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!

“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.

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!

Current statistics show that even those who have a perfect resume (or close to perfect – honestly, I don’t think there is such a thing as a killer resume!) may not land a job due to a horrible cover letter!

If you have a few minutes to spare, and want to know the secret to landing job offers that will make others envious of you, keep reading! After all, in order to get hired for a job, you first have to land an interview.

Spending an afternoon writing a cover letter only to erase it and start over is not a way I want to spend my afternoon. Instead, by following a few steps (and learning a few tricks) you can create one heck of a killer cover letter in just a matter of minutes!

Minutes compared to hours? Hmm, I vote for the minutes! This saves me time to search for employment rather than writing a cover letter that may never even get read in the first place!

I will show you step-by-step how to create a cover letter that will get your phone ringing so much you will wonder why you haven’t done this before now. Before you know it, your calendar will be flooded with hot job prospects and interviews!

So, let’s get started.

Grab a pen and paper and take notes! Jot down that a cover letter should be four paragraphs no more. There is no need to explain your entire life story in a cover letter – that would prevent your resume from possibly even being read or worse yet a potential employer to overlook your LONG cover letter.

Step 1

Do not start your cover letter with a statement such as “I am excited to submit my application for your review.” Starting a cover letter that says this or something similar to this only makes the readers think you are rather stiff, and they would be lucky to have you as an employee. Bad first impression!

Step 2

Now that we have covered that part, you should also never start your cover letter with something similar to “I am a highly skilled professional with proven experience in xyz.” This instantly leaves your statement open for thought and possibly a difference in opinion. Again, bad idea!

It is important to remember cover letters do matter, and do make a difference even if your cover letter is short!

Step 3

Another thing you never want to start your cover letter with is “I have enclosed my resume….” The reader will know you have enclosed your resume.

Step 4

Start your cover with a joke, or even a story as this will grab his or her attention and immediately make your cover letter stand out from the rest of applicants.

Perhaps you may want to state something like; “a reason I want to work for your company is because I remember something my grandfather said…. “

You have instantly attached human traits to your cover letter grabbing the reader’s attention immediately! Good job!

You ARE a step above the rest.

Step 5

Find a mutual contact to include in your cover letter. Statistics show this the number one key factor to grab attention. You can say something like “ Jane Doe recommended that I get in touch with you about the zyx opening at Today and Today Co.”

At this time, you should have your first paragraph of your cover letter complete.

Step 6

In the second paragraph you will want to write a short summary of your career experience which is tailored to fit the company you are sending your killer cover letter and resume to.

Remember this paragraph is a SHORT version of your expertise. If you give away too much the reader has no reason to read your resume!

You want to include specific accomplishments that are relative to the position you are inquiring about starting with your most impressive accomplishment. Format your accomplishments in a bullet form such as

• In 2004 I was named “Best New Chef” at Jane Doe’s Diner.
• In 2007 I was promoted to head chef at John Doe’s Eatery.
• My rate of unsatisfied customers is EXTREMELY low.

Ok, so we have completed our first, second and third paragraph of our cover letter. Now it’s time to work on the last (and fourth) paragraph.

Step 7

This paragraph is where to you tell the reader when you plan on getting in touch with him or her. Thank the reader for reading your cover letter and end it by writing something similar to “I will call or e-mail you in a few days to set up a time that is convenient for us to meet.”

An example of a killer cover letter that will get your phone ringing off the hook with hot job interviews and top job offers should look something like this:

“Jane Doe suggested that I get in touch with you about your job opening for xyz position.

I am a seasoned chef at John Doe’s Diner in Island Town, Nowhere. I have a strong background in the restaurant business with an emphasis in meal planning and healthy recipes. I have extensive knowledge in creating and cooking delicious low-calorie meals, special food diets, and running a kitchen productively.

• In 2004 I was named “Best New Chef” at Jane Doe’s Diner.
• In 2007 I was promoted to head chef at John Doe’s Eatery.
• My rate of unsatisfied customers is EXTREMELY low.

I am seeking an opportunity which will take full advantage of my experience. I have extended my search for employment outside of Island Town, Nowhere, as well as actively seeking a new opportunity inside as well. Jane Doe thought it would be worth our time to meet. I will call you in two days to set up a time meet that is convenient for you.

Regards,

Signed Me.”

If you are anything like me, your head is probably spinning right about now. This is A LOT to take in and learn by reading one article, trust me I know!
Don’t worry, just take notes and reread the article if you need to — hey there is no shame in reading something more than once!

I will point out a few things to remember that are important when it comes to creating a killer cover letter

• Your cover letter should NOT be longer than four paragraphs. A long cover letter may not be read ensuring you do not land the killer job of your dreams.
• Never say how excited you are. Saying you are excited simply does not add to your cover letter, in fact it does the opposite.
• Never say you are HIGHLY experienced, as this may vary from opinion to opinion. Your opinion may not be the same as your potential bosses.
• Never say you have enclosed your resume. It is rather obvious if you did or did not enclose your resume.
• Start your cover letter with a joke or a SHORT story. The key to remember is to keep it short and sweet.
• Add a mutual contact. Adding a mutual contact adds a human characteristic to your cover letter.
• Add a short summary of your career. And, I do mean SHORT! No need to tell your life story.
• Include important accomplishments, with your proudest accomplishment listed first. This is your time to show off!
• Explain why you are getting in touch with the company. After all, no one likes to play the guessing game!
• Thank the company for taking their time to read your cover letter and resume. It is always polite to end your cover letter with a thank you. I don’t know one person who does not like to be thanked, and I am pretty sure you don’t either.
• And, end your cover letter by stating when you plan on following up – either by calling or emailing. This tells the company when to expect to hear from you, and shows you are eager but without being pushy.

If you follow these tips to creating a killer cover letter, you will notice your phone will start ringing. Getting your phone to ring is the first step in landing a job – after all, if you don’t get a call back or a response, your chances for employment with that specific company is slim to none!

Current statics show that over 99% people do not know how to create a killer cover letter.

That’s right…ninety nine percent.

If you have made it this far, you are already above the rest…but implementing the above strategies, will out you light years ahead of the crowd!

Good luck!

P.S. Before I finish, just a few words regarding job interviews…well, more specific, job interview answers!

They are stressful, they can be mysterious, and they CERTAINLY are what makes or breaks the job offer! You got to be on the top of your game with your answers and you got to impress the people interviewing you. Unfortunately, most people get weeded out at this stage because they have zero experience as to what really counts in these interviews.

Being that person that spits out EXACTLY what the interviewer wants to hear, learning to spin stuff, mastering correct body language, learning the interviewers hidden needs (yes, they ALWAYS have them!), is what it’s all about and what counts….and it’s what Bob Firestone from “Job Interview Answers” will teach you how to master. Check it out here.

Bob has helped 1000′s of people around the globe with his “out of the box” type, unconventional, and smart ideas and methodologies.

If so, you might have checked out your prospects on NASDAQ and ran away crying because of the dollar signs you saw next to the ticker tags.

“Google is selling at $600? I could get an Ipad for that.”

That’s truly a long-term investment, and unless you have an extra $30,000, it’s probably not going to mean much for your wallet. But what about a simple way to invest with a quick turnaround and the ability to buy in bulk?

Fortunately, they have that.

It’s a nice little package called penny stocks. Penny stocks, as you might imagine, are called so because they are cheap. As a rule of thumb, they are shares which sell for less than a dollar. Some actually even go for pennies (hence the buy in bulk).

When my friend, Ryan, brought this different way of investing up to me, I was skeptical. It sounded a little sketchy and a little more untrue. But when I watched him turn his diligence into a string of profits, I had to take another look.

That’s when I realized: If NASDAQ and other markets are an eight-mile stretch of bumper-to-bumper traffic, then penny stocks are the autobahns. They’re a fast-moving, energetic way to turn profits in days.

I was sold. I picked Ryan’s brain for all he knew, and lo and behold, it was a cinch to understand.

And when you understand them, profiting on penny stocks can be easy.

So I’ve got you covered on the understanding part, you just strap in for the ride.

Here are the dos and don’ts for maxing out your profits on this lesser-known market.

Understand the risk

First and foremost, realize that penny stocks are the most volatile on the market. That’s because they aren’t traded often. So when they are, it can spell titanic changes for the stock price.

And because there are fewer transactions, at times it can be hard to sell a stock. While you might not realize it, demand does play its part. You could have a summer home in France, but if you can’t get rid of it when you have to, it might as well be nicely-painted firewood (a little extreme, but you get the point).

On top of this, penny stocks aren’t traded on the big markets. They are sold on sites such as Over the Counter Black Board and Pink Sheets. Companies get onto these markets with fewer regulations than on other markets like NASDAQ.

With less regulation, it is far easier for companies to make up false gains and fool possible shareholders.

But realizing these pitfalls is 75% of avoiding them. Follow through on your research, and you will stay way ahead of the curve.

Cover your basics

No good money-making plan comes without due diligence, and if you are starting from scratch you’ll need to know three fundamentals skills for doing it. Within days, you should be able to master balance sheets, income statements and cash flow statements.

It sounds boring, but often times you only need the most important information from them. TIP: Don’t trade before you learn this.

Here’s a fast guide on how to use these sheets:

• Balance sheets give you the basics about how much a company is worth (aka assets).
• Income statements show a business’s recent earnings. A company pulling in significant income would be your stud, while a company managing little profit might be stale.
• Cash flow statements show how much money is going into and out of a business. Are they actively bringing in sales and clients while investing money for growth? Or are they throwing their cash around like a six-year-old at an ice cream truck?

Investopedia is a straightforward site that will tell you anything you need to know about these sheets in the simplest terms possible.

Look for prospects

Finding the companies to invest in is the fun part. Sure, you can pay for tips, but provided I have the time to do research, I always choose the free route.

Newsletters and forums are easily the best way to find investments. But when searching for “Penny stock forums,” you might find your search a little overwhelming. The market is full of people trying to give advice on these fast-moving stocks. If that doesn’t tell you it’s worth it, I don’t know what will.

At first, I had trouble deciphering up from down with all the options I had. “That’s why you let others do it for you,” Ryan told me right before he gave me an airtight time-saving tip. Imagine all those tips condensed into one searchable site.

On a little piece of paper, he wrote Stockreads.com.

Look closer

Finding good companies is like an interview process: Take it one step at a time. Essentially, the two are one in the same. At the heart of it, you’re looking for someone to make you money.

So dig a little deeper. Get a hold of the financial records (balance sheet, etc.) and ask some questions.

• On the income statement, check if they are bringing in money consistently each quarter. Skip this step and you could end up buying an ice cream shop in Ohio in the middle of winter.
• While looking at the balance sheet, compare the company’s debt to its assets. A healthy company should have less than half the amount of debt in relation to its assets. In other words, if they have $2 million in assets and $1.5 million in debt, it’s a red flag.

Once you are well-versed on your sheets, this won’t take you more than five minutes.

Review the industry

These aren’t your Grandpa’s stocks. Whereas looking three years into a company’s history might work for well-entrenched stocks like Google, many penny stock companies haven’t been around that long.

So look at similar companies, also known as sector analysis.

Check out how other businesses in the same industry are faring. Have they been in the news? “No” is usually a good thing. Besides googling the name of your company, check out their competitors and the industry in general.

TIP: This is the stage to be wary of something fishy happening (like companies falsely ballooning their shares). The best way to avoid this is to keep high standards. Stay away from the “iffy” companies, and you’ll never get burned.  

Read the warnings from regulators

Once it’s narrowed down to a handful of companies, move one step further. You’ve searched the company’s name, but find its officers. If you can’t find the names of a company’s officials, discard them like yesterday’s news. Once you do find them, read up.

• Have they or the company had any money problems?
• Was anyone the subject of illegal trading or some other scandal?
• Are any of the officers former employees of Enron?

If so, you get the idea.

The Securities and Exchange Commission (SEC.gov) easily lets you find this information on companies using either the company name or ticker.

Check how much information is available about the company

As mentioned before, these stocks are subject to less regulation. This could mean they aren’t registered correctly, or not all company information is available to investors.

The way I figure out if a company has enough information to make me comfortable is the web site OTCMarkets.com (Don’t thank me, thank Ryan).

Listed companies are broken into three tiers based on how much information they provide to you. The top tier, OTC QB offers the most information, whereas OTC Pink offers the least.

For you own comfort, remember: The more information you find, the better.

Be sure you’ve found the best

Considering it’s your money, this should go without saying. Always double check your decisions.

• Rehash what makes you think this stock will do well
• Take another quick look at the industry.
• Make sure having a cool logo isn’t part of the logic behind your choice.

Staring at the computer screen for an extra hour will often yield more confidence in a company or even a better deal. If it does, it made all the difference.

Have an entry and exit plan and stick to it

Know what you want from a stock when you buy it, and you’ll avoid floating in a sea of less return.

For example, let’s say you buy a stock at $0.05. How long should you hold onto said stock? As a rule, set a (close) ceiling and a floor for how far you’re willing to go.  If the stock makes it up to $0.07, sell it. Don’t get comfortable and tempt fate. This is stock trading, not a poorly made horror film.

On the flip side, if the stock goes down to $0.03, get out and don’t look back.

DON’TS of trading Penny stocks

• Don’t invest money you can’t stand to lose. This is the fundamental rule of trading, and money in general.
• Don’t put all your fuel on the same fire.  The safest way to see returns (and to gain experience) is to put your money into different stocks. Two or three is the best number to avoid stretching yourself too thin.
• Don’t buy stock in industries you don’t like or understand well. Take your industry into consideration. If you’re in IT, you’ll have a lot better idea about the market for wireless routers than an underwater welder. While that might not put you ahead, at least you aren’t behind.
• Don’t invest in companies that aren’t traded in volume (aka a lot and often). Search the amount of daily transactions made with a company’s stock. Look for companies with a lot of trades day in and day out. This will ensure all the transactions are not just from one investor. It will also help you make sure once you do turn a profit, you can turn that into cash.
• Don’t be too trusting. When researching a company, ALWAYS be wary if you can’t find all the information to make an informed decision. Sure this could be a fluke, but they could also be hiding something.

Follow this plan and you’ll see results. When it comes to this game of quick return, you are only limited by the knowledge you can absorb.

[Editors Note: If you want a "hold me by the hand" solution to cashing in on one of the greatest opportunities out there for mushrooming  small amounts of cash to monumental wealth,  you might want to consider grabbing what  James Connelly, A.K.A "The Penny Stock Prophet" has  in store for you on his website.]