Author Archives: Mehdi Radi

Find a Good Real Estate Deal In 10 Minutes

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Dear Reader,

For some, invest in real estate:

Is too expensive

Takes too long

And good deals are reserved for insiders.

So I propose to do a little exercise. Find a good deal in less than 10 minutes:

Cheap

Easy (ie without work and already rented)

And all alone on the Internet

Let’s see if it’s possible…It is 03:30 am when I write these lines.

Let’s go.

I go to a classifieds site. I’m looking for real estate. I must have finished my research at 03:40 am. Then I will write the result below.

03:39 am. Here is the result :

Property 1: apartment

The first to be released is an apartment of 63 m2 renovated (the photos are pretty), with a garden, rented 545 euros per month (no charges), and for sale 45,000 euros to discuss.

Property tax: 500 euros.

The net profitability before negotiation is therefore:

(((545 x 12) – 500) / 45,000) x 100 = 13.40%.

For me, that remains to be studied, but by making an offer at 37,500 euros, for example, profitability climbs to more than 16%. For a loan including notary fees, the monthly payment over 20 years would be 202 euros for a rent of 545 euros…

Or more than 300 euros of profit per month, even after deduction of the property tax. But the apartment is located 7 minutes from a city of 40,000 inhabitants located in the Gard.

And I know some readers will say that it’s too small, that there might be few requests. But when we see that even by dividing the rent in half, the property is self-financing…

However, let’s see if there is something else.

Property 2: a lot of garages

Then I find it… well! A lot of garages (I love garages).

Lot of 18 garages located just next to Rouen. They are all rented, 50 euros per month. Property tax, 1,200 euros. Sale price 120,000 euros. The whole is tarred and in very good condition. Profitability:

(((50 x 12 x 18) – 1,200) / 120,000) x 100 = 8%.

For a person who has managed to put 9,000 euros aside to pay the notary fees, the credit over 20 years will be 607 euros for a rent of 800 euros, property tax deducted.

So a lot of garages that pays for itself and that generates 200 euros of profit per month. Knowing that for garages, there is almost never any work, even less clogged toilets …

Over the years, the rents will increase, the 200 euros will become 250 then 300. Yes, even in the event of a temporary crisis. And the day the credit ends, it will be at least 800 euros per month that the buyer will cash.

A great retreat for something found in less than 5 minutes.

Not?

Property 3: garage

I can already hear readers complaining: “yes, but I live in Paris …”.

Large boxable parking space (that is to say, it is possible to put concrete blocks and a door to make it a “closed” property and thus increase its value), rented 150 euros per month, for sale 17,000 euros in Paris, 19th arrondissement.

There is no detail of charges or property tax; however, in Paris, the property tax is very low. Here, it’s worth making a phone call to find out and make an offer.

We are still at more than 10.50% profitability in Paris. How much is booklet A already? 0.75%. All is said…

Property 4: commercial premises

Any last for the road?

Commercial premises in Corbeil-Essonnes. Leased for three years 565 euros excluding charges. Property tax payable by the tenant (as is very often the case for commercial premises).

Sale price 82,000 euros. Profitability: 8.50% net. Not a bad deal knowing that for commercial premises, the work is often, like the property tax, chargeable to the tenant.

However, for this room, I would make an offer well below. But, as it stands, this property is largely self-financing.

Here! I found these four properties in 10 minutes and in a few clicks. So imagine what you can find by doing real research.

Of course, you have to know the place, check the numbers, ensure demand, prices per square meter. But I want to show some people who say right away that everything is impossible that, no, things are possible.

There will always be pessimists, spoilers. But someone who knows their sector and who is on the lookout for a good deal will find it sooner or later. Do not listen to those who never do anything. Train, watch for the right deal, then go for it. What do you risk after all?

Once you have succeeded, the same people will tell you that “you were lucky”, that “now this is no longer possible”. It is possible, and it always has been. But at all times, there are people who do nothing and spend their time discouraging others.

To start, the first step is to surround yourself with positive people by becoming a member of vave.io.

It is possible, and it always has been. But at all times, there are people who do nothing and spend their time discouraging others.

To start, the first step is to surround yourself with positive people by becoming a member of Vave, company which I founded and which would have saved me years if it had existed in my early days.

CLICK HERE to discover the presentation page.

Real estate investment open to all thanks to Private Clubs Deals !?

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Certain real estate investments are reserved for “accredited investors”, traditional crowdfunding platforms are responsible for auditing potential investors beforehand, they have also obtained the right to promote their projects in a public manner, including through their websites.

A Real Estate Club Deal is a collective investment bringing together a limited number of investors – accredited or not – to participate in several real estate promotion programs.

This makes it possible to invest in assets that would be inaccessible to each member individually, but also to spread the risks of investments and to diversify their portfolio.

After a simple registration on Vave and access to the private network of a Club Deals, you can choose to invest in one or more opportunities.

Opening up to the secondary market

The resale of over-the-counter shares remains complicated in the world of real estate crowdfunding or that of REITs (Real Estate Investment Trusts).

By promoting the Club Deals and their private nature, the platforms ensure flexibility at the international level, particularly in terms of prospecting new members.

Note that the real estate opportunity cannot be the subject of the various marketing campaigns but the platform or certain Clubs Deals.

5 simple steps to achieve Financial Freedom in 2020

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No longer being dependent on a job is increasingly essential and for good reason, employment as we knew it is facing a major revolution.

The year 2020 is starting on a high note, unmatched unemployment on a global scale, a major financial crisis, companies of all sizes filing for bankruptcy; in short, an unprecedented upheaval in our lifestyles, be it economic, social or political.

Applying these 5 steps one by one and correctly is generating income in less than two months, it is now more than ever possible to create value in a short time:

1. Build a network

You can have the most beautiful idea, the most beautiful presentation or the most beautiful logo, excellent for the ego but not for the business at all ! Nothing will be worth your community and its attachment to what you offer.

You don’t need to have 1 Million Followers to start, building a relationship of trust with 2 or 3 people will allow you to have a relationship base on which you can draw.

Knowing how to surround yourself is creating relationships. Building relationships is the basis of financial freedom. As the famous adage reminds us: “Alone we go faster, with many we go further.”

You are just a few clicks away from joining online communities. Some platforms like Linkedin or Vave put you in touch with your first partners.

2. Create your business and prepare your tax

Starting a business is a project that requires preparation and reflection: as much on yourself as on the project itself.

To help you, we have compiled the main steps in an infographic as well as in a guide that you can download for free. This article will bring you several tips to give you every chance of succeeding in your entrepreneurial project.

3. Generate a continuous rent on a robust and rather stable market like real estate

Real estate is an investment that has built many fortunes. Everyone who has succeeded has invested all or part of their money in it at some point. The advantage of such a placement is that it meets a timeless need: that of housing.

There are many ways to invest in real estate. The first is to buy housing to rent it in the conventional way. If this may seem inaccessible with your savings alone, this project is possible thanks to the leverage of bank credit.

If your future rent covers the monthly payment of the loan with the charges and it respects your debt capacity, there is no reason for the bank to refuse you. You can also choose to buy shares in specialized companies, called SCPI (Civilian Companies for Real Estate Investment).

They are administered by a management office which is responsible for selecting the goods to buy, renting and maintaining them. A share of the rents is then paid back to each member, in proportion to the shares they hold.

4. Diversify by investing in the stock market

Financial products are good solutions for placing your money on the condition of being more vigilant. With the risk of a looming financial crisis, it is better to be cautious and invest in secure media such as funds in euros.

Buying stocks is not the best choice at the moment. Better to wait until prices go down, bet on safe stocks and consider a long-term investment to make a profit on resale. Investing in the stock market requires having solid knowledge in this area and training beforehand.

5. Duplicate

To work by duplication is to work by copying, by mimicking the opportunity that you present to your existing network or new members. Yes, I know, we have always been asked in school not to copy …

Here, it is not only allowed but also recommended, you will be able to give free rein to your primary instincts, only happiness!

Conditions for duplicating:

Relearn : you will first have to forget everything you have learned and just get into the habit of following. It’s more complicated than it seems! So, we press the “reset” button, we start on a blank page and the prospects will multiply.
Duplication should be kept simple. If you do sharp and complicated things, you will look cool. Your correspondents should say to themselves “with a little work, what he does I can do”. Only then will you make your team grow.

Parking Spaces and Blockchain: a Hidden Gold Rush?

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The real estate market has dynamically evolved in the past few decades. From new tools to alternative investments, investors are constantly on the lookout for the next big thing in the industry. In this article, we have discussed one such evolving method that has been gaining huge popularity in the past few years – parking spaces.

Investments in Parking Spaces

Urbanization is one phenomenon that is typically common in almost any country. The growing population in urban cities has raised the need for subsequent infrastructure for residential and commercial purposes. In addition to this, an increase in the number of vehicles has further sparked the need for parking spaces.

Apart from the growing demand, various other factors make this particular real estate asset an attractive opportunity. This includes an undiscovered and untapped market that requires relatively less capital in comparison to other real estate investments. The International Parking Institute reveals that the parking industry generates more than $20 billion in revenue each year.
A stable and long-term growth, low-capital requirements, reduced operating costs, and a diversified portfolio are some of the benefits to investments in parking space.

Tokenization of Parking Spaces

New innovations on the market have made investments in parking spaces more simple than ever before. Tokenization allows any individual to invest in shares of parking spaces and gain fractional ownership of a piece of real estate. Any investor can invest with capital requirements as low as $10.

The concept of blockchain-empowered tokenization of real estate assets is gaining significant popularity among investors. High liquidity, ease in buying and selling of digital tokens, and a significant return on investments are some of the benefits to tokenizing an asset like parking spaces.
The trend of tokenizing parking spaces has already generated buzz. In 2018, a small parking garage located in technology park Ljubljana was the first space to be tokenized on blockchain. The tokenized parking space was funded by 19 different investors that 8 countries in a funding process that lasted 16 days. Each investor holds a share in the tokenized garage that is recorded and distributed through security tokens.

Crowdfunding Parking Spaces

Real estate investments have never been more accessible if an investor knows where exactly to look. Crowdfunding allows individuals to participate in a funding process, wherein each investor can gain a share in any real estate property without much hassle.

Crowdfunding for parking spaces facilitates any investor to leverage the benefits of returns and low-maintenance without investing huge capital. The tool renders you a method to interact with investors sharing the same ideologies on a common platform. Moreover, it also allows an investor to diversify their investment portfolio by staking a claim in parking spaces, that typically yield greater returns.

Moreover, crowdfunding allows individuals to seek global investors. The parking space investments are not bound by geographical locations and they can be made in any part across the globe through a crowdfunding platform.

Blockchain Empowered Crowdfunding

Blockchain technology has made the art of crowdfunding more innovative and frictionless than ever before. While crowdfunding enables investors to own shares, blockchain further facilitates raising those shares in the form of digital tokens.

These digital tokens, that are recorded on the blockchain, represent the underlying share of the individual in that particular asset. Using tokenization, investors can also rent out parking space and earn income after their share in the property. Furthermore, blockchain also enables a globalized distribution, wherein tokens can be bought or sold on a secondary market. This makes investments in real estate as simple as that in company stocks.

In addition to this, blockchain empowered crowdfunding allows investors to diversify their portfolio by reducing the minimum capital investments needed in different assets. An investor can choose to invest in parking spaces and a piece of residential property with a minimum capital amount of as low as $500. It also reduces the high barriers to investments in any property of the real estate. An individual can leverage the high returns of a real estate property with a low barrier of minimal investment.

Blockchain tokenization also helps with instant liquidity to real estate assets as they can be bought and sold to an international audience.

Final Words

Blockchain and crowdfunding have made investing in real estate accessible, easy, and smooth. Parking space is a relatively untapped market that promises a huge growth with an increase in the levels of urbanization. Using tools of tokenization and crowdfunding, any individual can invest in parking space without much hassle of maintenance and operations and further get a sound return on the passive investment.

How Will Increasing Debt Levels Impact Life Insurance

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Debt Levels are Rising at an Alarming Rate

Debt levels are grappling the world by storm. All across the globe, the debt levels are rising at an alarming rate. The student debt has been a topic of debate over the past several years and now has surpassed trillions of dollars. Moreover, it would take years to clear off the outstanding student loan debts while the other loans would keep piling up on the top of it.

Home is one of the most pricey assets that you will indulge in your life term and that essentially comes with massive home loans. The modern world of today is made up of luxuries which further results with an increase in debt with car loans, credit cards, mortgages, and more.

Moreover, compared to the earlier generations, retirement benefits have been substantially reduced. Employees no longer have the same health benefits after retirement as they used to. They are left to manage their 401(k) plans on their own and further save for retirement. Furthermore, the cost of living has also increased year by year.

Leaving Debts to Loved Ones

The key factor, that many people seem to miss, is that your debt does not essentially mean ‘your debt’. Any debt is co-signed by a member of your family or a loved one. Your student loan debt might be co-signed by your parents and your home loan might be co-signed by your wife. In the advent of your death, that debt gets passed on to your co-signed, your loved ones.

This has begun a cycle of carrying debt into retirement and leaving the huge piles of debt to the loved ones in the advent of early death.

The situation is dire when the sole earning member of the household suddenly passes away. This leaves the spouse and the children with mounting house loans and no retirement savings. The entire family household is left with mounting bills and with no possible outcome.

Such key factors have made getting a life and health insurance all the more necessary.

The Importance of Life Insurance

The popular belief that life insurance must be obtained until after your debts are cleared is absolutely untrue, as we saw from the above example. Contrary to that belief, life insurance at early stages in life would mean paying less and further protecting you and your family.

Here are some of the reasons why buying a life insurance policy can be the answer to mounting debt in today’s modern world, especially at an early age.

Lock in Premiums at Lower Rates

Any life insurance policy would demand higher premiums as you age. Moreover, you will have to pay more with rising health problems in your older age like blood pressure.

The popular policy AAA life insurance rates for a person in the mid-’30s have a premium ranging anywhere near $30 while the same policy has a premium of nearly $200 for a person in the mid-’60s. Locking in your life insurance at an early age would have lower rates and you can avoid paying higher premiums.

Paying off Mortgage Debts

One of the largest debt that individual encounters in the entire life is the mortgage or the home debt. It is a terrifying factor is that heap of mortgage loan is left or passed on to a loved member of the family.

Life insurance can provide protection to your loved ones by paying off the mortgage loan in the event of death. It can provide long-term security to your family members and remove the financial burden off their shoulders.
Modern innovations in the real estate space have made it relatively easier to keep yourself off the real estate asset loans. Through crowdfunded real estate and tokenization of real estate properties, it has become relatively easier to extract liquidity from the illiquid real estate assets.

Aging Parents/ Sole Earning Member

As discussed before, your debt amount passes on to your co-signed members in the loan which can be your parents or your spouse.

Leaving the huge amount of loans to be cleared by aging parents or spouse is a substantial financial burden. Furthermore, the situation gets worse if you are the sole bread earner in the family. Having a life insurance policy can cover the debt as well as ensure that your loved ones are taken care of to an extent.

Borrowing Money From Life Insurance Policy

In addition to all the other benefits, another advantage to having an insurance policy is that it can act as a source in the case of any emergency. In the case of a financial crisis in the family, the insurance policy can act as a safe haven to borrow money from.

However, also keep in mind that the funds should only be used in the case of an emergency or immediate need and should not be looked as a source for accommodating the growing lifestyle.

Real Estate Club Deals: What is it, Pros & Cons

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The term “club deal” is a very general term to designate investors who come together to pool their investments. There are therefore a multitude of club deal variations.

For example, you can partner with 5 friends and form a “club deal” that will invest in real estate and/or the financial markets. In the same way, you can associate with 5 strangers in a club deal proposed and managed by a management company.

To be precise, you will be able to invest in real estate and on the financial markets by pooling your funds with those of other investors to acquire higher-value, often more profitable, assets.

It is therefore not an investment vehicle per se like the SCPI or the OPCI, but rather an investment method based on the pooling of investors’ capital. Unlike SCPIs, or OPCIs, which bring together hundreds or even thousands of investors, club deals are made up of 2 to a few dozen private investors and are not necessarily marketed and managed by management companies.

However, the entry ticket is much higher than for collective investments. With a minimum investment often greater than 150,000 euros, club deals are not open to all investors but present attractive returns, often between 6 and 10% depending on the strategy of the club and/or the management company. .

Today, there are mainly two types of club deals: club deals formed by individuals and club deals offered by management companies.

Club deal: a Special Way

The Operation of Club Deals is Special.

Investors will most often be associated with an SCI or SAS. Together, you will invest in different goods or on different financial support depending on the arrangements made by the associates when the club was created and throughout its life. For this, your company will use the equity made available by investors and may contract if necessary a credit that will be added to the capital provided by investors.

Debt is Created To Take Advantage of the Credit Leverage

In fact, taking out a loan most often increases the profitability of the investment. However, you will have to agree with all the partners on the club strategy and/or choose a club that has a strategy in line with your objectives.

Club Deal: Opportunities Usually Reserved for Institutional Investors

Club deals make it possible to invest in corporate real estate (offices, shops, activities, logistics, hotels, residential, etc.) and on the financial markets. Commercial real estate is generally more profitable than conventional real estate. However, prices are also significantly higher.

Therefore, this market is usually reserved for institutional investors. Investing through a club deal in this context, therefore, represents a real opportunity to integrate institutional quality assets into your portfolio.

Club deal: Pooling and Diversification

Security is reinforced by the pooling and diversification of the real estate and financial heritage. Indeed, according to the strategy of the club, you will invest in several goods of different natures. The risks will, therefore, be much more diluted than in a traditional real estate investment relating to a single property, this diversification is double since you will also diversify your financial investments.

In addition, the pooling of investment also makes it possible to pool risks, and therefore ultimately, to reduce them for each real estate investor.

Finally, in a club deal, between associates, you will be able to decide on internal measures allowing to reduce the risks (Reserve in part of the capital, investment ceilings, Progressive investment and all the measures which you will consider necessary to reduce the risks …).

Real Estate Club Deal: Risks

Despite the measures put in place to reduce risks, you still remain exposed to risks linked to real estate investment and risks linked to the financial markets. Among the risks that can materialize, you will find in particular:

The fall in the value of your property (risk of capital loss)
Rental vacancy
Risks related to non-payment
Investment management errors
The risks inherent in the association
Falling financial markets
Risks linked to the psychology of financial markets
A default by the issuer of your securities
Liquidity risk