I will continue to take a hiatus from this blog and crowdCONNX as I focus more fully on writing my second book, The Walls Have Painted Eyes: The Story of the Mural Artworks of Michelle Loughery Building Connections within Communities and People.
In the mean time I hope you all find meaning and purpose in your life, read good books often and takes steps to secure your finances. I know I will be.
With that in mind I recommend Tony Robbin’s Money Master the Game: 7 Simple Steps to Financial Freedom. I am half way through it, have received a wake up call and loads of inspiration and advice from the masters themselves. You can also take my advice and invest in real estate as I have, plus support me on my journey but purchasing a copy of my first book The Bartender is Your Landlord: Why the Wealthy Elite Invest in Real Estate and How Anyone can Join Their Ranks.
Take care of yourselves,
One of the key components of long-term investing is finding strong companies that will have a consistent dependable growth pattern. Proper value investments can be achieved through financial statement analysis of stock(s) you are interested in investing in. Income statement The income statement or profit and loss statement provides details of a companies revenue and…
via Financial Statement Analysis For Successful Investment — Simplistic success
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Coverage Ratio is always my favourite indicator for the health of a possible real estate investment property. There are two main reasons for this.
The first is a good coverage ratio shows that the property’s income is enough to both cover it’s historical and projected expenses as well as the mortgage (principal and interest payments) without the investor having to fork out more of his or her own money.
The second reason is that the bank or mortgage broker looks at the coverage ratio as one their primary guides for loaning applications. They will of course look at you and your financial strength as well. You can seriously improve your chances of receiving your loan at the most favourable rate if you arrive with your numbers in hand with a beyond satisfactory cover ratio worked out in advance. This small exercise will set you miles apart from the average real estate investor that sits before them.
So what is a coverage ratio? Coverage ratio is your net income (income after all bills are paid) divided by your total debt services (mortgage interest plus principal). So if your net income was $1000 and your total debt services was $800 you would have 1000/800=1.25 or a coverage ratio of 1.25.
Today banks and mortgage brokers are typically looking for 1.2 to 1.3. I recommend you go in with something much higher. At least 1.5 if possible.
You can find a 7 step guide to real estate investing on our company site www.skopikinvestments.com which highlights the various steps we recommend you take. You can also check out my book The Bartender is Your Landlord: Why the Wealthy Elite Invest in Real Estate and How Anyone Can Join Their Ranks for reasons why I think everyone should and can invest invest in real estate.
Financial literacy month has come and gone but that doesn’t mean the financial fight is over. I know I speak about personal finances but if I don’t who will? Too many times individuals build up to that one TAX day that’s it. In reality all year round is the time to to keep your financial wallets ‘in check’ […]