Archive for July, 2008

by Christina Goldman
Silver bullion rounds are simply another name for silver coins. The term round came about because the silver was shaped into coins and thus was able to be stacked into rolls. This made it convenient for the coins to be handled and shipped. You’ll often see them referred to as silver art rounds because they can be purchased inscribed with a variety of designs ranging from commemorative, religious, military, cars, holidays, weapons, animals, presidents, and even Elvis!

Specifications:

You can buy silver rounds in sizes ranging from one ounce to over one hundred ounces. The one ounce variety is the most popular.
Each silver round coin contains one full ounce of pure silver.
It has a purity of .999 fine silver.
It is not government-backed and has no legal tender status.

Varieties:

Silver bullion rounds are available in both name-brand and generic.

Name-brand silver rounds include the one-ounce private mint produced A-Mark Precious Metals, Wall Street Mint and Sunshine Minting. These silver rounds will display the name or hallmark of the mint that manufactured them.

Generic silver rounds are produced by a variety of small, little-known firms as well as those produced over the years by companies that may or may not still be in business. They typically have a smaller markup than the name-brand silver rounds.

Most Valuable:

Engelhard Silver Prospectors is the one ounce silver round that is most sought after by collectors. It was minted by Engelhard but has not been produced since 1988. This silver round is difficult to obtain and occasionally can be purchased on the secondary market.

Reasons to Buy:

Silver rounds are readily available.
They typically sell for a lower premium than government-backed silver bullion coins.
The value of the rounds is directly correlated to the current price of silver.
Their small size makes them perfect coins for bartering.

Conclusion:

Silver bullion rounds are affordable, easy to store, count, buy and sell. They are an excellent way for the small investor or collector to invest directly in pure silver bullion.

And now: you can easily find great deals on pure silver bullion rounds at: http://bullionbargains.com

Article Source: Investing In Silver Bullion - Should You Buy Silver Bullion Rounds?

by Darren Norris
Planning for retirement is a very important aspect of life. No one wants to work forever. Annuities are a great way to save money and build a nest egg for the “golden years”. An annuity is not tied to your income level and is an easy way to make some extra money for your future.

Being successful with most retirement savings plans requires a specific contribution and amount of time involved. Buying an annuity gives you the freedom to decide how much to invest and gives you a contract with the company that gives a specific percentage of the company’s income that you will receive.

There are a number of different options available with annuities, both in the length of time involved and what type of payout you would like to receive. There is flexibility to stop receiving payments and to restart payments as suits your needs. This makes it much easier to use the money when you need it the most and also allows you to defer paying the income tax until a specified date on which the annuity payments start per the contract. Annuities can also be named to more than one person so that, in the event of death of one of the listed beneficiaries, the other can still receive payments without difficulty.

The key to being successful with an annuity is to choose the right time and plan to invest in the annuity. There could be penalty fees if your calculations are done incorrectly. Regular tax rates are charged based on the percentage earned from the investment and could result in a loss on the investment if you withdraw the funds or give up the contract. Once an amount is determined and set in the contract, this amount cannot be altered at any time. There are also sometimes out of pocket costs associated with annuities. It is absolutely crucial to do your homework and make sure that you shop around and find the best annuity plan available for your situation in the current market before you invest any money.

Darren Norris has done his MBA from Cambridge University and is currently writing for BuySellAnnuity.com as a finance specialist. To buy annuities check please http://buysellannuity.com/

Article Source: The Benefits of Buying Annuities

by Tracy Ryniec
ConocoPhillips (COP), a large integrated oil company with operations in 40 countries, is operating on all cylinders as it beat analysts’ estimates for the second quarter despite escalating consensus estimates over the last 30 days.
The company operates four segments: Exploration and Production; Refining and Marketing; Natural Gas Gathering and Processing and Chemicals and Plastics.

In the Exploration and Production segment, COP has operations in 23 countries and production in 16 countries.

ConocoPhillips is the second-largest refiner in the United States and the fifth-largest, that isn’t government controlled, in the world. The company has 12 refineries in the United States, 6 in Europe and 1 in Asia.

COP is also a big natural gas processor, with 63 natural gas processing plants and 58,000 miles of gathering lines.

In the Chemicals and Plastics segment, ConocoPhillips has a 50% interest in Chevron Phillips Chemical Company which operates 6 research and technology centers and has 36 production facilities in 7 countries.

ConocoPhillips Beats Wall Street Estimates for the Second Quarter

On July 23, ConocoPhillips reported second quarter estimates, and despite analysts raising estimates throughout the quarter, still beat consensus estimates by 3 cents per share. Net income was $5,439 million, or $3.50 a share, compared to $301 million, or 18 cents a share, in the second quarter 2007. Analysts expected $3.47 per share.

2007 was impacted by an impairment associated with the Venezuela operations worth $4,813 million. Adjusted for the Venezuela impairment, second-quarter 2007’s earnings were $4,813 million, or $2.90 per share.

Revenues jumped 51% to $71.4 billion compared to $47.4 billion a year ago.

As expected given high crude and natural gas prices, the Exploration and Production segment saw net income soar to $3,999 million from $2,108 million in the second quarter of 2007, adjusted for the Venezuela impairment.

Refining and marketing saw a decrease in net income due to the tight refining margins. Net income was $664 million in the second quarter down from $2,358 million in the second quarter of 2007. Net income was higher than the first quarter, however, due to higher worldwide realized refining margins and improved refining operations in the Gulf Coast and the United Kingdom compared to the first quarter.

COP Continues With Share Repurchase Program

The company anticipates repurchasing an additional $2 to $3 billion shares in the third quarter as part of the previously announced $10 billion share repurchase plan for 2008.

ConocoPhillips is a Zacks #1 Rank (Strong Buy). It has beat estimates 3 out of the last 4 quarters on average of 4.09%. Analysts estimate year-over-year earnings growth of 35.18%. COP has a forward P/E of only 5.74.

(The author of this article owns shares of ConocoPhillips.)

Tracey Ryniec is an Editor at Zacks Investment Research. To learn more visit http://www.zacks.com/commentary/8145/ConocoPhillips+814500

Article Source: Timely Buy of the Week July 24, 2008

by Charles Rotblut
Earnings season rotates away from the financial sector, which should be good for the broader markets.
More than 630 companies are confirmed to report, including 151 members of the S&P 500. Dow components will include 3M (MMM), AT&T (T), Bank of America (BAC), Boeing (BA), Caterpillar (CAT), E.I. DuPont (DD), McDonald’s (MCD), Merck (MRK) and Pfizer (PFE).

The economic calendar is fairly light. Key reports will include:

Monday: June Leading Indicators
Wednesday: Federal Reserve Beige Book, weekly crude inventories
Thursday: June existing home sales, weekly initial jobless claims
Friday: June durable goods orders, June new home sales, revised July University of Michigan consumer confidence survey
The Federal Reserve’s web site is not listing any scheduled speeches for Fed officials.
Active traders may want to pay particular attention to the Nasdaq. Approximately one-quarter of the reports will come from the tech sector. Among the more notable names are Apple (AAPL), Juniper (JNPR) and Qualcomm (QCOM).

Bullish guidance will help to restore confidence in earnings projections and allow the overall stock market to rebound higher.

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Companies That Could Issue Positive Earnings Surprises during the Week of July 21 - 25

AK Steel (AKS) continues to be able to exert pricing power thanks to strong demand for carbon steel. Brokerage analysts think the price hikes will contribute to the bottom line, as is evidenced by the rise in the consensus earnings estimate. Forecasts for the second-quarter have risen 2 cents over the past 30 days to $1.14 per share. AKS has topped projections for 5 consecutive quarters. AK Steel is scheduled to report on Tuesday, July 22, before the start of trading.

Several brokerage analysts have raised their second-quarter quarter profit projections on EnCana (ECA) within the past few weeks. The consensus earnings estimate of $1.83 per share is 16 cents above the average forecast of a month ago. The most accurate forecast is even more bullish at $1.88 per share. This Canadian oil sands company has topped expectations for 5 consecutive quarters. EnCana is scheduled to report on Thursday, July 24, before the start of trading.

Second-quarter forecasts on McDonald’s (MCD) have risen in the past few days. Three brokerage analysts revised their projections within the past 7 days, pushing the consensus earnings estimate a penny higher to 85 cents per share. The most accurate estimate is more bullish at 86 cents per share. MCD has beat expectations for four consecutive quarters. McDonald’s is scheduled to report on Wednesday, July 23, before the start of trading.

Potash Corporation of Saskatchewan (POT) topped forecasts during the past 2 quarters by an average margin of 20 cents per share. Ahead of the company’s second-quarter report, analysts are anticipating another positive surprise from this fertilizer company. The consensus earnings estimate has been revised higher by 7 cents over the past 30 days to $2.54 per share. The most accurate forecast is more bullish at $2.60 per share. Potash is scheduled to report on Thursday, July 24, before the start of trading.

Companies That Could Issue Negative Earnings Surprises during the Week of July 21 - 25

UnitedHealth Group (UNH) recently slashed its full-year guidance, citing pressure on premiums and a decrease in margins related to Medicare Part D. All of the covering brokerage analysts slashed their forecasts in response, causing the second-quarter consensus earnings estimate to fall by 18 cents to 64 cents per share. UNH has missed expectations for 2 consecutive quarters. UnitedHealth Group is scheduled to report on Tuesday, July 22, before the start of trading.

Charles Rotblut is the Vice President of Web Content for Zacks Investment Research and the Senior Market Analyst for Zacks.com. He oversees the editorial staff, manages the market-beating Focus List, Timely Buys and Top 10 portfolios, and plays an instrumental role in the development of new products. For more information please visit http://www.zacks.com/commentary/8104/Earnings+Preview+for+July+21+-+25+810400

Article Source: Earnings Preview for July 21 - 25

by Tracy Ryniec
On July 17 in Washington, D.C., former Vice-President Al Gore gave a speech urging Americans to create a plan to shift America’s energy focus away from fossil fuels to other forms of energy, such as solar, wind and geothermal. He called for America to free itself completely from fossil fuels within 10 years.
In order to implement such a plan, it would mean much more investment in solar and wind technologies and major structural changes such as every American driving an electric car.

Without getting into the pros and cons of such a plan, or whether or not it is feasible in a 10-year period, as an investor, another question looms.

What if Al Gore’s Plan Comes True?

Clearly, investing in fossil fuel energy companies will no longer be the lucrative play it has been for the past 100 years. Other technologies will replace that source of energy.

Even before Mr. Gore laid out his goal, alternative energy companies were busy creating new energy sources.

Wind Power

A-Power Energy Generation Systems, Ltd. (APWR), headquartered in China, is the largest provider of distributed power generation systems, including wind systems, in China.

On July 14, the company entered into an agreement with the Bayan Nur city government in the western Inner Mongolia Autonomous Region to build a 290,000 square foot wind turbine production facility to produce 800MW of wind turbines a year.

A-Power, a Zack’s #1 Rank (Strong Buy), is already making money. In 2007, the company had earnings per share of $1.78 per share. Analysts estimate $1.15 for 2008 and $1.47 in 2009.

Learn more about A-Power in the Zacks Equity Research July 14, 2008 Snapshot.

Geothermal Power

Ormat Technologies Inc. (ORA) is the third largest geothermal power producer in the United States and has over a 10% share of the installed geothermal power capacity worldwide.

In the United States, Ormat runs 7 geothermal power plants and has additional plants in Guatemala, Kenya, and Nicaragua.

Ormat is also a Zacks #1 Rank (Strong Buy), and it too is profitable. The company made 65 cents a share in 2007. Analysts see strong future growth, calling for 2008 earnings growth of 74% to $1.13 per share and, in 2009, forecast a further 58% gain to $1.78 per share. The company currently has a forward P/E of 45.13.

Learn more about Ormat in the Zacks Equity Research July 14, 2008 Snapshot.

Solar Power

The solar “story” is no longer a secret. Investors have been pouring into the sector for the last several years.

Canadian Solar Inc. (CSIQ) is one of the many solar companies now competing in the industry. CSQI manufactures photovaoltaic cells, modules and custom-designed solar power applications for solar power generation systems. The company has three manufacturing facilities in China.

Zacks Research recently rated Canadian Solar a “Buy” in a July 15, 2008 analyst report:

“CSIQ’s recent bullishness has been boosted due to improving company fundamentals and a steep rise in the price of oil,” said Jon Kolb, Zacks Equity Analyst.

“Going forward, on the back of solar panel sales growth in various global markets, extension of product lines, material cost savings through the company’s more vertically-integrated production structure, higher captive generation of solar cells, long term supply agreements and a silicon reclamation program should, collectively, generate significant earnings growth,” he said.

Canadian Solar is a Zack’s #1 Rank (Strong Buy.) Analysts estimate 2008 earnings at $1.95 per share and project 58% year-over-year growth in 2009 to $3.09 per share. The company has a forward P/E of 16.2.

What if Al Gore’s Plan is Wrong?

Even if a bold alternative fuel energy plan isn’t enacted, these three companies, and others in the sector, show that investment and growth is already apparent in the renewable and alternative energy industry. These companies are making money and demand for alternative energy technologies should only increase in the future.

Tracey Ryniec is an Editor at Zacks Investment Research. To learn more visit http://www.zacks.com/commentary/8122/What+if+Al+Gore%26%2339%3Bs+Plan+Comes+True%3F+812200

Article Source: What if Al Gore’s Plan Comes True?

by Tracy Ryniec
Crude Prices Fall off of Record Highs
Hurricane Dolly, churning in the Gulf of Mexico and expected to hit along the coast of northern Mexico and Southern Texas in the next few days, wasn’t enough to scare crude prices higher this week as a majority of the oil installations are outside of Dolly’s impact zone.

Crude oil hit a record high of $147 a barrel in early July only to pull back to under $125 in the last several days. This week a year ago, crude was at $71 a barrel.

Natural gas prices have fallen even more sharply than crude, down over 30% from the highs of early July to under $10.00 per million Btu.

As crude and natural gas have declined, so have shares of energy companies, including the large integrated oil companies.

Refining Margins Should Improve

A decline in crude prices isn’t necessarily a bad thing for the large integrated oil companies which refine crude into gasoline. Recently both ConocoPhillips (COP) and Marathon Oil (MRO) have warned about the refinery margins in the second quarter.

ConocoPhillips said that worldwide refining margins were higher than the first quarter by nearly 50% but the company wouldn’t see all of the gain due to negative impacts from secondary products, such as fuel oil, natural gas liquids and petroleum coke, which make up approximately 20% of COP’s overall refined product production. COP’s realized refining margins increased by only 24%.

Marathon’s refining margin fell to $0.0850 per gallon compared to $0.3925 per gallon in the second quarter 2007. The company attributed the primary reason for this reduction was the substantial decline in refining margins in the Midwest (Chicago) and Gulf Coast markets quarter to quarter.

MRO said the Light Louisiana Sweet (LLS) 6-3-2-1 crack spread on a two- thirds Chicago, one-third Gulf Coast basis decreased from $15.47 per barrel in 2007 to $2.47 per barrel in the second quarter of 2008.

Big Oil Has Lots of Cash

With crude at record highs, the integrated oil companies are seeing excellent cash flows. Occidental Petroleum (OXY) announced on July 18 that it was purchasing an additional 20 million shares under its repurchase program that started in 2005.

Through the end of the second quarter, 59.5 million shares had been repurchased. The company cited “market conditions” as the reason for the share repurchase as the company believed that the stock was “trading at a significant discount to intrinsic share value.”

On July 23, ConocoPhillips announced that it would repurchase $2 to $3 billion worth of shares in the third quarter as part of its $10 billion 2008 share repurchase program.

Companies are also making development deals. On July 8, ConocoPhillips entered into a $10 billion agreement with the Abu Dhabi National Oil Company to develop the Shah Gas Field in Abu Dhabi.

Consensus Estimates Are Rising

Brokerage analysts have been raising estimates on many of the integrated oil companies in the last 90 days.

ConocoPhillips reported second quarter earnings on July 23 and surprised on analysts’ estimates by 3 cents, reporting $3.50 per share compared to consensus estimates of $3.47 per share, despite estimates rising over the last 90 days. Consensus estimates has jumped 18.4% over the prior three months.

One-third of covering analysts have raised estimates on Occidental Petroleum in the last 30 days as consensus estimates have jumped 46% in the last 90 days. OXY reports second quarter earnings on July 24.

One-third of brokerage analysts have also raised estimates on MRO for the second quarter in the last month. Marathon reports on second quarter earnings on July 31.

COP and OXY are Zacks #1 Rank (Strong Buy) stocks. MRO is a Zacks #2 Rank (Buy) stock. All three are classified in Oil-US Integrated. This group contains one other Zacks #1 Rank stock- Hess Corporation (HES) - and a Zacks #3 Rank stock- Markwest Energy (MWE).

(The author of this article owns shares of ConocoPhillips.)

Tracey Ryniec is an Editor at Zacks Investment Research. To learn more visit http://www.zacks.com/commentary/8146/Big+Oil+Looks+To+Cash+In+On+Crude+Prices+814600

Article Source: Big Oil Looks To Cash In On Crude Prices

by Kevin Matras
Have you ever looked at an analyst’s price target and wonder where they came up with that number?

I have.

I hate to say it, but I’ve looked at enough price targets to conclude that — well, I shouldn’t be looking at price targets.

I’ve seen some so far out there that I couldn’t imagine how a company could even get near it.

And at other times, so low (and seemingly unattended too) that you’re already well above it, meaning you would have gotten out just as the biggest part of the stock’s move was beginning.

True, price targets aren’t meant to be set-in-stone promises, and they shouldn’t be used in a vacuum either. But it would be great if they could make a bit more sense and be a little more realistic.

So here’s a way to create your own price targets.

(Note: I’ll show you a quick and easy way to create your own price targets at the end of this article. But first, let me explain the dynamics of how you can use a company’s P/E ratio to do this and why it makes sense.)

Many people use P/E ratios to determine a company’s perceived under- or overvaluation.

But you can also use the P/E ratio to determine upside and downside price targets as well.

The two most common P/E ratios are:

P/Es using the Trailing 12 months (or 4 quarters) of Earnings and

P/Es using the F1 (or Current Fiscal Year) Estimates

First, the P/E ratio is simply price divided by (/) earnings. For example, if a stock’s price is $30 and its earnings are $1.25, then its P/E would be 24. ($30 price or ‘P’ / $1.25 earnings or ‘E’ = 24 P/E ratio.)
If that stock’s earnings rose to $2.00, the P/E would now be 15. ($30 price / $2.00 earnings = 15 P/E.)

The most logical conclusion would be to see the stock’s price rise until its most recent multiple (or P/E ratio) of 24 was hit again. Why is this so ‘logical’? Because people had just been willing to pay 24 times a company’s earnings and they probably still are - if there’s reason to believe the company’s earnings will continue to improve.

So $2.00 (earnings) x 24 (the previous multiple or P/E ratio) = $48 (price). So the price target I’d have for that stock would now be $48. (And you could do the same thing on the downside too.)

Anyway, what you’ll find is that most of the time, a stock’s P/E ratio using EPS actuals is higher than its P/E ratio using its forward estimates.

That’s because of the uncertainty regarding projected earnings vs. the certainty of actual earnings.

As the company continues to report (and meets its projections), the forward P/E ratio typically increases, which means the stock price increases as the earnings projections are coming to fruition.

And as more optimism grows over future earnings growth, you may see the P/E ratio grow even more, getting even higher than its previous multiple.

So once again, to figure out your stock’s price target, simply:

(Take the stock’s price) and then multiply it by the equation of its (P/E ratio divided by it’s / forward P/E ratio).

The calculation would look like this:

Price * ((current P/E) / (forward P/E)) = future price (or price target)

Let’s say a stock’s price was $50 and its current P/E was 20. Let’s also say its forward P/E was 15. Take 20 divided by 15 and you get 1.33 (i.e., 15 goes into 20, 1.33 times). Multiply the stock price by 1.33, and you get $66.50.

That’s: $50 * (20 / 15) = $66.50 price target

Once again, this makes sense because if investors are willing to pay 20 times earnings now; assuming the company’s earnings forecast looks good, why wouldn’t they be willing to pay at least that in the future?

The screen I’m running today finds stocks with P/Es under the average for their Industry and are under their average P/E over the last 5 yrs. The stocks also have a price target of at least 20% more than their current price.

The Parameters are:

P/E < Industry's Average P/E
(Stocks with P/Es that are less than the average P/E for their Industry, implying it should have room for P/E growth.)

P/E < Average P/E over the Last 5 Years
(I want the stock’s P/E to be less that the Average P/E over the Last 5 Years.)

Price Target >= 1.2* the current price

And for good measure:

% Change in Actual EPS Growth F(0)/F(-1) > 0

% Change in Estimated EPS Growth F(1)/F(0) > 0

And lastly:

Zacks Rank <=2

Price >= $5

Volume (20 day average) >= 100,000

This screen produces plenty of great stocks trading well under their price target.
GIII GIII Apparel Group
IMA Inverness Medical
WPI Watson Pharmaceuticals

Kevin Matras is the Research Wizard Product Manager and weekly contributing Editor at Zacks Investment Research who creates and writes the Zacks Commentary Screen of the Week. For more information, visit http://www.zacks.com/commentary/8133/What%26%2339%3Bs+Your+Stock%26%2339%3Bs+Price+Target%3F+813300

Article Source: Screen of the Week: What’s Your Stock’s Price Target?

by john 654 lonergan 654
Manage Your Forex Trading Easily

Forex trading is a very erratic market and you can conveniently trade in this market with a Forex advisor.

Forex trading is very lucrative provided the investors are informed about the basics. As an investor, you should possess the requisite knowledge to emerge successful in the volatile market. You can also take the help of an online professional Forex advisor to gain some knowledge about the tricks of this profitable yet risky business.

With this kind of professional assistance, you are assured of the necessary trading information at your fingertips. You no longer need to worry about the movements of this market, which are governed by economic situations in the leading global stock markets and economies.

This kind of an online professional Forex advisor can be very useful for an amateur investor who just started trading. Forex market is a very unpredictable market subjected to daily currency price upswings and downswings and may dwindle the fortunes of inexperienced investors. You do not need to have a forex track record to emerge successful in this erratic market.
One of the most active stock markets in the world, this market is affected by changes in the global happenings. Trading in this market essentially involves exchange of one currency for the other at the prevailing currency exchange rate. Investors hope to reap considerable gains out of this exchange if currency exchange rates of traded currencies have fluctuated favorably.

Forex is a 24 hour active market where transactions take place continuously with investors all over the world putting in money or selling their investments. An investor sells foreign exchange in future when it is perceived that the exchange rates would experience an appreciation or depreciation to the benefit of the investor. The trends in this market have to be followed carefully to experience major windfalls.
This market has a turnover of more than 2 trillion dollars and the hourly money trade in this market exceeds the trade taking place everyday in any stock market in the world. This market offers the highest amount of liquidity to an investor than any trading market. Forex trading market offers the maximum amount of trading opportunities to an investor, being open through out the day for 5 days in a week.

The investor has an access to his account throughout the day because it is open at any time of the day. The investor can sell or buy transactions immediately according to the movement of the exchange rates. An investor can reap the benefits of a managed forex account where exchange transactions are conveniently guided and controlled. You can immediately experience the benefits of unexpected foreign exchange movements with a managed Forex account with a Forex advisor.

You can start trading in the market with an initial small buy of 50,000 US dollars. With the help of online professional Forex advisor, you may make hefty profits out of this profit generation market. You can carry trade in the market just like the experienced brokers of leading international foreign exchange banks and financial institutions with professional advice.

Although trading in this market is adjunct with certain constituent legal risks, professional guidance can minimize the market-associated variable risks. The currency futures are traded with a prefixed amount whereas you can trade larger amounts in the SPOT market as high as 10 million US dollars. The SPOT futures as compared to the currency futures market offer a higher amount of liquidity to the investor.

john lonergan is author of this article on Forex. Find more information about forex managed accounts here.

Article Source: Mint Money Easily By Trading In Forex

by James Kobzeff
This article covers six dynamite real estate investing tips intended to help anyone just getting started in real estate investing to successfully launch and hit the ground running with real estate investment property.

1. Develop the Correct Attitude

To stand a chance of succeeding at real estate investing, foremost, you must understand that real estate investment is a business, and you will become the CEO of that business.

As your first order of business, then, it’s crucial to develop the correct mind-set about investment real estate and be able to make this distinction between buying a home and investing in real estate:

“You buy a home to live and raise a family; you buy real estate investment property to pay for the home, live comfortably, and raise your family in style”

As one very successful real estate investor said, “Only women are beautiful, what are the numbers?” In other words, you will not succeed at real estate investing until you acknowledge that it’s not curb appeal, amenities, floor plan, or neighborhood that should turn you on or off to the investment opportunity; what counts most is the property’s financial performance.

2. Develop Meaningful Objectives

A meaningful set of (realistic) objectives that frames your investment strategy is one of the most important elements of successful investing. Yes, we may all desire to make millions of dollars from real estate investing, but fantasy is not the same as expressing specific goals and a method on how to achieve it.

Here are some suggestions:

How much cash are you willing to invest comfortably? What rate of return are you hoping to achieve by making the investment in real estate? Are you expecting instant cash flow, looking to make your money when the property is resold, or merely looking to achieve tax shelter benefits? How long are you planning to hold the property before you dispose of it? What amount of your own effort can you afford to contribute to the day-to-day operation of running the property? What future net worth are you hoping to achieve by investing, and by when? What type of income property do you feel most comfortable owning, residential or commercial, or does it matter?

3. Develop Market Research

If you’re new to real estate investing, you undoubtedly know little about investment real estate in your local market. So, complete a full market research to learn as much as you can about rental property values, rental rents, and occupancy levels in your area. The better prepared you are, the more likely you are to recognize a good (or bad) deal when you see it.

Here are some good resources:

(a) The local newspaper, (b) A local appraiser, (c) The county tax assessor, (d) A qualified local real estate professional, (e) A local property management company

4. Run the Numbers

I can’t stress enough the importance of running the property’s cash flow, rates of return, and profitability numbers. Remember, real estate investing is a business, and as the CEO of your investment enterprise, you’ve got to know what you’re buying, especially if you’re trying to determine which of several investment opportunities would be the most profitable.

You have two options:

(a) Invest in real estate investment software. This gives you the benefit to discover for yourself the property’s cash flow and rates of return, and in turn to create your own analysis reports. Moreover, you gain a broader understanding of real estate investing nuances by running the numbers yourself, and in turn are less likely to be deceived by someone with little concern about how you spend your money.

(b) At the very least, work with a real estate professional that has invested in real estate investment software and can calculate, present, and discuss the property’s financial data with you.

5. Develop a Relationship with a Qualified Real Estate Professional

Working with a qualified real estate professional is a great way for beginners to get started with rental property investing because an astute professional can acquaint you with local market conditions, recommend a property that meets your investing objectives, and discuss strengths and weaknesses about specific property performance.

Here’s a warning, however: Work with a real estate person who understands investment real estate.

Be sure the agent has a firm grip on key financial measures inherent to real estate investing, knows how to measure profitability and rate of return, has the ability to present the data you need to make wise investment decisions, and, most importantly, shows a genuine interest in how you spend your money. The last thing you want to do is to get involved with a real estate agent that would throw you under the bus just to make a commission.

Here’s a good way to interview for an agent. Ask them for the property’s cap rate and then request an APOD. If their response (even to these basics) is to stand there looking at you like a deer into the headlights of a car, find another agent.

6. Start Investing

Hopefully, this has given you some insight into real estate investing, highlighted a few things to make you a more prudent real estate investor, and perhaps alerted you to a couple of things that should be avoided.

Okay, that does it for us, now it’s time for you to get started. Here’s to your success.

James Kobzeff is the developer of ProAPOD Real Estate Investment Software. Discover how to create cash flow, rates of return, and profitability analysis presentations for rental properties in minutes at => http://www.proapod.com

Article Source: The Top 6 Suggestions for Real Estate Investing Beginners

by
While there is never a wrong time to be investing in gold, the recent collapse and bailout of the GSE’s, failure of IndyMac Bank, and the sharp rise in the CPI make it more imperative than ever, for you to protect your wealth with gold. I’m going to review those three financial events and explain why I feel that it is so crucial for you to be buying gold bullion now.

The Failure of IndyMac Bank
On Friday, IndyMac became the largest bank to fail in two decades. On Monday morning, depositors lined up for blocks and waited for hours to withdraw their money from the bank. Unless, of course, their deposits on account, were over the FDIC limit.

At this point, no one knows how long depositors will have to wait to receive the remainder of their funds or exactly how much they will eventually receive. That is, of course, if they collect anything at all.

What Could Happen
1. The problems at IndyMac are not just an isolated incident, but indicative of a U.S. banking system that has been deeply affected by the worsening credit-mortgage crisis.
2. The Federal Deposit Insurance Corporation’s insurance fund has a capital reserve of $53 billion. The IndyMac failure could use up 10% of those reserves.
3. The FDIC has a secret list of 90 other ‘problem’ banks. The FDIC chairman has assured the public that its reserves would be adequate to handle the additional bank failures that are expected to occur.
4. A few more well publicized bank failures could cause depositors to start pulling money out of even the strongest banks. A widespread panic could start a nation-wide bank run.

Why You Should Buy Gold
Investors who own gold do not have to worry about FDIC insurance, bank failures, and the danger of holding large amounts of cash. Gold is safe, stable, and secure.

The Bailout of the GSEs
Last weekend, the Federal Reserve and the U.S. Treasury attempted to restore investor confidence in Freddie Mae and Freddie Mac by agreeing to open up their discount lending window (loan money) to the beleaguered GSEs. For the time being, it seems to have worked.

The Treasury is now lobbying Congress for a permission to invest (buy shares) in either company, if the need arises. And that is in addition to a desire to increase the companies’ $2.25 billion dollar lines of credit.

What Could Happen
1. A government bailout of the GSEs would increase our national debt, increasing interest rates at a time when the economy can hardly afford it.
2. The Federal Reserve has repeatedly stated that the GSEs are in no danger of failing. But, what if they’re wrong? Between the two of them, Fannie and Freddie guarantee almost half of all the $12 trillion U.S. mortgage debt.
3. Their ability to function is critical for mortgage prices.
4. However, if the GSE’s collapse, the ability to obtain an affordable mortgage will be the least of anyone’s concerns.

Why You Should Invest In Gold
Owning gold is like having an insurance policy. It has been around for centuries and will continue to exist for centuries more. Owning gold will give you peace of mind and protect your assets from any possible financial catastrophe.

The Rise in Consumer Prices
The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 1.1% in May and is up 5% from one year ago. That’s a seasonally adjusted annual rate of 7.9%. Over the same period, food rose 8.7%. And, energy alone is up almost 54%.

That means if you have cash invested in a typical bank savings account, CD, or Treasury bond or bill, you are getting a negative return on your money.

What Could Happen
1. Inflation is rising but the Federal Reserve will be hard pressed to raise interest rates because of the weak economy and stressed-out financial system.
2. That means a weaker dollar. A weaker dollar means a continued rise in inflation. If your investments don’t keep pace with inflation, that means less and less purchasing power as time goes on.

Why You Should Be Buying Gold
Gold is a proven hedge against inflation. Did you know that during the five years after WWII that inflation was at its highest, gold had a real return of over 130% compared to a negative 12% for the Dow Industrial Average? Gold is a stable asset that keeps its purchasing power and preserves wealth.

Still not convinced that you should be investing in gold? Throughout history, fiat currencies have collapsed. Stocks, bonds, futures, and options are subject to the fate of the markets and companies associated with them. We’ve experienced hyperinflation, recessions, and depressions. Both governments and countries have risen and fallen. But, through it all, gold has survived and will continue to be a safe-haven for those wise enough to recognize its true value.

Please take this opportunity to protect your hard-earned money from bank failures, financial catastrophes, and the devastating effects of high inflation with pure gold bullion coins. You can find a huge selection of discount gold bullion coins at: http://bullionbargains.com

Article Source: Why Invest in Gold - 3 Significant Financial Events That Investors Should Not Ignore