E-Mini Trading: How Many Contracts and How Often Should You Trade?

This is a very difficult question to answer properly, because the response is dependent upon an e-mini traders experience and goals. Obviously, a new trader should trade a single contract until he or she develops the competence and confidence to execute trades in a consistently profitable manner. I find, on the other hand, many experienced traders tend to over trade their futures trading account and find themselves, at times, at wits end.

I am an e-mini trader, and it is my career; so I take trading seriously. My game plan is to take 5 to 7 e-mini set-ups during the daily trading session. I feel I need this many set-ups to earn the kind of income I desire. That being said, there are days when 5 to 7 opportunities do not arise and I am forced to settle for fewer opportunities. As you might've guessed, there are also days when more setups occur and I take a few more setups than seven. Still, the average falls in the 5 - 7 range on a fairly consistent basis. I am comfortable with this number because it provides me ample opportunity to earn a comfortable income.

No trader should risk more than 2 - 3% of his or her e-mini futures account balance on a single set up. In fact, less is better. Generally speaking, I trade more like 1.5% of my account balance, which is usually 5 to 10 YM contracts. It is not uncommon for me to observe traders, especially newer ones, trade five or 10 YM contracts on a $7500 account. This is a recipe for disaster, as trading at this level falls into the range of over trading. Of course, the amount you risk is in a direct relationship with the stop/loss levels a trader chooses. Since the YM can range quite a bit I tend to trade wider stops than most people, though I have mental stops in mind that are nowhere near the stop/loss I set on my DOM. I consider my stop/loss to be an emergency stop/loss, and tend to trade my mental stop losses with discipline and accuracy.

I generally start with a smaller number of e-mini contracts and tried to gauge the mood of the market; if it is trending consistently I am more comfortable with a larger contract number than trading a choppy market. In a previous article, I mentioned I enjoyed channel trading and have some success with channel trading technique under certain circumstances, and will trade slightly higher contract numbers if they channel is consistently moving off from the high point of the channel to the low point of the channel.

I suppose the most important aspect of this article is relatively simple; most people tend to over trade and trade too many contracts. It is far easier to trade a lesser number of contracts in a more expeditious fashion, as opposed to taking low probability trades and hoping for the best. I currently have one student who averages 26 trades per day; this boggles my mind, as I don't generally see 26 potential setups, good or bad, during an average trading session. He would be far better served by limiting his trading numbers and being more selective in the setups he chooses to initiate trades.

In summary, I have stated that many traders tend to over trade their accounts by trading too often and with too many contracts. I have given some parameters for wise money management; never risk more than 2 - 3% of your futures account balance on a given trade, even less is better. Finally, for most people I believe that 5 to 7 trades is an adequate number of trades on a given day. There may be days when you do not have enough high probability setups to make 5 to 7 e-mini trades, and there may be days when you have the opportunity to trade several more times than 5 - 7 times per day. The important thing is to have a plan for trading and money management and stick with it. If you're trading for a living you need to make enough trades to give yourself a chance to earn a living. On the other hand, trading too much, or over trading, will limit your ability to earn a good living; but your broker will certainly love you as you pad his account with your over trading.

Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here [http://eminitradingprofessorsystem.com].

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Resilient Individuals and E-Mini Trading

I'm sure we all know individuals who breakdown and quit when a task becomes too difficult. To be sure, after an individual deems a task too difficult they are usually hesitant to retry that particular task again. In short, they shy away from tasks that have proven difficult in the past. If you read some of the popular texts on the psychological aspects of trading you'll find a litany of desirable traits that each individual ought to possess. I get a real chuckle out of that; if I had a personality that contained all those traits I would be designing rocket ships, not e-mini trading.

No, and 30 years I've never been able to completely disassociate my emotions from my trading; the best I have been able to do is realize what emotion I am experiencing and not act in a rash fashion based on that emotion. One popular book suggests that you play soothing music while trading. I don't really like to sit in a quiet room listening to soothing music while staring at 8 screens depicting two forces (bulls and bears) and constant battle. To make matters worse, I can't stand soothing music and would prefer to listen to Nine Inch Nails at maximum decibel tolerance. Yes, I know that I am a bit touched; but I can trade.

There is however, one tangible that cannot be measured but can be readily observed. Not many people have resiliency as a predominant trait in their life. In my world, resiliency is the key to trading success.

If there is one individual in this world that I will never quit on it is the guy or girl who refuses to give up and keeps working and working towards a very difficult goal. It's a rare thing to find a trader who is willing to be repeatedly dashed down the rocks and tormented by the market and still has a smile at the end of every day and can't wait for the next day's trading. Give me five individuals who are resilient and you have the core of a dynamic trading group.

To go a step further, it is my belief that in order to succeed in e-mini trading you must possess a premium amount of resiliency. I don't waste my time with all the psychological mumbo-jumbo that you can find and any one of 20 books on trading psychology. Bad days cannot turn into bad weeks and then bad months. Every trade to a resilient trader is a new and exciting adventure that begs to produce a profitable trade, hopefully one of some substance. You can't teach resiliency, but it's easy to spot individuals who are lacking in resiliency. They give up easy. They can't learn the material. They rationalize their losing trades. They fail to correct and proper trading technique. These individuals are not resilient and generally do not succeed. I've been wrong once or twice over the last decade, but a highly resilient individual is the guy/gal that I am looking for to trade. If you're the kind of guy/gal who loses and then wants to take their ball and go home, you better stick with your day job because learning to trade is no bowl of cherries and can be frustrating to the point of near insanity.

Resiliency. It's hard to put define a resilient person but I know them when I see them and I seek them out because resiliency is the stuff that tends to know where off on two other people. That's a good thing.

Would you like to start earning 300% every week? So would I... yet you see this type of hype on many sites these days. I don't promise astronomical returns, but 25 years of Wall Street trading experience has helped churn out solid e-mini traders for 5 years. Come see me trade. Real trading doesn't lie. Click here for a free visit to my trading room and see for yourself.

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Forex Managed Accounts Investing Systems - 6 Reasons You Can Profit

The Forex, or foreign currency exchange market, is the forum which all individual investors, banks and financial institutions go through to buy and sell currencies to each other. Of course, the basis for every transaction is that the buyer believes the price is going up and the seller believes it is going down (within some period of time). And, it is possible for both a buyer and a seller to wisely profit from the same transaction if they have different investment time horizons on which they are trading.

Still, it is impossible for any individual or corporation, no matter how large or how smart, to predict the amount, direction or timing of future price changes for any given currency in this extremely volatile market. This is why most of them rely on Forex managed accounts investing systems of some sort to help them manage their trades. Until recently, these systems have not been available to the individual investor because they are just too costly. Now, however, world-class foreign currency exchange managed account investing systems - or robots - are available to the average investor who has no technical or financial skills.

Here are 6 reasons you can profit from using a Forex managed investment robot:

1. Forex robots let you trade on the live market - one with $4 trillion in daily trades

Forex robots are simply software products you install on your own computer than monitor and signal trades to your broker - automatically. The best robots available today let individual investors get in on trades happening in real-time, in the live market. And, the market is enormous, with about $4 trillion in trades going on each day. That spells endless opportunity to make huge profits for individual investors.

2. With managed Forex investing system, you pay no commissions

With stock trading, you need to pay both commissions and "spread" (the difference between the transaction price and the amount you actually invest when you make a purchase). However, with managed Forex investing systems, you pay only spread.

3. There is no minimum account size to start using them

When you set up and start using a Forex trade system, you will be guided through the process of registering with a broker. Many brokers allow you to start trading with as little as $1. In other words, there is no minimum amount you need in your account in order to start trading.

4. You can trade 24/5, and anybody can do it

Forex trading is a 24/5 affair (24 hours/day, 5 days/week). That means your system can be working to make money for you all day, every day. There are even ways to set it up whereby it works on a remote server (hosted by someone else), so there is no need to leave your computer on all day and night if you want to go that route. And, what's more, anybody can set up and operate a Forex robot. In fact, if you have a computer with Internet access and can understand simple instructions then you, too, can do this.

5. You can profit from the market going up or down

When trading in the foreign currency exchange market, you can profit from the prices of the currency you are trading whether they are going up or down - you do not have to care which way the market goes. And, unlike with the U.S. stock market, you do not have to wait for an up-tick for shorting!

6. You can back-test before going live so that you can test the systems' effectiveness

When you first get your robot set up, you can actually back-test it to learn how it works and to see for yourself how accurate and effective it is. Back-testing is the ability to have the system run itself in a non-live environment based upon historical data. This lets you see how it would have performed if it were trading for you "live" at that time. Once you are comfortable with system, you just switch over to live mode.

The foreign currency exchange market is an exciting, very lucrative market, and now there is no excuse for even individual investors to profit from it.

Forex managed accounts investing has never been so accessible to the non-techie, non-financial investor as it is now. Check out how you can get started right away at: [http://www.forex-profit-machine.com/]

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Forex Software - How to Increase Your Investment Return to 3% a Month

We are doing our best to get solid feedback from average people who have a few bucks sitting around. While this is not a new concept at all, and we have been using it for ourselves for a year with 3% monthly interest gain per month results, and we feel safe and secure at the same time, it is only now we can invite others to see what we do and give them a chance to duplicate us.

First, quickly, we realized that keeping our money in Banks was like losing the money. Inflation over the past ten years at 2.89% per year average compounding is 33% loss. The bank rate currently at .95%, or 1.5% on CDs, actually does not amount to hardly anything. Taxes have to paid on the gains, and over a ten year period, we've lost about 30%. Our $100 is now worth about $70. By 2019 our $100 will be less than $50, but the outlook is not even that good. How far will that money go for a quality retirement?

Then we consider the Stock Market, including our qualified plans like 401(k)s, and after commissions and brokerage fees, even in good years of 7%, we end up with about 3.5% gain. Later, we'll pay taxes on that, and taxes are going up. The new VAT (Value Added Tax)--a Federal Sales Tax-- is coming. Baby Boomers especially are vulnerable, because they have no generation following them anywhere near their size to foot the bills. They'll be paying their own way into retirement.

About 5 years ago we ran into the Forex Market. This is the Foreign Currency Exchange and discovered it was 80 times larger than the New York Stock Exchange. We saw that around the world 12 major banks dominated but that now, with the internet access to the little guy, everyone could and anyone could get in on the fruits of this lucrative arena.

But we also discovered that 95% of the average people lose money. Too often they jump in to get rich too quick. Brokers report this, and it is so frightening to them, brokers themselves do not even go home and do personal trading. The leading problem with nothing close behind is the trader as a human being. Fear and Doubt when it comes to money cloud the mind and create havoc and losses. This is true for nearly everyone, but the system guys in our group created overcomes that problem. This is the reason they are making 3% a month, month in month out.

Some of the guys in our group were really smart. They said if they would set aside up to 18 hours a day to trade, keep their risk very low and cut losses quickly, and spend 3-5 years learning the system, they could eventually make lots of money. No one else we know of has taken this approach. And it worked.

But next, they said, why work so hard. We are in Redmond, WA, the home of Microsoft. Building software is something we are used to. So our group gathered some of the top IT people and put together a system of software that duplicated their own personal efforts in manually trading. It took nearly a year to build, and big time money. But it worked.

So now we run a software program that operates 24 hours a day, and is monitored. It is not just something thrown together cheaply and left to run based on past performance. It is monitored and tweaked. There is nothing like it. While we could easily make 10% a month with the system we want the risk so very, very low, that it is more like an investment system than a trading system. In fact, it is a kind of combination. Our group knows money and is not on the poor side, and they realize that 3% a month doubles the investment every 24 months, so that $20,000, for example, can become a Million Dollars in 6-10 years.

Interestingly enough, our people need know nothing about Forex. They do not do work. They are prevented from taking trades. Their human emotions cannot get in the way. The software and our PhD Analysts do all the work. People can even put together some of their qualified money into a Self-Directed IRA and use that money, and there is a professional on staff to assist at no cost.

Now we are able to invite people to check out what we do, and consider using the software system with us. The can see our accounts as they kick the tires.. They can hear from people we have allowed to use the system and see for themselves the results they are getting and the fun they are having. We have posted several stories online that can be checked out.

Dr. Terry C. Thomas is the Marketing Director for Easy Trade Forex Software, and has written an informative book, "Without Money You Feel Dumb, Broke and Stupid: How to Get Your Money Back," and also hosts a weekly radio show, "Money, Wealth and Prosperity."

The program he and his collegues developed includes a free bonus of a customized financial assessment that can be taken in 4-7 minutes, a free 15 page up to the minute financial report, and a free exclusive mentoring orientation.

[http://ET4Software.com]

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Where To Invest Money - Learn More About Some Great Places To Invest Money!

Investing has long been one of the top ways to earn money and to make your money grow. Whether you're starting out with a little or a lot, you can earn a lot of money investing and really maximize your profits by choosing the best types of investments that are available and diversifying them.

Today, our investment experts are going to talk about some great places and ways to invest!

Stocks

One of the longstanding ways to invest is in stocks. While years ago this used to be one of the most popular as well as profitable ways to invest, there have been many new ways of investing that have really beaten out stocks as one of the top ways to invest.

Stocks can definitely still be very profitable though and, although they may be risky, there's a lot of money to be made trading in the stock market and trading stocks can be more consistent than other types of investments.

Forex Trading

One of the ways to invest that is very quickly growing in popularity is Forex trading, Forex trading, or currency trading, offers a massive market for investors to get into. With an average daily turnover of around $1.3 Trillion per day, there's definitely a lot of money to be in the Forex trading market.

Forex trading can be very risky though, and unless you're an expert and experienced trader, having a great Forex trading system on your side while trading Forex is key to your success.

IRA Investments

IRA accounts have long been a consistent, stable and profitable way for people to invest. Even with only a little experience, an IRA investment account can be a very profitable way for someone to earn money and really be able to maximize their profits over the long term.

There are stories of people putting some money in IRA accounts, forgetting about it for a couple years and coming back to see a lot more in their account from their investment. An IRA account is a great way to invest over the long term as well because returns are generally more consistent than many other investments and therefore it offers a great way for people to invest money and see a nice, consistent and stable return.

The best way to invest is to invest using multiple methods in order to diversify your investments and hopefully maximize stability as well as profit potential!

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You could earn money than you ever thought possible investing online, earning a consistent, very impressive and incredible income investing at LendersClubOnline.com [http://LendersClubOnline.com], get started investing today!

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SEIS the Tax-Free Investment Opportunity for UK Investors

Enterprise Investment Schemes

An EIS is an investment vehicle that provides funds and capital to small businesses that, due to the tightening of the credit market, cannot otherwise get financing from traditional sources. An EIS is an unquoted company that is not on a stock exchange and is most likely managed by a venture capital firm. These firms manage the investment objectives to protect investors and maximize investment returns. A good firm will have been involved in venture capital investing for a number of years and be able to provide a solid track record of protecting principle and securing returns. Firms operate their EISes differently, some offering investments into single companies while others operate EIS funds in which you could invest into a fund of multiple companies, therefore diversifying your risk.

The benefit of tax protection that EISes offer has resulted in an increased demand among wealthier investors, with EIS being utilized as a strategic tool within their portfolios. The UK government increased tax relief from 20% to 30% and the annual investment amount has been increased from £500,000 to £1,000,000. With the added benefit that the investment is exempt from capital gains tax and inheritance tax, EIS is increasingly the perfect vehicle for certain investors. More and more EISes have become essential within many investment portfolios as an integral tax relief tactic.

Seed Enterprise Investment Schemes

Not quite as large as the EIS, the SEIS provides a similar benefit and experience. The main difference being the investment amount allowed annually which currently stands at a maximum of £100,000, but offers an unprecedented 50% tax relief on the investment's gains and value. However this 50% is only applicable if the SEIS continues to comply with the SEIS rules and providing the investment is left for a minimum of three years. After three years the investor can sell their stake, incurring no capital gains tax against profit realized. Furthermore, loss relief applies to any losses incurred.

As of 2014, the upfront tax relief for the highest tax bracket investors equates to a 64% tax break and, when combined with a loss relief tax break of a further potential of 22.5%, equates to a total of 86.5% tax relief. The downside tax protection of almost 90% is unprecedented amongst all other investment vehicles and provides significant tactical value to certain investors.

Careful Consideration

As with any investment decision, you need to be careful in your consideration when choosing to use EIS or SEIS for your portfolio. You should be considering these tax relief options in your portfolio after you have exhausted other forms of tax mitigation. The first two that should be utilized are your pension and annual Individual Savings Account (ISA) allowance. These primary tax savings vehicles provide secure investment vehicles; ISAs offer amazing investment flexibility not available through EIS or SEIS. Another option includes VCTs - Venture Capital Trusts - which have similar strategic benefits to EIS or SEIS but are limited to £200,000 per year.

In deciding on further tax mitigation, you need to consider the portion of your portfolio that these tactical investments would make up. Conventional wisdom dictates that you should not put more than 20% of your holdings into risky opportunities, but that 20% could realistically be surpassed with correct use of the right investment vehicles. If you are hedging your portfolio against a known event that will increase your capital gains taxes or inheritance taxes, EIS and SEIS would be a viable way to mitigate those taxes in a given year. In this way you could max out your contributions to these two tactical strategies in order to mitigate the known tax implications from another portion of your investment portfolio. It is these considerations that you should be aware of before deciding on a specific EIS or SEIS company.

Another concern that you should be aware of is the fact that EISes and SEISes are essentially "locked-in" products. You need to be able to leave the investments locked in for a period of at least three years (and in some cases longer) in order to access the tax relief benefits - managers will generally look for an exit in or around year 4, but an exit could realistically take longer and is subject to market conditions. In this way, many EIS and SEIS companies are illiquid and the secondary market for selling EIS/SEIS shares is therefore small. Taking the long view on these investments should be a natural consideration.

Choosing the Right EIS/SEIS

When deciding on the right company to invest for the purpose of tax mitigation, not all EIS/SEIS companies are the same. Choosing a company should not be done on impulse and requires effective due diligence to ensure that their investment philosophy is in line with your own. At the time of consideration, ask all the same questions of the company as you would when investing in any stock. By ensuring the company has a solid and proven track record of investments, open reporting functions that promote transparency and an investment philosophy you agree with, you can feel comfortable with your investment.

By considering an EIS/SEIS investment you are considering an investment option that has a real potential for investment loss. It can be the right option for those looking for a high risk option with an effective tax mitigation strategy as a small portion of their overall portfolio. EIS and SEIS investments can also be an excellent way for investors to dabble in venture capital investing without having to put up too much capital.

For more information please visit: https://www.gov.uk/government/publications/the-enterprise-investment-scheme-introduction

https://www.gov.uk/seed-enterprise-investment-scheme-background

Kuber Ventures - The Alternative Investment Platform for investing in EIS and SEIS funds or portfolios.
Kuber Ventures Limited
25 Sackville Street
London, W1S 3AX
Telephone: +44 20 7952 6685

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Agriculture Investment - How to Value Farmland for Investors

There are many factors to consider when approaching the valuation of an asset; the relationship between supply and tangible demand, the availability and affordability of credit to enable this demand, the earnings generated by the asset and the cost of generating that income. However, as with any asset, Investors should primarily consider the price to earnings ratio of farmland to identify the cost of each unit of income.

The value of commercially viable agricultural land is driven primarily by the profitability of the land as a commercial, income generating asset. The greater the income yield generated from the sale of crops, the higher the value of the land from which that yield is derived. This factor is the absolute key for both farming landowners and investor landowners. Tenant farmers will be prepared to pay higher rents on land where a greater income can be earned and investors will be prepared to pay a higher price for land where the income generated is higher.

The profitability of farmland can be measured simply by deducting the combined cost of ownership (mortgage interest), and of production (manpower, fuel, fertilizers seed etc.), from the revenue generated by way of the sale of the crops produced. It should therefore be noted that agricultural commodity prices play a crucial role in ascertaining land values. It is the influence of agricultural commodities that have to a large extent generated the recent gains in farmland prices in the UK, particularly during 2007 and 2008 when commodities were experiencing unprecedented highs. There are of course a number of other factors at play but a pure investor should look mainly at earnings and costs for a picture of the real value, regardless of asking prices. Using this methodology also quickly identifies over-pricing where the cost of ownership and production are close to, or outweigh income.

Supply also affects farmland values, and in areas where there is a high level of availability prices are likely to be lower than in areas where availability of good land is suppressed, either through a lack of sellers or an actual lack of existing land. In any agricultural economy the highest yielding land is taken into production first as it is the most profitable. Where profitability of the land in two different areas is similar, the availability of farmland explains much of the variation in prices.

A good example of this can be witnessed in Canada where despite a large availability of land (6.5 million km2) only a small proportion is able to produce premium agricultural yields. Demand for this more profitable land will be highest and it will be the most valuable, whilst less productive land will be less valuable. This makes agriculture investment in Canada tricky for those unfamiliar with the farmland market although there are a number of good farmland investment funds with locally experienced operators.

Outside of this apparently simple relationship between farm profits (or rents), farmland availability and farmland values, one must also factor in the price of the commodities produced, which are also set by supply and demand. Therefore, to make a qualified projection of future farmland values, one must also have a clear understanding of trends in agricultural commodity prices.

Soft-commodities are cyclical in behaviour, and a greater global supply of say Soy, will drive the price down as it is freely available. There is then a clear economic disincentive for farmers to grow Soy the following year and therefore global stocks fall and the price rises again. These higher prices incentivise further investment in production and the cycle begins again. Other factors also play a part such as an abrupt shock in supply caused by drought or export bans from major producers. We witnessed a recent example of this in late 2010 when Russia halted their exports of wheat, creating a global shortfall and a short-term spike in the price.

This short-term cyclical volatility in soft-commodities makes it difficult to assess farmland values in the short term as it is mostly production levels that have an influence, but the mid to long-term fundamentals of the supply of, and demand for commodities are much more important to the farmland investor. Capital growth is reliant upon long-term agricultural commodity trends rather than short-term price volatility. It is the long-term fundamentals of food demand growth and food supply constraints which have resulted in a historical upward trend in agricultural land values.

On the most basic level, the global population continues to grow at a rate of 200,000 per day, and is due to peak at 9 billion in 2050. This tells us that long-term demand for food will remain not only strong, but at current levels of production, totally unsupportable, therefore the value of the land that produces our food must rise.

David Garner is Partner at boutique alternative investment boutique DGC Asset Management Limited.

Download the complimentary DGC Asset Management Alternative Investment Report from the DGC website.

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Simple Tips For a Successful Fix and Flip

Over the years, more and more people have decided to leave their office jobs and try their luck in the real estate business. It is because despite of the recent housing bubble and the ongoing economic recession, investors can still make a huge amount of money through the housing market.

One of the ways to rack up big profits in the housing industry in a relatively short time is to fix and flip properties. As the name implies, the business of fixing and flipping basically involves the process of buying and rehabilitating homes for profit. It is also known as rehabbing among real estate investors. When refurbishing properties, most investors prefer old houses because they can be purchased at prices well below their market value.

A good source of fix and flip projects are motivated home sellers. These people don't usually ask for a higher selling price. It is because they are in a hurry to get rid of their unwanted properties due to various reasons that include foreclosure, relocation, or divorce. So if you are considering becoming a rehabber of properties, then you get yourself acquainted with as many motivated home sellers as possible.

Another important task to consider when rehabbing properties aside from finding good sources of investment properties is to make a business plan. You should create a budget and a schedule to ensure that your fix and flip project is on the right track. Such a move will also prevent you from spending too much time and money on an investment property.

When renovating a fixer upper house, you can either do the repairs on your own or ask professional contractors to do the job. Doing the rehab work without the help of the professionals can save you a lot of money. However, it can be a daunting task for those who are not very skilled at DIY jobs. In addition, it is time consuming and if a prospective home buyer doesn't like the quality of the repairs, it would be difficult for you to convince him or her to purchase the property.

Although hiring contractors can bring additional expenses, you can be sure that the renovations are top notch. You can also save a lot of time and the repair work can be finished as soon as possible.

To succeed in the fix and flip business, meanwhile, you have to continue to boost your knowledge and skills as a rehabber. Therefore, you should visit www.REIWired.com. REIWired.com offers quality real estate education through its quality articles, audio files and videos.

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Investors That Fix and Flip Property - How Flipping Works

Fixing and flipping properties is a great way to make a large amount of money fairly quickly, but a lot of people struggle with the basics, especially if they are completely new to investing in property. Some basic guidance at the beginning of your journey can go a long way to helping you figure out exactly what you need to be doing and how you can get started on your flipping journey.

With that in mind, we have decided to compile a short list of the basic steps to flipping so that you know everything you need to take your first steps along the road to fixing and flipping.

Know Your Budget

Before you can even think about purchasing a property to fix up, you need to know how much you are able to spend at each stage. First, decided on how much you are willing to pay for a property, including any fees that you will need to pay out to a real estate agent. Stick to this number at all times when you are starting out, so you don't get in over your head. Now, earmark the money that needs to be set aside for the work that needs to be done on a property. This will be an approximate value before you get the chance to actually look at some properties, so always err on the side of caution and have more than you need.

Buy A Property

The key to successful flipping is to buy properties at as low a price as possible and then fix them up so that they achieve the highest possible profit. As such, it is not always a good idea to buy directly from an owner unless they are selling for considerably less than the market value. Instead, try speaking to banks and other financial institutions and find out about properties that have been foreclosed on. You can also try heading to auctions to see if you can snag yourself a bargain that way.

Fixing

A key part of flipping is fixing the property up. You aren't going to make any money just buying and then selling the property as is, so make sure you know what work needs to be done to provide the largest return on investment. At this stage you should also be securing relationships with workers that you can trust, as it is likely that you will be working with them for the long term if you are aiming to keep flipping properties. Don't always go for the cheapest, especially if you doubt the quality of work provided.

Selling

Once the home is fixed up to the standards you expect, it is time to put it on the market. It is usually best to work with a real estate agent here, unless you are confident that you can sell the property yourself. If done right, you should find that the price you can ask exceeds the amount you have spent by quite a margin, meaning you have successfully flipped the property when it eventually sells.

Keep 100% Commission

You Earned It - Now Keep It

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Please note the content is not intended to be, legal or investment advice. You should consult a licensed attorney or realtor for advice regarding your individual situation.

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How Crowdfunding Is Being Used by Real Estate Investors

Crowdfunding has become all the rage in recent years to help people launch a variety of projects, nonprofits, or even companies. It looks like crowdfunding could even be reaching into the real estate market, though, which has some important implications for investors.

One such example of this is SaundersDailey, which provides opportunities for properties all over the country. The company is a co-invested fund that relies primarily on matching community investors with opportunities in their local market. Although crowdfunding on a national basis is problematic because of the underwriting risks, this local approach removes some of those concerns.

Part of the rise in crowdfunding has to do with meeting investors interest levels. Many investors are hoping to uplevel their portfolios. This might mean going from a building with a few dozen units to a few hundred, and this often comes in the form of a 1031 exchange. As a result, these investors are looking for sellers with an open timetable.

Some have suggested that even though crowdfunding is somewhat new to the real estate market that the potential for oversaturation is strong. According to some experts, there are as many as 250 crowdfunding platforms that dabble in the real estate market currently, but there is still plenty of room to grow.

It's likely that as crowdfunding platforms grow and evolve, they will focus on different needs for the real estate market. This could be types of investors, types of returns, geographic locations, or even types of real estate. As more platforms enter the market and strive to be competitive in the landscape, it is expected that they may try to specialize and succeed in serving one particular segment of the market.

The average crowdfunding commercial real estate investor is someone earning between $200,000 and $500,000 a year. Even though this would be considered a solid income by most, it's just the right level of income for investors not to want to risk too much of their own money. This is why crowdfunding appeals to this particular subset of investors, so long as they can find the right crowdfunding platform for their needs.

Many people in this subset of investors feel like all the high-end investment opportunities go to those earning more than $500,000 a year, thus shutting out the investors making less than that from getting involved in the market. Crowdfunding, however, has the potential to change all of that and make real estate investment much more accessible.

Visit http://www.qualifiedintermediary.net to learn more about 1031 exchanges.

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If You Buy It, They Will Build It - Profits in Preconstruction Investing

Preconstruction investing is exactly what the name implies: investing in a property before the construction begins. Preconstruction investors buy tomorrow's properties at today's prices.

Perhaps the most well-known preconstruction investing strategy is in the condominium market. This is because condo developers typically need to sell a substantial portion (often 50 percent or more) of a project's units to qualify for a construction loan. But due to overbuilding, the condo market is at best flat in many areas. That's why many preconstruction investors are looking at the opportunities in single family homes.

"Preconstruction investing in single family homes is not as common as it is in condos," says Brian Haag, managing member of Gulfstream Development Group, LLC, in Cape Coral, Florida. Even so, he adds, "There are a few innovative developers across the country that are doing very well for themselves and their investors with preconstruction programs."

Here's how single family preconstruction investing typically works:

The developer chooses an area or project with potential for appreciation and quietly acquires a large number of lots while land prices are still relatively low. Next, the developer puts together a package for prospective investors describing the project, the demographics, and the growth potential of the area. An interested investor must qualify for and obtain a construction loan; when that loan is closed, building begins. When the house is complete, the investor can sell the property or obtain traditional financing and hold the property as a rental. In most cases, the market value of the completed house will be significantly higher than the cost of the land and building.

"A number of factors contribute to the investor's profit," Haag says. "First, our investors make money on the increase in land values. When we come in and start buying up lots, we spark interest in the area and that drives the land prices up. We create momentum in the market. Second, as a developer and builder, we enjoy some economies of scale and cost savings that we are able to pass along to our investors in the form of lower prices. Third, many people are willing to pay a premium to have a brand new home that they can buy and move into immediately without going through the construction process--they want instant gratification, and that translates to profits for the investor when the property is sold."

Developers selling to end users must invest substantial amounts of money in marketing as well as the costs of building and maintaining model and spec homes. Developers that work with preconstruction investors do not have those costs.

"We certainly don't turn away an end user who comes to us to have a home built, but our focus is on preconstruction investors," says Haag. "We have a turnkey program that takes our investors through the entire process with very little effort and cash invested on their part."

Begin at the end

As with any real estate venture, know your exit strategy before you make your preconstruction investment. Many condo preconstruction investors routinely flip their units at some point during the building process, although not all condo developers allow this. With single family preconstruction, your two primary strategies are to sell the house as soon as it's complete or rent it out for a few years to gain cash flow and appreciation. Occasionally, a preconstruction investor will even move into the property. If you're planning to sell, you can usually put the house on the market before it's finished and often have a buyer lined up ready to close as soon as the certificate of occupancy is issued. Of course, before you plan on doing this, be sure you are aware of any possible restrictions a developer may have on this type of activity.

"We study the market, analyze the trends, and put together forecasts that guide our investors in developing an exit strategy that will work for the property and for the individual investor's circumstances," says Haag. "We have a real estate sales division and a property management division, so we can provide assistance with whatever strategy--sell or keep-and-rent--our investors choose."

The key to successful single family preconstruction investing is synergy, says Haag. "The way to make money is to get in the middle of something that's much larger than you can do by yourself. Partner with developers and builders who know how to get in quietly and build momentum. Put yourself in the path of growth, make money, and then do it over and over again."

Jordan Taylor is the editor of Millionaire Mentor™ Newsletter, which is published by Whitney Education Group, Inc.™ To sign up for a free subscription, visit [http://www.russwhitney.com]

For more information about preconstruction investing and other advanced real estate investment training through Wealth Intelligence Academy®, visit http://www.wiacademy.com

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Own Real Estate Investment Property? Your Best Options to Survive the Real Estate Bubble

Our company gets many calls from reluctant condo investors and preconstruction contract owners that were looking to cash in on what appeared to be easy money. The client wants to know "What should I do?"

While each situation is unique, in general the decision can be crystallized down to the present value of future cash flows. In other words, translate each strategy into a series of inflows and outflows today and in the future and discount each cashflow to the present using an appropriate discount rate to come up with a net present value for each scenario. This combines time value of money and decision tree concepts and it helps convert an emotional decision into a rational financial decision.

Let's look at the easiest strategy to analyze - Walk Away. You are essentially locking in a loss of your initial investment, not to mention the possibility exists that the mortgage company may come after you anyway if the sale of the property does not cover their mortgage balance. It is an undesirable strategy to put it mildly and the choice of absolute last resort.

Without knowing your personal situation, I can tell you that there are far more effective options that should be explored that will help alleviate your situation. Please contact us for a no obligation free consultation and we'd be glad to explore the best options with you.

2. Sell the Property - You may feel that you have to sell today. The negative media and the overhyped real estate bubble contribute mightily to investor psychology today. Not to mention the hassles of being a landlord. Or getting the unit rented while attending to your million other tasks and your job.

Maybe the property is significantly negative cash flow and the monthly loss is bleeding your finances and savings. You feel you are diving into a money pit and your net worth is plummeting. Here's how your cashflows line up - if you're in a hot market, expect to take a significant discount to fair market value in the price you get. In other words, lock in a 10-20% reduction in the price you may get if you decide to ride out this correction.

A word about cycles. At the top of a cycle, things are rosy and projections are that prices will continue to rise indefinitely. We saw that last year. Similarly, today it is difficult to imagine that prices are ever going to rise again and real estate may stay depressed for many years to come. The reality is somewhere in between. Prices will bounce back, it is a matter of when, not if. Given the negative sentiment, we'd venture to say that we've already seen the worst of the correction.

The Sell Your Property strategy also has an element of hope. There is no guarantee that you can sell even if you want to desperately. The reality of selling has to do with how low you are willing to bring your price. But also think about this, in the last correction Californians that sold their properties near the bottom lived to rue the day as property values exploded over the past 10 years, rising roughly 2-3 times in that time period.

3. Final Option - Hold & Maximize - When considering a hold strategy, the investor makes the assumption that the market will get better soon. Most experts predict that the current inventory glut will take until Q4 2007 to get to a normal market.

How long you have to hold will depend on how well you bought. The old adage in real estate is that the profit is made on the purchase, not on the sale.

Alongside the hold option, you need to get a financial professional to review your financing for the property. Can you cash out equity, lower your interest rate, defer interest on your mortgage? Each would help lower your monthly outlay. Our company has investor programs that very few other firms can provide. And if we can't help you, we are tied in to a national network of investor loan consultants that we are certain can.

Secondly, your hold decision depends on demand for real estate in the location you purchased and the inventory situation. Are buyers moving to the area, are incomes rising, is the rental market strong, is there job growth and what is the rational expectation for the market?

If you want a thorough and honest review of your particular situation, contact us. We can help you make a rational decision and help improve your financial situation. If you are in financial dire straits, contact us immediately. We can help you devise a strategy that will not only protect your investment, but also position you for a brighter financial future.

© 2006, All Rights Reserved.

Are you a real estate investor looking for new opportunities? Need a free consultation of property you hold already? Work with one of the largest real estate investment clubs in the country and let us help you formulate a strategy for investment success. Visit us as [http://www.REIalliance.com] and [http://www.real-estate-investment-alliance.com]

Also be sure to check out our current absolutely effortless investment in Orlando offering 4 years of no mortgage, no maintenance, no taxes and 5 years of guaranteed rental income. You can reach us 1-800-859-9815 or email at sales@REIalliance.com

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5 Factors To Consider Before Investing In Real Estate

Over the last five decades, the demand for housing has been on a steady rise -bolstered majorly by the burgeoning population with constant natural resources such as land. In order to keep at par with this growth, real estate is filling up a vital gap in the economy. However, just like any other sector of the industry, real estate has its own challenges that you need to address before you choose to invest. Here are the top five questions you need to address before moving up.

Source Of Funds

Real estate is a lucrative investment, but you shouldn't think of investing in it if you have a shortage of funds. Whether you want to use your savings to start off, take a loan or a mortgage, you have to ensure that you have enough money that will keep your entity fuelled until you break even.

Management

Building a whole estate can seem easy - simply check out with the contractor and dish out cash and the necessary details. However, there is more that defines a successful investor in real estate-you need to manage your property well. Whether you will sacrifice your evenings to look at your property or enlist the services of an agency, you need to formulate the answer forehand.

Marketing

Every investor is optimistic in their right senses, but that does not fill the gap of uncertainty as you would wish it to be. Perhaps once you are done with the construction of the houses they stand for another three or five months empty, are you prepared for that?

Target Customers

Every investor must have an idea in mind of who they need to serve - whether they are targeting government officials, temporary tourists, students or professionals. You will agree with me that each of this group has its own specific needs, if you present the wrong product to the groups, they will simply flee! You should do your research and understand the type of houses that your target group is interested in.

Maintenance Costs

Coming with a real estate definitely poses the question of maintenance - you have to be ready to make routine repairs on your property. Well, it may not really seem much of a task at the beginning, but once need knocks on your door, be ready to take the cost upon your shoulders, regular maintenance is key in putting larger costs at bay, so be ready to undertake them.

Are you looking for investment properties? We have golden tips on how you can successfully invest in real estate. Visit the given links to see our great tips.

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Three Tips For a Safer Property Investment Opportunity

Real estate is a gamble. Yes, there's plenty of money to be made in it, even with the current downward financial trends, but a property investment opportunity isn't an automatic way to get a good return on your money.

There are plenty of websites that will show you "how easy it is" and offer you a number of "get rich quick" opportunities into which to sink your capital, but think about it, if it were that easy, wouldn't there be more people doing it? Wouldn't there be less middle people trying to hook up investors with deals? Of course there would, and that's why I'm here to get you to stop making an irrational decision to jump on the first property investment opportunity that comes your way!

Before you even start thinking about putting your capital into a real estate project, you must have a well thought out strategy about what you hope to get out of the deal. For example do you want to buy to flip, resell as fast as you can for a higher price? Or are you more inclined to put your money into property you can let for an additional income? Speak to experienced property investors and learn from what their experience. Read everything you can about the current property market, and keep your knowledge base up-to-date.

Hire professionals who know what you don't. Even learning all there is to know about the current state of the property market around the world, you will find that paying for a professional property legal expert will ensure that you don't lose out in terms of property tax issues. They will also ensure that you have all the relevant paperwork completed for both buying and selling when you are involved with a property investment opportunity.

Your regular solicitor may well know something on property law, but I advise you to get someone who specializes in property law to handle your investment transactions as they will be much more familiar with the industry and any scams that are making the rounds. Try to find someone who is recommended by at least two other real estate investors, or ask for letters of recommendation from anyone you think might be suitable.

Watch out for property auctions. These are a great way of getting a good bargain, and can give you a good return on your money, but only if you know what you're doing. The problem with auctions is more likely to be you, than the property! The property ought to be as listed, but you first of all need to do your homework and assess how much the property is worth and how high a ROI you can expect from it.

However, in the electrified atmosphere of an auction room, it's easy to increase any carefully calculated bid maximum that you've set yourself. If you're going to find a property investment opportunity via the auction route, remove the possibility of lowering your return by getting someone else to attend the auction and bid on your behalf!

There are many other things you can to maximize your profit margins on any property investment opportunity, but following these 3 simple tips above will get you started on the road to what should be a good return on your capital.

Surrinder Ahitan offers free property investment advice and tips on how to invest in residential and commercial property for maximum returns. Visit [http://www.best-investment-property-tips.com] where he reveals more valuable insider tips and property secrets.

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Property Investment Opportunities Are the Only Sensible Investment Opportunities

The financial world is a funny place to be involved in at the moment. No one is quite sure where to invest their money and who to trust with it. A few years ago people were quite prepared to place their money in the stock market either in the form of a Self Invested Personal Pension or some stock. Now people need to find an alternate route to invest their money in and also to keep their investment safe.

One way people can achieve both of these goals is to move away from the stock market and instead look at property investment opportunities. The property market is turning out to be one of the most reliable markets out there at the moment. It doesn't fluctuate too much and can be predicted when it is likely to rise or fall fairly well.

More and more property investment opportunities are arising these days, with the house price crash, there are a number of properties just waiting to be snapped up and done up as investment projects. Once the property has been refurbished you can then look to rent the property out and start to reap the benefits of your reward.

Obviously property investment opportunities will be suited to individuals who have quite a substantial sum of money behind them although having said that if you don't have vast sums of income behind you then you can still look to get on the property ladder and start to make some investments.

Taking on a second mortgage might seem risky but it could end up paying off in the long run. If you have someone in renting the property then it will more than likely cover the mortgage payments and then when it is paid off you will have a nice investment of £100,000 minimum that you will be able to use. If the market were to crash before you were able to pay it off then you would simply advertise the property for sale and sell up.

Now is the ideal time to take advantage of property investment opportunities as the market is low and you will be able to maximize the amount of money that you squeeze out of your investment. There will still be a number of people who after reading this will still think that property investment opportunities are a risky investment and not worth dabbling with. However, there isn't a sure fire way to make money without any risk. If there was we would all be doing it, but one thing remains true, if you don't take a chance then you will never make any money with your investment.

Gino Hitshopi is a investment manager with many years of experience helping people to invest their money. Find out more about property investment opportunities at http://www.millionaire-investments.com/

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Property Investment Tips For Success

Statistics show that 80% of Australians don't succeed in their first investment, discouraging them from becoming property investors. Many of these one-time investors failed to make it beyond their initial property investing venture because they went about it without observing a sound strategy.

Elements of Property Investing

Long term goals: Simply wanting to earn money is not enough reason to start investing. You need to lay down your long term goals whether it's to build your retirement nest, have funds to enjoy a particular lifestyle or leave a legacy for your children. Setting your goals will be the basis of your plan of action which includes a fixing a timeline and regular review of your progress.

Buying at the right price: A basic investment strategy involves buying low and selling high to earn the most profits from a property. Knowing at what price to buy requires extensive research and a good knowledge of the area.

Capital growth: Investing in properties with high appreciation values is a good strategy. When properties grow in value, you can use these as leverage to acquire more property investment, allowing you to build your portfolio quickly.

Opportunity to add value: Having an eye for properties that are diamonds in the rough and being able to visualize their future appearances is a property investing skill that you should have. Learn how to spot properties that can have a huge growth potential with some facelift. You can buy them at prices that are lower than their intrinsic values and spend a little on cosmetic changes that will boost rental income and property values.

Your financial capacity: Make sure that you have the funds to invest in the right type of property, either from extra cash lying around or from a loan facility. This is where you will need the help of a good mortgage broker to facilitate leverage.

Structure to save: Property investing is not a simple case of buying, holding and selling or renting. You should also know how to structure your portfolio to get the most of it with the help of a good accountant. There may be hidden opportunities to save on taxes that only an accountant can be aware of.

Ask for help: Those successful in property investment did not do it alone and sought the advice of professionals along the way. You should be prepared to ask for help and delegate to professionals like a buyer's agent, mortgage broker, accountant and a real estate consultant.

Kerry Finch writes about the latest trends in marketing and investing. Getting the basics right is the key to any venture that includes investing in property. Seize the opportunity now to learn more about property investing and get on the right path, from the very beginning http://www.jenniebrown.com.au/

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Investment Tips - For the First Time Investor

The basic rules of any first time investment are normally:

1. What is your preferred period of time for this investment?

Have a plan for the length of time to want to invest for, normally for reasonable growth a minimum period is 5 years but the longer the term the better your chances of making profit over inflation.

2. Know your risk profile (ATR) and what you are comfortable investing in

There are many tools to help assess your Attitude to Risk profile and you can find numerous online questionaires on this subject, indeed one of the first things a financial adviser will establish is the client's ATR.

3. How much of your investment can you afford to lose in the short term?

Always have a clear idea on how much of your investment you can afford to lose in the short or medium term, this way you can spread your money according to the level of risk you are prepared to take.

4. What is your overall objective, is it growth or income?

During the early years many younger clients may want to achieve high growth or growth in excess of inflation I order to build up their wealth.

While other older clients approaching or in retirement, may want income options with additional tax saving benefits.

5. Have a good clear idea about your current tax status

With so many different investment products in the market its important to know your current level of taxable income and which products may offer more longer term benefits.

6. Always split your investment as a total percentage (%) between low, medium and adventurous funds

Its quite common for many clients to spread their investment portfolios over various types of assets from low risk securities such as deposits and fixed interests with medium risk products such as distribution, gilts and bonds right up to higher (adventurous) risk which can include various stock markets and private stocks and shares.

7. Have you learnt from anything from previous investments

Its always handy to be able to review previous investments: what went well and maybe what did'nt do well, was the timing right, the spread, etc.

8. Have a plan B if markets fall or rise sharply

Deciding on your reaction should your investment move up or down sharply in the early years is clearly an advantage, knowing how you will react gives a good indication of how to build your portfolio over the short, medium and longer term.

9. Keeping regularly reviewing how your portfolio is going

Always spend a some time maybe just a few minutes every week seeing how everything is moving, what's doing well and why, Whats not doing well and why, whether you need to re-balance your portfolio over time to suit any change in your risk profile.

10. Remember always try to diversify

Don't have all your eggs in just 1 basket have 40 or more baskets, if you can Try and have a good spread of investment fund managers in various market sectors not just Insurance, Banks or Mutual products.

11. Take advantage of any tax incentives for investing (ISA etc)

With the taxman giving away less and less in the way of tax incentives, it always makes real sense to use whatever tax perks that are available, such as: tax relief, allowances, thresholds, deferrals, tax free status etc.

12. Be clever, always speak to an experienced independent financial adviser

It might be good to try a few things out yourself but importantly when dealing with your most important assets such as your life savings or your pension etc then save yourself a lot of time and trouble by discussing your needs and objectives with a financial adviser, use his knowledge and experience to save you problems in the future.

Check out Bob Windust at http://firstoption4u.co.uk.
First Option is one of the leading financial advisors in Cardiff. They provide an advice regarding life cover & business protection, retirement planning, saving & investments, personal pension and also about life insurance.

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Assessing Risk: Forestry And Farmland Investment

During the past five years, the global economic meltdown has spurred a spate of reorganizations of the investment portfolios of major institutional investors, many of which are now allocating more capital to real-asset alternative investments in an effort to reduce exposure to volatile financial markets, generate superior investment returns, and underwrite the value of their portfolios with the capital value of niche, income-generating property assets including forestry investments and farmland investment properties that are unlikely to depreciate in the long term.

The logic is sensible, and the likes of Yale University Endowment and their Harvard counterparts have all entered into long-term farmland and forestry investments as part of an overall refocusing of their investment strategy. Historically, land, gold and gems of varying types have been the only store of wealth, it is only since the introduction of fiat currencies that investors have sought to build cash gains, rather than aiming to build a sizable portfolio of land, property or other physical assets. Now, many smaller investors are taking heed of the big boys' new strategy, and investigating the potential benefits and risks associated with investing in commercial timber properties and agricultural land assets.

Both of these assets classes exhibit characteristics that hold particular appeal during times of economic turmoil. Not only have assets in both sectors outperformed the majority of traditional investment instruments, but also, investment returns are driven by factors and variables that bear little impact from turmoil and volatility in traditional equity markets. Trees continue to grow to valuable timber whatever the economic weather, and increasing demand for resources from China, India and other fast-growing emerging economic drives up the price of sustainably sourced commercial timber and demand outstrips supply.

Capital growth and revenue from farmland assets are also supported by increasing demand. More people simply require more food, and improving diets in emerging market economies require greater inputs of grains, water and other inputs including fertilizers and fuel. All these factors combine to drive up commodity prices (and farm income) on an annual basis, and a lack of suitable land in the face of growing demand also supports long terms capital values.

So, on paper both farmland and forestry investment assets offer a number of advantages to the investors, but there are also a number of asset specific risks that must be acknowledged and understood before venturing into this type of asset as part of a diversified portfolio. Here are some of the headline risks associated with agricultural property investing:

Sectoral Risks

Both farmland and forestry investments display risk-potential that is specific to owning and operating agricultural assets in general. Income is derived from the production and harvest of commodities, be it timber, biomass, energy crops, grains or livestock. Revenues streams can be volatile, with growers subject to prevailing market conditions at the time of harvest. A dip in prices may cause an entire years' revenue to be wiped out. Energy prices also factor in, especially in relation to farmland. Higher oil and gas prices mean higher farm input prices, further squeezing profit margins.

In the case of forestry investments, value can be stored on the stump during periods of decreased timber demand (and deflated timber prices), as property owners simply leave their trees to grow larger and more valuable until market conditions dictate a sensible time to harvest and sell. There are of course a number of other risk-factors associated with investing in real assets in the agricultural sector, but the major sectoral considerations are volatility and immediate demand for produce.

Location Risks

It is written, and I personally believe, that the vast majority of demand for resources such as energy, timber, food and other commodities will come from fast-growing emerging market economies. China alone exhibits economic growth on such a scale as to dwarf that of developed economies. When 3 billion people drive a car, live in a timber and concrete house, and eat a western diet, then demand for energy and raw materials will reach a level hitherto unseen.

It stands to reason then, that agricultural assets located in regions close enough to, or even inside emerging market economies are best-positioned to participate in the supply chain, and offer enhanced returns for investors due to low asset prices and high demand for end products. Whilst emerging markets offer the best opportunity for superior investment returns, these locations also carry risks not associated with developed nations. The potential for expropriation of land and property by unfriendly governments attempting to win votes poses a very real risk, and investor should carefully investigate the security of title for international investors before committing funds.

Asset Specific Risks

This is where experience and expertise comes in. farms and forests are niche assets and require careful expert management in order to mitigate risk and maximize upside potential. Flood, drought, disease, pests and soil degradation may all affect the income potential (and therefore capital value) of agricultural property assets. Growing commercial timber takes skill, knowledge and experience, and running a successful farm requires the same. My advice? Only ever choose to invest in agriculturally productive properties if you are able to access and retain expert operational partners capable of managing specific assets in the region you wish to invest.

In summary, it could be said that investing in farmland, or timberlands, offers the investor the opportunity to generate non-correlated returns without dramatically altering the overall risk profile of a portfolio. But there are risks, and the risks to be considered are not necessarily the kind of risks that investors are used to acknowledging or assessing. So seek the advice of an experienced consultant with a track record of delivering successful projects, and make sure that you are capable of withstanding long-term illiquidity, as both farmland and forestry investment assets are long-term investments, and investors must consider that they will ride out the bad times along with the good, in the hope to retaining control of some of the world's most essential, productive assets.

David Garner is Partner at DGC Asset Management, an alternative investments boutique specialising in property transactions in the agriculture and renewable energy sectors.

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