However, let us look at a few simple steps following which you can achieve debt-free life.

Budgeting:

In maximum cases debt problems occur due to a failure to live within budget. People have too many desires but have limited money in hands that lead them to turn to credit. So the most important step to debt-free living is forming a budget.

· First list down all your sources of income and expenses, and review if expenditure exceeds your income. If yes, then try to identify the area where savings can be achieved.

· List the bills where there is very little or no scope of savings like fixed mortgage, rent, and council tax. Then list the areas where there is a chance for savings like social spending, food, drink, and utility bills. Try to cut back on drinks and food by avoid eating outside. You may also switch to generic food. Besides that, use an online comparison site and know how to save on insurance and utility bills. Work for that and try to achieve debt-free life.

· If you see that nothing of these steps can bring in debt-free life for you, then find out ways to earn some extra cash and increase monthly income. Working over-time, getting a second job or selling stuffs on eBay will fetch you considerable extra money.

Help to come out of debt:

Whilst you have to work for managing the basic expenses of your family, debt-free living should be your primary goal. Follow a few steps to achieve debt-free living.

• If you have credit card debt then perform lower interest balance transfer. This will help you to save money as this reduces the monthly payment, and will also help you with debt clearance as well.

• You can also borrow loan with low interest rate and consolidate all your debts into that loan. This will allow you to handle one loan instead of multiple debts, and will also allow you to pay off the debt as soon as possible.

• Also, try to make more than minimum payment. This will help you to pay off the debt faster than you thought before.

Debt solution:

Debt-free living can also be possible via a debt solution. If your debt-to-income ratio is too high go for debt management plan, individual voluntary arrangement, debt relief order or personal bankruptcy.

However, if you follow the above mentioned steps you will be able to clear your debt and live a debt-free life.

Challenges:

• The rent rate is low
• The taxes are high
• Extremely high turn over rate
• The property does not appreciate
• The tenants cause lots of damages
• The property requires  a great deal of renovation and rehab

 The best investment is one that exist before, during and after your lifetime.  One that produces income for all generations of your family. (biggasista)

• The property continually appreciates in value
• A never ending stream of tenants
• Excellent cash flow
• Double the rental income
• Advance rental payments
• Little to no repairs which has a great affect on overhead expenses
• Potential for great auxiallary income

Let’s talk numbers: Property A  and Property B

Property A is a two unit building with three bedrooms in each apartment:

1. cost $30k
2. rehab $10k
3. monthly rental income $1300.00
4. monthly expenses (taxes, water, maintenance, mortgage) $725
5. tenant headaches and incidents $$$priceless
6. monthly net $575.00
7. annual net $6900.00

Now the above numbers are a rough estimate of low income housing in a small college town.  If you are luck you see about $500.00 a month if no major repairs are needed, if you are actually able to collect the rent, and if a tenant does abandon the unit leaving you with a rehab repair bill far past their security deposit.

  Property B is a two unit town house with three bedrooms in each apartment that comes fully furnished:

1. cost $175k
2. rehab $30k (rehab to update the units, purchase furniture, appliances)
3. monthly rental income $3900.00
4. monthly expenses (tax, water, maintenance, mortgage) $1475
5. tenant headaches and incidents $priceless
6. monthly net $2425.00
7. annual net $29100.00

Now the above numbers are a rough estimate of a 2 unit student housing in a small college town.  You would see about $2400 a month, knowing that there are no repairs because everything is new.  You are able to collect the rent because students pay for the year in advance or pay by the semester in full.  And if they do abandon, well you have your rent money so fix up the apartment and rent it out for the following semester or do a sublet.  Either way you are still in a great position.

This scenario is a portrayal of how things work  based on my experience as an investor in both markets. They are realistic and if I can have less headaches, a great ROI and increased value I will continue to praise the student housing goldmine!

Rest in Wealth  . . . . .

If Congress does not raise the debt ceiling, the U.S. Treasury will run out of cash reserves to pay for obligations such as Social Security, Medicare and Medicaid, and defense contracts. (NYT)

With all this talk about the deficit and the possibility of the country going bankrupt, I turn to thoughts of real estate. Now I don’t believe the country will go bankrupt… Government will not let that happen, they can’t afford to let that happen. The dollar may lose value, social security might be at further risk, the recession might last a little longer, but the US will not go bankrupt. Perhaps broke but not bankrupt.

However the fact still remains that we as a country, are in a financial crisis, and as far as I’m concerned Real Estate is one of the few investments that provide financial security. Think about it: when you purchase property, land, buildings, etc… you own it. You get a piece of paper, known as a deed, saying that this piece of land is yours.
Real Estate will always have value, people will always need a place to rest their head, business will need office space. Schools, hospitals, churches, restaurants will always need a building. No matter how fiancially unsecure the country is, certain things will always be maintained. Your little piece of the American pie will always have worth. So, if you can buy something but it.
I understand that real estate might not be for everyone. Some people are buying gold and silver. Some are buying stocks and bonds. For me, it’s property, an investment that’s tangible, longterm, fruitful, and owned directly by me!
In my previous blog I speak about why invest in real estate, and now I’m telling you how to secure your future in a country that is financially unstable. INVEST IN REAL ESTATE!!

Rest In wealth…….

Real estate can be a prime investment in times of recession. In times of financial uncertainty, real estate investors should focus on cash flow rather than appreciation. Cash flow is easy to see—the numbers either work from the start or they donâ€t. (NuWire Investor)

Investing in real estate should be for:

• Building equity
• Producing a steady flow of alternate income
• Building your portfolio
• A contribution to your retirement fund.
• Tax benefits
• Tax deductions
• Financial security
• Cash flow

Farmers Insurance has released their seventh annual list of the Most Secure U.S. Places To Live and Syracuse is ranked No. 3 for large metropolitan areas of 500,000 or more residents.  Last year, Syracuse was 19th on the most secure cities list. The rankings, compiled by database experts at www.bestplaces.net, considers crime statistics, extreme weather, risk of natural disasters, housing depreciation, foreclosures, air quality, terrorist threats, environmental hazards, life expectancy and job loss numbers. The results are divided into three groups: large metropolitan areas, mid-size cities (150,000 to 500,000 residents) and small towns (less than 150,000 residents).

Now for an real estate investor, it’s a great place to invest!

For a variety of reasons, not to mention a weak dollar, this is actually a very unique time to invest in the US. Syracuse is a great place to start. As for Manhattan and the NYC area, cap rates are very low – it is almost impossible to find an investment property in NYC that will generate a positive cashflow. You CAN find a cashflowing property in Syracuse.

 

“The Commerce Department says home construction plunged to a seasonally adjusted 479,000 homes last month down 22.5 percent from the previous month.  It was the lowest level since April 2009 and the second-lowest on the records dating back more that a half-century.” (The Associated Press)

It seems that the housing market is not going to help our economic recovery.  That being said, for those who gambled wisely and have money to invest – it’s a great time.  In Syracuse there are currently over 100 multi-unit investment properties for sale.  It is a buyer’s market, there are bargains to be made and deals to be struck.

It’s all about the numbers.  Right now we have properties that have sold for $21k even a few around $7k.  Granted they require rehab but if you can buy something for twenty thousand, put in 10k in repairs then rent out two units for $1300.00 a month – I think it’s worth looking into.  Real estate is a long term game – the days of quick money are over!  Real estate is a investment where your money grows over a long period of time.  Do your due diligence and make long money not short money . . .  Rest in Wealth.