8 WAYS TO RIDE THE WAVE OF NEW HOME CONSTRUCTION MARKET TO PROFIT

8 WAYS TO RIDE THE WAVE OF NEW HOME CONSTRUCTION  MARKET TO PROFIT

Despite the recent collapse of the real estate market and the attendant havoc it wrought on the US economy, real estate is still an IDEAL investment: Here is the acronym for IDEAL.

I- Income

D - Depreciation

E- Equity

A- Appreciation

L- leverage

With the low level of real estate inventory, residential new construction has become the norm rather than  the exception. After years of virtual inactivity on the housing construction front, the pace of new construction has accelerated over the past 9 months.

As a Realtor, hardly a week passes by without being invited to a Realtor Luncheon. These luncheons are organized by Agents on behalf of builders to introduce their new products to Agents. These events are normally catered by some of the famous chefs in Atlanta.

I would encourage investors as well as buyers, especially move up buyers to consider new construction.

Here are the 10 Reasons Why:

1. The activity of the hedge fund companies in entering the rental  estate market has helped accelerate the increase in rental rates

2. With new construction, there is low maintenance on the rental property and they are normally guaranteed from one to ten years.

3. There is a huge pool of renters as a result of the dearth of inventory resulting in the increase of rental rates.

4. The tightened standards and the numerous federal policies has made it difficult for buyers to qualify for mortgages.

5. The current low mortgage rates makes investment properties very profitable

6. It is advisable to know your exit strategy - when to sell or exit out of your investment

7. Know how to harvest all the advantages inherent in investment property ownership

8. In this current market builders are giving out a lot of incentives for potential buyers.

TEN REASONS WHY DIRECT SELLING IS AN IDEAL FOR THE BEGINNING ENTREPRENEUR

TEN REASONS WHY DIRECT SELLING IS AN IDEAL FOR THE BEGINNING ENTREPRENEUR

Direct Sales really the greatest source of grass-roots capitalism because it teaches people how to take a small bit of capital, that is your time, and build the American dream." Jim Rohn - America's Business Philosopher

I have always advocated that we should have a side hustle in addition to working a regular 9-5 job. The current labor market is such that it would be foolish to depend solely on the paternal corporation.

The old model of going to school and getting your degree and going to work for the corporation for the rest of life is going out of the window. We have to think about new ways of generating income to fund our life style and build wealth.

I believe that Direct Selling is the most elementary way to go into business for yourself. This brilliant idea has been criticized as being a pyramid scheme. But in my opinion, Corporations are more pyramidal than network marketing companies.

The typical corporation out there is there mainly to extract as much money from the employee as it can. In a typical corporation, the workers at the bottom make the minimum wage while the people at the top could make millions a year. In corporations, the big money is made by those at the top of the ladder and hardly percolates to the bottom.

Here is what one of the leading corporate managers said about corporations. "The essence of corporate profitability, however is to keep taking in younger people at the lower levels and moving them up and very gradually improving their pay. The net result is to make the employee at some stage of his career, a captive of the corporation

The Direct Selling Options: The Ten Advantages

1. Low capital to get started,  low monthly overhead, no employees, no inventory to carry

2. Fair prices for their products or services

3. Focus is on points of distribution and duplication

4. Create leverage that allows you to get paid on the efforts of thousands

5. Work part time or full time - no cap on your earnings

6. You promote yourself - no corporate favoritism or discrimination - rewards are based on your efforts

7. Dynamic relationships that lasts a long time

8. You cannot be fired - you can quit on your own terms

9. Can create cash flow, build wealth and create residual income

10. You have infinite customers based on your efforts

Footnote:

US Direct Sale :
U.S. direct sales totaled $31.6 billion in 2012, a 5.9 percent year-over-year increase from $29.87 billion in 2011. In 2012, there were 15.9 million U.S. direct sellers, an increase from 15.6 million the prior