Let’s start by talking about borrowing money from the bank. You went to a local bank A and borrow $100 in your country currency as say its United State Dollars. This bank A charge you 5% interest yearly. Your friend goes to another bank B and borrows $100 United State Dollar at 2% interest yearly. So if you want to borrow another $100 and your friend lend it to you at 5% interest (he took loan $100 from another bank). By simple calculation, your friend is effectively earning 3% interest. (5%-2%=3%). If you hold on to this for 1 year, you are carrying over your trades over a year and yield you 3% interest rate on the principle amount.
People invest in all things property, gold, wine, art, savings and bonds. Another way to invest your hard earned cash is with personalised number plates. Believe it! There are many, many examples of proven Return On Investments. Take 1 SAJ for example. It was bought in the mid nineties for about 3,300 and it is now valued at around 30,000. Thats not a bad return of investment by anyones standards.
When it comes to keeping track of your investment and records. Forex Autopilot gives you access to spreadsheets which are up-to-date letting you see exactly how much you have profited already.
My personal results over the past ten years would have been better if I had followed 80% real estate and only 20% stocks but I am looking forward not past. I cannot deny the current situation where many stocks appear under valued when compared with the intrinsic value of the assets of the company. Whatever I do, I will do it slowly and my long term strategy will continue to have a high focus on real estate and being a landlord.
With RM1,000, what are the possibilities of investing into the stock market? Yes you can! I started investing into the stock market when I was still a second year student in university. My initial capital was exactly RM1,000.
Taking it a step further. Let’s assume that you plan to stay in your home for the long haul. Why have excess cash laying around doing very little good at all. I’m talking about the Return On Investment of you enjoying, using and relaxing in your own personel landscaped paradise. I can’t say what value that may have to you, but the credit card companies call it priceless. Imagine enjoying yourself in your time off after work or on weekends in your own outdoor living area, complete with water features, patio spaces, fire pits, landscape lighting and maybe even a outdoor kitchen. That seems to me, to be money well spent.
On the other hand, if you are working for a job that involves assembling gift items into a gift set, you may not require investing any money at all. The entire set of gift items would be provided by the company. All you have to do is put them together in a decorative piece.
It would be nice if finding private money for your real estate projects were as easy as going to a broker who would match you up with someone who wanted to lend their personal funds. Well, it is not that easy. One of the core differences a successful real estate investor and those that are not successful is persistently taking action. It is just as true here. Finding the money for your first few projects will be one of the hardest aspects of building your business. Persistently take action to find the money for your deals. Just remember that “No Money Down” does not mean free. Investment abhors a vacuum; if you aren’t putting up money, you’re going to be putting in something just as valuable – sweat (mental or otherwise) and smarts. So roll up your sleeves, and let’s go to work!