We’ve all been there, or at least I have.  You think you’re ok, then you’re hit with an unexpected (or larger than expected) expense and you have to find some extra money.  If you have good credit, you have more possibilities.  If your credit is s struggle, you might feel hopeless.  Fear not  – we all have options!

There are several basic types of loans.  Depending on your credit score and timeline, some options will be more attractive.  Unfortunately I have gotten into a financial pinch once or twice, so I have done my homework and found some ways to get the money quickly and safely.

Secured vs. Unsecured Unsecured loans are based on your ability to repay the loan and your financial stability, and the bank doesn’t require any material items be attached.  Secured loans require collateral to ensure that you will repay the loan – a car payment uses the automobile as collateral, so if you don’t repay the loan, the bank will repossess your car.

Line of Credit     Lines of credit are different than a conventional loan because they will allow you to tap into it as you have a need instead of giving you a lump sum up front.  Your choice will depend on your plans and need, as well as your ability to manage cash flow and repay debt.

Open-Ended versus Close-Ended

Open-ended loans are also called revolving credit.  The borrower is able to make payments and take out additional money within the terms of the agreement.  Close-ended are for a specific amount and terms set at the beginning of the term, and they don’t change.

Conventional

Conventional loans are determined at the onset and specific terms are set for repayment.  Basically you borrow a specific amount and repay a fixed amount over a period of time.

Payday Loans

Payday loans are small, short-term loans, secured by the borrower’s next paycheck.  They are typically used to cover emergency financial situations aren’t advised otherwise.  They carry significant risk for the lender, therefore carry higher rates and penalties.  Be very careful with Payday Loans.  They can turn into a nightmare faster than my family at the holidays!

How can you get the loan you need?  There are a few factors you need to consider when deciding which loan is best, and steps to take to secure it quickly.

• Credit score
• Repayment period
• Financial need / Amount of expense

When taking all of this into consideration, you will make the best decision to ensure you maximize your loan potential while minimizing the overall cost.

Day 1 – Get Your Credit Score

If you don’t know what your credit score is, you should get a report.  CreditKarma.com is a free online resource and valuable tool.  I subscribe to it, and I get email alerts if the status of my credit changes or anyone makes an inquiry.  And while it’s always good to check on it yourself, I like knowing that they will tell me if anything comes up.  Did I mention it’s FREE?!

The higher your credit score, the more money you will potentially be able to borrow and at the lowest rate.  If your score is less than perfect (over 650 is preferable), don’t worry.  There are ways you can fix it and regain control of your finances.

• Get a credit card if you don’t have one.  Credit scores are based on your loan repayment history.  Get a card.  Make some charges.  And pay the bill on time.
• Add an installment loan, like a car payment.  Again, on-time payment is essential.  Once I paid off my car, my credit score jumped up 20 points!
• Pay down your existing cards.  High balances on revolving credit are a red flag to creditors that you are not able to afford your spending.  Pay down high balances.  Try not to let your balance be more than 30% of your overall credit limit.
• Check your limits and make sure you are being offered all of the credit you’re due.  Having higher limits doesn’t mean you have to spend more.  It shows that you are a good risk.
• Use your old cards with longer credit histories instead of just relying on new cards.  History matters and showing a long-term relationship with a creditor is a good thing.
• When reviewing your credit report, dispute any old negatives and make sure you correct any significant errors.  Take the time to make sure your report is right.

Want a surefire way to get out of debt and have great credit?  Pay your bills!  Do it now!  Fixing your credit can take some time.  But if you’re already in good financial shape, your next steps to getting the loan you need are relatively easy.

Also, did you know that your insurance rates are tied to your credit score?  I found this out the hard way.  After some frivolous (but so much fun at the time) spending during my college days, my credit score tanked and my car insurance rates doubled.  That’s a lesson I wish I wouldn’t have needed, but I pulled up my big girl panties and made some changes and got my credit in check.

Day 2 – Join a Credit Union

Now that you know your credit score, you have negotiating power with the lender.   I would suggest getting your loan through a Credit Union.  They are similar to a bank, but instead of being a customer you’re a member.  Credit Unions answer to the members.  Banks answer to profitability.

Not a member of a Credit Union?  Signing up is easy.  And since you have already checked your credit score and corrected any errors, you should have no problem opening an account.

1. Credit Unions base membership on a commonality – such as where you live or work.  Find the CU that you are eligible to join.
2. Ask for an application and get started.  You will need your identification and a small initial deposit.  Mine was only $5 to join … really.
3. Start using your account.

Once you sign up you are eligible to utilize all of the member services.  One of my favorites is the no-charge ATM.  I can use any Credit Union (not just my own) ATM and there is no service charge.  ATM fees can add up in a hurry, so this is awesome!

Credit Unions are competitive and offer great rates on auto (mine was 2.99%), student, home equity, and personal loans.  They typically offer online bill pay options as well, so once you get the loan you can set up repayments on auto-pilot.  If you haven’t started paying your bills online, try it out.  It will change your life!

The Visa card I have through my CU only charges 9.5% interest.  The only condition for the fantastic rate is that I pay online.  PLUS I get 1% cash back every year.  It’s automatically deposited onto my card every January – yay!  Pretty appealing and the only requirement for membership is that I live or work in a particular county.

You know your credit score.  You’ve enrolled in a Credit Union.  You’re well on your way to getting that loan.  Can you really have the extra $10,000 that you need tomorrow?  Yes!

Day 3 – Apply for a Personal Loan

Credit Unions offer a variety of loan programs, so do your homework and figure out which one is best for you and your needs.  But if you need extra money for an unexpected expense, home improvement project, or maybe just an escape to someplace warm (I live in the Pacific Northwest)  a personal loan is a great way to go.

They are typically non-collateralized (no security or equity needed), so they are great for someone who doesn’t want to tie up, or doesn’t have, the equity in their home.  I bought my house a little over a year ago, and since values haven’t increased I can’t get a Home Equity Line of Credit.  I think a lot of people are in the same position.

Personal loans have a defined repayment period, and it is often up to 4 years with a minimum payment required.  However, there is no pre-payment penalty so you can pay it off as quickly as you want or are able to.

Interest rates on Personal Loans at my CU start at 10.99%, so it makes a lot more sense than using your credit card for the expense.

More often than not, the Credit Union will be able to approve your Personal Loan application the same day, so you will be able to access the funds immediately.

Don’t believe me?  I did it, and so can you.  I wanted to consolidate debt from higher-rate credit cards, and I went to my Credit Union for a loan.  Before I walked out the door the money was in my checking account.  Since I was already a member and they had access to my credit score, I got $10,000 in under an hour.

Don’t Risk Your Money

I know there may be quicker ways to get $10,000 … but three days is pretty fast, and you could actually do it in less time (like me in under an hour).

In our economic times, people are turning to risky loans because they think they are the only alternative.  While the fast money might seem attractive, the risks can outweigh the rewards in a hurry.  According to a credit industry survey, Payday Advance Loans average 300% APR.

This is one step away from a Loan Shark (or my grandma)!  Maybe they won’t break your legs if you don’t pay, but they might as well.  300% is insane!  Especially when you consider you can get a Personal Loan from a Credit Union is the same amount of time for as low as 10%.

Advances on your credit card may seem attractive because of their convenience, but they are expensive.  And it’s some of the highest risk money when you are using your credit card like an ATM.  They usually offer an initial low “teaser” rate, but then quickly jump up from 1-7% higher than the interest rate on the credit card.

Convenience is a dark mistress and usually costs you dearly.  And no one wants to borrow money from their family members (have I mentioned my family holidays?!).  So take some time and get the right loan at the right rate.  You can still have your money quickly, and it will save you in the long run.  And paying less for more always sounds good!

Easy as 1-2-3

I think we all have three days (or less) to get a $10,000 loan.  Remember the simple steps:

1. Get your credit score
2. Join a Credit Union
3. Apply for a Personal Loan

Securing a loan in under a week may seem beyond possibility, but it’s not.  I’ve done it and so can you!

Everyone needs money to fulfill immediate needs…

…state and local governments are no different as they are responsible for providing services, law enforcement, etc for their residents.  And a large portion of this revenue is generated through property taxes.  Budgets are created based on the constant income, and they fall short when people fail to pay.

So how does the government cover the shortage?  Some counties sell Tax Lien Certificates (TLC).  Various county governments will auction TLC to cover the deficit.  They offer a guaranteed rate of return and are secured with real property.

Although this is not a new concept, it’s not well-known or understood.  However, banks and savvy investors have been buying TLC for over 100 years, and they are often seen as one of the investment world’s best kept secrets.  Rich Dad Poor Dad author, Robert Kiyosaki, discusses the benefits of TLC in his books.

How is this possible?  When people are behind in paying property taxes, they are hit with high interest rates and fines to “encourage” timely payments.  In addition to high interest rates and fines, they must repay within a set timeframe or the property will be foreclosed upon.

What does this mean to you?

• You can purchase the government-backed, real-property-secured, guaranteed-interest-rate certificates at auction (in effect paying the property taxes for the owner).
• The County gets the tax revenue, and you hold a tax lien on the property.
• The interest rate is set and guaranteed by the government (and is the responsibility of the property owner), and they can range anywhere from 8-50% depending on the area.
• Once the back-taxes are paid, you get your initial investment plus the interest!

What are the drawbacks?  8-50% guaranteed interest sounds too good to be true.  As with any financial decision, you need to know the risks.  While the likelihood of you losing money is extremely low, there are some things to consider.

• Your money isn’t liquid.  Until the tax payer comes current on the property taxes with penalties and fees, you don’t have access to your money.  This can be anywhere from 6 months to 4 years, much like a CD.
• You could own hard to sell property.  If the taxes are not repaid and the property forecloses, you as the tax lien holder could acquire the property through the foreclosure.

I have read stories of people quitting their day jobs after learning how to generate income buying Tax Lien Certificates.  Maybe they are too good to be true, or maybe they have a larger amount for their initial investments and have a greater capacity for risk.  Regardless, I believe if you are willing to take some time and do your homework you can make money (and if you really invest time and effort, A LOT OF MONEY!).

If this has you wanting to learn more, now is your chance.  With a few simple steps and some due diligence, you can be on your way to making money and securing your financial future.  According to Warren Buffett “The rich invest time.  The poor invest money.”

Take your time, and you can do this right!

So…want to get started?

I have had my real estate license for the past 7+ years, so I am well-versed in real property, liens, foreclosures, and real estate law.  Even with my background and knowledge of title reports and legal descriptions, I invest in TLC only after doing my homework.

After reading this, you will be well on your way to understanding the system and have a solid knowledge base to start researching possible investments.

To begin the process, you will need to answer these questions:

1. What is my target market?
2. When and where are the auctions held?
3. Where can I get a list of the properties and their descriptions?  Are there any unsold certificates available from the previous sale?
4. What are the rules of the sale?
5. What is the interest rate and how is it calculated?

1. Identify Your Target Market

Some of the hardest hit real estate markets are in Arizona and Florida, and they happen to be two of the states (plus the District of Columbia) that allow the purchase of Tax Lien Certificates.

Maricopa County in Arizona (including Phoenix, Scottsdale, Mesa, and Tempe) has one of the highest delinquency rates of property taxes, and sells a high volume of Tax Lien Certificates at an interest rate starting at 16%.  As of March 9, 2012 they have over 30,000 properties on the list.  As a first-time investor of TLC, this is where I would start.

 2.  Auction Basics

Find out where and when the auction is being held for the County you’re interested in.  The Maricopa County Treasurers Office held their annual online auction on February 6, and a number of the certificates were left unsold.  You may be able to purchase the certificates directly from the Treasurers office.

3. Property List

Wherever you want to invest, you will need to get a list of the current properties from the County Treasurers Office.  Some are available online and others through the mail.   Many times there is a nominal fee to receive a copy of the list.

Once you get the list, you will need to narrow it down.  There will be residential, commercial, and raw land listings included.  So depending on your comfort level and understanding of real estate, this is a great place to start.  In the off-chance the property goes into foreclosure and you become the owner, it is best to know what you are getting and if it would be something you could liquidate or use.

Another way to select target properties is looking at the “Amount Owed” versus the “Assessed Value”.  Ideally you can identify properties with little owed and a high value.  An owner is more-likely to repay the taxes quickly, so you would get a return on your investment without a long wait.

If the property does end up going into foreclosure, a higher assessed value can mean more money for you down the road.  Make sure to view some comparable properties to help you determine that actual value if you were to sell it in the future.

You are responsible for doing the necessary due diligence and educating yourself on the properties.  The worst case scenario would be ending up with raw land in the middle of the desert that you can’t sell and are now responsible for taxes on, or acquiring a property that needs large amounts of additional money to get into sellable condition.

Research shows that 98% of tax lien certificate holders receive payments to the value of their investments within two years.

You will need to put in the time to research the properties and make determinations on the risk versus the reward.  The initial investment of your time could prove the most valuable in securing your future.

4. The Rules of the Game

Every auction has rules you need to know before going in.  In some markets, the auctions are based on the interest rate.  The auction will start at a set percentage and go down until they have a bidder that is willing to take the lowest interest rate.

By committing to your target area, you will always know the rules.  Until you are either comfortable with the process or have a large sum for your initial investment, you are much better off purchasing within a specific area.

You may be required to register as a bidder with the Treasurers office.  Once registered you are given a bidder number and password so you can login to the bid site and bid on certificates you are interested in.  The auction will “close” on a specific date or time and you can make entries up until that point.

Cash is king at an auction, and you must either bring cash or a cashier’s check to finalize the sale of the certificate.  Personal checks are not accepted.  Some require the money on the spot, and others give you up to 72 hours and will allow an auto-withdrawl from your account.  Know this before you go in so you are prepared.

5. Finding Out the Return on Investment

Every state and county sets their interest rate and determines how it is calculated.  To use my example of Maricopa County, the base rate is 16%.  Depending on the number of active bidders on a property, the interest rate can go down to zero.

You must know your tolerance for risk before going into any auction.  If your tolerance is high, you may be able to take a lower interest rate in hopes that you will end up owning the property in a foreclosure.  You could potentially own a home worth $70,000 for a $2,000 investment – that’s a huge return on your investment!

If you have a lower tolerance level, it would be wise to set your “floor” interest rate and stick to it.  Even if you end up at 8%, that is much better than investing in a CD, leaving your money in a savings account, or investing in a volatile stock market.

In Iowa, the interest rate is 2% per month, so if the taxes are delinquent for a year your return on investment is 24% – which is fantastic.  Every state and every county calculate interest differently and have a different base rate.  In going back to the first step of knowing your target area, you will have a solid understanding of your possible ROI.

Security in Uncertain Times 

The economy has taken a toll over the past few years, and very few have been fortunate enough to avoid financial fallout.  But there is hope and there are options for creating wealth if you are willing to look for opportunities and put in the time.

I know that Tax Lien Certificates are a way to do help achieve financial freedom.  There is little risk involved and the rewards can be great.  As with anything worthwhile, you have to be willing to invest time and energy.  But with the possible upsides, it is definitely worth considering.

You now have a solid understanding of what Tax Lien Certificates are, what they can mean to you, and how you can purchase them.  So what’s stopping you?  Where else can you find low-risk investments typically achieving 15-50% annual returns?  Put in the time, do the work, reap the rewards.  It all sounds simple and in honesty, it is.

A few recommendations -

If you read my article in detail, you’re not only HOT for learning more about how to cash in on one of the safest and most profitable REAL business models out there but you probably want start right now! And why not…thousands of people out there have created a passive stream of income with tax lien certificates (and others, REAL wealth!).

So…without further a due, two great reads you got to get your hands on:

1. Melford & Concetta Bibens’s  “Tax Liens Made Easy” (taxliensmadeeasy.com). Great course full of top notch WORKING strategies on how to make it big time with tax lien certificates. Melford and Concetta have truly done an outstanding job in teaching people with zero experience and little cash to make it big in this business. Worth every penny!

2. Larry Loftis’s book “Profit by Investing in Real Estate Tax Liens: Earn Safe, Secured, and Fixed Returns Every Time” is in my opinion one of the leading books on the subject. Fresh, unique, out-of-the-box strategies, all well explained in much detail and based on REAL life  experience.

Larry walks the talk so to speak! The guy manages a tax lien pool of over $12 Million and knows every trick and strategy out there. He has been cited as a tax lien expert in The Wall Street Journal, Entrepreneur magazine, Wealth magazine, Msn.Money, TheStreet.com and more. You can grab a copy of his book at Amazon.com.

Save yourself the $399 and don’t buy the program.  What they don’t necessarily tell you in the infomercial is that there are ways to buy without spending your own money (a tricky use of semantics), but you will still need cash at closing.  And if that sounds good to you, I’ll tell you about the options.

But I’m a realist, and I like to give you practical choices.  So while I will let you in on the “secrets”, I will also tell you about programs you can take advantage of that actually offer zero down.

What the infomercials will sell you:

• “Subject To” – You buy houses “subject to” the existing financing.  So you leverage other people’s credit and take ownership of the property with the original terms of the note with the initial lender.
• Lease Option – In a nutshell the buyer rents the property for an extended period of time, and has an option to buy it for a specified amount.  The rent paid goes towards the down payment.
• Buy to Let – In this scenario the buyer is required to rent out the property and the future rental income is used as collateral.  The buyer needs to present a business plan as well as applications from potential tenants.
• Seller Refinance – The seller refinances the home and gets the cash from the proceeds, and the buyer gives the seller a promissory note for the balance of the equity.
• Government Loan Programs – This is the most viable option in my opinion, so I will discuss it in further detail.
• Borrow money from you family or friends for your down payment
• Borrow against your life insurance policy
• Use other property as collateral
• Home equity loan (if you have other property)
• Trade – The buyer trades the seller for something he needs in lieu of a down payment
• Investor – Again … it’s not your money that is being used as a down payment.

Some of these opportunities are more realistic than others.  And as I mentioned, several don’t require you to use YOUR money as a down payment, but still require cash to close.

I come from a family of martyrs, so I don’t like to owe anyone anything.  The thought of asking a family member or friend for money makes my skin crawl and sends me running towards the bar.  I would rather stand on my own two feet and get a loan myself.

I have worked in the real estate industry for nearly 8 years, and I have seen the market highs and lows.  I have seen amazing mortgage “deals” come and go.  The most reliable programs I have seen come from the US Government.  Shocking, I know!

There are two zero-down loan programs offered by the government – VA and USDA.  Both have low interest rates.  You can qualify for a VA Loan if you meet any of the following criteria:

• Veteran
• Active duty personnel
• National Guard / Reservist
• Surviving spouse

For those of us who have not served, there is another government-guaranteed, zero-down loan program that we may be eligible for and it is worth checking out – USDA Rural Housing Loans.  This program was created to improve the life in rural areas, by providing loans and grants for housing and community facilities.  The process is quite simple, and is broken down into a few steps.

1. Find out if you quality
2. Find out if the property qualifies
3. Purchase the home

Do I Qualify?

As with any government program, there are requirements for eligibility.  For USDA Rural Housing Loans, as with any loan, you must have good credit, the monthly housing costs can’t exceed 29% of your income, your income can’t exceed 115% of the median income for the area, and the property must be owner-occupied.

Know Your Score

Knowing your credit score is always important.  Better credit can get you lower interest rates, saving you money in the long run.

If you don’t know your credit score, check out CreditKarma.com.  It is a FREE online credit report, and it’s very easy to use (I promise they don’t pay me to say that).  CreditKarma also notifies you automatically if there has been a change in your score or someone has accessed your information.

For a USDA loan, the minimum required FICO score is 620.  You also must have an established credit history of at least 24 months.

Know the Ratios

You know your credit score – great!  There is another set of numbers you need to be familiar with as well, your debt-to-income ratio.  Standards for USDA loans are 29/41, which simply means that the housing costs (mortgage, insurance, and taxes) can’t exceed 29% of your monthly income, and your overall monthly debt costs can’t exceed 41% of your monthly income.

Higher ratios may be considered if you have good credit (660+), stable employment history, potential for increased earnings, and proven ability to save.  The 29/41 rule is smart to live by so you don’t get in over your head financially, but it can be stretched in special cases.

Know Your Debt

Now that you know what the requirements are for debt-to-income ratio, you need to know your debt load.  That is easy to determine, but can be hard to accept when it’s laid out in front of you.

Don’t be afraid of your debt.  Fear will hold you back from facing it head on and making progress to get rid of it.  I always say this – knowledge is power.  If you have debt, understand where it came from and how you can avoid taking it on in the future.

List out all of your monthly expenses.  I use an Excel spreadsheet so I have a visual reminder of everything I regularly spend money on.  This list may include car payments, student loans, utilities, groceries, credit card debt, etc.

Once you have your total monthly expenses, you will know how much you can spend on housing.  Make sure it doesn’t exceed 41% of your total monthly income.

Verify Your Income

Depending on your employment, verifying your income will have different requirements.  It can be as easy as submitting a written Verification of Income and a current paystub, or as involved as submitting two years of Federal Tax Returns.

You must report all of your income, which may include alimony, child support, disability, or social security benefits.  Also if you have a non-purchasing spouse, his/her income must be verified as well to make sure your income does not exceed the limits of the program.

There are applicable deductions to reach your adjusted income, which should be discussed and verified with your lender.  They include minor children, disable or handicapped dependents, full-time students, elderly dependents, medical expenses, and childcare expenses.

Once you reach your adjusted income, you need to confirm that it does not exceed 115% of the median household income for your area.  Again, this is something you need to review with your lender to make sure you are eligible.

Verify Owner-Occupancy

This is probably the easiest step in the eligibility process – establishing that you will be occupying the home.  To qualify for a USDA loan you can’t own another primary residence.

QUALIFIED!!!  Once you have proven that you are eligible for the program, you can start looking for properties.

Does the Property Qualify?

Since this loan program was introduced to increase livability in rural areas, you must find a home that fits the guidelines.  Rural areas include places with lower populations, and certain towns and cities.

Types of Properties

While they do require that the property is owner-occupied, there is flexibility as to what you can purchase.  The property can be a single-family home, condo, planned unit development, or manufactured home.

The rural housing program has recently been updated.  According to a Mortgage Officer from Wells Fargo Home Mortgage, there is no limit on lot size, but the land can’t account for over 30% of the value of the property unless it’s typical for the area.  Also, farm properties are not eligible – they don’t want buyers making money off of the land.

Verify the Location

There are also location guidelines, and are specific to your area.  If you are interested in purchasing a home through the rural housing program, ask your local lender for a map.  You can also verify eligibility online at http://eligibility.sc.egov.usda.gov.

Thankfully in many cases, the definition of rural is loose.  As long as you don’t want to live downtown, your options might be far greater than you imagine.

Make the Deal

Once you and the property qualify for a USDA loan, all you have left to do is buy it!  USDA loans have lots of benefits to buyers as well as the community.

They require no down payment, and there are no prepayment penalties for rural housing loans.  They have low monthly mortgage insurance, and offer 30-year fixed interest rates.  Closing costs can even be financed into the loan if the appraised value is higher than the purchase price.

ZERO-DOWN REAL ESTATE IS A REALITY

Being the practical person that I am, I always want to give people honest, real-life advice and options.  Government-backed loans like USDA or VA are solid opportunities to purchase real estate with no money down.  When I say zero down, I mean zero down!

There are riskier choices available that don’t require you to spend your own money, but they do require a financial investment from someone upfront.  I don’t discount any of the alternatives – they work.  If they didn’t, no one would buy the programs you see on television in the middle of the night.

Next time you find yourself awake in the middle of the night cruising through the channels, skip the ones enticing you with promises of real estate riches.  You now have a solid information base to research the choices AND a healthy dose of reality!

And on that subject…

If you want to learn more (well, MUCH more!) about how to make a full time living in the real-estate market I suggest you get Joe Crump’s real estate investing course at realestatemoneymaker.com. Why? Simple…

First, Joe KNOWS his stuff like probably no other real-estate investor knows. From finding sellers who will sell you their home with zero down payment and no credit check, to maximizing your profit potential once you sell the property…and how to systematize your business so you can repeat this process every single day.

Second and most important…his course provides you with more “out of the box” strategies, systematical approaches, exploitable loopholes,  and experience based advice (that REALLY WORKS!) than most real-estate products priced 10 to 100 times more!

“Make four million dollars in five minutes, guaranteed!”

“I made seventeen thousand dollars while I slept last night by doing this one thing, and you can, too!” 

“Until last week, I was broke. I was being evicted, my children had no food, my dogs ran away, my bank closed my account because I hadn’t put any money in it for two and a half years, and I lost the last sixteen cents to my name in a manhole when I was crossing the street to get a shopping cart from Safeway for all of my belongings.”

“And then I found the most amazing website called this-is-a-scam.com! They taught me everything I had to know to make real money, and now I can teach you! Below is the copy of my first check that I received from this-is-a-scam.com.”

You’re going to teach me what you learned from this-is-a-scam.com? No, thanks, I think I’ll pass. If I don’t, I’ll will end up as broke as you were before you found this “most amazing” website; we both know that you want my one-time-only credit card number so that you can “get me started” and that once I give it to you, I’ll spend the rest of my life trying to get back all of the money you steal out of my account.

Don’t advertise this (no pun intended), but I have actually spent time checking out some of the places and things that will “make me rich” (I didn’t give any personal information out, though, I’m a little more internet-savvy than that) and guess what? I’m not rich. I’m not even close.

There are, however, ways to make money on the internet that are legitimate. You won’t get scammed and you won’t lose all of your money. However, there’s no magical website, you will have to work more than five minutes to earn the money that you make, and I’m thinking that seventeen thousand bucks during one night of sleep ain’t gonna happen. (Sorry.)

There are two things I could do right now. I could sit here and name jobs that you can get on the internet to make money (which you probably would like me to do), or I could concentrate on one “sure-fire” way to do it.

I’ll take option number two, Alex, for as much money as I can make. So let’s talk about something – one thing – that will make you money, guaranteed. No scams. This is not a get-rich-quick-scheme. This is a legitimate way to make some serious money. This legitimate way to make good money is called “flipping art”.

You may have seen articles and advertisements about “flipping houses” or “flipping domains”. The premise of investing in a hot commodity and then selling it to make a profit is known as “flipping.” When you buy art low and sell it high, you are “flipping art”.

You can take a painting that cost you ten bucks at a garage sale and turn around and sell it for a thousand bucks on eBay. You can take another painting you bought on eBay for a hundred bucks and flip it for five hundred bucks. Point being, the profit margins can be huge.

The great thing about this is that you don’t have to have an art degree to make money buying and selling it. A lot of people end up really getting into it and building a lucrative business and they didn’t know anything about art when they started.

You can’t expect to go out and make money in a world that you know nothing about, either. You’re going to have to do some research. Nothing too painful, I promise you. But there is a lot of work to do to make the kind of money you do when you flip a piece of art.

I am going to make a big qualification here: In this article, we are only going to be talking about paintings. If you want to really get into flipping art, later you may want to get into sculptures, ceramics, or something other form of art, but right now, we’re starting out easy.

Okay. When you need to learn about something, you usually read about it, right? This is no different.

Let me warn you: There are two words I am going to repeat (a lot): Google and online. In the “old days”, you used to always have to go to the library to research things. I am living proof that this is no longer true; I haven’t stepped in a library to research anything since 1970-something and there was an assignment in some class that I was in.

Most you need to know is online; it’s just an easy way to research without having to go somewhere. However, if you can or want to go to the library, that’s great, too, because then you can look firsthand at the pictures, etc.

You’re going to want to start familiarizing yourself with just a few things as you start to buy paintings. You’ll want to know about artists, styles, and different types of paintings. You’ll want to focus on American Art, and whatever people are currently buying. (Google it.)

Google anything that you want to know. General or specific. If you have a question, type the whole question into the google box. (By the way, if you prefer a different search engine, go for it. It’s just that Google works so well for me; that’s why I use it.)

A good way to see what people are buying is to buy some art catalogs (eBay sells them). Google it to find out where else you can get them. One thing: In the catalogs you will find what the final auction price was for the different items you’re interested in learning about. Make sure that the catalog you’re going to buy has that in it, because some of them don’t.

Get catalogs from main auction houses, like Christie’s or Sotheby’s (they are the two best in the world). Google some other auction houses and get catalogs from them, as well.,

This will be kind of cool (and you should get used to it): Go to art auctions that are mainly about American Art, and don’t forget the point of all of this is to find out what people are currently buying.

Next, try art museums. Under American Art, look for museums that may specialize in things like Western art or  Native American Art. You may not find a lot of contemporary art. On the off chance that you do, go to museums that specialize in them.

These are just a few places to learn; get creative or google to find more.

Where can I buy art (cheaply)? 

Now that you have an idea of what art to look for, here’s some places that you can go.

You’re going to need money; take cash. I’d take $300.00; it gives you enough money to buy what you may find; in addition, if you find something you like and the seller wants more than you have, you have enough to leave a deposit and go run to an ATM for the remaining balance.

Some sellers take debit and/or credit cards, but a lot of them don’t. The main thing is to have enough money to buy something you may want.

Also,it might be good to carry twenties (or some combination of small denominations). That way when you pull our your money, someone doesn’t see that you have hundred dollar bills and get the idea that that you can afford more than you want to spend. That’s just a theory; just do what’s comfortable for you.

Craigslist

I don’t know if you have ever dealt with Craigslist, but if you haven’t, it is a great place to find everything you need, and I mean everything.

When you go to Craigslist (just google it and put in the area you live in), on the front page, you will see a ton of things to buy, rent, sell, etc.  First, though, look at the left side. The second option down is all about how to not get scammed. It is very important that you know all about scams on Craigslist! Have a look at the personal safety section, as well. The whole point is to make money, not to get ripped off or hurt.

This tip is probably in there, but try and meet in a public place; since you don’t know these people, you probably don’t want them knowing where you live.

Don’t let any of this scare you! It’s just better to be safe than sorry.

Okay. Now go to the ‘For Sale’ section. If you need a job and a place to live and some activities in your community, great, you can go to those categories, too, but right now you are going to see if there is anybody selling art you might be interested in.

The thing about Craigslist is that you have to separate the men from the boys, so to speak. People honestly don’t know what they’re selling a lot of the time (they didn’t read this article!) and so you may be able to pick up some great deals.

You need to narrow it down (don’t look for art under electronics, you probably won’t find any), and there are three different categories that you can look under:

Art, Collectibles, and Arts and Crafts.

To narrow it down even further, you can type in things that relate to paintings:

Pastels, Watercolors, Oil, and Limited Edition Prints (or just Prints). Look up more if you want to. 

Estate Sales.

You will notice when you are browsing around that some of the art is listed in estate sales. This is one of the best (if not the best) places to go to find some art! An estate sale is usually held when someone passes away, and if there is an estate sale listed by a private party (the professional ones don’t haggle and probably know what they’re doing) and something interests you, go!

When you go to an estate sale, there are important things to know, like when you get there and if you need to be on a list to get to see things. Look these up beforehand so that you’re not surprised when you get there!

Go to EstateSales.net to find estate sales near you.

Garage sales.

Try garage sales, too. People have no idea what their stuff is worth, and that’s what you are looking for. You can find garage sales listed in the classifieds of your local paper, or on Craigslist. If you can, go to the better areas of town.

Go to GarageTracker.com or GarageSaleHunter.com to find some in your immediate area.

Flea Markets or Swap Meets.

Flea markets or swap meets are great places to look. The sellers will haggle, too; maybe not a lot, but they will haggle.

Go to FindAFleaMarket.com to see when there is going to be one in your area.

Antique stores. 

Here’s another one to try: Antique stores. Try and find the ones that are messy and not so rigid. Some owners will not haggle at all and only cater to the very wealthy. The messy antique stores have things in places that are hidden away, so don’t be shy about peeking under things, and don’t have any qualms about haggling!

To find them, google antique sales and your area, or try USAntiqueDealer.com.

Thrift stores.

You know a great place to go? Goodwill! My niece goes all the time and hits the jackpot once in awhile – and I mean a jackpot. Ask someone where you can find the art, and if you can’t find any, do what you do when you go to the shoe store and you can’t find your size: “Do you have any in the back?”

My niece only frequents the Goodwills that are located in (extremely?) wealthy neighborhoods. A lot of people don’t know what they are donating and you may end up getting an exceptionally valuable piece for next to nothing.

Any thrift store is good, really.

Ebay.

And of course, there’s always (and always will be) Ebay. Using everything you know, check out the art under Art, Antiques, and Collectibles. 

If you have never dealt with eBay, then go open and account and play around a little. A couple of things to know; If you should find a seller that deals with the artist that you want, or the type of American Art that you want, then put them under Favorite Sellers. When you have a search that hits everything just right, put it under Saved Searches.

Do those two things and it will save a lot of time because you can go back to the places you want to without having to go through the whole search all over again.

Not to be morbid, but try to look for artists that are – well – dead. (Sorry.) If you focus your searches on from like 1800 through 1970; that will help. The point is to look for art that has proven auction records (more on that in a minute).

Note: Make sure to get some bidding software (google it for a good, free type). That way you can “be at the auction” when you’re not; it’ll do all your bidding for you – right down to the last minute.

Always try to get an original (avoid reproductions) and even then, make sure that it is by doing your own research, starting with the information you get by the description.

With all of these places to look, you may not find anything on a day that you go. So go the next day! Just keep trying; you’ll get a good hit somewhere.

How you can see what it’s worth. 

You’re not an art appraiser. How can you tell if something is worth buying?

The cardinal rule: If it seems to good to be true, it is. Walk away from it.

Here are ways to authenticate a painting. Google each one for their particulars and how to go about establishing what you need to know about them.

Condition.

Provenance. (Where it’s from, etc.)

Rarity.

Signatures: Go to ArtValue.com and look up the artist. If the artist has at least five auctions to his name, that’s good. You don’t want an artist who has never sold a painting.

Next, go to the website of one of the auction houses that I mentioned and, using their zoom tool, zoom in on the signature and make sure that it is close to the original signature. There can be some variation, but not much. Any real doubts, pass.

If there is no signature on the front, check the back. Sometimes there will be a painting with both. No signature anywhere? Pass.

Size matters.

Anything taller than 60 inches is too big. I remember going to a gallery opening and finding a painting I have never wanted so much in my life. It was gorgeous: Modern, contemporary, and perfect for my living room. It was also seven feet tall. Enough said.

What sells well.

Certain subjects sell better than others:

Good looking people.

Native American art.

Western art.

Light and airy paintings: Meadows, sunny paintings, pastels, flowers, etc. No dark paintings.

Miscellaneous stuff.

There are so many things that go into the value of a painting:

Can it be restored? How old is it? What’s its style? Who exactly is your artist? Did he study under someone famous? Is the signature authentic? Research every possible thing you can before you go looking.

You need to know art terms; this is a very important part of your research. There are many references that you will want to know; googling and reading will tell you what you need to know.

When you can, try and talk to gallery owners, auctioneers, etc. about anything regarding to art. A lot of people are only too happy to “tutor” you in some very important ways that you may not think of.

Where should I sell my art?

Finally! The final step that makes the research and work you’ve done worth it.

There are many places that you can sell your art.

Auction houses.

This should be your number one place to sell. I mentioned Christie’s and Sotheby’s; there is also Bonham and Butterfields, which is famous for American Art. You can google auction houses and find others.

See if you can sell your piece by consignment. This means that you list your piece with them, and if they sell it, they take a portion of the sale price. See if you can lower what they want for their portion. Some of them will.

Sometimes an auction house will not want your piece. (How rude.) If that happens, ask them if they know of someone else that would be interested.

If they want your piece, you are on your way to the flip! They will need to photograph and catalog it; send the piece one to two months ahead of the auction. They will provide you with a consignment contract; google that to see what one looks like.

You can put a reserve on your piece. What that means is that it cannot be sold under the price you want to get for it. Factor in your time, what it cost, the house percentage, and all of your expenses.

It’s a good idea to put a reserve on your painting; that way, at least you’ll break even. After all of your hard work, you don’t want to (say this softly) lose money.

Make sure that you check with the auction house on all of the particulars, such as insurance, when they pay, etc.

Dealers.

Look up dealers that specialize in American Art. Go meet them; get to know them. You want to look like an expert, so don’t call one that doesn’t even sell it. Another thing to research: Where are the dealers in my area that would like my piece?

Be careful of scam dealers. If they ask you weird questions or if your gut just says no, then heed its warning.

Try not to give a price. Ask them to make you an offer first. If you say that you want two thousand for a piece, you won’t get it. If you have to give a price, start high. You can always negotiate down to the price you wanted in the beginning. As I always say, “I may be high, you may be low, so somewhere in the middle we have a deal.”

Craigslist.

A great place to sell, as well as buy. In fact, I think it’s better to sell. (That’s only my humble opinion.) Just remember all of the warnings about scams, etc., especially when collecting the money. Top two: No Western Union and don’t ship anything anywhere.

Ebay.

Of course I had to put in Ebay! Obviously, it’s a proven place to sell. Make sure you put all information into the listing – all of it. Add tons of pictures and make sure your terms of sale are clear. Most seller take Paypal, but if you want to take debit or credit cards, that’s okay, too, just make sure that you lay it out.

In addition, figure out how you are going to charge shipping and make sure you are clear about that, as well.

List an explicit return policy.

Always get insurance!

You should probably have a reserve price; as I said, this is so that you don’t undersell. Cover your expenses.

By the way, if you want to sell something for a lot of money (say $25,000.00), Ebay may not be the best place to do it. Check and see how much the average painting sells for and if anyone ever gets anywhere near the price that you want for the piece.

Flipping art. Your mind is probably mush by now, because yes, I have given you a lot to think about. But think about this:

The more research you do, the more knowledgeable you become. The more knowledgeable you are on the whole process of flipping art, the more you’ll make. You have the potential to make chunks of money that will let you do a lot of things that you never could before.

Finally – again – this process really works.  So go flip some art!

P.S. I read a great eBook by Alexander Murrow about art flipping that I really think you should get if you want to make some serious cash in this industry.  Alexander has been a fine art dealer based out of Southern California with extensive experience in art flipping. He has flipped hundreds of paintings, sculptures, prints, and more. His primary interest is California Impressionism and Western art. By the way, a free chapter of his eBook is available on his website makemoneyflippingart.com.

I don’t know how many times I have been driving somewhere and saw a sign on a check-cashing place that says, “Sell your gold for cash!” or heard, “We buy gold!” on the radio. Jump on your computer and google, “sell your gold” and you’ll get ‘About 115,000,000 results (.20 seconds).

Actually, it’s not just gold, it’s all jewelry.

The economy is such that people are looking into selling anything that’s worth anything, just to make a little extra money. You may be reading this because you have a piece of jewelry sitting in your jewelry box that you haven’t worn since 1968 and figure that if you haven’t worn it by now, you might as well sell it, yada yada yada.

Before we start testing to see how much your jewelry is worth, I want you to go to your jewelry box (or wherever your piece of jewelry is), and pick up the piece that you are thinking of selling. When you look at it, do tears spring to your eyes because you remember when you wore it to the prom with your first love of your life?

Do you feel bereft at the idea of it just not being “with you” anymore?

Do you know for a fact that if you sold it, some relative is going to come screaming out of the woodwork when someone dies because they know it was handed down to them, and where is it?

If you answered yes to any of these questions, then you need to think about whether or not you really want to sell it. Is whatever cash you can get a good replacement for the memories of your magical night of the prom?

If you answered yes to all of these questions, I would forget it and go sell something else. But that’s just me.

If you’re okay with everything, then do it! You don’t even have to go to an appraiser to find out how much you can get out of it (without getting ripped off). You can just do it at home.

How much it’s worth.

Do you know how much jewelry is marked up in a retail store? Put it this way: I know why I got a copper wedding ring. (This time I am not kidding. I wish I was.)

Jewelers thrive on the fact that you have to read an article to be educated about your jewelry’s worth, thus they mark their jewelry up 100 to 1000 percent. (No, that is not a misprint.)They rub their hands together with glee, an evil smirk planted on their faces, as soon as they see a man (any age) walk in and go straight to the engagement rings.

Because what says love more than a big, beautiful, hugely marked-up engagement ring?

A jeweler may pay $500.00 for a diamond, and put a price tag on it of $5,000.00 or more. (I am quitting my job today, I am so in the wrong business.) Case in point: Don’t go to a dealer to find out how much your jewelry is worth. Ever.

Gold, silver, and platinum.

There are tests for each metal that are complicated and should only be done by a professional. However, there  are three tests that you can do at home that will tell you whether or not you have a real piece of gold, silver, or platinum on your hands, and that’s all you need.

Note: It is a good idea to do all three tests, if possible. You want as much proof as you can of whether or not your gem is real.

Test #1: Magnet to metal.

The easiest test to see if any precious metal is real is this:

Get a neodymium magnet (it’s the very strongest magnet you can get which is necessary for testing metals) and hold it next to the piece. If the magnet pulls the metal immediately, then it is not real. If it has a light pull, it could be plated or impure. Don’t forget that the settings in a ring or a clasp on a necklace will respond to a magnet; make sure it’s just the metal that you are testing.

(Note: I personally don’t have a neodymium (or rare earth) magnet just hanging around my house. If you don’t either, then just jump online and shop them. You can purchase one for under ten dollars.)

Test #2: The acid test.

The traditional way of testing these metals is by using an acid tester; any reputable jeweler uses this method. However, you don’t have to go to a jeweler to have this done; you can do it yourself.

You can purchase testing kits online; shop around for the one that best fits your needs, and check the reviews for how well the particular kit works. The testing kits vary because it depends on what and how much a person wants to test. Look for testing kits that will test 10k, 14k, 18k, 22k, silver and platinum; they’ll run you around twenty bucks. (Note: Some of these tests come supplied with neodymium magnets.)

The acids that come in the test kits are corrosive, and you really don’t want to be on the receiving end of an acid splatter, so be careful! Use newspaper to cover your area and wear protective goggles and rubber gloves. And don’t put more than one piece of jewelry on your work area: You won’t need to test any piece of jewelry if it gets splattered with acid.

Read the testing directions carefully and follow them exactly; you will be using a different type of procedure and acid depending on the type and/or weight of the metal. With each type, though, the premise is the same: You’re going to put a teeny drop of nitric acid on an inconspicuous place on the piece and see what happens.

Final acid test results for all three metals:

Gold:

If it doesn’t change color, it’s real.

If it changes color to a yellow-orange color, it may be gold, but a lower karat.

If it changes to any other color, it is not gold.

Silver:

If the color changes it to a cloudy, cream color, then it is sterling silver (or better).

If the color changes it to green, it’s silver-plated.

Platinum:

Real platinum will not change color.

Test #3: The hallmark.

The last test for all three is very simple: Check the authenticity of the piece by inspecting it for a stamp or “hallmark”. A hallmark can tell you the purity of the piece, the manufacturer, the date of when it was manufactured, and other marks of interest. Google what you see if you want to know specifics.

Diamonds.

They’re a girl’s best friend. Unless they’re zirconium.

Almost every married woman has a diamond somewhere in their life. But how real is it?

Test #1: The scratch test.

People have been testing diamonds like this for eons, and you can, too, but there are a couple of things to consider before you do this test.

First: There’s a possibility that you could damage your diamond.

Second: Many false gems can scratch glass nowadays.

Having said that, if you still want to, scratch the diamond across a plate of glass. If the glass shows a scratch, the diamond is real.

For the most part, it is a good indicator of the gem’s authenticity, so if you do it, just be careful not to damage it.  If it turns out that it seems real, do another test. There’s no such thing as too much proof.

Test #2: The newspaper test.

Put some newspaper down on a table, Put the diamond on top of that. If you can’t see the newspaper print through the diamond, the diamond is real. One comment on this: Sometimes the diamond has a shallow cut and you can read through it anyway.

Test #3: The fog test.

Take a soft cloth, gently rub the diamond, and then breathe on it. If the fog goes away quickly, the diamond is real. A real diamond will not retain heat.

Other gems.

There are other gems that have different varieties of properties and colors. A blue stone could be a blue sapphire, a blue diamond, an aquamarine, or a blue topaz (among many others). Synthetic rubies have the same properties as real rubies.

Identifying gems is really tough, though, even for a jeweler. I cannot even begin to try to list all of the tests (most of which you shouldn’t do at home anyway) to test other gems. I do, however, have one possibly attractive option which I will show you in a minute. 

Testing for weight.

No secret here: Get a gemstone scale that weighs in carats.

As far as expense for a gemstone scale goes, it varies highly. I have seen gemstone scales that cost over a five hundred dollars, some really good ones for around seventy bucks, and there are basic does-the-job scales for under twenty dollars.

The best deal I came across, however, is digital pocket scale that weighs in carats, ounces, grams, and grains. It’s a portable mini scale that has a 50 gram capacity (250 carats) and I’ve seen them listed online for only seven dollars.

(By the way, I just want to point out here that when you add up the acid test, the magnet, and the gemstone scale, the total is less than what you would pay for an appraisal. Pat yourself on the back for being smart enough to do your testing at home.)

Bonus Jewelry Tools.

After all of this testing, maybe you have found your calling. Maybe you’re now going to open a jewelry store or something. Maybe you have a lot of different types of jewelry that you would like to test. Maybe you just want to know more about the jewelry that you have.

At any rate, in this wonderful age of technology, there are quite naturally jewelry gadgets to be taken advantage of. If you don’t mind the extra expense, you can do all of the testing (and more) by simply using some of the best jewelry gadgets on the market today. Just remember that they may be a little more expensive.

The Presidium Gem Tester / Color Stone Estimator.

This is the “possibly attractive option” I mentioned a few minutes ago.

If you want to test your other gems, then you can invest in the Presidium Gemstone Tester / Colored Stone Estimator. This gadget is the only colored gemstone tester in the jewelry industry. It identifies diamonds and most colored gemstones, polished and unpolished, and does other tasks, as well. The lowest price I found online for this is $205.00, but it’s well worth it if you have a lot of colored gems (or just one special one).

Deluxe Gold Buying Kit GXL-24 PRO A&D EK-1200i with How To Buy Gold Book

Do you really want to know what your gold is worth and what you can sell it for without losing your shirt?  This gadget has the whole package.

The kit comes with a 6k to 24k gold tester, a Legal for Trade Scale which will give you the particulars your need to sell at pawn shops, etc., a gold price calculating scale which allows you to you calculate the price of your piece of gold based on its weight and purity, a 10x magnifier loupe to examine your gems, a prong opener to work with settings,

It even comes with the book, “Gold – Everything you need to know to buy and sell today”, written by Jeff Garrett and Q. David Bowers.

I saw this gold buying kit marked down from $1,275.00 to $699.00. (I told you these gadgets were a tad more expensive.) It’s worth it, though, if you have the need for it. (Note: It may pay to check eBay for these gadgets and any others of interest; just a suggestion.)

There are a lot more gadgets out there that do more (and less) than the two above. Just google and shop.

Okay, so now you know the worth of your jewelry. You have identified your jewelry. You know what you want price-wise for your jewelry. How do you get what you want without getting ripped off?

Five tips that will sell your jewelry at the price that you want for it, not what they want to buy it for.

Tip #1: Before selling an item, be aware of a fair price (based on the going rate) to ask for your item.

We haven’t talked about the price of gold. The economy has pushed the price of gold to $1643.00 per troy ounce as of April 24, 2012. (A troy ounce is part of the imperial system and is the way to gauge the weight of precious metals.) Thus, if you want to sell your gold, know that it’s worth something and don’t let them pay you an insulting price. On the other hand, don’t offer them an insulting price, either.

Tip #2: Haggle, haggle, haggle!

If you have a unique piece and have done your homework, don’t stop with the second – or even the third – offer that you receive from the buyer. Buyers will often negotiate four, five, six times if they really want something. Don’t be afraid to negotiate, but don’t be afraid to hold your ground, either.

Tip #3: Don’t fall for any excuses. Don’t fall for compliments. Don’t fall for anything.

“The price for this ring is too much; I can’t afford even afford groceries right now.” Tears well up in the buyer’s eyes. “This is for my dying mother and so important; can’t you find it in your heart to come down a little in price?  You are obviously such a good person, I know that you understand my problem.”

Okay, let’s rip this one up.

Number one: If he’s buying it for his dying mother, then she’s not going to be getting much use out of it, is she?

Number two: If he can’t afford groceries, why is he looking at a diamond ring?

Number three: “You are obviously such a good person.” You could have just bought him lunch and tickets to the Knicks (although they aren’t such a hot commodity this year; I digress.), but you have just met him; how does he know what kind of a person you are, or how much you understand about any problem, let alone his?

Don’t let yourself be led to the slaughter. At best, you’ll be humiliated. At the worst, you’ll have cost yourself a lot of money.

Tip #4: Don’t mail any of your jewelry to anyone unless you know them or you have their money.

Unless you know them, know their reputation, or have gotten the payment (cleared), don’t mail your jewelry out to anyone. There may be exceptions to this (I don’t know of any), but once it’s literally out of your hands, you may never even see it again, and possession is nine/tenths of the law. (It still is, right? Everything’s changed so much…)

There are a lot of places that will “pay all delivery costs, insurance, etc. once we receive your jewelry” and maybe they will, but can you really afford to find out by sending it out with no money up front or knowing of their reputation as a buyer?

Tip #5: Know who you can sell to and who you are selling to.

And on the heels of tip #4, who are you selling your jewelry to? Are you selling to an establishment that can be trusted? A relative that is known for not paying anyone back? And where are you going to sell you jewelry? Has the neighbor down the street been eying the turquoise bracelet you wear but secretly hate? To sell your item(s) for a great price, think of all sources that you know and trust, and try them all.

Five tips to ensure that you buy your jewelry for what you want to pay for it, not what they want to sell it for.

To buy jewelry at the right price is fairly easy, believe it or not. Forewarned is forearmed; if you know what you’re doing, you’ll end up being very happy.

Tip #1: Ask questions.

If you go to a jeweler, make sure that you ask for credentials. Any jeweler worth his weight in gold (really big pun not intended) is licensed to sell jewelry in your state, and should have been in the business for at least a few years.

Tip #2: Try to avoid “cash for gold “places.

Cash for gold places do not pay anywhere near what your gold is worth. Period. If you really feel like you’re getting a good deal, go to the BBB’s website and look up the company.  You’d be amazed how many people complain that they were paid a lot less than they should have been.

Tip #3: Never buy from the first person you deal with.

There are many, many, many fish in the sea, even if times are hard right now. In tough times people always want to go to the movies and buy jewelry. Well, maybe that’s not entirely true, but there are a lot of people out there selling jewelry. Don’t feel like the first platinum bracelet you “absolutely have to have!” is going to be the last,. Don’t ever impulse-buy with jewelry.

Tip #4: Think about all the costs the seller has to pay before he sells his first piece of jewelry.

If he’s the owner of a free-standing store, then he has overhead, salaries, insurance, and all that good stuff that goes into owning a business. Now think of those costs in terms of what you are buying; how far is this guy marking this stuff up? (Don’t forget the markups that start at 100 percent and go all the way to 1000 percent.) No matter what you are paying for your item, it has been marked up. A lot. Which brings us to…

Tip #5: Haggle, haggle, haggle!

If you don’t feel comfortable doing it, bring along someone who does. Most people don’t know that any retail establishment – from restaurants to retail stores to expired coupons at Burger King– will work with you on price. You know why? Because times are tough, and any money is better than no money! Remember that the next time the jewelry salesman doesn’t pull his price down and makes you feel like an idiot because you tried.

There you go. You are now armed with the correct tools and their results and can  go out and buy and sell your jewelry with confidence. You educated yourself on the practices of jewelers and price mark-ups. You now know really and truly what your jewelry is worth.

And you didn’t even use an appraiser.

That choice is completely up to you.

To be honest, you can do both. But when it comes to the latter, you won’t have to worry about being in jail. When you aren’t in jail, you need money. When you need money, you can flip cars. 

There’s actually not much to it.

And by it, I mean using auto auctions.

It’s a straightforward process that can make you a quick four figures, what with Craigslist, eBay and all. If you’ve never thought about it, here’s your wake-up call and manual all wrapped into one easy-to-grasp ball.

When it comes to live auto auctions, there are two kinds. The first is the dealer auction. Don’t go there; it’s full of people you are trying to avoid.

The second is a public auction. That’s exactly where you should be. In fact, it’s the only one of the two you can attend. But just between us, prices tend to be less expensive at public auctions.

So they’re easy to use, but what makes a car auction so great?

The first thing is the deals. Forty percent below retail. Enough said.

The second is you don’t have to deal with car salesman (it bears repeating). I once got a call for six mornings straight from the same guy. After I told him I’d already bought a car. Go to an auto auction, and you probably won’t get a call for six mornings straight.

At least not from a car salesman.

The third are the gold mines of cars you will find. It’s not uncommon for auctions to have over 200 cars to bid on, all from a variety of sources.

You could get the shiny, repossessed Toyota of a guy who couldn’t pay for it. Or you could get a Benz from a guy who lost it to back taxes. Heck, you could even have a vibrant-colored Cadillac that belonged to a (former) drug dealer. Used government vehicles frequently make appearances as well.

Really, it doesn’t get much simpler than the world of auto auctions. Flipping cars for profit comes down to three phases.

• The preliminary search
• The auction
• Re-listing

In other words, before, during and after.

Find the auction and cars

Before you go to an auto auction, you need to find an auto auction. One of the knocks on buying cars at auctions is that they are hard to find.

They aren’t.

A simple Google search with the name of your city (e.g. Cleveland) plus “public car auctions” should get you started. Any major cities will have at least a handful. Many lots hold auctions on a weekly basis with entirely new sets of cars.

Imagine the possibilities.

You’ll errantly come across online auctions as well. If they mention “shipping,” move on.

If that online search doesn’t pull anything up, check your spelling (and then move out of Savannah, Georgia). Or you could call your local police station. Their used vehicles likely go to car auctions.

Check out a handy online resource like Gov-Auction.org if you are desperate or would like even more choices.

Next, you want to find the goods. You should be able to find a listing of the cars, among other things. For a quick turnover, look for cars that meet these criteria:

• Priced between $4,000 and $10,000
• Quality reputation (Honda, Toyota)
• Extremely low mileage (less than 8,000 per year)

Find some, and then figure out how much those cars should be going for (aka their trade-in value). I like three sites to figure this out: Kelley’s, Edmunds.com and NADAGuides.

Take the three numbers, give them to your fifth-grade son and tell him you need the average by the end of the day. Check his decimals, and since it’s an auction (the price should be lower), take forty percent off that price.

Come prepared, and that’s exactly how much you’ll pay.

***

What to expect at an auction

You need to have at least $1,000 on you, or be able to pay that with a card. Know your options beforehand.

The money is for the down payment you need to pay immediately upon buying a car. Or you can buy the whole car, depending on how you feel about procrastination.

During the auction, you’ll have to pay attention to four terms that will be given in regards to the car. They’ll provide additional information to help you make your best decision. In order of safest choice to most dangerous:

• Good Operating Condition (Buy)
• No Title (Buy)
• Announced Condition (Walk)
• As is (Walk)

Good Operating Condition means the owner is giving you his word. These are the best people to do business with. If you haven’t already learned that, there you go.

No Title only means that the car you are buying is titleless for now. Auctions can deal with banks in other states who might take their time waiting for you to give them money. Whatever the reason, you usually get your title in days. If you don’t get it for 30 of them, there’s a refund in it for you.

Something is wrong with the car, and the owner wants to tell you. That means there is an Announced Condition. You know the condition. If you know how much it is to fix the condition, good job. If not, walk.

As is means the owner doesn’t want to tell you anything about the car. Unless you are a mechanic, or have one with you, you might as well leave your wallet on the ground.

Even if you know the defects, do a thorough check of the car. That is, sometime before it goes up for auction. Here is a brief rundown of what to check for:

• Start the engine. Remember knocking and rattling aren’t good.
• Try the AC, heat and power options (windows, sunroof).
• Shift into drive and reverse. A good engine won’t lunge when you shift gears.
• Check for dampness under the rugs and seats.
• Look at the oil stick. If the oil has white bubbles, pass. The same if it’s too pasty or dirty.
• There should not be any transmission fluid on the ground. Nor should it be dark brown.
• Look at the paint on the car. Do you see rust or air bubbles? Does the paint match?
• See if there are any welding marks near the trunk or the engine.
• Check all the lights and turn signals.

Budget some money for small repairs. Few cars will come perfect. But most shouldn’t need more than $500 to get to great mechanical condition.

But what if you do buy a clunker?

First of all, the odds of that aren’t great. Most cars are run through an inspection before hitting the auction block. Though, instead of dropping it off in Grandma’s backyard for the next 6 weeks, you can give it back and have the same car auctioned off again immediately.

It might be at the pain of a few hundred dollars, but still a low risk.

* * *

(Re)Selling

Once it’s all said and done, this might seem like the easy part. Provided you get the right car for a short stack of cash (almost never fails).

Using Autotrader or Craigslist, see what the retail prices are for your new car. Once you are “in the know” on what they sell for in your area, there are two ways you can price it.

If you have the time, put the car up for $500 to $1000 more than its going price. That should be two or three thousand more than your buying price. On a car with extremely low miles, that could still be a little low.

Meet some new people, wait it out, and sell at your price.

In case you want to sell it quick, go closer to the retail value. For example, if most 2005 Civics are being swapped for six grand, go a few hundred above that. If you’re really in a hurry, you could even go a hundred below that.

If the car doesn’t go in a week, think about dropping the price. In the best scenarios, you can earn an extra four thousand.

***

One important thing to keep in mind when doing this that there’s a line between selling a car and selling a car for profit.

It’s a government thing.

But just make sure you’re aware of how many cars you can sell before you need a license. The number is different from state to state. In California, for example, if you sell one car “with the intent to make a profit,” you could be breaking state law.

It sounds stingy. The rules are often lax, however.

If every car you sell is in your name, you won’t exactly be on The Man’s radar. Stay somewhere in the area of six a year. Still a nice chunk of change if you can make $2000 on a vehicle, and that’s the low end.

Although, if you want to become a dealer and be allowed to sell unlimited cars, all you have to do is pass a test at the DMV.

But then you also have to deal with zoning laws while getting a location. And then you’ll have to give donations to the DMV. And then…

Forget it. The point is to make money.

And via auto auctions, it’s not hard.

P.S. A GREAT website to access over 4,000 car auctions with prices is gov-auctions.org. They got auctions NOT searchable elsewhere on the Internet and as you will see on their website it’s not dream to get cars at up to 95% off their real price (sometimes making $8K-12K in pure profit!).

As we humans tend to do before moving everything, which by then included our two children, we considered all of the positives which supported ‘making the move’.

Among the many reasons, our rationale also included,

“…And PLUS, Florida now has a LOTTERY!” 

“Oh yeah…that’s RIGHT!” 

“That’s it…done deal!  We’re moving!” 

Not that a ‘cherry on top’ was necessary by that time, as we had already decided to move anyway, but, why not?

As we humans also tend to do, the conversation then became about,

“What to do with all that MONEY we’ll surely win!” 

Trust me, the list of ‘goodies’ we would be able to afford, and, with money actually left over for more reasonable purposes, or is that purchases, was extensive!

Or is that…expensive?

“What a day for a daydream!”

From the time we crossed the Florida–Georgia line, we became ‘hooked on Lotto’!

“I wasn’t sure this 24 footer was gonna clear the canopy!  That was close!” 

“Honey, while you’re in there, pick up some lotto tickets!” 

“How much are they?  What numbers?  How does this game work?” 

What do you get when you cross an elephant with a rhinoceros?

“Elif’ino, but Lotto can’t be that complicated!”

From that point forward, we played Lotto with conviction!  Our ‘fortune and glory’ was always just the next ticket away!

Ten bucks a week…new numbers every time!

Birth dates, ‘quick picks’, you name it; if it was a number, we played it! 

“Hey!  We won half of our ten dollars back this week!  Woohoo!” 

Sound familiar?

There’s GOT to be a better way!

Although the Florida Lottery now has six games that involve drawings, not to mention a multitude of various scratch-off games, for our purposes here, we’ll concentrate on just Lotto in its most basic form.  Six numbers. 

Ever find yourself in line behind a ‘scratch-off addict’? 

“Nope!  This one’s no good!  Give me another…ummmm…one…of …umm…THOSE!” 

 “No…not that one… yeah THAT one!” 

“Oh puh’leeeze!  Ahem…s’cuse me.”

How did it happen?

One Friday evening in 1997, I took my son to a baseball game.  Our home team, the ‘Suns’ were playing an Alabama team called the ‘Biscuits’!

That’s what I said too!  “Huh?”

But…

Something happened that night that made me look at the Lottery in a whole new light!

“CRACK!”  (not that kind)

“It’s going…goiiiing…GONE!  HOMERUN!”

Deep Left Field!

Three more times that night…different batters, same area…deep left!

“Daddy, let’s sit over there!  I wanna catch a baseball!” 

Well, we didn’t move over to deep left and I don’t recall if the Suns won or lost, but an idea was hatched!

If you want to catch a baseball, go where the chances are the best! 

“Okay, so how do I relate that to Lotto?” 

After much pondering, I had a concept…

I began wondering what numbers, or what kinds of numbers, win with the most frequency.

Where is “Deep Left” in Lotto?

Then, it clicked!  I went on-line and found a list of every number that had been drawn since the Florida Lottery’s first drawing in January of 1988!

That was aLOTof numbers…

“Lemme see …9 years times 52 weeks a year equals…a BUNCH!” 

My plan was to dissect each number, or group of numbers that had been drawn, and categorize them!   Yes, it was a monumental task…

Pencil and paper, no less…and I am by no means a statistician! 

But, I felt it would be worth the effort, so I did it!

And it WAS!

At that time, the Florida Lotto drawings consisted of a group of six numbers ranging from ‘01’ to ‘49’.  So I began encoding each group by applying a designator to each number:

• S = ‘SINGLE’            (01 – 09) 

• T = ‘TEEN’               (10 – 19) 

• W = ‘TWENTY’       (20 – 29) 

• H = ‘THIRTY’          (30 – 39) 

• F = ‘FORTY’             (40 – 49) 

As an example, let’s apply the designators to a typical group from a drawing: 

01 – 04 – 13 – 26 – 35 – 49

 S      S     T     W    H     F 

After days and nearly a whole legal pad, I had a means of identifying each group!

Are ya with me so far?

I then realized there was yet another fact to be learned about each number…

Is it even or odd?  And, what is the ratio of ‘even to odd’ per group?

Well, that was simple enough!

‘E’ for ‘Even’ and ‘O’ for ‘Odd’ ! 

With that applied:

O      E     O     E     O    O

01 – 04 – 13 – 26 – 35 – 49

S      S     T     W    H     F

So now, the example group is encoded as:

SSTWHF and the Even to Odd ratio (E/O) is 2:4! 

“SSTWHF – 2:4” 

Having identified each group, I began the process of tallying the groups to learn which configurations had the most ‘hits’, then the next to the most, and so on.

Of the 151 configurations of groups by the ‘S – T – W – H – F’ criteria,

The undisputed winners, each having been drawn 14 times over the 9 year span, were:

• SSTWHF 
• STWHHF
• STWHFF
• STWWHF

(For quick reference, here’s the ‘key’ again): 

S = ‘SINGLE’            (01 – 09) 

T = ‘TEEN’               (10 – 19) 

W = ‘TWENTY’       (20 – 29) 

H = ‘THIRTY’          (30 – 39) 

F = ‘FORTY’             (40 – 49) 

The closest rivals near the top of the chart were:

TWHHFF with 13 ‘hits’,

then,

TTWHHF with 12 hits, STTWHF with 9, and the list declined from there all the way down to 59 groups that had only been drawn once!

As for ‘E/O’ ratios of 9 years worth of numbers: 

• 3:3 = 148
• 2:4 = 100
• 4:2 = 98
• 1:5 = 46
• 5:1 = 42
• 6:0 = 6
• 0:6 = 5 

Armed with that information, do you think it changed how I configured the groups of numbers I actually played?

“You Betcha!” 

I named the system:

E.G.R.S.   (Encoded Group and Ratio System)

This system can be applied to virtually any game involving randomly drawn numbers! 

Did it work?

As fate would have it, very shortly after I devised this system, something changed!  I had read and heard stories about people having just 5 of the 6 numbers and raking in four, sometimes as much as five or six thousand dollars in winnings!

Unfortunately, 5 numbers, for what ever reason, became much less valuable for a period of time!

“Thanks Murphy!”

Of course, during that time, very shortly after developing this system, we hit 5 numbers once for $1500 and another time for $2600!  Now-a-days, it’s back up, even well beyond, the 5K range for five numbers!

I heard recently, a ‘Fiver’ took home $10,576!

“Come on Murphy!  I’m DUE!”   

Oh no…Not AGAIN! 

Another change that occurred in the Florida Lottery was the addition of four more numbers!  And, when they added 50 thru 53 the odds jumped significantly!

Now, that the odds have unfavorably increased, there are many more ‘roll-overs’ than before, so the jackpots get HUGE!

With the expansion to the range of numbers, I added ‘Y’ to the key to identify a number as a ‘FIFTY’.  I then began sampling the expanded number range to learn the effect of the new numbers, designated as ‘Y’.

Though I’ve not done as complete a study with the new ‘Y’ factor as I did before its addition, I have done quite a bit of sampling.

Of the 100 groups I analyzed, I learned that the new ‘Y’ (50 thru 53) only showed up in 20% of the groups and it was not a factor in the top four configurations!

The strongest trend in this new sampling was:

• STWWHF
• STTWFF
• STWHHF
• TTWHFF 

As you can see by this study, not a lot changed in the configuration of the groups!  I’ve just stayed with the four from the original study and swapped out a few H’s for Y’s…

Just in case!

The change to the E/O ratio was not that significant either!  While they changed slightly, the ‘pecking order’ did not!

It remains, in order:

• 3:3
• 2:4
• 4:2
• 1:5
• 5:1
• 6:0
• 0:6

Have you ever?…

…felt the rush of seeing the cashier’s eyes widen as she quietly says,

“Um…you’ll need to take this to the Lottery Office.” 

 “We can’t do that large of a payout here!” 

“Cha-Ching!”  It is exciting! 

Thus far, I can only imagine how it would be to hit all six numbers!! 

“Ka-Whump!”  As I hit the floor! 

A few things to be aware of: 

If a clerk or cashier checks your ticket, then holds it over the trash can and says,

“Nope!  Sorry, no retirement this week!  You don’t need this …do you?”

YES!  As a matter of fact you do need it!

Could it happen with a big winning ticket?  Sure it could!

Is that a mighty risky move on the part of the cashier?  Sure it is!

While it is very convenient to just have the store ‘run it’, it is very simple to check it yourself!  Besides, if you check it and it’s a winner, your own floor is probably a much better place to land!

For Floridians, the Lottery website, ‘flalottery.com’ is the quickest (and safest) place to check your own ticket.  The site is very user friendly and provides a box where you just type in your numbers and it will let you know whether you’ve won!…or not.

They also display the current numbers from the most recent drawing and there’s also a ‘click-button’ for “Previous Drawings”…week by week!

There’s a lot of other good information on the site as well, from all of the game rules for the various games, to a rather thorough FAQ section.  Each state with a lottery has a similar lottery website, as well.

Continuing…

The MOMENT you realize you have a winning ticket…

Sign it and hide it until you redeem it!  InFlorida, you have 180 days to cash in!

Even we procrastinators could make that deadline!

Sure, you trust John…so do I!

“Keep this under your hat, but, 

I JUST HIT THE LOTTERY!   Not a WORD to ANYONE!  Right?” 

“You got it Bro…not a peep!” 

After you cash in, tell whomever you choose…including your boss!

But me?  Not before!

Given the results of this study, you can now see which groups are hot and which groups are not!  This information is very useful in logically selecting your numbers!

I hope that besides making you run and buy a lottery ticket, I also managed to show you that THERE IS A WAY to get better odds of winning.

Look…

I’m not a professional lottery player, but I do manage to get around and “bet” smarter than the next guy.

But if you want to learn how to skyrocket your odds and truly be on a “league of your own” you might want to take a look at Ken Silver , A.K.A “The Multi-Million Dollar Lotto Guy“.

If you think that what I showed you here is cool, wait till you see what he came up with (his system)! Ken might have single handedly re-defined the term “odds” for lottery players.

And by the way…

In my article I only covered the Florida lotto, and although my “system” works with other games as well, Ken’s system is MUCH more robust and works with literally hundreds of games in many countries…you can see the full list on his website by going here.

Trust me, this one is a complete gold mine for lotto players (well, not only lotto!).

And NO…don’t expect to go on winning $3.2 MIL, a big share of a $2.8 MIL pot, or $800K plus 5 numbers in 3/5 draws like other guys that used his slick and ingenious system have. That might not happen so fast. But, as you will see on his website, 1000′s of players around the globe are doing quite well!

Good “luck“!

Mike

The bad news is in order to accomplish this goal, you need more than luck on your side; the good news is you can sell yours and gain with a little preparation and planning according to NUMEROUS studies.

First impressions will make or break the deal!

Step 1

Separate yourself from your home. This may sound rather odd but in reality many people become attached to their homes, and in order to successfully sell your home you need to disassociate yourself completely from the home.

• The first thing you need to do is “let go” of all emotions you have toward the home. You do not need to forget about memories that were made in the home; instead you need to start thinking about the home as a stranger.
• Make a note and tape it to your refrigerator and bathroom mirrors saying “This is only a house, it is a not a person. Homes are meant to be bought and sold. I am moving towards my future!”

Step 2 

Rent a storage unit. Over time, people collect a ton of stuff – from books and magazine to furniture. You will need a storage unit to de-clutter and organize your home. It’s been proven with numerous studies that homes sell better when they have less furniture.

Remove furniture from the home that blocks walkways and place it in the storage unit.

Now is a good time to remove furniture from each room the home and place it in storage as well – leave just enough furniture in each room to highlight the room’s purpose while providing plenty of space.

If you have a leaf in your dining room table, remove it. You will be making a few trips to your storage unit as you continue to prep your home for sale.

Step 3 

De-Personalize the home. It’s time to pack up all personal photographs and heirlooms you are displaying in the home and bring them to your storage unit.

One of the worst mistakes homeowners do when they are selling their home is to leave out their family photographs for potential buyers to see.

Potential buyers should walk into your home and be able to visualize they live in the home.

Step 4 

De-clutter, de-clutter, and de-clutter! This is the point where you really start to look at all the items (and junk) that you and/or your family have collected over the years.

• Items that you have not used in over year you may want to consider donating to your local charity, or packing them and hauling them to your storage unit.
• Remove all books, DVD’s, CD’s and games from shelving and pack away.
• Pack ALL knickknacks in the house. Remember buyers need to visualize them living in the home, not you!
• Remove EVERYTHING from your kitchen counters. Empty kitchen counters make the room appear larger.
• Organize toys in small boxes and keep them in the closets.
• Remove ALL items from the bathroom countertops; it’s important to keep countertops as clean as possible.
• Give every member in the home a small box or bin to pack their essential daily items in, and designate an area in a closet or under beds for the boxes or bins.

Step 5

Rearrange ALL closets and cabinets. It’s no secret that potential buyers love to snoop; they open closet doors and peek in cabinets. Heck, I’m willing to bet you have done this too!

The good news is you already know that potential buyers will be snooping. Have you ever opened a closet door and everything came flying out at you?

Avoid this when trying to sell your home. A home that has clean and organized closets and cabinets instantly says that it was taken care of.

• Hang clothing together – short-sleeved shirts, long-sleeved shirts, pants, jeans, etc. Make sure the buttons face the same direction.
• Organize shoes in pairs and make sure they all face the same direction.
• Remove ANY item that you do not need within the next week in the closets.
• Organized canned goods according to type – green vegetables, yellow vegetables, soups, etc. Make sure the labels all face the front the cabinet.
• Stack ALL dishes neatly, making sure they all face the same direction.
• All coffee cup handles should face the same way.
• Organize spices either by alphabetizing them or from largest container to smallest.

Step 6

If potential buyers can’t see it, then they can’t want it! Remove and replace ALL favorite items in the home.

ANY item, which you want to take with you when your home sells, needs to be removed, and replaced.

Consider your window treatments, light fixtures, area rugs — basically ALL items you have in the home that mean something to you and you simply could not let go of for the sale of the home. Replace these items!

If a potential buyer see’s an item in your home he or she wants but you are unwilling to sell, that could break the deal! Avoid this by simply replacing these items with a replacement you have not attachment to.

Step 7

Make repairs now! You don’t want a potential buyer to walk into your home and immediately be turned off because there are scuff marks on a wall, or the bathroom faucet has an annoying drip.

• Patch ALL holes in walls.
• If your walls have scuff marks, it’s time to touch up the paint. Chances are you probably already have the paint in either your shed or garage.
• If your walls are a bright color (or one that is NOT neutral) consider repainting the walls a neutral color. Neutral colors allow buyers to visualize their belongings in the home, and create an open, airy atmosphere.
• Replace cracked flooring.
• Replace cracked countertop tiles.
• Replace burned-out light bulbs. There is nothing worse than a person turning on a light to see a room in your home and the light not working; this instantly sends the message you did not take care of the home.
• If bedding or curtains are old and worn-out, consider replacing them.

Step 8

Clean and finalize the inside of the home. So far you have disassociated yourself with the home, you have packed and brought belongings to storage, you have made minor repairs, you have organized, and so what is left?

It’s time to clean and finalize the inside of the home!

• Clean ALL (stove, refrigerator, dish washer and microwave) appliances inside and out.
• Clean your fireplace if your home is lucky enough to have one.
• Wash ALL windows inside and out until they sparkle.
• Apply fresh caulking to the bathtub, shower and sinks.
• Vacuum the entire home daily.
• Wax and/or mop all floors daily.
• Replace old, dirty, worn rugs with new, clean ones.
• Hang freshly laundered towels in the bathroom(s).
• Dust all furniture.
• Dust all light fixtures including ceiling fans.
• Clean and remove any and all cobwebs from corners.
• Polish ALL chrome faucets and mirrors until they shine!
• Consider having carpets professional cleaned.
• Decorate your dining room table with an elegant centerpiece.
• It’s important to eliminate all odors in the house. Place potpourri and/or scented candles in all bathrooms. Air freshener and commercial deodorizer works to eliminate pet or smoke odor.
• Add a fresh bouquet of flowers in any and/or all rooms in the house as final touch.

Step 9

Create curb appeal! Creating curb appeal is equally important to staging and prepping a home for sale.

If potential buyers drive past your home because they don’t like what they see on the outside, you will never sell your home and gain — sad but true!

After all, you want them walking into your home and whipping out their checkbooks. Right?

• Spray down sidewalks and the exterior of the home with pressure washer. If you don’t own a pressure washer, you can rent one.
• Relocate all outside toys, bicycles, etc. away from the house. You may want to consider placing these items in your storage unit.
• Trim all bushes.
• Mow the lawn once a week.
• Apply a fresh coat of paint to the window trim.
• Apply a fresh coat of paint to front door of the home.
• Make repairs to gutters if needed, and apply a fresh coat of paint.
• Install a new doorknob and lock.
• Verify that the street numerals are visible from the street.
• Place a large potted plant next to the front door to add visual appeal.

When it comes to preparing your home to sell and gain, it’s important to remember that common sense goes a long way.

Potential buyers do not want to see how you lived in the home; instead they want to visualize themselves living in the home. <<<—– read that sentence again and again, it’s KEY!

The trick is to create an empty, yet appealing palette anyone can visualize themselves decorating.

Foreclosure rates are steadily increasing, and one-time homeowners are turning back into renters.  According to forecasts, the real estate market is due for a flood of new foreclosure properties MEANING renters.  Industry estimates state that only 40% of foreclosed properties are listed on the market for sale.

What does that mean to you as an investor?  O-p-p-o-r-t-u-n-i-t-y! 

Monica Main  from apartmentbuildingcashflow.com,  who has made millions in real-estate and develops highly profitable real estate wealth building systems, sums it up nicely.

“Now is the BEST TIME to get started in real estate investing.  All of the real estate multi-millionaires have gotten started in the “bad times” when they got DEALS GALORE.  All of the real estate investors who lost their shirts got started in the “good times” when the prices were TOO HIGH!”

Matthew A. Martinez, author of several books including “Investing in Apartment Buildings: Create a Reliable Stream of Income and Build Long-Term Wealth,” is an accomplished real estate investor and principal of the Beacon Hill Property Group.  After two years of investing, he was making more money from his rentals than his 9 to 5 job.  His books are excellent resources for anyone wanting a more in-depth look at investing in apartment buildings.

I have had my real estate license for over seven years, and have worked with some of the most successful agents in my area.  They personally invest in rental properties, and advise their clients and families to capitalize on the opportunities as well.

Because you’re dealing with short-term leases, you are able to keep up with inflation.  As the market rises, you can raise your rents/income.  Real estate values are going to increase over the long-term, so you will also have equity appreciation.

Interested?  Let’s take a closer look!

Where to begin?!

As with any financial investment, there are certain steps you need to take to ensure your success.

• Find a qualified real estate agent
• Select a property with positive cash flow
• Do your homework

Get the right help

The first step in your search is finding a qualified commercial real estate broker.  You want someone who knows local investors and laws, can read and interpret financial statements and determine return on investment, and can help you establish a fair price.

In your daily travel, you most likely see signs for commercial and multi-family properties.  Notice the agent’s name.  If she has several signs on well-kept buildings, it is an indication that she has garnered the respect of investors.

Call your board of realtors for a background check.  This call will only take a few minutes, and can provide you with valuable information.  You can find out if there have been any complaints or violations filed against the agent.  You can also easily gauge whether or not the agent is respected by his/her peers by the response you get to your inquiry.  Realtor boards are well-versed in handling these calls and hold all members to a strict code of ethics.

Talk to other investors.  You can easily find property ownership information through the Assessor’s Office – most have searchable, online records.  Ask them who they trust and work with.  Most people are happy to share opinions if you ask.

Once you have an idea of the reputable agents, conduct some interviews.  Make sure your values and style are in line with the agent’s.  Trust your instinct – if something seems “off” find someone else to work with.

Congratulations!  You have found your agent … now on to the fun part.

Finding the right building

The best case scenario is to find an apartment building that already has positive cash flow and seems physically sound.  With so many properties going into foreclosure and interest rates incredibly low, now is the time to get a great deal.  There is huge demand for rental housing now as well.

Once you and your agent identify potential buildings, take a look at the financials.  The current owner or property manager will provide you with profit and loss statements for the past few years as well as current leases.

Identify the overall operating expenses and income.  Ideally the income will cover the expenses (including maintenance) and management costs AND cash flow.  One of the benefits of an apartment complex versus a single-family home is that you will have multiple streams of income.

Take your time and look at the available options.  I live in a relatively small community – about 110,000 residents – and there are currently over 40 multi-family properties listed.  With that kind of inventory, you are able to be selective.

Time to make the offer!  Your agent will find comparable properties to help you arrive at a purchase price so you will go in armed with information.

Do your homework

You have found the agent and the property.  You’ve made an offer … now the real work begins.  In your offer, there should be a Feasibility Contingency (I would suggest no less than 30 days) so you have time to research the property.

I can’t stress enough the importance of due diligence.  If you do your homework, there isn’t much that is unforeseeable.  Knowledge is power.

• Physical inspection of the property
• Analyze the financial information
• Consult an attorney for landlord-tenant laws
• Research mortgage options for best rates and terms
• Determine if you will self-manage or use property management services

Physical inspection – Hire a professional inspector with commercial experience to conduct a thorough investigation of the building for any issues.  An inspector that typically deals with single-family homes may not have the expertise needed for a multi-family property.  Make sure the inspector is licensed, bonded, and certified.  Check the ASHI website for recommended inspectors in your area.

The inspection will identify any deferred maintenance, plumbing/electrical problems, as well as any small items that should be addressed and corrected.  He should cover the entire exterior and interior of the building including each apartment unit, and provide you with a written report of the findings.

Get cost estimates for any issues that come up in the inspection.  You will be able to use these findings for negotiation.  It is possible that the Seller will fix the problems (and provide you with the records) or lower the purchase price and have you correct the problems.  Also if you find that the building is in bad condition overall, you have the ability to walk away from the deal and get your earnest money back.

Analyze financial records – The Seller should provide you with all financial records as well as lease agreements and rental history.  If you aren’t comfortable reading profit and loss statements or legal documents, take them to a professional.

Most investors make purchase decisions based on the CAP Rate, which is the net operating income (income less expenses) divided by the purchase price.  CAP Rates vary by location and property type.  Your agent will tell you what a fair rate is in your area.

You also want to look at the leases and rental history.  Does the building have high turnover and vacancy, or is it in high demand?  Are there long-term tenants with a history of paying rent on time?  When was the last time rents were increased?

Once all of the data checks out, you will be able to meet with mortgage lenders to determine the best loan for you.

Getting a loan – Commercial lenders look at the overall financial health of the property and the prospective borrower, YOU.  They will also let you know what kind of cash flow you will need to cover the debt.

30% is a typical down payment for a commercial loan.  Rates on investment properties are around 5.25%, which is higher than owner-occupied single-family, but still incredible.  Shop around for rates and terms and make sure there is no prepayment penalty. 

Self-management versus outsourcing – The easiest way to decide if you can handle the task of property management is to ask yourself this question … “What is my time worth?”  Do you have the time to deal with tenant issues, or would it be better to have someone else handle them?

Here is a rule of thumb for property management:

• 20+ units should support a professional, live-in manager
• Between 10 – 20 is managed by an off-site professional manager
• 10 or less is best to manage yourself

If you hire a professional manager, you can expect to pay 8-10% of the rent as the management fee.  A property manager will collect rents (and any late fees if needed), post notices of delinquencies and inspections, fill vacancies and execute leases, deal with any repairs, and generally handle any communication with tenants.

On the road to financial freedom!!  Investing in an apartment building is a smart financial move as long as you minimize your risk upfront.  You will benefit from multiple streams of income and own property that will build equity for the rest of your life.

By following some simple steps, you can invest with confidence.  Surround yourself with the right people.  Find the right property.  Capitalize on the opportunity.

One of the best gifts we can give ourselves is freedom from financial burden.  We all want to be independent and create wealth.  We all want to make sound financial moves.  You’ve got this – it’s your chance and you can make it happen!!!

If you are really serious in making some serious money with apartments, I strongly recommend you check out Monica Main’s real-state wealth building system at apartmentbuildingcashflow.com.

Monica’s system is designed around one objective – getting you from zero to a solid monthly cash flow (over $30k) the quickest and cheapest!

In the event of a loss, good insurance coverage can be priceless.  It does, however, come with a price tag of its own.

To ask, “How much does insurance cost?” isn’t a whole lot different than asking how much a brown dog weighs! 

In pricing insurance, there are many variables involved which take into account what you’re insuring, to what extent you wish to insure it and how much you’re willing to pay to insure it.

How much?

A less ambiguous answer would be; the least amount possible to get the coverage you need!

I saw a comedian recently do a bit on insurance, labeling it as ‘legalized gambling’.

His routine involved him wagering with an imaginary agent saying;

“I bet this much you will eventually crash your car.” 

“Bet I don’t.”  He replied.

He slyly grinned and mimed licking his thumb and slowly peeling a bill at a time from his imaginary handful of money.

When it comes down to it, in a sense, insurance could be viewed as a wager; and, as with casinos, insurance companies don’t like to lose!

Regarding most types of policies, let’s examine some ways of hedging your bets and spending less for insurance.

Straight from the horse’s mouth 

Okay, maybe not the horse, but a fourteen year veteran of the business as the proprietor of a successful independent insurance agency, and incidentally, my spouse!  She states:

• A policy paid in full, rather than segmented into payments is worth significant savings right off the top.  In some cases as much as a 25 to 30 percent discount!

• If a payment plan is necessary, automatic electronic withdrawal, aka: a paperless payment system, is worth some savings also.  

Not only does it save the company billing expense, it saves the policyholders thetime and effort of making their payments. 

At the same time, it also eliminates forgetting to send it in!

• ‘Bundling’ multiple policies also creates discounts across the board.

If you insure all of your vehicles, your home, your boat, the whole kit & caboodle    with the same company, that too, is consideration for yet further savings.

• More vehicle specific, certain factors figure in.

Home ownership 

Companies typically interpret that to indicate stability and   responsibility.

Married verses single is a plus and one’s driving record is obviously considered.

The type of vehicle to be insured, the anticipated mileage and usage of the vehicle factors in, as well.

The vehicle’s safety equipment such as airbags, anti-lock brakes, anti-theft measures, especially GPS tracking equipment, are all certainly considered aspositives to lower the cost.

Age is also a consideration.  *Youth, as well as seniority are factors.

With most companies, regarding youth, a good grade point average is a    consideration for a discount! (Not to mention very beneficial in many other aspects!)

*Without harping too much on age, I personally disagree with the statistics that     dictate the highest risk drivers are males under the age of 25!

MANY more times than not, while driving, if I’m cut off, hacked off, flipped off, or  have my doors blown off, it’s some cutsie little gal in a zippy little ride who one    can only believe, truly thinks she owns the road!

For seniors, there are driving safety courses available that some companies view favorably in offering discounts.

• She also strongly recommends that you not be shy about asking an agent if every possible discount has been applied! 

Are there possibly any others?

**Available discounts, though not always presented at the time of the sale, arenumerous!  Make the agent think about it by letting him or her know that you are very discount conscious (and savvy) and you don’t want to miss a thing!

Clark Howard, syndicated consumer advocate and my undisputed favorite‘Consumer Warrior’ reinforces this concept.

“An insurance company will let you pay a higher premium unless you ask for applicable discounts!” 

Don’t believe it?  Let your agent know you’re dissatisfied with your premium and you’re going rate shopping.  You will likely be amazed at the results!

On-line insurance vs. a store-front:

While some people still believe that face-to-face is better, purchasing on-line is certainly a viable option.

Storefront agents definitely side with the old-schoolers on this one! 

The truth is, however, that while somewhat less personal, the on-line insurance stores do typically offer lower rates by eliminating the middle-man.

No frills, just insurance.

Now, flip the coin.  Dealing with an agent does allow for one-on-one communication regarding discounts and other variables that may not be addressed on-line.

Having a live agent who is familiar with you, and you they, whom you can call to discuss any issues that may arise is always nice.

And, a pleasant conversation, a comfortable environment and a friendly smile are pluses for the storefront. 

No bias here, just making objective comparisons!

When shopping rates, on-line or through a storefront, two things are very important…

First, be sure that each quote is for the identical coverage; line for line, apples to apples.

Second, be aware that if, for what ever reason, you don’t have insurance in force at the time, you can expect to make a large down payment and suffer higher rates.

Homeowners Insurance

Turning once again to Clark Howard, in his discussion on the increasing cost of Homeowner policies being due to factors associated with the down housing market, he says this,

“The fact that your home is down in value is irrelevant for homeowners insurance.” 

“The cost to rebuild or replace your home from the ground up in today’s market is still very expensive.” 

“So, the problem is that the cost of replacing it is greater than the amount of insurance on most homes.” 

“Even in a down market, many homeowners are underinsured and should actually raise the amount of insurance on their home.” 

In conclusion he offers some hope;

“Thankfully, you can find big differences among different insurers for the same coverage if you shop around.” 

“But one thing to watch out for; If you’ve switched insurers recently, don’t switch again! 

“Longevity with an insurer has value.”

RAISE the DEDUCTIBLE?

Huh?

A study shown in Money Advisor magazine states in their example that by increasing your deductible to $1000, if you have a claim exceeding the deductible, you would recoup that $1000 over a four year period in premium savings!

A higher deductible may also prevent one from ‘nickel-diming’ the insurance company into raising your premium.

It happens!

One consideration to make before raising the deductible over $1000 is to check with your mortgage holder and be sure it is permissible under the terms of the contract.  In some cases, it isn’t.

This concept holds true for other types of policies also.

Ahh, Life Insurance!

Cash in your Whole Life policy and buy Term Life Insurance!  Then, invest the difference in an IRA!

That was the battle cry of the A.L. Williams Insurance Company some years back!

Agents who dealt in the traditional and substantially more expensive Whole Life/Cash Value policies were literally up in ARMS over the new-fangled concept.

Anti-Replacement-Measures…

ARM was developed by the huge insurance companies for battling the very convincing spiel put forth by the hoards of A.L. Williams representatives.

I know this because I was a Williams rep!   I still believe it makes sense, but it takes rigid discipline to stash that extra money away.

Accumulating cash value within a Whole Life policy, at a perhaps lesser rate than even a savings account offers, is however, a more sure method of saving a little money for some future date.

Term Life remains the most affordable type of policy.

And, as with any insurance product its rates, terms and conditions are shoppable.

HMO, PPO, POS, FFS, OMG, ROFL, WTH… 

.…is up with health insurance in the USA?

I have grubbed and searched for tips regarding the best rates in this segment of the industry and simply put…

Get a good job that offers good group insurance and participates heavily with the premiums!

Staying as far away from politics as I possibly can, healthcare insurance in this country, by whoever’s agenda, needs serious reconsideration!

According to the Insurelane Learning Center, an HMO plan (Health Maintenance Organizations) is the least expensive and consequently, offers the least freedom of who you choose to provide your health care.

On the other end of the spectrum is a plan known as the Fee-for-Service plan.

This is the most expensive, but lo & behold, it is insurance as we once knew it!

You get an x-ray or other medical procedure, the hospital or doctor’s office files the claim and voila!

You get healthy and the bill gets paid!

The PPO and POS plans fall between the HMO and Fee-for-Service plans in cost and efficiency.

I had to see what Clark Howard had to say on the matter and I was pleasantly unsurprised at an idea he had.

By perusing websites that offer coupons for everything under the sun, he has seen coupons for numerous medical procedures!

Not just cosmetic or optometric type services, but serious medical and dental procedures!

He says that while this doesn’t substitute for health insurance, if you can score a deal, do it!

Here’s the list!

As promised, this boils down to a list of tips to help you save money on the various insurances you require.

Here are your ten dos and the five don’ts:

DO!

• If not paying in full at the time of signing, set the payments up for automatic withdrawal.

• Bundle your policies.  Make your agent your one-stop-shop.

• Check for new discounts at each renewal period.  The industry is constantly changing and new savings can come along that you may never realize unless you ask.

• Youngsters, keep your grades up! (For many reasons!)

• Seniors, check with your insurance company and ask if they will recommend any safe driver courses that will qualify you for a discount.

• Check on-line for the best rates if the personal service of an agent isn’t something you need. 

• When shopping rates, be sure the comparison is apples to apples.

• Bump that $250 to $500 deductible up to around $1000! 

You’ll save in the long run.

• Consider Term Life Insurance.

• Regardless the product, shop it!

Don’t!

• Be bashful about letting your agent know you want lower rates and will shop if    necessary!

• Allow a policy to lapse.  Starting over is expensive!

• Nickel & dime your insurance company, they will raise your rates!

• Do things that are detrimental to your driving record!

• Jump from company to company too often.