Financial Advisor Ebook

The Next Great Hire

This online course is your complete crash course on how to get your first entry-level sales job. In the field of sales, everything is based on how you perform. However, when you have no experience from the past, how are you supposed to show them that you are the right person for the job? You don't have any real way to prove that you are the person that they are looking for. Now, with this guide, you don't have to worry about that anymore. This guide teaches you what the top managers are looking for, and what you need to do to sell yourself as the best candidate for the job. This course was designed by Lauren Brasier, a college athlete who became a top New York City sales executive. All the information from this 6-part course is information that has been repeatedly tested in real-life sales examples.

The Next Great Hire Summary

Rating:

4.6 stars out of 11 votes

Contents: Online Course
Author: Lauren Brasier
Price: $99.00

My The Next Great Hire Review

Highly Recommended

I started using this book straight away after buying it. This is a guide like no other; it is friendly, direct and full of proven practical tips to develop your skills.

As a whole, this book contains everything you need to know about this subject. I would recommend it as a guide for beginners as well as experts and everyone in between.

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What Is A Financial Advisor And Do You Need

A financial advisor I don't need one. My cousin Tony is a whiz with investments and finances. If this is something you find yourself saying, stop. Unless your cousin Tony has taken classes and passed comprehensive exams, like the CFP boards, and works as a financial advisor, chances are you don't want to trust your retirement to him. Cousin Tony is probably not going to be able to help you decide if you need to invest in a traditional IRA or a Roth IRA. Nor will he be able to advise you on what the possible benefits of investing in an annuity would be for you. The best answers to these questions, and others like them, come in the form of a financial advisor. A financial advisor is there to keep you educated and invested for the long term when the market goes down, as well as when decisions are to be made. Put simply, he can be your best friend. Financial advisors, or planners, work with clients to find the best fit between the client and different investment vehicles. Some advisors...

Accountantfinancial advisor

It is very important to meet on a regular basis with your accountant and or financial advisor throughout the year to discuss your investment and to be prepared in your tax planning throughout the year. In this way, you can discuss your properties in advance instead of getting surprised when you visit your tax accountant during tax season. Some accountants even have a checklist to help you organize your files and your bookkeeping system.

This Concept Works Well for Investors and Real Estate Salespeople

Using the comfort zone concept, you can actually feel the power gained through knowledge. Knowledge, by the way, is the same kind of foundation that makes one real estate salesperson stand out over another. Smart real estate salespeople will learn all that they can about the area in which they want to list and sell real estate. Their demonstration of being experts in the geographic area enables them to dazzle owners into the realization that the best person to list and sell their property is someone who knows the property like the back of his or her hand.

Finding a Financial Advisor

Decisions with and without the help of such planners. In theory, everyone entering into major investments like real estate should seek holistic financial advice from a financial advisor who charges an hourly fee. Here are a couple of stories that highlight the conflicts of interest you may be subjected to when working with a financial advisor. While serving as an expert real estate witness, Robert had a case where a retired couple was given some self-serving advice by their financial planner. This couple owned their principal residence plus three other rental homes valued at 1 million. All of their real estate was owned free and clear, and the rentals were in great condition with good long-term tenants. The properties provided a nice monthly income stream that was mostly tax-free due to their depreciation deduction (see Chapter 18). Although the real estate was clearly their largest asset and completely debt-free, they also had nearly 500,000 in liquid assets such as stocks, bonds,...

Institutional salespeople

Broadly speaking, there are two types of institutional sales professionals the sales-trader and the research salesperson. A sales-trader sits on the sales and trading desk and acts as the interface between the client organization (the buy-side firm) and the broker-dealer organization (the investment bank or specialist trading firm). The sales-trader speaks directly with the buy-side traders. process. Sell-side firms are ranked annually on the quality of their research, and there tends to be a correlation between the amount of business a research salesperson is able to generate for the firm, and the perceived quality of his firm s research analysts. Both the sales-trader and the research salesperson are heavily involved in building client relationships. While this obviously includes quality execution and useful research, salespeople also frequently take clients out for industry conferences and golf outings in an effort to strengthen their relationships with clients, with the idea that...

On Financial advisors

Financial advisors and brokers who act as advisors by charging a wrap or asset-based fee increasingly are supporting index funds as a professional class. As relatively dispassionate observers (normally they are paid only by the investor), they gain nothing when the crush of high-fee funds catches up with the investor. In fact, they have much to lose their annual income stream comes from advising the client. Index funds leave more room for the advisor fee. There is only so much cash that can be taken out of clients' account without having them notice, and index funds relieve the pressure all around. It is one thing to ask an investor to pay a 5 load and 2 per year for a star fund, but to add on another 0.5 or 1 for a financial advisor Investors won't pay it, so the advisor becomes the natural advocate of indexing. Clearly, some level of professional advice is desirable for many investors and perhaps even required for certain ones who need extra handholding. The typical financial...

Locate Specialty Realtors

Many mortgage lenders avoid selling directly to REO investors (though they do make exceptions) for two reasons (1) as mentioned, they don't like the unfavorable publicity, and (2) they want to promote good relations with Realtors.2 Because most mortgage lenders expect Realtors to bring them new loan business, these same lenders can't then turn around and become FSBO (for sale by owner) dealers. You scratch my back and I'll scratch yours sets the rules in business. As one part of your efforts to find REOs, cultivate relationships with Realtors who specialize in this market. (In fact, HUD,VA, Fannie Mae, and Freddie Mac almost always sell their REOs through Realtors.) In most cities, you can easily find REO specialists by looking through newspaper classified real estate ads.

Insurance Agents And Insurance Brokers

Article 125 An insurance agent is an entity or individual who, entrusted by the insurer, collects commissions from the insurer and, on behalf of the insurer, handles insurance business within the scope authorized by the insurer. Article 126 An insurance broker is an entity which, for the sake of the interests of the insurant, provides intermediary services in signing insurance contracts on behalf of the insurant with the insurer and collect commissions according to law. Article 127 In entrusting an insurance agent to handle the insurance business, an insurer shall sign an agent agreement with the insurance agent to agree upon the rights and obligations as well as other agent matters pursuant to law. Article 128 An insurance company shall be responsible for the acts of an insurance agent to handle insurance business as authorized by the insurer. If an insurance agent conducts any acts beyond the authorized scope in handling insurance business for the insurer, and the insurant is...

Becoming a Commercial Sales Agent

You're about to enter a realm of the elite. Becoming a commercial real estate sales agent is a huge commitment, but it pays off in so many ways. The opportunities in this field are numerous. You can work in office buildings, retail centers, multifamily apartment complexes, or industrial parks. And even those categories have their own subcategories. Commercial sales agents are seen as the cream of the crop in real estate sales because of their ability to put together big deals that involve tens of millions, if not hundreds of millions, of dollars. It's difficult to describe the feeling you get when you close on a transaction for a multimillion-dollar commercial property that took four to five months, countless meetings and teleconferences, and the coming together of buyer and seller. Now it's time to see if you have what it takes to succeed.

Living the life of a commercial sales agent

Attending your kid's basketball games and karate tournaments. Having a lunch date with your loved one on a whim. Taking off on a mountain bike ride midweek to escape for a few hours. Flexibility and freedom. Potentially, these are all possible after you make it as a commercial sales agent. After you're engrossed in the everydayness of your new career, you'll discover that the most successful and highly paid sales agents put a lot of focus, energy, and dollars into two things leads and listings. These two things keep the commission checks rolling in and enable you to run your business instead of the business running you. Getting leads and listings are at the roots of success in this business. Of course, the two are related. You can have the greatest sales skills this side of the Mississippi. You can also have the keenest knowledge of real estate negotiations (see Chapter 5) and be a master of your market. But if you have no one to talk to (leads, that is), all that skill and knowledge...

Line Up a Realtor You Can Relate To I know many investors who

Flit around to many different realtors then when they do buy, they do it through their sister-in-law's daughter. That is a good way to burn their bridges with all of those realtors they had working on their behalf. I believe, trying to be unbiased at the same time, that it is far better to have one or two realtors that you can work with. It is best not to pit them against each other because each may bring you the same property. Now what do you do Yet, not all realtors and their prospective clientele have a magic chemistry between them. If you feel uncomfortable with the person, skip the coffee after the lunch and move on.

Salespeople

If you sell real estate, you know how tough the profession is. As a realtor for over 30 years, I know how the market can rise and fall. In some parts of the country, there seem to be more real estate salespeople than trees. To become a top real estate salesperson in any part of the world means you have to be the best, and offer your clients the best service possible. This book will open your eyes to how you can be of greater service to your buyers and sellers. If you can accept the fact that by helping your buyers and sellers attain their goals, you will be successful as a salesperson, then this book is for you. The idea is to expand your own reference point so that you are better able to put yourself into your clients' shoes. This will enable you to see beyond the standard way of doing things, and be creative in many new ways not possible before. By the way, creative financing often scares people. That is because the word creative is often confused with the word complicated....

Realtorbroker

Just because you have a real estate sales license or a real estate broker's license doesn't mean you are automatically a Realtor. Realtor is a registered trademark of the National Association of Realtors and it refers to people who are licensed by their states to sell real estate buildings or land and who are members of the association. When hiring someone to represent you in the purchase of your property, it is important to hire a Realtor, preferably one who specializes in the type of property you want to buy. You can dive into more of that in Chapter 3. If you're not sure which Realtor to work with, ask anyone you know who manages rental property. Establish a relationship with one Realtor when going out to look to purchase any property, including your first investment property. Yet, even with a Realtor on your team, it's up to you to The most efficient way to purchase insurance is to have one contact for all your insurance needs. I suggest establishing a relationship with an...

Realtor

A Realtor is member of the National Association of Realtors (NAR). They agree to conduct themselves according to a Realtor's Code of Ethics and are subject to the rules of the professional association. They must be licensed by the state and work under a license real estate broker. I recommend that you first look to hire a professional by hiring a Realtor. You can come right out and ask, are you a Realtor, are you a member of NAR and the local board This is a great place to start. Always choose a Realtor. It is your assurance of getting the type of professional who is proud of his or her position one who lives by and follows the strict National Association of Realtors (NAR) code of ethics. Jack W., Realtor Broker, GRI President, 2002 Marin Association of Realtors Buyers and sellers are clearly better served when a real estate professional is engaged to assist in the sale or purchase of a property. In today's market, there are dozens of reasons why a Realtor can give you an edge,...

Realtors and brokers

When looking for deals, you're looking for commercial real estate firms that sell commercial properties as their specialty. The Realtors and brokers that you get to know can be incredible sources of commercial properties for you over time. You want to focus on getting to know commercial brokers, but it's also important to understand that everyone in your network who may know of a commercial property for sale is a potential source of another deal.

Modern Investment Management

The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more.

Exposing the Myths of Cant Miss Investment Strategies

While there are literally hundreds of schemes to beat the market in circulation, they are all variants of about a dozen basic themes that have been around for as long as there have been stocks to buy and sell. These broad themes are modified, given new names and marketed as new and different investment strategies by salespeople to a new generation of investors. There must be something in these stories that appeals to investor instincts and to human weaknesses - greed, fear and hubris, to name but three- to give them the staying power that they do. This book is an exploration of the appeal of these stories, why so many fall for them and fail with them, and what it may take to win with each of them.

Value first Valuation to follow Bias in Valuation

Reduce institutional pressures As we noted earlier, a significant portion of bias can be attributed to institutional factors. Equity research analysts in the 1990s, for instance, in addition to dealing with all of the standard sources of bias had to grapple with the demand from their employers that they bring in investment banking business. Institutions that want honest sell-side equity research should protect their equity research analysts who issue sell recommendations on companies, not only from irate companies but also from their own sales people and portfolio managers.

Step 1 Setting Investment Objectives

The objectives of an individual investor may be to accumulate funds to purchase a home or other major acquisitions, to have sufficient funds to be able to retire at a specified age, or to accumulate funds to pay for college tuition for children. An individual investor may engage the services of a financial advisor consultant in establishing investment objectives.

Running your business like a business

Setting your business up correctly in the beginning means you need to meet with several professional people to gain practical knowledge. Consider meeting with a real estate agent, banker or mortgage broker, accountant, insurance agent, attorney, and (if you want someone to manage your property for you) property manager. See the following section for details.

Your Advisorgood Or

You've gone through the interviewing process with a number of advisors and have picked one. This person seems very knowledgeable, and you feel like this is a good fit. However, the time may come when you decide that your financial advisor is just not the right one for you anymore. That's okay it's perfectly alright to switch advisors if you feel that your advisor isn't doing the right thing for you. Here are some guidelines to help you make your decision Have you been asked to show your tax return to your advisor Is he or she in contact with your CPA Does your advisor ask about your 401(k) at work A good financial advisor needs to know everything about your financial life. If your 401(k) at work is heavily weighted in technology stocks and stock funds, your portfolio with your advisor shouldn't be. Make sure your advisor knows everything he or she needs to know in order to make the best possible recommendations to you. If your advisor doesn't seem to care, or isn't listening when you...

Know What Is Important

Your private due diligence checklist must be compiled locally to fit your specific category of real estate and your own needs. Local inspection companies, your realtor, your lawyer, and individuals in the construction trade (who know the area and the kind of real estate you want to buy) can be helpful in compiling your specific due diligence checklist.

The Financial Planning Process

Now that you have selected your financial advisor, he or she should address these six key areas It wasn't that the 3 million in performing assets was the unrealistic part it was the time frame in which they wanted to work. Your advisor will help you decide what goals should be short term and which ones should be long term. Most importantly, though, he or she will continue to provide client service. This means that as your needs change, your advisor will change with you to make sure you are still on track to achieving whatever your goal may be. Anyone can sell you an investment product it takes a committed financial advisor to provide ongoing client service to ensure that you are heading in the right direction.

Expanding your business

The goal of all investors is to watch their investments increase and to expand their portfolios. As the value of your property goes up, your equity increases and, like many investors, you can use your current real estate (even your personal home) to purchase the next property. Never stop watching the papers and the Internet for investment property that comes up for sale, and stay abreast of the market in the area you're interested in. Keep in constant contact with the Realtor who sold you your first investment property he or she may know of something new that will be coming up for sale. In the same way, if you use a property manager, tell him or her that you want to know if another client is going to sell a property. You can also get the inside scoop on how good the tenants are and what the condition of the property is. Of course, make sure your property manager is comfortable giving out this information don't press if he or she isn't. It is important to keep your rental rates as...

Mutual Funds An Investment

I know that, but please bear with me. I don't want to make the mistake that I see so many investment writers (and financial advisors) make starting with the more advanced stuff on the assumption that you know the basics. So often I hear from people reading about mutual funds and complaining that a writer starts throwing around terms such as small cap value stock fund and asset allocation without explaining them, and before you know it, you're lost in the weeds and frustrated. You have every right to be.

Establishing A Financial Plan

In order for your financial advisor to guide you along the path to achieving your goals, he or she needs to have a clear understanding of where you stand presently. This means figuring out your net worth and liquid net worth, examining your cash flow, and determining your cash reserves.

Is A Financial Plan Really Worth It

People feel that their finances are already taken care of, or are in good shape. While that may be true, everyone can benefit from hiring a financial advisor and having a plan. However, humans tend to procrastinate, often putting things off so long that it becomes too late. Plus, planning encompasses certain life experiences that may be unpleasant. While planning for retirement may be a positive experience, planning for a disability or death might not be. Then there is the financial cost of planning. Professional financial planners charge a fee for their services. All of these factors can be deterrents to planning.

Price Doubling Is Easy at Low Prices

Many boiler room sales representatives have touted this doubtful idea more than once. Yes, it can be easy for some low-priced stocks to double in price. However, it can also be easy for high-priced stocks to double in price. The point is that price doubling depends on factors other than the current price level. For example, it depends on changes in efficiency, restructuring, revenue growth, or earnings growth. The stocks might be new companies or old companies that have recently had earnings problems, companies that show signs of a turnaround.

Saw the movie Boiler Room Is sales and trading like that

Boiler Room describes the exploits of a pump-and-dump operation. Pump-and-dump is the practice of buying low-priced shares of usually illegitimate companies. Salespeople then go out and apply high-pressure sales tactics to unload this worthless stock on retired folks in Florida and farmers in Iowa. As the share price begins to rise, the unscrupulous broker then dumps the shares that he bought at substantially lower prices on unsuspecting buyers. This activity is completly illegal, even for Ben Affleck and Vin Diesel. If you find yourself working in this type of environment, get out, unless you look good in stripes.

Reviewing your policy

Don't just pay for the insurance each year. Take the time to review your coverage with your insurance agent. If you have hired an insurance agent, ask him to shop other carriers. Plan to review your insurance coverage the same time each year. Each March, for example, I meet with my insurance agent. I gather all the policies and meet at my office to review everything. Time can lapse quite quickly and before you know it and usually when it is too late you find you are underinsured and don't have the proper insurance coverage for today's values. Protect your investment with too much insurance.

So what is sales and trading

At this point, we know that sales and trading isn t exactly what we see on the movies. So what is sales and trading Salespeople work with customers on what is called the buy-side, selling them large amounts of securities like stocks, bonds or currencies. The largest customers on the buy-side are typically institutions (such as mutual funds or pension funds) that manage assets for others. Salespeople who sell to these institutions are identified by a variety of titles institutional salesperson, sales-trader or research salesperson. Salespeople who sell to smaller institutions or wealthy individuals are called private client services (PCS) professionals.

Limited partnerships LPs

Many of the yields on LPs have turned out to be bogus. In some cases, partnerships propped up their yields by paying back investors' principals (without telling them, of course). The other hook with LPs is tax benefits. What few loopholes did exist in the tax code for LPs have largely been closed. Amazingly, some investment salespeople hoodwink investors to put their retirement account money which is already tax-sheltered, just the way that you want it into LPs The other problems with LPs overwhelm any small tax advantage, anyway. If you want tax-friendly investments, check out Chapters 7 through 9.

How is sales and trading different from investment banking

Salespeople and traders also work on deals every trade is a deal and also entertain clients. Compared to investment banking, however, it takes much less time to consummate a transaction in S& T. Typical trades are consummated in seconds or minutes, and the average fee per trade is Another big difference between S& T and I-banking is the lifestyle. Sales and trading professionals are the first-in-and-first-out in the investment bank. To get a jumpstart on the trading day, salespeople and traders normally take the earliest train into work. But they are the first ones out of the office, leaving shortly after the markets close. Salespeople and traders also never work weekends trading desks are completely abandoned on the weekends. In contrast, investment bankers are expected to be their desks during the weekdays and weekends, at all hours and throughout major holidays. If you ever want to see a sad sight, go to one of the major investment banks on Christmas Day or Easter. Around...

Making money in the Futures markets

No one likes to study or have to figure out charts, formulate plans, and have patience and management right Unlike other businesses that require licenses, employees, inventory, office space, salespeople and huge amounts of capital just to get started, commodities simply requires an understanding of the markets, a small amount of capital and a broker. There are, however, many benefits if you open your trading account in a business name or a corporation. The two major benefits are that you will take it more seriously and there can be some excellent tax benefits. A personal accountant will be able to help you with this.

Not necessarily dishonest

Like any professional, brokers and active fund managers have every right to try to earn their fees by trying to convince investors of their value to the investing public. But investors also have every right to say no, and today most are abdicating that right. Occasionally I hear a stockbroker or financial advisor get defensive and say, I have only my investors' interests at heart and would never sell them a service they don't need. You rarely hear them concede that perhaps they have an inherent bias and self-interest at stake that might blind them to the truth. You never hear them say, Here are all the extra fees I am charging you that I am going to make up in your account so you can at least match the market. Only a tiny fraction of funds or money managers agree to work on a performance basis, where you pay for transaction expenses but nothing more unless you exceed certain targets.

We Live in a World of Nameless Faceless Neighbors

The comfort zone works simply because people have a tendency to live in a world in which they keep to themselves. We don't know the names of our neighbors, we don't know values across the street, and we don't even care if the house down the block is rented, or if so, for how much. Investors buy for many reasons, often taking the word of their realtor or salesperson as to what is going on in the area. This fact may not hamper their success in fact, many investors succeed with this tactic of investing.

Why do investment banks have sales and trading departments

The most important function of a sales and trading department at an investment bank is, of course, to make money. An investment bank collects significant fees every time its sales and trading professionals execute a deal for clients. Traders and salespeople add incrementally to the bottom line through daily profit and loss and commissions, and raise the profile of the firm in the marketplace. But there are ancillary benefits to having a strong S& T department. Investment banks provide capital raising and mergers and acquisition advisory services. Salespeople and traders are needed to create and maintain an active secondary market in these new issues. (Investments that are simply bought and held, such as life insurance, do not have secondary markets. Secondary markets exist to allow investors to buy and sell investments such as stock even after an initial public offering.) Most large investment banks target their secondary market activities towards issues that will support the...

Index fund investing the relatively new passive investment strategy

According to these results, it theoretically is possible for plan sponsors and financial advisors to identify in advance these active managers with superior information, and capable of staying at the top over time. However, performance persistence does not extend outside these three asset categories of the six considered by the study. For large-cap equity, finding the top managers who consistently outperform their benchmarks clearly remains a challenge, which is consistent with the EMT.

Read Various Trade Publications to Help Find Deals

The ability to visualize a property being put to other uses is a skill that you can quickly develop by expanding your knowledge of the types of properties that house various businesses and industries. I read over 20 trade publications a month, which cover a variety of industries, ranging from transportation to logistics to site selection to metal building construction to operating convenience stores. The one thing that all of these trade publications have in common is that they are all involved in real estate in one form or the other. I read these magazines, which, by the way, I receive free of charge, to help stimulate my creative thought process about the various ways in which a piece of property can be put to use. And this helps me to connect the dots between a particular type of property that is in demand and the prospective buyers who may have an urgent need for that type of property. I am also able to pick up bits and pieces of information about the real estate needs of various...

The marketing Treadmill

Advisors who recommend indexes can be quite costly. Some charge clients 1 or more of assets just to manage a simple retirement portfolio the clients could construct themsleves. Even when discounts are applied to larger accounts, advisor fees can cost investors dearly over time. Financial advisors are increasingly well educated and understand the benefits of low-cost indexing for their clients. Not all, however, feel that their fees should be lowered to benefit the client.

The sales and trading team environment

Sales and trading is a symbiotic relationship. Salespeople need traders and traders need salespeople. Salespeople wouldn t be able to provide liquidity to customers without traders, and traders would be twiddling their thumbs all day long without customer orders to trade. This simple reality is sometimes lost during the course of the trading day, when traders routinely rip into salespeople, and salespeople shake their heads as they pick up the phone to give reports to their customers. Let s take a closer look at why salespeople and traders often find themselves at odds. Let s say a trader just bought 500,000 shares of Precision Orthopedic Supplies (POS) from Fluke Investment Bank and makes a big spectacle about the trade, yelling at a salesperson something like, That s not the right price, Dave, but you know that s what Fluke always does. These guys are trying to sandbag me again. Here, the trader is concerned that he has bought the stock at too high a price, albeit from an important...

Financial Projections

Van Horn also knew that the capitalization of a reorganized NCS would be a subject of heated discussion among the company's creditors. This decision, together with the value placed on the reorganized company, would directly affect the creditors' recoveries and the nature of the consideration they would receive. At the same time, NCS's CEO was aware that the company could accept only a certain amount of leverage for the reorganization to be successful. Van Horn thought that a reorganized NCS could handle debt in an amount between 3.5x and 4.5x the company's projected FY 1993 EBITDA. Furthermore, he knew that in order to meet the bankruptcy court's feasibility standard for the approval of a plan of reorganization, NCS would have to demonstrate that it would be able to generate the funds necessary to make the payments to creditors prescribed by the plan. As a benchmark for meeting this feasibility test, financial advisors in Chapter 11 situations often recommend a capitalization...

It Takes More Than One Vehicle

Are you willing to meet with at least one professional financial advisor and find out how his or her services may help you with your long term investment plans You may want to meet with two or three financial advisors just to find out the differences in their approach to financial planning.

The colorful personalities

Look through any sell-side firm s recruiting literature and you ll quickly learn what qualities are valued in salespeople and traders. Salespeople prize the ability to schmooze with clients, which requires superior communication skills, outgoing personalities and a sharp wit. Traders tend to be more cerebral, more analytical and they generally consider themselves to be smarter than salespeople. Traders need to be good at handling stressful situations and exuding a sense of calm and control even when situations are quickly spiraling out of control. The interesting thing about traders and salespeople is that there s a strong stereotype for how they should act and what qualities they should demonstrate, so part of the learning curve in any sales and trading environment is developing the right mannerisms and quirks that reflect the desirable qualities. Effective salespeople and traders are good communicators. This applies not just with respect to clients, but also with respect to bosses....

Our Advice Look for Investment Projects Near New Developments

The resale of existing homes is another indicator of your local real estate market, particularly in areas where there isn't a large supply of new homes. This data comes from the REALTORS associations such as the National Association of REALTORS (NAR). Note that the price of home resales is more important than simply the number of homes sold. Also, home resales may be stated as, sales of homes down 15 percent. This simply means the number of homes sold has decreased, not the price. A decrease or increase of the number of homes sold is only part of the equation. Data for home resales can be found at www.realtor.com.

Agent listing agent and subagent

By talking to real estate agents who have experience buying and selling investment-type properties, you can obtain leads by reading the real estate ads in your local newspaper. Look to see who has rental property listings advertised for sale, even if that particular property doesn't interest you. Target local real estate companies in particular. Realtors who work your area are best equipped to answer questions about schools, businesses, taxes, and other issues of interest to prospective buyers. They will know about the best location, location, location. Ask your Realtor for a referral to a professional property manager who can give you the information you need on rental values and what to look for in buying an investment property in that area. You discover the ins and outs of hiring a professional property management company in Chapter 17. Most of all, make sure you feel comfortable with the Realtor you choose to work with. It all comes down to trust.

Guiding homeowners to good decisions

When helping homeowners, you can't try to pass yourself off as an attorney, accountant, financial advisor, or therapist, unless you really are one. However, you're often called on to play some of these roles. Like a therapist, you have to learn to listen to the homeowners. Like an accountant, you need to be able to look at the homeowners' finances to assess their options. And, like an attorney, you need to know the foreclosure and redemption laws in your area. inform homeowners of their options and recommend professionals who can help. If the homeowners can refinance their way out of a foreclosure, you may be able to steer them to a loan officer or financial advisor who can provide additional assistance. In Chapter 4, I show you how to assemble a team of experts to assist you in buying and selling foreclosure properties, so you should have plenty of experts on hand to recommend to the homeowners.

The people in your neighborhood

Trading desks are very impressive sights. There are rows and rows of computer monitors and hundreds of people intermittently pounding the table, yelling or staring intently at their screens. Each trading desk is organized a little differently, but there are several desk layout themes that are consistent. What you ll usually see is traders sitting separately from the salespeople. Salespeople may be situated in the middle of the desk or in the front on a slightly elevated platform. Salespeople need to be able to reach out and touch someone, so they will tend to occupy center stage. The traders surround the salespeople, and there s a little jockeying that goes on among them for who gets the good seats. A lot can be inferred from position with respect to the salespeople. The closer a trader sits to the salespeople, the more senior the trader is, or the more important that sector is for the overall desk, or both. The outskirts of the trading desk tend to be occupied by more junior traders,...

Wwwvaultcomfinance

For an I-bank, M& A advising is highly profitable, and there are many possibilities for types of transactions. Perhaps a small private company's owner manager wishes to sell out for cash and retire. Or perhaps a big public firm aims to buy a competitor through a stock swap. Whatever the case, M& A advisors come directly from the corporate finance departments of investment banks. Unlike public offerings, merger transactions do not directly involve salespeople, traders or research analysts, although research analysts in particular can play an important role in blessing the merger. In particular, M& A advisory falls onto the laps of M& A specialists and fits into one of either two buckets seller representation or buyer representation (also called target representation and acquirer representation).

Look for Experience and Likeability

Additionally, if you're relatively new to investing, you will need a more experienced person to help you. You also need to seek out an agent whose specialty is income property or investment sales. In the larger brokerages, you'll find more specialists. But, then, larger firms always have a ton of new agents cycling through to get experience. In the smaller offices, sales people take on everything that comes through the door. On the other hand, many times you'll find the more experienced agents working by themselves or in smaller offices.

So How Do You Find Your Plan

So how do you find your own plan The answer is to begin with a financial advisor. Ask the advisors to provide their qualifications to you and interview several. If you have never had a financial plan done for you, it is an eye-opening experience for most people. 7. Insurance agent

Understanding closing costs

When your offer is accepted, don't be afraid to ask your Realtor whether he or she has some material you can read to get familiar with the process and what to expect. If it is not your first time purchasing, it is still a good idea to refamiliarize yourself with the process that is ahead of you to take ownership of your new property.

Where Can You Find Low DownPayment HighLTV Owner Occupied Mortgages

Everywhere Look through the yellow section of your telephone book under mortgages. Then start calling banks, savings institutions, mortgage bankers, mortgage brokers, and credit unions. Also, many mortgage lenders advertise in local daily newspapers.1 Check, too, with your state, county, or city departments of housing finance. Homebuilders and Realtors also will know various types of low- or nothing-down home finance programs. An hour or two on the telephone will turn up dozens of possibilities.

The Internet Investments Online

Http www.investmentnews.com Investment News is a sister publication to Pensions and Investments, with a focus toward the financial advisor. This site includes information on financial planning, the mutual fund industry, regulation, equity performance, and industry trends.

Internet sites of commercial real estate

Or, why not go direct to the source national commercial real estate brokerage firms. They have their own Web sites with listings and valuable market reports. The beauty of Internet sites is that if the property that we find there is no longer available, we count it as all good because we have just made a valuable contact. We can either sign up for property availability alerts or we keep in touch with the realtor we made contact with. In many cases, we found that the property we checked on was no longer available, but we ended up buying another property that was soon to be listed.

Security market indexes are used as a performance criterion

Regardless of whether portfolios are passively or actively managed, securities market indexes have been constructed to give a quick answer to the question portfolio managers, financial advisors, and other money managers are most often asked by their customers How is the market doing today Aggregate moves having a major impact on portfolio returns represent one reason people are so interested about market indexes.

Search for Good Value

After you've located 203(k) advisors who know what they're doing, next search for a property that offers good value for the money. In Quentlin Henderson's case, his Realtor found him a bargain-priced, six-year-old house that was in a sorry state because its former owners had abandoned it as a result of foreclosure. The good news for people who buy such houses, says Bob Osterman of FHA's Orlando, Florida office,is that purchase prices are generally low so that after repairs are made, the home's new value often produces instant equity. Not surprisingly, the term instant equity was also used by John Evianiak, a 203(k) investor in Baltimore. Not only can you buy a house and fix it the way you like, John says, but you can buy a property for

Recognizing the value of a sellers agent

Real estate agent or Realtor What's the difference A real estate agent is anyone who has a state license to negotiate the sale or purchase of a property and works for a real estate broker or brokerage company. A Realtor is a real estate agent who's also a member of The National Association of Realtors. The U.S. has more than 2 million real estate agents, but only 1.2 million are Realtors. Because the qualifications for obtaining a real estate license vary from state to state, the quality of real estate agents varies much more than the quality of Realtors. The National Association of Realtors requires its members to complete additional training and testing to improve their knowledge and abilities and encourages members to follow a strict code of ethics. The association also provides its members with additional resources and tools to assist in finding and marketing properties effectively. Being a Realtor costs more, so when you hire Realtors, you know you're getting people who've made...

Picking an agent with the right stuff

I Five or more years experience i GRI (Graduate Realtor Institute) certification i CRS (Certified Residential Specialist) certification i Realtor status (not simply a real estate agent) i A consistent top-5-percent performance in the marketplace i Assisted by a clerical staff i Well-connected with other agents i Works for a real estate company that has a Web site i Maintains a personal Web site or a blog

How to Get the Sellers Interested

Explain point-by-point how your offer alleviates their principal concerns without giving rise to new ones. Are you a credible buyer Does the proposal create too much risk A skilled Realtor may be able to help you achieve this result. Remember, a confused mind always says no. Eliminate seller doubts with clear and compelling reasons.

Sales toads are brokers commissions

Salespeople often get higher commissions by pushing house brands. Many of the better load mutual funds, such as American and Franklin Not surprisingly, those who have a vested interest in sales loads make a number of misleading arguments in favor of funds that carry sales loads. Over the years, I've heard quite a number of arguments from brokers and, in counseling clients who come to me for advice, I frequently hear them repeat arguments they've heard from investment salespeople to get them to pay a sales charge when buying a mutual fund. Not Investment salespeople will imply or actually say that no-loads have to make it up somewhere if they aren't charging you a sales commission. Although this may sound logical, remember that sales commissions go to the broker, not toward the expenses of managing the fund. This either or mentality is trumpeted not only by investment brokers but also by some financial writers in the mass media, who sometimes parrot what brokers say to them. If you...

Financing Strategies for Companies

If you're applying for an investment banking job, your interviewers will assume that you have a solid understanding of the financial aspects of managing a company. Just in case you don't, here's the basic info. Generally speaking, companies obtain the funds they need to sustain growth by selling stock (equity) or borrowing (debt) by retaining earnings (not distributing profits to shareholders) and or by selling off (divesting) noncore, nonstrategic assets. The corporate finance group of an investment bank advises companies on how to most efficiently and cost-effectively finance growth. Corporate finance works with salespeople, traders, and research analysts to determine the best ways a company might do this.

Tapping into your retirement savings

Consult your financial advisor and accountant for details about using a self-directed IRA to finance your foreclosure investments. If a self-directed IRA is not a viable option, you may be able to borrow money against your retirement account. Keep in mind, however, that borrowing against your retirement savings places that savings at risk, as does any other investment.

Real Estate Live In It The Rest Is Investing

To book that profit you would have to sell the property. Realtor fees when you sell, plus property tax, insurance, and repair costs, might bring the net gain down to around 380,000. (Realtor fees at 6 percent would equal 60,000 on a 1 million house. Property tax at, for instance, 1.5 percent on a 1 million house would be 45,000 over three years. Insurance would be another 5,000 over three years, and repairs perhaps another 10,000.)

Working with Real Estate Brokers and Agents

Your investment team should include a sharp and energetic real estate broker or agent. All real estate brokers and agents are licensed by the state in which they perform their services. A real estate broker is the highest level of licensed real estate professional, and a licensed real estate sales agent is qualified to handle real estate listings and transactions under the supervision of a broker. The vast majority of real estate licensees are sales agents. Throughout this chapter, we refer to both real estate brokers and agents simply as agents. A real estate agent must have his license placed under a supervising broker who's ultimately responsible for the actions of the sales agent. Real estate brokers often begin their careers as real estate agents, but it's possible to

Securing your financing

Need money Maybe all you have to do is ask for it. Securing financing may not be quite that easy all of the time, but it can be some of the time. If people who have plenty of money lying around know that you have a proven track record for making money, they may rather invest in you than bet their money on stocks and bonds or entrust it to a financial advisor.

Seeing the Value of Working with an agent

In many metropolitan areas, looking at the properties on a Multiple Listing Service (MLS) or in the newspaper or online listings isn't enough. The best deals are often the ones that don't make it into these sources. This is where the insider information from real estate sales agents can make you the bride and not the bridesmaid. (Of course, many brokers are themselves interested in investing in income producing properties, and they have the first chance at the best deals.) You want to be the first one contacted about the best properties coming on the market rather than one of many when everyone knows about the property from the MLS. The MLS is a service created and maintained by real estate professionals per guidelines established by the National Association of Realtors (NAR). This service gathers all of the local property listings into a single place so that purchasers may review all available properties from one source. The MLS also deals with commission splitting and other...

Creative Beginning with Lease Options for Investors

Three months later, Suzanne was on her way. She then bought her renovated condo unit at her lease-option price of 40,000. Then, simultaneously, sold the unit to a buyer for 85,000. After accounting for renovation expenses, closing costs, and Realtor's commission, she netted 23,000. Suzanne no longer had a home, but she had found a career.

Corporate Misgovernance

We have seen the pitfalls from the side of the financial experts who have lost investors' money, partly from a lack of proper communication. This fault can come from both sides, either the salesperson ramping a financial instrument that is more risky (or much valuable) than is likely within the bounds of reality, or the investor having a risk appetite that is completely unsuitable. Furthermore, there is a problem with the regulatory moves to make self-disclosure best practice for the industry when the salespeople do not want to, or cannot, reveal the true extent of risk.

It Sounded Like a Good Deal

This involves purchasing income property for more than it is worth. The seller convinces you that the beachfront property in an equatorial country is such a good deal that the seller will guarantee the advertised income on it for the first year after your purchase. The 250,000 sales price sounds like a bargain to you, compared with what you would pay in the United States, and the persuasive sales agent seems to have all the information. As an added bonus, the agent will provide property management services at a modest 10 percent monthly fee, which includes everything from collecting rents, making repairs, and keeping it occupied. In fact, the property is only worth 125,000. So for the next year, you're receiving the money you expected, which is coming from the 125,000 that your overpaid, and you're remitting 10 percent back to the agent for the privilege. After a year, the tenant, if there ever was one, supposedly moves or decides to pay you less,...

The difference between the two

There are several key points of difference between institutional sales and PCS. First, institutional sales is a bit more glamorous. At a cocktail party, it sounds a little more refined to say that you cover a known institution rather than an assortment of wealthy dot-com millionaires who day-trade in their spare time. On the other hand, on a per-share basis, PCS is a much higher margin business. PCS salespeople are often able to charge a significantly higher commission than their institutional sales counterparts, especially if the client values the relationship with the PCS professional. PCS is also a little more interesting from the perspective that the potential client base is always changing. At one point in Wall Street, Bud Fox s boss hands him a thick telephone directory, reminding him that, There are plenty of six-figure prospects that you should be cold-calling. When you get down to it, this is essentially how a new PCS professional builds his book of business. There are...

Myth 5 indexing pushes Up the market

The charge here is that the popularity of indexing the S& P 500 led to extreme valuations, especially relative to small-cap stocks. The theory is that indexing the S& P 500 is a self-fulfilling prophecy. Companies that are added to the S& P 500 experience price spikes as passive investors necessarily snap up shares. In other words, added companies get pricier simply because they are index members, not because of fundamental economic reasons. As financial advisor Larry Swedroe pointed out on IndexFunds.com, the idea doesn't hold water. One study in the area was conducted in 1998 by Melissa Brown, former head of quantitative research at Prudential Securities. Contrary to popular belief, the proportion of S& P 500 Index fund assets declined from 6.7 in 1992 to 6.1 in 1997. The funds grew from 255 billion to 600 billion, but the rest of the market also grew. Similarly, Brown noted that there was a net outflow of investor capital. If all investors had kept their money in the...

What Makes a Good Salesperson

Above all, a good salesperson needs to have a passion for the markets. In your interviews, you also need to demonstrate a passion for selling (of course, prior market experience is a big plus). Once you re hired and have landed your sales job, you ll pick up the skills you need to succeed. Typically, if you re sitting on an institutional sales desk, you ll begin by listening in on client calls. There is a button on the headset that mutes you out of the conversation, and you can listen in on any conversation unobtrusively. On these calls, you ll learn the language of the business and the different styles of different salespeople. You ll also get a sense of what different types of clients expect and the Golden Rule in sales on Wall Street is to always know your client.

Senior Portfolio Manager

Portfolio managers also spend time meeting with their clients to review investment strategy and performance results. While marketing and sales professionals lead this process, portfolio managers are often an integral part of client discussions. In the mutual fund world, portfolio managers don't spend time talking to individual customers, but they are often called on to present at sales conferences and at product road shows. However, institutional and high-net-worth portfolio managers have fewer clients, and they only meet with them one to two times a year.

Walking the fine line

Capable institutional and PCS salespeople recognize that because they are servicing both the trader and the customer, they are in a very difficult spot. If the trader is happy, this often means that the customer is not, and vice versa. Part of being a successful salesperson is developing the soft skill of knowing when to stand up for the client or the trader, and doing so in a way that maintains the long-term client relationship. For example, if a salesperson is covering a demanding top-tier account that is always asking for an adjustment on a print, this will grate on the trader, who has the responsibility of making money. (When a client asks for the terms of a trade to be modified after the

Our best options for help

You must do your homework before hiring any financial advisor. The first step is to learn as much as you can about what you're seeking help with. That way, if you do hire someone to help you make investment and other financial decisions, you'll be in a better position to evaluate his or her capabilities and expertise. Financial advisors make money in one of three ways from commissions based on sales of financial products, from fees based on a percentage of your assets that they are investing, or from hourly consultation charges. You already know why the first option is the least preferred choice (if you really want to or are forced to work with an investment broker who works on commission, be sure to read the last section in this chapter). If you have a lot of money that you want managed among a variety of mutual fund investments, you can hire a financial advisor who charges a percentage of your assets under management. Some of these advisors also offer financial planning services....

What Is the Property Worth Today

Say we parachute you into Naples, Florida. You have never been there before and your goal is to find good deals. What would you do As discussed in Chapter 4, you look at newspaper ads, drive for dollars, call For Rent ads, For Sale ads, and so on. You are certain to find prospects that may become suspects, so you call one of the property owners, who says, I think the building is worth 100,000. I will let you have it for 50,000 and it needs very few repairs. But you do not know if it is really worth 100,000. So you call a Realtor who sells a lot of property in that area and ask, A three-bedroom, two-bath on Apple Street in Naples, Florida what would it sell for He replies, I've sold two in the last month, one for 99,000 the other for 102,500. You just learned that house is worth about 100,000. Still, it is important to call two or three people to verify the information you get. Another Realtor might say, Nothing has sold there in a year. The last offer we got was for 79,900. How do...

Know the customer and the traders

In order to walk the fine line, sales professionals need to be keenly aware of the actors involved in each trade. The sales-trader needs to know which of his accounts are good and trustworthy accounts. If a trader is working a large seller of a particular stock, and the salesperson makes the wrong call, the stock could plummet, leaving the desk with a big loss and the trader fuming over the bad call someone made to a fast account (a client that buys and sells opportunistically rather than reliably moving large amounts of stock through a trusting relationship with the dealer). At the same time, calls to fast customers can be exactly what the doctor ordered. Salespeople need to develop an understanding of each firm s MO, and must work to foster a high level of trust with the firm s traders. If traders suspect the ability of their salespeople, the traders may end up withholding merchandise from salespeople, opting instead to sell their merchandise to the Street (through an electronic...

What Repairs Does It Need

If you have motivated sellers but their properties need repair, you can find the cost of the repairs from two different sources from the owner or the seller (most are truthful a few are not) and from a good contractor who is licensed, bonded, and referred to you. The most important word I just used is referred. Make sure you get bids from more than one contractor who comes recommended by respected Realtors or other investors. (Again, you cannot just get bids all the time from contractors and never work with them. Likely you will close on some deals, get repairs done, and give the contractor glowing references. If that does not happen in a timely way, pay the contractors for their written bids.)

The Development or Construction Loan Usually Relies on the Permanent End Loan

You may not know which of the several types of projects to consider, or you may have narrowed it down to single-family homes. If you have picked one of several favored lender properties, then you should start to look for the best location in town where the lenders are apt to lend the most. In a couple of days of talking to loan officers and or mortgage brokers, you will be able to ascertain the type of property and general location where the best loans can be obtained. Now you are ready to start putting your talents and this knowledge together. Real estate brokers and salespeople, mortgage brokers, real estate lawyers, and anyone else interested in the real estate market should pay attention to this stage. Remember Location, Location, Location are not the three most important criteria of real estate. As I have pointed out earlier It is the importance of the location. This means that use of a location is the most important factor to value, when everything else comes together for you....

Listen to the flow of the trading desk

A pet peeve of traders is salespeople who aren t tuned into what they are trying to do. For example, say a trader gets on the firm s hoot and holler (the intercom) advertised as a seller all week. After a week of making noise and trying to get people involved, a salesperson walks over to the trader and asks what he has going on in the stock. Incredulously, the trader might say, I m a seller, I ve been advertising myself as a seller all week The sales-trader grins sheepishly and says, Can you take another 100,000 shares for sale Now the salesperson in this scenario has made two mistakes. First, the salesperson has apparently been totally oblivious to what the trader has been trying to do all week. Second, rather than bringing in a buyer, the salesperson has a seller, and in order to keep both sellers on the desk, the trader will end up having to buy stock from two sellers rather than one, not a particularly appetizing prospect. Of course, salespeople can t tell their customers what to...

Using the Development or Construction Loan to Make Sales

Planning and engineering, for example, will no doubt be beyond the scope of most salespeople. To be sure, moving from a listing to a sale can be an immense task for some salespeople on some properties. The drawbacks in marketing the property were the general economy and the price. The economy was not as strong as it was two years earlier. The price Jackson felt he could get 22 per square foot was higher than realtors had predicted a buyer would pay. The price was not high when compared to other smaller sites in comparable locations. In fact, smaller lots similarly zoned had sold for over 35 per square foot. However, the size of this tract and the fact that it could not be subdivided made prospective buyers scarce.

Reasons for Popularity and potential pitfalls

It is easier to sell In many cases, analysts, in particular, and sales people, in general, use valuations to sell stocks to investors and portfolio managers. It is far easier to sell a relative valuation than a discounted cash flow valuation. After all, discounted cash flow valuations can be difficult to explain to clients, especially when working under a time constraint - many sales pitches are made over the phone to investors who have only a few minutes to spare for the pitch. Relative valuations, on the other hand, fit neatly into short sales pitches. In political terminology, it is far easier to spin a relative valuation than it is to spin a discounted cash flow valuaton.

Why Prequalifying Sometimes Underqualifies

Although a relative few highly professional loan representatives will help you accurately address important financial and life-planning issues such as those listed above, most will not. The majority of loan reps lack the time, the intellectual acumen, and the practical knowledge necessary to guide you to your best investment and borrowing decisions. Never forget Loan reps, like car salespeople, want you to buy the products they are selling. Would you expect unbiased auto advice from the sales agent at the Buick dealer No Then why would you expect unbiased advice from the loan rep at the Old Faithful Mortgage Company

Evolution of High Frequency Trading

Darkpool Trading

His sales representative in person or via messengers and later via telegraph and telephone when telephony became available. The salesperson would then walk over or shout to the trading representative a request for prices on securities of interest to the client. The trader would report back the market prices obtained from other brokers and exchanges. The process would repeat itself when the client placed an order.

Special Information for Undergraduates

Students with high GPAs who have majored in economics or finance generally fill undergraduate sales and trading positions. Understanding economics is a prerequisite to surviving the first three months. One source reveals that she generally looks for resumes that show a willingness to take risks, sales experience, and nontraditional choices. Since most college graduates know very little about the markets at the outset, your personality is what really counts. If you come across as a confident (but not cocky), thick-skinned, good-natured person who learns quickly and can work on a team, you're a strong candidate. Liberal arts majors are rarely hired unless they have prior S& T intern experience.

ST A symbiotic relationship

Institutional sales and trading are highly dependent on one another. The propaganda that you read in glossy firm brochures portrays those in sales and trading as a shiny, happy integrated team environment of professionals working for the client's interests. While often that is true, salespeople and traders frequently clash, disagree, and bicker. Simply put, salespeople provide the clients for traders, and traders provide the products for sales. Traders would have nobody to trade for without sales, but sales would have nothing to sell without traders. Understanding how a trader makes money and how a salesperson makes money should explain how conflicts can arise. The salesperson, however, has a different incentive. The total return on the trade often determines the money a salesperson makes, so he wants the trader to sell at a low price. The salesperson also wants to be able to offer the client a better price than competing firms in order to get the trade and earn a commission. This of...

QA with an Institutional Sales Trader at a Bulge Bracket NYC Firm

The Salespeople The Salespeople Not really. OTC equity salespeople are sales-traders. Some listed equity desks also have sales-traders in addition to their block traders (who tend to transact in larger order sizes). The sales-trader is a hybrid positon part sales and part trading. The sales-trader is responsible for initiating calls with clients. I m constantly pitching new stock ideas and updating my clients with our research department s market commentary. Salespeople, particularly in research sales, for example, need to be much more familiar with the details of a stock s story. Research sales are focused on selling the firm s research capabilities to institutional clients. A significant portion of any firm s research sales commissions are generated through soft dollar arrangements, where the broker agrees to kick back a portion of the commission to pay for certain client services, such as Bloomberg terminals and other subscription services. The Salespeople

Floor brokers vs traders

As opposed to floor brokers, traders work at the offices of brokerage firms, handling orders via phone from salespeople and investors. Traders either call in orders to floor brokers on the exchange floor or sell stock they already own in inventory, through a computerized system. Floor brokers represent buyers and sellers and gather near a trading post on the exchange floor to literally place buy and sell orders on behalf of their clients. On the floor of the NYSE, these mini-auctions are handled by a specialist, whose job is to ensure the efficiency and fairness of the trades taking place. We will cover the mechanics of a trade later. First, let's discuss the basics of how a trader makes money and carries inventory.

QA with a Senior Fixed Income Salesperson

I started in an apprenticeship role, learning from senior salespeople. Eventually I had the opportunity to work with some accounts off the radar screen. I did this successfully, building my relationships from the ground up. The firm didn t have much to lose by assigning me this coverage, and potentially had a lot to gain. Happily, things have worked well for me since. Well, there s one piece of advice that I d certainly give to aspiring salespeople Don t claim to know something that you only have a peripheral understanding of. If you walk into an interview and claim to know duration, forward curves, skew and volatility smile, then you better believe that I m going to ask you about it in the interview big time. There s some upside to saying you know these concepts, but be mindful of the downside. Eventually, successful salespeople bump up against the management level, but be ready for a long apprenticeship. The time it takes varies by individual, but it also varies by market. All...

Buying Property Seller Pays Closing Costs

I have a student who sends out 100 offers a week via e-mail. About 90 percent of them go unanswered and 5 percent are answered by recipients (usually Realtors) calling to cuss him out. But 1 or 2 percent make counteroffers, and people often accept ridiculously low prices. Could you do that, too

Financing Contingencies

A Realtor's Objection A Realtor in Miami told one of my students, Wait a minute. I know you real estate investors like to put in these contingency clauses, but I'm not going to allow it. My student countered, Listen. What if a hurricane, a flood, a fire, or even vandals come the day before closing, break all of the windows, tear up the property You mean to say I'd still have to buy it even with these problems So, just please let me come by the day that we close to check that everything is still OK. I'm a professional real estate investor who's going to close on it if everything seems right, don't worry about that. Yes, it is fair to put in that contingency clause, no matter what a Realtor says.

Newspapers and Other Publications

When most people look for real estate, they browse the real estate classifieds with a highlighter, call owners or Realtors, get basic information, and, when something sounds promising, set up an appointment. While this method can work reasonably well, it also can fail for two reasons (1) if a property isn't advertised, you won't learn about it, and (2) if the ad for a property you might be interested in is not written effectively, you may pass it by without serious notice. Look Beyond the Classifieds To search for potential bargain sellers in the newspaper, go beyond the classified real estate ads. Locate names of potential sellers from public notices births, divorces, deaths, bankruptcies, foreclosures, or marriages. Each of these events can trigger the need to quickly sell real estate. If you contact these owners (or their heirs) before they have listed with a sales agent, you stand a fair chance of buying at a bargain price. (In addition, you might subscribe to the default or...

Cold Calls Directly to Owners

To learn successful cold-calling, follow the techniques of Realtors. Most successful real estate agents develop listing farms. A listing farm represents a neighborhood or other geographic area that an agent consistently cultivates to find sellers who will list their properties for sale with that agent. Agents who cold-call typically telephone property owners with names gathered from a crisscross directory, walk the neighborhood, talk to residents, circulate flyers by mail or doorknob hangers, and take part in neighborhood or community-sponsored events. By cultivating a farm, an agent hopes to become well known in the area. An agent positions himself or herself to be the first person property owners think of when they contemplate a sale.

Selecting a lender for your deal

Remember buying your first house You had to choose a Realtor or broker to work with who could show you homes and educate you on the marketplace. You called a few and interviewed a few. Some called you back, some didn't. Some were really nice, but they just didn't have the experience you desired. Some had the experience, but your relationship didn't click. Choosing a lender is exactly the same. But don't worry. We have a few tips to get you started in selecting qualified lenders. Here they are, in no particular order

Cruise the Information Highway

Today's investors not only cruise neighborhoods, they also cruise the Internet to look for properties. Thousands of websites now list properties for sale. Property buyers (or browsers) can access the Realtor's Multiple Listing Service (MLS) through Realtor.com. Virtually all real estate information that in the past has been available from Realtors, public records, newspaper ads, newsletters, and other sources is now accessible on the Internet. Nobody today knows exactly where technology will lead us tomorrow. But electronic shopping for real estate (and mortgages) has made the MLS book as obsolete as a slide rule. (For a listing of websites useful to real estate investors, see the Internet Appendix. For a quick check of techniques you can use to find owners who will sell at a bargain price, see Box 9.1.)

Drawing up a written agreement

A key factor in renting property is your written agreement. What some refer to as a standard lease or rental agreement can be found in stationery stores, office supply stores, the real estate section of any bookstore, and sometimes even through the local Board of Realtors. You can search online for forms that have usually been tried and tested. Of course, you can always go to a lawyer and have one drawn up for you, but that will not be inexpensive. After you have looked at several agreements to find the one that fits your property and that you feel comfortable using, you will see after reviewing them they all mainly deal with the same issues and potential problems. Be clear and concise.

Quick Turning or Flipping Strategy

He can borrow the money, rely on his credit, or use his cash to buy the property. He also has to hire a contractor to do repairs (or do the work himself) for an estimated 20,000. However, he goes into cost overruns, the repairs end up being 25,000 and take six months to complete. He has put 65,000 into the property, but it's still a great deal. He then puts this fixed-up house on the market, sells it for 100,000 three months later, and makes about 35,000. However, he's had carrying costs, holding costs, taxes, insurance, and other headaches. He has spent nine months worrying about the property and dealing with contractors, Realtors, and prospective buyers. He also has had to pay some commissions, so he really only has made about 27,000. Is that still a good deal for John Absolutely. However, he has spent nine months to get his capital investment back and earn his profit.

Law 5 Be Organized and Systematic Protect Your Time and Your Money

The key difference between the top performers and the rest lies in their approaches to lead generation. The best sales professionals are systematic. They dedicate a set amount of time each week to lead generation and block their time so that nothing prevents them from pursuing this key business activity. For real estate investing, I've discovered that it takes the same kind of focus. You have to set aside dedicated time systematically each week to prospect for leads, implement your marketing plan, and track the results.

The Mind And Day Of An Analyst

A day in the life of the analyst is spent delving into the intricacies of a company and an industry, which means due diligence, analysis and spreadsheets, conferences, traveling, talking to CEOs, touring factories and kicking the tires, listening to employees talk about the latest innovations or development, dialing for discourse with investors, reading the trades, observing the consumer marketplace, spotting trends, fielding calls from institutional salespeople and traders, inputting numbers into valuation models, deciding on buy, hold, or sell recommendations, and writing them into a readable, compelling report that says something useful and incremental. Pressure and stress are just a few of the occupational hazards, because millions of dollars are on the line with every stock pick. Therefore, if an analyst seems impatient or abrupt, it's par for the course.