, we are destined to immerse ourselves in those things that lead to failure or perpetually stucked in rat race.

Last but not least, just focus all of our efforts on areas that will lead us to success!

Tip# 8 Acquire Necessary Skills

Constant Self Improvement Is Key To Success.

If we are currently caught up in the rat race, financially just getting by and
not living our dream life. Then, we may need to expand and acquire some new skills. Constant self improvement is key.

Those people who manage to escape rat race do so by being prepared to invest in themselves and acquire the necessary skills!

If we are going to be successful in our own highly leveraged business then there are some new skills we may require. The great news is these skills are easily accessible. Anybody with a strong enough desire can acquire these skills starting today especially in the internet era.

Firstly we will need to think differently than the people we may currently associate with through work and our social life.

For most people their thinking is the number one thing that
holds them back from their dream life. If we want to be successful, we need to change our old habitual ways of thinking and begin to adopt a prosperity mind set. Failure to do so will leave us right were we are in your current situation only this time even deeper.

Everything we need to know to achieve success can be learnt. All of the information, skills and mindset that we need is within arms reach. All we have to do is be prepared to reach out for it.

Without these skills and new way of thinking, we are destined to remain where we are right now.
Is this what you want? I suspect not or you would not be reading this blog, right?

Tip#7 Leverage On A Proven Business System

Making The Most Money In The Shortest Period Of Time!

A big mistake many people make is to start a business and become a solo-entrepreneur. If you do this then you will need to make all of the mistakes yourself, learn all of the lessons you need and eventually figure out what you need to do to be successful.

We do not want to be a solo-entrepreneur! It is much better to join a business that provides a proven business system.

Why? Simple, we will fast track our success!

We are far more likely to succeed in business if we can plug into a proven business system and follow the process of someone who has already been successful.

This is why the franchising business model is so popular, it provides a proven step-bysystem that can be run by a seventeen year olds boy or girl. Only problem is there is no leverage in most franchise businesses. Franchise owners outlay huge sums of money to buy into the business because we want the proven system to follow but the reality is we are simply buying ourselves a job.

There are a number of business opportunities available that provide us with a proven business system, and successful people who will work with us directly to virtually guarantee our success.

The beauty of some of the business system is they provide the opportunity for us to learn while making money.

How great is that?

Tip#6 Take immediate decisive action

When we put off taking action, we put off our better future!

Those who have broken free from the rat race and achieve financial freedom is those who have taken decisive action!

When we put off taking action, we put off our better future. When we procrastinate on moving forward in an empowered way we dig ourselves deeper into the rut that we may find where we are currently in.

Decisive action is what will make the difference for us in moving from
our present circumstances to the life we can only dream of right now!

Those who manage to escape rat race are those that take decisive action when they are presented with the right opportunity. They carefully evaluate all opportunities until they find an opportunity that excites them and stands up to their stringent assessment criteria.

Once they believe they have found it, they move swiftly and decisively to get involved. They make an empowered positive yes decision to get started immediately. There is no hesitation or indecision. They literally jump at the chance to begin working on their financial freedom.

If you we serious about improving our life, leaving the rat race treadmill for good and creating financial abundance then we must act decisively.

The best business opportunity in the world is of little value to the person who decides to think it over for a week or two, or more, and eventually succumbs to the temptation of watching all of the TV sitcoms every night rather than being decisive, bold and action oriented.

It is possible for everyone to escape from the rat race and live our dream life, but only if we take decisive positive action when we are presented with the right business opportunity!

Tip#5 Looking for Opportunity not Security

Opportunity First, Security Second!

As long as we seek security in what we are doing we are destined to remain a member of the rat race. Security is the shackle that binds us to the rat race. So many people are caught up in the rat race simply because they are more focused on security than they are on opportunity.

In order to break free from the rat race we need to seek opportunity first and security second. The landscape of opportunity is where the promised land of freedom lies.

In our society we are taught to get a good education and then find a
good company or job that will provide you with a secure position and income for many years or forever.

But did we know that this mindset is a new development?

Around a hundred years ago most people worked for themselves either on the land or through specialised skills.

Most people were entrepreneurs who had a mindset of seeking opportunity first rather than security. Due to the revolution of the industrial age that people have changed the mindset of people to work for large corporations because they thought it would lead to greater security.

Whilst we may believe we have security in what we are doing right now, the truth of the matter is that most of the people who have sought security are miserably unhappy being a worker drone in the larger collective.

People who seek security first always see the negatives or what is wrong in the opportunities they do look at. People who seek opportunity recognise the negatives, but their focus gravitates towards the positive side and the potential.

To break free from the rat race and create abundance for us and our family, we must begin to seek opportunity that has the potential to lead us to financial freedom.

Tip#4 Be Your Own Boss Profits are always better than wages!

Tips#4 Be your own boss!

If we truly desire to create wealth and escape the rat race then we must have our own business.

Why?

Well, just as Jim Rohn, the business authority, says "Profits are always better than wages!"

It's a simple principle based on the cold hard fact that few people become wealthy working for someone else. If we work for someone else the business owners are simply buying our talents, skills and experience at wholesale and selling us at retail while the business owners keep all of the profits.

We must have our own business if we want a true chance of gaining massive leverage through the efforts of a large number of people.

A word of caution is: not all businesses provide the same level or opportunity to escape the rat race. Do you know that there are many people who mortgage their house, scrape together all of their savings to go and buy a fast food franchise (or any other franchise). They then work ridiculous hours, manage difficult employees, pay massive overheads, and only to take home a meagre wage.

Sounds like they would be better off to stay in the rat race ya...

They are certainly no closer to escaping the rat race.

It is vital that we look for a business opportunity that we can start and run whilst keeping our current jobs. We want a business that involves little investment or risk, can be run part time in hours that suit us and provide an unlimited stream of income as a result of its leverage creation opportunity.

Look for an opportunity that we can channel our TV time or 8 to 10 hours per week for the next two to four years. With the right opportunity we will be able to create financial freedom and escape from rat race for good.

We must start our own business to escape the rat race and become fabulously wealthy and it must be a business that is highly leveraged!

Tip#3 Modeling The Rich To Get Rich By Leveraging

Looking For Leverage To Get Out Of Rat Race Permanently

Tips#3 is looking for leverage to escape from rat race.

Are you wondering whether you are currently caught in the rat race? Then, ask yourself this question: on who's efforts do you currently get paid?

If your answer is you only get paid on your own efforts, then, you need to look for greater leverage. If not, you are NOT serious about leaving the rat race.

Don't expect anything to change, if we don't change anything especially the way we think...

Tips#3 to escape the rat race is looking for opportunities to gain maximum leverage on our personal efforts and time.

What is leverage?

Leverage simply means the ability to generate more and more income with less and less works. If the strategy is to get paid for our time, we are not leveraging.

"I would rather have 1% of the efforts of 100 people than 100% of my own efforts" ~ John Paul Getty.

As highlighted by John Paul Getty that it is better to earn a small amount on the efforts of a large group of people than earning 100% of your own efforts.

What will happen to our income, if we stop going to work for a month?

Just take an example of a friend of mine who is a senior sales manager in a big corperation. She told me that she was getting paid on the efforts of her 50 sales team members i.e. she is leveraging on her people to make money.

However, after a short conversation, she soon realized that if she took the rest of the year off she would soon be unemployed and as such she had little leverage from her current job.

A major step to getting out of the rat race is to look for an opportunity to gain massive leverage through the multiplying effect of lots of peoples efforts combining with our own ones!

Today, more and more leveraged tools are being created such as computers, internet, wireless and many more to help us generate more with less. If we want to keep up with the rich and escape from the rat race, we need to understand the power of leverage and use the leveraged tools that the rich are using. The average use fewer leveraged tools than the rich.

People who do not learn to use leveraged tools like computers and internet will fall behind financially or work harder and harder just to keep u

Tip#2 Stop Trading Our Time For Money!

Escape The Rat Race Prison For Good

The greatest trap of the rat race is the trading of hours for dollars. As long as our only wealth creation strategy involves trading of our time for money, the more trapped we will be in the rat race.

Thus, the second tips to escape the rat race is to STOP trading our time for money!

I am not suggesting that we should all quit your job today but we should begin immediately to create an additional or multiple income (esp passive income) streams that gives us greater leverage than our job does.

As long as our income is dependent on the hours we spend earning it we will never have time or financial freedom. So, no matter how much money we earn in our career or business we will never have our dream lifestyle because we will not be able to fully appreciate the financial success that we have.

As an employee, we are in a terrible position we are stuck deep in the rat race because we are trading our hour for money!

Decide today that we will no longer trade our time for money directly in future. Make the decision that we will look for a business that allows us to take advantage of our third tips. It is vital to getting out of the rat race!

Tip#1 Power Your Dream To Success

It is just like Ratatouille - Anyone can cook!

How to escape rat race?

The first strategy we need to escape the rat race is to have a powerful dream that drives us forward. Those who have successfully escaped from the day-to-day mundane life of being caught in a rut have done so because they have had a dream for something better!

If we don't have bold, daring and imaginative dreams then we are just not being realistic in life!

The reason so many people stuck in the rat race is that they have simply given up on their dreams in life. Before we can successfully make a great escape we need to have a dream.

So what are our dreams?

What are our goals in life?

How can we acquire an expanded view of possibility for us and our family?

Answer these questions and we are well and truly on our ways to raise ourselves above our present circumstances. Get excited about our dreams and we will develop an internal drive to take action to achieve our dreams. Expand our dreams even further and we will become unstoppable when obstacles get in our ways.

We can find numerous ways to create a residual walk away income for life that would give us both time freedom and financial freedom but chances are without a powerful dream we would never do anything about it!

So, all success in life starts with a dream!

One of the way to start a dream is goal setting.

The first thing I would do is write a list of 100 things that we would like to Have, Do and Be in our life. This would be an excellent place for us to start right now!

Imagine for a moment that both time and money was no object in our life.

What would we have in our life?

What would our dream home likely to be?

What car would we drive?

What other toys and material possession would we acquire?

What about the things we would do in life?

Remember that time and money in life are no obstacle so what would we do?

Just go wild for a moment and write down as many ideas as we can.

And finally who would we become?

As a person, what characteristics would we like to acquire?

What personality traits and roles would we take on?

Write down all of our dreams in life see if we can make a list of 100 things we would like to Have, Do and Be in life!

Once we have made a list of things we would like to do, just imagine and have as many images as we can that represent our dreams.

Surround ourselves with these images and begin to imagine our life being complete with all of our dreams turned into reality from there, it is simply a matter of the right vehicle to manifest our dreams.

All success in life starts with a dream - it is the starting point of escaping the rat race to achieve financial freedom!

Invest in 401k retirement plans

"Invest in 401k retirement plans." That's the one thing I learned about finances when I first came into the workforce. It was the smart financial move that everyone was doing. Since everyone was doing it, it had to be right. Right? Boy was I wrong.
What I'm about to share with you will shift your paradigm about the beloved retirement plan and all the 401k information you have ever been told.

401k investments remind me of a bit that comedian Jerry Seinfeld does about dry cleaning.

Let's get one thing straight about dry cleaning right now. It doesn't exist. There's no way of cleaning with dry... And we walk into these places with the big signs out front, "Dry Cleaning," and somehow never question how they were able to put this absurd concept over on us.

This is how I believe most people approach the 401k retirement plan. Like dry cleaning, most tend to never question what goes on back there. We see the pretty "401k retirement plan sign" and since everyone is doing it, we assume that everything is OK.

So what makes this qualified retirement plan look like such a lucrative deal to so many people? Let's look at how it's often pitched to employees.

• Employer Match
  To be honest, this was the one that did it for me. "It's free money," you would hear. Who doesn't want free money? I do, of course.
  
• Tax Saving Tip
  You're putting your money in before you pay taxes. So, you're saving all this money by not having to pay taxes. And your money continues to grow faster because you don't have to pay taxes on the gains within the plan.
  
• Future Lower Tax Bracket
  You will access your cash when you retire. Since your monthly income will be less than it was when you were working, you will be in a lower tax bracket. This sounds like a great plan!
  
• Easy
  Once you set up the plan, it runs on its own. The contributions are taken out directly from your paycheck and you don't have to do anything else. So basically, you "set it and forget it." You don't have to worry about funding your retirement anymore since it is all done for you.
  

Sound familiar? That's the gist of it right? You get free money, tax savings, and it's shockingly easy. But step back, and I mean way back for a minute and look at this plan from a 5,000 foot view. Are these statements true and/or do they really make this plan favorable?
Get ready for some 401k information no one tells you.

• Employer Match
  
  Let's say that your employer will match your contribution by 50%. Many argue that you get a 50% return on your money, but that is not the case. The employer match does not equal the rate of return.
  Here's an example taken from LEAP by Robert Castiglione. Let's say that you put in $1000 per year at 8% for 30 years, totaling $122,345. If you're employer matches 50% of your contribution, that would be $1500 per year at 8% for 30 years, totaling $183,518.
  In the end, with the employer match, you do have 50% more but that doesn't equate to a 50% rate of return on your money. To determine that figure, you must see what kind of rate of return you would need to get to $183,518 contributing $1000 per year for 30 years.
  
  

  Contribution per Year	Years	Rate of Return	Future Value
  $1000	30	8%	$122,345
  $1500	30	8%	$183,518
  $1000	30	9.47%	$183,518

  
  
  In the example above, with your employer match, you only receive an additional 1.47 % annually over 30 yrs, not a 50% rate of return.
  
• Tax Savings
  This statement is actually false and probably the biggest misconception. The correct term to describe this "feature" is tax deferral. Meaning, you are putting off paying taxes on the money you paid into the plan. There are no tax savings. Let me repeat...
  

  There are no tax savings.

  What you are essentially doing is delaying the inevitable...paying taxes. Can you remember the last time procrastination was a good thing?
  
• Future Lower Tax Bracket
  This argument is something I just don't get. I admit, I bit when it was presented to me as an advantage. But it just doesn't make sense.
  The goal here is to make you more money, right? Well, if you are in a lower tax bracket in the future, then didn't the plan fail? The plan is providing you less money in your golden years when your intention was to have more.
  Let me ask you a question. Would you rather pay $1,000 in taxes or $100,000? If you said $1000, why? I would love to pay $100,000 because that means I made so much more money than in the scenario where I only pay $1000.
  Are you investing to win or to not lose?
  
• Easy
  Yes, it's easy...painfully easy. Remember, it takes virtually no effort to put your money in, but no one considers the repercussions of needing, or taking out the funds prematurely. It's like those old piggy banks. It's easy to get the money into it but then you have to break it with a hammer to access the cash.
  What worries me here is that people typically turn their brains off when they get into this plan. They have no idea what their money is invested in and don't have an exit strategy.

Generating Profits in Properties Investment Basic Guide,

Why invest in Real Estate?Real estate investments are one of the most secure types of investing nowadays. We all know that stocks and bonds can be badly affected by recessions, as we had experienced during 2008. Real estate on the other hand, has the capacity to increase in value as time passes even as an effect of economic fluctuation. If you are thinking of the costs of investing in real estate, you should not worry as we will show you how to make that purchase without taking too much from your own money savings.

Real Estate Never Depreciate in the Long TermReal estate never depreciates in value. Of course this may sound unbelievable because several years after the sub-prime crisis, the property prices in USA had gone down up 30-50% at some places. But in the long term of 10-20 years, properties only appreciate.
This is one of the most important characteristics, which are the main reason why you should opt for this type of investment. Since no new land is created on earth every single year either through the creation of man or by nature, the demand for this limited supply of this property increases as the population of the earth also increases. The higher the demand, the higher will be its resulting market value.
You can earn profit in real estate in either of three methods: acquiring, selling, and renting it out.
There are several different methods through which you can earn a profit or income from real estate.
First is by giving you better leverage hence making it desirable collateral for loans. The earning capacity for these types of properties makes it an attractive mortgage subject for banks and other financial institutions.
Secondly, this type of investment appreciates over time or increases its net worth through the years.
Thirdly, it has the ability to generate cash flow which is mainly that part of the income profit which you can spend after you have paid for your loans and other expenses necessary for the maintaining of the property.
And lastly, it is a type of investment where you can have a “say” on what happens to it. You can decide what to do with the investment and not just let others do the thinking for you as what happens with investments on stocks where a board of directors generally does the overall decisions for your investments.

Real Estate is not “mobile”, so its location matters.
With regards to “where” your properties should be located, there are some factors to consider. Both the short and longer distances from where you reside have their own pros and cons and it is up to you to decide which to choose. Basically what you have to consider about it would be the type of property that you have, its size and how much you manage the property.If you have a property which is nearer to you, you may have your tenants at your house almost all of the time. They will be there to field their corresponding interests and problems that they may be experiencing at your property. This can be quite bothersome as you really do not want to hear every trivial thing that may be happening in the place but has no significant relation with you as the owner.
Ideally, smaller properties should be located close to home as it only requires lesser management and hence can be constantly checked for any problem that it may be having such as minor repairs and vacancies. These can all be managed single-handedly by the owner himself and does not require the help of professionals. Also, if a prospective tenant would come by, he will be able to show him or her the property without taking much of the time in travelling. Such a small property should not take hours to reach.
In direct contrast, larger properties can be had even if it is located outside one’s own country. They will require the handling of experienced professionals which shall be composed of the management. With the property in their hands, the owner can take as much time off without the property in sight and still be assured that it is being run by capable men. This is why such properties can be located at farther places.

What Type of Properties to Invest in?
So what type of property should you put your investment on? Commercial leasing spaces such as office and warehouse units, or should you choose to buy an apartment? As far as cash flow is concerned the best property to buy would be apartment buildings. There are several factors which makes it the best property to acquire and not something else.First, apartments can be bought cheaper than other types of real estate such as houses. They have a lower premium compared with other real estate investments.

Secondly, apartment rental incomes are not affected by business cycles that can be in season or out of season. Having a shelter above your head is one of the most basic needs of human beings hence the demands for it will never go out. You may lose a tenant today, but tomorrow there will be another looking for it. Thirdly, an apartment will provide you with a regular source of income, which you can increase depending on the prevailing market price.
Since apartments are rented out for shorter durations such as 6-12 months at a time, the owner will be able to change the rental fee if there is any fluctuation in the market. Apartment complexes also have an edge over other types of real estate in that they provide additional facilities to tenants such as recreational facilities that make them more attractive for potential occupants.

How to Evaluate and Estimate a Property Value
The first thing that you would need to know when choosing a property to buy is its value. So how do you determine a property’s value?
First, you need to know that a property’s value largely depends on how much income it is able to generate for the whole year which is called its annual rental income. There is a formula which is used in order to determine the value of a property which is:
Property Value = Annual Rental Income/ Capital Rate
A property’s capital rate will depend on its location and also in its type. To get the current rate, you should know the prevailing market rental income for the type of property that you have and also the selling rate of the property. Through this method, you will be able to know if the property is just the right amount or is overpriced.
In order to know if it is worth your money to invest on, you should also compute if it will be able to provide you with a fair amount of income that will give you extra cash after you have deducted mortgage payments and also other expenses for the property’s operations.

Finding good real estate agents
One of the best ways to find a property that will be worth buying would be by hiring the services of a real estate agent. Real estate agents know the ins and outs of buying real estate and they may know a property or two that they know would be a good buy. They know the current trends in the market regarding real estate prices and also they will know how to go through the whole process of buying the property that they can get you the best price that you can pay for such a property. They can also help speed up the negotiation process by knowing how to ask for the right deductions on what things. They also know better about government taxation regarding such acquisitions, the amount of rent that you can expect from such a property, the type of financing that it would require and how to manage the property too.
When choosing a proper real estate agent for you, you should ask him certain things and see if he will be able to answer them correctly and promptly for you. Things such as the amount of income from the property, what age it is, and how much the maintenance costs would be if you buy that property.
He should be able to know what these things are if he is a good real estate agent. Also, he must be able to answer your inquiries promptly to see that he is very much interested in working for your interests. He may even offer some of his services for free if he is really one of those fine agents that seek their employer’s good and not make profit out of them by conniving with the agent of the seller of the property. He should be able to get in touch with at regular intervals in order to update you with how the negotiations with the seller are going and if there are any new developments with the sale.Real estate agents are usually hired only by sellers and not by potential buyers but if you really want to get the best deal out of the property, having your own real estate agent to assess the property value would be a good step.

Finding Cheaper Properties
If you wish to buy a property but do not have that much budget to do that, then you should turn your sight on buying cheaper properties. These properties may mean poorer conditions but with the proper management, you will be able to turn it into a high-income generating property. There are various reasons why properties go out for a lower price than that of the market and these should make you wary about the chances of buying one.
First there is the problem with finances which is one of the major reasons why an owner will agree to settle for a lower rate. If he cannot keep up with the maintenance costs and other operational expenses, he will be forced to sell the property.
Second is the death of the previous owner and the court is settling his properties. The need to speedily dispense of his properties makes it one of the reasons why it will be put up for sale at a cheaper price.
Third is the dissolution of partnerships due to irreconcilable differences between the owners.
Another reason also is the poor condition of the property which has been mentioned earlier due to perhaps the increase in vacancies in the property and the poor type of management that it is under. If the owner or manager has been secretly taking funds from maintenance costs then the property will definitely be neglected.
There is also the issue with foreclosed properties, which are auctioned at lower prices and also the length of ownership that may be taking quite a toll on the owner. He may find it better to sell the property and may be thinking of retiring.

Financing: Loans vs. Cash
So how do you finance your acquisition? Should you buy the property completely out of your own money or will i t be a better option to put up a loan from the bank?
Experts in the field of real estate investment advice that you should make the acquisition with as much as 90% of the money from bank loan. It is not considered to be a wise move to buy the property with all of your savings especially if you are thinking of renting the property out for tenancy. You only need to think about how much you will need to borrow from the bank, what would be the ideal time-frame for the loan and at what rate should you make the loan.
Experienced real estate investors know that there will be greater returns and advantage if you borrow your capital from the bank. It may not seem so to you at first glance but if you think about it carefully you will be able to realize how much better it is to do so.
But a note of caution here: you should not loan money from a bank if the amount of net income which you can get from the property does not exceed the amount of payment that you have for the bank loan. The loan should at least be 60% lower than the amount of rent income that you can get from the property.

How much loans should you take up when financing a property purchase?
Taking up loans from the bank may not seem to be a wise idea at all but investors advise that you should even make 90% of your investment capital come from a bank loan! Why should this be so? Isn’t it suicide to do that?
No, actually it can generate you with additional funds and lesser interest rates to pay hence making it the best move that you can make for a real estate investment. Loans are like one of those questions from the Sphinx which some do not comprehend at all but with the correct knowledge, you will be able to navigate through the maze easily and acquire benefits for yourself along the way.
First, you should understand the different factors that come into play when you make a loan
the principal, or the amount of money that you are going to borrow;
the length of time where you will be obliged to pay for the loan; and
the interest rate which the bank will charge upon the loan in order for them to generate income.
So here is how you do it:– go for the largest amount of money that you can borrow,– the longest period of time for you to pay for it,which will result into lower amounts of interest on your loan making it easier for you to repay them back.
You may think that it is a crazy idea as you may get worried about how you are going to pay for it back. What you need to know is that at this setting, the amount of payments that you need to make each month or year gradually lessens as the interests lessen and the period lengthens. This makes it all easier for you to pay them contrary to what you may be thinking as an additional problem to your property business. It is exactly the opposite.
With the income from the rental of the property being able to cover for the expenses in the property and with the small amount of payment that you need to give to the bank, you will surely have an extra profit wherewith you can gain additional funding if you know where to put that money.
You can either put it in a savings account where it can earn interest, invest it in another real estate property, which can both provide additional income for you. Or, if you wish to cut down your loan, you can use them to pay for it which will lessen your outstanding principal which in turn will lessen the amount that you would need to pay to the bank. If you do this, you may have to give an additional fee for the early payment that you make but it is not that much though.

Mortgage Refinancing
One of the ways, which can also help augment your financial situation and pay for the investment loan, is by getting a mortgage refinance, on your existing properties. This method allows you to increase the value of your property and also to provide you with additional funds to help pay for the loan.
Since property appreciates in value or increases its market price as time goes by, you can apply for mortgage refinancing say perhaps after four or five years. This will not hurt as the additional money that you can get will help pay for your past loan and also give you an extra allowance which you can use for another real estate property also. Through that property, you can get additional income which will help pay for the other property.
You should not worry about banks interests on your loans. They do not act as a liability if you are investing that money on a money-making property such as properties for rent which includes apartments and condominium units. The income which these properties generate will cover more than the payments that you would need to do and also the maintenance and operational costs.
Do not think of making investment loans as you would with house loans. Houses do not generate income and so the least amount of interest should be taken into consideration when planning to acquire a home. But if you are investing on a real estate property which is able provide you with cash flow, what you would need to consider would be the amount of return on investment that you can get from it and how fast you will be able to get back your capital. You will be able to get maximum returns only if you put less money from your own savings and larger amounts from a loan.

Acquisition of Properties Through Auctions
There are several things that one has to know and think carefully over before buying properties that are auctioned in the market. Firstly, you should know that there are two different types of property auctions: those done by banks and those that are done by the courts. Mostly, properties are auctioned to the public due to being foreclosed either by the bank or by the court.
These two also have distinguishing characteristics between them that you should know in order to be able to go through the process more carefully. Those done by banks are called Loan Agreements cum Assignment or LACA; these types usually go on auction without the necessary titles hence you should be ready to have some budget for the processing of the title.
Those coming from the courts are called non-Loan Agreements cum Assignment or non-LACA and properties auctioned do have titles to them. LACA requires lesser amounts of deposits than those of the non-LACA. And aside from that, auctions of the court come less frequently as properties still have to go through a long process in order to be legally available for auction.
After winning an auction for a particular property, you should check the conditions of the property and see whoever the owner might be. You can do these by going to the appropriate government agency which deals with real estate ownerships. See if the property needs a lot or minimal amount of repairing to be done so you can make some arrangements if that can be deducted from what you have to pay.
The property should also not contain any stray occupants or any occupants at all. It will be your property now and you will have the legal right to eject anyone who is occupying your property illegally. You may need to consult with your lawyer regarding this procedure but the sooner that you can get them out, the better will it be for you. You will also need to be ready to settle any payments or fees that may still need to be paid such as assessment fees, unpaid utility bills and quit rent.
You can get some help about acquiring real estate properties by contacting the Malaysia National House Buyer’s Association. They will be able to provide you with necessary details that you need to know about buying properties especially if you are a first-time buyer. But in the meantime, you can get help from different agents, real estate help centers and government agencies which deal with buying real estate.
Study also the various difficulties or problems which you may encounter on the process of buying real estate such as missing titles, poor conditions of the property and the awarding of ownership to winning bidders. Being in the know before these things happen to you will greatly help you to find a solution for them in case they come your way.

Property Holding Company Vs. Individual InvestorYou can also choose to invest in real estate through a company, which deals with buying, and selling real estates. This is a good option too since the government allows deductions on company taxes, payrolls for employees, operating and management expenses and also on the depreciation of machineries. This can serve as a plus for your investment since it cuts out a lot from your income tax which cannot be said to be the same if you are working as an individual real estate investor.

Checklist before taking up a PropertyBefore buying a property, you should also do some checking about certain things about it. Here is a checklist of what you would need to assess in a property before choosing to buy it.
• What is the physical condition of the property? Is it in a good, habitable condition or is it nearly falling apart? Would you consider buying it at this state even though you can get deductions due to the damages or repairs that need to be done on the property?
• What type of setting does it have surrounding the property? Is the area where it is located a place which has shown much improvement over the years or is it in a place that is gradually being abandoned due to the worsening conditions surrounding the area? If so, you need to know beforehand that it may not appeal to prospective occupants and you may experience losses from it.
• What type of additional facilities does it have? Do they have amenities which will serve to attract good tenants such as enough recreational facilities like a basketball court and a swimming pool, sufficient security measures and sufficient parking areas for the occupants? These are all factors which can make or break your real estate rental business.
• Is the property partially or fully furnished or does it not contain any furnishings at all? Furnishings help increase the rental income that you can get from the property hence seeing if it has or has not any of them will also determine your future income from the property.
• How old is the property? Has it been built recently or has it been in existence for quite a long time already? You need to know that the older a facility gets, the more repairs would be needed to help refurbish it. Minor repairs such as repainting and fixing of broken water and electrical systems can be quite costly so you should be taking age as a consideration.
• Has the property been able to attract a lot of occupants for the past few years? Does it have a lot of occupants at the moment? To be able to know about these, you should do your own ocular inspection but not flagrantly. You can simply pass by at the property when the occupants would be more likely to be at home and you will be able to know that and also the type of occupants that it possesses.

The location of the property can also be a major concern for the buyer but what you should always think about is if the property would be able to command a good return on investment. A property can be in a high, inaccessible place but if there are people, who would be willing to pay highly just to have it, why not buy it? Your property can be in a highly-accessible area but if no one is willing to put up occupancy there due to other competition and bad conditions, then it is just as bad as having a rental property up in the mountains.

You should also drop by the city planning agency in order to see if there are any planned changes in the area such as the building of roads to see if the place would be viable for future rental business.
So as you can see, sometimes location is not a major factor at all when trying to decide whether to buy or not a property. If after you have answered these questions and has seen that the property will be a good investment, then there is no reason why you should not buy it.

What to do with your property: Sell and Rent out?For you to decide on whether you should let your property be rented or sold out in the market, you should carefully think over some factors which can directly affect on how your property will perform in the market in the near future. You should also think about the monetary considerations regarding the expenses that you would have to make such as maintenance and operational costs that will form part of the money that you would have to do away with on that property.
First, you should consider if the property will be able to cover for the expenses of long-term ownership which is required for leasing out rental properties such as maintenance of the building, the fixing of any damaged or worn out facilities such as rotting ceilings and woodworks which may be attacked by termites which will cause tenants to move out if left untreated.
Aside from that, you will also have to pay for the initial payment for the acquisition of the property that will also include the fees for your agent, legal fees and other documentary stamps that will be needed for the transfer of ownership. Know beforehand what would be the income capacity of the property once you are done with the repairs and furnishings that you will do on it. Will it be able to cover the costs of maintenance and other expenses such as payroll for employees that you may have just in case?
If you are thinking of making profits by selling, you should think about making more than what your purchase price has been. Is the market selling properties of the same type at a higher price than what you have originally paid for it? Or will the difference be only a small margin? Do not be hasty in making decisions over selling a property. Make sure that you will not be making any profits from it through rental if the current selling price does not give you that much profit from it. The fluctuations in the market price will vary almost daily so you should be careful with the timing of the sale.
If you choose to rent the property out, think of the monthly cash flow and the monthly payments that you would need to do for the investment loan that you have made. If there is also only a small amount of margin between the extra profit that you can get out of these deductions then you should think twice about renting the property out. Selling it might be a better option.
Think also in terms of the equity that you will get out of such rental income. Will you have an increasing owner’s equity as time passes by or will you be losing out a lot more?
Also try to think about the future of the area where it is located. Will it be a good commercial area or residential area? Will it attract future tenants to the place or would it be better off as a private property? These are things that you would have to consider before choosing to rent or sell your property out.

Beware of the Signs that you should sell your properties
There are certain signs that will tell you if you already need to sell your property in the market. You should be wary of them in order to avoid overburdening yourself with things to think about when you have really no other choice but to let the property go from your hands.

First, there is the gradual lessening of the amount of equity that you are getting from the property. Is there a lot more repairs that you spend on which takes up much of the income that you are getting even getting to the point where your capital is being used for the maintenance costs? If so, then you probably should be thinking about selling the property.

Second, are there problems that your property might be facing and you can’t find any other solution? Such problems might be disagreements between the owners, the increasing deterioration of the property and the increasing competitions from other rental properties? Are you experiencing a lot of losses due to these factors? Then you should put up your property for sale.

Third, are you thinking of taking another direction in your life in which the ownership of the property would not be quite in line with what you have in mind such as retirement? Old age and a change of residence or occupation can all lead to a different path.

And last, but the most important of all, is if your property can now command a good price compared to your original purchase? If the property is at a good selling position then you should think about selling it out since buyers may get harder to find as competition increases. These are all signs that your property can now be put up on sale.

How to sell a property?
If you finally decide that your property is at the right moment to be sold in the market, you should do some things that may be necessary for you as the seller.
First and foremost, you should think about the person to whom you will hand the ownership of your property to: what type of owner should possess your property? Should he deserve to own the property so much so that he should possess the right skills for management and should have enough wisdom with handling rental property estates? In order to have a buyer, you should post an advertisement for your property or you can get them through a reliable agent who will find the right buyer for you – one who has the finances and will agree at a price that you will most likely settle for.
In your advertisement, it is not necessary to include the address or location of your property. Doing so may harm your bargaining interests as the buyer may set up his own price which may be a lower than what you have in mind or what your agent has found your property to be worth. Also, you should not place the final value of your property on the advertisement. This can turn off some potential buyers who may later agree with you at the price set once they see the property for themselves.
The advertisement should contain an appealing and attractive description of what the property is and its advantages. A simple and bland style of advertising will definitely not do your selling strategies any good if you fail to catch the attention of prospective buyers. List down the various advantages that one can get by buying the property such as low mortgage payments and low interests but do not include the amount of the actual payment itself.
You can choose to sell directly to the buyer and not through agents. This will help attract them as they know that the price would not be padded with additional fees for the real estate agent. Who would like to pay for a higher price if he can also acquire the property at a lesser rate if they buy through the seller himself?
Lastly, do not let your occupants get a hint that you are selling out the property. It may alarm them and send them packing which may not be good for the next owner of the property.

Renting out
When a property is rented out, it generates income for you and you should really treat this as a business.
First, you should know what type of tenants you would like to have. Do you want students, families or bachelors? Do you want a people with stable jobs or are you fine with those who do not have one as long as they can pay the rent on time? Think also about the type of unit that you will be renting out. Will it be for commercial purposes such as offices spaces and warehouse units or would you like to rent it out as an apartment?
Advertise your property in order to attract potential tenants. You can also do this by word of mouth through your friends or relatives.
You should also ask for a deposit of two-month rental and an advance payment for one month. This is in order to secure your finances if ever the worst comes and they fail to pay you for other expenses. Also, you should ask for some legal advice as to what your rights are as an owner which you can impose upon occupants and also their rights too. This will help you avoid any unnecessary problems that you may have concerning legal issues.
You should also know that you can take advantage of the government’s tax deductions for owners of rental properties. Such things will ease you some of the financial burdens of having a property and give you additional money to invest in other ventures.

Summary
All of the options that you have for real estate buying or acquiring, selling or renting it out for occupancy will provide you with sufficient profits that make it one of the best investments to buy. You don’t want to lose and gamble your finances into an unsure future. So place some of your money in a real estate property. It is a better investment compared to many other kinds of investments that are out there.
Real estate presents you with an opportunity to have a secure investment portfolio. It is a type of investment that is not affected negatively by fluctuations in the market and appreciates over the longer term. Properties allow you with a lot of ways with which to earn profits and they are seldom out of demand. With these characteristics, it is definitely one of the most important assets that you can have in your portfolio.
If you are interested to get educated on how to make consistent passive income from real estate investment,