While researching this topic, I read a book by Frank Gallinelli called “MASTERING REAL ESTATE INVESTMENT”, Published by RealData Inc, 2008. This book has extensive definitions and example problems (with answers) along with real life case studies. This topic is one that requires much knowledge and experience to master, but this book is a quick [...]
What is a Credit Rating? It is a mathematical model which takes all the information reported to the agencies that report your ability to handle credit (basically, how you pay your bills). This mathematical formula then assigns a score to your credit history which gives the potential lender an idea of your credit worthiness. It [...]
Restricts interest rate increases on existing balances.
Credit card issuers cannot raise interest rates on existing balances, EXCEPT:
When the increase varies under a variable interest rate.
At the end of the promised time period for a promotional rate.
If the required minimum payment is not received within 60 days after the due date.
Increases notice for rate increase on future purchases.
After the first year, the card issuer can raise the rate on future purchases with 45 days notice. No notice is required for increases due to one of the reasons stated above.
To start, make sure you have an income which exceeds your expenses. This frees you up to save and invest.
According to Charles Dickens’ David Copperfield, having more income than expenses creates happiness. Misery is having more expenses that income.
Let’s get one thing understood! Credit Cards have been invented by banks to make THEM money – that is the only reason they exist.
A house fits the definition of “Real Property”. There are two types of house properties: the first is the typical one – you are going to live in the house; the second is typical, too but is quite a bit different for your investment portfolio – you are not going to live in the house but you are going to lease it to someone else and they will pay you something to live in the house.
We are going to do an exercise on buying a house you to live in.
(We will be using each of the terms in “PITI”. If you need refreshing, see the previous post.)
Before you start investing and using your nest egg to create a Stream of Income by using the opportunities presented by the Real Estate Market, you will need to embed these basics into your conscious and your sub-conscious.
We continue on our exploration of investment vehicles, going deeper into methods of using the markets to improve your income. We aren’t experts in these methods so this article includes instructions for getting into touch with experts. It also gives basic definitions of terms you will need to know when you meet with those experts.
Investing is a very broad, complicated category. We will attempt simplicity. Investing in its most basic definition is taking your discretionary income and putting it into something or giving it to someone for the purpose of having the “something or someone” make a return on your money. There are many investments and they vary greatly.
You need funds, not skill, education, experience or locale. You do not need to work for anyone to do this. Not much time is required. Just decide how much you can invest, what you want to invest in, and who you trust to make your money grow. Then, you give your disposable income to them, sit back, and watch it grow.