Archive for the business Category

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!

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.”

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.

Recent Developments Making Real Estate Investment Ventures Far More Accessible

Venture capitalism has long been the sole province of the wealthy and those who have attained the degrees and certifications necessary to enter the world of finance on a large scale. These factors contributed to making it very difficult for the average investor to consider their options regarding a host of real estate opportunities, particularly those involving an investment in commercial real estate. With the implementation of the JOBS Act, however, that has changed in a significant way, and investing in commercial real estate is no longer a means through which the wealthy are able to use their financial might to accrue even more wealth.

While there are a number of companies now making these investment opportunities available to those who were previously left without much access, Tim DeCapua has noted that Fundrise appears to be quite well positioned due to its reputation for helping connect investors — particularly those who are accredited investors — with real estate projects in the commercial sector. The implementation of the JOBS Act has allowed Fundrise to expand quite a bit without having to alter the manner in which it does business, as it now provides access to diverse real estate portfolios through its newly developed real estate investment trust.

This development is an important moment in the world of finance and real estate investing, as greater access through a system that looks quite similar to crowdfunding ought to stimulate consistent growth in the commercial sector of real estate while also providing a significant return on investment for those who would not otherwise have the opportunity to enter the market. With positive outcomes apparent on all sides, it appears the JOBS Act has functioned as intended and has enabled the widespread expansion of a popular investment vehicle.

Money Comes To Karl Jobst

Money comes and money goes in a cycle that seems to follow it’s own laws of motion as it flows from the business to the bank to the person and back again. Successful people like Karl Jobst have caught on to this way money works and as you can probably tell from this most recent interview with Karl Jobst, money is the last thing he seems to be concerned with.

Karl is more focused on building his team through his hiring process and servicing his clients. This is because he knows that if he does these things, money will come to him so there is no need to chase it.

Money…What Money?

The money for real estate can be difficult to come buy. untitled (185) images (4) Finding an investor can be impossible if you don’t have a proven record of good deals to point to.  If you are just getting started you may have to get a second on your home to start the real estate investment.  Now if you put it all on the line you better make that investment turn a profit or you will be in deep trouble.  One should be aware when it comes to real estate that deals that are too good to be true should be looked at with skepticism.  Dove Press posts deals that should give you a good start.