Thornhill Wealth Forum 
 
 Real estate investors have mastered 5 key skills that have made them successful. 
  • Mining
  • Money
  • Maintenance
  • Marketing
  • Managing

Mining is finding really good deals. Deals that will guarantee an exceptional return on your investment of money and time.
 
Money means finding the funding to purchase your real estate investments. Unless you have an endless supply of money, 
it will be necessary to develop the skill of finding an endless supply.

Maintenance, the easiest to master, is getting an investment property ready to market.  Just find a good and honest maintenance contractor, train him or her to do what you want and how you want it and you are done.

Marketing is critical to the success of real estate investing. You must learn how to rent, sell or lease option the property quickly. 
Learn quickly and move the property quickly. A real estate investment sitting unoccupied can and will put a dagger in your chances of success.
 
Managing renters is probably the most difficult skill to master. Not because it is the hardest to learn but because many investors just don't spend the time and effort necessary to learn how to manage their investment properties.
 
By learning and becoming really good at each of the 5 M's you will increase your chances of investing success one hundred fold.
Add Comment
 
 
Before you decide to invest your hard earned savings into a real estate investment, you have to understand the numbers. The numbers tell a story: Is there cash flow? What kind of mortgage to select? What is the CAP rate? How variable expenses affect your cash flow? Do your homework first.
Add Comment
 
 
How good are you at staying on top of your credit card spending? Credit cards are a convenient financial tool that many of us prefer to use in lieu of cash, but they can become a thorn in your side if you're not careful. To determine how disciplined you are when it comes to spending with plastic, it may be a good idea to do a self-assessment. Here are five signs that your self-control goes out the window when it comes to buying stuff with your credit cards. If any of these signs seem familiar to you, then it's time to sit down and give yourself a good talking-to.
  
You can't leave the house without your credit cards.
This may be a sign that you are overly dependent on your cards, and that you've grown used to a certain level of spending. Do you really need a credit card every time you pop into town for a litre of  milk? When you carry your card around, it's easier to succumb to spending temptations that can add to your card balance. Try leaving it behind once in a while and see if doing so has a positive effect on your card balance and even your spending habits. You might be surprised by the results.

Every single thing you buy has to be bought with your credit card.
Have you fallen for the pitch that you should put all your financial transactions on your credit card? It's a good thing if you have a rewards credit card, and you are able to pay your bill in full every month to reap those rewards. But if you're keeping a credit card balance, then you need to think about the possible consequences of putting everything you buy on there. Maintaining a credit card balance that grows over time means that you will ultimately find it harder and harder to pay down. Many consumers mistakenly assume that their card rewards will neutralize or make up for their spending. This is not true.

Impulse buying has become second nature.
Impulse buying gets us all once in a while. But the habit can sneak up on you more easily if you always have a credit card with a high credit limit in your back pocket. In order to curb impulse shopping, you need to regain some common sense and question everything you buy for a while. One way to control your spending urges is to set up a budget and account for all the spending you do. 

You don't stick to a budget.
A budget allows you to become intimately aware of your limits so you don't exceed them, and many responsible credit card users are able to keep their spending in check because of the simple act of budgeting. But it's not enough to set up a budget; you also have to make the commitment to stick to it! Try the free TWF budget to help you.  

The idea of cutting up your credit cards makes you break out in a cold sweat.
Does it make you nervous when you think about leaving the house without your cards? If it does, it's time to think seriously about who is in control - you or your credit card. You should never feel as if you couldn't do without one in your wallet. Many folks have switched to using cash for all their transactions and have actually found it to be a liberating experience.
If you can't spot any of the above signs just yet, congratulations. You are still in full control of both your common sense and your credit cards. But don't get complacent yet; it's important for you to always track your credit card usage and how much you spend. So keep your eye on those cards!
Add Comment
 
 
It's a common dilemma: Should you put all your spare cash toward paying down debt, or build up your emergency savings-or a little of both?

It's a serious question now. If you lost your job, the average length of unemployment is about 33 weeks-or eight months. That means your emergency fund must be a priority.
But should it come first? Let's run some numbers.

Your monthly expenses: $4,000 
Your debt: $5,000 on a card at 14% interest 
You have: $500 to apply to debt, savings or both each month.

If you stashed $400 each month in your emergency fund, and made only the minimum payment on your card-that's $100, assuming a 2% minimum payment-it would take you more than six years to build up eight months' of expenses ($32,000).
And you'd still owe about $2700 on your card.

Now let's flip it. If you put $400 per month toward your card, and $100 toward savings, you'd be debt free in about 14 months-and you'd have a tidy $1,400 start to your emergency fund.

Now that's real savings, on every front.
Add Comment
 
 
  
If you are a real estate investor looking to buy investment property, it is crucial to know how to properly analyze an investment property. If you do your homework in the beginning and buy property the right way, you will be able to make significant passive cash flow. Here are six ways to help you analyze your real estate investment

  1. Determine what you would want to do with the property. Do you want to fix it up? Do you want to rent it out for cash flow? Do you want to fix and flip? Do you want to wholesale the piece of real estate? This will alter how you continue your analysis and ultimately what you do with your real estate.
  2. Calculate the market value of the property, both in its current condition and in repaired condition. Make sure to look at recent comparable sales. It is important to know exactly how much you could sell the real estate for in the current real estate market. The value of the real estate after it has been repaired is called the after repair value (ARV).Also calculate market rent for the property, in fully repaired condition.
  3. Estimate all expenses for the property. Look up property taxes. Estimate utility payments. Call your insurance agent to get an estimate for property insurance. Factor in vacancy by figuring the % of vacant units in the area and multiplying that percentage by the market rent. Also include property management fees (if applicable) and marketing costs. Maintenance costs will also need to be included.
  4. Take your market rent and subtract all expenses, not including mortgage payments. From this amount, subtract the cash flow you desire. The remainder is the mortgage payment you can afford.
  5. Using a financial calculator or a spreadsheet, calculate the loan balance on a mortgage with the payment from the previous step. Use current investment mortgage interest rates and the appropriate loan terms.
  6. The mortgage loan balance plus any cash you have to put down is the maximum you should be willing to pay for the property. You can make this offer to the current owner. If the owner declines, move on. It's not worth wasting your time if the owner is not willing to sell at a price that works for you.
Add Comment
 
 
Our economy probably needs us to shop irresponsibly again and “live beyond our means” in order to give the economy a boost. I never understand why  North Americans are the only people where the average resident consumes more than their income.
Some people blame the educational system for not having personal finance classes, but there are ways to learn outside of school too!  It’s not like my teacher taught me how to use the toilet.  I don’t know about you, but I learned because:
  • I had to (out of necessity) and was told about this fact
  • It never occurred to me that there was an alternative
  • I did it enough times so I could do it without thinking

Toilet Training (Personal Finance Style)

If you need to toilet train yourself again, here are some tips that expands from what I talked about above:
The Need to Save Money
In case you are lucky enough to not know the importance of saving money, let this post be the wake up call.  You need to save for your own sake!  Can you imagine what will happen if you lose your job and can’t find work for 6 months?  How will you pay for your mortgage?  Do you know what it’s like to live in your car?  Do you know how cold it gets at night if you live off the streets?

Stop Getting Further Into Debt
It’s so strange that so many people just borrow, borrow and borrow.  It didn’t matter where either, be it credit cards, home equity line of credit, RESP or others, people just keep taking out money they don’t have!  I just don’t get it, but why does it seem like rocket science to buy something only if you have the means?
Do you really need that car, the TV, or even that new pair of shoes?  What happened to what you already have?

Knowing What to Do with Money
Without getting into details, you know what to do when you need to go.  Money is exactly the same way.  Once it becomes second nature to save, you just do it.  You don’t think, you don’t regret and you certainly don’t ask why you save.

Getting started is always harder though, so here are some common tips that always works:
Save up all the income you receive as soon as it gets into your bank accounts
Treat your savings like a high security vault that requires maximum clearance before you ever withdraw
And best of all, lay out a logical plan (if you want, consulting with someone else could work too) so you can just follow it.
At first, you might not be perfect but with practice, everyone can become an expert!

Hey, no one is toilet trained when they are born.
Add Comment
 
 
When times are tough we tend to engage in a lot of fearful chatter. We replay limiting beliefs such as, “I can’t ask for a raise now.” Or, “I can’t make a career shift in times like these.” 
This fearful chatter is helping neither your peace of mind nor your bank account. Fearful, limiting beliefs block your inner guide and prevent you from creating positive financial outcomes, blinding you to opportunities. 

Try this three step process for releasing fear and add more ~ing to your finances. 

Step One: Identify your limiting beliefs by listening to the fear-driven messages in your mind. What limits are you buying into: "I can't get ahead"; "I'll always be broke"; "There's never enough"? 

Step Two: Release the chatter. Kick off each day with the affirmation, “Today I choose to release my limiting beliefs and stay positive about my finances.” Then, if a self-sabotaging message pops up, recognize it for what it is. Let it go. 

Step Three: Forgive. Our fearful mind loves to compare. When you perceive your finances as better than or worse than someone else's, you're creating a negative dynamic within the relationship—and in your earning capacity. So throw down an F bomb and forgive. Forgiveness will clear space to receive clarity and more ~ing. 
Add Comment
 
 
If "spending money to make money" has never made sense to you, consider the return on investing in a virtual assistant. Hiring someone who can handle your backlog of scheduling, research or administrative tasks, can free you up to maximize your income potential, whether you're an entrepreneur or fully employed. 

Add Comment
 
 
Not all debt is bad. Good debt means you are able to borrow money and repay it on time.This way you are able to 
build up a good credit record which enables you to borrow in the future.

On the other hand, bad debt means you take out a loan, but are unable to repay on time and you don't have enough money to live on. If your credit record shows that you did not repay on time it will be difficult to borrow in the future.

Add Comment
 
 
This blog entry has been contributed by Courtney Carroll from Financial Fitness

During the past several weeks I have shared with you my thoughts regarding 4 key strategies for setting you on a path to Financial Fitness.  Today I would like to share with you the 5th strategy for living a more purposeful life.  The 5th strategy to be explored and incorporated in your plan is Charity.

Charity begins at home, we have often heard that.  This strategy is often overlooked by those who are living pay check to pay check because they fear that giving will leave them with very little for themselves.  Unfortunately they do not understand the universal law that there is more than enough to go around and that those who give shall receive.  Even in the good book (the bible) it is written that it is better to give than receive and that when you give your rewards will be multiplied ten fold.

Imagine the following scenario, a man has within his grasp $20.00 and he could share a portion of this $20.00 with others who are also in need but instead he clutches to that $20.00.  The unfortunate reality is that unless he is willing to open his hands and share what he has no more will come to that closed fist.  And so it is with charity, in order to receive you must open your hands and give willing to others.  By doing so, you set the stage for more to be returned to your hands.

The wealthy in society have been doing this for years.  In fact many of them give 10% if not more to worthy charities all over the world.  They understand the universal law and give willingly, knowing that by giving they will be blessed and rewarded accordingly.

Now giving doesn’t always mean giving your money.  Money is only one aspect of what is meant by charity.  For many of us our most precious resource is our time, so giving back to your community by volunteering in a senior’s home, working with children in a group home or giving back to your school community are all aspects of giving and it is your time.

What is your time worth?  Maybe you have a dollar value of $50.00 an hour for your time.  Well if you multiply that dollar value by the number of hours you volunteer per week that is the monetary equivalent of what you are contributing.  So giving does not have to be physical dollars, it can be time.  One of the blessings that come from giving is that you never know whose life will benefit from your charity.  You get the opportunity to touch countless lives through your selfless acts of kindness.  In order for you to be truly blessed and live a Financially Fit life you must become a willing giver to those in need.
Add Comment