Being Smart Will Not Make You Rich?

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$1 Million Is not What It Used To Be and Being Smart Will not Make You Rich...

Above are two headlines that I recently came across and both should inspire hope.

Here is why. Take a peak below at what the article said and then compare that to what you have in your possession.

Not that long ago, the word millionaire conjured up visions of chauffeured limousines and extravagant shopping trips and elegant yachts. These days, a millionaire is more likely to be the guy or gal next door who saved carefully - and perhaps benefited from the sharp run-up in housing prices - but still worries about covering the exploding costs of educations, caring for aging parents and funding their own retirements. (emphasis added by me)

I call this kind of millionaire a 'Static' millionaire. Now do not get me wrong, 'Kudos' to them on accumulating a million dollars, but it is interesting that the millionaire described here 'saved' their way (which takes a LONG time) Plus the 'luck' of a run-up on their house value, but they STILL WORRY about the expenses on the horizon.

They worry because they did not create their wealth. In other words the wealth was created mostly by forces outside of themselves and that is what creates the fear and worry. No control. No ability to accelerate if needed. Simply at the mercy of external forces such as interest and appreciation.

BUT, if they had done what you CAN do and actually created wealth via real estate investments, PLUS the benefits of proper savings and if a house happens to appreciate then it is simply 'icing on the cake' and the expenses that cause the 'Static' millionaire to worry really have zero impact on the 'Dynamic' millionaire because the 'Dynamic' Millionaire will simply go out and create more wealth. "Presto" almost magically wealth appears from thin air! And that is exactly what you can and will do via real estate investing.

Another recent study has determined that 'Being Smart Will Not Make You Rich'. So if you are smart or if you are just like me -there is NO EXCUSES for not taking off with what you have in your hands. No need to wait for all the lights to be green before you get going, you just have to get going and there is no better time than today! You DO have the tools to be a 'Dynamic' Millionaire! Do not wait for perfection. Just get rolling. Success really is cooked in a messy kitchen! So go 'make a mess of money'!

David is an author and speaker who teaches real estate investing among other residual income streams. He is currently working on his latest projects revolving around products he recently purchased. One of his purchases are his 20 inch LCD TVs. To discover more go to http://www.20inchlcdtvs.org today.

Article Source: http://EzineArticles.com/?expert=David_T._Johnson

Emerging Real Estate Markets

Investing in emerging real estate markets has always been a major part of the business model of big national and global real estate funds. Analysts at these firms would study market data to understand exactly which part of the business cycle different markets are in and where the opportunities lie. After targeting these markets these funds then would go and analyze the specific investments, be it cash flow properties like apartment, office and retail or more speculative land deals.

Small investors however have been influenced ( and many would argue incorrectly influenced) by what they think is a path of least resistance and possibly the Carleton Sheet late night infomercials that teach you must invest within 10 miles of where you live. Although I admit good opportunities can be found locally, but what if your local market is in in the tank and recovery is still a long way off? Do you still only invest locally?

When major corporate investors such as REITs (real estate investment trusts) invest their money, they don’t just buy real estate in one city. The directors and managers of the REIT will look around the country and around the globe ( more on that later) for the very best opportunities. When they find the best markets they spread their money across multiple markets. 

We are starting to see a trend though where individual investors are learning a couple of things from the REITs 1) Small investors are being open minded ( and proactive) about NOT limiting themselves to investing only locally. This one is partially by necessity because their local market may be in a downward slide with way to much inventory. 2) Individual investors are also seeing what the REIT’s have always known and that is diversity of investment in multiple markets. Placing your bet across multiple markets can be a very good thing ( assuming you are in the right markets) and helps shield you against down turns. In other words you don’t want your all your real estate investment eggs in one (local) real estate basket. 

Their are many factors that go into analyzing and finding emerging real estate markets and micro markets and in future posts we will go into more detail on those criteria and leading indicators. In the U.S. based on the news one might think that these markets don’t exist but they are out there and we hope to continue to identify both the broader markets as well as the emerging micro markets. One such market for small investors that has pockets of very strong fundamentals is the Gulf Coast where there are still shortages of certain housing types, but even in a known emerging market you need to be careful and have a good team around you.

Another trend that we are seeing due to the current U.S. subprime mortgage crisis, coupled with the ongoing liquidity and credit crisis has resulted in U.S. investors looking to gain exposure to other emerging real estatemarkets not just at home but around the world. 

Cross-border property investment by U.S.-based buyers totaled over $70 billion in 2007 in over 50 countries. Much of the investment is by multinational corporations, real estate funds and REIT’s but we are also seeing more and more individual investors buying in their favorite international vacation spots where costs of living and their retirement dollar gets stretched further than at home. We will be examining some of these international emerging markets in future posts and newsletters. 

Robert Stec 

The Case For High Net Worth Private Money Investors

Your best source of private money is from high net worth investors. This shouldn't take much convincing. Unfortunately, far too many real estate investors concentrate their private money raising efforts on non-accredited investors.

There is nothing wrong with raising money from non-accredited investors. I have had private investors in both accredited and non-accredited status. If someone wants to invest $50,000 of their $150,000 net worth with you, no problem. Just make sure you make the proper disclosures and any filings you may need to do with your state securities regulator. It can (and should) be done when the situation is right. This could be all the time for you or none of the time.

Accredited investors, as per SEC definition, are those with a net worth in excess of $1,000,000 (excluding primary residence), joint household income of more than $300,000 ($200,000 for individual) in the most recent two years. How do you find out if someone is accredited or not? By having each prospective investor complete an Investor Questionnaire prior to receiving the intimate details of your opportunity (you can accomplish this via mail, fax or in person - it's pretty easy and can put investors at ease).

You see, marketing your real estate investment opportunity to people that are ready, willing and able to invest with you is very critical to your success. With accredited investors, you can more easily offer your securities under exemptions from registration (far less paperwork and hassle with SEC filings). This is a BIG plus when you are raising money.

Another benefit of raising capital with high net worth investors is that there is less likelihood of redemption. Redemptions are when investors want to take their money out. Imagine having $1,500,000 in private money invested in a commercial project and one of the investors wants to pull $200,000 because their 401(k) took a hit. Not good. You then have to find somebody to replace the investors position, which at the very least may disrupt the project.

High net worth investors also better fit the "able" aspect of investors being ready, willing and able to invest money in order for you to invest time and effort bringing them in. This is very important because you want to get the investors money into play quickly after they express interest in moving ahead. If they have to juggle funds around between accounts or combine funds and scrape the money together, you might spend valuable time coordinating things and the investor may get cold feet.

Again, there is nothing wrong with having non-accredited investors. I am making a stronger case for you to work toward having accredited/high net worth investors that make up the bulk of your investor base. Your business will be all the more profitable in the long term as a result.

Article Source: http://EzineArticles.com/?expert=Adam_J_Davis