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Red shoes from above on the white arrows,dilemmas concept buy or rent
Certainly, investing in real estate is a lucrative business. However, it is challenging to be an expert in every aspect of this moneymaking tactic. Thus, you need to concentrate on one thing in order to be successful and become potentially good at it.

The investment question of whether fixing and flipping or buying and holding properties is a smart real estate decision does not have one straightforward answer. Instead, the choice to opt one plan over another has to be an explicitly crystal-clear strategic plan, taking your overall investment and financial goals as well as present real-estate market opportunities into consideration.

Fundamentals of Fixing and Flipping

Typically, fixing and flipping can serve as a potential source of earning for real estate investments. In fact, many utilize earnings from their fix and flips to help them fund their long-term rental purchases. Generally, a fix and flip is a house that a real-estate investor purchases, fixes up, and sells out immediately to realize a profit. Here, you need to know that productive fix and flip houses are relatively difficult to find. In addition, it is also challenging to make money using them by any means.

Finding a house cheap enough to make profits is typically the biggest challenge when opting to flip a property. With the gradual improvement in our market, owner-occupied purchasers are facing trouble in finding great productive deals. In fact, it is even more challenging for anyone to find a house cheap enough to flip. Besides repair costs you bear when purchasing a flip, you also have to bear carrying, selling and opportunity costs.

Financing Expenses of a Fix and Flip in Comparison to a Rental Property

Short-term financing is expensive when you do not have enough money to purchase a fix and flip. Even so, average creditors may charge at least 15% interest with 4% upfront when you buy a home. In comparison to fix and flips, long-term financing on rental properties is much cheaper and easier to obtain. In addition, banks and financial institutions prefer long-term debts, as they will be getting interest benefits for a considerable time period. On the other hand, they will not be receiving interest payments on fix and flips for as long as a long-term rental, thus, they charge home buyers more fees and interest.

Repair Requirements: Fix and Flip vs Rental Property

Fix and flips require top-notch repair work to get great profits and, subsequently, the buyer bears significant costs. On the other hand, renters are often less picky about properties, as they are neither personally tied down to the apartment nor worried about the roof, furnace, structure, and plumbing – since they are not responsible for any disorder and breakdown.

Investors on a flip have to pay heavily for a home they will own for a long-term period. They will get an expert inspection in order to make sure each and every thing on the property works properly and was well repaired. Although we are not suggesting a homeowner skimp on repairs, certain things may require a repair right away on rental properties that have to be repaired imperatively on a flip. There are several other costs in relation to a fix and flip versus a rental that an individual has to consider when making real estate investments with a goal to make profits.

Instant Profit of a Fix and Flip vs Long-Term Earnings from Rental Properties

Long-term rentals provide you with a monthly cash flow as long as you own and rent out the house. One can also refinance the house upon owning it a year and subsequently take money out. The longer you own a property, the more favorable chances you have of the house appreciating in value and decreasing in mortgage. In addition, you also have the potential opportunities for the rents to increase considerably. If you are able to put off the immediate gratification of the money you make from a fix and flip, you are going to make much more profit in the long run through rental properties.

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About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Sears Store Door Entrance in Southcentre Shopping Mall in South Calgary with Liquidation Sale Deals due to upcoming Corporate Closure and going out of Business
The death of brick and mortar retail is exaggerated. Retail isn’t dying, it’s just changing!

A Retail Round Up

Over the past decade, there’s no denying the fact that customers’ tastes, demands, and purchasing patterns have changed quite drastically, compelling the retail industry to change with them. The change in the industry’s dynamics is largely perceived as a ‘retail apocalypses’, leaving thousands of brick and mortar retail stores to close in its wake. However, this is not the only reason. Ever-evolving preferences and inclinations, lack of wisdom to run a retail establishment in the competitive environment, large upfront investment botches, and increased trust in e-commerce retail stores like Amazon, eBay, Alibaba and other similar online retail stores are a few of the major reasons causing retail establishments to shutdown at a massive rate.

The surge in the popularity of e-commerce retail stores bears testimony to the fact that online shopping is growing among millennials. They love to buy their favorite products online and get them delivered to their doorsteps with easy payment schedules. They have actually found an easy way out to save more time for themselves without having much to worry about. This is certainly one of the reasons causing the death of brick and mortar retail stores. However, when we look at the bigger picture, we are surprised to find that online shopping equates to only 8.1% of the total retail sales in 2017.

What Do Statistics Say About The Retail Meltdown?

According to the survey results compiled and revealed by one of the leading international retail agencies, worldwide retail sales accounted for $23.45 trillion in 2017, which is expected to grow and reach a whopping $27.73 trillion mark by 2020. Undoubtedly, brick and mortar retail is perhaps never going to die as long as this planet Earth exists and people are alive. There are times when a business or an industry has favorable grounds to thrive and vice versa. The brick and mortar retail industry may have seen a retail meltdown for the past few years, but that doesn’t mean that the industry has no chance to survive hard times and fight back to retain its lost image.

Why Retail Store Chains Are Facing The Most Closures

The predominant reason that is causing the death of brick and mortar retail stores is large upfront investment failures. Retailers, when they see profit margins and achieve success in any specific locality, get excited about opening more of their retail stores in different areas. This excitement often leads them to set up more stores and spend carelessly on improving their in-house customer experience and facilities. The great sums of money spent on creating an ideal shopping environment are largely misunderstood by most of retailers. Often, they spend impractically and unreasonably on creating an extravagant shopping environment, which increases their investment and costs. This, besides expanding their operations, causes the death of a brick and mortar retail store.

What Should Be Done To Prevent The Closure?

In order to maximize cost reduction, you must first cut down your large upfront investment and allocate adequate resources to get things moving seamlessly in the right direction. Secondly, you must provide an exquisite shopping experience with a unique in-store service. Also, you must a hire a professional accountant for bookkeeping services who will provide you with a clear picture of your finances, tax details, bank loans, etc. for better financial decisions. Moreover, you must reevaluate your retail objectives and retail establishment’s strategic mission, especially your supply chain channels. Last, but not least, you must do a root-cause analysis of each problem and come up with a relevant strategy to recover from the crises situation. By taking all of these effective measures, you can expect to prevent the death of your brick and mortar retail store.

Brick And Mortar Retail Is Still King!

The death of brick and mortar retail is nearly impossible. Although thousands of brick and mortar retail stores may be closing their doors due to bankruptcy or lack of creative wisdom to stay competitive, online retail stores and their total earnings can never come near to the overall earnings of brick and mortar retail stores around the globe–at least any time soon. This makes it safe to say that brick and mortar retail is still king (or queen!) and all of the stories associated with the death of brick and mortar retail are baseless.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

the rest of the people in Sweden are in Stockholm, center city, evening, green grass in the Park, picnic on the lawn
Certainly, investing in a business renders profit when it is being executed efficiently with effective performance. Likewise, investing in sports and recreational facilities builds stronger, happier, safer, and healthier communities across the globe.

In fact, parks, public spaces, sports institutions and recreational facilities are an integral element of the physical atmosphere, human environment, and culture of any region. They also render a potential positive financial impact; however, it is usually overlooked.

There is a long list of recreational and outdoor facilities, including cycling and walkways, camping and caravanning, motoring and transport, boating and fishing, and special programs for kids, teens and young individuals.

Property Values

Recreational facilities potentially boost the property prices of surrounding houses, apartments and offices that produce considerably more property taxes for the town or city government. Although outcomes are different, studies demonstrate that a property’s proximity to parks enhances its price value by up to twenty-two percent. Also, the inherent value of a park largely depends on the quality and size of a park. Beautiful parks with additional recreational facilities, such as tennis courts, pools, fishing, or cultural activities can generate higher premiums.

Health

Green spaces and sports facilities help in encouraging active lifestyles as well as reducing stress thereby promoting a healthy environment. Consequently, recreational facilities help reduce healthcare costs. Also, exposure to green environments helps increase focus, reduce ADHD/ADD, lower blood pressure, improve sleep and mood, boost the immune system, and expedite medical recovery. Even if exposure to green spaces and parks reduces anxiety and stress by only five percent (studies indicate it as a low number), the production cost savings can be ensured by at least $2.73 billion each year.

In fact, a 2001 case study on citizens of a Chicago housing project showed the positive impacts of nature, greenery, and recreational activities on even chronic, physical, and mental issues ranging from a stressful life to obesity.

Environment

Recreational facilities, especially parks, and green spaces reduce environmental pollution as well as support storm-water management thus saving the environment as well as money.

Tourism

People are interested in visiting areas where there are plenty of recreational facilities. Thus, the more that a city or town has worth visiting, the more tourists’ favorite place it would be. The estimated total value of tourism based on green parks in the hundred largest cities of America is about $494.28 million, which is a massive amount.

Social Capital

The arrival of visitors to parks and the collaboration of individuals of diverse backgrounds and varying mentalities with other differences in these places create feelings of community as well as social capital.

At the most fundamental level, recreational volunteer organizations, green environmentalists, and park activities provide community building, social grooming and other valuable hours of services that, in return, render a sense of self-responsibility for community well being and human development.

Government Initiatives

Considering all of the above advantages of recreational facilities and many others we didn’t mention, municipal authorities and government institutions of different cities and states take necessary steps in supporting the infrastructure and development of a diverse and sustainable green, sport and recreational system. This is because, as discussed earlier, such a system develops talent and contributes to the health and well being of people, communities, and the environment. Consequently, well-educated nations strongly advocate the incredible benefits of sports and recreational facilities, not just regarding physical advantages, but also regarding emotional, mental, environmental and communal benefits.

Conclusion

Investing in recreational facilities is as important for a city, state, or nation as it is important for a business to do bookkeeping and maintain its financial records. In fact, regions with a scarcity of necessary human facilities, sports systems, and educational institutes are increasingly abandoned. Also, such areas trigger the challenge of survival as the unhygienic environment can cause significant health, social and communal issues, considerably impacting the tourism, communities, diversification, environment and many other aspects of a state or nation negatively. Consequently, it can be said that investing in recreational facilities is a critical requirement for all regions.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Camper camping at RV park in autumn in North Carolina Blue Ridge Mountains outside of Asheville.

Investing in a Camping Site and Recreational Property

If you already own a decent home, you may be looking for other real estate properties to invest in. One of the most suitable investments is owning a recreational property or camping ground. Maintaining such properties for a long period of time can ultimately become a solid investment.

Despite being a safe and lucrative investment, campground and recreational facilities have their own challenges. One of the major challenges is that the income from the properties vary and the returns are quite unpredictable. Other than that, investment in such properties is relatively safer compared to other real estate investments.

Why Should You Invest in a Camping Site?

Investing in a camping site will reap several benefits in the long run. The owner of a camping site can charge for housing or vehicle parking months in advance. However, a major benefit is that an owner can ask tenants to leave within days’ notice if they don’t abide by the rules and regulations of the property.

Difference Between Tenant Types

Tenants of camping sites or recreational properties are different from those living in an apartment building. In a recreational property, such as a camping ground, the tenants are renting the property for reasons such as wanting to escape winter or spending the holiday with family.

As the tenants are using the property temporarily, perhaps for a holiday, they are less likely to cause problems like a delay in rent. Their moods are generally more pleasant than apartment tenants. Technically, tenants at a camping site are actually visitors of the property.

No Lease Payments: A Disadvantage

The one thing that makes such an investment unpredictable is that camping grounds do not require tenants to pay a lease on the property. This makes the investment and returns variable to the seasonal traffic of tourists. With the absence of a lease payment, monthly income will depend on how many tourists stay at your property. As the income is seasonal, it’s important to budget well when considering real estate properties for investment.

Seasonal Income

Many recreational properties have more of an influx of visitors in summers, hence, the income is seasonal. Since the income is seasonal, taxes must regularly be paid regardless of the income. Sometimes the influx of visitors is slow and the income is not sufficient to cover the expenses of the property.

What to Consider when Buying a recreational Property

When buying a camping ground or other recreational property, you need to check the actual income from past years. Use the past data to determine future cash inflows. If they are positive in the long term, it would be a good choice to buy the property. Look for steady yearly income with good returns on investments in the first few years when you are looking to potentially invest.

Tax Returns

Consider the tax returns to get an idea of the entire operational side of the business. The income and expenditure records will help identify and estimate the income before any service debts. Select a suitable property and invest in it by keeping what you want for the return in mind. To get a clear picture of the investment, it’s important to subtract the profit from the total net service debt. The remaining figure will be the amount payable on the loans you take for investing in a property.

How Much Can You Pay for the Property?

Determining the amount you can pay for a camping ground or recreational property depends on the amount of down payment you make. Ensure that you know the other costs associated with the property including taxes and insurance premiums, if any. Include these costs when calculating the existing capital you already have to purchase the property.

For those interested in investing in a recreational property, it’s essential to look for properties that are priced similarly to other nearby locations. Depending on business and management skills, a parking space worth $10,000 per spot can be quiet profitable.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Wall Street


A private fund investment is a financial investments company in which,

  • There are less than 100 investors
  • Its participating investors have considerable funds capitalized elsewhere.

Such funds are exempted from laws and regulations of federal securities and are incorporated in the tag of “hedge funds”.

How Do Private Equity Investors Earn Money?

Increase money: from Limited Partners (LPs) i.e. insurance, companies, pension funds, retirement funds, endowments, and wealthy folks

Source, diligence, and close deals to gain companies

Expand procedures, cut expenses, and squeeze administration of their portfolio corporations

Trade portfolio corporations at a yield

Current financial statistics indicate that proficient investors like private equity individuals are tapping cash to work for private mid-market corporations.  There are many hurdles which both investors and businessmen have to cross.

Here are a few strategies to attract owners of a private equity fund:

Review your Financials

Review your financial statistics because the prospective buyer will check your financial statements in detail and an audit free of any kind of gaps will attract the investors. The buyer will perceive that you are a serious and professional individual who keenly pays attention to little details. Accurate bookkeeping of your transactions gives the buyer a signal of your efficiency and accuracy while negotiating.

Generate a Strong Team

A strong team will be needed because neither can you do all work alone nor can you always supervise.

Private equity investors always in search of such teams whenever they recapitalize a company.

Expand Your Client Base

Buyer concentration is the major hit for sophisticated financiers. Only 10 to 15 % of profit should be gained from one customer alone. It is risky when companies gain 40% to 50% of their profits from one to two clients. Bookkeeping of revenues must be kept to know the percentage of revenue that comes from each customer.

Make an Exit Strategy

“We like to see owners start meeting with their advisors two to three years before a planned transition. That way the owner can act to fill the gaps so his business can become an A or even an A+ company.” said by Fred Wainwright-certified exit planner of Ledyard Bank New Hampshire.  So an exit strategy should be designed after a detailed discussion with your financial planner, accountant, lawyer and investment banker.

Fix Your Agreements

Keep your contracts fixed because the new customers will not be easy to find.  It will cost more to try to obtain new customers rather than keep your current ones.  

Build the Product Pipeline

Attract your investors by beginning a new business in new markets so that they invest in your future plans. Investors will be interested in the size of market and source of shares. If they find satisfactory answers, they will definitely invest in your potential company.

Acquire a Realistic Assessment

Keep an accurate record of transactions through bookkeeping and also get a formal evaluation from a certified appraiser to have an accurate valuation of your business. This is necessary information required while negotiating with a private fund investor.

Create an Acquisition

To grow fast and to exit more attractively, buy another company but this is not an easy deal. “There is certainly no playbook, if you’ve never made an acquisition before and you don’t have people inside the company to guide you, you’ve got to find all the help you can get.” ”says Glenn Fishler, President and CEO of Environmental and Occupational Risk Management, Inc.

Organize your Records Accurately

Investors are attracted by well-organized and accurately recorded information. Keep the record of customers, corporate structure, stockholders, bookkeeping of financial status, employees etc.

Private fund investors will be more likely to make the deal if your records are organized.

Protection of Intellectual Property

Value of intellectual property has increased quite a bit. The following are significant steps that need to be taken to expand revenue of your business: prepare the catalog of training steps, documentation of software, copyright of your website and trademark of your goods.    

Conclusion

By following the above mentioned strategies, you can excel and easily appeal private fund investors for your old and new business endeavors.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Where to Invest? handwriting

Investment for Beginners

Today, the investment trick is to not only make money but also know how to make money from your savings. Currently, the best option for those on a salary is to save a part of their income for an investment. It is worthwhile to invest that money in order to enjoy better profits apart from the salary. Use the savings wisely, saving up a little from your monthly income can go a long way. Keeping the investment with a bank is not a good choice if you’re wanting to add more. Instead, invest that money into a low risk, low return project initially.  

Before considering an investment, common questions arise. What does it mean to invest your money? What is an investment? Quite simply, an investment is a transfer of capital or a certain amount of money to a project and a stock that is not channeled to generate income of the same amount. Current income is of two types. Income return is income from returns as an investment. For example, rent and interest. The second income type is capital appreciation, increasing investment value as a result of increased demand for a certain asset.

How to Start Investing Right

Initially, everyone that invests their savings wants a profit on their investment as soon as possible. Especially when it comes to beginner investors, it is imperative to take into account that smart investments take a lot of trial and error, amassing experience, learning lessons, and generally great patience. A long-term, worthwhile investment ensures that the money will be worth much more in the future.

When interested in beginning to invest, there are several steps to consider before making an investment decision.

Sufficient Savings

Check whether the amount of money kept aside is enough for future investment spending. Moreover, to carry out day to day activities, you must have your expenses covered. A regular job with a steady paycheck will allow you to pay for any expenses incurred on a regular basis.

Choose the Right Investment

Choosing an investment path is an essential decision for first time investors. For beginners, there are three main types of investments. We recommend that you choose one type of investment (at least for starters) where you will focus most of your time and effort. You can choose between investing in real estate, securities or investing in a business.

Choose the type of investment that you prefer and know what is best for you in terms of profits, market risk, and knowledge of the investment type. A wise choice is to select a business that involves low risk with a reasonable profit.

Learn About the Market You Want to Invest in

Once you have chosen your investment field, it’s time to start learning about the business! Knowledge is power. The more you know, the stronger you will be in the field you choose and the better you will be able to work that investment. Today, so much information is on the internet and you can learn a lot about the investment field you have chosen, read powerful information, and even get some great tips. The most preferred method for beginners is to study a course in the field and learn to be a smart investor.

Types of Investment: Where to Start Investing

At the initial stages of investing, it is not always clear where to start the process and how to actually get into the first investment. Check whether a particular investment field seems feasible for your first initial step. Following are some of the common fields that are suitable for an initial investor.

Real Estate Investments

Investing in real estate is one of the most common types of investments for beginners. This area is relatively stable and the income received in real estate is continuous. You can receive payments each month by renting a property. The real estate market is very dynamic and subject to many rapid changes. When there is an interest in real estate, proceeding with caution before investing on a property is a good idea. Before investing in real estate, make sure that you have sufficient knowledge and expert help.

Capital Market Investments

Investing in the capital market is worthwhile for longer periods of time, but less effective in the short term. People often find themselves in a situation where they need to watch the investment precisely when the portfolio is at a low level. If someone lacks the necessary knowledge in the capital market, they can conduct a safe investment in a portfolio. Today, many companies provide assistance for investors looking for a safe portfolio to invest in.

Investments in Business

One of the most effective solutions for beginning investors is using your savings as an investment into a business. Many people invest in a business because they believe that that business has a chance to flourish and grow in the future. Ideally, the business will generate a large income and then that income would be distributed among the investors. Note that in passive investment, a business has its own set of risks.  All responsibility and control over the success of your investment is in the hands of others. You should check all of the business details, including it’s operations, with those who are getting into the investment.

Choose the Right Investment Channel

Investors who are beginning to invest in different businesses and capital must consider that an investment is not an easy decision to make. Every investment has it’s own risks and a different range of profits. Investing requires intensive knowledge and a great deal of time learning the field of investment you have chosen. Choose the right investment for you and check that you have the necessary tools for an investment to be fruitful.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.