Month: April 2021

What to study to work on the stock exchange?

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The work of a stock exchange broker often conveys the idea of ​​being surrounded by glamor. There are many films that portray stories of people who were going through serious financial problems and found ‘salvation’ operating in this type of environment: The Pursuit of Happiness and The Wolf of Wall Street are some of them.

However, when it comes to real life, the scenario is a little different. To work on the stock exchange, it is necessary to study carefully and dedicate yourself to preparation.

If you are interested or curious about the universe of the stock exchange and how to get started, continue with us. Today we are going to show you what to study to start working in this segment. Check out!

What a stock exchange professional does

Let’s start by clearing up doubts about the type of work that is done on the stock exchange. The famous profession of the stock exchange is that of a financial broker or investment agent. This

professional has the function of dealing with individuals or legal entities and guiding them in the best way in order to make an investment in the financial market, whether through direct treasury or other actions. How does he do it? Through your knowledge of the market.

Do you see the importance of studies? In this way, the broker can analyze which are the best actions to invest and helps his clients to be successful within the financial issue.

The most interesting thing is that the financial broker can also be sought by new companies in the financial market. In such cases he is responsible for helping to find good stock buyers.

This is how the investment agent receives money: each action taken by his clients generates a commission.

What does it take to become a good financial broker?

If you like finance and are attracted to this unexpected but exciting world, we recommend that you follow these steps:

Dedicate yourself to learning finance

This tip may seem silly, but it is very important for you to be successful in the area. In addition to being interested in the financial market, invest in a good course, such as accounting, economics or even administration. They will give you a good foundation to start developing, and they are great for your career.

Improve your English

This is a part that must also be fundamental in your studies:  English. You may even think that it is unnecessary or exaggerated, but, in fact, it will be something that you use a lot in your daily life.

Do you know why? The vast majority of stock exchange investors are foreigners and the most universal language used in these cases is English. So, if you dream of working in the stock market, don’t hesitate and start improving this language.

Study hard for the qualifying exam

To be accepted as a financial broker, you must pass a qualifying exam by the National Association of Brokers and Distributors of Securities, Foreign Exchange and Commodities.

This test is made up of questions related to the investment market, so, be careful in the preparation to get your space in this area.

Although brokers must have knowledge of finance and investments, they must also have very strong sales skills. A large part of the broker’s job is reaching out to potential clients.

Most brokers are required to meet certain sales quotas in order to remain employed, and they are responsible for bringing in new clients and selling stocks or other investment products.

Brokers typically prefer to employ brokers who have at least a bachelor’s degree. Preferably in the areas of economics. Today, many colleges offer degrees in economics. Therefore, looking for a course with an emphasis on finance can be a good preparation for a career as a broker.

Students in finance programs take courses that involve math and science, in addition to basic management courses such as economics, accounting, business law, marketing, administration, organizational behavior and information systems.

These courses can cover topics such as business capital management, investments and portfolio management, financial modeling, risk management, financial markets and institutions and corporate finance.

Well, that’s it, reader! We hope that now you know everything about the stock broker profession. To the next!

What is spread betting and how can you benefit from it?

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Spread betting or a spread bet is a leveraged financial derivative. Spread betting is ‘betting’ on the direction you think a market will go. The accuracy of your bet will determine whether you will win or lose once your position is closed.

When you open a spread betting position, you decide how much you want to bet on the price change of a financial security. Long positions generate profits when the market price rises, short positions in turn when the market price falls. The profit or loss of your position is calculated as follows:

Win or Loss = (£ bet per point x points moved) – charges to open and maintain position

Since spread bets are a leverage product, you only deposit a fraction of the total position value when you open it. The margin required depends on the underlying market and the size of the bet.

If you want to start with spread betting on cryptocurrency, the first step is to choose a spread betting broker that you like. The following article provides an extensive overview of some of the best spread betting brokers, as well as the information you need to make an informed decision.

Spread Betting Statement

Spread betting is a form of speculation that is simply about placing a bet on the price of a financial instrument. Your profit or loss will depend on whether the price moves in the direction you want.

In contrast to other forms of trading, the Spread Better never owns the underlying asset. You just speculate on whether the price will go up or down. Spread betting allows you to trade with leverage, which means that as a trader you can trade on margin. So you only need a small deposit to be able to open positions with larger amounts.

What is spread betting trading?

Spread betting involves speculating on the market fluctuations of an investment. Essentially, you are betting on whether the price of that asset (in this case, a cryptocurrency like Bitcoin) will go up or down against the bid and ask prices provided by a spread betting broker.

How does crypto betting work?

Once you’ve selected a spread betting broker, log into your account and choose the cryptocurrency you want to speculate with. From there, check the listed buying and selling prices and decide whether you want to bet on the rising or falling price of the cryptocurrency.

Spread betting vs. CFD trading

Spread betting and CFD trading are similar practices. There are a few differences, however. Let’s review how each approach works.

Spread betting. This is a form of derivatives trading. You can use leverage in both spread betting and CFD trading. When trading with leverage, you only need to deduct a fraction of the total value of the deal. In both spread betting and CFD trading, you can bet that the price of an asset will either go up or down. A big advantage of spread betting over CFD trading (if you are based in the UK, for example) is that spread betting in the UK is exempt from capital gains tax, while CFD trading is not.

CFD trading. A contract for difference (CFD) is an agreement between a buyer and a seller that obliges the buyer to pay the seller the difference between the current value of an asset (in this case a cryptocurrency) and its value at the time the contract was signed.

What should I watch out for with a spread betting service?

Find a Regulated Platform – The Financial Conduct Authority (FCA) oversees and regulates most reputable spread betting brokers in the UK. Whichever cryptocurrency spread betting platform you choose, make sure it is regulated by the FCA.

Variety of Payment Methods – Choose a spread betting platform that allows you to deposit and withdraw funds in the manner that best suits your needs. Bank transfers are a common method of funding spread betting accounts, but some platforms accept newer payment methods, such as cryptocurrency.

Appropriate deposit and withdrawal limits – Various spread betting platforms offer deposit and withdrawal limits. Choose a spread betting platform that is suitable for the volume of trade you want, whether it is small bets or trades of much greater value.

Good Reputation – User ratings are often the best way to gauge the reputation of a spread betting platform. Take the time to review these reviews so you know that the platform you choose ticks all the boxes, from customer service to design and usability.

Design and Ease of Use – Speaking of design and ease of use … UX is an important factor to consider when choosing a spread betting platform. The better the design of a platform, the smoother your user experience will be. Quick and easy to use are especially valuable factors when the moment of truth comes and you are ready to place a bet.

Variety of Cryptocurrencies – Whichever spread betting platform you choose, make sure it offers the variety you want. Most platforms have crypto options that go far beyond the capabilities of Bitcoin.

What does a Stock Exchange Broker do and how to act in the area?

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The profession of stock exchange broker, has become very well known mainly through several Hollywood films where people find financial salvation through this professional performance.

However, it is worth mentioning that the performance of a stock exchange broker is different from that seen on the screens and can be done within different financial market institutions.

What is it to be a stock exchange broker?

Stock exchange broker is a professional responsible, in general, for the sale of investments to clients.

It should be noted that he is always linked to a financial institution, receiving a commission for each product sold.

Among the sales possibilities, we usually have fixed or variable income products such as:

  • Direct Treasury;
  • Debentures;
  • actions; or
  • Futures contracts, which makes the person win with the high prices, but can lose money if the value falls.

Also known as an autonomous investment agent, this professional has a great deal of knowledge about the rules of the financial market, as well as the risk and return that each application has.

He is able to answer questions and advise clients on where to invest, gaining recognition in the financial market in our country.

Stock Exchange

In addition, the salary of this professional, a point that we will explain better later in this article, can be high, since he receives a commission for each client operation.

And, considering that he can have several types of clients with different salary ranges, his remuneration depends directly on the quality of his services.

What are the duties of the stock exchange broker?

Also called a financial broker, the financial broker has the function of dealing with companies and individuals, in order to guide them on the investment market, indicating the best stocks or bonds according to the client’s profile.

In the vast majority of cases he is hired by a securities broker, but he can also be sought out by new companies in the financial market. In the latter case, your role is to help the institution find good stock buyers.

In both cases, the study has a crucial role for the performance of this professional. After all, this way he is able to check the profile and the best investments more incisively so that the respective clients have good financial results.

What do you need to study to work in this profession?

A recurring doubt when it comes to this profession is how to be a stockbroker and for that it is necessary to have a good academic background.

Thus, there are three academic courses recommended for those who wish to work in this field, namely:

  • Management;
  • Accounting Sciences; and
  • Economy.

Through all of them it will be possible to reach a good basis for the professional to develop in this branch and achieve success.

It is worth remembering that there are still some points that those who want to work in this profession should pay attention. The first is dedication to learning about finance, a point that is crucial.

In addition, if you want to be a good stockbroker, it is crucial to have English at an advanced level, as it will be of great help to your work routine.

What certifications are recommended for this professional?

It is worth noting that it is only after approval in this certification for stockbroker that the professional can perform the function.

The test has a theme on the financial market, where the candidate needs to get at least 70% of the 80 questions of the test right to pass, totaling 56 correct answers.

How much does a professional in this field receive?

The average remuneration of a stockbroker who works around 42 hours a week is around R $ 4,118.34. However, in general, the remuneration of this professional ranges from R $ 3,758.76 to R $ 13,851.84.

These values ​​are taking into account all the professionals of the Stock Exchange throughout the world who work with regularized working papers.

It is worth remembering that the salary varies according to the services offered by the broker and the number of clients he has.

Another factor that influences remuneration is the state in which he works. In this case, São Paulo is one of the states with the highest salary for this professional.

Thus, the job market for the Stock Exchange broker is quite wide, containing several possibilities for places to work in addition to the Stock Exchange itself.

Strategies for safe cryptocurrency trading

mymegaportfolio.com Cryptocurrencies

Cryptocurrency trading can be very profitable and rewarding, but you can also lose a lot of money if you take unjustified risks. Of course, even if you don’t, the market is unpredictable and you can always end up in the red. If you want to minimize the risks of doing so, these six strategies show you how to stay safe when negotiating cryptography.

1. Don’t invest more than you can afford to lose

I believe you’ve heard of this rule before, but it never hurts to repeat it – don’t invest more than you can afford to lose. Crypto markets are volatile, and huge fluctuations in the price of a currency happen all the time. While it is highly unlikely that your coins will end at 0, it is entirely possible that your value will drop two, three or more times in a day or two. Sure, it can go up in a week or more, but don’t bet your life on it. To sleep well, do not invest more than money in your pocket – at least not in the beginning, when you are new to the crypto trade.

cryptocurrency trading

2. Diversify your portfolio

If you are trading only one or two currencies, you can lose a lot if / when those currencies fall. If these coin (s) win, you can also win big, but don’t count on it. To stay on the safe side, always trade multiple currencies, not just one or two. There is not an ideal number of currencies to trade, but at least five or ten is a good bet. In this way, even if one or two currencies fall, your total will still increase if the other currencies perform decent.

3. Don’t limit yourself to just one exchange

To spread the risk, in addition to trading multiple currencies, you must also plan for multiple exchanges. Again, there is not an ideal number, but if you divide your assets between at least three to five exchanges with perhaps three to five currencies in each exchange, this is a good diversification. In addition, you minimize the risk in the not-so-unlikely event that an exchange is hacked or disappears (along with your money), because if that happens, not all of your money will be lost.

4. Avoid risky trades, even if they appear profitable

Greed is a great motivator, and when you see a currency with good variations on the last day, week or month, you instinctively want to bet on it. However, this is less rational and more risky behavior. If there are large variations or drastic spikes in the price of a currency, it may be due to a bomb attack and dumping on that currency or simply a coincidence. As a result, it is very likely that the price of that currency will drop in the next few hours or days, along with your money. Always put your money in currencies with a more uniform trend – your profits may not be as high as when you trade risky currencies, but neither will your losses.

5. Play losers quickly to minimize losses

Even the best and most experienced traders cannot always predict the market and end up with currencies they would rather not have. In this case, a strategy is just to insure – that is, don’t sell the coins now, but wait for the price to rise again. In many cases, you don’t have to wait long – a few days or a week until the trend is reversed and the price is right (again).

However, in many other cases, the dive is over. This means not only that you have lost money in this transaction, but that the rest of your money is blocked and you cannot use it elsewhere. In such situations, the best you can do is to sell at a loss, to free up your money. Unfortunately, there is no recipe for when to insure and when to sell at a loss – you need to trust your intuition, but when you are a beginner, your intuition is not always wise.

6. Don’t lose your sanity with the crypto commerce

Finally, don’t let the crypto commerce take over your life! Don’t lose sleep (and sanity) with it, don’t spend fourteen hours a day in front of the computer and earn a living! Even if you make a lot of money as a crypto trader, it is hardly worth your health and social life – just know where to set limits.

I could give you more advanced tips on how to stay safe when negotiating cryptography, but as this is a beginner’s article, I’ll stop here. I have covered the basics and more, and I believe these tips will be useful for anyone who is starting out as a cryptocurrency or who is considering this option.

Forex trading – Fast & Effective Way to Get Rich

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Build up professional knowledge now & generate lucrative returns!

Do you want to get into forex trading in the future and trade successfully? Then you are spot on in our guide to modern forex trading. Forex (colloquially also abbreviated as FX) stands for Foreign Exchange and basically describes a process in which one currency is converted into another.

The forex market is the largest financial market in the world. At the same time, it is one of the most volatile markets. In forex trading, we are talking about a modern form of currency trading in which individual companies, central banks or individual participants convert currencies into another. Classic currency transactions are carried out for practical reasons. For example, if you drive to another EU country and exchange your euros for a foreign currency. In classic forex trading, the focus is on generating profits with these currency conversions!

Forex Trading: Market Spans Over $ 5 Billion A Day!

Modern currency trading, or so-called forex trading, relies on a market that has a daily trading volume of more than $ 5 billion. It is one of the largest financial markets in the world, where certain currencies are subject to extreme fluctuations in exchange rates. It is precisely these clear price fluctuations that guarantee high profits when trading.

The most important element of modern currency trading are the exchange rates with which one currency can be exchanged for another. You will always meet them in so-called pairs. For example EUR / USD. In this case the currency pair euro and US dollar.

The exchange rate of a currency can either be variable or thus change every day or, for example, be linked to another currency. For example, the riyal from Qatar has a fixed exchange rate that is always fixed. Find out more in our guide: What is Forex? And here also in the guide to CFDs!

Why Trade Forex with A Forex Broker?

Before we go straight into modern currency trading via forex trading, we must briefly differentiate why people trade forex today. Classic forex trades can be divided into two categories. On the one hand, every purchase of services or goods from abroad should be mentioned here. In this case, too, we must speak of a kind of forex trading. In the end, whenever an entrepreneur wants to buy goods in another currency, a so-called forex trade is opened.

The foreign exchange market is therefore absolutely essential for the international movement of goods. Now it is the case that these currency trades, which are carried out for purely practical reasons (purchase of goods and services abroad), only make up a small part of the entire foreign exchange market.

Forex trading is much more common for reasons of speculation. Investors who speculate on price changes do not want to receive the currency that is not affected. You want to profit from the movements in the foreign exchange market. An experienced investor carries out several of these trades a day by constantly reacting to new price fluctuations.

What is the fastest way to get into Forex trading?

So that you can get into this forex trading as easily as possible and generate lucrative returns with your forex trading in the future, we not only offer you over 8,000 CFDs, but also useful training opportunities. We make it easier for you to learn CFD trading or learn Forex trading with the help of our expert guides.

With our free CFD demo account or Forex demo account, there is the possibility of entering into forex trading without obligation and gaining initial experience with virtual credit. Our special forex trading software makes it much easier for you to get started. Because we rely on helpful expert forecasts that are displayed directly above or in your chat.

If you wish, you can simply take them over or add them yourself. We recommend that you register now and open the trading demo account. Then you can directly relate to each of the learning paragraphs presented here with practical examples. Of course, you can also do the training on the go with our CFD app / or forex app. The complete portfolio is also available in this one!

However, this also applies if you travel abroad, for example, in order to be able to invest in foreign markets there. 30% of all foreign exchange trading is now done by investors like you. They rely on forex trading with a well-known broker. It would be important for you that you only rely on providers who deserve the designation of the best day trading broker.

What does a good forex broker have to offer me for currency trading?

A good broker, with whom you can do a meaningful Forex trade, should of course not only offer you an excellent trading platform. Basically, the overall package has to be right. For example, if you are just starting out with CFDs, you need helpful information about day trading (what is day trading?). But you also have to deal with topics such as forex trading hours or forex calendars in order to be able to trade forex successfully in the future.

Don’t be put off now. The whole thing sounds like a lot of learning. But this is not the case. Because we aim to make trading and entry into trading as easy as possible for you. In other words, we rely on learning-by-doing when learning forex trading, for example. This means that with the virtual credit on the demo account you can feel all the tips and instructions about trading in our guides one-to-one. In this way, you can practically implement learning content directly and consolidate it.

Real Estate the Business That Can Make You a Millionaire IN 2021

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There are no shortcuts to making money or getting rich quickly from real estate, but you can build wealth slowly and steadily by investing wisely. You would know that there are many ways to get rich, but real estate is one of the best ways to build wealth. However, making money in real estate requires advice, systems, and proper determination.

Investing in real estate stands out as a proven approach to making money, but like any other business, it carries some risks. When done right, real estate can be a great resource for building wealth if you take the time to educate yourself on the process and the best ways to make big profits.

real estate

This article is written for beginners who want to make money in real estate.

BE AWARE OF RISKS

Is there one formula for success?

Many websites promise “the ultimate formula for success in the real estate business!” But does it really exist? Can everyone fulfill their dream of a million-dollar business in the same way? If this formula really existed, we would certainly all be very rich. But even if real estate is still considered one of the best investment opportunities today, there are still some risks here.

In addition, a certain amount of luck always plays a role when investing in real estate. The market is constantly changing and the time is not always right for such a system. Only those who are aware of the risks and make wise investment decisions at the right time can really benefit from the real estate business. With the tips of our city real estate agents and a bit of luck, your chances of big money are not bad at all.

RENT PROPERTIES

Make money by renting

One of the most common methods is to make a profit by renting out real estate. So you buy a property and then rent it out.

Housing is in great demand and the real estate market is booming. Many people are therefore looking for an apartment or a house to rent, which increases their chances of making money here.

The situation of the real estate market differs depending on the region, which is why it can be advantageous to keep an eye on the market and take a closer look at the conditions for landlords in your desired city.

FROM OLD TO NEW

Appreciate and benefit from real estate

Various television series show how it is done and make it look very simple: Buy a house or apartment for cheap money, renovate it and sell it on at an increased value. This method of making money has proven itself in the real estate industry, but is it really as simple as it seems at first glance?

When a rundown property is upgraded and modernized, a good deal of money can be made for selling property. In order to be successful, however, you should consider the following:

  • Get a relatively cheap property in a good location
  • Make a detailed plan of capital and time
  • Note the costs involved in real estate trading
  • Let the renovation effort be assessed

HIGH INTEREST FOR SMALL AMOUNTS

Equity crowdfunding

A new, but already fairly established method of investment is the so-called crowd investing. With the help of platforms, small amounts of money are made available by many different private investors, with which larger projects, such as the purchase of a property, can then be implemented. Even small amounts can be invested here. This method is so attractive because it guarantees a relatively broad profit margin for you as an investor due to the relatively high-interest rates.

INCREASE SUCCESS OPPORTUNITIES

Smart investments

Not every investment brings the same amount of profit, because many different factors are often important here. In addition, the real estate market is constantly developing, which is why there is always a certain basic risk when investing in real estate.

To increase your chances of success in real estate investment, here are some things to keep in mind:

  • The timing must be right
  • Always keep an eye on market developments
  • Buy real estate in thriving cities

THE RIGHT FUNDING

real estate

Tips for expensive investments

Even if you make wise decisions and choose the properties for investments wisely, buying a property can exceed your own funds. Because even if you get a loan from a bank for financing, you often have to raise a certain amount of equity, which usually does not include little money. The more equity you can raise, the cheaper the bank loan will usually be for you.

So if you are having difficulties financing a property, the following tips may be helpful for you:

  • Reduce your living expenses
  • Put any leftover money aside
  • Find a roommate or subtenant to pay off the mortgage

DANGER

Real estate trap

Although real estate is a profitable investment opportunity in many cases, there are some risks that you should be aware of. Overall, such a large investment should always be well thought out and planned so as not to let mistakes arise that could cause financial damage for you.

Our city real estate agents have listed some possible risks of a real estate investment here:

  • Tax changes affect your real estate business
  • An inadequate examination will lead you to dishonest tenants
  • When selling a house after a short time, additional costs and taxes are usually incurred
  • Due to private financial uncertainties, you will have to resell your property after a short period of time and only receive a fraction of the possible price
  • Undetected defects in the property lead to financial losses for you
  • Falling demand would gradually lead to falling property prices
  • An unfavorable location can keep prospects away
  • Rising interest rates could be a problem

If you become aware of the possible risks before investing in real estate and include them in your planning, you can promote the success of your investment. Some of the risks also result in opportunities for you as a property owner, which you can use for yourself if you are always informed about the latest developments and adapt your strategy accordingly.  To do this, it can be an advantage to seek help from an experienced real estate expert.

The worst type of Real estate investment

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When we talk about a real estate investment, we are necessarily referring to the generation of profitability, the same that implies the relationship between the benefits provided by a certain operation and the investment or effort that has been made, which is usually expressed in percentages.

Any experienced real estate investor knows that not all properties are the same to invest in. Thus, homes that could be perfect to have as a main residence may be unprofitable to rent and cause the owner to lose money. We present a list of things to avoid if you are thinking of buying a home as an investment.

1. Not all properties generate rental income

It is not advisable to invest in second homes or land if you are looking for a return through rental. Some bet on this type of property with the expectation of a rise in value, but there is an opportunity cost that must always be valued. Depositing that money in this type of investment means setting aside other income for having the money stopped, so before buying and waiting for the price to rise, you have to estimate how much money would have been earned if the money had been in the bank, in stocks and/or bonds

2. Any exploitation of real estate can generate losses

If you buy a property of high value, a house on the beach, or a home to rent for vacations you should do well the numbers and costs of said acquisition if you are looking to have a recurring income every year. Buying and operating a rental home generates various expenses that we may not compensate with the rent. Therefore, it is advisable to buy houses as an investment that are profitable from minute one and provide us with income quickly, that is, you have to buy houses at moderate prices and not necessarily in prime areas with overpricing

3. Co-invest with other investors

Properties owned by several people have become popular in several countries. They are a way to diversify a portfolio without having to deal with the hassle of owning and managing properties, but few people have made substantial money from them for the costs and commissions that come with

4. Act as a private promoter

Promoting and developing a real estate project on land is a very high-risk business, ranging from legal, construction, and price, among others. These investments are best made by people with high net worth and experience who may run the risk that they will never see their money again.

5. Condo-hotels, multi-property, and other types of strange investments

Buying a hotel room and leaving it to the manager to manage it or the dreaded timeshares are investments in which there is no ability to predict cash flows, rental income, or the future value of what we buy. In addition, when we want to divest they are difficult to resell

6. Invest abroad

You can buy houses in Canada, the United States, or London because they are powerful real estate markets. But you must always take into account currency risk. That is, if you buy a home in dollars, even if the home goes up, you can have losses if the dollar goes down. In addition, the different laws and risks make them investments in which you have to be very prudent.

Property never loses its value and it is easy to start investing with relatively small capital without the need for a bank loan. However, it is necessary to approach real estate agencies that offer you the greatest legal certainty and have experience in taking care of your investment.

These same real estate companies must have growth plans and information on the investments to be made in the area.

This option presents high profitability, especially due to the expansion of the city towards the north.

If you want support on this method of diversifying your portfolio, consider seeking specialized advice that offers you the best dividends on your investment. However, if your intention is to invest in the long term to achieve a monthly income in the form of rent, or if you intend to reform the house or the apartment to sell it at a higher price, be very careful with the numbers you make. Evaluate well the pros and cons of your investment in real estate before jumping into the pool.  

Real estate investing 101

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This guide is very important on your journey as a real estate investor. Without a clear understanding of the principles found in this section, you run a greater risk of failure. In fact, if you only remember the information presented in one chapter of this book, we hope this is it. Let this be your first step toward a successful future in real estate investing.

In this article, we will cover the following topics:

  • The importance of training in real estate investment.
  • Real estate and math concepts
  • Mentors, gurus and our investments.
  • Overcome fear
  • Paralysis by analysis
Real estate

Real estate investing is not a get-rich-quick way. Just like any solid construction needs a solid foundation, the same is true when it comes to your financial education – a solid foundation is the key to a lasting business.

This guide, while not exhaustive on all aspects of real estate investing, will help build that foundation. We created it to serve as a first step in your real estate education, and as an introduction to the possibilities that exist within real estate investing. Below you will find a list of sources that provide education in real estate investment; be sure to consider each one before taking each step, as what works for some people may not work for others.

Sources of training in real estate investment

Books: Books are essential to obtain a real estate training and can be the utmost extensive learning technique for investors. In each of the major bookstores you will find a complete section on economics and investing, and some books dedicated specifically to real estate investing. Chances are that if there is a way to earn money through real estate a book has been written about it. However, if reading books is not within your preferences, there are other ways.

Online / Blogs: Blogs can be an incredible source of information. There are fantastic blogs written on every topic you can think of. The blog is written by people who manage or make a living from their real estate investments and it is certainly worth reviewing and learning from them. In it our expert collaborators share their best advice and suggestions.

Coach or mentor: perhaps the most powerful way to obtain a good training in any field of study is through a mentor, a person with whom to share doubts and who guides us along the learning path, and the same happens with real estate investments. While there are dozens of professional coaches or mentors who charge outrageous amounts for their advice, there are also plenty of potential mentors who will charge you as little as a cup of coffee to chat about real estate investing. Learning from those who have reached your goals before you is one of the most important steps you can take in your financial education.

People generally enjoy sharing what they know, and the most seasoned real estate investors are no different. By introducing yourself to an investor they know in the same area of ​​operation, you will have the opportunity to learn from someone who knows your market and can ultimately become a future partner.

Now, why is it difficult to find a good real estate investment coach or mentor? Most self-proclaimed professionals are not in the business of real estate investing, but of coaching. That is, their income does not come from real estate investments but from the sales of their courses, and therefore they are not true experts in the field. And on the other hand, most real estate investors who are successful with their investments will not spend their time teaching or training others, unless they really enjoy this activity.

Real estate mathematics: basic concepts.

It is not necessary to learn to make derivatives or have a degree in mathematics to understand the necessary calculations applicable in real estate investing. In fact, most of the math you’ll need was seen in high school. This section will quickly tackle some of the basic concepts and mathematical formulas that you will need in your real estate investment career.

Income

An income is simply the amount of money you make from a property. This concept is perhaps the simplest of all: simply add the amount you receive from the rent collected and any additional charges that apply.

For example, you own a rental home. This property is rented for € 700, and the tenant also pays € 50 for the use of the garage.

Real estate

His total income was € 750.

Income may also include late fees, supplies (if you pay and pass them on to the tenant), laundry and cleaning (especially on short-term leases), and any other additional amounts you receive.

Expenses

Simplifying to the maximum we will say that expenses are simply the things that cost you money. For example, if the home mortgage loan is € 500 per month, the community fees of € 50 per month, the IBI (Real Estate Tax) and the insurance of € 25 each, then the total of your expenses It is € 600 per month. We’ll break down the mortgage payment into principal and interest later, but for now let’s keep things simple.

Cash Flow.

Cash flow is the amount of money we have left at the end of each month after all expenses have been paid. To determine the cash flow you simply have to subtract the payments made from the amounts collected. Continuing with the previous example:

€ 750 collected.

€ 600 paid.

The cash flow for this example property is € 150 per month. Let’s look at some more mathematical concept.

Profitability or return on investment.

The profitability or return on investment (also known as ROI – return on investment) is a way of measuring the money you receive in relation to the money initially invested.

For example, if you invested € 1,000 and have earned € 100 after one year, you will have obtained a return on investment of 10% per year. In the same way, if you invested in the purchase of a property € 40,000 and have obtained € 3,200 during the year, the return on your investment will be 8%.

The formula to calculate the return on your investment is as follows:

ROI = (V1 – V0) / (V0)

Where V1 is the value of your investment at the end of the period (for example at the end of the year) and V0 is the initial value invested.

These concepts present the foundations on which the analysis of real estate opportunities and the other indicators of real estate investment is based.

Paralysis by analysis. It’s easy to get stuck in so-called paralysis by analysis. An endless situation of research, planning, evaluation of opportunities, more research, opportunities … In other words, it is reading books without implementing what you have learned, reading blogs without participating in any way and meeting investors without interacting with them. Analysis paralysis is usually caused by a fear that something is wrong.

It’s easy to convince yourself that you don’t know as much as you should, which can prevent you from taking action. But remember, you don’t need to know all the real estate buying techniques and you don’t need to become an expert on all investment possibilities. Focus on one investment area, become an expert in it, and then move on to another technique or strategy. We will cover the different real estate investment niches in the next chapter of this guide.

If you feel like you’re not completely ready to go, you probably never will unless you take action. Even after acquiring a good number of properties, it is normal to be uncertain about any aspect of the investment. However, this position will force you to learn the answers to those questions and to muster the strength to keep going.

When you are afraid it is much easier to spend time and money buying another course or reading about new real estate investments than to dive in and take action. Educate yourself, create your investment plan and take action. As you do, your confidence will increase and you will soon begin to feel good about this activity. You will start to feel like a real estate investor!

Conclusion

Starting your real estate investment career with a solid foundation is vital to your success. There are many different ways to learn and grow as an investor, so choose a path and start learning.

The next chapter will help you continue your education by teaching your business basics, including real estate niches and common strategies. Once you learn this, you are ready to start planning your real estate investment business.

How to analyze a rental property – Deal or not?

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It is not enough to start buying real estate and think that only that will make you a successful investor. The big secret to being a successful investor is in planning, when defining your strategies for making investments and managing them. Here are some essential tips that will help you on your journey!

Make a consortium to invest in the type of property desired

When opting for a consortium to acquire your property, you will join a group of other consortium members who have the same purpose as yours: to buy a property. Thereafter, all members will pay monthly the installments, which, when combined, allow a pre-established number of participants to be drawn each month.

With plans with several options of values ​​and terms, it is possible to opt for a consortium model that really fits in your pocket. For this reason, the number of people choosing this model grows more and more, after all, having a consortium document in hand is an excellent resource for people who want to invest their money in a property, avoiding spending it with something that will give a good return.

In addition to the monthly draw, you can offer bids, including making use of your FGTS, to further increase the chances of being awarded. Remember that you can also use your consortium credit to renovate, build, and buy land, a beach house and much more. The truth is that the consortium will boost your purchasing capacity, allowing you to realize your dream that previously seemed impossible.

rental property

Understand the best moment of the real estate market in the region

It is important to understand the market in the region in which you want to invest in order to know the most appropriate moment. To do so, assess the potential of the site based on your purposes for investing, above all, in the medium and long term. Research security, growth and other developments that are located on site. Many people building is usually a good sign.

However, multiple units on sale for a long time can be a problem. A shopping center, for example, must be easily accessible to people. A residence needs to offer conditions to live in comfort and safety, with easy access to transportation, shops, markets and leisure and cultural options.

Have a financial reserve

Some expenses will come up and you have to be prepared. So, have a good financial reserve for these expenses. The cost of the Final Deed of Purchase and Sale (when the payment is made with own resources) and the ITBI (Tax on Transmission of Real Estate) and deed fee paid to the bank responsible for financing, for example, are your responsibility, in addition to , of course, of the notary expenses of the Property Registry.

After this stage of fees and bureaucracies, remember that there are still costs with the purchase of furniture, moving services, decorative objects and much more. Knowing all of this, do everything to save on day-to-day expenses to add a good reserve and have a good planning for each stage of the business, because, by doing this, you can be sure that you will not be caught off guard, having , thus, a rewarding and frustrating shopping experience.

Check the documentation of the desired property / land

There are situations where the owner of the property, or even someone else, tries to sell an asset that cannot be sold. In such cases, the business may be canceled by a judge, and the buyer is the one who is at a loss.

rental property

In order to avoid a huge problem like this, it is important to check the complete documentation of the property and require negative certificates. To have more security in the process, you can also go to the Real Estate Registry Office to request the registration of the property with a certificate of encumbrance.

Observe the location of the property

When someone intends to rent or buy a property, one of the first factors that person will analyze is the location. If the property is well located, the owner gets better values ​​for it. Therefore, when analyzing a property as an investment, the tip is to check if it is in an attractive region. Thus, you reduce the chances of making a bad deal.

Do not invest on impulse / excitement

An investor will take great risks of suffering losses by allowing his decision to be influenced by impulse, excitement and emotional aspects. Therefore, in order not to make mistakes, it is necessary to evaluate each business with enough time and in a technical and logical way. Evaluate all the positives and negatives of the property before deciding.

Remembering that this tip is valid for any negotiation, be it selling or buying. It is essential to make rational decisions, especially in periods of great economic fluctuations.

An investment in real estate is an extremely secure financial investment. In addition, it provides years of happiness, fun and countless memories that will last a lifetime. Do a good planning, research, understand the market demands and know how to prepare yourself by investing in the right opportunities that allow you to reach bigger and bigger flights.

For you to be successful on this journey, you need to be aware that it will take a lot of dedication and study to know how to invest in real estate. That way, you will have the confidence that your decisions will be right and that you will have chances to earn good gains.

So, do you also consider that the consortium is the best way to help build your personal assets by investing in real estate? So, get in touch with us, take all your doubts and conquer your financial tranquility!

A Comparison of Real Estate Investments vs Stocks

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Real estate

Real estate is something you can physically touch and feel – it is a tangible asset, and therefore, for many investors, it feels more real. For many decades, this investment has generated consistent wealth and long-term appreciation for millions of people. Depending on the location of your real estate, you can enjoy considerable returns on your investment.

There are two main types of real estate: commercial and residential. While there are other types (mobile home parks, shopping malls, apartment buildings, office buildings, storefronts, and single-family homes), they generally fall into those two categories. However, making money in real estate is not easy. Some people take the “return from home” route, looking for distressed properties, restoring them, and selling them for a profit at a higher market value. Others are looking for properties that can be rented to generate a steady income.

In general, a down payment of up to 20 percent of the purchase price can be made, with the remainder being financed through a mortgage.

Advantages of investing in real estate

There are many positive benefits to investing in real estate, including depreciation (amortization of the wear and tear of a commercial property), tax deductions, and finally, you can sell the property through what is known as a 1031 exchange, and you won’t have to pay. Capital gains taxes, as long as you invest the money in a similar type of property.

Disadvantages of investing in real estate

Like all investments, the real estate sector also has its drawbacks. Most importantly, the investment is illiquid. When you invest in a property, you generally cannot sell it right away. In many cases, you may need to hold the property for several years to realize its true earning potential. Plus, the closing cost can add up to thousands of dollars and include taxes, commissions, and fees.

Also, real estate prices tend to fluctuate. While long-term prices generally rise, there are times when prices can go down or remain stable. If you have borrowed too much against the property, you may have trouble making a payment on a property that is worth less money than the amount borrowed.

Finally, it is often difficult to diversify if investing in real estate. However, diversification is possible in real estate, as long as you are not concentrated in the same community and have a variety of different types of property. That said, there is an additional way that you can diversify into real estate through real estate investment trusts (reits), under which you can buy a trust that is invested in a large portfolio of real estate and will offer you a dividend as a shareholder. However, in general, stocks offer more diversification because you can own many different industries and areas throughout the economy.

A good compromise when deciding between investing in the stock market and investing in real estate can be owning a REIT, which combines some of the benefits of stocks with some of the benefits of real estate.

Stocks

Using the s & p 500 as a benchmark to illustrate the performance of stocks, the stock market has had an average annual rate of return of 10.31 percent between 1970 and 2016. It is important to use this figure as a benchmark only. For the performance of US stocks as there are several other major indices globally.

With a share, you receive ownership of a company. When times are good, you will benefit. In challenging economic times, you may see a decrease in funds as company profits plummet. Taking a long-term approach and being balanced in many areas can help build your net worth at a much higher rate, compared to real estate.

As with real estate, equity financing allows you to use margin as leverage to increase the total number of shares you own. The downside is that if the stock’s position falls, you could have what’s known as a margin call. This is where the equity, relative to the amount borrowed, has fallen below a certain level and money must be added to your account for that amount to rise again. If you don’t, the brokerage company can sell the shares to get back the amount borrowed.

Real estate

The advantage of stocks

Stocks are very liquid, fast and easy to sell. They are also flexible and can even be reassigned to a retirement account, tax-free, until you start withdrawing money. Additionally, many stocks can do considerably better than real estate in one year. Due to the volatility of some stocks, it is not unusual to see companies that have an average growth of 20 percent or even 50 percent in one year.

The downsides of stocks

Stocks can be very volatile, especially when the economy or business is facing challenges. Furthermore, stocks are often emotional investments, and your decisions within the market can often be irrational. Ultimately, bankruptcy is always in the back of the active investor’s mind, as it should be, as your investment will dissolve in this case.