When a real estate investor sinks tens of thousands of dollars and hundreds of hours of labor into renovating a home, it’s puzzling when the renos are complete and they decide to list the house before the paint has had a chance to dry! The house will often go to market without furniture or accessories of any kind, drastically lowering its full profit potential.

Thanks to popular television programs such as “Flip This House” and the multitude of similar shows a lot of people are tempted to try their own hand at house flipping. It’s a great way to make some money, if you have the right home in the right neighborhood at the right time. However, many of these real estate investors miss the mark when the time comes to list the house for sale.

While much care is taken to choose the perfect new kitchen cabinets and counter tops, tile for the bathrooms and gorgeous flooring for the living room, when these homes go on the market bare naked, money is being left on the non-existent dining room table.

It’s not just real estate investors that make this mistake. Real estate agents and home sellers who decide to list a vacant property are also missing out on the greater profit potential they could enjoy if the empty rooms were decorated by a home stager.

There are a few key reasons why it’s a very bad idea to list an empty home. Here are five points to consider:

1. People buy homes, not houses. When someone walks into a big empty house, it’s difficult for them to picture their lives there. An empty home can feel depressing and make prospective home buyers feel melancholy rather than excited about the possibility of moving in.

2. If there isn’t a point of reference such as a dinette set or a sofa in a room, it’s difficult for a buyer to judge the size of the space. Contrary to popular belief an empty room appears much smaller than a properly furnished one.

3. If there isn’t any furniture in a space, people have trouble visualizing how their own belongings will fit. If they aren’t sure, chances are, they aren’t buying. That’s even more true in a slow real estate market where buyers feel no urgency to buy and there are lots of homes to look at in their price range.

4. Upon walking into an empty room, the potential buyers’ focus goes from falling in love with the overall space to all of the small negative details that might otherwise not factor into their buying decision. A small stain on the carpet, a missing outlet cover, uneven drywall, or a poorly fit molding will be magnified in the eyes of the buyer when there’s nothing else to look at.

5. When a prospective home buyer is touring an empty house, or even a home with a handful of empty rooms, they often become distracted. They wonder why the house is vacant. When they begin asking themselves whether this is a divorce situation, or a case where the vendor was forced to move quickly, they are going to jump on the idea that the seller is desperate enough to entertain a low-ball offer. Who wants that?

So after investing a significant amount of time and money into a house you plan to flip, why not spend a bit more money before listing on a home stager so your flip will sell faster for more money?

By: Debra Gould

I work as a contractor for an internet marketing company that’s currently going through some difficult times. Around 80% of the employees have been laid off over the past three months and prospects for the future are iffy at best. Even though I’ve only been here a few months myself, it’s obvious from my outsider’s perspective what brought them to this position – they emphasize making money over building a business.

Although making money and building a business may seem like two sides of the same coin, the emphasis a company (including all the one person companies out there) places on each side of that coin can make the difference between doing well for a few months or doing well for a few years or even decades.

Making money requires little commitment, customer service, or passion. Making money is exploiting some temporary market inefficiency to buy low and sell high. Making money is selling a front-end product for a few dollars then bombarding your new customer with multiple up-sells and sales calls to attempt to get them to buy more before their buyer’s high wears off. Making money involves milking a prospect for every dollar they have as soon as you can with little thought to developing a long term relationship with them.

This makes making money a great short term strategy but, as the company I work for is now discovering, a lousy way to build a business.

We have over 200,000 customers who’ve purchased a product from us. We maintain no long term relationships with those customers beyond the month or so telemarketing barrage we subject them to after they buy. We basically try to get as much money from someone as possible within the shortest amount of time possible then move on to the next prospect.

The problem with this strategy and the issue that has caused the recent firing sprees the owners have undertaken is that we constantly have to be bringing in new customers to make this business model work. Because very little revenue derives from recurring purchases beyond that first month (where we ruin any potential long term relationship we could have with someone by selling them to death) we always have to be looking for new ways to find new prospects and, given our market share, that just isn’t as easy as it used to be.

Making money is great but don’t confuse it with actually building a business. A business is something tangible that attracts, respects, and retains its customers and, through that ongoing relationship, makes money by providing value to them. A business doesn’t have to start from scratch every month because it burned through the prospects it attracted last month. A business doesn’t see huge boom and bust cycles that cause periodic massive layoffs.

At least no business that I would want to be a part of…

By: Jackson Franklin

Money market funds are fantastic investments for those who want to put some money away without worrying about the risk that the stock markets bring. So while you cannot anticipate getting a large return on this type of investment, you can take comfort in having a stable return on your efforts. Before investing in money market funds, here are some things to consider.

Lets have a look at what money market funds are. A smart investor knows where he or she is putting their hard earned money before they invest it. Getting the right information is key to helping you make the right financial decision for you. So before you open an account, let this be a starter guide for you, but of course, talk to a financial advisor to make sure you get as many facts and figures as you can before making a decision.

Money market funds are very close to mutual funds but without the risk. The lack of risk of course means a lack of surprise when you get your statement. The stock market can be a rollercoaster sometimes, with money market funds, you can be assured that you’ll have more of your money. That said, there is no guarantee on your return.

There is a clear distinction between money market funds, and a money market account. A money market account is just a savings account that is opened at your bank. It offers a higher rate of return than your average bank account because they money is locked in for a longer period of time.

So between the money market accounts and a trading account, is a money market account. Professional managers invest in bonds, t-bills and government treasury notes. Smart money managers will trade these vehicles, knowing that when interest rates move lower, the bonds they currently hold are worth more and can be sold for a higher price before they expire. On the other hand, if interest rates move higher, then their position is not as valuable. By trading these traditionally static investments, money managers can usually get a higher return on investment than the average rate of return of their holdings.

Money market funds are ideal for those who value stability over a higher rate of return. If you are relying on your savings, this is the perfect investment vehicle. Even for those investors willing to take more risk, money market funds still play an important role. A good rule of thumb is to have a position in money market type investments that is equal to your current age. If you are 35, then 35% of your portfolio should hold these types of investments.

One final benefit to these accounts: you dont need a lot of money to open one up. Its perfect for your children’s savings accounts as well as your own portfolio. Talk to your financial advisor for more details.

By: Christopher W Smith