While the economy has started to even out, the need to earn a living outside the context of regular employment is still apparent. For women who want to earn cash, there are a number of possibilities to entertain, one of which is to venture into home based business.Benefits of Home Based Business for WomenMore Time with the FamilyStay-at-home mothers these days have the option of working while taking care of their children. Working from home certainly allows the flexibility in schedule that you cannot expect from a nine to five job. Home based jobs allow women to balance their time between managing the household and earning money, which can be used for improving the quality of life for the entire family.Being able to choose their own work hours is very important to many women, especially those who are not willing to sacrifice their home life in favor of a full-time job.Professional and Personal FulfilmentSuccess is no longer limited to the confines of the corporate structure since there are many other ventures that do not require an office. Women now have the chance to become professionally competitive without having to slave away trying to climb the corporate ladder. There are a number of home based businesses that do not only allow flexibility in work hours but also give a sense of accomplishment every day.Lucrative Earning PotentialWhile most people assume that home based jobs are for those who are looking to earn part-time, there are in fact a number of businesses that allow you to earn up to five or six figures a year. Many women have come to realize that they can actually earn more money working at home than having a full-time job.This reality is one of the things that attract women, especially stay home moms to explore the option of having a home based business.Wide Range of Jobs or Businesses to Choose FromAnother benefit of working at home is that you can decide what type of job or business venture you want to take up. Since there are about a thousand different things you can do online, the possibilities are virtually endless. Some women choose marketing or sales, while others are more inclined to provide services, i.e. writing, SEO, advertising, etc.Home Based Business for WomenThe internet is the best place to scout for home based earning opportunities, regardless of whether you want to go into sales or provide services. Online based businesses have become the norm these days, especially since they do not require any background in business or a large start-up capital.Internet marketing is one of the most popular ventures today, mainly because it holds the promise of abundant cash. While it takes work and dedication, internet based marketing has proven to be one of the best choices for women.In order to find the best earning opportunities on the internet, you must be willing to search for facts and ascertain the legitimacy of every business venture you come across.
Realtors – How and Why You Should Build a Commercial Property Management Portfolio
It’s in markets like this that a commercial real estate management portfolio is of prime importance in the function of the real estate business. The management portfolio allows the agent to have a supply of properties for sales or lease in the future, as well as management fees from the portfolio in the meantime. In effect, the management portfolio is a source of controlled stock for the agent to sell or lease in the future.
Property Agents Building the Portfolio?
So how do you build a commercial property management portfolio? The simple answer is that you build it from the sales and leases that you do in the current market. The landlord is most receptive to the change of property manager when they are purchasing the property or when they are undertaking a new lease.
Referral business from other property owners and business leaders is also a way to get in touch with the landlords that may own property and want to outsource property management services. In saying that, a real estate agent is always far better positioned to capture local market intelligence and enquiry that can shorten a vacancy period for a tenancy in a landlords property.
Agents Should Protect Their Property Management Portfolio
It should be said that a property management portfolio should be protected and serviced well by the managing agent. Commercial and retail property is not like residential property; you need knowledge and the right people to do the management process well.
Costly mistakes can be made if the property manager does not understand the property type or local area. Landlords will happily move to another agent if too many mistakes are made.
Here is why:
The tenants in the property should be optimised in a tenant mix plan. This says that the tenants require strategy and placement into the property. When you have multiple tenants in a property, this becomes even more important.
The income for the landlord comes from the leases that should be optimised and managed for critical dates
The expenditure in the asset will need controls and budgets to ensure that cost standards are maintained and do not blow out beyond the standards in the local area.
Every lease should be managed so the vacancy factors in all properties are minimised.
When a vacancy occurs the property manager should proactively market the vacant space to the right target market to attract property enquiry.
The maintenance processes in a commercial or retail building today require expertise and understanding especially when it comes to essential services and satisfying the codes that apply to building operation and function. In many cases you will need the assistance of a building engineer to oversee matters of compliance today.
Build the right management portfolio and then protect it with good service and good people. Landlords and tenants will appreciate the care taken. Your agency business will grow around a sound and stable property management portfolio and client base.
Can You Invest Your 401(K) Plan Directly Into Real Estate?
Your 401(k) plan (or 403(b) or 457 Plan for that matter) is likely managed by one of the following companies: Ameriprise Financial, Credit Suisse Securities, Deutsche Bank, Edward Jones, Graystone Consulting, J.P. Morgan, Merrill Lynch, Morgan Stanley, Oppenheimer & Co., Raymond James, RBC Wealth Management, UBS Financial Services, or Wells Fargo Advisors. These companies and their financial advisers control most of the retirement wealth in the United States.
Now, ask your financial adviser if you can invest directly in real estate with your current plan. They will probably tell you that you cannot invest directly in real estate, but they have a number of Real Estate Investment Trusts (REITs) you can choose from. Even though a REIT has real estate in its name, it is not an investment in property. REIT is an investment in a fund that obtains its cash flow from investment properties. It is different from a direct investment in real estate.
REITs do not typically let you leverage your investment, which is one of the most powerful forces for creating long-term wealth. Even with an investment in a REIT, your retirement portfolio is likely 70 percent or more invested in various mutual funds, all of which experience stock market volatility. That’s neither diversification nor smart asset allocation investing. The Internal Revenue Service will let you invest directly in real estate, but your plan administrator will not. Why? Because they’re not set up to handle the administration nor do they earn a commission by recommending direct investment in real estate.
Let me give you an example: Say you have only one asset, $200,000 cash and no liabilities. You decide to invest $100,000 in mutual funds and $100,000 in direct real estate investments, both of which are appreciating at 6 percent per year. The only difference is that you can borrow additional money from a bank to buy more properties. You obtain a 20-year amortizing loan at 5 percent. To be conservative, you borrow only $300,000, so you have a 75 percent loan-to-value ratio. After 20 years, your mutual fund investment has increased to $320,714, while your real estate investment has increased to $1,282,854, an increase of $962,140 over the mutual fund investment. That’s a 300 percent increase in value with the same $100,000.
What about the payment of the debt over the 20-year holding period? The mortgage has been paid off by your tenant who operates his business on your property. You get the tax benefits of depreciation and interest write offs, if you’ve invested personally. If you’ve invested your money through a Self-Directed 401(k), that money is growing tax-deferred or tax-free, depending on whether you have a Traditional or Roth account.
You think this is unrealistic? The only unrealistic expectation is to think that your mutual fund accounts have appreciated at 6 percent. According to Dalbar, Inc., the average mutual fund investment has gone up on average of 3.27 percent over a 20-year period. The National Association of Realtors, on the other hand, reported that real estate has appreciated in value an average of 6 percent over the past 30 years, even with the downturn in the economy that occurred in 2008.
If most financial advisors preclude you from investing directly in real estate, how do you invest in real property with your 401(k) account? The answer is, you don’t with your company 401(k) account. The only money you should be investing in your company 401(k) account is enough to get the full matching funds. For instance, if you are making $100,000 a year and your company offers a 4 percent match, you invest $4,000 in your company 401(k) to get the 4 percent match. They do a 100 percent match up to 4 percent of your income. Then you create a Solo or Individual 401(k) account with an administrator/custodian that handles Self-Directed Accounts and invest the rest of your retirement funds in that account up to the $51,000 contribution limit if you’re under 50 or $56,500 if you are 50 or older.
So, if you contributed $4,000 to your company 401(k), and your employer matched it with another $4,000, you can contribute $43,000 to your new Self-Directed Solo 401(k) account. If you’re 50 or older, it would be $48,500. That amount can be invested each year for you and your spouse, if you have it set up properly. There are no income limits.
Eligibility for a Solo 401(k) account requires two things: (1) the presence of a self-employment activity; and (2) the absence of full-time employees. So you set up a consulting business either as an S-Corporation or limited liability company (LLC) and pay yourself a salary, 100 percent of which can be contributed to your retirement fund. Then you invest in commercial, income-producing real estate investments. It’s that simple.