Women Get Wealthy

I recently finished reading ‘Crush It’, by Gary Vaynerchuk – a nice, quick, read which puts the whole ‘social media’ thing into a new perspective.

Gary makes it clear that there is simply no reason why anyone would not want to build a personal brand.  If you spend a fair amount of time online anyway and you have a passion for ANYTHING, you have the ability to build a brand and a following.  For the better good, for the sheer fun of it…..hell, you can even do it for the money.  : )

Maybe you have a hobby that you just love?  Perhaps, you really enjoy talking about a particular subject?  Love brewing beer?  Planning to launch a new BBQ sauce?  Can’t stop scrap-booking??  There are people out there who SHARE your passion and would likely enjoy finding more people to talk to about it (even if they don’t know it yet).

One of the best things about it, in my opinion, is that anyone can do it.  You can jump in, high speed ahead, or you can take your time, building a base, slowly.  Even if you have a full time job, a family and a million other things to do, this is attainable.

Interesting read.  134 pages – (pick it up at your local library or a used book store – it's free/low cost & RECYCLED – Happy Earth Day!!)

This property is now officially under contract.  We purchased the home back in January and executed a complete rehab - new kitchen, new baths, hardwood flooring, rear deck, etc.  At the outset, this was a 1900 sq ft, 3 bedroom, 1.5 bath.  At completion, it is now ~2500 sq ft with 4 bedrooms and 2.5 baths.  We were able to add value to the property by insulating/venting a large attic space and adding an additional full bath.

The property was bank owned and we bought it for $169,900.  An additional $90,000 was spent on construction.  3 1/2 weeks ago the property was listed at $325,000.  Based on comparative sales in the neighborhood, the market value was estimated at $340,000.  We priced the home at a discount, to set ourselves apart from the other properties currently for sale.  We also offered a 4% commission to any real estate agent who could bring us a buyer (although my clever husband managed to sell it himself)! The property is now under contract at the asking price - $325,000, with a seller assist of $5000 towards closing costs (net result $320,000). 

This was our first flip project after moving back to PA last year.  We learned a lot and really enjoyed watching the property transform.  We are thrilled to have it under agreement but, as we all know, it's not over until closing!

Many people want to invest but get stuck trying to determine whether a deal is a good one or not?  There are some simple tools, which can help to remove emotion from your decision making and leave the decision where it belongs - to the numbers. 

Now, I will admit, I am an accountant and I tend to get a little carried away with the spreadsheets.  I am pretty sure my husband thought I was nuts, when we started out, because I always insisted that we run every deal through the spreadsheet first!  Today, he carries the spreadsheets with him, while he is out viewing properties.  No matter how nice the neighborhood, how beautiful the property, if it doesn't make the cut in the spreadsheet, it is a NO-GO.

This will be part one of a two part series for analyzing potential deals.  The document attached below is specific to a 'Buy & Hold' scenario.  Personally, this is my favorite type of real estate investing.  As opposed to the 'Buy & Flip' (part two), it is a hold for the long term = true wealth creation.  The Buy & Hold has made more millionaires than any other investing approach.  It allows you to purchase a property, by only putting a % of the purchase price down and use other people's money to fund the rest.  Leverage!  On top of that, you can have a tenant(s) pay off the balance of the property and get some great tax benefits!  It's a WIN, WIN, WIN scenario!!

You will need to make at least one fundamental decision in order to use this spreadsheet properly.  What is the rate of return that you expect for a given investment?  The key here is to do better than your alternatives.  The bank is issuing 1-2% these days.  What is acceptable for you?  5, 8, 10%?  The answer is different for everyone.  Some find enough value in the tax benefit alone and will settle for a break-even deal.  Figure out what makes sense for you & your family and stick to it.

Don't be intimidated by the spreadsheet.  It is simple to use - particulary once you have tested it a few times.  ONLY change the values highlighed in PINK.  All other values are formulas and will update automatically.  You may need to shift some of the calculations, based on your specific location (property mangement, etc.). 

If you have questions, let us know!  Start looking at some sample deals - even if its just on Realtor.com and see how they look!

Attachments:

WGW Buy and Hold.xls

[WGW Buy & Hold]

16 Kb

Life is all about balance, right?

It is that constant trick of keeping all the plates spinning, in the air, at once.  At times, one plate gets a little wobbly and, all of the sudden, everything feels off and nothing is going right.  How do you steady the waters?

They say a small amount of quiet time each day can do wonders for your life balance.  I am still working  on the 'daily' bit but I can say with certainty that every time I practice some kind of yoga or meditation, I feel a significant difference.  One of the most challenging things I have encountered in life is the attempt to quiet my mind.  As women, we tend to worry.  We are professionals, wives, mothers, caregivers, protectors and dreamers.  There is a lot going on upstairs!

Now and then, my best girlfriend will forward me an installment from the 'Daily Om'.  They have some great thoughts on getting your life into perspective, quieting your mind and finding balance. 

www.DailyOm.com

What methods do you use to acheive balance in your lives?  How do you ensure that you find the time to do what it takes to stay there?