Category Archives: Uncategorized

An Investment Real Estate Strategy Unknown To Most Is A Negative Amortization Loan

If you want to make the most of your personal or investment real estate, you should consider a negative amortization loan. Mortgage amortization is basically mortgage balance reduction. Consequently, when a mortgage has negative amortization, the loan balance not only is not reduced, it actually grows. So, why should you consider this? Simple. It is a great way to invest money from real estate someplace else.

This is a very aggressive and fairly unknown approach to real estate investment. In fact, it is a method of investing that does not have to involve real estate, in usual way we consider real estate investing. In other words, a negative amortization loan can give you money to invest in areas other than real estate, and this is how many people use this type of loan.

Let’s assume your mortgage has a conventional loan that calls for a monthly payment of $800. If you refinance to a negative amortization loan, your payment may go down to $400 or less, leaving you $400 or more each month to invest. Now, keep in mind, your mortgage balance is actually increasing with this loan, because you are not paying the required interest, and it is being added to your principal balance.

However, imagine having an extra $5,000 to $6,000 each year to put into a high-yield stock or mutual fund. After five to ten years, this could turn into a very lucrative strategy.

Remember, it is important to consult with a financial advisor, before attempting this loan and this strategy. You might also consult with the wealth-building system, Winning the Mortgage Game.

Investing in Residential Apartment Complexes – Advantages Over Other Residential Investments

If you are interested in investing in real estate, you may be wondering which particular sector to become involved with. There are both residential and commercial options to choose from. If you want to invest in buildings where people live, you will be putting your money in residential properties. When compared to investing in single-family dwellings, there are certainly some advantages of investing in residential apartment complexes. Here are the top four reasons that may convince you that this kind of investment is for you.

The first advantage is your level of cash flow. Even when people move out, your stream of income is not put on a standstill-it simply is reduced. Vacancies result in others paying at least a portion of the rent in the place of moved-out tenants. Then, when someone new moves in, it could actually result in a benefit because the new tenants are likely to pay higher rent.

In general, all kinds of real estate appreciate in value as long as proper maintenance is included in the equation. However, it may be easier to improve the value of residential apartment complexes than single-family homes. It is an excellent combination that by adding conveniences for residents, such as laundry rooms, vending machines, and rentable storage facilities, the value of the property goes up while providing you with an additional source of income from your efforts of investing in residential apartment complexes.

Commercial loans are used for the financing of these kinds of investments. Most commercial lenders will take the potential profitability of the property into account when they decide whether to approve your request for a loan or not. The best part is that commercial loans for investing in residential apartment complexes are usually non-recourse, which means that you will not be personally liable for the debt if the deal goes south. Residential loans, on the other hand, show up on your personal credit report.

The final benefit of investing in residential apartment complexes instead of single-family homes is that, at least for large apartment complexes, there is a professional management team that takes care of the regular day-to-day operations of the property. This improves property value and decreases the owner’s responsibility. Keep in mind that hiring a reliable management team will be the key to this benefit working out for out. A poor management company could result in a disastrous situation for your investment.

Loans Between Limited Companies For Property Investment

Do you have a company for your core business activities?

Are you being taxed heavily on the money that you withdraw from the company and invest in property?

The problem – tax on money you pull out of a company

The problem I see with many property investors who own limited companies is that they do not take into account the amount of tax they pay by taking wages or dividends from the company. If you are a higher rate taxpayer then you will pay an additional 22.5% tax on the money you take out of the company as dividends.

I have worked with a few clients who made a loss on a flip once they took tax into account. Why would you put in the hard work just to pay HMRC?

You may wish to claim entrepreneurs’ relief on your trading business activities and therefore do not wish to jeopardise this by investing in residential properties that you plan to keep long-term and rent out. As such you could have two limited companies:

One for trade business activities
One for investment activities

Scenario 1: Current structure

Let’s say you pay yourself £100K out of the limited company. For simplicity let’s imagine that you are using £50K of this money for a property investment as follows:

£50,000 investment
-£11,250 tax on dividends at 22.5%
£38,750 net cash to invest

You then buy a property using the above money that makes £500 per month profit:

£6,000 annual profit
£2,400 tax at 40% on the above amount
£3,600 net cash

As you can see from the above scenario you are going to pay £13,650 in tax. This does not even take into account the fact that mortgage interest relief will soon be capped at 20%. This issue is explored further in our budget announcement blog.

Scenario 2: Suggested limited company structure

Instead of buying properties in your own name you can buy properties in a new limited company, one that is separate from your trading activities. You, as an individual, set up the company with a £1 share, or £2 if you are setting the company up with your partner. This way you can take advantage of the entrepreneurs’ relief if the company is shut down.

Company A (your trading company) loans Company B (your investment company) £50,000. No tax is payable on this loan.

Now let’s take another look at the figures.

£6,000 annual profit in Company B
£1,500 interest paid to Company A
£4,500 profit
£665 tax based on 19% corporation tax (by 2017)

You can see from the above that you will pay just £665 tax in scenario 2 compared to a tax liability in scenario 1 of £13,650.

Interest from one company to another: commercial arrangement

As Company A is loaning Company B money and they are both separate legal entities then the loan interest needs to be at commercial rates. Therefore it needs to be circa 3% above the Bank of England interest rate, which right now would mean a 3.5% loan interest charge.

• 3.5% interest per annum from one limited company
• The interest income will be taxable in Company A
• The interest charged to the second company will be a tax deductible expense for Company B

As an aside, I would caution against charging a limited company an interest charge if you personally loan it money as you would then be paying tax on the interest.

Market Forecasting – Is It Worth The Trouble?

There are several different camps when it comes to the subject of Market Forecasting.

There are those that believe forecasting the markets with any kind of accuracy is a fairy tale, a practice based on false hopes and unrealistic expectations.

Then there are those who believe that the markets can be accurately predicted in advance, and share stories about traders of old, like the legendary W. D. Gann, as part of the proof that it can be done.

And then there are those that fall somewhere in the middle, believing that Market Forecasting with a high degree of accuracy, although not 100% accuracy 100% of the time, is possible and can be achieved with the right methods and techniques.

Where do I stand on this issue?

My belief is that of the second group mentioned above, that the markets can be accurately predicted in advance with a steady clip and liking to talk about those who have demonstrated this in the past, but PRACTICING the art and skill of forecasting in line with the last group mentioned above, that expectations should be tempered with cautious approach and that other indicators and methods (MACD, %R, Moving Averages, pre-calculated support and resistance, etc.) should be incorporated before making trading decisions based on forecasting.

For three decades I have focused all my energies on predicting future market turns. Those who have followed my work over the years are aware that my forecasts are highly accurate a large percentage of the time, but of course not 100% of the time.

I have discovered many methods and techniques that provide incredible insight as to what the market will LIKELY do in a few days, or weeks, using actual calendar dates to point to when the market is likely to make top or bottom. But I am also aware that there are methods and techniques not yet discovered or lost over time due to those who have not disclosed their findings and have taken them to their death.

Whether you agree or not whether accurate market forecasting is possible, the question of this article is whether it is ‘worth the trouble’?

In one word, the answer is… YES!

Whether you consider the forecasting of market price action to be the prediction of a future turn date as to when the market will make top or bottom (for which I practice), or that of strictly applying common chart indicators in the effort to anticipate a breakout or general change in trend, the whole point of forecasting is to ‘minimize risk exposure’ while ‘maximizing profit potential’.

If anyone is going to trouble themselves with market forecasting, then clearly that person is going to have found techniques and methods and have proven time and time again to be highly reliable for that very purpose. As we can all agree that no single method or technique is going to be 100% accurate 100% of the time, if a forecasting tool can produce a good amount of useful information alone or coupled with others methods, it is going to be worth the trouble to use.

Traders who are familiar with Technical Analysis are likely familiar with the concept of ‘divergence’, such as in ‘bullish or bearish divergences’ using oscillator type indicators. Obviously divergences are not going to be used to forecast in advance what day or week the market is going to make bottom or top. However, it is a forecasting method of sorts in that it can help the trader ‘anticipate’ whether the market is about to change trend. I personally find this analysis of great value and use if along with my other forecasting methods.

The point is, clearly understanding ‘divergences’ is considered ‘worth the trouble’ to even those who do not subscribe to the idea of forecasting market turns in advance as being possible. Those who have never analysed price action for ‘divergences’ are of course going to be skeptical that it is of any worth, until they put that skepticism aside by seeing how powerful that simple method is. The same can be said about other forms of market forecasting. And this is why it is ‘worth the trouble’ to investigate and learn.

If the goal of the trader is to get into a new market move as early as possible with the least amount of risk exposure and the greatest amount of profit potential, then it is ‘worth the trouble’ to learn all you can to make that happen. Market Forecasting is a practice that falls into that category.

Top 12 Internet Marketing Gurus Who Are Changing The World

Who are the top Internet Marketing Gurus that are putting out the best content and changing the industry?

It’s tough to discern the mediocre from the best, but there are a handful who stand out.

I’m sure I’ve left some top-notch players off the list, but in my opinion these 12 guys have dominated the digital marketing world and have helped me progress the most.

Top 12 Internet Marketing Gurus

1. Frank Kern

Blog –

Arguably the best direct response and internet marketer out there.

Frank Kern is a legend to the internet marketing industry. His laid back style and unfiltered personality makes him a huge hit.

He was a broke door-to-door salesman who never finished college and lived in a single trailer.

After failing online for some time, he did keyword research and discovered a market of people wanting to teach their parrot how to talk.

So he hired a freelancer to write a book called, “Teach your parrot to talk,” and it became a HUGE success.

After that he never looked back and has done as high as $18 million dollars on a product launch.

2. Gary Vaynerchuk

Blog –

His start as an entrepreneur began at a young age when he setup lemonade stands around his neighborhood.

He would ride his bike and collect money from all the stands at the end of the day.

Then he moved onto selling baseball cards.

Eventually, he turned his Dad’s family liquor business into a multi-million dollar empire – Wine Library.

He’s high energy and loves the hustle.

Author of big hits: Crush It! and Jab, Jab, Jab, Right Hook.

3. Ryan Deiss

Blog –

Pronounced “dice”… Ryan is the founder and CEO of Digital Marketer, speaker, and consultant.

After graduating college, he only lasted 6 months at his first job before quitting and going all-in with his online business.

Now he serves thousands of products and services to thousands of customers in different markets and countries.

4. Russell Brunson

Blog –

Russell is an internet multi-millionaire and leader of DotComSecrets.

He started his own business when he was still a student at Boise State University.

One of his first products was a DVD teaching people how to build a potato gun.

He took the skills he learned marketing that product and has transformed himself into an internet marketing guru.

Today, he teaches tens of thousands of people all over the world on how to start, build, and market their business online.

5. Darren Rowse

Blog –

Darren stumbled into blogging in 2002 and became hooked on expressing his thoughts, beliefs, and ideas on different subjects.

After working 3 jobs and blogging part-time as a hobby, he “accidentally” started a Digital Photography blog and discovered AdSense and the Amazon affiliate program.

At one point, he created as many as 20 blogs focusing in different niches and was able to go full-time in 2005.

Now he’s a go-to authority in the world of blogging at

6. Pat Flynn

Blog –

Pat Flynn’s story is one of the greatest in the industry

Once upon a time, he worked a 9-5 job at an architecture firm and loved the work he did.

He started studying for an advanced degree, but was bored making notes and flashcards, so he decided to use a blog instead.

However, the economic crash in 2008 forced his company to let him go, so he had no job, a family to provide for, and a blog of architecture notes that didn’t seem relevant anymore.

Or was it…

He found out his blog was getting crazy amounts of traffic from other architectures who were studying for the same exam.

Long story short, he organized his notes, created a product from it, and sold it on his blog.

He made a killing.

Now he has a podcast, creates niche sites, and teaches others how to do the same.

7. Neil Patel

Blog – &

Neil blogs at and is the co-founder of Crazy Egg, Hello Bar and KISSmetrics.

Neil was a first generation Indian in America and saw entrepreneurship all around him growing up. This rubbed off on him.

He tried many things growing up – selling burned CDs, reselling automotive part, and even going door-to-door selling Kirby vacuums.

Eventually he got into internet marketing and creating software that tracked and analyzed data for businesses.

He is now working on growing KISSmetrics into a billion dollar company.

His biggest words of wisdom, “You don’t have to be rich to be happy. You just need to love what you do.”

8. Rand Fishkin

Blog –

Ever heard of Moz? Yes, well it’s time to meet the owner of this awesome blog.

Rand reigns over the search engine optimization domain in the internet marketing world.

He started by lurking on the major SEO forums, and now he’s an addict of search and social on the web.

Moz initially started in 2002, and after a decade it has turned wildly successful.

9. Seth Godin

Blog –

Seth is quite an authoritative figure in the online marketing world.

He is an American author, entrepreneur, marketer, and public speaker.

He stresses over the need of having an honest marketer and consumer relationship in order to possess an effective marketing style.

He is the author of 16 popular books including Purple Cow and All Marketers Are Liars.

10. Mark Hoversonmark-hoverson

Website –

Name almost any authority figure in the internet or network marketing industry, Mark Hoverson has probably worked with them.

From broke, qualifying for welfare, and having neighbors buy his family groceries, to earning over $10,000,000 (yes, million) in 5 years.

He is a master at direct response marketing and founder of many entrepreneurial movements, such as the Lifestyle Design Movement and LIMITLESS, a program designed to build up young entrepreneurs.

11. Matt Lloyd

Blog –

Matt built his own startup company, MOBE, out of his bedroom in Perth, Australia which has gone on to do over $50 million in revenue and has over 100 staff employed around the world.

He made his first million online at the age of 25 and is now an 8-figure earner who runs the most premier home business company in the online marketing space.

On his blog, he answers daily questions from internet marketers on how to start, run, and grow an online business.

12. Eben Pagan

Blog –

Eben is an American entrepreneur, author, and speaker, best known for teaching dating advice under the stage name – David DeAngelo.

He’s widely known for his brand Double Your Dating, but he has started 10 successful businesses from scratch.

He teaches personal productivity, business strategy, marketing techniques, money psychology and wealth creation on his website.