How come the minority of investors is almost always making profit and sees amazing returns on their investment while the majority of investors are losing money and seeing the value of their investment decline most of the time? Although there is no secret rule or magic formula for guaranteed profit, there are some tips for (beginning) investors that the most successful investors in the world apply and receive immense earnings from it.Each stock market tip below helps you to make profit, minimize risks and make investing as simple as possible. It is highly recommended that you read them carefully and apply them.Trade as less as possible: Pick your investments well and you will reap the great rewards of compound interest over the long-term. Buying and selling stocks to often will result in high fees that will only make your stock broker richer.Find stocks with a high potential for growth: Try to find stocks that you expect to grow rapidly in the future and/or are underappreciated by the market. Some examples of stocks that have grown at an enormous rate in the past few years are Apple and Amazon.Find a broker with low fees: If you still trade (most of the time) over the phone or in-person instead of an internet broker you are probably paying more than necessary fees for your trade. Find a cheap, reliable internet broker and you will be able to invest from the comfort of your chair.Don’t act like sheep: Don’t buy a stock just because you’ve heard/seen lots of people buying it. That stock is usually overvalued because lots of people have already bought it at a cheaper price before you and is at the verge of declining in value at the moment. See it as a bubble, the smaller the bubble the less risk of bursting and vice versa. When you’re buying the stock after the masses bought it, the bubble is already large and thus increasing the risk of bursting (declining in value).Make investing as simple as possible: You don’t have to read the plethora of stock market information in books/magazines and the internet. Most of the stuff you will read is pointless and won’t help you become a more successful/better investor. Only learn the fundamentals of beginning investing so you won’t get confused by all the information out there and prevent you from beginning investing. Find an internet broker which is beginner-friendly, you don’t need a broker which is geared towards professional investors and bombard you with advanced tools and higher fees.Don’t check your stocks every day: Checking your investments every day will result in nothing more than headache and stress. Earning vast gains on your investment doesn’t happen overnight or within a month but is the result of waiting a few years (or in exceptional cases in months). Checking investment blogs or magazines daily is also a waste of time and won’t make you better in investing/picking stocks.
The non-traditional methods used to buy and sell property are often termed as creative real estate investing. When the normal traditional methods are not an option, getting creative can sometimes be the only way to seal a deal.There are a number of different practices applied when it comes to creative real estate investing. I’ll review four of them here to help you get started.Seller FinancingIn certain situations where a buyer is not able to qualify for a bank loan, the seller may offer financing to the buyer. The way this usually works is the owner will typically lend a portion of the equity to the buyer and the owner then receives monthly payments on the property. The terms may vary depending on the circumstances; it could be principle-only payments with a fixed interest rate or it could be a variable rate. These terms are agreed upon by the owner and the buyer.In some cases, the buyer may assume the seller’s loan and write it as an all-inclusive deed. This is known as a non-assumable loan.Lease OptionsWith lease options, a person signs a lease as well as an option to purchase within a certain time frame. Normally this is over a short period of time like one year, but with the decline in home sales recently, some homeowners have become more flexible with lease option terms, sometimes stretching it out to two years. At the time of the agreement, the buyer agrees to pay an additional amount called an “option fee.” This fee is typically forfeited should the sale not go through within the pre-determined time.There are some lease purchase options that make it mandatory for a buyer to buy the property within the term of the option. The price of the property is determined at the time of the agreement and this is the amount the buyer must pay regardless of the value at the same of the sale.Short-Sale or Pre-ForeclosureThere are other creative real estate investing techniques, such doing a short sale when the mortgage has been defaulted. When a property owner fails to make their mortgage payment and they go into default, there are a number of steps the lender must take in order to foreclose on the property. Since this typically can take months, the property owner may try to sell the home with the condition that the bank accepts less than what is owed on the mortgage.Tax LiensTaking advantage of property with tax liens is another method whereby investors buy the tax liens from the government and if the homeowner defaults on the loan, the investor can foreclose on the house.As you can see, there are many opportunities available when it comes to real estate investing. You don’t have to always use traditional methods of acquiring property. With the proper planning and creative real estate investing strategies, you can be quite prosperous in the real estate marketplace today.