Real Estate Expert Luke Thomas (from Sol Mar REI) Discusses Real Estate Success – (New York Radio Interview)
Luke Thomas – a real estate business expert (from Sol Mar REI) describes the ins and outs of the real estate markets, how he got started and what it takes to be successful in the industry. Hosted as a special guest on a New York radio, he explains the lucrative side of the real estate industry.
He also shares his professional background that spans several decades of knowledge and diverse experience: http://www.solmarrei.com/real-estate-expert-luke-thomas-from-sol-mar-rei-discusses-real-estate-success-new-york-radio-interview/
Repairing the Essentials: Too many people try to fix something that ain’t broken. Look around and try to repair only what needs to be repaired. It’s not just for the sake of comfort in your home but also to maintain a higher resale value of your assets so you don’t have to take a dive when it comes time to selling your home. Fixing things in advance before anything major happens will certainly decrease the cost of repair in the long run. Basically, there is a difference between getting a bio-metric scanner for your front door as opposed to fixing that darn drippin’ faucet in the kitchen.
Saving More on Utilities: This one is self-explanatory, yet not everyone obeys these simple rules that will reduce your cost of living. For instance, simply turning off the lights or any electric appliances when you don’t need them or not wasting too much water would go a long way. Same goes for the air-conditioning resources. Make sure you make it a point to turn on the cooler & heater upon demand. If it happens to be such that the weather outside is fairly comfy, then you can always open up the windows (assuming the air outside is not too polluted). Also, running your dishwasher and laundry at certain less busy times of the day would tend to help minimize your electric bill. A smart homeowner will always look for ways to save…
Achieving Optimal Capacity: This tactic-resolution can actually create for more ideal living conditions being determined by how many residents are living there vs how many are actually paying any rent. When it comes to logic, usually, two opposite extremes are always wrong. In one extreme case, you may have a home that’s filled with kids and pets with no room to breathe as you’re struggling to make your next payments. And the other extreme could be settling into a home that’s WAY too big for you and your family thus making you experience the “sunk-cost” fallacy, meaning that you’d be pumping money & resources into a house capacity that will be devouring your mortgage that could’ve gone toward something more cost-worthy like a college fund or a vacation budget or even retirement or other non-volatile investments.
Refinancing the Mortgage: It’s no surprise so many homeowners aren’t taking advantage of refinancing methods, considering how convoluted and complex the mortgage terms can be. As a general rule, it always helps to be knowledgeable about what kind of a loan-arrangement you have. If your income changes or if you start a family or if the banks all of a sudden raise the interest rates, you should definitely consider refinancing your mortgage-loan or else you may risk defaulting on your credit-loan thereby compromising your credit score and your lifestyle. Under a fixed interest rate, it becomes more predictable and more manageable unlike the variable rates that can potentially mess up your financing. Another practice is to choose a banking/financial entity that’s more altruistic and supportive of their clients. Better yet, they’ll keep you informed about the latest tips & tricks along with policies & regulations that can work in your advantage.
Dec 29, 2014 - Yuri Sire – Content Manager / Blogger
First, there is a golden rule in finance to never spend more than what you’re making. Always monitor your expenses and earnings in a balance way. Personal accounting can be quite tedious yet there is always special software or special consultants to help you with your financial goals. Keep in mind the debt-to-equity ratio, which means that your amount of debt/liabilities cannot exceed the assets/equity you own.
Wait until you have built sufficient equity-collateral before you consider taking on big loans for a home, business or that fancy car. Essentially, your income level would have to be high enough to accommodate for your lifestyle choices.
Don’t trust the “fast cash” schemes as many of them charge astronomical interest rates that can make you fall deeper into debt. Whenever you can, always try to use professional opinion from a credible/knowledgeable source. Deal only with reputable firms that would not shaft you and your finances. Do your due diligence and become knowledgeable about how to manage your finances yourself. It also helps to know your consumer rights when it comes to dealing with credit and loans…
Try to invest only in those securities that provide a positive yield on your investment. Before you calculate the marginal gains, you need understand the economic concepts of marginal propensity. These are special laws of tendency that sway you into either high or low financial risks. A golden rule is to minimize the risk while maximizing the pay-off returns. You can also invest in non-risky commodities or certain ventures that you wish to launch for which you absolutely know there is going to be a high demand.
If you’re a student, make sure you’re proactively resourceful in how you obtain your financing. Get as much as possible from scholarships, grants and family college funds. This will drastically reduce the amount of loans you have to take on. It’s been said the interest rates from some of those loans encumbered many students to declare bankruptcy. Choosing a profession like a Medical Doctor can make you rack up too much student debt too fast. So be prepared for what comes with the territory. It’s been said that luck happens when preparation meets opportunity.
If you’re a homeowner, always have a short-term AND a long-term plan on how you’d be financing your housing. Buying when home prices are low and selling when the home value is still high would be a smart move. This is where income leverage plays a major role. In addition to securing your financial independence, you’d have to think about those terms that you’d be negotiating with the bank or your landlord or any co-paying party. Always have a sufficient savings cushion in the bank in case there comes a dark day when you need to tap into your ‘reserves’. This includes things like unemployment or sudden medical expenses… For those who like living the high life, be modest about your spendings without flaunting nor competing with others for status; it’s always much easier to spend money than to earn it. Living lavishly when you cannot afford it is among the easiest ways to go bankrupt. Living with a spouse, roommates or parents can significantly reduce your chances of taking financial risks that can lead to a zero balance in the bank. This is called financial leverage.
If you choose to have children, please, do so AFTER you will have taken care of your career goals that would provide for an adequate financial support. Raising kids can be very expensive and is a sure way to hell if you don’t do any financial planning. And for goodness sake, don’t ever get too many credit cards; it may create an illusion of having lots of extra money but that’s not really the case. The credit card balance acts like a small loan that you have to pay off. Keep your credit score at a higher level to avoid bigger interest rates and ALWAYS pay off everything on time!
Dec 22, 2014 - Yuri Sire – Content Manager / Blogger