The following articles were authored by UnitedCash

A Breakdown of the Upstart Cost of Becoming a Successful Real Estate Investor

Robert Tweed

Real estate can be a truly lucrative and beneficial investment. It has the ability to produce monthly cash flow while increasing in value. Your tenants can meanwhile fund your mortgage reduction efforts for further equity accumulation. These financial benefits are combined with the tax benefits and the ability to leverage your purchase with financing. The reality is that you will be hard-pressed to find another investment vehicle that is as beneficial as real estate is. However, while you can leverage most of your purchase with a mortgage, you will still need a substantial amount of capital to make the investment. These are the upstart costs associated with investing in real estate for the first time.

Educational Expenses

Real estate investing is not something that you want to venture into without some background knowledge. You must have a clear understanding of selecting the right property, setting up financing that generates positive cash flow, taxation implications, tenant and management issues and more. You can glean some information by reading several reputable real estates investing books. However, you may also benefit by taking formal classes on the top of real estate, finance and more. Robert Tweed offers scholarships for some finance-related courses. The cost of the books and classes should be taken into account as you begin examining the total upstart cost for your future investment activities. Remember that you also may need to factor in the time necessary to improve your knowledge base.

A Down Payment

After you have enhanced your education in the area of real estate investing, you can begin searching for an excellent property to purchase. Hiring a real estate agent is a smart idea, and thankfully, the services of a real estate agent are typically paid for by the seller rather than by the buyer. Real estate investment loan programs through Robert Tweed and other sources have varying down payment requirements. For example, if you are buying a single-family home as an investment, you may qualify for a loan of 75 to 80 percent loan-to-value in many cases. Some residential investor loans have an even higher loan-to-value. Investing in a commercial retail strip center, however, may require you to put as much as 25 to 30 percent down. The sales price and available financing for the property type that you are looking at will affect your down payment amount. Your financing options may also be limited by your credit score, net worth and various other factors.

Closing Costs

In addition to having enough capital available to pay the down payment on your real estate investment purchase, you also must pay the closing costs. A general rule is to estimate between three and four percent of the sales price as closing costs. The seller may concede to paying some of your closing costs, but you need to ensure that this is permissible by your lender. The closing costs include title insurance, legal fees, prepaid taxes and insurance, an appraisal, a property inspection and more. Remember that many lenders require you to have at least three to six months of mortgage payments available in liquid cash after the down payment and closing costs are taken into account. Therefore, this lender-required reserve should also be included in your financial calculations. Your loan request may not be approved if this financial requirement is not met and properly documented.

A Reserve Fund

While the lender typically requires you to document the availability of reserve funds after closing costs and the down payment are taken into account, it is important to consider how much money you prefer to have in a reserve fund. Remember that vacancies can result in lost revenue as well as in repair and upgrading costs. Vacant units typically mean that the property is operating at a loss until the unit is leased. You must have enough cash on hand to pay for the mortgage, repairs and operating expenses during vacancy periods. The property also may need more significant repairs over the years, such as an HVAC or roof replacement. In some cases, you may need to pay the insurance deductible when filing a claim. As you can see, it is necessary to have a healthy reserve fund if you want to keep your property well-maintained and to avoid financial stress in the process. Some investors find that their comfort level with regards to a reserve fund is substantially higher than the lender required reserve amount.

For many first-time real estate investors, it makes sense to learn as much as possible before buying your first property. However, there are many things that you will learn from personal experiences. The more expensive the property is, the greater the risk in some cases. Therefore, it may be wise to start with a smaller investment property. It may also be helpful to use the services of a real estate agent who is experienced helping investors locate quality properties.

Should You Take Out a Loan to Get Your Land Development Company Off The Ground?

Marty Stallone

The real estate market is booming in many places across the country. As a result, there are numerous people who are interested in investing in real estate. When most people think of investing in this asset class, they envision purchasing a home and renting it to tenants. However, there are many ways to invest in real estate.

Land development is a great opportunity for people who have the capital to invest. Land development is a type of investment that usually takes several years to see a return. Some people are interested in starting a land development company.

How to Get Started in Land Development

Developing land is a long process. Marty Stallone is someone who has a lot of experience in this industry. He is the owner of Metropolitan Development Group. Over the years, he has worked on countless projects designed to help cities develop areas of land into commercial or residential areas.

One of the most important aspects of land development is simply having a vision for the future. There are cases where rural land has turned to a commercial paradise in under a decade. Marty Stallone likes to work with people who have both real estate and business experience. Owning a business teaches people many aspects of the business world.

In order to get started with a land development company, getting some sort of education in the industry is critical. There are few people who understand the process of developing areas of land. In addition, there are few college classes that people can take on the subject. Although a degree in real estate would help, working with a land developer is really the best experience anyone can get. Before starting a company, it is highly recommended to get experience in this field.


One of the biggest obstacles in starting a land development company is the financing required. Few people have the cash to buy and develop large areas of land. As a result, borrowing money is often required.

There are some people who think that borrowing money is bad in a business. However, Martin J Stallone has had a lot of great results from borrowing and investing money. He recommends that new business owners start off slowly at first. Borrowing too much money can restrict the cash flow of a business.

Working with a local bank is usually the best way to get a business loan for land development. Local lenders are generally more willing to lend money to people who are going to use the capital to invest in the local area.

Finding Property

When starting a land development company, finding customers is not an easy process. There are numerous people who do not even understand what land development is. In addition, few people want to give up land to see it developed for commercial or residential reasons.

There are several ways to find a property to purchase. Going to an estate sale is a great way to find distressed property. In many cases, relatives of someone who has died live in other parts of the country. Instead of managing the property, the family members would rather sell it to someone else. As a result, it is possible to purchase a property at a steep discount.

Martin J Stallone recommends purchasing a few properties in the beginning. This will give a business owner the opportunity to develop land on a small scale in the beginning. Some people are in such a rush to get started that they end up making major mistakes along the way. This is the wrong approach to take in running a land development company.

Paying Down the Debt

Once a business owner has a lot of customers, managing the debt payment is usually fairly easy. However, it is a good idea to pay down the loan over a long period of time. With less debt, a higher percentage of the income coming in can be used to invest in the business. There are some land development companies that have millions of dollars in debt. Although it is possible to run a business with a ton of debt, it is much less risky to pay down the debt and use the proceeds of the company to invest in new land ventures.

Although starting any business is hard, there are many opportunities for new land development companies with the growth of the real estate market. Now is a great time to get started in this area of the economy. People like Marty Stallone are a great resource to learn from.

Why Taking Out a Loan to Start Your Dream Business Isn’t Such a Bad Idea

Chrissy Weems

Starting a business requires initial capital, perfect timing, a lot of research, and a very sizeable dose of luck. Failing to meet any of these conditions can be detrimental to the long-term success of the company. Generally, the hardest criterion is obtaining the necessary investment as most businesses require purchases of initial equipment, legal and start-up fees, employee costs, and other fixed expenses like prepaid rent and utilities. Thus, obtaining a loan could be one of the best options available to those who may lack the necessary lump sum of money. Further, there is an entire break-down of all the positive consequences of taking out a loan!

Builds Credit

Credit scores matter. Not just because successful entrepreneurs like Chrissy Weems know so, but because they quantify someone’s trustworthiness. Positive spending histories can help obtain business partners, get involved with larger projects, and take out heftier loans in the future. Thus, when a business is first starting, the owner might get a chance to (re)build their credit through financing which lays the foundation for any future growth.

Great Offers

As financing companies and large banks compete with one another, the party that gains the most are consumers. By driving down each other’s interest rates, these lenders make it possible for prospective businessmen to take out a loan and actually make money on it! How? Time value of money. The rule of thumb states that money someone has right now is worth more than the money they will hold in the future. This is why banks expect more to be repaid through loan interest. However, with low yield, businesses can take out a loan and pay it back fast enough to actually benefit from the time value of money concept.


In case someone’s business is just starting up, banks will, by default, not have a lot of trusts. To compensate for that lack of faith, they will require the borrowers to classify certain assets as collateral. For example, failing to make a payment means that someone loses their company’s truck. Although it sounds intimidating, it can be a motivational factor. After all, not a lot of things will push someone to meet their sales expectations as the fear of losing assets or having to pay high late penalties.

Opens Many Doors in the Future

The first point mentioned that building a respectable credit can be useful in the future. One of the ways is that a good relationship with a major lending company can be fruitful infinitely. If someone takes out a loan that gets repaid in time, they will be a welcomed customer in case they need any more loans later. Since growth often requires expansions like purchases of additional equipment, openings of new locations, and so on, being able to get additional loans could be important.

Emergency Funds

If the initial cost of business is $100,000, hypothetically, the entrepreneur should have at least 1.5 times that amount. This is because of all the unforeseen consequences that can occur. Unless someone’s experience matches that of Chrissy Weems, they may not be aware of countless issues that often come up with manufacturers, business partners, tax implications, shipment dates, legal perspectives, and more. All of those can facilitate a lack of revenue and one will have to fall back on their original capital that might already be spent. This is why it is important to have a cash-based emergency fund that contains liquid assets. So, a portion of the original capital should be left aside and a loan should be taken for any differences. Postponing the loan process is not beneficial as it will also delay the delivery of the capital that may be needed fast.

Not Too Many Other Options

Unless someone intends to do an initial public offering and sell stocks in their corporation, raising money can be a nightmare. Small business owners could, theoretically, look to their friends and family to help with the cost, but this will not happen if they do not share the vision. Also, letting outsiders aid with expenses may be leveraged with a high-position within the company. This often results in a long-term loss of authority that no business owner wants to go through. Hence why a lot of corporations always leave the owners with 51 percent of outstanding shares. Therefore, getting a loan could be the only way to sidestep this money-borrowing stage.

Skepticism related to financing is often justified due to factors like high APR, long repayment period, and unreasonable collateral. At least that is what applies to personal loans. With larger, business-starting loans, however, all of those factors should be outweighed by the potential of making money. If one is profitable, they will cover all of their liabilities without paying much thought to it!

The 3 Most Important Money Lessons To Teach Your Kids

Nationwide Debt Direct

I will always remember a specific moment from my childhood. My uncle was driving me to his and my aunt’s house, and as we got back into the car after stopping for lunch we saw someone in the restaurant parking lot light up a cigarette. My uncle paused before starting the car, and took a moment to look at me. “Smoking is a very bad habit for you. It’s not good for your health. You know that, right?” he said. The way he conveyed this message was so intentional that I felt honored that he had taken the time to speak it to me. Children learn by example, but we can not dismiss the importance of the lessons that we speak aloud. Taking the time out of your busy schedule, even if just for a moment, can mean so much to a child. When it comes to finances, you can change a child’s life by taking the time to teach them these three important money lessons.

1. Money Is A Tool

Money is a resource that can help us do the things we want to do. Tools are neutral; they are neither good, nor bad. A hammer can be used to build a house, or to tear down a house. In the same way, money can be a tool used to build a life of love and laugher, or it can be used to produce stress and discomfort. Training a child to see money in a neutral light can help him or her move forward with a postitive relationship to finances.

2. Compounding Interest Adds Up Quickly

Once a child is old enough to appreciate the value of a dollar, it is important to show them examples of compounding interest. If a child grows up thinking that money always multiplies in a linear fashion, they will never understand that exponential growth is possible. A great way to teach this lesson to your child is to help them invest a small amount of money. They will see it grow as the interest in turn collects more interest. Also, be sure to run through some investment simulations that show the impact of compounding interest over a span of several decades. This will help your child start to invest at a young age, which can have a significant impact on retirement funds.

3. Money Is Like Manure: It Helps Things Grow

When a child understands that money is a tool, they can also understand the importance of giving. Teach your child that money is not to be hoarded and stressed over, but rather shared with others in need. A concept such as tithing can be a great example of this. Helping your child donate some of their earnings at a young age can introduce them to the powerful and joyful feeling of giving the gift of money.

Your child is learning from you by watching the way you spend and interact with your money. Your facial expressions, off-the-cuff comments, and tone of voice regarding money will make a big impact on them. Make an even stronger impression by taking time out to speak your message to your child. This will most definitely be noted in their minds as a significant and memorable event, as it was for me.

If you want to share these positive messages with your child, but feel like your own finances are not in the shape that you would like for them to be before teaching someone else, you can start to improve your own situation. Reach out to experts such as those at Nationwide Debt Direct, and pick up books that will help you understand your finances. A great resource for learning about compounding interest is Tony Robbin’s book, “Money: Master the Game.” Helping yourself grow and learn will in turn help your child, as you become better able to transfer valuable money lessons.

Best Way To Predict Cycles In Real Estate To Invest Wisely

Investing in the real estate industry is a decision that comes with a lot of potential for benefits as well as the likelihood for losses if you toss the coin recklessly. In many cases, people emerge with success but the few that fail are the ones you need to focus on so you will not make the same mistakes. Predicting cycles in the real estate industry is one of the easiest ways you could obtain useful information that will help you invest based on facts and with the assurance that you will get your returns within the right duration.

What are cycles in real estate?

Before working on the specifics, it’s vital to understand what cycles in real estate are. Basically, real estate cycles are phrases that signify changes in the market. The market generally rotates through four cycles and this is repeated through a predictable pattern. The cycles, in this case, include recovery, expansion, hyper supply and recession. To help you understand each better, here is an overview of the different real estate cycles and what they mean to you as an investor.

  1. Recovery

Let’s pick an arbitrary starting point and assume that the market just recovered from a downward trend. The phase into which the market moves from a downturn to regain stability is what is referred to as recovery in real estate. This simply means the market is not in a ‘free fall’ any longer and has begun taking an upward trend. If you would like to make profits shortly after, this is an opportune moment to buy real estate.

Some of the indicators of this phase include widespread yet stabilized unemployment, many foreclosures and general fear in the population. At this phase, many people will be swearing that they would never waste their money in real estate, but you should not go with their ideas because they are informed by the frustrations that come with the downward trend of the market.

  1. Expansion

The second phase is an expansion, and in this one confidence in the real estate market starts to return. It basically represents calm and the beginning of prosperity in the market. Profit margins look good and the environment is favorable with prices rising due to a decrease in supply and increase in demand. It is a phase where more people can now afford buying their homes as opposed to renting.

  1. Hyper supply

Going by the perception that the market has recovered and the returns are attractive as seen in point number two, more people invest their money into new projects and this leads to an oversupply while the demand remains unchanged. Mass building projects also mean a skyrocketing of prices because investors are too ambitious and their perception is that the market is open and fully recovered to accommodate their new projects. However, this is what leads to the last phase of the cycle explained below.

  1. Recession

As supply rises beyond the level of demand in the market, the market collapses and projects that seemed promising few years ago cannot sell, a case that drives prices down quickly. Foreclosures follow and more owners realize they cannot pay huge mortgages they took because rent prices are forced down, and vacancy becomes commonplace. This is the scenario that was seen in 2007 and 2008. If you have any idea to invest in real estate, consult with several experts including a Tampa auto accident lawyer who is also experienced in matters real estate to help you make a smart decision based on the phases explained here.

BoldLeads on Real Estate Investing and Generating Additional Income for Retirement

Two business men shaking hands

There has been a lot of talk recently about how many investors are eschewing some of the more traditional investment strategies in favor of a focus on private equity. While the traditional approach to long-term investing once followed the 60/40 model in which equity made up the larger portion while bonds and cash made up the lesser portion, there seems to be a shift in which investors are placing 80 percent or more in equities due to the current low-interest market environment.

BoldLeads has always been a company focused on efficiency, and there are many investors who believe that the 80 percent model is not necessarily ideal for all investors. There is a fairly large segment of the population that can still benefit from an investment focus that includes real estate, particularly for those who are looking to create additional sources of income as their retirement years approach.

As a means to achieve diversification in an investment portfolio, a real estate property investment is an excellent choice due to the fact that there is not much correlation between the viability and value of real estate and the fluctuations bound to occur in the stock market. As agents working with clients secured through BoldLeads often point out, investing in real estate as a potential source of retirement income requires much more effort than some of the more traditional types of investment. It is therefore up to each individual homebuyer to ensure they understand their responsibilities if they intend to make an investment in a rental property.

Luke Weil Discusses Role of Foreign Investors in United States Real Estate Market


luke weil real estate marketDespite the widespread reports of a downturn affecting the Chinese economy, investors from China are continuing to invest in the United States commercial real estate market at a rate that vastly exceeds that of any other country. In fact, Chinese investors allocated more than twice the total investment dollars of the second-highest country, Canada, through the purchase of 47 properties valued at $9.3 billion.

Luke Weil, an experienced investor familiar with foreign investment strategies relating to real estate, would likely suggest that the massive surge in commercial property investment from Chinese investors is likely a product of the economic instability rather than an anomalous figure occurring in spite of the instability. It is entirely possible that these Chinese investors see real estate investment properties in the United States as a safer way to protect their accumulated wealth rather than allowing it to be subjected to a potentially volatile economic climate in China.

Perhaps what is most surprising in the surge of foreign investors snapping up properties is the fact that the commercial real estate market is not viewed as being a particularly strong investment at the moment. Many observers and analysts believe the commercial market’s sustained growth in recent years is due to level off quite substantially and may even be prone to a significant decline in value in the near future. It is not necessarily clear, however, what kind of practical implications that fact may have on the way Chinese investors perceive the health of their own economy.

Real Estate Investing Strategies: The Critical Importance of Clarity in Real Estate Terminology

real-estate-325285_960_720When applied to the world of real estate, the definition of investing tends to differ to a fairly substantial degree. There are certainly those who refer to making an investment in real estate in the same way they would a particular stock portfolio, but many others will use the term investment a bit differently. According to Dr. Sid Solomon, the connotation of the term is a critical one for all parties to understand in order to ensure that a simple miscommunication or misunderstanding does not complicate what is already a sizable purchase.

Without clarity in what the term “investment” means to the homebuyer, a real estate agent may unintentionally guide the buyer to make a purchase that doesn’t quite deliver the outcome the buyer is seeking. For example, a homebuyer may indicate that they wish to make a long-term investment in real estate, but they are not necessarily referring to the kind of investment measured solely on the financial return it ultimately yields. Instead, the buyer may be using the term “investment” to indicate a wiliness to spend slightly more than they have budgeted if it means access to exceptional schools, a safe neighborhood or an area in which there is a strong and pervasive sense of community and support.

If the real estate agent believes the homebuyer is seeking an investment based on potential financial return, then it is very unlikely there will be any overlap in the qualities the buyer is seeking in the properties the agent believes offer the best possibility for a financial return. Since it only takes a few moments to clarify, both the homebuyer and the real estate agent should make sure they discuss precisely what is meant by the term “investment.”

Building a Home in Toledo Ohio

While buying a home is a great goal to have, the ability to build a home is something much greater. For one thing, if you can build a home, you can put it together the way you want as long as it is within the boundaries of the property you have paid for. One great place to build a home is in Toledo Ohio. There are custom home building companies that are willing to help you build your home. One custom home builder is Ralph Slaske. He is a member of the Home Builders Association of Greater Toledo and the National Association of Homebuilders.

One of the reasons to build a home in Toledo, Ohio is because of the climate. The climate is very humid. There is also a lot of variation in temperature for each season. One interesting aspect of the summers in Toledo, Ohio is that the Spring and Summer months are wetter compared to the fall and winter months. This interesting client is what makes Toledo a great place to build a home. You get to enjoy the unique climate of Toledo Ohio while you get to stay in a home that has been built and customized to your liking.

On the Role of Crowdfunding and Real Estate Investing

One of the most interesting developments stemming from the widespread availability of Internet access is the increasing use of crowdfunding for all sorts of interesting and unique purposes. Creative individuals are now beginning to use crowdfunding for real estate investment purposes, which may prove to be a shrewd investment strategy for those who do not necessarily have access to the capital needed to enter the market without outside financial assistance.

While there are certainly some issues that need to be worked out with this process, 1 stop maintenance reviews have consistently indicated that most people understand the importance of acting quickly in most endeavors. Since there are many who believe that owning property is the safest long-term investment available and contend that it is far more likely to generate a sizable return than the stock market, young investors in particular are interested in making an early investment in order to maximize their returns. As one stop maintenance might point out, this sort of focused and informed approach is likely to be successful in any industry.

As a means of increasing access to real estate investments, crowdfunding appears to be a solid option that could help many investors achieve exceptional short- and long-term results. 1 stop maintenance would probably also note that increased market access could very well lead to real estate property values enhancing tremendously over a relatively short period of time. The potential influx of a large number of new prospective investors can deliver untold benefits, and the fact that crowdfunding may make this possible demonstrates how innovation can stimulate unpredictably positive outcomes.