Whether you’re just starting a business plan or you’re already coming up with new ideas to grow your business, financial instability may always be a struggle. It’s not every day that you get support from people around you, especially if money is involved. Great ideas can go unheard or unfulfilled for many reasons, which is why you many need to look for other sources for your funds. Some businesses look for investors to sit on their board of directors and invest in their company, some look into banks or lenders to acquire a loan for their funding, and others look into crowdfunding.
Crowdfunding is the process of sharing your business/project ideas to the public with the goal of getting some support. You discuss your idea with people who could possibly be interested and willing to give small dollar contributions. The more people you get to believe in your project, the more support you get and the larger amount of money you raise.
This can be done in various ways. One of which is through rewards. You market your business idea online and offer rewards to your backers in return. The rewards can come in various shapes and sizes. They can include a personalized gift, a certificate, or any material memorabilia. Or, they can also come in the form of discount coupons, bragging rights, and such.
Crowdfunding can also be done based on equity. It’s quite similar to investments but it has a unique set of rules and terms. Backers can be offered equity stake in your business in exchange for the amount that they will give to your business as support. And, like many other investors, they would expect this investment to grow over time with the business. Or, it can be lending-based where backers lend the funds to put your business ideas into fulfillment but they expect the exact amount of the investment in return after a certain period of time.
These are only some of many ways crowdfunding can be practiced to help you collect funding for your business ideas. As long as your ideas are worthy and feasible, you’ll never lose support.
Tortoise or Hare? Why Buying and Holding Real Estate Makes for a Winning Strategy.
Buying and holding Real Estate is a long-term approach to real estate investment. Instead of flipping for a quick lump sum, you’ll hold on to your investment and use the rental market to earn a regular income.
There are heaps of benefits for investors who choose to hold onto their property portfolio. Flipping houses can be lucrative but risky. If you’re unlucky enough to hit a dip in the market you could be left with the dilemma of either selling for reduced profit or paying off a high-interest loan until the market improves.
Buy and hold also involves fewer transactions – and the cost is spread over a longer period of time. It’s also good news on the taxation front. Not only can the tax paid on long-term capital gains be lower but might only be due if you sell the property.
Properties that need maintenance, reconfiguring or repairs create value from the get-go– your work has just increased its asking price. Your investment needs to start paying, so get the property ready for the rental market as soon as possible.
The highest rent you can achieve isn’t always the best strategy – go for a low but regular turnover, so you’re not constantly on the lookout for new tenants.
So why should you go with buying and holding real estate? Hanging on to your investment makes the most of long-term market stability and gives a good rate of return. Flipping might sound exciting but playing the long game can give you a solid financial income – without losing sleep.
The Benefits You Should Look Forward – with Buy and Hold Real Estate
A buy and hold real estate strategy is one of the most effective ways of quickly establishing regular cash flow. There is a number of ways you can go about dealing with real estate. It’s important for you as an investor to weigh your options.
Rest assured, you will come to realize that using the buy and hold strategy in real estate is a great option. If you still are not convinced, here are a few benefits:
Generally, the price of land only appreciates. This means that as an investor, your equity will increase exponentially over the time you hold the property.
You have to keep in mind that not all investments are going to work the same way. Some will offer the potential for equity appreciation or a consistent return, but in the case of real estate, it offers both.
The latest findings have shown that the average annuity pays out no more than 3% per year, but an investor who makes even a half decent buy and holds investment can beat these rates any day.
Depreciation Is Not Necessarily a Bad Thing
Most people are not aware that the IRS writes off any property that is more than 27.5 years old. Depreciation is not exactly an income and is referred to as a liability.
Depreciation is only an expense on paper. The costs of keeping a property in good condition can be paid out of the rent earned. This actually leads to the elimination of tax obligations due to ‘losses’ on the positive cash flow from the real estate property.
These are 3 of the benefits of buy and hold real estate.