Financial advice for future real estate developers

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The financial aspect of real estate development is not for the faint of heart.  If this is your first foray into real estate development, odds are everything is bigger than what you’re used to dealing with from the money to the risks involved.  One step in ensuring that you end your days unscathed and your projects intact is to know the basics of handling finances.

Here are a few more tips on the financial side of real estate development.

Take your taxes seriously

We’ve seen more than our share of real estate developers go down because they didn’t take taxes seriously.  While others may advise you to check for loopholes or simply forego the payment of taxes, we highly recommend that you do the opposite.

Stay updated, and never try to circumvent the tax laws.  Avoid late fees and avoid any legal hassle.  The IRS is a very serious organization, and if you have a good accountant, one of the first things he’ll tell you is to pay the right amount of taxes on time.

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Know your community

Knowing your neighbors is just as important as anything else when developing real estate.  Chances are the people in the immediate vicinity will be the first ones to scope out, invest in, or promote your property.

Knowing if the area is family-centric, millennial-dominated, or business-oriented, may help you decide on what kind of real estate they need.  Of course, this translates to huge profits in the long run.

Hi there, Steve Sorensen here. I do business consultation and financial counseling for both large and small enterprises. Check out my Twitter account for more info.

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Thinking about investing in real estate? Here are a few money tips

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Investing in real estate is no joke.  Whether the investor is an individual or a business, looking for properties to purchase involves major spending.  However, the return on investment is also pretty lucrative, especially if you’re looking to either re-sell, have the property rented out, or convert it to residential spaces.

Here are a few important points to ponder as shared by experts in the real estate and finance industries for people and businesses looking to invest in real estate.

On down markets

Many rookie investors are hesitant to purchase anything, much less real estate, during a down market.  However, veteran investors say otherwise.  A down market is actually the best time to buy property since everything is cheaper, and there’s no way for the market to go but up.

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On REITs

Real estate investment trusts, or REITs are easy-to-use and great for younger investors who want to buy more affordable real estate and convert them into prime commercial properties.  REITs are also very liquid, which is a huge plus.

On residential properties

For younger investors looking to learn the ins and outs of investing in real estate, investing in residential properties is as good a place to start as any.  It’s not as complicated and still yields a huge payday, especially if the property is made into a number of apartments.

Hi there, Steve Sorensen here. I do business consultation and financial counseling for both large and small enterprises. Check out my Twitter account for more info.

Business success lessons we can learn from ‘The Wolf of Wall Street’

axn-leo40-open.jpgOne of the grittiest and unabashedly realist films depicting the goings-on in Wall Street during Jordan Belfort’s time is “The Wolf of Wall Street.”  We’re not saying that we should follow Belfort’s then-wolf-like tactics (which ultimately led to his downfall), but the movie does teach us key lessons in achieving business success.

Firstly, business is all about one’s ability to sell himself or herself.  This often begins with that exuded confidence.  It’s important in any business to have a good understanding of the so-called Johari window, which translates to knowing fully well how others see you and how you want others to see you.  And yes, power-dressing helps a lot.

You should, from the get-go, know what you want.  Find that niche or specialty as soon as possible; more important than goal-setting is a clear vision of what

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you want to achieve and how you’d get there.  Belfort knew he had to quickly capitalize on something lucrative, and that proved to be selling penny stocks to the public.  Of course, we’re not at all condoning exploitation.  But you get the idea.

Once the system is in place, work on honing the strategy and don’t waver.  In Belfort’s case, he continued to tweak his approach and zeroed in on his target demographic, customizing his pitches to their needs.  In a way, Belfort’s strategy of putting the premium on customer service became the template for modern methods of maintaining a loyal clientele base.

Hi, there.  My name’s Steve Sorensen and I’m a certified public accountant.  I consult for business finance and investment, banking, and on issues involving employee embezzlement.  For more on my work and interests, visit this website.

Three Costly Investment Mistakes You Need To Avoid

Committing mistakes is a part of life, and is an essential part of our progress. However, certain mistakes are too costly to be a part of your learning process. Especially in investment, where you’re talking about your money, you can’t have too many mistakes in your portfolio.

Here are some of them so you can avoid them in the future.

1. Confirmation bias

You may believe certain things about market conditions and research for information to support those beliefs. This is dangerous as you might be ignoring other information that could be valuable in your decision making.

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2. Anchoring

Times are changing faster than ever before, not only in technology but investment as well. You may fall victim of “anchoring” where you become fixated on past information and then use that information to make investment decisions.

3. Herd mentality

People like to “belong.” It’s in our DNA. This desire could motivate you to pursue an investment just because it’s the trend and everybody’s doing it. Study and weigh the investment carefully before committing.

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Hi there, Steve Sorensen here. I’m a certified public accountant and business writer from Colorado. I have a strong background in business and finance. I also offer advice to companies on clamping down on employee embezzlement. Visit my blog to know more.

What are The Requirements for Filing an Embezzlement Charge?

When embezzlement is mentioned, it commonly refers to employee theft. But it is just one form of embezzlement as any act of misappropriation of funds that have been entrusted to someone’s care can be considered as the crime as well.

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For example, take someone who works in or manages a rental car business that does not own the vehicles. If he allows anyone else, like a relative or friend, to just show up and use one of the cars, even if there is no intention of keeping it, they could be charged with embezzlement.

For an embezzlement to be charged, the following factors must be met:

  • The two parties involved must be under a fiduciary relationship, which means one of them has the power to act on behalf of the other. The relationship or partnership is based trust, honesty, and loyalty.
  • The defendant or accused should have acquired the property because of the said relationship. It is either it was his responsibility to take care of the property, or it was entrusted to him.
  • The defendant or accused must be proven to have taken ownership or fraudulently used the property in question.
  • The actions of the defendant or accused were intentional or intended to deprive the owner of its use.
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Hi, Steve Sorensen here, a Certified Public Accountant and a business consultant who helps advises organizations on varying issues, including employee embezzlement. To know more about me, visit this Facebook page.

A Day In The Life Of An Accountant

The life of accountants brims with all sorts of tasks and activities. They have to be organized and detail-oriented in their work. Decisions have to be made in a logical manner, and problems approached sequentially.

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You should understand that the typical day of a Certified Public Accountant, or a CPA, depends on the day. There are certain dates wherein CPAs do things differently. But apart from these particular days, CPAs are simply immersed in auditing.

The day of a CPA is heavily dependent on the CPA’s office and position. Public accountants need to audit, oversee tax and management duties, and dabble in consulting for their clients. CPAs in businesses and private companies are mostly in an accounting and financial department that supports the organization. CPAs in the government do all these things, but they also conduct performance, compliance, and investigative audits. CPAs that work for non-profits design internal control systems. They also solve tax problems, prep financial reports, and budget resources.

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So, is there a typical day for a CPA? Yes, there is. But it depends what kind of CPA you want to be.

Hello. I’m Steve Sorensen and I’m a CPA based in Colorado. For more on accounting and businesses, check out this blog.

An Introduction To The Stock Market Bubble

According to analysts, there is an imminent danger of a stock market bubble bursting due to the overwhelming amount of stock market trades that have occurred in the last year alone. Financial advisors caution that regardless of whether these forecasts pan out or not, more people should become aware of market crashes and what defines a bubble. These definitions are no longer lofty concepts that only “expert” investors should know; they are real-world phenomena that affect everyone, whether everyone realizes it or not.

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Thus: a bubble describes an investing phenomenon which occurs when investors place too much demand on a specific stock or set of stocks. Investors drive the price of these stocks beyond any reasonable or accurate thought (to the point where it is no longer a good reflection of the company’s actual worth). These bubbles initially seem to blow up forever, but — as with a bubble — they’re insubstantial, they will eventually pop. The “higher” these bubbles rise, the more devastating the crash. It is typical to see market bubbles burst to dissipate millions of dollars.

These bursts are called market crashes, which are significant drops in the total value of the entire market. These crashes create a situation of panic, with many investors often struggling to gain back their losses. Different market crashes involve a myriad reactions, but the most general feeling is one of urgency. The panic that sets in usually leads to massive selling, which eventually crashes even more. In a domino effect, stock market crashes are followed by a depression.

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There are other nuances involved in either definition but these general outlooks should at least be understood — especially as the patterns for a stock market bubble are being evidenced in current events.

Financial blogger Steve Sorensen focuses on the topics of embezzlement and stock market culture. To learn more, visit this blog.