Author: twadmin

investment

Do you find yourself always getting stressed out about money? If so, it’s a good idea to start learning how to manage your money better. Whether you admit it or not and even if you think you have a good handle on your finances, the truth is, we all have our bad habits. And most of the time, these bad habits are stopping us from saving money as we should. The good news is, there’s hope for you yet. With some simple tips and changes to your spending habits, you can learn how to manage your personal finance more effectively. Read ahead to know the best and most simple tips for better personal finance management.

  1. The Golden Rule of Finance: Spend less than what you earn.

This is better said than done and something much more challenging than it initially seems. These days, things like credit cards and loans only enable us to spend more than we can actually afford. You might think that going a little over the budget can’t really affect your personal finance; you’re wrong. If you earn $25,000/year a spend $26,000, you’ll find yourself getting more and more in debt. And if you spend just as much as you earn, you’ll never have the necessary security in times of emergencies. Spending less than what you earn will allow you to save more money for the future – money that you can use to invest or even start a family with.

PRO TIP: The bigger the gap between your income and spending, the more financially secure you will be.

  1. Budgeting is your best friend.

Once you start budgeting your expenses, you’ll be amazed at how much difference it makes to your personal finance. It’s such a small habit you can start that can really affect how you handle your money. Budgeting enables you to create a more comprehensive spending plan so you can manage your money in a way that can help you achieve your goals. Furthermore, it’s so easy to spend more than you make, and budgeting is the most effective tool to prevent yours from overspending. Also, when you have a budget, you can see where your money is going. This allows you to have a better perspective on what you can change to save more.

  1. Have clear goals.

It is essential that you set goals when it comes to your personal finance. Your finances affect everything in your life, so it’s only natural that it is included in all of the goals you set for yourself. Think about what you want to do with your life and money. It doesn’t matter what you want to do – retire early, travel the world, start a family, invest your money – no matter what dreams you have, setting personal finance goals affect everything. Start by setting up a long-term goal. This can include paying off your college debt or working on your retirement plan. Prioritize them down to your short-term goals and work on achieving them. It’s always good to have the motivation to save up money.

  1. Don’t forget to invest your money.

Investment doesn’t only include stocks and risky ventures. Paying off a retirement plan, saving money, and other low-risk ventures are also forms of investments. However, if you really want to see some serious financial results, investing your money correctly can not only solve your current financial dilemmas but can also set you up for the future. If done right, with the proper investments, you can even earn money when you’re sleeping! Make more money out of your money. Have a diversified investment portfolio, learn how to trade and buy stocks, and just find ways to make your money multiply.

Conclusion

You don’t need an MBA or a degree in finance to learn how to manage your money properly. With a few small tweaks in your everyday spending habits, you can change your outlook with money in a way that will help you achieve all your long-term financial goals. All you need to do is set clear goals for yourself and have a practical and reasonable mindset.

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investment

New startups face many challenges, and one of the biggest is finding money to get your business up and running.

From paying rent, buying inventory and hiring staff, everything you need to accomplish to get things off the ground requires funding.

Unless you are wealthy, or you were left a huge inheritance from your parents, you would likely need to work to get funds.

Here are some ways to fund your new business.

Stock Financing

This is a way to release working capital from stock such as finished goods or raw materials.

Lenders purchase stock from a seller on behalf of a buyer. A borrower uses a lender’s funds to purchase products to sell.

Stock financing is a type of lending used by many domestic and cross-border trading companies.

Crowdfunding

There are good crowdfunding sites that have become popular with businessmen and inventors in the past years.

Kickstarter is the most popular, but there are sites like Indiegogo, RocketHub, Fundable and Fundly who are gaining a following.

Each site has its own advantages and disadvantages so it would be best to study each site and the details in using their services.

Indiegogo started offering fundraising campaigns without end dates. Meanwhile, RocketHub allows you to keep all the money you raised even if you don’t hit your goal.

Fundly is known for helping non-profits, while Fundable is small business friendly.

Choose the right platform for you based on your goals and needs.

Angel Investors

Angel investors are always on the lookout for the next business idea to invest in. Angel investors funded many of the largest tech companies today like Google and Yahoo.

The basic deal that you can expect from an angel investor is some share in the equity in your company.

Your transactions with angel investors must be registered with the SEC( Securities and Exchange Commission).

Venture Capitalists

Quite similar to angel investors, venture capitalists have the money to invest.

They are looking for a young and upcoming business that has a huge potential for making money.

Venture capitalists may also ask for a share of equity but are also interested in having a seat in the board or management team.

They feel that having some control over the business is the best way to ensure that the business will flourish.

Microloans

These types of loans are reserved largely for non-profit organizations.

Microloans are given by institutions to individuals who would not qualify for a bank loan.

Instead of donating to the non-profit organization, microloan organizations help individuals invest in business opportunities.

These types of loans are popular in small and developing nations nowadays.

Personal Financing

There is always a risk in starting a business which is why traditional lenders may not grant loans in certain situations.

The level of risk plus the reality that the startup owner has not invested any of his own money into the venture makes it harder for third parties to grant a loan.

If you have savings or assets, you must be willing to refinance or take a second mortgage.

Purchase Order Financing

Many factors can impact a business’ cash flow. This includes supply and demand plus seasonality of products and services.

Some companies may find themselves unable to meet a large order due to lack of finances to buy materials to produce the goods.

In these situations, a purchase order financing is a good option.

A purchase order financing company will extend an advance so that your business can buy the materials it needs for production and then collect back the money once you sell the goods.

Your company may qualify for purchase order financing if you deal with manufactured goods that stand to make a margin of at least 20% or more on the sale.

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Auto Loan

Auto-loan finance today has gone a long way since the last decade.  Today you can buy a car using your credit card provided your credit limit is high enough. However, some dealers may impose certain fees before accepting this mode of auto loan payment.  One significant advantage about credit cards is that this instrument allows zero-percent interest on purchases for a defined period. Paying the loan within the given time frame can avoid paying interest.

A standard route to make an auto-loan is through a bank.  If you already have an account in a bank, you can be offered the lowest interest rate.  Banks have branches for you to transact with, personally or online. Since you already have a file of your record in the bank, the application and approval are usually quick, since they can quickly obtain the necessary information.  Once you get the financing, even if you are still paying for the car, the bank lists you as the vehicle’s owner.

In a bank loan, you can spread the monthly amortization up to five years, although the longer the length of time you schedule your payment, the higher would be the total amount. In making a car loan through a bank, you need to show proof of an excellent credit rating for fast approval.

Another type of auto-loan finance is through a dealership car loan, offered directly by dealers to car buying customers since dealers are have established connections with various lenders who can help you get approved for a loan quickly with less paperwork.  However, according to industry experts, interest rates can go up to 5 percent higher than bank facilities. This arrangement can add up to a significant amount in the long run.

There are also other modes of car financing available to borrowers.  First, there is an auto loan with rebate. The purpose is to attract borrowers to a specific bank.  Second, there is a fast approval, low amortization car loan, on flexible payment terms, 24-hour approval for new and used cars.  The third is an “apply online fast approval affordable used car loan.” Then there a fast cash loan for a dream car.

Another type of auto-loan finance is through a lease.  Under this arrangement, a financier buys the car and leases it to the borrowing party. Fixed monthly payments are paid by the borrower to the lender.  The borrower is also responsible for all the car maintenance and repair during the term of the lease. It’s as if the latter already owns the car.

Once the lease period expires, the borrower may return the car to the lender, or refinance the car.  The borrower may buy the car by paying the remaining amount. Unlike car financing through banks, the borrower is not the listed owner.  Once the lease contract ends, the borrower may opt to purchase the car and establish ownership.

Car financing through Credit Unions or Cooperatives is another option. Cooperatives and credit agencies are nonprofit financial institutions that offer more competitive rates than banks, but one requirement is becoming a member before you can get car financing.  One significant advantage of funding through a credit union or cooperative is that these organizations are less strict than banks. A member can still get approved for a car loan even with a failing credit rating.

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INVESMENT

If you have chosen real estate as an investment tool for you it would be great to find out how you can finance your deals. We take a look at creative real estate finance as an option to get the funds that you need to start your real estate business.

We need to determine what type of real estate investor, you want to be. There are ways to go about it where you can either earn quick cash or build passive income. We look into a strategy that can give us the best of both worlds, earning cash and have passive income as well.

Lease Options Strategy

This option can apply to any kind of real estate. This is one of the best strategies for real estate finance because there is almost no competition because so few are doing it. You can get cash outright and it can help build you a long term asset. Passive income can also be achieved, which is always the better alternative to a one time profit on a sale. As an investor, you have control over the property, so you don’t have any possible issues with landlords. Since only a few are into this type of strategy, you can expect to have a larger pool of buyers for your property. You don’t own the property so you don’t need to put out any cash.

A lease option is simply having a lease agreement on one hand and a purchase agreement in the other. With this strategy, a buyer leases a property for about 1 to 3 years with an option to buy the property on or before the end of the lease agreement.

Using this strategy has a 70% rate of having the property sold by the one who started out on a lease. Lease options also are the best to use when sellers have no equity in their home or are behind in monthly payments. They may be trying to buy another home but can’t afford it. They might have gotten a job transfer and they need to move out quickly.

Sellers can benefit from lease options by getting a full price for their home. They can also get a non-refundable down payment and build equity every month. There is continuous cash flow and they keep the title to their home. Buyer will be responsible for the house so there are no to little maintenance costs for repairs. Owner does not need to manage the property and can charge a higher rent than usual.

Buyer benefits can be awesome with this strategy as well. A low down payment which can range from 3 to 5% as compared to 10 to 30% with other forms of financing. There are no strict bank qualification requirements and price of the lease is fixed for the period of the contract. Lease money is working for the buyer as lease credits that they can use if they decide to purchase the property. The down payment is also credited towards the sales price if they buy. They will also benefit from the appreciation of the property which will not be added to the cost of buying, since this is fixed from the start. This is also a tax free transaction since this is only a leasing.

As an investor, you can profit 3 ways with a lease option deal. You can mark up on the down payment, the monthly payments and the final selling price. For example, you agree with the seller on a $200,000 sales price, $2,000 down payment and monthly payments of $1,200 on a 3 year term. You then make an agreement with a buyer with a sales price of $220,000, downpayment of $8,000 and monthly payments of $1,500 on a 1 year term. You earn profits as an investor if the purchase is made after a year. What’s amazing with this lease option strategy is everybody wins. The seller, buyer and investor enjoys their benefits from this type of transaction.

Based on what we have shown, lease options as a strategy to finance your real estate investment is a great strategy to apply that apparently not many are using. Many are still going for the traditional wholesale and house flipping which only gives you a one time profit.

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investment

We all know how important financial statements are in a business. These reports include two things that can’t be left out: accounting and tax.

Tax accounting is a group of accounting methods that focus on taxes and not on the information in financial statements. There is a different way to compute tax expense in your financial statements due to the accounting methods being used. When it comes to your tax returns, rules are followed based on income tax legislation of your country.  

A company cannot be charged tax if they don’t have the cash to pay for it. On the other hand, taxes are charged to companies that do have the ability to pay.

Accounting and tax strategies can help most startups get more out of their business by avoiding unwanted expenses and stay clear from litigation due to tax laws.

Some Tax Accounting Strategies You Can Apply

Good accountants can help business reduce their tax expenses. Hire a great accountant from the start, it could be too late to look for one when the business is already headed on a downward spiral due to wrong accounting strategies and practices.

Most business owners would want to focus on marketing and growing their business, instead of having to do bookkeeping every day. Having a great accountant can be considered as one of the pillars that you need in order for a business to have a good foundation. The other two experts that you should have on your team if you are a startup company is a lawyer and a marketing expert.

You can outsource to save on cost or choose to invest in hiring these 3 experts that may be good for the long term.

Financial and tax planning should be done at the beginning of the year to give business owners a basis on how to make the right decisions on how to handle these situations.

A great accountant can help in picking out the right accounting software for your company and register your business with the proper tax authorities. Advice can also be given on what type of business entity gives the most tax deductions. If ever a business starts out as a single proprietor, they can make it a goal to become a corporation for better tax benefits.

Picking the right software can help but the more important element is the knowledge of tax laws that you can apply in order to reduce their tax expenses.

Having accurate accounting practices can help in reducing expenses on tax payments. Imagine having books that are not reconciled or have entry mistakes that can make you pay double the amount that you should. A small mistake in putting an entry as income instead of investment can get you in trouble. This is why having the best accountant is crucial in running your business. A business may have different departments, but the role of accounting and finance is important to keep a business running smoothly.

There are businesses who get letters from the IRS containing notices regarding their tax liabilities. Ignoring these notices can become a bigger problem down the road. Experts can help with interpreting the notices correctly and help in reducing the penalties on their tax returns.

An audit by the IRS can be quite a frightening experience. An accountant or a tax lawyer can represent you in these tax audits. This can even result in getting a tax refund from the IRS. Scammers also abound, there are criminals who pose as IRS agents and harass business owners. Professionals know the basics and can spot a scam miles away. The IRS does not make calls to contact taxpayers. They always communicate through registered mail, so it is best not to just throw these notices or letters away because they are legit.

Following the plans and strategies laid out by your marketing expert, lawyer and accountant can help keep your business going in the right direction. Tax accounting is a delicate area that a business can’t just set aside. There could be great consequences if you fail to do things according to what the law provides. We all want to avoid the filing of cases and litigation procedures that may arise if we neglect this basic part of your business process

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INVESMENT

A financial report is one of the more complicated papers to write and prepare for. It gives detailed information on the income, cash flows and balance sheet.

In order to come up with the best report for your directors, managers, investors and analysts, proper steps and preparation should be done and we share them with you below:

Getting Organized

Before you start making the report, you need to select 

the time period. Is this an annual report, quarterly or monthly report? Companies have details regarding this in their articles of incorporation and bylaws. This will give the information on how often financial statements should be prepared.

Asking the advice from superiors can also help because they may prefer a different time period as to what is written in the bylaws.

Once a date is clarified, ledgers should be updated to match the time period chosen.

You now need to get yourself organized by sorting out all receipts by month. Next, you should print out all of your bank and credit card statements. Make sure to attach receipts to a related statement.

All sales and purchases should be put on record. Bank reconciliation should be updated, making sure that all accounts have been processed.

Focus on liabilities that may have been left out including wages that have not been paid and services without any invoice. Record this information in the financial statements.

Preparing The Balance Sheet

A balance sheet includes relevant information on the liabilities, assets and equity accounts. The date and name of the organizations should be included in the title of the balance sheet.

There is a proper format that needs to be followed. The sheet is divided into two parts, one part will have your assets and the other part your equity and liabilities.

The top of your balance sheet should focus on assets. All current assets should be listed here, plus their subtotal. Next to be listed are the non-current assets and their subtotal. A sum of these two parts should be reported as your “Total Assets”.

We now focus on your equity and liabilities. All current liabilities should be listed which may include accounts payable, short-term loans, and accrued liabilities. Come up with a subtotal of current liabilities.

In the next section, long-term liabilities should be listed and subtotaled. These are payable notes and long term debts. Your “Total Liabilities” should contain current and non-current liabilities in summary form.

A list of all equity sources should be prepared showing the amount of money that may remain if all liabilities were paid and all assets sold. Come up with a sum of total equities with liabilities.

The figures in “Total Assets” and “Total Liabilities and Equities” should be equal on the balance sheet. If they are not balanced, review all items listed to find out where the discrepancy occurred.

Preparing The Income Statement

This page would include all information relevant to earnings and costs for a specific time period.

Start by listing all sources of income and the amount of money earned. You can be creative by adding information like data on regional sales or top performing sales teams.

You now need to calculate your “Gross Profit” figures. To do this you must calculate the cost of goods sold. This figure should show the total cost of manufacturing your product or providing your service to customers. Details like labor, materials, shipping and all other added expenses should be taken into account here as well. When you subtract the cost of goods from the total revenue you now have your “Gross Profit”.

Operating expenses should be calculated next and subtract the amount from gross profit. This figure is labelled as “Profit Before Taxes”.

The final part of your income statement should include retained earnings, net losses and income from the day the company started.

Preparing Statement Of Cash Flows

This is your final statement in your financial report. Start by listing the operating activities of the company. The next section should include investing activities that must be in line with the balance sheet. The last part of this section should show the financing activities that are in line with the equity presented in the balance sheet.

The last section “Decrease or Increase of Cash” should be a sum up of all the categories. Notes can be added such as the future outlook for the company, pension plans and best accounting practices

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investment

What is the market outlook for real estate commercial today? Globally, there is economic growth that leads to better and more profitable business in real estate. Morgan Stanley notes that revenues on the property market returns are expected slowdown as income growth becomes the primary driver of returns.

Changes in the structure of e-commerce and aging populations will continue to influence growth patterns globally, and a favorable environment for real estate investment worldwide is expected this year and in the coming years.

Real estate commercial is a booming business in any part of the world today. Every a major city has its commercial real estate program, and the property market includes restaurant s, hotels, cafes, resorts, private parks, commercial buildings, offices, hospitals, malls, developed residential subdivision areas and all others.

If you are in the real estate commercial today, your clients can be found in the following sectors:
The landlords: find those in your area who are planning to expand their investment portfolios by property type or by location. Get to know their areas of concern, their activities and investment plans.

The tenants are a potential group to do business with since they are an active sector in the occupancy market. You can offer either a professional leasing service or an occupancy planning service. Find a database where you can get in touch with the tenant groups and type of businesses they are engaged with for at least a year.

Business owners. Some business owners have specific needs when it comes to real estate commercial today. Some are looking for new locations, while there are those that need a storage facility or warehouse. Business owners related to the property market such as hotels and restaurants are one of the best groups to do business.

Property buyers and sellers. If you are a licensed broker, this is the group that you should be in constant contact with most of the time. Significant changes in the property market are mainly a result of the involvement of property buyers and sellers, with new buyers needing new locations, and sellers who are looking for right buyers.

The property developers are the ones who look for large areas where a mall or a housing area can be developed and built. Brokers who can finalize the sale of land to developers earn attractive commissions.

If you intend to engage in real estate commercial business in a specific country, it is a must for you to know more about the laws about land and real estate ownership. The changing global business environment could also change the requirements of a country.

In the Divergent Market Cycle model presented by Morgan Stanley, six areas of concern are involved, namely: peaking, wakening, falling, bottoming, accelerating and decelerating. We find for instance a peaking of real estate trends and opportunities in some parts of the globe such as in Tokyo, Melbourne, Paris, Osaka, Budapest, and Sydney, while a falling in Singapore, and London.

Regardless of the type of real estate commercial transaction, the property market will always be a robust market where the potential for doing good business is high, whether from the standpoint of the broker or the real estate investor.

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INVESMENT

Investing in the Stock Market is a specialized type of work. It’s not for everyone even if wealth could allow one’s hand to dip into this market. If you are new in the stock market business and want to try investing, then you need to know some fundamental principles. Unlike other companies that would allow you to relax and engage in other business activities in a day, investing in the Stock Market needs a 24/7 type of commitment.

Your role as an investor would be to be alert to notification of the changes in the market every minute even if you are engaged in other business concerns. Savvy investors in the stock market have developed a strong sense of awareness of what’s happening in the business every second, minute and hour of the day. The market is primarily a trading market, where buyers and sellers trade on specific stocks.

If you have a sharp view of the stock market business and want to proceed even if you are a neophyte, you will need a ‘partner’ usually a broker who is experienced in this business. Trading is done in an exchange center such as in the New York Stock Exchange, where brokers deal with both buyers and sellers. The amount of money you can place an investment in the stock market will determine the type of broker or financial adviser you will need to guide you in succeeding in the business.

If you want to make the stock market work for you, you need to accomplish some crucial steps in the process and engage with a good broker who can also deal with sellers. This includes finding the right kind of stock for you that can suit your investment budget, and see the appropriate channel where you can put in your funds.

But if you have been in this business for some time and have accumulated some knowledge, the relevant keywords you need to remember to include a sense of proactive alertness of the changes occurring in the market. An investor with a significant amount of investment portfolio, you will need an established financial institution to provide you with a financial plan.

Institutions that can provide a financial plan for stock market investors have an extensive experience in stock market investing such as Wells Fargo or Goldman Sachs. Large banks charge a fee for their services, usually one percent of the assets. If you are well guided by a broker-dealer, you can purchase an IPO just before the price skyrockets.

Should you decide to make a test investment by placing a limited amount of money in the trading market, you can pick the small companies that offer a relatively lower investment for a potentially significant return in the future. The NASDAQ and New York Stock Exchange contain lists of such small-to-medium size companies that accept investments from new investors.

If you want to invest in the stock market outside the United States, you need to know the market exchange culture and rules of the specific country, and the current index used in the daily trading. This includes identifying the price and volume indicators of the particular market.
Whether in the US or other countries an investor should always be guided by an experienced investor or broker-dealer.

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investment

Essentially, stock financing options are financing stocks for importers and exporters. It is a part of a global business where buyers and sellers come to a particular place to purchase stocks of manufactured goods.

It is different from the stock market business which is primarily a trading market, where buyers and sellers trade on specific stocks. Trading happens in an exchange center such as in the New York Stock Exchange, where brokers deal with both buyers and sellers.

Trade Finance Global describes stock finance as a process where financiers or lenders purchase stock of finished raw materials or goods from a seller on behalf of the buyer. Stock finance provides the working capital to enable the purchase of a stock of products that would be exported to the buyer.

Stock financing in the stock market is when an individual wants to invest in stock market trading and needs to add more cash required by the trading market by engaging a financing company in seeking a loan for the investment project. This venture is riskier than in the stock financing option for the purchase of goods to be sold to a ready buyer market.

The amount of money one can place as an investment in stock market trading will determine the type of broker or financial adviser one will need to guide the investor in succeeding in the business. If one is an investor with a significant amount of investment portfolio, the investor will need an established financial institution to provide him with a financial plan. If the risks are “good,” the financial institution may bankroll a part of the investment. This financing move is one option.

However, when an investor goes into the purchase of manufactured goods intended for sale to a buyer or market, he may avail of a limited period revolving facility where cash can be accessed whenever needed within 30 to 90 days. This option is not strictly a stock financing option but is technically known as invoice finance.

Stock finance facilitates business transactions in cross-border and domestic trade using available financing tools such as import bills for collection, letters of credit, shipping guarantees, pre-shipment export, and invoice factoring and discounting.

Unlike in the stock market trading, stock financing could be used to purchase commodities, cars, electronic products, furniture, watches, wood, and other “hard products.” Stock finance works when a buyer decides to buy goods from an exporter or supplier. The buyer opens a credit line with a lender, and the lender pays the supplier as the latter sends the products to the buyer.

In stock trading, an investor watches out for Initial Public Offerings where large companies open their stocks to the public. If well guided by a broker-dealer, the investor can purchase an IPO just before the price skyrockets. Banks engaged in assisting investors in putting their money in an IPO like Stanley Morgan usually charge investors a fee for their services. Savvy investors in the stock market have developed a strong sense of awareness of what’s happening in the business every second, minute and hour of the day.

These two essential types of stock finance options are designed to assist businesspeople in making their ventures successful.

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investment

As reported in Investing Answers, McDonald’s, one of the most popular fast food chains, actually derives most of its profits not from the sale of food but its property assets, since McDonald’s premier locations have one of the highest resale values in the world.

Engaging in a real estate commercial transaction requires a knowledge of the country and its people and the specific culture of a place where the property is located.

If you are doing real estate business in the United States, the existing laws may vary, for instance in California compared to New York, but in general, all the documentation and paperwork can be quickly taken cared of by specialists in the commercial real estate business.

In other countries like Mexico, one has to connect very well with influential people before one can do good business in real estate. In southeast Asian countries like the Philippines, foreigners may buy and own real estate property, like a condominium unit, but may not purchase and possess the land itself. The same principle could apply in other countries outside the United States.

If you intend to engage in real estate commercial business in a specific country, it is a must for you to know more about the laws about land and real estate ownership. The changing global business environment could also change the requirements of a country. Keeping track of the changes in any state where you intend to do business could keep you ahead and alert to these changes.

You have to decide whether you want to engage in the commercial real estate as a broker or an investor (or both). Whatever your decision is, you need to have investment money on hand at all times.

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