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Robinhood App Review For New Investors

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What is The Robinhood App?

Robinhood is an incredibly popular stock trading app. The fact they don’t charge fees has proved very popular with the public. When they first started “no fees” this was unique, but several other companies have now copied this strategy. The strategy worked and drew in 13 million accounts, typically from young people new to investing.

In June 2021 Robinhood app was forced to pay $70 million to shut down some investigations that related to misleading customers, approving ineligible traders for strategies that proved to be risky and numerous outages that stopped investors from accessing the platform. The problem of whether Robinhood has the resources to serve the vast number of accounts was the core of this problem. The question is whether they have learned from this experience.

When Robinhood was the only game in town when it came to no fees, this competitive edge allowed them to gloss over potential problems, but now they are no longer unique they have to compete on other fronts as well.

The Robinhood app aims to make mobile trading easy for amateur investors.

Making Money With The Robinhood App

Robinhood App users can invest in the following options:

1. Long stocks, no short selling, and no penny stocks.

2. Both simple and multi-leg options

3. Cryptocurrency

4. Fractional stock trading (just under 7,000 stocks and ETFs)

This is a rather limited range compared to some other platforms, but the upside is the limited options help in keeping the platform easy to use.

The robinhood app is one of the few brokers that allow investors to trade cryptocurrency. There are several options here:

1. Bitcoin (BTC)

2. Bitcoin Cash (BCH)

3. Bitcoin SV (BSV)

4. Dogecoin (DOGE)

5. Ethereum (ETH)

6. Ethereum Classic (ETC)

7. Litecoin (LTC)

They also provide data for another ten varieties of coins.

The Robinhood App does not go into investing in physical real estate. Why not try out a site for real estate investing?

Features of The Robinhood App

Both the website and app are very usable – Robinhood was started as a place where newbies could begin to invest. It was more of a platform for beginners than experienced investors. This has not changed, and the platform still lacks subtleties that experienced investors will appreciate but which the novice may not even be aware of.

Streamlined trade experience – The screens on both the app and website make it easy to trade. However, this simplicity is achieved by removing a lot of the customization available elsewhere. As a newbie, this may not be a problem, which is why this platform is so suited to novices.

Investor education – You would expect a platform aimed at beginners to have a large library of training materials. Robinhood does not, although the company is slowly adding new training material

How The Robinhood App Makes Money

People often ask how the Robinhood app makes money since they do not charge fees. It is quite simple they make a lot of money from the interest suiting in all those 13 million accounts that are awaiting investing. They also receive a fee from Market makers in return for pointing their customer’s equity and options orders their way. They also loan your sock to another trader or hedge fund, so, typically they can sell it short. Robinhood keeps all the fees for these transactions

The Robinhood App can be a nice advisor, but consider being your own expert advisor with EA Builder.

Robinhood App PROS

1. As long as you do not upgrade to Gold, you get free trading and cash management.

2. The website and the app have very similar user interfaces which makes switching back and forth between them much easier. In fact, it is generally well designed for functionality and easy to use.

3. You have instant access to your money and there is no account minimum.

Robinhood App CONS

1. Generally speaking, the Robinhood app is very limited in what it offers its customers (apart from cryptocurrency trading) and there are not many opportunities to diversify your portfolio. If mutual funds/bonds fractional share, and investing in retirement are of interest to you, Robinhood may not be for you.

2. At the beginning of this article, I mentioned the penalties for outages that were imposed on Robinhood. It seems that they have not fully learned from this experience and customer service continues to be patchy. Though it has to be said that this problem exists with other platforms too.

3. While Robinhood is rare amongst brokers in allowing trading in cryptocurrency, the spread can be a lot more than is common on other platforms.

Final Thought

Are you a novice investor, looking to try out investing for the first time? If so Robinhood may be right for you, in that have simplified things as much as possible, removing some of the complexity and options typically available. As a beginner, this may make things easier for you, but as you gain experience and seek a more sophisticated solution, Robinhood may no longer seem so attractive.

Bonus Strategy

There are many investing apps out there in the market. The focus on this article was to a better understanding of just one. If you haven’t had a chance to read others, my review on Acorns and Betterment have a similar tone. Please make sure you go back and read those. Personally, I enjoy my Acorns app and have had it for quite some time. If you are interested in another investing app other than the two above, please check out my review on Stash. It might be a better option for you. There is nothing that says you cannot have multiple investment accounts. I would encourage doing your own review of Robinhood and others. One of the best things to look for in any investing apps is the cost and the options to invest.

Before you go…

Utilizing these apps and trading stock options can be a very successful way to generate cash flow. The wealthy have seven streams of income from all four asset classes. One of the asset classes that I encourage everyone to start is their own business. For more on the asset classes, check out my other posts on Stock Market Investing. Please also check out my post on general real estate investing strategies. So, if you really want to find that financial freedom, you need to create a personal business that can become turn key to not only fund some of your real estate deals, but a business that makes money while you sleep. That is true financial freedom.

The program below offers a coach mentor on day one. It is the exact program I used to get started online. In addition, it walks you learn the process to get started in an online business. There is no inventory, this isn’t e-commerce or drop shipping, this is digital marketing. It will also teach you how to build digital real estate along with your stock portfolio or really any investment portfolio

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

When we make more money, we can utilize those funds to invest more.

-Cameron

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Fundrise Review: Real Estate Investing App?

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What is Fundrise? (Official Fundrise Review)

In this Fundrise review, we discuss features, pros and cons and general real estate investing.

For years there has only been one way to invest in Real Estate. This Fundrise review will show a new way to invest in real estate. Fundrise was founded in 2010, is an online real estate investment business. Through Fundrise, investors can, with a minimum investment of just $500 become involved in a variety of quality real estate investments. The platform is available to any U.S. citizen who is over 18 years of age. Especially with their “Starter Portfolio” there is no requirement to have any set level of wealth or annual income.

Making Money with Fundrise

There are two ways that your investment in Fundrise will earn you money:

Dividends: The company returns to investors a part of the cash flow and capital gains generated by the company portfolio.

Growth: Your share of the total growth in value of the Fundrise investments will increase in value.

Investing in Fundrise allows small investors to diversify their portfolio away from stocks and share into a more mixed investment. That being said, you should be in a position to let your investment stay put for five years. It is important to check disclosures on each investment to carry out due diligence and check any potential fees that may arise. In addition, the annual asset management fee of 0.85%, and the 0.15% annual investment advisory fee are important to note.

Features of Fundrise (The Fundrise Review)

You do not need to be an accredited investor: Some online real estate platforms restrict access to accredited investors only. This is not the case with Fundrise.

Lock-Up period: The lock-up period on Fundrise investments is 5 years. The Fundrise investment opportunity is good for those who have a long term investment vision and investors will want to leave their investment longer than the minimum five years, if they want real returns.

The Platform is easy to use: Read the investor disclosure first. Once that is done, it takes just 10 minutes to sign-up. You provide basic information like name, address, phone number, and social security number. You then choose how you want to fund your account.

Projects – The fund is involved in both residential and commercial property and works on renovation, development, and financing. There are both starter and advanced to suit different kinds of investors.

Key Facts Held Within This Fundrise Review

This fundrise review shows the benefits of using a real estate application. Why not try out another site for real estate investors and see what you think.

Investor requirements: None. Given you are a U.S. Citizen and over 18.

Investment minimums

1. Starter Portfolio $10 minimum

2. Basic Plan $1,000 minimum

3. Core Plan $5,000 minimum

4. Advanced Account $10,000 minimum

5. Premium Account $100,000 minimum

Redemption – There are no early redemption fees for starter and basic accounts

Fees Asset management fee 0.85% / Investment advisory fee of 0.15% / Potentially other fees in certain circumstances

Do they support customers? Email and phone support exists between 9am to 5pm Monday to Friday EST. If you are a premium member, you will get further access.

Fundrise PROS

It wouldn’t be a good review of fundrise without giving the pros and cons. So first, the pros. There is a low minimum amount that has to be invested, this allows a wider population the opportunity to invest in property.

The design of the website is impressively easy to use. This is an important factor for novice investors in particular.

Fundrise is best suited for investors with a longer term approach to investment

Learn outside of Real Estate with EA Builder Auto Trading Application

Fundrise CONS

You should be aware that Fundrise has yet to be faced with a real-estate driven downturn. If there were a housing crash, it would cause Fundrise to postpone redemptions for some investors. As I said, nobody really knows how this would play out so you should factor this uncertainty into your decision to invest.

The investment requires due diligence as it is a complex investment.

Fundrise is not a liquid investment. The investment is locked in for a certain amount of time. It can be slightly difficult to extract oneself before five years.

Fundrise fees, while not expensive, are higher than you would pay for some other kinds of funds.

Disclaimer: I receive affiliate compensation for some of the links in this post at NO cost to you. However, these are the best tools I have used and tested that I believe are most effective for launching and running an online business. You can read our full affiliate disclosure in our privacy policy. Also, I am not a licensed advisor, any information within this article is purely my opinion and not an endorsement of an investing strategy.

Final Thought

As a concept in this review, Fundrise is a kind of kick starter that will encourage people to invest and while not performing exceptionally, it offers a decent return. This may serve to launch further real estate investments. The easy to navigate interface makes the platform easy to navigate, even for the beginner. For those who have an existing stocks and bonds portfolio, Fundrise is an excellent introduction to property as long as the investor understands that it is not a short-term investment.

Bonus Strategy

There are many investing apps out there in the market. The focus on this article was to a better understanding of just one. If you haven’t had a chance to read others, my review on Acorns and Betterment have a similar tone. Please make sure you go back and read those. Personally, I enjoy my Acorns app and have had it for quite some time. Acorns does not invest in physical real estate which is a benefit of this program. If you are interested in another investing app other than the two above, please check out my review on Stash or Robinhood. It might be a better option for you. There is nothing that says you cannot have multiple investment accounts. I would encourage doing your own review of Fundrise and others. One of the best things to look for in any investing apps is the cost and the options to invest.

Before you go…

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

When we make more money, we can utilize those funds to invest more.

-Cameron

Stash Review: Investing App For Everyone?

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Investing apps are all the rage right now, but which one is best, how do they work? In this Stash App review we cover all the basics that you need to know before starting to invest. Stash offers a way for people to invest in stocks, funds and ETFs for as little as a dollar. Come check out our Stash review and see if it’s the right platform for you.

What is Stash? (Stash App Review)

In this Stash Review we go through pros and cons and how does it work.

The Stash platform works similarly to robo-advisors in a way that anyone who’s interested in investing can do so without having to go through a steep learning curve. We know how stock trading, investment and asset management isn’t a walk in the park, but Stash somehow manages to make it very easy and accessible.

During our review of Stash, we noticed that at its core, Stash has a slew of stock offerings you can invest in. What’s interesting is that you can invest in premium stocks without having to buy a whole share. For example, you can invest $10 in Apple shares through the use of fractional purchases. This unlocks and levels the whole playing field, since anyone can start investing in their favorite brands or the stock they prefer.

Stash is also an app you can download on your smartphone. You’ll be able to look at your investments and complete actions even when you’re at the office or on a vacation.

How Does the Stash App Work?

When we review Stash, it’s important discuss how it works. Stash gives you granular control over which stock, fund or ETF you want. The first step is to download the Stash app, sign up for an account and answer a few questions. The app will determine your financial and investment goal and suggest several stocks and portfolios that could be in your alley.

Then, you can link a credit or debit card or a bank account to get investing. From there, you can pick from more than 3,800 stocks and 200 ETFs, which are organized in helpful categories such as sector, risk level and companies, among others.

Dig a bit deeper and you’ll find several account offerings, such as IRA accounts, custodial, banking and of course, the investment accounts.

It’s worthy to note that Stash has a subscription model, and the higher you pay the more features and benefits you can unlock.

Stash Pros (Stash App Review)

Investing Made Accessible and Affordable

This Stash App Review shows how it can work for nearly anyone.

One of the main goals of Stash was to make stock investment accessible to the general public. Before, you had to have knowledge of how to trade in the stock market and hire a broker. Thanks to robo-advisors and micro-investment platforms such as Stash, anyone can join in and for as little as a few dollars invest in their favorite stocks.

Education as You Go Along

Investing in stocks and ETFs require at least a surface knowledge of the things you’re putting your money in. Stash has a wealth of helpful guides and resources in its app that lets you do exactly that, and without making you sleep along the way.

Basic principles are covered right from the start, and the app manages to squeeze in important information so you can learn more about the industry. The content is simple and easy to understand and does a great job of educating the consumer.

Safe and Secure

The Stash app is 6 years old and has more than 5 million clients and users across the world. It’s a registered investment adviser and FDIC-insured bank options. You can be sure your money is in safe hands when you put it in Stash.

Caters to Both Beginners and Veterans

Stash is easy enough for beginners to start investing, and has enough depth and features to make it a staple for veteran investors. The in-app calculator is a nice touch as it lets you tinker with your potential returns when you decide to add X money, for example.

Stash Cons (Stash App Review)

There’s a Monthly Fee

In this Stash review, we can’t just talk about the positives, we have to bring up the other side of the coin. Stash is not free, and when you sign up you’ll be required to choose a subscription plan.

The lowest monthly fee is $1, which gives you access to a personal brokerage account, banking services and the Stash debit card. The highest is $9 a month, which unlocks a monthly insight report, two custodial accounts, a retirement account and more.

Not a Traditional Robo-Advisor

Stash isn’t an automated trading app where you plunk down money and let it do its thing. You’ll have to decide which funds, stocks or ETFs to invest in, and how much money you want to put in per stock or ETF.

Bonus Strategy

Before you go…

Utilizing these apps and trading stock options can be a very successful way to generate cash flow. The wealthy have seven streams of income from all four asset classes. One of the asset classes that I encourage everyone to start is their own business. For more on the asset classes, check out my other posts on Stock Market Investing. So, if you really want to find that financial freedom, you need to create a personal business that can become turn key to not only fund some of your real estate deals, but a business that makes money while you sleep. That is true financial freedom.

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

When we make more money, we can utilize those funds to invest more.

-Cameron

Options Trading Strategy For Risk Management

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Once you understand the basics of how options work, the next stage is to understand each key options trading strategy. That will be the focus of our attention in this article. If you haven’t read the ‘Options for Beginners‘ article, please go back and red that one first. Every options strategy will address both “calls” and “puts” or both simultaneously.

Where an options trading strategy concentrates on just one of these elements, they are called “one-legged.” One-legged strategies are simpler to understand, but they are still not risk-free.

The Long Call Options Trading Strategy

What is the long call?

In this options trading strategy, an investor has a belief that the stock will rise in value. A long call means that the investor has the right to buy the stock at the strike price in the future. The strike price will be around the current price.

The long call explained

Say, for example, the current price of a stock is $100 a share and you buy a long call because you think the price will rise. The cost of the premium is $3 a share. It turns out you are right, and the shares are worth $150. So you use your option to buy at $100 and then sell them straightaway at $150 and make a tidy profit of $47 a share.

The Long Put Options Trading Strategy

What is the Long Put?

Buying a long put is done because it is expected that the stock will go down in value. The word “long” does not refer to the length of time before expiration. It refers to the trader’s plan to sell it at a higher price later on. In this options trading strategy, the more the stock goes down in value, the more profit the trader is likely to make.

The long put options trading strategy is a great tool if the market is trending downward.

The Long Put Explained as a Trading Strategy

An example, the current price of a stock is $100 a share and you buy a long call because you think the price will rise. The cost of the premium is $3 a share. It turns out you are right, and the shares are now only worth $50. So, you use your option to buy at $50 and then sell them straightaway at $100 and make a cool profit of $47 a share.

The Married Put Options Trading Strategy

What is a Married Put?

A married put is where an investor who holds a long position in stock buys a put option for the same price on the same stock in order to protect themselves against a reduction in the stock’s value. It is very similar to a covered call (see below).

The Married Put Explained as a Trading Strategy

The plus side of this type of strategy is that in the worst scenario, the investor can make a small loss but still make some gains from any increase in price. Plus, the put side is a protective hedge if you own the underlying security. The put gives you an option to sell the stock at a certain price no matter where the market is trading. The downside is that the premium for the put option is likely to be substantial.

The Covered Call Options Trading Strategy

What is a covered call?

In a covered call, the investor selling owns the same amount of the individual security. The investor has a long position in stock The investor then sells some call options for the same stock to create an income.

The investor’s “long position” is the cover, simply because the investor is in a position to hand over the shares if the buyer of the call option chooses to take up their option.

The covered call explained

The investor is only expecting a small increase or decrease in the value of the stock. This method allows them to generate an income from premiums during the lull in the movement of that stock. The maximum profit will be restricted to the set strike price of the short call, minus the purchase price of the actual stock, plus any premium s obtained. On the other hand, the maximum loss is the same as the purchase price of the actual stock minus the premium received.

FAQ

What is a long position?

This is where the investor has purchased stock, or has a buy option on the asset, with the expectation that the stock will increase in value.

What is a short position?

A short position occurs when a trader sells a security while planning to repurchase it or covering it later at a lower price. The trader would do this if they believed the price of the stock was going to go down in the near future. If the trader sells the stock without actually having it, this is called a naked short (and illegal in the USA).

Bonus Strategy

There are many options trading strategies that are out there in the market. The focus on this article was to a better understanding of some basic strategies. If you haven’t had a chance to read my options for beginners post, please make sure you go back and read that one as well if anything in here seemed too advanced. Personally, I like trading options for income with some advanced strategies known as spreads. I can go into more detail on those in another article, but typically I like trading options from ETFs. Many ETFs have weekly options that you can buy and sell for only a week. It limits the time risk of your position and can even work as an investment hedge.

Asset Classes

Once again, this is only one aspect of the asset quadrant. Trading stock options can be a very successful way to generate cash flow. The wealthy have seven streams of income from all four asset classes. One of the asset classes that I encourage everyone to start is their own business. For more on the asset classes, check out my other posts on Stock Market Investing. So, if you really want to find that financial freedom, you need to create a business that can become turn key to not only fund some of your real estate deals, but a business that makes money while you sleep. That is true financial freedom.

The program below offers a coach mentor on day one. In addition, it walks you learn the process to get started in an online business. There is no inventory, this isn’t e-commerce or drop shipping, this is digital marketing. It will also teach you how to build digital real estate along with your stock portfolio or really any investment portfolio

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

When we make more money, we can utilize those funds to invest more.

-Cameron

Trading Stock Options Beginners Guide

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Trading Stock Options is a practice that allows knowledgeable investors to leverage assets. Many people are aware of the maxim, “buy low and sell high” but with stock options, it is possible to make a profit whichever direction the market is heading. Stock Options can be a great way to manage risk as well

What Are Stock Options?

Trading Stock options lets you profit in any market.

Stock options can be defined as contracts that empower the buyer, known as the option holder, the right to buy or sell shares of an individual company at a specific price within an agreed time (on or prior to the expiration date). There are different types of options for buying and selling.

Calls Explained When Trading Stock Options

Trading stock options requires an expectation that the underlying stock may go up or down. If you believe that the value of a stock is going to increase, you have two options. You can buy the stock outright, or you can buy a call option which gives you the right to buy the stock at a specified price (the strike price) before the expiration date.

Puts Options Explained When Trading Stock Options

If you believe that the value of a stock is going to decrease, you have two options. You can sell the stock outright, or you can buy a put option which gives you the rauthority to sell the stock at a specified price (the strike price) before the expiration date.

How To Buy Stock Options?

You first need to decide on the stock that you want to work with. You then do your research in which you establish whether you think that stock is going to rise or fall in value. Next, you will take a look at the current option quotes. These quotes list the strike prices, premiums, and termination dates in various combinations.

Trading stock options can be very easy but you need to make sure you have a good broker that can explain the pros and cons of this strategy.

All option contracts will have an element of risk. When selecting options there are four things that you must keep in mind:

1. How much risk can you tolerate?

2. What is your preferred trading time frame (day trading or long-term trading)?

3. How volatile is each potential asset?

4. What are the past returns on contracts?

When there is a high volatility of option contracts, there is both a higher risk and a higher reward. Both call and put options can be extremely profitable if you fully understand market sentiments and where the big players in the market are positioned.

What Do Stock Options Represent?

So, to recap, options are a derivative-based financial instrument related to the values of stocks. Call options permit the holder to buy the asset within the specified time frame, at a stated price. Put options permit the holder to offer the asset at a stated price within the agreed timeframe.

Stock options may be purchased on the open market, but most commonly are issued to employees of a corporation (Employee stock options, or ESOs).

Employee Stock Options – ESOs

Employee Stock options are often thought of as a perk that is associated with start-up companies. These are not typically trading stock options, they are granted by the company. These new companies may issue them to reward the early employees when and if the company were to go public. They are also a useful tool to encourage staff to remain in the company’s employ since they are canceled if the employee leaves the company

FAQ

What does “in the money” mean?

When we say a call stock option is “in the money”, we mean that the strike price is less than the stock price. With a put stock option, the reverse is true.

What does “at the money” mean?

When either a call or put options have an equal value for both the stock price and strike price, then we say that the option is “at the money.”

What does “out of the money: mean?

When we say a call stock option is “out of the money”, we mean that the strike price is more than the stock price. With a put stock option, the reverse is true.

What is a premium?

This is the payment you need to pay to buy a trading stock options contract It is also the amount you will possibly make if you sell an options contract.

What are derivatives?

Derivate describes any financial product that obtains its value from how well another one performs. The value of an option is based on the performance of stock prices, so options are “derivatives.”

What are spreads?

When an options trader purchases and sells several contracts at a variety of strike prices, this would be described as a “spread.”

Bonus Strategy

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

When we make more money, we can utilize those funds to invest more.

-Cameron

Fractional Investing: All You Need To Know

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Fractional Investing has popped up quite a bit recently, but what is it really? Will I still get dividends? And can I vote on my shares? Why are there fractions in the first place?

Hi friends, in this article, we’ll share with you all you need to know about fractional investing to help you get started. We’ll cover what fractional investing is, the benefits of buying them, what brokers are offering them and as a bonus, there’s also a strategy that can dramatically reduce your stock-specific risk in one go with fractional investing that we’ll share later in the article. If you’d like to know keep reading.

What is Fractional Investing?

There are many similar terms to fractional investing- micro-investing, stock slices, partial investing; they all mean the same thing. And it’s been increasingly used because many companies that are like dominant leaders of their own industry and growing, like Tesla, Google, and Amazon, their shares are super expensive. So those three companies, one share each, so just three shares will set you back five thousand dollars. So instead of buying a whole share of a company, with fractional investing you can buy less than one share, so in dollar amounts, you can invest a hundred dollars, five dollars, or one dollar.

Fractional Investing can allow you to spend small amounts and get into big stocks.

Why Does Fractional Investing Exist?

So why do fractions of shares exist? It originally came because companies, listed companies, would do things like stock splits or mergers and acquisitions. It’s probably easier to explain via a stock split, so let’s say you hold 15 shares in some company, and this company announces they will do a three for two stock split. So every two shares you have will now become three. And in terms of mathematics, it’s just fifteen multiplied by three over two. So now instead of fifteen shares, after the stock split, you will now have 22.5 shares. So that half a share is now fractional share.

You don’t suddenly get richer with more shares, it’s just like slicing a cake into smaller slices.

So let’s talk about 5 benefits of fractional investing.

1. Invest Less Money With Fractional Investing

You no longer need a ton of money to get started investing. So imagine 10 different stocks from the more expensive, amazon at $3300 to let’s say NIO, which is around $60. If you want to buy one share of each of these ten stocks, you need more than seven thousand dollars, but with fractional investing, you could invest five dollars in each of these companies, so fifty dollars to get started in these ten companies, you get exposure on the upside and downside as well.

2. Fractional Dividends

The second thing is you still get dividends with fractional investing. So let’s say you invested ten dollars in a twenty-dollar stock, so instead of one share, you own half a share, and then this $20 stock pays out two dollars in dividends. Now because you only own half a share, you will receive half of that two dollars which is one dollar in dividends.

3. DRIPS

DRIPS work great with fractional investing: so dividend reinvestment plans. So let’s stick to the same example where you only invested ten dollars in a twenty-dollar stock and it paid out two dollars in dividends, where you receive a dollar. Now without fraction investing, you only received a dollar but that stock cost $20, so theoretically, you need to wait 20 years before you can actually reinvest to acquire new stock. However, with fractional investing, you can immediately use your dividend payment to acquire more of that shares and build a position that obviously entitles you to a bigger dividend payment if the company pays again because you own more shares.

4. Easy Diversification With Fractional Investing

The fourth great thing is now you can diversify with less money. With a hundred dollars, you can put ten dollars in ten companies. This allows for a more complex portfolio, which will increase the return on investment.

5. Great With Saving Plans

Now the last advantage is if you have a savings or investment plan, where you plan to save an amount of money, let’s say 100 or 200 each month, you can immediately put that money to action, you no longer have to wait before you can afford to buy a share but immediately use that and start investing.

What Brokers Offer Fractional Shares

While many brokers have just started to offer fractional shares, others only allow fractional investments as part of dividend reinvestment plans. What this means is you can only buy stocks that made the payout and no others. Make sure to get a broker that allows fractional investing wholly.

Some of the best brokers offering fractional shares are Robinhood, Charles Schwab, E-Trade, Vanguard, and TD Ameritrade.

What To Look For In A Broker

Let’s cover three things that you need to ask your broker before you actually pick and choose any one of them. The first thing is to ask them if they charge any commissions or fees for fractional investing because if they do, pick someone else.

The second thing is, ask what is the minimum buy-in. Some brokers say five dollars, some brokers say one dollar, some actually have no floor at all. There’s no actually recommended best practice here but it’s for you to be better informed.

The last thing is, ask your broker what is the range of shares and stocks that you’re allowed to do fractional investing. Some say it will be the top 50 stocks, which are largest obviously in the market, others say only an S&P 500, or some have a whatever range, so just be sure to ask before you actually choose and pick any particular broker.

Bonus Strategy

We mentioned early on in the article about a way where you can dramatically reduce a stock-specific risk with fractional investing. That is, that you can also fractionally invest in ETFs. For those who don’t know, ETF stands for exchange-traded funds. They are funds that are traded like stocks on the markets. For those who aren’t really comfortable or don’t have time in choosing stocks, a fraction of investing in ETFs could indeed be the strategy for you. With fractional investing in ETFs, you immediately gain two benefits. One is convenience in investing because you no longer need to manage your own portfolio. The fund actually does it for you. The second thing is you immediately gain diversification without constructing your own portfolio. The fund holds a basket of stocks and so by definition could be considered a diversified investment within that sector.

With fractional investing in ETFs, you can supercharge your diversification.

Before you go…

Once again, this is only one aspect of the asset quadrant. The wealthy have seven streams of income from all four asset classes. For more on the asset classes, check out my other posts on Stock Market Investing. So, if you really want to find that financial freedom, you need to create a business that can become turn key to not only fund some of your real estate deals, but a business that makes money while you sleep. That is true financial freedom.

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

When we make more money, we can utilize those funds to invest more.

-Cameron

Real Estate Investing Strategy For Success

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Finding the best real estate investing strategy can be oftentimes confusing to say the least. Plus, there are so many “gurus” out there that tell you one is so much better than the other. Personally, I think you should know the options for yourself first and do some additional research then take action on the strategy that works the best for you. In this article, I discuss the three main strategies for real estate investing success. Wholesaling, flipping and long term investing are the three strategies that are most common within real estate investing and they are all good strategies for different reasons. Let’s get started.

Real Estate Investing Strategy on Wholesaling

The first strategy I want to take a look at is called “Wholesaling.” This is a short-term real-estate investing strategy that can be used to earn substantial profits. Do not confuse real-estate wholesaling with retail wholesaling, the two concepts are completely different. Real Estate wholesaling does not involve more than one property. The wholesaler contracts to buy a home, and then markets the house to potential buyers and hopefully sells it at a higher price.

The aim is to sell the house onwards before the contract with the original seller closes. In this way, the wholesaler does not pass any money to the original seller until he has a buyer who will pay a higher price. The wholesaler’s profit is the difference between the original price and the new price offered by his buyer.

Wholesaling is a method that allows people who want to become involved in property investment to make money from a property without needing finance.

Wholesaling can be a very profitable real estate investing strategy. It can offer several quick wins without taking any ownership of the property.

Real Estate Investing Strategy on Flipping

Flipping is frequently featured on reality TV shows. In this real estate investing strategy, someone will search around for a property that needs work and consequently sells for a low price, typically at an auction. If successful in buying the house for a low enough price, they can renovate the house and resell it for a substantial profit. It is hard work, but a series of successful flips can generate a lot of profit that may later be used to buy property as an investment and rented out.

The key to being successful in flipping real estate is to buy at the right price. Getting carried away at an auction can result in buying a property that has little margin for profit. A disciplined approach to buying is essential. Put simply, house flippers aim to buy low and sell high, as quickly as possible.

In the second quarter of 2019, the average profit from flipping a house was $62,700. [ATTOM Data Solutions]. Many people begin house-flipping as a side income and after realizing the potential switch to it full time. Others are content to keep it as a spare time activity.

Personal landlord

A landlord and property manager can make life much easier for a real estate investor. I would suggest that if you are using the long term strategy they are paramount to success.

There is a difference between a Real-Estate investor and a landlord. A landlord has many tasks to take care of, everything comes down to them in the end. How competent you are at carrying out these tasks will reflect on the levels of your success. An investor will typically employ contractors, realtors, property management companies to do much of the time-consuming tasks (in exchange for money). A landlord instead chooses to do this work themselves and keep the money. It is all a perception of what time is worth v money.

When investing in properties to rent it is important to take the time to sit down and imagine what your business model is going to look like. Make clear policies on how everything will be achieved and stick to them. If you take on too much you can become the weak spot in the entire business and cause delays and disruption.

There is nothing wrong with choosing to be a landlord rather than just an investor, as long as you are sure you have the capability and time to carry out the required tasks. Becoming a landlord does mean that you will be unable to scale your business beyond the point that you can manage to handle yourself. As an investor, it is simply the finance that controls the growth of your business, but if you are handling the work that an investor would typically delegate to a realtor, contractor, and property manager, then there is a finite limit to your growth. If you are your own landlord, that particular type of real estate investing strategy is not scalable as you would be doing all the work and not typically something I would recommend.

Hiring a Property Manager

A property manager will typically take care of most of the aspects of managing your properties on a day-to-day basis. A property manager will …

1. Meet potential tenants and show them the property

2. Explain the lease and get it signed

3. Collect the rent

4. Inspect the property

5. Arrange for repairs

6. Handle contracts for maintenance, trash, etc

7. Settle complaints and issues between tenants

8. Prepare property budgets

That is a lot of work and employing a property manager will take those tasks from you and allow you to handle the investment and growth of the business. Yes, it is going to cost you to employ a property manager, but your time has value and you may find that you can generate more income with your time than the manager is costing you.

It may be you enjoy these day-to-day tasks, but was that why you became an investor in Real Estate?

My Final Take

The real estate investing strategy is a great way to build passive income and massive net worth. It does take time to learn and there are a lot of programs out there that don’t really help you learn. Do your due diligence and research on any educational program. I would, absolutely strongly encourage finding a mentor or an investing program. Do not take it on your own. Real estate investing can cause large amounts of personal debt or business debt that if not used effectively could cause some serious financial issues.

In my personal opinion to be truly successful in real estate investing, you may at one time use all three of these strategies. The wholesaling strategy can be for some quick profits or some really short term cash infusions. The flipping strategy usually offers more of a profit, but takes more time as you either need to fix it up yourself or hire contractors. The long term strategy is my personal favorite. This technique utilizes the skills and expertise of property manager company. Ultimately, you keep the rental income and it is generated every month, passively. You also get to participate in tax advantages and appreciation. In addition, learning this strategy can help you get started in multi-family investing, where you can have cash flow from multiple units at the same time.

Before you go…

The program below offers a coach mentor on day one. In addition, it walks you learn the process to get started in an online business. There is no inventory, this isn’t e-commerce or dropshipping, this is digital marketing. It will also teach you how to build digital real estate along with your physical real estate portfolio.

Partner up with me by clicking on this link and watching the video.

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

When we make more money we are able to invest more and buy more assets. These assets can create more cash flow which leads us to our end goal of financial freedom.

-Cameron

Multi-Family Real Estate Investing

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Real-Estate is a form of investment that will appeal to those who are concerned about the volatility of the stock market. As an investment, it also offers more opportunity to have active participation in the investment process, rather than investing in a stock market fund that is managed by someone else. No one strategy fits all situations and several investment strategies may be appropriate. One such strategy might be to participate in multi-family real estate investing.

A Multi-Family Investment property is a property in which there are multiple homes within one building, or complex. The size of these investments can vary. Multi-Family Real Estate Properties can become a very lucrative investment. Typically, they are classified as either small investments (that contain between two and four residential units), and large, which will have more than five family units. There is an interesting read on financial freedom through real estate investing and I would encourage you to check it out.

Advantages of Multi-Family Real Estate Investments

There are numerous advantages to multi-family real estate investments. Multiple ways to make money.

Higher ROI

This type of property is one of the better strategies for Real Estate investment and typically will earn a higher ROI (Return on Investment) than single occupancy properties. This is because there is more security with multiple tenants and the property will generally be better at producing a positive cash flow. The secret is to monitor occupancy and vacancy rates. Empty units produce no income and drag down the results for the whole property.

Vacancy Rates with Multi-family real estate investments

When renting out a single occupancy property it is very easy to move from a zero vacancy rate to a 100% vacancy rate. It is very unusual for the landlord of a property with multiple tenants to have 100% vacancies. Even with a couple of vacancies, the landlord will still be making some money. A far more secure situation.

In a market with high demand for property, this will result in higher occupancy rates, which will increase the ROI of the investment. This kind of market is a particularly advantageous one for investors in multi-family real estate investments.

Easier to Finance

Experience has shown that it is typically easier to obtain finance for multi-family real estate investing than for a single-family home, as the lender has expectations of a positive cash flow. Obtaining insurance for multiple residential properties is also cheaper than obtaining individual policies for each family unit within a property.

Most investors do no focus on multi-family real estate investments, most focus on single family homes without realizing that the value is so much higher than single family homes.

Less Competition when Buying Properties

Most investors tend to focus on the purchase of single-family homes. Consequently, when a property comes onto the market there may be several investors interested in the property. Far fewer people invest in multi-family real estate investments, and so an investor will have greater chances of successfully buying the property they are interested in. This also has an impact on the financing, since fewer competitors will be seeking finance, thus making the process simpler.

Disadvantages of Multi-Family Real Estate Investments

Multiple Tenants to Deal With (Multi-family real estate Investments)

Because you are investing in a property with multiple tenants there will be work involved. Instead of one tenant contacting you, there may be many. If you are attempting to manage the property yourself this could be quite intrusive.

Hiring Professional Property Management

Handling multiple tenants and dealing with rent collection and resolving problems may not suit everyone. In this scenario, many investors choose to employ professional property management professionals to take over this work. This, of course, comes at a cost and will cut into profits.

Fast Growing Portfolios

If an investor is seeking to grow a large portfolio quickly, purchasing investment properties that are multi-occupancy is much faster than buying single properties, one by one, all over a city. Many very successful investors have built substantial portfolios this way. However, as we said in the beginning, No one strategy fits all situations. And this route may not be one for investors of every temperament.

Conclusion

Investing in Multi-Family Real Estate has many advantages. Check out my post on multiple strategies for different investing ideas. It is slightly more complex than investing in a single occupancy property. There is less competition, it’s easier to find finance, cheaper to insure, and more secure. You should certainly get a higher ROI compared to a single occupancy investment. There could be more stress dealing with multiple tenants. But, that is only true unless you hire a professional property management company. They will take the day-to-day management of your investment property off your hands. As an investor’s empire grows, so eventually a property manager becomes even more essential.

The very interesting thing about multi-family real estate investing is that you don’t have to buy the 400 unit high rise first. You can invest in multi family units that are 2 to 4 doors. Duplexes and Triplexes are great ways to get started with this type of investing strategy and most of them do not cost more than a regular house. Maybe you live in one of the units and rent out the other three. That’s free mortgage!

Before you go…

Partner up with me by clicking on this link and watching the video.

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

Building a secondary source of income is great way to invest in ourselves and maybe even fund other investments.

-Cameron

Invest in Gold: Is Now The Time?

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Why do people invest in gold?

Traditionally, people have invested in gold when there are uncertain times. These could be when basic commodities rise, times of political and social unrest, or when people seek security for their investments. Gold has been seen as a protection from the effects of inflation. Gold also appears to be something “real.” A gold bar sitting in your safe, or a collection of gold coins have a physical presence unlike any kind of digital investment. This can be comforting when huge uncertainty is on the rise.

Invest in gold and you get a tangible commodity. This helps resist inflation of the Fiat currency that is the US dollar.

In today’s world, these reasons may not be as valid as they once were, and most financial advisors would recommend that the percentage share of your total portfolio, that is invested in gold, should not exceed 10% – 20%. Gold prices may well be as unpredictable as the stock market, and sometimes even more so. The traditional goal with the physical commodity was to beat any potential inflation of the dollar.

Since 2013 the price of one-kilogram gold bars has varied from $35,000 to $45,000 which is quite a difference. A gold bar is much more convenient than gold coins and easier to track the value. However, they are harder to sell than coins and you have to sell the whole bar at once, you cannot sell a small part of your investment like you can with coins. If you do buy coins, buy ones that are commonly circulated and have a known value rather than rarer ones.

Ways of investing in gold

Most Gold dealers will not accept card payments and you should use cash, electronic transfer, or arrange a cashier’s check to make your purchases.

You may mistakenly believe that investing in gold necessarily involves purchasing a physical piece of gold. In reality, you may just receive a certificate or other document. There are three primary ways of buying gold

You can invest in gold in three main ways, traditionally it has been a hedge against inflation.

1. Buying an ETF (Exchange-Traded Fund)

2. Investing in a mining company

3. Buying a physical piece of gold

ETF

The ETF is very much like any individual stock and is traded at the exchange in the same way. The fund holds contracts that are backed by gold, so technically, when you buy ETFs you do not own any gold, but your investment is backed by gold. This is a way to get exposure to the gold market but still subject to stock market potential fluctuations. You could use this ETF as a diversification measure against the inflation of the dollar.

Investing in a Mining Company

Gold Mining stocks are a way that you can invest in a mining company. This means that your investment strategy is based on the success of that particular mining company. This can be a risky investment.

Buying Actual Gold

You may choose to buy physical gold. This might be in the form of buying Gold Bars, Gold Coins, or even jewelry. Buying gold bars is a big investment and if you later choose to liquidate your gold assets they can be harder to sell. Gold coins are easier to manage as you can sell some coins and retain others. Gold Jewelry, a traditional investment, is inefficient as you pay for the jewelry to be made and you pay more than the actual gold is worth.

Bear in mind that once you buy actual gold you will need to store it safely, to protect it from theft. The optimum storage is to use a bank-safe deposit box. Keeping gold in your house is likely to result in a higher home insurance premium.

Tips for investing in gold

Beware, there are a great many scams online that purport to be selling gold. Do not purchase gold from unreliable websites, choose a reputable dealer.

Do not regard investment in gold as a method of investing short-term, gold can go up and down in value and you may need to wait before you can sell it at a profit.

One investment strategy is to buy a small amount of gold coin each month, no matter what the price, this will assist in helping you ride out the rises and falls in the market.

Bottom Line

Many of the reasons that people traditionally invested in gold are no longer as true as they once were. Research has shown that Treasury Inflation-Protected Securities (TIPS) do a much more efficient job of protecting from inflation.

If trying to protect yourself from troubled times, Gold may well rise in value during a crisis, but typically shrinks in value once the problems have passed, sometimes to less than you may have purchased the gold for. Often gold investors end up holding gold for much longer than they originally planned while waiting for the next price rise.

Whatever you plan to do regarding gold, it is most certainly prudent to limit your investment to less than 20%, probably nearer 10% of your portfolio.

My Final Take

Investing in gold can be very expensive. Historically, it has been considered a hedge. However if you invested in gold in January of 1980, the equivalent price, adjusted for inflation was over $2500 per ounce. Now gold is just over $1800 per ounce. In this scenario, had you bought gold in January of 1980, you would still be in a negative return. In a general sense, buying gold can be a hedge. It is also one of the asset classes. Investing in gold is part of the commodity asset class. Along with investing in other precious metals. Please review my article on investing in silver for another option in the precious metal investing category. Investing in Silver could be another hedge against inflation.

Before you go…

In order to build true financial freedom and wealth that will last for generations, you need to have at least five streams of income across the asset classes. I talk a lot about investing in the stock market in other posts, but it’s important to have a business of your own. This can start with a side hustle, working about 30 minutes per day or 10 to 12 hours per day. You can decide. But, if you want to learn how to start a business and scale it to achieve your dreams and goals in as little as 30 minutes per day, I can help you. It requires help and education to make good money.

Partner up with me by clicking on this link and watching the video.

We show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get mentoring and coaching day one to make sure you are doing things right.

A great way to be able to save more money is when we make more money.

-Cameron

Invest in Silver: Hedge For Your Future

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Why would you invest in Silver?

Silver so often hides in the shadow of Gold as an investment vehicle. There are reasons why some people prefer to invest in Silver, but for many people, those reasons are overshadowed by disadvantages.

With any paper or digital assets, there is always the chance that someone can default and you could lose what you thought of as assets. With Gold and Silver in your possession, you need not worry about that possibility. Your Assets are sitting in your safe or bank safety deposit box. Just like with Gold, Silver is seen as a safe place to put your money during times of unrest or financial crisis. Silver is also used in industry, so there is a constant demand for the metal.

You will be surprised to know that only 11% of Silver holdings are for investment purposes. A further 33% is used for jewelry manufacture, but over 50% of silver is used for industrial uses. The benefit this brings is that in an economy that is on the up, there will be an increasing demand for Silver, which boosts the price. Much of this industrial use for silver is in high-tech industries, which are going to be increasingly in demand, such as, Solar Power, Battery Power, electronics, and smartphones.

Just like Gold, the price of Silver can be volatile, and in recent bull-markets in precious metals, the performance of Silver was significantly better than that of Gold.

You can invest in silver for future appreciation or buy and sell like trading.

Ways of investing in Silver

With Silver, there are four main methods of investment. The first is to buy the metal itself by going to a bullion dealer/coin dealer. When buying Silver this way, VAT is payable in the UK, but in the USA there is no GST. The only tax you may have to pay is a State Sales Tax (in some states). Be careful with this since there are many scam artists out there. A book I recommend to get started is ‘Guide To Investing in Gold & Silver: Protect Your Financial Future‘.

The second method is to visit auction houses and bid on silver items that have no reserve. You can often pick up these items at less than the value of the silver they contain. Occasionally you can find real bargains and purchase the Silver at a vastly reduced cost.

The third method is to invest in Silver Futures and options. These contracts allow you to gamble on the price movement of Silver over a set period. Note the word, Gamble, as this can produce losses as well as profits, should your prediction prove wrong. Investing in commodities can be tricky, I would start with some basic education in this. I recommend ‘Commodities: 50 Things You Really Need to Know‘ before you invest in silver or other commodities.

The Fourth method is to invest in Silver ETFs (Exchange Traded Funds). A Silver ETF will track the price of Silver. In terms of ease of liquidity and avoiding the logistical difficulties of storing bullion, ETFs are regarded as the optimum way of investing in Silver.

Should You Invest in Silver?

Investing in Silver is to invest in a volatile commodity. If your portfolio is heavily reliant on Silver, there may be difficulties in that the value of your entire portfolio could be influenced. Silver, like Gold, has its place in a portfolio, but you should not allow the value to rise above 10% to 20% of your total investment.

Pros & Cons

Pros

1. In some situations, Silver can offer some degree of protection from market disturbances

2. Silver can be affected by the market but will never completely crash

3. It’s cheaper and more versatile than Gold

Cons

1. It may not be as liquid as you would like if you need cash fast

2. Risk of burglary and higher insurance premiums if bullion held

3. Does not match Real Estate in terms of return on investment

Bottom Line & My Final Take

Whether you should invest in Silver depends on your appetite for risk. It can be more volatile than Gold, so if you prefer to avoid risk, stick to Gold. However, Silver is like money in your pocket, you are not relying on someone honoring a promise they have made. It is real, it is tangible.

Silver is portable and private, you can move to another country and take it with you. You cannot lose it to hackers. Silver is just 1/65^th the price of Gold and offers all the same benefits.

Industrial use is growing and so there will be an underlying increase in value. Silver has many reasons why it should make up a small part of your portfolio.

Investing in silver or other commodities can be a very lucrative investment.

All in all, investing in silver and other precious metals can be used in your portfolio as risk protection against the other three asset classes. If you invest in commodities (i.e. Silver, Gold, natural resources) you have a different market and different risk exposure than you have in paper assets and real estate. Ultimately, I would strongly encourage investing in all the assets classes.

Paper assets and commodities have a relatively small barrier to entry, furthermore real estate can be easy to get into with the right mentor and education, but by far the best for tax advantages and unlimited growth is having your own business. If you have started your own business you can do this and work on it for only 30 to 60 minutes per day. True financial freedom comes from being in business for yourself. Please review the steps below to learn how to start your own business and build it in as little as 30 minutes per day. Cheers to your success and happy trading!

Before you go…

If you want to learn how to start a business and scale it to achieve your dreams and goals in as little as 30 minutes per day, you can. It requires help and education to make good money. The program below offers a coach mentor on day one. In addition, it walks you through the process to get started in an online business. There is no inventory, this isn’t e-commerce or dropshipping, this is digital marketing.

Partner up with me by clicking on this link and watching the video.

We will show you EXACTLY how to build a business online and customize a plan just for you. We will help you choose a niche, setup your online business and help with selecting offers that you can promote.

On top of that you will get ONE on ONE mentoring to make sure you are doing things right.

A great way to be able to save more money is when we make more money.

-Cameron