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How to Effectively Diversify Your Portfolio
There is a certain amount of risk associated with any investment. It is inevitable that you will incur at least some loss as the trends of the market change. A countermeasure or a method that you can use to minimize your loss is to diversify your portfolio. This simply involves spreading out your investments among several asset classes.
Individuals choose to create diversity through a variety of ways – they buy gold, invest in opposing asset classes, and choose alternate investments. Diversification is important as it allows you to protect your portfolio as a whole. In the event a certain sector of the market is not doing well, another segment may be developing. This means that you will continue to make a certain profit on your ventures. Here is how you can diversify your portfolio:
Build Your Portfolio
You should augment your investments at regular intervals. People typically invest with a lump-sum – they invest a certain amount of money in the beginning of the venture and then do not invest anymore. A better way to invest is with financing a specific sum of money at regular intervals, irrespective of the current share prices. This is often known as dollar-cost averaging. You buy a greater number of shares when the prices are low and fewer shares when the cost is higher. This method allows you to neutralize the highs and the dips that are a result of market instability.
Know Your Investments
One of the key points of diversifying your portfolio is to spread your finances throughout a few sectors. An additional rule to accompany this diversification is to invest in what you know. Many people tend to invest in a sector that they are not familiar with simply because it is doing well. This, however, may prove to be harmful as you are not entirely acquainted with the proceedings of that segment. Instead, you should always invest in companies and sectors that you are accustomed to and may be even use. It is even more effective if these industries have very little correlation with one another. Then, what happens to one market will not necessarily affect another trade.
Withdrawing
The above strategies will help you minimize the risk that is associated with financing. You, however, will still have to abandon an investment when certain ventures fail. It is often difficult for people to do as they have put in a great deal of time and effort in a venture. They also hope that the situation changes. You need to monitor how well or badly a company is performing. You should be able to read the signs that typically befall a company that is struggling or will go under. It is only by remaining informed will you be able to stay ahead of the game and prevent extreme losses.
There is no formula or applied theory that can truly help you determine how well your investments will do. This is why you should always seek a certain amount of security to avoid too great a loss. It is all about being smart with your ventures and making the right calls at the right time.
How to Generate Profit with Land Investments
The majority of land investments that are made are typically to build personal residential units. This is because many people are unaware of the lucrative nature of such investments. It is generally believed that only people who are independently wealthy can afford to deal with ventures in land. This, however, is not necessarily true. Land investment can turn a great profit if used in the right way. Vacant land can serve a multitude of purposes, many of which can be quite profitable. Here are just some of the way that you can use unoccupied land:
Buildings
There is always a demand for housing due to the rapid increase in population. This means that any vacant land that is suitable, is immediately an option to be used as a residential dwelling. This is especially true for urban areas. The majority of the U.S. population – over 82 percent – live in urban areas. There are also other options such as offices, health care centers, and even storage facilities. The demand for such structures continues to grow, therefore there are always organizations and entities that are willing to pay for the use of the land. An additional benefit of such building structures is that it requires very little involvement or maintenance on the part of the landowner.
Cell Towers
As people have become more dependent on technology, their need for telecommunication facilities have grown. There are now more electronic devices being used in the United States than actual people. This means that there is a greater demand for cell services. Thus, land in certain locations may actually be perfect to be used to house cell towers. Wireless real estate companies such as TowerPoint Capital help landowners lease their land to cell tower companies or to other telecommunication firms. Depending upon the location of the property, the land may be quite valuable to certain wireless companies.
Agriculture
Land investment can also provide investment in the form of small farms. This can be in the form of vegetable gardens, vineyards, orchards, or even free range farms on a smaller scale. It is unadvisable to use your land for larger farming purposes. This is because the capital that is needed will far outweigh the profits that are made as an individual landowner. Instead, choosing smaller investments where smaller patches of land are used for agricultural purposes are more lucrative. The landowner has the option to choose to install the farming processes by themselves or simply rent out the land to other individuals. In the event that a more hands off approach is desired, it is best to simply outsource the agricultural work.
There are many ways that land can be used. As mentioned, one of the benefits to investing in land is that the rental options are essentially endless. There is little requirement for any actual interaction with the individuals or organizations renting or occupying the land. In this manner, there is very little effort to be made with such an investment. These are just some of the reasons why land investment is a simpler and more profitable venture than most.
Learn the Structure Behind a $6 Million-Dollar OWC Commercial Deal in Los Angeles! Seller-Carry Transactions are Dead? WRONG!
Miracle Deals are ALIVE and Well…
And there is nothing really miraculous about win/win transactions that offer creative means to dealing with “problematic” properties.
Take for example a commercial building in Downtown Los Angeles that just went into contract for $6M. The caveat on the deal was the fact that the former owner is willing to carry a large chunk of the new mortgage! Imagine not even having to go through all the additional work of obtaining traditional financing.
Of course, deals like these don’t come often, but they do appear. Will you be ready to structure a killer deal when lady luck is knocking on YOUR door? What would happen if you came across a phenomenal property plagued with a little challenging issue? Would you be able to handle putting the deal together?
Well, if you are a Realty411 reader and regular expo guest, creative transactions are not an issue!! Realty411 fans know that real estate is 100% negotiable and that win/win structures can be created to benefit both frustrated sellers and buyers willing to turn “problematic” properties around.
(We use quotation marks around “problematic” become many issues are perceived as “problems” when in actuality they can be “opportunities” for someone willing to take on that challenge.)
At our upcoming series of Realty411 expos in California and around the country, guests will learn directly from investors who are structuring deals just like this one, which was shared by one of our featured speakers, Hector Padilla, GRI/Broker of SWI Realty, Inc.
Here is another awesome deal he recently did: He purchased a PARKING LOT in Los Angeles for $75,000 and sold it one year later for $1.375 Million. Yes, another miracle deal in the City of Angels!
Isn’t it time that you added real estate into your investment portfolio? And if you have it already, is it not about time that you stepped it up a bit to keep up with the high cost of living in California?
Realty411 is giving you the opportunity to LEARN, CONNECT and GET MOTIVATED about what real estate can do in your life. We are ready to share our knowledge with you… ARE YOU READY TO TAKE ACTION?
Realty411 hosts complimentary expos around the nation. Our events have attracted nearly 400 people. Realty411 has been hosting networking events since 2007. Our reputation as a leader in the industry is unmatched!!
DON’T MISS THESE THREE INCREDIBLE EVENTS:
NEWPORT BEACH – Thursday, April 21st – 9 am to 6 pm
Fire Your Boss for the Day and Come Work It Here.
Investor Forum and B2B Real Estate Expo – FREE COFFEE & PASTRIES
Complimentary Lunch for first 50 Guests – VIP Golf Game to follow at 6 pm
https://ocrealty411expo.eventbrite.com
PASADENA – Friday, April 22nd- 9 am to 6 pm
Find the Funds You Need to Close Deals
Celebrate Our Private Money411 Issue – FREE COFFEE & PASTRIES
Complimentary Lunch for first 30 Guests, Mingle with REI Leaders in Old Town
https://realty411oldtownpasadena.eventbrite.com
MARINA DEL REY – Saturday, April 23rd – 9 am to 6 pm
Learn from Accredited in Investors in Marina del Rey
Indoor Education & Outdoor Networking – – FREE PARKING!
Complimentary Breakfast for FIRST 60 Guests!
https://realty411marinadelrey.eventbrite.com
JUST ADDED – NEW EVENTS
Silicon Valley Real Estate Expo
https://realty411siliconvalleyexpo.eventbrite.com
East Coast Real Estate Expo in Long Island
https://longislandinvestorexpo.eventbrite.com
Midwest Real Estate Expo in Chicago
https://midwestrealestateexpo.eventbrite.com
Lone Star Real Estate Expo in Houston
Nearly 100 paid guests for this charity expo so far!
http://www.texaslonestarexpo.com/
Realty411 expos had over 250,000 views in 2015, according to
Eventbrite.com
For information, contact: 805-693-1497. We are always seeking quality educators and corporate exhibitors for our events. Please review the following information about our upcoming events.
Come for the Knowledge, Stay for the Nosh. Enjoy Savory Snacks at Our Expos for Early-Bird Guests.
Mingle With Millionaires in California.
Connect over coffee with Realty411.
Realty411 is hosting four important expos in the Golden State this April. Join us to grow your contacts in California with Realty411, the publication investors have come to know and trust since 2007.
We are sharing our SUCCESS WITH YOU next week by hosting complimentary events serving savory delights for our early-bird guests. Let’s celebrate!
SO FAR WE HAVE NEARLY 700 RSVPs for all of our California expos!
And, thanks to our media marketing partners, we expect many more…
DON’T MISS OUR COMPLIMENTARY EVENTS ON APRIL 21st, 22nd, and 23rd in CALIFORNIA.
Newport Beach, April 21st – Pasadena, April 22nd or Marina del Rey, April 23rd
** COMPLIMENTARY LUNCH IN PASADENA AND NEWPORT BEACH TO EARLY-BIRD GUESTS COURTESY OF GROWTH EQUITY GROUP!! * Coffee and pastries courtesy of Memphis Invest and uDirect IRA
https://realty411guide.com/aprilexpo
JOIN US FOR 1, 2 OR 3 DAYS – YOU CHOOSE.
