Monthly Archives: April 2012

Binary options trading guide – Create a strategy

Successful trading is derived from a sound trading strategy, and this requires no amplification or proof. The strategy in the trading market would cover in its ambit the time when a trader would take a certain position and for how long would the trader hold that position. Before this, the trader would already have formulated why the particular position is favorable in the financial sense. The strategy would also cater for the entry level, exit level as well as the money to be invested into the entire scheme. The strategy could be a solid one with no changes allowed or a flexible one where the trader would apply mid-course changes, depending on the situation at hand.

One can formulate a strategy that takes multiple assets into account and this is where strategies employed in options trading are seen the most. The trader takes on multiple positions thus initiating risk for a particular view.

Binary options analysis a key to formulating a strategy

Whatever be the case or asset or even the number of assets that the trader is taking in, the strategy being formed has to be based on thorough analysis. The analysis would study thread bear how the particular or group of assets behave in a given time frame. The reasons for their change in behavior and how that can be predicted is to form the strategy basics. Any information that one gets on this aspect would be the building block of one’s strategy and the first steps in their binary options training guide.

How to analyze a binary options strategy

The overall scenario in binary options trading does not depend on the amount of movement of a particular asset; rather it depends on just the direction. The return also is dependant not on the quantum of movement but just the direction of movement. In binary options trading therefore, the strategy is analyzed by the percentage of return received rather than the sum total amount of return received from the deals.

To explain this aspect by way of an example we could take two strategies which were applied to 100 deals. The first strategy returned 55 wins and 45 losing deals. The winning deals had 1 percent returns and the losing one’s cost the trader 2 percent.

In the second strategy the numbers of wins were 45 and the losing ones were 55, but the winning deals returned 5 percent and the losses took away 1 percent.

Anyone analyzing these two strategies in the conventional trading market would always opt for the second strategy where the number of wins were less but the amount of returns were more in the wins. In case of analyzing a binary options strategy however, it would be the first option that would be more advantageous. The percentage returned in case of a win or loss has no relevance in binary options. It is just the number of times won or number of times lost that holds relevance.

Binary options demo account – to try out one’s strategy

It is best to open a binary options demo account at any of the number of sites where such a feature is available. One could formulate one’s strategy and implement the same on such a site and test it out. The sites that one gets such features in would have live data and only the real time investment aspect would be missing.

A good and solid strategy would help in the long run for any binary options trader. A well contemplated strategy is one of the key factors for a successful binary options trader.

Want High Growth Plus High Rental Returns? The Answer May be Outside

A small property on a large block can be an investor’s dream. It can deliver strong capital growth as well as the opportunity to add value through developing the property in the future. But while a large block can help an investor build wealth, tenants are typically unwilling to pay more to live on a large block, resulting in lower rental yields for this type of property.

So, is there a way to make the outdoor space more valuable to tenants and therefore increase rental returns? I believe so. Although the size and quality of a property’s indoor space plays a large role in determining what tenants are willing to pay, the outdoor space offers excellent opportunities to boost the rental value.

In fact, recent research and trends suggest that desirable outdoor spaces are one of the few characteristics that a tenant would be willing to pay more for. And in a place like Perth with long, hot summers and alfresco lifestyle, outdoor space is probably more important than in any other city around Australia.

But not all spaces are created equal. Properties with large outdoor areas can put off tenants because of the effort and costs associate with maintaining the outdoor area. Some tenants might discount a property entirely because of a high-maintenance outdoor area.

What’s clear is that tenants don’t want to open the back door to a sparse landscape of endless grass, an old Hills Hoist, and meters of bland fencing. Nor do they appreciate an overgrown jungle. The truth is many of them aren’t motivated to look after an outdoor area that they just don’t use.
Ads by Google

Unfortunately though, this scenario is all too common as many investors place little importance on the outdoor areas of their investment property, focusing instead on the presentation of the interior. When the outdoor spaces do receive attention, it is usually the front garden that gets most of it. While this is valuable for street appeal, it might not be enough for tenants if the back area is poor and unusable.

So, what do tenants want in an outdoor area and how can you make your investment property more desirable to them (which will improve your rental yield and help you rent your property faster)?

What tenants ultimately want is an area where they can entertain guests, a relaxing environment where they can unwind after work, and green gardens that are attractive but require minimal maintenance.

Here are some key features and ideas you may like to consider for your property:

BBQ area

Just about every tenant would want a space where they can place a table to entertain guests by the BBQ. A simple paved area or small deck would be ideal, or even a gravel area with stepping stone pavers would do. If there’s existing ugly concrete, consider painting it or laying do-it-yourself decking tiles over the top for an inexpensive update.

Sun coverage

To make the space more usable and complete it as an ‘outdoor room’, consider some sort of shade structure. This could be as expensive as a covered pergola or as cheap as an open pergola with a vine or some shade sails.

Hardy plants

A bit of greenery will never go astray, but choose plants that are hardy, slow growing and need virtually no maintenance. Visit markets and discount nurseries to pick up some bargains and make your dollar go further. There’s no need to go overboard; using plants as borders around hard areas (like paving) and in a few feature beds is all that’s necessary.

Partitioning

Sometimes the size of the yard can make it too big a job to improve and too expensive. In this case, consider partitioning or screening off a part of the yard and instead focus on just improving a smaller, more usable area nearby the house.

Of course, when it comes to improving the outdoor space of your property, the exact specifications of what is desired will vary from area to area. For example, properties in family areas may need to have grass for the kids, while in other areas tenants may prefer no grass at all but prefer a large shed with plenty of storage. It’s worth doing some research by looking at other competitive properties on the rental market to see what you’re up against and what the outdoor areas are like of properties that appear to be most in demand.

Don’t forget that improving the outdoor spaces isn’t just about attracting tenants; it also adds value to your property. For buy-and-hold investors, it can be worth spending a bit more on the outdoor areas. For those looking to redevelop in the near future, it doesn’t make sense to spend too much if it’s only going to be torn apart, however some small, inexpensive changes can make the world of difference for the short term.

Three Alternate Financing Options for Hotel Properties

The commercial mortgage industry is a wide field that includes many types of real estate property. Hotel financing is one of the most complicated sectors of this industry. Lenders that deal with hotel properties base their programs and guidelines on various factors. Some of these include whether the hotel real estate is flagged or un-flagged, the size of the loan, age of the property, total population of the local area, STAR ratings and past financial performance.

A hotel commercial mortgage can be obtained for buying a hotel that’s already in business. It can also be used to building a new hotel, refurbishing a hotel, even refinancing a hotel for a better mortgage interest rate. This is especially more helpful for owner operators of hotel properties that are hoping to decrease their monthly mortgage payments with the new SBA refinance program in order to make higher profits. With the current mortgage interest rates being at all-time lows, this is the perfect time for hotel owners to take advantage of refinancing options that are now available to them. Here are two of these options:
Quick Close Private Financing

This option is available for hotel commercial property owners who are hoping to obtain funding in a matter of days. This financing option is available for many types of situations. It can help you get the cash you need to purchase land to build a hotel, or develop the land you already own. This allows you to make needed improvements and renovations to your hotel to make it more attractive and comfortable for your guests.

In today’s real estate market, many hotel owners are using quick close private financing to save their hotels from foreclosure. This gives them a better option than filing bankruptcy to keep their properties. Another use of this financing option is to pay off their mortgage at discount and then refinance it with a conventional loan. A lot of hotel and motel properties are underwater and many banks are willing to take these assets off of their books via offering discount to the owners. Private financing and or bridge loans are the most viable options for these types pay offs. By stabilizing their hotel operational and financials, borrowers can refinance their loans to a long term conventional mortgage thus save on total balance and interest rate.
Stated Income Hotel Commercial Loan

This option is available for most hotels, both medium and large in size. It allows for hospitality and lodging properties to be financed or refinanced based on the stated income of the borrower. Stated income hotel financing programs allow you to borrow for or against a property with the minimal amount of required income documents. This makes it much easier, faster and more reliable than traditional lender requirements.

With stated income programs, a hotel loan that was denied by banks can still be possible. Even if you were denied because you didn’t have all of the required documents to prove your income or because of credit issues, you can still get financing with stated income programs. Of course with this program, the rates are much higher and terms are shorter. Lenders underwrite the loan based on collateral and equity of the property more than anything else.

Non Bank SBA 504 Loans

SBA loans are used for owner operator of hotel properties and are one of the few programs available for many smaller lodging properties throughout the United States. However, many of these smaller mom and pop motel and hotel operators don’t have the continuous cash flow that is necessary to service their debt for many SBA lenders. To solve this challenge, many smaller lending firms pool investment money to finance these types of financially challenged properties. Since they are not regulated like banks, these lenders can finance with debt service as low as 1:1. What that means is that your property’s net income should break even with your loan payment. The rates on the first trust deed are slightly higher by combining it with the CDC’s second trust deed, the rates are actually very reasonable.