Categories
Cryptocurrency

How To Buy Alt Coins

Determining how to buy alt coins and how to invest in cryptocurrency can be confusing to new investors. Investing used to be simple: stocks, bonds, and real estate. However, the investment process today is much more complicated. As a result, there are an infinite number of choices that are difficult to understand. One of the new investment choices available to investors is cryptocurrency.

It seems clear that the future is bright for Ethereum and other alt coins. We discuss why cryptocurrencies deserve serious consideration and how to buy alt coins. In addition, we talk about some other options for cryptocurrency investing.where to buy alt coins

Bitcoin Critical Banks

The cryptocurrency Bitcoin is a relative newcomer to the financial investment space. Since Bitcoin has only been around since 2009, it has taken a lot of criticism and flak from traditional Wall Street investors. However, many investors who doubted Bitcoin in the past are beginning to come around to the idea of electronic currency and virtual store of value that Bitcoin offers. As a result, demand has surged for Bitcoin in recent years.

Traditionally, banks such as JP Morgan Chase have been hyper critical of cryptocurrency. Jaime Dimon, JP Morgan Chase’s front man, has led the criticism of Bitcoin in recent years. Other financiers, such as Warren Buffet spewed the same vitriol toward Bitcoin. Buffet famously called Bitcoin “rat poison.”

“Cryptocurrencies basically have no value and they don’t produce anything. They don’t reproduce, they can’t mail you a check, they can’t do anything, and what you hope is that somebody else comes along and pays you more money for them later on, but then that person’s got the problem. In terms of value: zero.” – Warren Buffet on CNBC, February 2020

Since Warren Buffet called cryptocurrency “rat poison,” Bitcoin price has skyrocketed!

Of course, when the “Oracle of Omaha” (Warren Buffet) made the disparaging remarks about crypto, Bitcoin was trading around $10,000. Apparently, his comments only emboldened contrarian investors because Bitcoin has continually risen in price since then, going as high as $60,000 in the Spring of 2021. Bitcoin is currently trading around $36,000. So, the question is, where can I find a crypto friendly bank?

Crypto Friendly Bank

Most of the bank heads and Wall Street big wigs have since backed from their critical positions toward cryptocurrency. As a result, some US financial institutions are now becoming a crypto friendly bank. However, keep in mind that many banks are still unsure about Bitcoin and have not begun participating. In addition, some banks only offer Bitcoin investment to high-net-worth clients.Best Crypto To Buy Today

A crypto friendly bank offers options and future trading only. Some offer Bitcoin custody accounts. As a result, a crypto friendly bank is still limited in number. Here is our crypto friendly bank list:

  • UBS
  • HSBC
  • BNP Paribas
  • Deutsche Bank
  • Credit Suisse
  • Bank of America
  • Citigroup
  • Morgan Stanley
  • JP Morgan Chase
  • Goldman Sachs

More on How to Buy Alt Coins

As previously stated, the learning how to buy alt coins using traditional banks may not be an option for the average investor. However, for most investors in the United States, the easiest way for how to buy alt coins is using Coinbase. The Coinbase exchange offers between 70-100 different cryptocurrencies to buy, depending upon which state you live in. It has made things simple and easy to use for investors. In addition, Coinbase offers two sister websites: Coinbase and Coinbase Pro. Coinbase is for beginners and people who like to keep things simple. Furthermore, Coinbase Pro allows those with trading experience or a little more technical background to tweak their trades a little more. On the other hand, Coinbase, which is used by beginners, has fees that vary between 1.5% up to 3.99%, depending on your payment method.

One newer method for how to buy alt coins, which may actually be cheaper than Coinbase is Swan. What makes Swan different is that it simplifies buying bitcoin. You simply link your bank account, set up a weekly, prepaid plan to buy bitcoin each week and then enjoy 0.99% fees. The only drawback to Swan is that it is newer than Coinbase and doesn’t have the history that Coinbase has. However, it seems like a promising way to buy on the cheap.

There are several cryptocurrency exchanges in the United States that allow you to buy Bitcoin and other cryptocurrencies by simply linking a bank account to your crypto account. And there is no special technical knowledge needed to open an account and buy Bitcoin. Other large American cryptocurrency exchanges include Kraken and Gemini.

Using Decentralized Exchanges – How to Buy Alt Coins

Honestly, if you decide to buy alt coins on a decentralized exchange, it can get a little complicated. Luckily, many exchanges have made the process as simple as possible. For example, let’s say that you want to use the Bancor exchange to obtain alt coins. You might then send some Ethereum that you purchased on Coinbase to your Bancor account. This Ethereum would then be used to obtain other tokens or coins on the Bancor network. Why use a decentralized exchange? The answer is that many common exchanges may not offer the new or unusual tokens or coins that you are looking for. However, decentralized exchanges like Hex, Bancor, Kyber Swap, Loopring, Uniswap and many more.

Check out the DefiPrime website to explore all the possibilities with decentralized finance exchanges.ethereum cryptocurrency

Ethereum: A Block Chain Project That Uses Smart Contracts to Power Other Projects

Ethereum is an open-source, decentralized block chain project that is known for its smart contracts. Furthermore, it provides open access to money, via the Ether cryptocurrency coin (ETH), and technology, exemplified by the thousands of applications that are operating on the Ethereum network. The ETH coin of Ethereum is second only to bitcoin in market capitalization.

Like Bitcoin, Ethereum is a Proof of Work consensus system. This means that powerful computers all over the world are continuously solving complexed equations to build blocks on the Ethereum block chain. Whichever machine or miner solves the problem quickest, completes the block and receives a reward as payment: ETH coin.

Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Moreover, Bitcoin was the original decentralized payment system that didn’t require a middleman bank to conduct payments. Although Ethereum is used for payment sometimes, its primary purpose is to serve as the core block chain on which newer projects operate.

Ethereum uses a payment system for ETH. In addition, it implements smart contracts which allows entirely new projects to run on top of the Ethereum block chain. For example, in November 2017, the decentralized application “CryptoKitties” was launched. It is a digital collecting and trading app of virtual felines that works on Ethereum.

Reasons Why Ethereum May Be an Awesome Alt Coin

  • Industry leader in smart contracts
  • Widespread use and adoption
  • $120 Billion market capitalization
  • Home of block chain decentralized applications (dapps)
  • Well established decentralized payment network
  • Serves as the block chain base for hundreds of projects
  • Independence from Banks
  • Borderless Payments
  • Low Fees

Other Cryptocurrencies to Consider

Here are some other cryptocurrencies that are worth looking at more deeply. Although Bitcoin is the most dominant and most secure cryptocurrency, there are many other cryptocurrencies that have strong security and strong use case value. A cryptocurrency investment portfolio may include other cryptocurrencies.Ada price prediction

Cardano (ADA)

Named after Gerolamo Cardano, a 16th century Italian polymath, the Cardano project began in 2015. It is an open-source software project. Moreover, it innovates the design of cryptocurrency. Cardano has a long-term plan called the Road Map. Cardano’s most notorious feature is its implementation of peer-reviewed research. Research and peer review are a part of project development. It has a $3 Billion market capitalization.

A team of academics, researchers and developers managed Cardano. They focus on solving cryptocurrency problems. Moreover, Cardano doesn’t focus on one use case scenario for cryptocurrency; instead, it appears to be tacking many problems at once, such as currency, proof of stake, smart contracts, scalability, security and even scripting. In addition, Cardano uses the delegated proof-of-stake method to maintain the network functionality. This is different because it is more efficient for electricity consumption. Cardano is one to watch if you are looking for a cryptocurrency to invest in.

Monero (XMR)

Created in 2014 from a fork in the Bitcoin block chain, Monero is a privacy coin. Monero uses what it calls an “obfuscated public ledger” which makes transactions of Monero private. Moreover, Monero is a tested privacy payment method. The project has longevity and a working record of privacy.

Monero gets a bad reputation at times. For example, it has been used on the dark web as an illegal payment method. However, it should be noted that paper currency such as the US Dollar can also be used for illegal purposes. Privacy for legal transactions is an important aspect for money and Monero is the foremost privacy cryptocurrency on the web. Monero is cryptocurrency to invest in for those who love privacy.

Chainlink (LINK)

Developed in 2017, Chainlink is a decentralized network that connects smart contracts with real world data. Furthermore, the Chainlink decentralized oracle network is operated by node operators. In addition, operators that maintain nodes are paid LINK cryptocurrency. The nodes connect the system like links in a chain. Chainlink runs on the Ethereum network and plays a critical role in execution of smart contracts. It is one of the new rising stars of the cryptocurrency revolution and an important cryptocurrency to invest in.

Polkadot (DOT)

Another new rising star in the cryptocurrency space is Polkadot. The Web3 Foundation created Polkadot. Its primary function is to facilitate the operation of block chains together. The DOT coin functions in three ways: staking, bonding, and networking. Finally, Polkadot contains special tools like specialization, scale and inoperability which act as catalysts between block chains. As a result, it may be one of the best crypto to buy today.

Pros of Owning Cryptocurrency

Owning Cryptocurrencies May Save A Failing System

Owning cryptocurrencies requires that you have a future vision that is radically different than our current banking system. In addition, cryptocurrency is inherently risky and volatile for investors. However, many believe that cryptocurrency investment is a vote for monetary freedom and independence from governments.

Currently, many countries throughout the world are struggling with debt. As sovereign debt climbs higher in the United States, there doesn’t appear to be an effort to keep the financial system from boiling over. In addition, inflation for many people has become a problem and prices are going higher. Many investors are looking for an alternative investment from an overpriced stock market and real estate market. Cryptocurrency may be a safer place to invest.

Bitcoin doesn’t require using a bank; the bitcoin holder is the bank. Making borderless payments between friends became easier and more private. In addition, Bitcoin is deflationary, with only 21 million Bitcoins available for use. And, if you are starting to have doubts about government money printing and overspending, then Bitcoin is an obvious candidate for safe-haven status. Clearly Bitcoin is one of the best cryptocurrencies to buy today.

Future Predictions of Ethereum Prices

Reputable Investors Foresee Exponential Growth in Bitcoin and Ethereum Markets

It seems clear that in 2021, Bitcoin and Ethereum have begun the next phase of expansion and adoption. As a result, the price of both cryptocurrencies will likely go much, much higher. In addition, these may be the best crypto to buy today. However, there are other good choices as well.

Many investors are optimistic about the Ethereum future price. Because Ethereum’s market capitalization is only $375 Billion, there is much room for growth. Continual adoption of Ethereum by institutional investors could easily lead to a $1 Trillion market capitalization, equating to a $7,500 ETH price. Investors such as Nigel Green and Blockfyre co-founder Simon Dedic predicted much higher prices ($2,500 – $9,000) for Ethereum in the future.

Several of the investors mentioned are worth Billions cumulatively and have a clear track record of investing in markets. They have been advising investors of which is the best crypto to buy today for years. As a result, their predictions are reputable and should be given serious consideration.

Bitcoin Exchanges and More Information

Hopefully this article has helped you make a better decision about how to buy alt coins. There are many exchanges that can be used to purchase cryptocurrency. Binance, Gemini, Kraken, Coinbase, as well as DeFi exchanges. Please do your research if you decide to invest. There are many scams in the crypto industry that are searching for an easy mark. If you want to learn more about Bitcoin and cryptocurrency, there are more articles by Piggy Bank Coins below.

Wrap Up: How to Buy Alt Coins

As you can see, there are many choices for how to buy alt coins. Cryptocurrency is a growing industry with a bright future. Learning how to buy alt coins can be as simple as logging into a bank account and clicking a mouse. Blockchain technology is here to stay and will be a part of the growing tech revolution. As a result, cryptocurrency should play an important part in everyone’s investment strategy.

Read More:

Best Altcoins for 2021

Cryptocurrencies to Invest In

Cheapest Way to Buy Bitcoin

Cryptocurrency for Dummies

Prediction of Bitcoin Price

The Fastest Growing Cryptocurrency

Best Cryptocurrency

Bitcoin

Top 10 Cryptocurrency

How to Become a Millionaire from Nothing

Cardano ADA News

One World Currency

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals, and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.

 

Categories
Business

Most Profitable eBay Items

Online sales of new and used merchandise is exploding right now. Recently, many small business owners have begun to buy and re-sell items on platforms such as Shopify, eBay and Amazon. Online selling platforms drive lots of traffic and business to a single website through powerful search engines. As a result, selling bulk items on these websites can be a lucrative way to make money. In this article we explain the most profitable eBay items and how to run an e-commerce business.

According to the eBay website, there are many easy things that you can learn the most profitable items to sell on eBay. They include things like electronics, toys and clothing.

Here are examples of items which are in demand globally:

  • Jewelry & Watches. Watches. Engagement Rings. Fine Earrings & Rings.
  • Computers/Tablets & Networking. Printer Ink, Toner & Paper. Graphics/Video Cards. PC Laptops, Netbooks & Laptop Replacement Parts.
  • Cell Phones & Accessories. Cell Phones, Smartphones & Parts. Cases, Covers & Skins. Headsets.
  • Video Games & Consoles. Popular Games, Consoles and Video Game Merchandise.
  • Clothing, Shoes & Accessories. Women’s Bags & Handbags. Clothing, Shoes & Accessories.
  • Cameras & Photo. Lenses. Digital & Film Cameras.
  • Health & Beauty. Fragrances. Anti-Aging Products. Vitamins & Minerals.
  • Music, DVDs & Movies. Music Records & CDs. DVDs & Blu-ray Discs.
  • Automotive. Car & Truck Parts. Car Audio & Electrical Components. –eBay WebsiteMost Profitable Things To Sell On eBayObviously, this is a large swathe of what are considered to be the easiest things that you can learn the most profitable eBay items. It is a good idea to start out with a longer list of items you can sell, and then begin narrowing it down to your focus products. As a result, this will help you choose the best product for your business.

Top 10 Products: The Most Profitable eBay Items

  • Jewelry/Watches
  • Computers/Accessories
  • Cell Phones/Accessories
  • Video Games/Accessories
  • Clothing/Shoes
  • Cameras/Photo
  • Health/Beauty
  • Music/Movies/Entertainment
  • Automotive
  • Bonus: Vintage items, including electronics, vintage collectibles, such as toys, knives, war memorabilia, and more.

Hot Pandemic Items to Sell

Many people are stuck at home with nothing to do (but shop). As a result, they are looking for things that they can use during the quarantine. Moreover, people are doing more at home and less in public. Instead of driving to the gym, they are doing a home workout; instead of driving to get coffee, they are making a latte in their kitchen; instead of traveling to work, they are working from home. Furthermore, understanding this will help you tailor a products list that will have a better chance selling on eBay.

Pandemic Products Include:

  • Exercise equipment (ex. Dumbbells, weights, yoga)
  • Cleaning supplies (ex. Wipes, hand sanitizer)
  • Gaming accessories (ex. Headsets, gaming chairs)
  • Office supplies/accessories (ex. Printers, furniture)
  • Small appliances (ex. Coffee maker, margarita machine)Most Profitable Things To Sell On eBay

Although the list of best selling eBay products changes from day-to-day, here are some core products that have been hot sellers in the past. In addition, keep in mind that there are seasonal items that come and go. For example, holiday items sell best during holidays like Christmas, and summer fun items sell in the summer.

Start an Online Ecommerce Store

Websites like Shopify, Amazon and eBay make it relatively easy for you to open an e-commerce store for practically nothing. For example, there are tons of videos and posts online about how to go about this. Furthermore, if you go this route, do your research and determine which site is the best fit for you. Getting started can sometimes be a challenge.

Also, you can sell services online. Are you good at building websites, social media or marketing? Many businesses now have an online presence and they need marketers and SEO consultants to help them reach customers. Becoming an e-commerce or online marketing expert can be a lucrative career.

Sell Items Lying Around the House

Sell Items Like Electronics, Jewelry and Name Brand Items Online or in a Garage Sale

The quickest way to get started selling on eBay is to sell items you already own, but don’t need. Take an inventory of what you have at home that isn’t needed. Cell phones, gift cards and electronics are quick sellers. Other items that you may have not considered include:

  • Jewelry
  • Vintage toys
  • Fitness equipment
  • Collectibles
  • Name Brand Items (Apple, Bose, Tiffany, Etc.)how to make money without working

First, the common places to sell the items include eBay, Etsy, LetGo, Swappa, Gift Card Granny and Gazelle. Each of these sellers offers a phone app so you can easily manage purchases directly from your cell phone. The money from each sale goes directly to your bank account. Note: fees may apply.

Second, once you have decided on using eBay, simply gather your products you want to sell. You may want to clean them and prepare them for photos. Once products are clean, photograph them, and begin listing them on eBay. You will find that eBay has a great smart phone app that allows you to do everything without the use of a home computer.

Side Hustle or Full-Time Work   

Learning the most profitable eBay items can be something you can do in your spare time. Furthermore, you can also be an online seller full-time. One example you might think of is eBay auction sites. You can make a lot of money by buying products from wholesale suppliers to sell online on websites like Amazon and eBay. Buying items wholesale at a low price and then selling them on a website like eBay or Amazon can be something you could do for a small fraction of the cost they buy in bulk at a wholesale price.

New or Used Items

There are many opportunities for buying either new or used items for bulk resale. For example, you may decide that you want to do drop shipping and buy bulk new items. For example, many sellers on Amazon buy bulk items from online sellers in China such as Alibaba. Furthermore, the sellers receive a discount for buying items in bulk. The items can then be sold at higher, retail prices on websites to US buyers for a profit. As a result, this is essentially the drop shipping model of sales.

Next, you can also choose to buy used or damaged merchandise for resale. For example, participating in an online mass auctions are a great way to find the things that you need for the most profitable eBay items. If you just want to get a bargain or plan to buy items en masse, this may be the best way you can get experience for the most profitable eBay items. The quality is quite good and you can get discounts, but the rest of the item you buy will be sold at a much lower price. Examples of this include buying bulk auctions from retailers such as Target, Amazon and Wal-Mart.best selling items on eBay right now

Buying the low priced items can enable you to learn the most profitable eBay items and ensures you a low investment cost, increasing the profit margins on your resales. In addition, learning the most profitable eBay items ensures lower prices for each unit and increases your profit margins on resales as an effect.

Wholesale and Retail Profit   

When you choose wholesale and retail, remember that the profit you make also depends on how cheap the wholesale price is. If you need to buy your goods in large quantities, wholesale is usually more expensive than resale or drop shipping. It is more cost-intensive and more effective for a wholesaler to buy the products from a manufacturer and get a discount than for each item individually. Buy the easiest method for the most profitable eBay items is to purchase at wholesale prices, maintain low business costs and still make a profit.

If you just want a good deal at wholesale prices or don’t want to deal with private labels, wholesale is another great alternative. If you buy from a liquidator or wholesaler or buy pallets directly from Walmart without checking the source, you can save money and increase your profit margin. Furthermore, big online retailers like eBay and Amazon allow easy access to their platforms for the most profitable eBay items. However, wholesale can also be a bigger alternative for those who only need to buy in bulk.

Other Ways to Reduce Costs   

If you also want to buy large quantities of items from a manufacturer or distributor without paying tax, you can obtain a resale license known as a wholesale license because wholesalers use it to purchase large quantities of inventory. Buying and selling goods wholesale is not strictly necessary to sell goods, but many wholesalers will require or require VAT and ID.

Wholesale Selling Strategy for eBay  

Once you have all the information you need regarding the most profitable eBay items, you can start your wholesale selling strategy. Let’s go through several ways to find the best wholesale companies for your small business, from drop shipping suppliers to wholesalers. Now that we have developed our wholesale pricing strategy, it is time to look for potential wholesale customers.

To buy wholesale goods in a store, visit a competitor store that sells a line of products similar to yours. If you know that the product is selling well, buy it and take it to the wholesale market.

Most wholesalers have a minimum purchase quantity for the things that you can learn the most profitable eBay items, so you need to identify which products are best suited for bulk sales. Your product will probably be sold in large quantities to many different retailers and distributors. If you buy your product from a wholesaler, you can sell it at a higher price to make a profit, but if you sell it wholesale, it is probably not worth buying it from them and selling it at the high price at which you made a profit.

If you buy large quantities of the products which are the most profitable eBay items, you can sell it over a longer period of time and benefit from selling your products at a higher price.

Wrap Up: The Most Profitable eBay Items

Whether you are opening a retail store or store or simply buying wholesale for the first time, it is vital that you understand the process of finding and selling the products on eBay. To successfully learn the most profitable eBay items and Amazon, you need to identify the needs of your suppliers and customers and then learn how to get them. Whether you are buying bulk clothing or reselling, finding the best suppliers to use for bulk shopping is critical to your business success.

Read More:

How to Become a Vendor on Amazon

Wealth Building Cornerstones

How Does Robinhood Make Money?

Best Investing Books of All Time

How to Become a Millionaire from Nothing

Questions to Ask a Financial Advisor

Value Investing Books

How Much Savings You Should Have at 40

Why Saving Money is Important

The Best Budget App

10 Things to Know Before Starting a Budget

Debt Elimination

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We do not endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.

Categories
Real Estate

Foreclosure Investment Opportunities

We will discuss real estate foreclosure investment opportunities for new investors. In addition, we will talk about alternative real estate investments and how to get started buying and profiting from real estate, using wholesaling, REITs, passive income and more.

Buying a foreclosed home may seem like a smart way to jump into the housing market cheaply, but buying a foreclosed home is a big responsibility and a potential financial risk, especially for first-time buyers. Furthermore, buying foreclosure investment opportunities can be risky. There has been a lot of research into buying foreclosures and buying homes in foreclosures, and there could be some serious pitfalls to overcome.

At the same time, you should visit the websites of real estate agents who have a database of foreclosures and hire a lawyer who specializes in foreclosures. You may also want to consider a foreclosure specialist, although you can also search online for foreclosures and properties for sale near you. Once you find an agent who wants to work on buying a foreclosure, ask them to look for properties that meet your criteria.  Using a professional can help you avoid mistakes when taking advantage of foreclosure investment opportunities

Real Estate Team   

When you are thinking about buying a bank-owned by foreclosure, your lender will require you to work with a real estate agent. For example, you will work with an agent who has specialized experience in selling foreclosures and homes. Furthermore, depending on the type of property you are buying a foreclosed home in, the bank may also require you to work a team. This team of real estate agents typically understand the process of buying and selling foreclosed homes from the banks.

Investing In Multifamily PropertiesAn experienced real estate agent can also help you assess the potential hurdles to buying a foreclosed home. If you are a first-time buyer of a foreclosure, you might want to hire a savvy real estate agent with experience in foreclosures. This will help you avoid some risk when buying foreclosure investment opportunities.

If not, a broker who works with a lender is used to buying foreclosures from lenders. If you are a first-time buyer of a foreclosure or even a new home, you should seek help from an experienced real estate agent as soon as possible. Getting help from a professional can help you avoid the pitfalls of foreclosure investment opportunities.

Working with a Professional 

If a foreclosed property seems like a good investment, a lender can help you buy it for investment purposes. Furthermore, buying a home can also be an opportunity for the owner – as a resident or investor – to make a traditional purchase. If you want to buy a foreclosed property, there are not so many traditional buyers you can compete with when you’re looking for a new home, especially if you’ve purchased a foreclosure.

It is a good idea to work with an experienced real estate agent who knows how the foreclosure process works. Take time to learn about the basics of home foreclosures and learn everything you need to know before getting started. For example, part of buying foreclosure investment opportunities is the unknown. Educate yourself so that you understand the process of buying a previously foreclosed property.

Types of Foreclosures   

There are several types of foreclosures, including those owned by the bank (Real Estate Owned), those facing foreclosure, law enforcement auctions and those owned by government organizations. While this article covers the basics of buying a previously closed property, there is much more to learn about the foreclosure process, including the title issues that caused the foreclosure of your home, the terms of the loan and the financial situation of you and your property. There is a lot of information about foreclosures, whether it is real estate owned or owned, mortgage interest, property taxes, property taxes, and much more.

What is a REO?   

“Real estate owned (REO) is property owned by a lender, such as a bank, that has not been successfully sold at a foreclosure auction. A lender—often a bank or quasi-governmental entity such as Fannie Mae or Freddie Mac—takes ownership of a foreclosed property when it fails to sell at the amount sought to cover the loan.” – Investopedia

A foreclosed home is a bank-owned property that is ultimately subjected to a foreclosure process in which the bank attempts to recover money for the property. These include houses bought at auction by banks or credit companies to be resold on the open market, also known as “property-owned properties.”

If the lender sells the property, the foreclosure is calculated so that anyone can buy it, but if the bank auctions it, it can be bought by another bank. Foreclosure can be either by a bank if it was purchased at auction or by another lender.

Competing Against Professionals

Since foreclosures tend to be picked up by real estate investors willing to pay cash, you shouldn’t be discouraged. Competition by professionals trying to buy these properties is common. Many lenders will help you find the right financing to buy a foreclosed home, and you can auction it off in the same way as any other home. You can also get financing for a short sale of the front-end home by buying it on the open market, where a cash payment is usually required. If you plan to renovate the property, try getting a government-backed FHA loan or home loan (HCL) to buy a closed home with the appropriate financing.

If you are buying a completely foreclosed home, you may need to do additional research to see what liens are still outstanding on the property. You don’t necessarily need a real estate agent to buy a foreclosure, but they can provide you with expert advice on foreclosures in your search area. When your house is auctioned, they look after your interests and help you negotiate half of them for you.

If you are worried about the risk involved with foreclosure investment opportunities, then perhaps you should consider wholesaling. Buying and selling properties through the wholesale market can be a lower risk option with some advantages.

What are Wholesale Properties?

In order to learn more about wholesale properties we must know who the wholesaler is. The wholesaler is the person who makes the deal. A real estate wholesaler looks for underpriced properties. Once the wholesaler finds a property, he or she contracts with the seller to buy it. Then the wholesaler finds a buyer for the property at a profit. The wholesaler then contracts with the buyer to complete the deal.

The advantage of buying wholesale properties is that it requires little or no money up front. Moreover, the wholesaler simply contracts with the seller with no money up front. An no money changes hands between the wholesaler and the seller. In addition, many wholesale contracts have clauses or caveats that allow the wholesaler to walk away from the deal if it doesn’t work out.

In a way, buying wholesale properties simply means that the person making the deal is an agent. The agent is independent of any realtor or broker requirements. In fact, real estate wholesaling doesn’t require any training or credentials. Anyone can be a real estate wholesaler.

Wholesale Properties Example

Person A has a property that he owns that he has been unable to sell. The property needs some improvement and Person A is unable to complete the improvements. Person B, the wholesaler, contacts Person A and makes him a cash offer to buy the property. Person A agrees to the offer of $50,000. Although the wholesaler (Person B) doesn’t have any money, he locks the property up in a contract with Person A. Person B then begins contacting potential investors and eventually finds a buyer (Person C) at a price of $65,000. Person B (the wholesaler) then assigns the existing contract to Person C. The wholesaler then nets a profit of $15,000 after the deal closes.

The Challenges of Real Estate Wholesale Properties

Finding and Executing Wholesale Properties Can Be Hard Work, Time Consuming and Frustrating

Finding wholesale properties can be frustrating. Getting leads for wholesale properties can require significant work, time investment and sales skills. Wholesalers can spend much of their time on the phone trying to make deals. You have to be prepared for getting doors slammed in your face, much like a telemarketer would.

Second, you need to understand a little bit about contracting law and real estate sales. You will be responsible for creating contracts between yourself and potential buyers and sellers. You will also be dealing directly with title companies.

Finally, there may be wholesale properties that you contract that don’t work out. After spending hours or days preparing a deal, writing up contracts and traveling back and forth to complete the deal, it may fall through. Sometimes investors get cold feet, buyers change their mind or other issues come up.

Other Real Estate Investing Options

Passive Income and Long-Term Income

Earning income in ways that very little or even no effort to maintain is called passive income. Moreover, with passive income, you earn money while you sleep or vacation. Although this idea may sound impossible, it is a secret that millionaires and billionaires have utilized for hundreds of years to become wealthy.

Common examples of passive income include owning commercial real estate investing rental properties. Of course, there are other examples of passive income, like stock dividends, high-yield savings accounts, annuities, and real estate investment trusts (REITs) as well.

Unfortunately, although passive income may seem like easy money, it is not. Generating passive income requires upfront work that lays the groundwork for future income. It is not a get-rich-quick scheme. In addition, it may require some additional work as you move forward. For example, if you own a commercial rent property, you will be required to pay for property maintenance, improvements, taxes and insurance on your investment.

To avoid risky mistakes when seeking out foreclosure investment opportunities, consider other, less-risky options. Some of those options include passive real estate income investing, long-term investing and REITs. More to come on those.

Long Term Investment Income (Portfolio Income)

Portfolio Income from long term investments is earned is made by capital gains. Assets can be examples of portfolio income. For example, if you own stocks, bonds, property, etc., you have portfolio income. When you sell your assets, hopefully they have increased in value while you held them. As a result, during the sale you incur capital gains.

For example, let’s say you bought $1,000 worth of stock in 2018. Now, in 2020, you decide it’s time to sell the stock. The stock is now worth $1,500 in the market. When you sell the stock, you will realize a $500 capital gain or profit ($1,500-$1,000 = $500). Capital gains from assets like stocks and bonds are how Wall Street traders make money.

Commercial real estate investing can also become portfolio income. Even if you own a commercial property for which you collect rent, you can still realize capital gains as well. For example, if you decide to sell your commercial real estate investment, you may profit from the sale (assuming the property is sold for more than you paid for it).

Real Estate Investment Trusts (REITs)

A REIT is a Simple Investment Like a Stock that Requires Less Capital and Less Risk

A REIT, or real estate investment trust, is a company that owns and manages real estate assets. REITs take advantage of special tax savings, allowing them to incur minimal corporate income tax. In addition, a REIT pays dividends, a type of passive income for commercial real estate investors. Historically, many REITs have paid increasing dividends each year, which means your passive income stream might grow with little effort. In addition, what is great about REITs is that unlike foreclosure investment opportunities, REITs have lower risk.

However, with any investment comes risk. Some REITs are inherently riskier than others. For example, a REIT fund that contains a large number of commercial real estate investing assets will be less risky than owning one REIT stock with less diversification.  In addition, determining which REITs to invest in can require significant time for a business analysis of each business’ records.

Another risk with REITs is reduced dividend income. Historically, during economic downturns such as the real estate market crash of 2008, REITs lose significant value. When this occurs, dividend income can be slashed or removed completely.

Rental Properties

Never before has investing in real estate been easier. Today, anyone can purchase investment houses for generating passive income. In addition, you can use the “BRRRR” method to leverage multiple properties so that larger passive incomes are generated from your investment houses.

You are probably wondering how the big real estate investors acquire so many properties in just a few years. Well, the secret to buying more investment houses in real estate is using the “BRRRR” strategy. So, what is BRRRR and how will it help in buying more investment houses?

The BRRRR Real Estate Strategy for Rental Properties

BRRRR stand for buy, rehab, rent, refinance and repeat. The BRRRR investment strategy has worked for many successful real estate investors. It allows you to build a portfolio of investment houses quickly. In addition, it requires using less personal capital. Let’s breakdown this step-wise process to understand the details and the order of this strategy.

Step 1: Buy Investment Property

Buy Undervalued Properties and Calculate Profitability Before Jumping In

Once you have narrowed down the kind of property you want to specialize in, such as apartments, duplexes or single-family homes, it’s time to buy. First, you will want to search for investment houses that are undervalued or significantly discounted. Many investors credit their profit margins to buying investment houses at prices that are significantly below the potential market value.

Next, after screening properties, you must do some calculations. One calculation that can help determine whether the investment houses you have chosen are profitable is the After-Repair Value (ARV). This will tell you what the investment property is worth after it has been rehabbed. If the cost to rehab a home is too high, profitability can be an issue. In turn, this can jeopardize your BRRRR strategy.

Finally, you will want to conduct a rental analysis. A rental analysis is a process of determining how much rental income the property is capable of generating. You will use this value in your overall profitability calculation for the deal.

Some other considerations: Don’t forget to include costs such as closing costs, rehab costs and the amount of cash that you will put down for financing. Many investors expect to use 20% down for investment houses.

Step 2: Rehab Investment Property

The next step in the BRRRR process is to begin repairing and renovating (rehabbing) the investment property. The object of the rehab is to quickly conduct repairs that will make the home appealing, safe and add value to the property. In addition, you want to rehab the property as quickly as possible. Furthermore, the quicker the process of rehab is complete, the quicker you can begin earning money from rental income.

Step 3: Rent Investment Property

After completion of the property rehab, it’s time to find a tenant for your property. A good tenant will consistently provide income (in the form of rent) for your investment. Furthermore, a good renter will take care of your property and not allow it to be damaged. Carefully determine what the market rental rate is for your area. In turn, this will ensure that you quickly find a renter and the property doesn’t sit vacant for months. In addition, you will want to properly vet potential tenants to make sure you find renters who are the best fit.

Step 4: Refinance Investment Property

Challenges of Working with Lenders, Obtaining Financing and Economic Cycles

The third “R” in the BRRRR process is refinance. After rehabbing the property and finding a renter, you can begin to look for a lender. The refinancing process means you will be working with a bank to borrow money based upon the remaining equity in the property. However, there are several things to know about refinancing investment houses.

First, banks typically only lend approximately 75% or less of the appraised value of the property in a cash-out refinance. The lender will consider your credit score when determining whether to lend money to you. In addition, you may need to demonstrate that the property is generating rental income and is legitimately appraised at the value you say it’s worth.

Dealing with banks can be a slow, frustrating process. Keep in mind that banks only lend money in situations where they feel that the money is secure. Furthermore, they don’t want to lose money or lend too much money out for an overvalued property. In addition, economic cycles can change factors such as interest rates and credit flow. For example, after the 2008 housing crisis, it was very difficult to obtain a loan from banks and the BRRRR method was not smooth.

Step 5: Repeat the Process

If everything lines up correctly, the BRRRR method will be a success. You will find an undervalued property, buy the property, rehab and rent it and then obtain financing that you can use to buy the next property. You can then repeat the process of acquiring investment houses. If the BRRRR method is successful, you will be generating a net profit each month.

Getting Started with Investment Houses

Buy Where There is Growth and Population Movement – The South and West United States

One rule that smart real estate investors use is to buy properties where populations are growing. Population growth and population movement tend to drive prices up in real estate markets. Basic economics tells us that when there are more people demanding housing, supply cannot keep up with demand. As a result, prices go up, which is good for landlords.

For many years, there has been growth in the South and Western United States. For example, a United States Census Bureau 2019 Article states that of the 15 cities in the US with the most growth, eight of them were in the South, six were in the West and one in the Midwest. Popular cities include places like Phoenix, Arizona, San Antonio, Texas and Jacksonville, Florida.

Foreclosure Investment Opportunities Wrap Up

Hopefully this article has helped you understand foreclosure investment opportunities, as well as options for other real estate investment. General investing in real estate is viewed as a solid investing opportunity for the foreseeable future. It can be a great way to earn money while investing little of your own cash. However, it is also time consuming, frustrating and requires some knowledge and patience.

Read More:

What Makes Buying Foreclosed Property Risky

USDA Property Eligibility Map

Best Place to Buy Rental Property

Why Saving Money is Important

One Percent Rule of Real Estate

Investment Houses

10 Things to Know Before Starting a Budget

Value Investing Books

Home Buying Power

Disclaimer: It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.