Wealth Can Be Achieveable

If you have dreams of being successful and want to build a strong financial foundation you will find this article helpful.  There are certain things you can do presently and for the future in order to become  financially successful.  You might have to take a risk or two, but without risk there is no reward.  Make note of the two steps explained in this article in your efforts towards financial success.

2 Critical Steps You Can Take Right Now to Build Lasting Wealth

 08/30/2016 06:06 pm ET | Updated Aug 30, 2016

Want to be successful? You have to prepare. Success isn’t accidental. It’s the combination of preparation, focus and opportunity. When these three things overlap, like the Venn diagrams you learned about in school, amazing things happen.

To stay focused on preparing for the future, I think about a quote from Robert Herjavec: “I don’t think anyone wakes up and says, ‘I want my life to suck today.’” I’ve witnessed and personally experienced both success and failure. We all have. But, what sets the winners apart is that they focus their efforts, down to the minute, on a singular goal.

Take action towards your goals. If, like me, your goal is to become completely financially independent, then you need to do the following:

1. Create Multiple Streams of Income

Talk to any financial adviser. They’ll tell you that the key to long-term growth in your investment portfolio is diversity. Things go wrong, but if you have alternative streams of income to rely on, you can bounce back without crashing. Think of diversification as a type of insurance.

For those of you killing it in your 9-5 job, with benefits and a reliable salary, you need to focus on how you’re spending your time outside the office. Your diversification is what you do in your “off-time”. Or, more accurately, making your “off-time” your “opportunity time”.

During the height of the Great Recession, U.S. News published an article outlining 10 Reasons to Have Multiple Income Streams. This was written at a time when the unemployment rate in the United States was soaring towards double-digits. There was genuine panic that the world was shifting in a way that would leave millions without a reliable source of income. Even today, the psychological effects of the Great Recession are still rippling their way through our daily lives.

The number one suggestion during this time was to start focusing on finding more ways to patch together an income. I still remember a dinner party I attended that year. I crossed paths with Robby Du Toit, the Founder of Fast Sale Today. He told me, “You know, my business was built on providing an exit strategy for distressed properties. Before the crash, that was less than 4% of the market. Today, that’s more than 50% of the market. People just don’t have back-up plans, besides pulling cash out of their homes. Property today has become the emergency fund of yesterday.”

It was a sobering thought. To think that millions of Americans didn’t have an emergency fund. If their primary source of income was lost, they could lose everything.

Key Takeaway: Use your leisure time to identify opportunities to earn more. Creating multiple income streams will save you from disaster if something goes wrong (which is a matter of when, not if). In addition, you need an emergency fund that can last up to 6 months in case total disaster strikes (illness, family emergency, etc.).

2. Defend Your Future Wealth

Aside from economic disaster, there are other things you need to think about in terms of building and protecting your wealth. As Benjamin Franklin once wrote, “In this world nothing can be said to be certain, except death and taxes.”

Tax liability is a critical part of building real-wealth. Take advantage of tax-deferred programs:

• Individual Retirement Accounts (IRA’s)
• 401(k)’s (preferably with employer matching)
• Government Bonds
• Exchange-Traded Funds (ETF’s) with lower portfolio turnovers.
• 529 Plans for Educational Purposes
• Incorporation of Business Entities to Provide Tax Advantages

If you’re going to follow the advice laid out in part 1 of this article, building a diversified income stream, you’ll need to meet with a tax professional, as well as a good attorney to discuss the benefits of structuring your income streams within a corporation.

It’s important to understand that many expenses incurred in the pursuit of new income streams can be tax-deductible. Every business, big or small, has a silent partner: Uncle Sam. Don’t let him take more of your hard-earned money that he has to. There’s a reason major corporations hire lobbyists. FactCheck.org reports: “As the New York Times and others have well documented, GE has employed a number of aggressive (and legal) strategies that have greatly reduced the company’s corporate tax burden.”

Key Takeaway: Think of yourself as a business, with multiple income streams and opportunities to cut-costs. Use every legal mean at your disposal to reduce tax liabilities and improve the legal protections of your wealth.

Las Vegas Market Second Quarter Report

The second quarter commercial real estate report for the Las Vegas area was released and it shows overall improvement and growth!  The commercial real estate market has been recovering from the recession for years and there might soon be a light at the end of the tunnel.  Read the major findings of the report in the article below from Yahoo! Finance.

Las Vegas Commercial Real Estate Markets End Second Quarter 2016 Strong — Job Growth Fuels Office Market Expansion

LAS VEGAS, NV–(Marketwired – Aug 29, 2016) – The Las Vegas office of Cushman & Wakefield/Commerce released its Q2, 2016 report, which details the office, industrial and retail market, economy and the state of commercial real estate in the Las Vegas area.

The Las Vegas economy is progressively improving as more than 22,000 jobs were added in a year-over-year basis. The unemployment rate in Las Vegas is still higher than the national average; however, it has decreased 0.9 percentage points since Q2, 2015 and these trends are expected to continue.

“Commercial real estate in the Las Vegas area continues the recovering process during the second quarter,” said Michael Dunn, market leader for the Las Vegas office of Cushman & Wakefield/Commerce. “The market remains active, the tightening of availability will linger as the limited supply of quality space continues to drop. Through this trend, we have seen job growth continue to increase. Nevada was ranked as third for job growth, which is a result of the increase of expansion as established companies grow and new companies moving into the area from around the country.”

Office Snapshot
Q2, 2016 marks the seventh consecutive quarter for the office market to see a positive absorption with an overall absorption of 68,000 square feet, and 235,778 square feet year-to-date. The West market showed the most positive absorption, while Henderson South market experienced the highest level of negative absorption. The total overall vacancy has continued to decline, and currently stands at 7.8 million square feet. Compared to Q1, 2016, vacancy rates decreased from 18.3 percent to 18.1 percent.

As rental rates increase slightly, and vacancy rates continue to decline, new construction will remain limited. The Las Vegas office market saw 7,894 square feet of completed buildings in Q2, 2016, a slight increase from zero square feet in the first quarter. The ongoing trend of tenants renewing at their current buildings and signing longer term leases, rather than moving locations has continued in this market. New construction is expected to remain very low for the next several years as developers want to wait to develop until the vacancy rate declines and rental rates increase enough to support development costs. Click here for the full report: http://bit.ly/2bltzYa

Industrial Snapshot
Q2 of 2016 has been reported as the eleventh consecutive quarter of positive absorption, with a total overall absorption of 455,327 square feet. The second quarter saw 12 speculative building projects. New buildings are under construction, Henderson had 163,000 square feet; the Southwest had 547,514 square feet and North Las Vegas had 886,126 square feet, totaling 1,596,640 square feet of speculative construction underway. The total overall vacancy did not change from 2016’s first quarter, and remained at 6.6 million vacant square feet. In addition to the speculative buildings mentioned above, Chinese-backed car company, Faraday Future, which began development on a 3 million square foot factory in North Las Vegas at the Apex Industrial Park.

Increasing land prices and labor costs in the industrial market will force developers to raise rental rates to justify new construction. For new mid-bay multi-tenant buildings to be constructed, rental rates will need to rise from the current average $0.58 monthly per square foot triple net (NNN) to approximately $0.70 monthly per square foot NNN to justify the cost for construction. Tenant demand should continue to remain positive during the rest of the year and vacancy rates are expected to remain consistent in the 6 percent range with supply and demand in relative balance. Click here for the full report:http://bit.ly/2aJIHNz

Retail Snapshot
For three consecutive quarters, vacancy rates remained the same but have decreased by 0.1 percent during each quarter of the first half of 2016.quarters. The overall vacancy rate in the Las Vegas retail market was at 7.8 percent at the end of the second quarter which was nearly a half percent decrease from the first quarter. The Downtown submarket continued to have the lowest vacancy rate, which stayed below 3 percent for the first half of 2016. Rental rates remained stable at $1.35 monthly per square foot NNN, which decreased slightly from the 2016 first quarter’s $1.36 monthly per square foot NNN.

The total overall positive absorption was near 460,000 square feet at the close of the second quarter. The second quarter of 2016 marked the third consecutive quarter of positive absorption, as well as increased activity for each quarter, which indicates market growth and stabilization. Ikea occupied its 351,000 square foot building which accounted for majority of positive absorption during the second quarter. Outside of Ikea’s absorption, the overall market absorbed 109,000 square feet. Overall absorption is expected to remain positive and vacancy rates should slowly decline and rental rates should slowly increase moving forward. Click here for the full report: http://bit.ly/2b8meLb

5 Questions Entrepreneurs Should Ask Before Investing in Commercial Real Estate

Is commercial real estate (CRE) a good investment for entrepreneurs? There’s no one-size-fits-all answer. While CRE can provide investors with better returns than residential properties (an average of six percent to 12 percent annually versus one percent to four percent in residential properties), they also require more of an initial cash outlay.
Entrepreneurs need to know the facts about commercial real estate before deciding whether it’s a good investment for them. Here are five things to consider.
What Are Your Goals?
This one is key to every financial decision, and it’s no less true of CRE. Are your goals to buy and hold for annual return? To buy and sell in a few years to realize profit? For each, how much return or profit are you seeking? Are you looking at CRE to enhance your tax picture? Do you want to own a single property? Redevelop a property for more future income? Own a portfolio of properties?
A disciplined plan needs this bedrock analysis of your own investment goals.

What Is the Outlook for the CRE Market?
The robustness of CRE real estate markets, like residential real estate, varies greatly by region and city in the US. Some places, such as Las Vegas, have suffered downturns both in rents and in vacancies. Others, such as the San Francisco Bay Area, have high rents and few vacancies. The fortunes of commercial real estate often reflect those of the overall economy in the area. Do research to determine the current and past economic performance, as well as the forecast for the future.
What Are Your Investment Parameters?
While CRE might offer a higher annual return, it also requires a higher annual investment. Robust real estate markets might offer low vacancy rates, but they are also more likely to be higher-priced. Assess how much of an investment you are prepared to make. How much of a return are you aiming for?
The answers to these questions will tell you the number of buildings, type and market that suit your investment profile.
What Type of CRE Do You Want to Invest In?
CRE covers a wide range of property types. Office parks, warehouses, industrial buildings and malls are all CRE properties. So are large apartment buildings and mixed-use buildings that combine, say, offices with a residential tenant. Each of these types have a profile for the amount of involvement required of an investor and the investment picture. There are also CRE Real Estate Investment Trusts (REITs), which allow investors to purchase a portfolio of properties managed by asset managers. In this case, investors are not themselves managers of the CRE and do not directly engage with the physical property.
What Are the Financial Parameters of Potential Properties?
There is no substitute for a detailed financial analysis of the properties you are thinking about. At a minimum, you should know net income (income less expenses), expected return on investment (the cash flow less any investment costs), the cash flow (net income minus any debt financing payments), the capitalization rate, the total return on investment (cash flow, accrual of equity, appreciation of the property and taxes), and the cash-on-cash return.