Understanding Economic and Political Systems Across Borders

Your business investment is affected by the type of political system in the country you wish to invest or explore. Before you decide in which country to do business with, you first need to examine the type of economic and political system it operates in. The three major political systems are (1) Capitalism, (2) Communism, and (3) Socialism. Work operations and habits are affected by each system, and your investment will also be affected in several ways that you may or may not like. Therefore, to be sure that you are going to do business in a potential country with acceptable environment without regret, you need to arm yourself with information to guide you through your investment period.

Capitalism:

Capitalism is an economic system that leads to creation of wealth in most of the world. Most of the factors of production [land, labor, capital, entrepreneurship, and knowledge] are privately owned and used as pleased to produce goods and services. In a free market, what to produce and the quantity to produce is dictated by the market. In this market, buyers and sellers negotiate prices for goods and services. In capitalistic countries, consumers directly or indirectly inform producers on; what they want, how many they want, in what form they want it, how they are going to take possession of it, and so on. In such countries, while business owners make decisions on what to produce, how much to charge for products, how much to pay workers, where to produce goods and services, government often interjects to set the minimum wage, and also set standard for environmental safety reasons. Capitalism is what promotes the wealth of developed countries and responsible for their economic stability.

Communism:

Communism is the political system in which the government owns almost 100% of the factors of production, makes all economic decisions, and also encroaches in the life of its citizens. In this type of system, you are restricted on where you should live, when you should travel, whether to change jobs, and what religion to practice. You can now see how far your investment can go in such a system with no freedom. Majority of the time governments do not know what to produce, or how much to produce because the prices are not reflective of demand and supply. Most countries under this system face starvation due to economic depression, and few prefer to build their military instead of creating wealth.

Socialism:

Socialism is an economic system with the premise that most businesses should be under the ownership of the government and that the profits should be distributed evenly among the citizens. Smaller businesses are owned by entrepreneurs, and those business owners are taxed heavily in order to pay for social programs. This system believes in social equality, and that the government should be an agent to distribute the wealth evenly to its citizens. It also believes that wealthier people should pay more through taxation, and that the tax revenue should be redistributed to the poorer people in form of social programs. Some of those social programs are free health care, free education, free food, free child care, and so on. Workers in this system have many employee benefits, receive sick leave, work fewer hours per week, and take longer vacations. There is no motivation to come to work early, work hard, or stay late. A major setback is that most professionals in socialist countries are migrating to capitalistic countries due to high taxation and other non-incentive issues.

Recap:

Understanding countries and their respective economic and political system will help you to put your investment in the right place where it will grow and prosper for the better. Also, focusing on your business goals, and deciding on which countries you are comfortable with, will guide you into accepting a suitable economic system. In all, it all depends on how hard you want to work in order to make the profits you desire, or how lazy you want to be to receive government social programs.

Please, go to [http://www.iba-pec.com] for more information on economic and political system of different countries.

Dr. Sidney Okolo is a professor, mentor, consultant, strategist, and Speaker. He is affiliated to several universities, the Managing Director of International Business Associates, a management consulting firm, and President of Virtual Classrooms Institute, an online education institute. Among other things, he engages in all aspects of learning, knowledge, organization and human change. His focus is on leadership, management, entrepreneurship, profit engineering, human potential, excellence, achievement, business strategy, research and development. In addition to his work in the United States, his focus is also on developing countries in the continent of Africa, their leadership, culture, economic and market structure, community planning and development. He coined the phrase, “AFRICAN PIES”, which stands for: poverty, instability, ethnicity, and sectarianism in Africa.

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Market Determinants – Currency Trading and Business Hedging

In the arena of currency trading and business hedging, there are many aspects we need to discuss as the field itself is a wide jungle of technical jargon and financial terminology that many of you might not readily understand. While the market on currency trading itself is a complicated arena, there are more and more people who are readily shelling out their cash and entering the market to make some money. And that is always a good thing when talking about investment activity – the more there is, the more money there is to be made and with the Forex market being so unforgiving in the first place, the true winners stand out. Now how do most people minimise this risk?

They do so with a process called business hedging and when talking about the FX market, we often come across the turn key hedge funds within the market itself. The has been a renaissance of late of the number of people in the market, and this has been attributed to the recent economic crisis and the fact that more and more people are losing confidence in more traditional markets who seem to be a lot more sensitive to new government sanctions and delayed bail outs. With this increase in number, you, the average trader, are able to launch your own spot currency hedge fund with ease and you can avoid the mounting costs and the large amount of red tape and regulatory misunderstanding that often can with it. As a trader, you will be able to do something of a turnkey into the operating of your very own spot currency hedge fund.

This is where you minimise the risks of your margins by entering into an agreement with the financial institution, bank or brokerage who will then agree to hedge your funds for minimal loss in case of a disaster. The risks are then transported to them, but at a price of course. Currency trading and business hedging sometimes go hand in hand for investors who operate in large amounts of money but this has seen some sort of a downtrend of late, as even the mediocre investor, in terms of amounts invested, has the ability to hedge their funds and secure them against the large risks that this sort of a market has. You need to learn as much as you can amount this methodology of trading and my advice to you is to get your hands on a really good Forex system that covers business hedging within their structure of Forex strategy.

There are so many good system out there and the best place to look for them is in review sites that give non solicited reviews based upon pure merit. That way, you are able to get your hands on either the best possible system out there, or a system that suits you in the first place and with this, you will be well on your way to making good money with currency trading and business hedging as just one of the ways to secure your strategy and tap on an ever growing market.

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A Common Sense Economic and Market Structure Model for Developing Countries

Introduction

For more than thirty years developing countries’ economic problems have created major financial crises in the international community. Developing countries have remained so due to their low-income economies. African and Middle East countries live in ethnic diverse communities and are subject to political instability and corruption than Asia and Latin American countries that live in more homogeneous communities. There is more cost involved in a population of workers and who belong to different ethnic groups because of diversity, cultural differences, religion and language. The purpose of this economic development model is to address economic stability, the problems (value inhibitors), solutions (value drivers), the strategies and implementations of the economic enhancement in order to help the developing countries be less dependent on developed countries. So many studies have been conducted on developing countries, but none of the studies have focused on how the developing countries could apply or use the economic models with less participation of the industrialized countries. World Bank and United Nations ought to examine minutely any potential foreign aid application while focusing on this model for developing countries. This model will enhance in devising a strategic means of monitoring the developing countries before distributing fund to those that may not use the model or practice noncompliance. The practical sense of the use of this model is to elevate the developing countries to economic success and stability, and reduce their dependency on developed countries.

Role of leadership

In developing countries, most leaders behave and think differently. Although, these may not be tolerated by developed countries, they are the norm and are based on their ethnicity, beliefs, religion, culture, social classes, and assumption of supremacy. Negotiating and managing conflicts in developing countries is a matter of understanding the genetic makeup of that country. Diversity may create needs but these needs do not have to be neglected in order to create balance among the ethnic or sectarian groups. A Western countries’ style of negotiating and resolving conflicts may not be applicable in the developing countries where religion and ethnicity have continuously impacted the leadership in those countries. Hence, the inefficient and ineffective leadership have led to social development and economic neglect that have caused the worse economy and poverty in those areas. If politics are set aside and economic benefits are put in the forefront by these developed countries, the chances of conflict resolution will be increased.

Leaders who have vision for change may think about what the impact the economic and market development will have in the long-run, and in the locations and in the life of its citizens. The social problems in Malaysia exist because of the ethnic Chinese who are not Muslim in a country where over 90 percent of the population is Muslim.

In developed countries, situations create focus on civilization and leadership, where civilization shapes leaders and leaders shape civilization. Power is treated as a shared resource, but in most developing countries coercion is the system used by leaders. Leaders use physical, economic, and social threats and punishments to induce change in followers for the sake of the leaders. The leaders therefore have become power wielders. These leadership problems have impacted the economic and market structure of the countries. Hence, a new model may mean a step to a new and better way of life for all the developing countries. The Western part of the Asia continent is predominantly Muslims and still have untapped resources that have not been explored because of dictatorship, politics, religion, culture, beliefs, and diversity. Exploring these countries and helping them stabilize will transcend to trading with other developing countries, which will in turn pull them out of poverty, instability, and create peace among the sectarian and ethnic groups.

Asia

Before the coming of the tsunami in December 26 2005, the South Asian countries were poor and developing. Both the South and East Asia have untapped economic sources. These potential raw materials need to be explored in order to help develop the economic and market structure of the region. The tsunami destroyed the infrastructure, economy, and the lives of the people of the South Asian countries. The 6.3 in magnitude earthquake that hit the central java of Indonesia on May 27, 2006 destroyed what was left of the tsunami. These countries will benefit from cash crop, livestock, and poultry production because of their adequate weather and availability of natural water, which will not require a high technology in order to irrigate the farmland. Mechanized farming will need to be introduced and implemented to aid in maximizing production of agricultural products. The Eastern part of South Korea has a comparative advantage over industrial, commercial, and manufacturing production. Producing and trading on building, automobile, motorcycle, and other petty materials in the form of buying and selling will enhance in the development of the market setting and economy. This will help in the stabilization of the East and South Asian countries. A stable economy will help resolve and manage conflict in these countries that have different ethnic groups and history of diversity. The economic and market structure may also aid in the stability of the leadership, political and social system. The environmental problems may need to be addressed in order to guard against pollution or any unhealthy by products or waste materials that may cause harm to people or have short or long term health problems or may be fatal to people. If these countries are stable, they will attract foreign investments rather than needing foreign aid. The military disturbances in East Timor are not helping the economic and the market structure of the young independent country.

The four factors that determine the economic growth are labor, capital, land, and Entrepreneurship. Developing countries have more labor force with lower wages than developed countries and yet their economic growth is still lower than that of the developed countries. Capital is another problem facing developing countries. They need resources such as equipments, machines, factories, and money to work with. Labor without capital is synonymous to guns without bullets. Capital will also represent an investment that will pay off in the future. Most developing countries have untapped resources such as oil, gold, diamond, minerals, forests, and water that represent land which by themselves cannot stimulate economic growth unless they are explored and converted to goods and services. Technology enhances economic growth. A group of agricultural researchers from Texas A&M University and University of California-Davis acquired a four-year grand of $4.4 million from U.S Agency for International Development’s Mission to Afghanistan eGrazing. This discovery will aid the livestock herders to successfully tend to cattle, sheep, horses and goats. If this system had been in place, it may have made an impact during the tsunami in Indonesia. Political and social factors that inhibit Economic Growth are corruption, instability, lack of leadership and administrative skills, population growth, and lack of business enterprises.

Africa

African countries are very poor and in dare need of economic and market structure development. Before these countries go global, they may to have sufficient needs of life by taking comparative advantage of their sources of raw material. Some have cash crops that need to be irrigated, some have livestock and poultry that need to be technologically upgraded, and market structure that needs to be redesigned, developed and implemented. The improvement of the agriculture will help the poor farmers send their children to school, build infrastructure, develop the quality of institutions, and make a smooth run of transportation.

Middle East

Middle East region is a turbulence area because of instability associated with religion, oil, dictatorship, and developed countries’ influence. The Iraq war has devastated the whole region, and couple with the Israel, Palestinian, and Lebanese conflict, which has created further economic drawbacks that amount in billions of dollars. The destruction of the infrastructures, and the lost of lives have sent the economy of Lebanese country decades backwards.

Latin America

Development in Latin Americans countries could stem from agriculture, forestry and fishing, to mining, and manufacturing. These Latinos can help in building their countries rather than trying to immigrate to United States of America. If guided, they will improve their countries’ economy and help in the marketing of agricultural, manufacturing and other natural resources. Immigrants spend much time in the state of California farms, Illinois factories, North Carolina, and areas in the north east of United States of America working mostly in food industries. These efforts can be redirected to Latin America in order to develop the entire area.

Political struggles, lack of administrative skills, and power supremacy have strangled the economic and market structure of most countries in Latin America. For decades the Latinos have traveled north of the border to United States of America in search of better lives. This economic situation has resulted in the deaths and mutilations of people trying to enter United States of America. The smugglers who are known as the “coyotes” have made huge profits for attempting to transport these illegal Latinos across the border. It is very dangerous ventures because of the hot temperature, train transportation, unhygienic felt, bad weather, lack of food, water, and other unknown dangers along the road to the border. Immigrants spend months traveling to the border and most times do not make it to United States because they are caught and send back south of the border. Most gang groups have resorted to kidnapping wealthy Latin Americans living in the United States side of the border for huge ransoms, demand thousands of dollars in exchange to the kidnapped victims and most of the times these victims are killed. Families are separated due to fractured economy when men live their families for years in search of money for food in the north of the border. Income is not redistributed to the population, the rich gets richer while the poor gets poorer. The people of Latin Americas deserve more from their leaders and their natural resources, which has not happened because of corruptions and drug kingpins who have operated by intimidation, coercion, and fear.

The Four “Pies” facing developing countries

Poverty stems from lack of education, opportunities, and low literacy level. These countries do not put too much emphasis in education as they resort to marrying more than one wife and having too many children. Farming and herding have been their main source of food production and livelihood. Ethnicity is attributed to too many tribes, languages, and dialects. It has also contributed to lack of trust amongst different ethnic groups due to lack of understanding each other’s culture and tradition. They have become one country but different people. Instability is created by lack of a stable government by corrupted leaders, who always come to power for the purpose of stealing funds. That ultimately leads to no mandate to build infrastructure, and develop the economy and market for the country. When people’s needs are not met, most of the times in developing countries, rebellion begins when the government neglects a certain group of people. When people are deprived of the necessities of life while the other group has it all because of their ethnicity and religious sect, it creates tensions that lead to a “time-bomb” ready to explode. These most times cause conflicts that are attributed to hatred, sabotage, riots, revolution, and deaths. This is common in the developing countries where corruption and venality have played a role due to self-centeredness on the part of the leaders. Leaders therefore resort to intimidation of their citizens and thereby control these countries by coercion.

17 Strategies for implementing economic and market structure in developing countries

(1)A comprehensive education across the country needs to be instituted. This may be in the local dialect and language in order to make it easy for the citizens of that area. Assessment test of individuals’ talent and abilities need to be explored, recognized and documented to be sure where these individuals’ maximum potentials lie. A program needs to be instituted in order to teach the citizens methods of family planning and birth control. Individuals also need to understand the social and economic benefit of the birth control.

(2)Some individuals may have ability in agricultural work (Crops/livestock/Poultry). Locations with fertile lands need to be located and utilized for crops and livestock, and those areas without fertile land may need to be used based on its comparative advantage, such as poultry, storage of byproducts, and market areas.

(3)Supermarkets are to be constructed in all densely populated locations or urban cities to enable the young men and women find and keep jobs. The stores will consist of three shifts so that students can work and at the same time go to school and do their schoolwork. These markets will be located in the areas where people can afford to shop. A Wal-mart (USA) approach will be most appropriate in these locations. The four utilities of market will have to be considered and instituted as the main reason for the location of the supermarkets.

(4)Consideration of the product that people will want, the price to set for the product, the place that will be appropriate for the supermarkets and their nearness to the people, and how the promotion of the product will be conducted in order to reach the consumers and customers.

(5)The nomadic approach of rearing, transporting, and selling livestock will be changed to using trucks to transport them if it involves long distance in order to avoid spreading of any diseases such as mad cow disease and other diseases that come from livestock feces as they are transported though out the country. Trading locations where buyers and sellers meet, and the days to meet are to be established in both rural and urban areas.

(6)Areas where people still live in poverty, a trade by barter may be established so as to allow the farmers who want to exchange items from their farms to bargain for exchange. This short-run method will continue until the economic development is in place and running.

(7)Foreign investment and property rights need to be considered as part of encouraging investments and savings in order to stimulate the economic growth. This method may help the developing countries to invest less money on capital goods, create more competitive markets, and in turns reduce or eliminate corruption.

(8)Establish local leaders by ethnicity, who will act as representatives or middlemen between the government and their ethnic group. These local leaders may be selected by group they represent and approved by the government to ensure they are working on behalf of the people they represent and not for their own self-interest. In addition, the African experts may be contracted to help establish the boundaries of no corruption.

(9)Individuals have certain religious beliefs and different ways of thinking, and as such need to be segregated according to their sect for the benefit of market structure and economic development. Individuals who understand that certain groups have designated times in which they pray will have no problem doing business with such groups. This may reduce tensions for those who understand the culture of those religious group, and for those, who do not there will be tensions and uneasiness, which is the reason for grouping citizens according to their religious sect.

(10)Government need to institute “watch dog groups” in order to police the programs and to make certain that the programs are in place and running. A 3-year trial needs to be established for any program of economic and market structure that is implemented for these countries. This is enough time to evaluate the program in place in order to ensure its workability. Experts in Africa need to be involved in all phases of implementation in order to combat corruption and promote stability.

(11)Poverty may be reduced if adequate and stable structure for economy and market is established, and the government leaders via the local leaders address all citizen’s problems. The essential necessities — housing, clothing and food – may be the top priorities for these countries in order to reduce the poverty.

(12)Professionals and skilled workers are to be encouraged through issuance of incentives in order to motivate them to stay and reside in these developing countries and help in the development of these countries rather than leaving for developed countries. Mass exodus from these developing countries only harms and delays the development of these countries.

(13)Construction of infrastructure such as roads, buildings, and bridges are important for the economic and market structure of developing countries. Food products and other necessities of life can be transported to their respective destinations as quickly as they are needed when good infrastructure is in place. It may also encourage in foreign investments. Investors will prefer to invest in stable countries to unstable countries.

(14)Construction and installation of adequate running water in developing countries and to all parts of the countries also will help in building stable economic and market structure. It will help in curtailing diseases such as typhoid’s and malaria that usually come from unclean water. It will also help the children to focus in education and literacy programs rather than traveling miles upon miles to fetch water from the streams and wells. Some of these children die in taking these water-fetching adventures.

(15)Installation of electrical system may help in the growth of communities. Businesses cannot operate adequately where electricity is lacking. As such, these countries will require electricity in all areas of the countries as a form of economic development and market structure in order to help businesses function and grow, help in the food storage, and eradicate waste of food products that would otherwise be stored safely in cold rooms and refrigeration.

(16)Social Organizations need to be introduced to help the poor get out of poverty, and give them the opportunity to operate their own small businesses. This type of organizations are set up by the government as not-for-profit organizations, and the purpose is to develop the people’s business skills and issue them interest free start-ups loans to enable them manage their own businesses, which in turn lead them to poverty free. They will guided them to the type of businesses to open, how to open them, where to open them, and why they should open those kinds of businesses.

(17)The potential goals may be achieved by enforcing the use of this model as a condition of receiving funding or foreign aid. As a way to check and ensure that monies do go to what they are intended for, developing countries pledge to use and implement this model. This model will check and police the development of the projects. The intention of this requirement is not to discriminate against developing countries, but to help the citizens of those countries as they have no way of benefiting from these funding and foreign aid that usually end up abused, misdirected, and misused for other personal and private purposes by the leaders due to corruption and venality.

Who Are the Developing Countries

World Bank defined developing countries as those with low-income economies with per capita incomes of $755 or less. World Bank is an International Organization that categorizes such countries as developing countries and also issues loans to them.

Dr. Sidney Okolo is a professor, consultant, strategist, and Africa expert. He is affiliated to several universities and the Managing Director of International Business Associates, a management consulting firm, and also the President of Virtual Classrooms Institute, an online education solution.

Among other things, he engages in all aspects of learning, knowledge, organization and human change. His focus is on leadership, management, entrepreneurship, profit engineering, human potential, excellence, achievement, business strategy, research and development. Product management, change management, conflict management, athlete management, marketing, business development and operations. He works with clients to adapt to change due to change in factors of production, technology, goods and services. He engages clients in training, retraining, development, skills enhancement, association, behavior modification, ways of thinking, and attitude adjustment. In addition to his work in the United States of America, his focus is also on developing countries in the continent of Africa, their leadership, culture, economic and market structure, community planning and development, and he coined the phrase; “AFRICAN PIES”, which stands for: poverty, instability, ethnicity, and sectarianism in Africa.

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Market Determinants – Currency Trading and Business Hedging

In the arena of currency trading and business hedging, there are many aspects we need to discuss as the field itself is a wide jungle of technical jargon and financial terminology that many of you might not readily understand. While the market on currency trading itself is a complicated arena, there are more and more people who are readily shelling out their cash and entering the market to make some money. And that is always a good thing when talking about investment activity – the more there is, the more money there is to be made and with the Forex market being so unforgiving in the first place, the true winners stand out. Now how do most people minimise this risk?

They do so with a process called business hedging and when talking about the FX market, we often come across the turn key hedge funds within the market itself. The has been a renaissance of late of the number of people in the market, and this has been attributed to the recent economic crisis and the fact that more and more people are losing confidence in more traditional markets who seem to be a lot more sensitive to new government sanctions and delayed bail outs. With this increase in number, you, the average trader, are able to launch your own spot currency hedge fund with ease and you can avoid the mounting costs and the large amount of red tape and regulatory misunderstanding that often can with it. As a trader, you will be able to do something of a turnkey into the operating of your very own spot currency hedge fund.

This is where you minimise the risks of your margins by entering into an agreement with the financial institution, bank or brokerage who will then agree to hedge your funds for minimal loss in case of a disaster. The risks are then transported to them, but at a price of course. Currency trading and business hedging sometimes go hand in hand for investors who operate in large amounts of money but this has seen some sort of a downtrend of late, as even the mediocre investor, in terms of amounts invested, has the ability to hedge their funds and secure them against the large risks that this sort of a market has. You need to learn as much as you can amount this methodology of trading and my advice to you is to get your hands on a really good Forex system that covers business hedging within their structure of Forex strategy.

There are so many good system out there and the best place to look for them is in review sites that give non solicited reviews based upon pure merit. That way, you are able to get your hands on either the best possible system out there, or a system that suits you in the first place and with this, you will be well on your way to making good money with currency trading and business hedging as just one of the ways to secure your strategy and tap on an ever growing market.

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Why Prices and Business Costs Will Still Be High Despite Economic Recovery

The announcement of the anticipated economic recovery and business growth has raised expectations. This will evidently address business related issues and challenges in the world market. But it is important to understand that some of the envisaged advantages, especially pricing and the cost of doing business may not happen overnight. America is the only country which is expected to declare the path of recovery; this of course will have the greatest impact on Barrack Obama’s administration. Very soon, the whole world should experience revival; ultimately and hopefully, pricing will be driven by competition.

You would have to make a holistic assessment of the effects of global recession and the current status of the world business so as to come up with a conclusive account of the expected business trends in a few weeks. This goes beyond a mere declaration of an end to the global economic crisis. Have in mind that a simple assertion of recovery does not end the recession.

First, in order to bring down costs, we have to focus on the current charge of doing business. The business operating costs is a puzzle that can only be solved by putting in to consideration many other factors. We must look into the cost of oil and oil products, government taxation rates and other relevant factors that result in increased prices.

Secondly, it is common knowledge that businesses were experiencing minimal profits and sometimes losses. This is therefore their time to recover all that they had lost. It means that many businessmen/woman may not be in a hurry to reduce prices since they are still trying to make up for what they lost previously.

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Advantages of Real Estate Investing

Investing in real estate is as advantageous and as attractive as investing in the stock market. I would say it has three times more prospects of making money than any other business. But, But, But… since, it is equally guided by the market forces; you cannot undermine the constant risks involved in the real estate. Let me begin discussing with you the advantages of real estate investments. I found the advantages as most suited and really practical.

Advantages

Real Estate Investments are Less Risky

As compared to other investments, less of misadventure is involved in a real estate property. I will not get away from the fact that just like any investment you make; you have the risk of losing it. Real estate investments are traditionally considered a stable and rich gainer, provided if one takes it seriously and with full sagacity. The reasons for the real estate investments becoming less risky adventure primarily relate to various socio-economic factors, location, market behavior, the population density of an area; mortgage interest rate stability; good history of land appreciation, less of inflation and many more. As a rule of thumb, if you have a geographical area where there are plenty of resources available and low stable mortgage rates, you have good reason for investing in the real estate market of such a region. On the contrary, if you have the condo in a place, which is burgeoning under the high inflation, it is far-fetched to even think of investing in its real estate market.

No Need for Huge Starting Capital

A real estate property in Canada can be procured for an initial amount as low as $8,000 to $ 15,000, and the remaining amount can be taken on holding the property as security. This is what you call High Ratio Financing. If you don’t have the idea as to how it works, then let me explain you with the help of an example. Remember that saying… Examples are better than percepts!

Supposing, you buy a condo worth $200,000, then you have to just pay the initial capital amount say 10% of $200,000. The remaining amount (which is 90%) can be financed, against your condo. It means that in a High Ratio financing, the ratio between the debt (here in the example it is 90% Mortgage) and the equity (here in the example it is 10% down payment) is very high. It is also important to calculate high ratio mortgage insurance with the help of Canada Mortgage and Housing Corporation (CMHC). If needed, you can also purchase the condo on 100% mortgage price.

Honing Investment Skills

A real estate investment, especially when you buy a condo for yourself, will be a pleasurable learning experience. It gives you the opportunity to learn and when I went ahead with my first real estate property, I was totally a dump man. Ask me now, and I can tell you everything, from A to Z. Necessity is the mother of all inventions. I had the necessity to buy the property and so I tried with it, and I was successful. I acquired all the knowledge and skills through experience of selling and purchasing the residential property. Thanks to my job. It gave me the experience to become an investor.

Not a time taking Adventure

Real estate investment will not take out all your energies, until you are prepared and foresighted to take the adventure in full swing. You can save hell lot of time, if you are vigilant enough to know the techniques of making a judicious investment in the right time and when there are good market conditions prevailing at that point of time.

You should be prepared to time yourself. Take some time out, and do market research. Initiate small adventures that involve negotiating real estate deals, buying a property, managing it and then selling it off. Calculate the time invested in your real estate negotiation. If the time was less than the optimum time, you have done it right. And if you end up investing more time, then you need to work it out again, and make some real correction for consummating next deals. You have various ways and methodologies, called the Real Estate Strategies that can make it happen for you in the right manner.

Leverage is the Right Way

The concept of leverage in real estate is not a new one. It implies investing a part of your money and borrowing the rest from other sources, like banks, investment companies, finance companies, or other people’s money (OPM). There have been many instances where people have become rich by practically applying OPM Leverage Principal. As I had discussed under the sub head – No Need for Huge Starting Capital, the high ratio financing scheme gives an opportunity of no risk to the lenders, as the property becomes the security. Moreover, in case the lender is interested in selling the property, the net proceeds resulting from the sale of the property should comfortably cover the mortgage amount.

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Real Estate Leads For Realtors

Because real estate prices have dropped quite a bit, the potential commissions that real estate agents and brokers could earn have also dropped. But the drop in commissions can be more than offset by the amount of properties that can be sold. And getting quality real estate leads is one of the keys to making this a reality for real estate professionals. This is because there are so many more properties on the market now than there were before the bubble burst.

The rise in the number of homeowners who are underwater on their mortgages has increased so much that a very large number of them have decided that they cannot afford to stay in their homes. They would rather sell their home and buy a comparable home for a much lower price, and take the loss so that they can improve their cash flow situation by having a lower mortgage payment each month. And since there is no shortage of properties to buy, these people had no problem finding a suitable home for a good price.

And another result of the rise in available properties is that more and more people are becoming first-time homeowners. Since prices on homes are falling, more and more people are able to afford a home for the same amount they are currently paying in rent. So the logical choice for these people is to buy a house rather than continuing to rent.

These factors all lead to one thing – a higher need for real estate agents to help the buying and selling of all of these properties. Therefore, even though prices have fallen, the quantity of available properties, buyers, and sellers has raised which more than makes up for the lower prices in terms of how much a given real estate agent could make in the current real estate market. And as we all know, the more clients a real estate agent has, the more properties they’ll sell and the more money they’ll make.

The problem comes in when a real estate agent has already gone through their current client list. The best way for them to get more clients is to somehow obtain more real estate leads. Not only do they need more leads, they need high quality leads if they are going to be successful in converting a high number of them into clients who actually follow through on buying and/or selling one or more properties.

So how can you get more real estate leads? There are of course many different ways. These include buying them from an agency that offers them, advertising, subscribing to lead generation websites, developing and keeping current your own real estate website that draws potential

clients to it, and best of all by getting them through your own network. There are undoubtedly other ways of generating real estate leads as well, but these are the most common methods – all of which have proven to work to a certain degree.

One of the easiest ways to get real estate leads is by purchasing them. There are companies whose sole purpose is to find people who want to buy or sell a property. They then sell this information to people who are willing to pay for it. So if you are a real estate agent looking for real estate leads and either don’t have the time to find your own, or simply don’t want to, then this may be a good option for you.

There are two different major ways to do this. You can purchase the real estate leads from a company as a set of data that you will get in the form of a list or spreadsheet. Then you will need to start sifting through them and using the data available to qualify and categorize them yourself. And after that, it’s time to start making calls to find out they are valid leads or not.

The other way of purchasing real estate leads is by subscribing to a real estate lead generator website that will send you much smaller lists of leads on a regular basis. This can be nice because the information is likely to be much more current than buying a single very large list of leads. But this also means that there are fewer to work with so it doesn’t give you as much freedom in terms of choosing who to contact first.

Purchasing real estate leads or subscribing to a lead generation website can also be expensive. This can be a very bad thing since the whole intent of buying leads is to find clients, sell properties, and make commissions, if the leads that you buy don’t turn into commissions. In that case, not only did you not sell any properties (or many properties), but you wasted money on worthless information, and you wasted time contacting worthless leads when you could have been working on finding good real estate leads instead.

Another way to generate real estate leads is by advertising. If you are a real estate agent, broker, or business person, advertising your services may be a good way to generate real estate leads. This type of lead generation is great because rather than you doing the work to find people who want to buy or sell a property, the tables are turned and they come looking for you instead.

In addition to having people try to find you instead of you trying to find them, there is another benefit to advertising to generate real estate leads. The people who are trying to find you are already definitely interested in buying or selling a property. This means that you don’t have to worry about whether they are going to turn out to be qualified leads or not, because they definitely will be.

A similar way to generate real estate leads by advertising which can be even more effective than simply advertising on a billboard or in the paper is by setting up your own real estate website. Websites are surprisingly inexpensive to have hosted, and having one developed for you doesn’t have to be expensive either. And if you learn the basics of website development, you’ll be able to maintain it by yourself after it’s been set up so that you can always keep it current.

The reasons to keep your website current cannot be understated. First, you have to keep it updated with the properties you are trying to sell so that the people who visit your website will have something to look at – and since this list of properties will be changing frequently as your client list grows and changes, you’ll need to change your website often to incorporate the new properties and eliminate the ones that are no longer available.

A second reason for keeping your website updated on a regular basis your page rank will grow higher. Search engines use a number of factors to determine how relevant they are to certain keywords, and where to display them in a list of search results. And one of the biggest things that moves a website toward the top of the list is it’s page rank, which is greatly affected by how active and how current the website is. So the more often you update your website, the higher its page rank will be, the higher it’ll show up in search results related to real estate keywords, and the more visitors you’ll get to your site.

Once you get visitors to your site, you’ll be getting the exposure you want to potential clients for free. They can stay on your site for as long as they want to and look at as few or as many properties as they want to. And you don’t have to do anything in order to help them. In fact there could be thousands of people all on your website at the same time. That is something that you would not likely ever have the opportunity to do in person. This phenomenon is what is known as leverage, and leverage is what can turn a small business into a fortune 500 business in short order when managed correctly.

The best way to do real estate lead generation also happens to be one of the most difficult – at least in the beginning. The method of finding leads is by building a very large network, and using it. This is one of the best ways to get leads because it is one of the most surprisingly effective ways. But unfortunately, it’s also one of the more difficult ways to start, and takes a while to yield significant results.

The first thing you’ll need to do is to start building your network. And it’s not that you just need to start building it, you need to intentionally focus on building your network each end every day, no matter where you are or who you’re talking to. This is because for most people, networking does not come naturally.

If you are like most people, you are probably somewhat shy and don’t make it a point to intentionally meet and talk to new people on a regular basis. But if you want to build a network, you’ll have to do exactly that. This is something that can come as a challenge to say the least, both emotionally and technically, but it is well worth the effort in the long run.

It can be emotionally difficult because a large part of building a large network is dealing with rejection. And if you want to build a large network quickly, you’ll have to deal with a lot of rejection each and every day. Too many people, being rejected is taken personally and it ends up wearing them down so that they eventually give up before they gain the benefits that building a large network provides. But if you can learn how to not take rejection personally, you’ll succeed where so many others have given up and failed as a result.

And networking to generate real estate leads can be done almost anywhere. When you need to put some gas in your car, park on the other side of the pump from someone who’s already there and try to strike up a conversation where you’ll be able to tell them that you’re in the real estate business and can help them or anyone else they know who may be looking to buy or sell. And if you’re really serious about it, you may want to only get $10 or some other small amount of gas at a time so that you’ll need to go to the gas station more often and have more opportunities to network.

You can also build your network by meeting new people at any other place. You could talk to someone at the grocery store, library, church, waiting in line at the bank, or anywhere you are around other people for more than a few minutes at a time and starting a conversation wouldn’t be too awkward. It can be done anywhere, with just about anyone, at almost any time. And the more dedicated you are to it, the faster you’ll be able to grow your network and the better off you’ll be in the long run.

Some of the best ways to network are by talking to the people you already know. These are people who are already in your network, and you can use them to help you grow your network even larger. The most obvious way is to simply ask them if they are interested in buying or selling a property in the near future, and to keep you in mind if they are.

But another way to help you grow your network is to ask them who they know that may be interested in buying or selling a property. You are basically asking them for real estate leads using different words. You could ask them for the names and numbers of people who they know who may be interested in buying or selling a property, or you could ask them to give your contact information to the people they have in mind when you ask them that question.

It’s a great idea to have business cards with your contact information made up when you’re networking. That way you won’t have to rely on people’s memories which are definitely not the most reliable things when compared to something they can simply read from a card. Cards on the other hand make it so that the person you are giving your contact information to doesn’t have to rely on their memory, and it puts forth a more professional image as well which can only benefit you.

Real estate values have taken a dive and one of the results has led to there being many, many more properties on the market now compared to before the economy took a dive in 2008. This means that even though the prices are lower, the higher quantity of properties on the market make it possible to buy and sell more of them and make more money in commissions as a result which will more than make up for the decreased individual property values.

I order to sell more properties you must have more clients. And to get more clients, you need to have more real estate leads. These real estate leads can be generated in a variety of different ways, all of which can be useful to real estate professionals. Having reliable leads will definitely result in more clients, more sales, and more money made in commissions. Purchasing them, advertising for them, or getting them from your network is all great ways go get leads that all have their own strengths and weaknesses. Pick the one that will work best for you, and you’ll be on your way to making more money through real estate in less time that you think.

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