GuitarMaster asked:


How do you get the money? What documents/contracts do you need? This will probably differ than other businesses. For example, it would seem a little odd for an investment banker to go to another investment banker to ask them to invest in their investment banking business. Technically, where exactly do you get the starting money? Answers will be appreciated. Thanks!!!!!

LOWELL

Michelle Kour asked:


Why invest and why take out an investment loan?

People’s needs for investment are as varied as the investment vehicles themselves. Some want to own their home outright, pay the kids’ university fees, or take world trips; while others want to start their own business or retire on a comfortable income.

The reality for most of us is that we won’t be able to afford these things on our salary alone (unless you’re fortunate enough to be the CEO of a major corporation). The key to successful investment is to leverage, that is, to use an investment loan to improve your capacity and increase your return.

Why invest in property?

Investing in property is the safest way to invest, but we also believe in a diversified portfolio to minimise risk. Similarly, Australians have trusted investment property as their favoured investment vehicle for generations – and with good reason.

We recognise the cycles, the incredible advantage that appropriate leverage (making capital gains from borrowed funds) offers, the benefits of rent return and taxation relief in servicing those borrowings, and the significant growth achievable over time. It is not unusual for ordinary investors to accumulate four or more properties over 10 years – and the financial flexibility and cash flow outcomes can be exceptional, giving you piece of mind.

Property allows you to leverage. With only $20 000 cash invested (plus around $10 000 upfront costs) it is possible to invest in a $200,000 property, making your earning potential greater.

Can you afford to invest in property?

The question should really be, “can you afford NOT to invest”, whether it be in investment property or some other form of investment? While everyone should be investing to give them more options in life, property investment may not be suited to everyone. Most people on a standard wage can service an investment loan. After all, the investment loan interest is first met by any rental income you generate. As a general rule there will only be a small shortfall on the interest on your investment loan. Traditionally the investment loan shortfall, as well as other costs relating to your investment property would be met by your personal income. Many investors however include a capitalising line of credit in their investment loan package so that they can draw on this to meet any shortfall costs as opposed to paying same from their personal income. Instead, they use as much of their personal income as possible, not to pay any shortfall interest on the investment loan but to make additional repayments to their home loan. This way their home loan is paid off much more quickly.

With your investment loan you should also remember that negative gearing does deliver some relief to servicing your investment loan on the way through. While most investors will wait until the end of the financial year to claim their tax deductible shortfall you can in effect claim the investment loan shortfall on a monthly basis. Check out the ATO website on deductibility of interest on investment loans.

What history can tell you about property

History shows us that all property whether it be investment or owner occupied doubles in value every 7 to 12 years. Each property market is cyclic, that is, it goes through times of fast growth followed by little or no growth. When one market eg Sydney is in strong growth, other markets eg Brisbane will be in a little or no growth phase. The markets are referred to as being counter cyclic – when one is doing well, another is doing not so well.

This means for example that when the Sydney’s growth slows, Melbourne’s picks up followed by Brisbane. This is the reason we emphasise the importance of investment property as a mid to long term investment. The key however is to identify the markets with the highest probability of short to medium growth and lowest probability of downside risk. This enables you to build equity faster and therefore add to your investment property portfolio.

It also means that there are always new opportunities for investment property as there are always markets somewhere which are experiencing their growth phase. Choosing investment properties in growth markets assists in developing well-balanced, diversified portfolios.

Property in the future

In the past all property was good investment property, and a lot of people did very well out of it. While those days are gone, there are still exceptional opportunities for investors who understand the current market influences such how our population is changing, how family size is changing, how types of employment are changing, and how the economy is changing and what influences it.

So why wait? Research property – buy with your head not your heart – be an informed purchaser and most importantly make sure your investment loan is also working for you.



ALVARO

okebloke asked:


What does an investment banker do that other bankers do not? How is someone deemed qualified to be an investment banker?

JUDE

lady_bella asked:


To your advantage that is?

This is all new to my husband and I and we’re looking for feedback from people who have experience in this and are making money in this type of investment. Thank you!

MICAH

Jonah A asked:


I am involved in a 3-way investment on a rental property and we are being forced to sell because of a DOT project. Our profit on this property will be approximately $75,000 and we need to figure out how to split this up. Being close family members, we weren’t too concerned about figuring this out we bought the property.

I would really appreciate any suggestions from real estate investors experienced with partnership investments like this.

Here are the figures for the capital and work/mangement invested by each party.

Investor #1:
Invested $150, 000 by taking out a regular home loan.
Lived at the property and payed “rent”.
Did 85% of the maintenance, improvements and rental property management.

Investor #2:
Invested $75,000 from a home equity line of credit.
Did 0% of the maintenance, improvements and rental property management.

Investor #3:
Invested $25,000 from a home equity line of credit.
Did 15% of the maintenance, improvements and rental property management.

Thank you!

VINCE

TourFactory asked:

http://www.tourfactory.com/s404238/r_www.youtube.com

KORY

flipondizmission asked:


also is there alot of opportunities or atleast an okay amount of opportunities to be an investment banker and make good money? what type of jobs should i seek in order to be an investment banker?

SHELDON

James W Badgett asked:


Angel investments: The 5 W’s

Who

So what is an angel investor? The term angel stems originally from the private investors that would fund Broadway musicals. Over the years, the term has become more encompassing and now business angels invest in industries and countries all over the world.

The UK angel market is a thriving one as more and more investors look for investments outside the traditional stock market and property market. The UK now has around 18,000 business angels. Collectively, it is reckoned they invest around £500 million a year in around 3,500 businesses – though since a lot of deals are private in nature the exact sum is unknown. One way or another, however, angel money is a growing source of funding for early-stage business.

So who are these people? A recent survey tried to paint a profile of a typical investor. It found that the majority of angels in this country are thought to live in London, the South East or East Anglia, although there seems to be a growing contribution from the Midlands. Most of them - around 95% it is believed - are male. In the main they tend to be over 35, have experience of running a company and often have directorships at one or more firms.

That is another defining factor. Many of these people are looking for investments with which they can be involved and over which they can have a degree of control. Around 39 per cent have active managerial involvement in the majority or all of their investments. A further 40 per cent have involvement in selective investments. Just 20% prefer not to be involved.

This is a very satisfactory arrangement for most companies seeking funding. In my experience, companies are often looking not only for funding but also for an investor with managerial experience and industry contacts. The “marriage” can therefore be highly beneficial for both parties.

Where

It is traditionally thought that angels like to invest in a business located close to their home. There is some comfort in being able to go and ‘kick the tyres’. Some 17 per cent of target companies tend to be located within 50 miles of the angel’s home. A further 30 per cent are within 150 miles. Most of the remaining 53 per cent are further away within the UK.

A small, but growing, percentage of investments are abroad. Proximity, it would appear, is becoming less of an issue. With the advancement of technology, angels are getting more comfortable investing cross-border. The falling cost of communication and travel has meant that it is now easier than ever to check up on investments in the US or elsewhere.

The rise in communications has certainly made it easier for angels to find investment opportunities. There are a number of websites dedicated to bringing investment opportunities to potential investors such as the angel investment network (www.angelinvestmentnetwork.co.uk) which allows investors to scan hundreds of potential proposals. However some investors still prefer the old-fashioned method of finding investments in printed publications or by attending presentation days.

One of the keys to success is what corporate financiers call ‘deal flow’. The more deals that cross your desk, the more chance you have of spotting a genuine growth opportunity. To that end, the majority of business angels are members of at least one angel association or network, and most have joined two or three. These associations and networks however tend to be quite regional in nature and often angels take it upon themselves to seek out investments outside their immediate community.

Around 55 per cent of angels interested in doing a deal prefer to share the risk with like-minded people, and be able to access other investors. However, according to the survey, only around one in six prefers to invest with friends or as part of a syndicate or club – a desire to keep business, friends and family separate perhaps?

What

So what is a typical angel investment? The majority of angels spread their investment around two or three companies. This makes sense. They probably look for one to generate a stellar performance, one to produce no more than an average return and one to go bust. Typically, angels invest on average around £30,000 but obviously this figure can be considerably higher, with many investments around £100,000 and upward.

Angels want to see an executive summary or short précis at first contact. Many angels feel they are presented with too many complicated business plans and do not wish to be over-burdened reading long reports at the outset. It’s a bit like reading someone’s résumé. The recipient of a new plan probably spends less than two minutes evaluating the initial submission, so attention has to be grabbed by an articulate, compelling and concise writing style that focuses on the excitement of the opportunity.

Often the original investors are unwilling to give enough away to the new investors or there may be problems over the ownership of patents and rights. Some of these things really need a corporate financier to come in and advise on how to structure them properly before they go and raise money.

Why

Why are Angels looking to invest? Although it is thought that many individuals invested for tax reasons, recent surveys have shown that angels actually invest for a whole host of reasons - of which tax planning and tax optimisation came surprisingly low.

Top five Investment Reasons

5. Fun – small amounts

4. Have built and sold companies before

3. Discretionary capital

2. Portfolio diversification

1. Higher ROI

Higher ROI is key. Invest in the stock market and you are lucky if you see more than single-digit growth year-on-year. Invest in a start-up and the sky is the limit. And not just start-ups. By and large, private companies are valued at about half what their equivalents are worth on the stock market. So you get in more cheaply. Of course, the corollary of this is that the risks are higher – often much higher.

When

Angel investors are normally weighted towards the earlier stage investment, despite the past and current market condition. This seems to reflect a desire for larger speculative returns over so called safer investments. The average business angel is a lot more inclined to accept a lower return than that of the 1990’s and over a longer period. An exit strategy is also an important concern for angel investors. Most investors like to get in and out in 3 to 5 years. It is important to know when you want to get your money out.

So to sum up, one thing I think is important is that people should concentrate first and foremost on the sort of businesses they know something about. So if you have spent your life in engineering, you’ll probably be able to evaluate an engineering proposition very well – and you’ll know the pitfalls and the difficult questions to ask. But you won’t have a clue how a chilled foods business is run – and you probably shouldn’t go there, however attractive the numbers may look.

Other rules: don’t invest ‘rainy day’ money somewhere where you can’t get your money back out easily (and that’s most of these things).

And don’t throw good money after bad. Many investors in these things end up being called on for a second or third round of financing because the original plan has fouled up or there are delays in turning something into a commercial product. Be prepared to cut your losses.

And diversify. If you are going to take this seriously, two or three investments make sense. Good Luck and happy investing!



BENJAMIN

N.T. asked:


I am constantly wondering what types of investment plans or other forms of investment are out there for young entrepeurs who just want to make quick money legally. Therefore, just prove a full explanation of your opinion. Thank you.

LYNN

Mike asked:


Hello every body
suppose some one has 2,000000 $ cash. what is the best area of investment in United states that does not need very specific managerial talents or is not so risky.
Thank you very much

RODNEY