Prep for the Top 10 Interview Questions By Anthony of www.knowledgefinancial.com Contributing Writer
Too many job seekers stumble through interviews as if the questions are coming out of left field. But many interview questions are to be expected. Study this list and plan your answers ahead of time so you'll be ready to deliver them with confidence.
1. What Are Your Weaknesses?
This is the most dreaded question of all. Handle it by minimizing your weakness and emphasizing your strengths. Stay away from personal qualities and concentrate on professional traits: "I am always working on improving my communication skills to be a more effective presenter. I recently joined Toastmasters, which I find very helpful."
2. Why Should We Hire You?
Summarize your experiences: "With five years' experience working in the financial industry and my proven record of saving the company money, I could make a big difference in your company. I'm confident I would be a great addition to your team."
3. Why Do You Want to Work Here?
The interviewer is listening for an answer that indicates you've given this some thought and are not sending out resumes just because there is an opening. For example, "I've selected key companies whose mission statements are in line with my values, where I know I could be excited about what the company does, and this company is very high on my list of desirable choices."
4. What Are Your Goals?
Sometimes it's best to talk about short-term and intermediate goals rather than locking yourself into the distant future. For example, "My immediate goal is to get a job in a growth-oriented company. My long-term goal will depend on where the company goes. I hope to eventually grow into a position of responsibility."
5. Why Did You Leave (Or Why Are You Leaving) Your Job?
If you're unemployed, state your reason for leaving in a positive context: "I managed to survive two rounds of corporate downsizing, but the third round was a 20 percent reduction in the workforce, which included me."
If you are employed, focus on what you want in your next job: "After two years, I made the decision to look for a company that is team-focused, where I can add my experience."
6. When Were You Most Satisfied in Your Job?
The interviewer wants to know what motivates you. If you can relate an example of a job or project when you were excited, the interviewer will get an idea of your preferences. "I was very satisfied in my last job, because I worked directly with the customers and their problems; that is an important part of the job for me."
7. What Can You Do for Us That Other Candidates Can't?
What makes you unique? This will take an assessment of your experiences, skills and traits. Summarize concisely: "I have a unique combination of strong technical skills, and the ability to build strong customer relationships. This allows me to use my knowledge and break down information to be more user-friendly."
8. What Are Three Positive Things Your Last Boss Would Say About You?
It's time to pull out your old performance appraisals and boss's quotes. This is a great way to brag about yourself through someone else's words: "My boss has told me that I am the best designer he has ever had. He knows he can rely on me, and he likes my sense of humor."
9. What Salary Are You Seeking?
It is to your advantage if the employer tells you the range first. Prepare by knowing the going rate in your area, and your bottom line or walk-away point. One possible answer would be: "I am sure when the time comes, we can agree on a reasonable amount. In what range do you typically pay someone with my background?"
10. If You Were an Animal, Which One Would You Want to Be?
Interviewers use this type of psychological question to see if you can think quickly. If you answer "a bunny," you will make a soft, passive impression. If you answer "a lion," you will be seen as aggressive. What type of personality would it take to get the job done? What impression do you want to make?
|
Make a Great First Impression WHEN LOOKING
FOR JOBS
Assessing Your Skills
What Makes You Different from All the Others?
By Anthony knowledgefinancial.com Contributing Writer
Experts had recently been laid off after working as a marketing manager in a high tech company
for the past five years. She was distracted as she walked through the aisles of the supermarket.
They were thinking about ways to market herself into a new job. She stood in front of the cereal
selection, overwhelmed by the number of brands to choose from -- more than 100 varieties.
This must be what it's like for hiring managers to look at all those resumes received in answer to
ads and postings. How do they choose? What do they look for? How does one get selected? How
can I make my product stand out?
The Packaging
The packaging on the cereal box is certainly the start. Eye-catching colors and descriptive words
will draw attention -- low fat, energy boosting, added vitamins -- all the things consumers are
looking for.
But what are employers looking for? The words you choose will be key. Using words that will
interest the companies will grab their attention.
The Ingredients
The list of ingredients -- the skills you have to offer -- is also important. Gina couldn't wait to get
home and write down her skills and what made her unique to the position.
Skills learned through past experience and education (knowledge-based skills).
Skills you bring with you to any job (transferable or portable skills).
Personal traits, the things that make you who you are.
The Assessment Tool
they divided a piece of paper into three columns and labeled them with "previous experience,"
"portable skills" and "personality," the three P's of marketing.
In the "previous experience" column she wrote:
Marketing knowledge Communications skills Vendor management Press and industry relations
Web channel marketing Product development Computer skills Under "portable skills" she wrote:
Customer focus Communications Writing skills Very organized Good at coordinating Team leader
Problem solving Project management Excellent follow-through Good with budgets and numbers
Time management
In the "personality column" she wrote:
Self-starter Independent Friendly Well-organized Quick learner Good judgment Good attitude
Creative Analytical
Flexible Good sense of humor Goal-directed





11. When were you most satisfied in your job?
Bad answer:
“I was most satisfied when I did well, and got praised for my work.”
Don’t give vague answers. Instead, think about something you did well and enjoyed that will be relevant at this new job. This is an
opportunity for you to share your interests, prove that you’re a great fit for the job and showcase your enthusiasm.
Good answer:
I’m a people person. I was always happiest — and most satisfied — when I was interacting with customers, making sure I was able to
meet their needs and giving them the best possible customer experience. It was my favorite part of the job, and it showed –
I was rated as “Good or Excellent” 95% of the time. Part of the reason I’m interested in this job is that I know I’d have even more
interaction with customers, on an even more critical level."
12. What did you like least about your last job
Bad answer:
“A lack of stability. I felt like the place could collapse around me at any time.”
Try and stay away from anything that draws on the politics, culture or financial health of your previous employer. No matter how true it
might be, comments like these will be construed as too negative. Also, you don’t want to focus on a function that might be your
responsibility in the next role. So think of something you disliked in your last job, but that you know for sure won’t be part of this new
role.
Good answer:
“There was nothing about my last job that I hated, but I guess there were some things I liked less than others. My previous role
involved traveling at least twice a month. While I do love to travel, twice a month was a little exhausting — I didn’t like spending quite
so much time out of the office. I’m happy to see that this role involves a lot less travel.”
13: Describe a time when you did not get along with a co-worker
Bad answer:
“I’m easy to get along with, so I’ve never had any kind of discord with another coworker.”
Interviewers don’t like these types of ‘easy out’ answers. And besides, they know you are probably not telling the truth. Think of a
relatively benign (but significant) instance, and spin it to be a positive learning experience.
Good answer:
“I used to lock heads with a fellow nurse in the INCU ward. We disagreed over a lot of things — from the care of patients to who got
what shifts to how to speak with a child’s family. Our personalities just didn’t mesh. After three months of arguing,
I pulled her aside and asked her to lunch. At lunch, we talked about our differences and why we weren’t getting along. It turns out, it
was all about communication. We communicated differently and once we knew that, we began to work well together. I really believe
that talking a problem through with someone can help solve any issue.”
14: What motivates you?
Bad answer:
“Doing a good job and being rewarded for it.”
It’s not that this answer is wrong — it’s just that it wastes an opportunity. This question is practically begging you to highlight your
positive attributes. So don’t give a vague, generic response —
it tells them very little about you. Instead, try and use this question as an opportunity to give the interviewer some insight into your
character, and use examples where possible.
Good answer:
“I’ve always been motivated by the challenge of meeting a tough deadline — in my last role, I was responsible for a 100% success
rate in terms of delivering our products on time and within budget. I know that this job is very fast-paced, and deadline-driven — I’m
more than up for the challenge. In fact, I thrive on it.”
15: How would your friends describe you?
Bad answer:
“I’m a really good listener.”
While being a good listener is a great personality trait, your employer probably doesn’t care all that much. It’s unlikely that they’re
hiring you to be a shoulder to cry on. You’ll want to keep your answer relevant to the job you’re interviewing for — and as specific as
possible. If you can, insert an example.
“My friends would probably say that I’m extremely persistent — I’ve never been afraid to keep going back until I get what I want. When
I worked as a program developer, recruiting keynote speakers for a major tech conference,
I got one rejection after another – this was just the nature of the job.But I really wanted the big players — so I wouldn’t take no for an
answer.
I kept going back to them every time there was a new company on board, or some new value proposition. Eventually, many of them
actually said “yes” — the program turned out to be so great that we doubled our attendees from the year before.
A lot of people might have given up after the first rejection, but it’s just not in my nature. If I know something is possible, I have to keep
trying until I get it
'' 15 Toughest Interview Questions (and Answers!)
For many people, job interviews are the most stressful part of the job-search process. And it's true that an interview is often a
make-or-break moment:
If you flub the interview in a big way, you probably won't make the cut--no matter how good your resume is, or how excellent your
qualifications are.
You can combat nerves and increase your chances of success by practicing your answers to difficult interview questions. Here are
some of the toughest, with suggested answers:
1. Why do you want to work in this industry?
Bad answer:
"I love to shop. Even as a kid, I spent hours flipping through catalogs."
Tip:
Don't just say you like it. Anyone can do that. Focus instead on your history with that particular industry, and if you can, tell a success
story.
Good answer:
"I've always loved shopping, but my interest in retail marketing really started when I worked at a neighborhood boutique. I knew that
our clothes were amazing, but that we weren't marketing them properly.
So I worked with management to come up with a marketing strategy that increased our sales by 25 percent in a year. It was great to
be able to contribute positively to an industry I feel so passionate about, and to help promote a product I really believed in."
2. Tell us about yourself.
Bad answer:
"I graduated four years ago from the University of Michigan, with a bachelor's in biology--but I decided that wasn't the right path for me.
So I switched gears and got my first job, working in sales for a startup. Then I went on to work in marketing for a law firm. After that,
I took a few months off to travel. Finally, I came back and worked in marketing again. And now, here I am, looking for a more
challenging marketing role."
Tip:
Instead of giving a chronological work history, focus on your strengths and how they pertain to the role. If possible, illustrate with
examples.
Good answer:
"I'm really energetic, and I'm a great communicator. Working in sales for two years helped me build confidence and taught me the
importance of customer loyalty. I've also got a track record of success. In my last role, I launched a company newsletter, which helped
us build on our existing relationships and create new ones.
Because of this, we ended up seeing a revenue increase of 10 percent over two years. I'm also very interested in how companies can
use web tools to better market themselves, and would be committed to building on your existing platform."
3. What do you think of your previous boss?
Bad answer:
"He was completely incompetent, and a nightmare to work with, which is why I've moved on."
Tip:
Remember that if you get the job, many of the people interviewing you will someday be your previous bosses. The last thing they want
is to hire someone they know will badmouth them. Instead of trashing your former employer, stay positive, and focus on what you
learned from him (no matter how awful he really was).
Good answer:
"My last boss taught me the importance of time management, didn't pull any punches, and was extremely deadline-driven. His
no-nonsense attitude pushed me to work harder, and to meet deadlines I never even thought were possible."
=========================================
4. Why are you leaving your current role?
Bad answer:
"I can't stand my boss, or the work I'm doing."
Tip:
Again, stay away from badmouthing your job or employer. Focus on the positive.
Good answer:
"I've learned a lot from my current role, but now I'm looking for a new challenge, to broaden my horizons, and to gain a new skill set--all
of which I see the potential for in this job."
5. Where do you see yourself in five years?
Bad answer:
"Relaxing on a beach in Maui," or "Doing your job."
Tip:
There's really no right answer to this question, but the interviewer wants to know that you're ambitious, career-oriented, and
committed to a future with the company. So instead of sharing your dream for early retirement, or trying to be funny, give an answer
that illustrates your drive and commitment.
Good answer:
"In five years I'd like to have an even better understanding of this industry. Also, I really love working with people. Ultimately, I'd like to
be in some type of managerial role at this company, where I can use my people skills and industry knowledge to benefit the people
working for me, and the company as a whole."
6. What's your greatest weakness?
Bad answer:
"I work too hard," or for the comedian, "Blonds."
Tip:
This question is a great opportunity to put a positive spin on something negative, but you don't want your answer to be a cliche--joking
or not. Instead, try to use a real example of a weakness you have learned to overcome.
Good answer:
"I've never been very comfortable with public speaking--which, as you know, can be a hindrance in the workplace. Realizing this was a
problem, I asked my previous employer if I could enroll in a speech workshop.
I took the class, and was able to overcome my lifelong fear. Since then, I've given several presentations to audiences of over 100
high-level executives--I still don't love it, but no one else can tell!"
7. What salary are you looking for?
Bad answer:
"In my last job I earned $35,000--so now I'm looking for $40,000."
Tip:
"If you can avoid it, don't give an exact number. The first person to name a price in a salary negotiation loses. Instead, reiterate your
commitment to the job itself. If you have to, give a broad range based on research you've conducted on that particular role, in your
particular city."
Good answer:
"I'm more interested in the role itself than the pay. That said, I'd expect to be paid the appropriate range for this role, based on my five
years of experience. I also think a fair salary would bear in mind the high cost of living here in New York City."8. Why should I hire you?
Bad answer:
"I'm the best candidate for the role."
Tip:
A good answer will reiterate your qualifications, and will highlight what makes you unique.
Good answer:
"I've been an executive assistant for the past ten years--my boss has said time and time again that without me, the organization would
fall apart. I've also taken the time to educate myself on some of the software I regularly use (but didn't really understand the ins and
outs of).
I'm an Excel whiz now, which means I can work faster, and take over some of what my boss would traditionally have had to do herself.
What's good enough for most people is never really good enough for me."
9. What is your greatest failure, and what did you learn from it?
Bad answer:
"I never finished law school--and everything that's happened since has taught me that giving up, just because the going gets tough, is
a huge mistake."
Tip:
You don't want to highlight a true major regret--especially one that exposes an overall dissatisfaction with your life. Instead, focus on a
smaller (but still significant) mishap, and how it has made you a better professional.
Good answer:
"When I was in college, I took an art class to supplement my curriculum. I didn't take it very seriously, and assumed that, compared to
my engineering classes, it would be a walk in the park. My failing grades at midterm showed me otherwise.
I'd even jeopardized my scholarship status. I knew I had to get my act together. I spent the rest of the semester making up for it, ended
up getting a decent grade in the class. I learned that no matter what I'm doing, I should strive to do it to the best of my ability.
Otherwise, it's not worth doing at all."
10. How do you explain your gap in employment?
Bad answer:
"I was so tired of working, and I needed a break," or "I just can't find a job."
Tip:
Employment gaps are always tough to explain. You don't want to come across as lazy or unhireable. Find a way to make your extended
unemployment seem like a choice you made, based on the right reasons.
Good answer:
"My work is important to me, so I won't be satisfied with any old job. Instead of rushing to accept the first thing that comes my way, I'm
taking my time and being selective to make sure my next role is the right one."
11 through 15. Read the final five "Toughest Interview Questionsm
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19 Great Jobs Without A College Degree – And How To Get Them Fast
You can get a great job without a college degree. That’s right. Great jobs without a degree are not impossible
to find. And if you’re willing to settle for “just” good jobs without college, you won’t find it hard to find one.
If you (or someone you know) is interested in finding a job, bypassing college could be a really smart move
right now.Finding top jobs without a college degree is a very individual mission. What’s right for Janice down
the street may not be the best move for you.
Going to a trade school instead might be a brilliant move for you. I read recently that only 1 in 4 college
graduates find jobs.
On top of that, according to the U.S. Burea of Labor Statistics, 8 of the 10 fastest growing jobs don’t require
college degrees. As you might expect, these are service jobs and they’re difficult to outsource. Booyah! Even
better. That’s why the opportunities are there.
The question is, how do you decide which trade to get trained in and how do you get the training at the least
cost?
Investigate
There are tons of high-paying no degree jobs. According to CNN, here are 19 top
careers without a college degree:
1. Air traffic controller – Annual income: $102,030
2. Storage and distribution manager – Annual income: $66,600
3. Transportation manager – Annual income: $66,600
4. Police and detectives supervisor – Annual income: $64,430
5. Non-retail sales manager – Annual income: $59,300
6. Forest fire fighting and prevention supervisor – Annual income: $58,920
7. Municipal fire fighting and prevention supervisor – Annual income: $58,902
8. Real estate broker – Annual income: $58,720
9. Elevator installers and repairer – Annual income: $58,710
10. Sales representative – Annual income: $58,580
11. Dental hygienist – Annual income: $58,350
12. Radiation therapist – Annual income: $57,700
13. Nuclear medicine technologist – Annual income: $56,450
14. Child support, missing persons and unemployment insurance fraud investigator – Annual income: $53,900
15. Criminal investigators and special agent – Annual income: $53,990
16. Immigration and Customs inspector – Annual income: $53,990
17. Police detective – Annual Income: $53,990
18. Police identification and records officer – Annual income: $53,990
19. Commercial pilot – Annual income: $53,870
According to the the U.S. Department of Labor, 2 out of every 3 jobs only require on-the-job training. You want
great jobs with no college degree? There you are.
If you’re competing for one of these jobs, going to college could actually hurt you. Why? Because the other
people competing for that job will have had 4 years of experience while you were hanging out at Starbucks
with your laptop and iPhone.
Connect
Now that you know what you want to do, make sure there is going to be a job waiting for you once you get
trained. Just because there are jobs that don’t require a degree doesn’t mean you’ll get one. Investigate!
Talk to people in the industry – Ask them about job prospects. Ask what they like and dislike about their jobs.
Ask what they think about the future of the industry. I guarantee that if you call 10 people in the industry,
7 will be more than happy to meet with you for a cup of coffee to give you a clear picture. Ask them how they
got into the profession, where they got trained and what schools (if any) they’d recommend for you. Most
important, ask who else you should meet to learn more. Meet with at least 10 people in the industry to make
sure you’re view is accurate.
If you don’t know how to get in touch with people working in the field, no problemo – see step 4 below.
Schools
Interview the various trade schools that offer training. Ask to speak with alumni currently working in the
industry. Ask if they started their careers without college. Then, when you meet with these folks, ask them for
a few other references – people who didn’t necessarily go the school they graduated from. Talk to those
people too.
While you’re interviewing the schools, ask about job placement assistance and success rates.
Remember that you only have to spend the money to get trained once but have a lifetime of earnings ahead. If
one school costs more but has a far better success rate, it could still be a better bargain.
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Number of Jobs that are quickly disappearing in the US..
By 2024,, 2030, the US Bureau of Labor Statistics projects a 28%
decline in postal-service jobs.
Mail carriers aren't the only ones whose jobs are disappearing.
Technology and market shifts have affected a wide range of fields.
READ MORE BELOW...
Jobs that are quickly disappearing in the US ...
Parking enforcement workers
They patrol assigned area, such as public parking lot or city streets to issue
tickets to overtime parking violators and illegally parked vehicles.
Number of people who held this job in the US in 2014: 9,400
Predicted number of people who will hold this job in 2024: 7,400
Projected decline: 20.8%
----------------
Desktop publishers
They format typescript and graphic elements using computer software to
produce publication-ready material.
Number of people who held this job in the US in 2014: 14,800
Predicted number of people who will hold this job in 2024: 11,700
Projected decline: 21%
-------------
Textile-winding, twisting, and drawing-out machine
setters, operators, and tenders
They set up, operate, or tend machines that wind or twist textiles, or draw out
and combine sliver, such as wool, hemp, or synthetic fibers.
Number of people who held this job in the US in 2014: 26,000
Predicted number of people who will hold this job in 2024: 20,300
Projected decline: 21.7%
---------------
Textile bleaching and dyeing machine operators and
tenders
They operate or tend machines to bleach, shrink, wash, dye, or finish textiles or
synthetic or glass fibers.
Number of people who held this job in the US in 2014: 11,700
Predicted number of people who will hold this job in 2024: 8,900
Projected decline: 23.9%
---------------
Postmasters and mail superintendents
They plan, direct, or coordinate operational, administrative, management, and
supportive services of a US post office, or coordinate activities of workers
engaged in postal and related work in an assigned post office.
Number of people who held this job in the US in 2014: 17,300
Predicted number of people who will hold this job in 2024: 12,800
Projected decline: 26.2
-------------
'Disappearing jobs in america'
Postal-service clerks - Postal-service mail carriers -
Postmasters and mail superintendents - Postal-service
mail sorters, processors, and processing-machine
operators -
They perform any combination of tasks in a post office, such as receive letters
and parcels; sell postage and revenue stamps, postal cards, and stamped
envelopes; fill out and sell money orders; place mail in pigeon holes of a mail
rack or in bags; and examine mail for correct postage.
----------
America’s Disappearing Jobs
Telephone operators
They provide information by accessing alphabetical, geographical, or other
directories. They assist customers with special billing requests, such as
charges to a third party and credits or refunds for incorrectly dialed numbers
or bad connections. May handle emergency calls and assist children or people
with physical disabilities to make telephone calls.
Number of people who held this job in the US in 2014: 13,100
Predicted number of people who will hold this job in 2024: 7,500
Projected decline: 42.4%


Top disappearing jobs in America
In case you were thinking of pursuing a career as a civil servant, here's one
you should avoid: mail carrier. According to CareerCast, a national job search
portal, it is the "most endangered" career based on the hiring outlook and
changing economic landscape.
Your backup plan shouldn't include newspaper reporter or flight attendant —
those jobs are disappearing, too..
--------------
The jobs that are vanishing - Evaporizing
professions have been shedding jobs at a fast clip. Since 1989, there are one
third fewer newspaper reporters. If you are in any of the 10 following fields, you
may want to explore a career switch.
If you're a new college grad, you might want to consider healthcare and STEM
jobs, which aren't being eliminated due to our robot overlords.

Disappearing middle class jobs...
The jobs that are projected to shrink range from office-related occupations such
as couriers and messengers, word processors, and switchboard operators to light
manufacturing machinists such as extruding and drawing machine setters,
operators, and tenders who work with metal and plastic.
"A lot of these jobs are disappearing because in part of the increased use of the
Internet and company intranets, new technology development, and robot
intelligence development.
--------------
Information clerks perform routine clerical chores such as maintaining records
and files, collecting and maintaining data, and assisting both internal and external
customers with information.
The job generally requires no more than a high school diploma and involves
short-term on-the-job training.
By 2022, the number of information and record clerk positions is expected to
decline by 16,700 jobs, as more and more of these clerical chores are automated
through the use of computerized retrieval or filing systems.
Even relatively newer technologies such as word
processing, data entry clerks, and computer operators
are being replaced by improved software and
processes.
About a quarter of word processing and data entry jobs and one of every six
computer operator positions are expected to be eliminated in the decade
ending in 2022.
--------------
Word processors and typists
> Projected employment change, 2012-2022: : -25.1%
> 2012 employment: 104,400
> 2012 median annual wage: $35,270
The ranks of word processors and typists, who have jobs similar to data entry
keyers, will dwindle through 2022 for many of the same reasons.
The number of word processors and typists is expected to drop 25.1% — the
second largest percentage decline of middle skill occupations 2022.
Part of the reason is executives and others who had relied on typists are now
doing their own typing and word processing.
These jobs carry a median annual salary second only to postal clerks and
computer operators among the top private sector jobs expected to decline
through 2022.
Make Money In These Real Estate Related Careers
You don’t need to invest in real estate to begin making money from it.
There are many paths that will help you earn income while you learn and grow, in preparation for when you are prepared to jump in and begin investing.
54.) Real Estate Agent, Residential- Many people often overlook this option, as it technically isn't an "investment," but becoming a real estate agent may
help you earn income each month while giving you the tools to supercharge your investing side-career.
55.) Real Estate Agent, Commercial – Primarily assists buyers in purchasing businesses, buildings, and other commercial ventures.
56.) Mortgage Lender, Residential – Working on the loan side will give you huge insight into the math that makes investing work – as well as significant
contacts to the big players in your area. Usually lenders work for one institution, such as Wells Fargo, Bank of America, or others.
57.) Mortgage Lender, Commercial – Same as above, but on the commercial side.
58.) Appraiser – An appraiser works with lenders to determine the value of a piece of property. Working as an appraiser will give you in-depth experience
in determining how much a property is worth.
59.) Title/Escrow Agent – The Title and/or Escrow agent makes sure all the parts fit together to make a sale happen. By working in this field, you can get
an inside look at what happens in the background during every real estate transaction.
60.) Real Estate Attorney – A lawyer who helps the investor stay protected and within the confines of the law.
61.) Real Estate Accountant – An accountant is able to see first hand the math behind a real estate investment.
62.) Contracting – Nothing will give you a better idea of what it takes to remodel a home than actually being the person remodeling it.
63.) Flip Project Manager – By working side-by-side with a house flipper as the project manager, you can be involved in every aspect of the deal, learn the
business from the inside, and make valuable relationships without investing any of your own money.
64.) Real Estate Marketer – A real estate marketer works with investors to find leads. From online PPC marketing to bandit signs and more, a marketer can
be a valuable part of an investment team.
65.) Property Manager, Residential – Many investors don’t want to manage their property so they turn to property managers to look after their property.
66.) Property Manager, Commercial – Most commercial owners don’t manage their own properties but rely on commercial managers to take care of their
investment.
67.) Resident Manager – Often times apartment owners and property managers will trade free-rent in exchange for a tenant to look after the place, collect
rent, do maintenance repairs, and essentially “manage” from within the complex. This can be an excellent way for a young person to learn the investing
game without losing any money (and actually making some).
Make Money When You Pay For Real Estate Investments
Real estate investing requires money, but doesn’t specify who’s money.
There are many ways to pay for investments and the list is only limited by your imagination and creativity.
69.) All Cash – If you have the cash, buying property with no mortgage attached can be a very stable and safe return on your money. While the returns
may not be as great as when using leverage (like a mortgage), the security is often worth it for many investors. Owning a property mortgage-free also
enables you to sell on contract whenever you'd like.
70.) Seller Financing – If a seller owns a property free-and-clear (no mortgage), they often times will be willing to finance the sale themselves. This
enables you to buy a property without the hassle and costs of going through a bank or other lending institution.
This is often an excellent way to acquire larger apartment complexes or commercial buildings, as the owners may want to continue receiving an income
but not want the hassle of dealing with tenants.
71.) 20%-25% Down Conventional Investment Mortgage – This is the classic method for buying a real estate investment through a bank. Come up with
20-25% down payment and the bank will finance the rest.
72.) 20%-25% Down Conventional Personal Mortgage – This is similar to the above method, but you can often get a better interest rate if the property is
your primary residence. This works best for duplexes, triplexes, and four-plexes.
73.) 3.5% Down FHA Mortgage- If the home is your primary residence, you can often use an FHA government insured loan that requires (currently) just
3.5% down payment. Again, this is only on your primary residence. This is applicable for single family homes up to four-units.
74.) 3.5% Down 203K FHA Remodel loan – The FHA also has a loan program for buyers who want to buy a property that needs work to fix it up. The
minimum down payment is (currently) just 3.5% of the total loan amount, and you are allowed to borrow the costs associated with remodeling the home
– both labor and material. This can be an excellent way to build substantial equity in a primary residence without needing to have a lot of money upfront.
75.) 10% HomePath Investment Mortgage- These loan types are only available on Fannie-Mae backed bank REOs, but can allow an investor to purchase
the home for just 10% down payment with other benefits.
76.) Small Partnerships – Partnerships are an excellent way to invest in real estate, where two parties (or more) join forces and bring their talents,
resources, and experience to the table to make a profitable investment. Perhaps you don’t have the cash to buy an investment but have the time and
your friend has the cash but no time – you can join forces and help strengthen the deal and make good money.
77.) Real Estate Syndication – When multiple parties join forces to buy a property it is known as a real estate syndication. This is an excellent
opportunity to purchase large properties such as apartment complexes, shopping malls, or warehouses. There are stricter laws governing syndication,
so be sure to consult with a real estate attorney.
78.) Use a Home Equity Line of Credit (HELOC) – If you have significant equity in your own home, you can often get a line of credit based on that equity.
That money can then be used to finance almost any purchase, including residential property. This is a great way to finance fix-and-flips or to get the
money needed for a down payment on a larger purchase. A HELOC is generally very low interest, but variable.
79.) Use a Home Equity Loan – Similar to the HELOC, the home equity loan is (usually) a fixed-rate second mortgage on your primary residence that you
can use to purchase anything you'd like – including real estate.
80.) Small Business Loans – Banks often will finance a line of credit or loan for small businesses- and this can include a real estate investment
company. Many banks (especially small, local banks) will even tailor a loan program just for you that help you finance properties.
81.) Self-Directed IRA Investing – Many people have IRA’s, but few know that you can actually use your IRA to invest in real estate.
82.) Whole Life Insurance – This little-known strategy can actually have a significant impact on your investing career. If you have a whole life insurance
policy, talk to your insurance agent about how you can borrow money against it to invest in real estate.
83.) Using Hard Money – Hard Money Lenders loan money based primarily on the Loan-To-Value of a property. While the points and fees can seem high,
they are often the best method to quickly finance a property. Be sure to always have an exit strategy, as hard money loans are typically good for less
than two years.
84.) Using Private Money – If you have friends, relatives, neighbors, or others who are looking for a better interest rate than the 1% or so they get from a
bank CD or saving’s account, they may be interested in lending that money to you to finance your acquisition. Generally, private money is based off the
relationship more than anything, but still secured by the loan-to-value of the deal. This is one of the best ways to finance real estate, but use caution
when there are personal relationships involved.
What to Look For
A key when considering property location is the mid-to-long-term view regarding how the area is
expected to evolve over the investment period.
For example, today’s peaceful open land at the back of a residential building could someday become a noisy manufacturing facility, diminishing its
value. Thoroughly review the ownership and intended usage of the immediate areas where you plan to invest.
One way to collect information about what are the prospects of the vicinity of the property you are considering is to contact town hall or other public
agencies in charge of zoning and urban planning.
This will give you access to the long-term area planning and make a determination how favorable or unfavorable to your own plan for the property.
Investment Purpose and Investment Horizon
Why It's Important
Given the low liquidity and high-value investment in real estate, a lack of clarity on purpose may lead to unexpected results, including financial
distress—especially if the investment is mortgaged..
Buy and self-use. Here you will save on rent and have the benefit of self-utilization, while also getting value appreciation.
Buy and lease. This offers regular income and long-term value appreciation. However, the temperament to be a landlord is needed to handle
possible disputes and legal issues, manage tenants, repair work, etc.
Buy and sell (short-term). This is generally for quick, small to medium profit—the typical property is under construction and sold at a profit
on completion.
Buy and sell (long-term). This is generally focused on large intrinsic value appreciation over a long period. This offers alternatives to
compliment long-term goals, such as retirement.
-------------
New Construction vs. Existing Property
Why It's Important
New construction usually offers attractive pricing, the option to customize, and modern amenities. Risks include delays, increased costs, and the
unknowns of a newly developed neighborhood.
Existing properties offer convenience, faster access, established improvements (utilities, landscaping, etc.), and in many cases, lower costs.
What to Look For
Here are some key things to look for when deciding between new a construction or an existing property:
Review past projects and research the construction company's reputation for new investments.
Review property deeds, recent surveys, and appraisal reports for existing properties.
Consider monthly maintenance costs, outstanding dues, and taxes.
Costs such as these can severely impact your cash flow.
When investing in leased property, find out if the property is rent-controlled, rent-stabilized, or free market. Is the lease about to expire? Are renewal
options favorable to the tenant? Who owns the furnishings?
Quality-check items (furniture, fixtures, and equipment) if these are to be included in the sale.
Overall Real Estate Market
Why It's Important
As with other types of investments, it's good to buy low and sell high. Real estate markets fluctuate, and it pays to be aware of trends. It's also
important to pay attention to mortgage rates so you can lower your financing costs, if possible.