Financing Rental Properties

Many investors are now finding that rental property can be an excellent way to create wealth. If you are considering getting involved in rental property investing, it is a good idea to educate yourself as much as possible. First, you need to find out what it takes to become qualified to purchase investment property because it is actually somewhat different than becoming qualified to purchase a regular home. 

One of the reasons for this is the fact that a significant number of investors either walked away from properties or declared bankruptcy during the early 1990s. While you should certainly not be punished for someone else’s problems, neither do lenders want to be left holding investment properties. Therefore, it is important to understand that the requirements for being approved for a mortgage on rental properties are somewhat different from what you may be accustomed to. 

There are many different sources you can tap into for possible financing. These options include:

·          Mortgage broker

·          Local savings and loan or bank

·          Private lender

·          FHA (Federal Housing Association)

Regardless of which option you choose, you will find that most lenders will want to be assured that you will have a sufficient amount of rental income in order to cover not only the mortgage payment but also other expenses such as insurance, taxes and maintenance. Depending on the amount of income that will be provided from the property, some lenders may require a larger down payment.

There are also different types of loans which you can use to finance the purchase of a rental property. One option would be a residential loan. This type of loan can be used to purchase from one to four units. The exact options that are open to you often depend on whether the property will be owner occupied.

Another option would be a commercial loan. This is an option when the property is five units or more or it will be non-owner occupied. Due to the fact that it is a commercial loan, it is often far different from a residential loan in regards to terms and requirements. One of the main differences between a commercial loan and a residential loan is the fact that fees and rates are frequently higher on a commercial loan. A larger down payment is also often required. The down payment on a commercial loan typically runs between 25% and 35%.

Online Foreign Exchange Trading

Online Foreign Exchange trading these days has not only become a huge industry for online trade investors, but in fact, it is the largest market in the world. It is a very profitable arena to do trading, and huge companies are not the only ones given the advantage, but many independent individuals can now take on the market through the Internet. 

One very good thing about online foreign exchange trading is that there are very minimal costs that a party has to undertake. Because there are no middlemen involved and one can easily do direct trades with the market responsible for the pricing of currencies, this means that there are no more commissions that you have to pay.

In online foreign exchange trading, there are no clearing fees, government fees or brokerage fees that you have to take care of because brokers in this market are compensated for their services through a bid ask spread. There are also very low costs for each transaction. And each bid or ask spread is usually only less than 0.1 percent when there are normal market conditions. For larger dealers, the least you can pay is only as low as .07 percent. 

Another factor why so many people find the online foreign exchange trade very convenient is the fact that it never sleeps. It is open for 24 hours a day from Sunday in the evening to Friday afternoon EST, and therefore people do not have to wait for the opening bell. This can be very practical especially for those who only trade part-time because they can at least do business whenever they are free –in the morning, noon or at night. 

In online foreign exchange trading, even a small margin deposit can be able to control a larger value for total contract. Through this leverage, the trader can make a lot of profit, while keeping minimal risks. A good example for this is when brokers in the Foreign Exchange offer a 200 to 1 leverage, because with a 50-dollar margin deposit, a trader could buy or sell 10,000 dollars worth of currencies. 

But take note that without proper risk management, there is a huge chance for you to experience significant losses along with gains.

Due to the fact that the online foreign exchange industry is the largest market today and because so many parties have gotten involved in it, liquidity has become quite prevalent in this market. It is very unlikely that you can ever get stuck in an online foreign exchange trade. Under normal market conditions, one can easily do trades at will with just a simple click of the mouse. And in fact, in online foreign exchange trading, you can have more freedom to automatically close your position when you have reached your aimed profit level just by setting your online trading platform.

There are many advantages in doing Foreign Exchange trades online. In many ways, it proves to be a very practical arena, but the promises for huge profits are never compromised.

Guide To Online Trading

There are very basic, yet very vital things that anyone who wants to engage in online stock trading business must know. After all, investing on your own knowledge and skills in trading is the most important thing that anyone must consider in order to win in this very risky trading game. 

Here are a few tips that could help prepare you for online stock trading.

Whatever trading style you may choose, may it be day trading, short-term trading, weekly trading or even monthly trading, consider the nature of these styles and how you can fit them into your way of working. Take time to consider what type of trading you would want to do and what style would best fit your lifestyle. For example, if you are interested in day trading, keep in mind that in order to do well in this particular field, you may need to be in front of the computer and on the telephone for very long hours in a day. 

The type of trading style that you decide to delve into should also greatly determine on which broker would be best for you. If you were engaging in day trading, then it would be best to choose a firm that has very good and accessible technological services. Other styles of trading can manage less sophisticated brokers. Make sure that you take time to get to know your broker by checking whether the firm is legitimate under the SEC and if it receives good reviews from those with experience in trading. 

Again ensure that you choose a trading method that will take advantage of both up and down markets. A strategy that will work in all types of markets will surely be beneficial because you never know when demands for stocks may increase or go down, and you would not want to end up losing money because you failed to foresee the different trends of the market. 

Aside from this, make sure that your strategy involves minimal risks and gives you high rewards. It is always better to prevent and control risks than allow the chances that you may have to face serious dilemmas. Risk management is very vital in order to become successful in online trading.

Take time to know which stocks would be wise to place your investments on through extensive research or even through seeking the help of a professional. It is important that you are aware of the type of stocks that you risk your money on, after all, whatever results these may garner in the market will surely affect whether or not you will gain or lose profit.

Finally, take time to know when it would be best to sell your stocks. Most people just focus on what and when they should buy stock, but often times they forget how important it is to consider when would be the right time to sell. Take in mind the signs and conditions that can give you signals on when it would be best to get out of a bad investment before you lose substantial amounts of money.

Advantages Of Online Stock Trading

In the traditional set-up, you have to call your broker and ask him to buy or sell the stock. Then this would then be followed by a process wherein your broker will negotiate with the trader for the price of the stock. Then, you would have to wait for your broker to call you for the price before you can make a decision on whether you should buy or sell. But the advent of the internet has made provision for handy tools that efficiently replace this traditional means of buying and selling stock. In fact, one of the fastest growing markets online is stock trading. 

However, if you have grown accustomed to the traditional methods of the stock exchange, then having quite a few hesitations with buying and selling stocks online is understandable and quite normal. But what you should know is that online trading can be very efficient and beneficial to you as an investor. With much perks on factors such as time, control, and cost, you can surely get used to how easy the hi-tech process can be. 

Here are the most evident advantages of online stock trading:

Every investor and broker know that time is a very essential element in trading stocks. The effect of whether or not you would be able to make profit or experience loss in your transaction will greatly depend on the time it takes to execute the trade. However, when you do transactions online, all it takes to be able to buy or sell stocks would be a single click of the mouse. Through this, a quicker exchange can be made, which may also ensure faster earnings. 

Through online stock trading, you can also be free to make your own decisions to buy or sell stocks instead of relying on whether or not your broker will agree to execute a certain trade you might be interested in. In a way, you are empowered to trust your own intuition and take your own risks with your investments. Since trading is done through the Internet, you can watch over your stocks more closely. After all, you can always log in on your account anytime and view how your shares are fairing in the market anytime you want. This empowers you to be aware of the performance of your investment instead of having to wait for reports in the mail that may not come as often as you would like. 

Another very good benefit of online stock trading is the lower stockbroker commissions and that you will have to pay as compared to the traditional method. If you trade in a sufficiently large volume of stocks, it can even be possible for you to be able to negotiate your broker’s fees. Thus, you can save a lot of money and even earn more.

Although keeping up with the times and going hi-tech may seem quite intimidating at first, especially if you are used to more traditional methods, moving forward can always become a much more practical and reliable step for you to take in the long run.

LEKKI FREE TRADE ZONE OFFERS EXCELLENT INCENTIVES FOR MANUFACTURERS

From: tradeinvestnigeria.com

Investors have the opportunity to establish and invest in manufacturing industries in the Lekki Free Trade Zone (FTZ), situated in Lagos State.

The idea behind the Lekki FTZ is to create a new model city. It is located on the Lekki Peninsula, south-east of the city of Lagos. The zone will feature its own power plant, deep sea port, housing, recreational facilities, etc. Phase one of the project was completed in May 2008.

One of the reasons why the Lekki FTZ has been introduced is to attract foreign direct investment in industries such as textiles, household equipment, electronics and food and beverages. Investors are therefore invited to consider the possibilities.

Reasons to invest in the Lekki FTZ

Market: Situated close to the Lagos metropolis, the Lekki FTZ provides companies with easy access to Lagos' population of 18 million people and Nigeria's total population of close to 150 million. The FTZ is also ideally located to export to the US and European markets.

Incentives:  All goods going into the FTZ will be free from duty and investors don't have to pay taxes. Companies can be 100% foreign owned, foreign exchange controls do not apply and investors will be able to easily move their capital and profits overseas.

Raw materials: Lagos is rich in raw materials. Examples of industrial opportunities in the beneficiation of some of the raw materials include:

·  ceramics and tiles (from clay)

·  crude oil and bitumen

·  oil, perfume, cosmetics and soap (from coconut palm)

·  boat building, furniture, paper and pulp (from teak and other woods)

·  starch alcohol and flour (from cassava)

·  surgical gloves (from rubber)

·  flour, beverages and jams (from plantains)

·  soft drinks and stimulants (from kolanut)

·  body creams, lotions and animal feeds (from cocoa)

·  varnishes, jellies and animal feeds (from cashew)

·  yeast and wine (from raffia palm trees)