ETFs Explained

By Ahmad Hassam

ETFs mean Exchange Traded Funds. ETFs represent an ownership stake in a basket of underlying securities. This basket can represent a specific index like the S&P 500 or the Nasdaq 100, segment of market like the small cap, large growth stocks, sector like semiconductor, energy, travel or foreign currencies like Euro, Yen.

It can also comprise of bonds, gold, silver or other commodities. The value of the ETF is determined by the underlying securities. So you may be thinking this sound like a mutual fund.

ETFs are different from the Mutual Funds in a number of ways. ETFs can be brought and sold throughout the trading day like ordinary stocks. The unit price of ETF changes instantaneously unlike the Mutual Funds that are priced at the end of the trading day.

ETFs can be shorted, traded with a margin account and many trade options. ETFs can be traded using the market, limit and stop loss orders. There is no minimum for ETF purchases. So ETFs offer the diversification advantages of mutual funds and the flexibility of stocks.

Suppose you have a bullish opinion on the oil sector. After spending hours you will select the one company that you think is the strongest. You will have to analyze dozens of companies in the oil sector. One of the main advantages of ETFs is that they offer diversification.

ETFs provide you the benefit of diversification in the same way that mutual funds do to the small retail investors. You could choose the Oil Sector ETFs that would give you the advantage of mimicking some oil sector index. Instead of investing in a few stocks you have now invested in a particular sector just like investing in a mutual fund.

However, mutual funds are priced only once at the end of each trading day. The key advantage that ETFs hold over mutual funds is that they can be sold or bought at anytime of the day and their prices keep on changing in relation to the underlying assets.

A mutual fund charges management fees. It can also charge upfront, backend or other sales loads. Expense ratios for ETFs on average are not more than 0.4%. Some have even expense rations as low as 0.07%. This is the main advantage of ETFs over mutual funds. It is the fees charged by each. ETF expenses are low because they are passively managed and generally follow an established index.

Foreign currency trading is not just for gamblers or commodity traders. Currency trading has become extremely popular among the institutional investors, big companies and hedge funds.

Foreign currency has become a respected asset classification. It is so hot that now you can trade Exchange Traded Funds (ETFs) on currencies. As with any other product there are advantages and disadvantages of trading ETFs so you need to do your due diligence before making any investment decision. - 23217

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and forex. Understand The Forex Market. Learn Forex Trading!

Real Estate And Its Info

By Don Burnham

Sometimes, when you peruse property at an auction, you're issued a special deed or title which specifies that the property is redeemable. The title you hold is temporary; the title can, in a couple months, be bought back by the owner of the property. This type of title is defeasible, or temporary, because it can still be defeated. There are specific rules attached to this type of title.

Securing Redemption Rights

Whenever you make a purchase such as this, you can always buy the redemption rights from the owner -making the title you hold clear, or in simpler terms: permanent. It's always a good idea to consult your real estate lawyer with regards to handling this type of case as the laws differ from state to state. If you're not careful, you can and will get screwed over.

When purchasing real property:Purchasing real estate and property is a process. It usually starts with a loan, or for the purposes of real estate transactions, called a note.

The process of purchasing property usually starts with a loan. If you borrow $100,000 from a lender, that is a note. When you buy a piece of property, to make the property the collateral for that note, you get a mortgage or deed of trust. In a judicial state, it will typically be a mortgage. If the owner defaults on the note, the lender must take the owner to court to sue for payment. The mortgage attached to the note is the security instrument. If the owner does not pay, the property can be foreclosed.

Relationship of Notes to Mortgages and Deeds of Trust

3 parties are always involved in a deed of trust sale:

Trustor: otherwise known as the Borrower

Beneficiary: Whoever lends the money (aka mortgagee)

Trustee = Party handling the transaction

In a deed of trust, the trustee handles the foreclosure for the beneficiary; in a mortgage, a lawyer handles the foreclosure for the beneficiary. A mortgage and deed of trust are two separate and different things, but perform the same function -acting as security instruments until the property and loan is completely paid off.

There are two major strategies in the foreclosure business:

Equity Split

Equity Split

Sometimes however, should the property and case require it, there is the "subject to" transaction which bases purchase on the existing financing of the real property. - 23217

About the Author:

Want to know more about real estate? Log on to Don Burnham's website http://www.weknowthewayback.com and know everything from redemptions and foreclosure all under one roof.

What Millionaire Traits Do You Share With The Wealthy?

By Dan Gazaway

What opportunities do you feel you have to make millions? Making money is easier that many think, especially when it comes to making money on the internet. Everybody I associate with either is or wants to be a millionaire for a variety of reasons. Today there are literally thousands, if not millions; of ways to make a truck load of residual cash. Because successful people leave clues, we can learn a lot from the wealthy as most share some common characteristics.

All millionaires, with the exception of lotto winners, have mentors. Whether a millionaire has made their fortune in Real Estate, Internet or some other source; millionaires pay big bucks to stay current with their knowledge. Wouldnt you rather pay someone who has 20 years of experience in their field $50,000 to teach you what they know in 20 days? It buys you so much time if you can utilize the knowledge they teach you.

Aside from their amazing work ethic, most of the wealthy work more than 40 hours a week; Millionaires know how to leverage their time and resources to work more efficiently. They hire others, saving them hours of time. They hire out their weaknesses and focus solely on their strengths. Their business is their passion in life and dont feel it a drain of energy to constantly talk about it.

Another common trait the majority of millionaires share is the fact that they are very conservative in spending and aggressive investors. Most real millionaires arent flashy people who try to keep up with the Joness. They are often purchasing used cars, furniture and even clothing. They truly understand the value of the dollar.

Believe it or not, most millionaires are very conservative people. Most of them will never buy a new car or new anything. They understand the value of the dollar and dont want to waste hard earned money on things that depreciate in value. They will however be aggressive when it comes to investing in them and their business. - 23217

About the Author:

Starting your own business can be difficult unless you have the right knowledge. Learn how to make money on the internet today.

How to find a house in Costa Rica

By Randy Berg

The question of "how to find a house in Costa Rica" will need a lot of thinking to be answered; especially of you are an American. Costa Rica has various types of housing which can easily meet the expectations of people who would like to come there and invest in real estate. The prices of real estate in Costa Rica has seen a downtrend during the beginning of recession, however, now it has begun picking up mainly due to the demand.

Costa Rica has become a preferred choice for property investment for the Americans, especially since the prices of real estate have fallen down in America due to recession. Comparatively, the real estate in Costa Rica is blooming because of the demand for real estate in this country. A lot of Americans come here to find their dream nests.

The country of Costa Rica is divided into seven major provinces which are San Jose, Heredia, Cartago, Alajuela, Guanacaste, Puntarenas and Limon. Guanacaste, Puntarenas and Limon are preferred by people who would like to buy beach homes because these places have some of the most amazing beaches in Costa Rica and has a lot of "gringo" (foreigners) population. Places like San Jose, Heredia, Cartago and Alajuela are centrally located and well populated. Most of the native Costa Ricans, also called "ticos", live in these four provinces.

People should be very cautious while finding a house in Costa Rica. To the unaware investor, finding a house in Costa Rica can become a nightmare if certain important points are not kept in mind. The points that you need to keep in mind are listed below.

The first thing that you need to keep in mind, while buying a house in Costa Rica, is to have a "tico" (native Costa Rican) by your side. Ensure that the Costa Rican who you have chosen to help you in this endeavor is your friend who you can rely on to get you a good house in Costa Rica.

Once you have tico friend by your side, scour the area where you would like to buy your house thoroughly. It is recommended that you inspect the area minutely to ensure that you will not have any regrets once you make the purchase. If possible, you and your tico friend should stay in that neighborhood to understand the area really well. The more time you spend there with your tico friend, the better understanding you will have of the area.

After you have decided that the area is safe and suitable for you to live in, you should run a check on the title deeds of the property. You will need the help of your tico friend. Both of you will need to go to the office of Public Registry and try looking for the title information in their computerized database. Your friend needs to mainly do this since the data is mostly in Spanish.

Once all these things are in place, the next step is to negotiate the price of the property. As a "gringo", it is better that you don't approach the seller directly. Send your tico friend to help you negotiate the deal. Also, ensure that he/she doesn't negotiate the deal in dollars but in Costa Rican money. This will help you save a great deal of money.

Great! Now that you can answer "how to find a house in Costa Rica" better, it is time to proceed with your plans and make that much awaited trip. - 23217

About the Author:

Let Randy Berg help you find affordable properties at Costa Rica Real Estate. Interact with us through our forum.

What You Should Know About Short Sale

By Don Burnham

When an owner can longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure. One of those options is called a short sale.

Short sale is usually the last step taken by the bank to recover losses from a defaulted mortgagor. When lenders agree to a short sale, it means the lender agrees to accept less than the total amount due. They are willing to forgive a certain amount of debt or deficiency. However, not all lenders will accept a short sale or discounted payoffs, especially if it would make more financial sense to foreclose.

State laws vary, so consult your real estate lawyer to determine if your loan and case qualifies for a deficiency judgment or claim for a short sale.

The amount of time for a short sale to get approved is difficult to guess. In other words, the short sale process is long and tedious. The lenders in short sales business usually say that it takes 21 days time for the approval to come through.

It's hard to guess how long securing a short sale will take, but it's sure to be long, tedious, and tiring. Lenders usually say about 21 days or so for a case to be completely approved.

Not just for nonpayers, those who have never once paid a single installment can also avail -thanks in part to their negative equity. To short sell is to get out of a very rough and highly threatening financial situation, take it when you need it and take it if you can.

The process: The contract, authorization to release, and the addendum -these are the key parts of the whole short sale process, topped off with the warranty deed. Here we'll take a closer look at the contract and the addendum:

The process is quite simple to understand, it starts with the contract, then the authorization to release, and lastly the addendum. The warranty deed is also part of this whole process. What are really important to grasp in the process is the first two documents:

The Addendum

Addendum: Perhaps the most important document in the process, the addendum contains the basic and vital information regarding the property and the transaction:

Origination of the contract

Date

The names and other info pertinent to the parties involved

Address

It's better if both the simple address and the legal address are listed to avoid confusion.

Any investor, that is, the lenders, should know that in the foreclosure process, there is the opportunity to acquire bargain property -certainly a valid reason to agree to short sale. - 23217

About the Author:

Know about short sale an alternatives to bankruptcy or foreclosure only at Don Burnham's website http://www.weknowthewayback.com. Visit today to know all about short sale!