There is a basic behavior in investment choices known in the financial world as Risk Aversion. If a person is choosing between two investments with equal risk, he usually chooses one with a higher rate of return.

An off-shoot of Risk Aversion is that a rational person will only invest in an instrument of greater risk if the returns are greater, too.

The difference in investment return rates is sometimes called a “spread” and the historical spread between government debt and mortgage debt is somewhere near 1.5 percent.

However, the spread started to grow in July 2007.July 2007 marked the “official” start of the Credit Crunch and as mortgage delinquencies grew nationwide, so did the market’s perceived risk of investing in them.

The “spread” almost doubled in a year. On September7, 2008 the takeover of Freddie Mac and Fannie Mae was announced by the federal government. This action offered the “risk free guarantee” for mortgage debt. After the announcement of the takeover the “spread” decreased.

This is one reason why mortgage rates fell Monday and why they should continue to stay low over the near-term. With the U.S. government backing the mortgage market, there’s no room for the risk premium that helped keep rates high this past year.

It doesn’t mean more people will qualify for conforming home loans, but for the ones that do, financing should be cheaper.

News flash: Real estate is in a downturn. Prices are dropping. Does this mean that you should get out of Real Estate investing? No this is actually the BEST TIME to increase your property portfolio. When you are buy property it does not really matter whether the market is up or down unless you are trying to do a fast turn over. If you are holding for the long term then you have to deal with the market fluctuations with an inevitable upward trend at some point. If you can buy at the lower end of the cycle that is the best time to buy of course.

Now that the market is experiencing a downturn it is a great time to be buying. Just look at the foreclosure lists. You have a massive inventory to choose from and most are at below market value. Go for positive cash flow whenever you can. In other words make sure your rental income equals or exceeds your outgoing including mortgage repayments. If you have other income you may be able to stand an extra $100 or more per month to top off the mortgage but try to avoid it.

If the property market is rising you can be confident that the value of your investment is increasing. That is where your profit is and you should be able to sell if necessary. However, that was a few years ago when the market was more positive but now the reality is that the market has dropped and you need to be able to hold long term without any worries. It may take a few years before we hit healthy real estate selling conditions again, let alone a property boom.

Focus on positive cash flow and steadily increasing returns. This is a long term game. Property investing is a business. You need a decent return on investment and you need the rental return to cover or nearly cover the new mortgage expense.

Taking the current market woes in to consideration, the fact that now is a great time to buy and hold for the long term, goes without saying. Due diligence is the key for the next few years. Now is the time to look at buying for long term gains.

One example is when a foreclosed home sells for less money than is owed on it. The mortgage lender will sometimes accept this lesser amount, while considering the mortgage to be “paid in full”.

This is often called a “short sale” because the lender is “short” of the full amount owed.Prior to Thursday, the IRS treated the forgiven mortgage debt as taxable income. This added thousands of dollars to a foreclosed homeowner’s tax liability.

A $50,000 short sale, for example, could yield an additional $12,500 in taxes owed.After the bill’s passage, that tax liability is gone. No taxes will be owed on primary residence mortgage debt that is forgiven or written off by a mortgage lender.

On the other hand, there may be $650 million dollars lost to the IRS. The bill does limit tax breaks for selling vacation and/or second homes. These limits will affect homeowners.

If you think the Mortgage Forgiveness Debt Relief Act of 2007 will impact you personally, be sure to talk with your accountant.

It’s a fact of life that you will have to pay your taxes each year, and it’s equally inevitable that you’ll hear people complain about them. Those who are tired of grumbling about having to pay their own taxes will often grouse about how much money the rich manage to avoid paying. No matter how one looks at it, it seems unfair– those with less bear the greater part of the burden while the wealthy have lawyers working around the clock finding new ways for them to avoid paying their share. With this state of affairs, it’s no wonder that the lower and middle classes resent the rich.

Complaining of unfairness, though, changes nothing. The truth of the matter is that if you have money, you get to set the rules of the game to your advantage. If not, you’re basically out of luck. Our society has worked in this way for many years, and you’re fooling yourself if you expect it to change anytime soon. The rich will continue making more more and more money, going to fancy restaurants, and living in huge houses, as everyone else struggles to make ends meet. And what about the politicians in charge? They’re rich too, and many of them are pleased as punch to watch their wealthy buddies dodge their tax obligations.

In order to not be one of the many who are getting the short end of the stick, you’re going to have to step up and take the advantage for yourself. It’s true– you can get tax breaks like the rich do. You simply need to know how, and put forth the effort to get them.

Robert Kiyosaki, author of the “Rich Dad, Poor Dad” books, makes the sensible suggestion that those who are not rich but would like to be should watch what the rich do, and then do the same. You don’t really need to watch too closely, however, to learn the open secret of the wealthy– that secret is real estate.

Kiyosaki’s book “Cash Flow Quadrant,” is centered around the titular diagram, which consists of a square split into four quarters labeled ‘E’ (employee), ‘S’ (self-employed), ‘I’ (investing) ‘B’ (business). These four categories not only describe the four ways in which individuals make their money, but also provides insight into how an individual’s personality factors into the way in which they think about money.

According to Robert Kiyosaki, the real money is in the business and investment quadrants of the Cash Flow Quadrant.

You know the saying, “If you can’t beat ‘em, join ‘em.” That is good advice, especially if the guys you want to beat are the rich. It’s actually great news that they are getting so many tax breaks. That means that, when you become one of them, you will get those same tax breaks, IF you know how.

The path to riches is actually very simple; all you’ve got to do is start investing, or join the ‘I’ quadrant. If you have a high-paying job, you may be able to do this without leaving the ‘E’ (employee) or ‘S’ (self-employed) quadrants, but Robert Kiyosaki advises that you move into the ‘B’ or business quadrant, devising a system that will make you money regardless of whether you are putting time into it or not.

Investing, preferably in real estate– condos, rental property, land and the like– is your ticket to financial freedom.

We’ve all heard the housing stimulus package being discussed, argued and lobbied…it was in the air for months. But on July 31, 2008 the discussions took on a different perspective because the bill was signed and the package was in effect. It’s becoming known as one of the most important federal housing policies with a very wide reach including: LIHTC regulations, bonding capacity, national housing trust fund, foreclosure and credit crisis, GSE reforms and more.

The housing stimulus awards first time home buyers with a tax credit in the amount of $7,500 as a result of buying a new home. New home purchases made between April 9, 2008 and July 1, 2009. For the purposes of the tax credit a new home buyer is someone who has not owned a home in the previous 3 years. While the tax credit is not the only item included in the stimulus package now in effect, it is a very central item that has been given a lot of emphasis. Housing industry experts in particular note that the tax credit specifically could be just what is needed to initiate the flurry of home purchases that is needed to stimulate the market.

Those who oppose the bill point at the elevation of the national debt. They point at the guarantee given to two mortgage giants, Fannie Mae and Freddie Mac. They discuss the fact that these two mortgage giants are private companies with publicly traded stock. One of the main criticisms of the package is the inclusion of this guarantee that the government will provide monetary aid to the two companies as necessary. Critics argue that this is providing the opportunity for private profits without provide risk and loss. They argue that the risk and loss has become the responsibility of the general public. They note the estimated $25 billion that is to be spread out over the next two years in the federal budget and shouldered by the tax paying public.

The National Association of Home Builders was one of the main supporters of the stimulus package believing that it is exactly what the industry needs to restore buying confidence and stimulate the market by giving new home buyers a reason to buy now.

When the current state of the market is considered (astronomically high numbers of foreclosures) the stimulus package becomes even more obviously appropriate. For example, at the end of March 2008 there were in excess of 210,000 residential properties listed as foreclosures in California. As a result of the stimulus package, California will receive $365MM direct funding as well as leverage over $780MM through additional grants. This will lead to an additional 6,500 new jobs and $10 billion in property taxes returned.

Owner of Montalbano Homes, Anthony Montalbano, believes that “the stimulus package will provide the housing industry with the chance to get back on solid footing after the explosion that occurred in recent years. The importance of the housing industry to the economy as a whole will be apparent as the boosted buyer confidence trickles through the system and aids the general economy.”

Experts, industry leaders, politicians…everyone has their own view of the stimulus package, but one thing can’t be argued. That one item that is indisputable is that fact that home buyers have a unique opportunity through June of 2009 to take advantage of the offered tax credit. It’s not difficult, it’s not out of reach and while it’s for a limited time, it isn’t an obscenely short period of time. Buyers in the know will recognize the opportunity and take advantage of it before it’s too late.

More and more investors are ready to take a dive and start investing in real estate. If you are one of the investors you should start thinking about investing in the Dallas real estate market. Dallas is quickly becoming one of the hottest and fastest growing cities in the U.S. which makes Dallas real estate market an excellent place to for investors.

Investing in prime Dallas real estate could make you a quick profit right away. Dallas real estate is becoming more valuable by the day. Investing in some historical downtown Dallas real estate or some of the nicer homes along the edge of the city will probably bring a big payoff to you on a later day when other buyers and real estate developers are jumping on Dallas real estate and buying up all the property they can afford.

You might be a first time investor. If you are buying some Dallas real estate for the first time then you should take some helpful tips from one of the qualified Dallas real estate agents before attempting to buy a property. Qualified Dallas real estate agents will help you determine what areas of the city are the most popular and what properties are on the edge of becoming in the “in” part of city.

Buying some Dallas real estate in an up and coming neighborhood, even rental property, can be a nice way to make some money in the Dallas real estate market. Buying real estate is one of the safest investments that you can make because property almost always will grow in value instead of decline in value and Dallas real estate is practically a sure thing when it comes to property value. It’s very hard not to make money when you invest in Dallas real estate.

Another alternative is investing in rental properties. Demand for rental homes is growing by the day. Why? There is a great demand for quality rental properties in the most popular areas of the city. There are new businesses springing up that attract a large amount of workers from other cities. Also, there are other companies moving their operations to Dallas which results in a city that is getting over run with new employees of these companies who are looking for good Dallas rental homes. These new workers are used to having certain amenities and they will pay for top dollar for these amenities especially if they are coming from larger cities where the cost of living is higher like LA or Miami.

If you are interested in buying Dallas real estate to turn into a rental property then Dallas has room for you. You can charge a hefty rent because chances are that you’ll be able to rent that property to one of the employees of the new businesses in town that is used to paying a large amount for rent. Most of them will think that the apartment, condo or house is a real value even though you are making a greater profit. That’s a win-win situation for everyone. So remember that if you ever thought about investing in some Dallas real estate you should consider investing in Dallas rental homes. Rental properties can be an excellent way to make fast and easy money for an investor. If that’s not an avenue you want to take then consider flipping it for a quick profit.

If you are a first time homebuyer, you may need some assistance going through the mortgage process to buy some Dallas real estate.

You should go through a Dallas real estate agent to buy your home if it’s the first home that you’ve ever bought because a good Dallas real estate agent can really help you through the process of applying for a mortgage, getting a home loan and buying a new home.

However, there are some simple steps you should take on your own to more easily get a home mortgage to buy your next Dallas real estate. One of the first things you need to consider when getting a home loan is paying down your debt.

The most debt that you can pay off the better off you will be when it comes to getting a home loan to buy Dallas real estate. When you apply for a mortgage the first thing a lender will look at is your credit report. The more debt that you can get removed from your credit card the better you will look to a lender.

It can be hard to pay down debt and try to save for the down payment on a home but there are ways that you can pay off some smaller bills while you are saving money for a down payment on some Dallas real estate. The first thing that you need to do in order to accomplish both of those goals is to look at your household budget and see what things you can cut out so that you will have extra money to pay off as many bills as possible and start to save for a down payment on your new house.

Try cooking more at home, as eating out can be very costly. Try using coupons and shopping in bulk. Do you buy lunch when you’re working? Buying lunch can easily cost $65 or more per week, so start bring lunch from home. A trip to your local discount store for snacks can easily save 3-4 dollars each day at the vending machine at work. Try drinking the coffee that your employer usually provides instead of stopping at the trendy coffee shops on the way in to work. The new trendy consignment shops may be a better option for new clothes than the mall, and with gas prices on the rise, try biking or walking more.

Guess what? When doing those three simple things you can save you more than $200 per week. You can put $100 or more towards lowering your debt and saving for a down payment for your next house. There are many other avenues to take in order to cut your costs so that you can save more cash for paying off your credit cards and for your down payment of your next Dallas real estate purchase.

If you need new clothes for work shop at a thrift store or at Goodwill instead of at the mall. Try walking or biking to work instead of driving to save gas and wear and tear on your car. And the biggest money saver of all is to start using coupons and shop in bulk when you shop for food. Food accounts for the biggest part of most people’s budget, so if you can significantly cut your food costs you can save a lot of money.

There’s got to be a difference between the type of person who strike it rich and the average Joe, but what is it, really? This question is an important one, and it should be given the thought it deserves. There are plenty of easy, oversimplified responses, including, “Their family is rich,” “They won the lottery,” or “They have great careers.” But these factors can’t always be controlled by the individual experiencing them– is wealth really dictated by the luck of the draw?

The truth is that not all of these lucky people can be truly considered to be rich. It is the belief of “Rich Dad” author Robert Kiyosaki that the true measure or wealth isn’t really the amount of money you take in, but how much you manage to keep.

Kiyosaki’s father, the titular “Poor Dad,” was no bum; his work earned him more than enough to live on. The problem was, however, that none of his money was left at the end of each quarter

The good news for you, is that becoming rich has less to do with external factors like your job or whether you were born a Rockefeller, which you can’t control, and more to do with internal factors which you can.

That’s right, folks– becoming rich has more to do with how you think than who you are and what you’ve got.

Kiyosaki’s “Rich Dad” used a graph entitled the Cash Flow Quadrant to explain this principle, separating people into four groups. ‘E’s and ‘S’s, or employees and those who are self-employed, occupy one half of the graph. ‘B’s and ‘I’s, or businesspeople and investors were on the other. Robert Kiyosaki claimed that, in addition to representing the source of a person’s cash flow, these categories served as a window into how different type of people think about money.

Are you beginning to see? The people in the four quadrants are not there by chance; they are there because they experience life in fundamentally different ways.

“The four people in the four quadrants are four totally different people,” Kiyosaki says in his book “Cash Flow Quadrant.” “The four people found in the four different quadrants are different mentally as well as emotionally.”

What’s more, Kiyosaki says, it is that emotional difference that determines to which quadrant a person is drawn. And, he says, you can always tell which quadrant a person is coming from simply by listening to what they say. If you hear a person talking primarily about their benefits and job security, then that person is coming from Kiyosaki’s E or employee quadrant. He also goes on to say that it is perfectly all right to live your life in the E quadrant if security is indeed the most important thing to you. But, he adds, the E quadrant is the most difficult quadrant from which to become rich.

Though the revelation that wealth simply depends on your attitude and personality may initially seem rather intimidating, you should take it as encouragement. Even if you don’t see yourself as a lucky person right now, rest assured that you can, if you have the drive, become wealthy.

Real estate is a great place to start for prospective investors; it’s what made “Rich Dad” rich in the first place! In order to become a real estate investor and start building your fortune, all you have to do is make a decision to stop working for a paycheck, and put your paycheck to work for you.

In the summer of 2005, sub-prime mortgage lending was at its peak. Rates were relatively low and lending guidelines were relatively loose.

Borrowers typically chose between two main products of sub-prime loan. They either locked the initial rate in for 2 years or for 3. The predominate choice at the time was the 3/27.

The 3/27 would have a teaser rate that remained fixed for 3 years then begin adjusting. It would usually adjust to the 6-month LIBOR plus a margin of 5.999 percent. This caused rates to sky-rocket at the time of adjustment. Further problems occured when the loan now became a principal and interest mortgage instead of interest only.

Because the summer of 2005 was the peak of sub-prime lending, it makes sense that the summer of 2008 is the peak of sub-prime adjusting.

Currently the 6 month LIBOR stands around 3.15 precent. This can be relatively good news for many people with sub-prime loans. It means that the adjustment will be somewhere in the 8 - 9 precent range which is down from 11 - 12 percent not long ago.

Many borrowers faced a 10.3 - 11.3 rate adjustment last year when the LIBOR was higher.

Certainly interest rate and payment increases of any amount can cause financial hardship. If you are a sub-prime borrower and are having difficulty be sure to contact your lender before you start missing payments.

Chain saws are a very useful tool to keep around the house, they are used to cut down trees, cut up fire wood, make log furniture, and trimming brush. There are a number of different types of chain saw available, so which type is best for you? Well there are a few things that you should consider before shelling out any money.

Styles of Chain Saws

Consumer chain saws are only targeted at people that want to use them on an occasional basis. These do have some pretty advanced features which are only normally seen on the professional models however they are much cheaper. The reason for this is because they are not as powerful, however for occasional use they might be fine.

Standard chain saws look like the professional models, they are much more powerful than the consumer models but are cheaper than professional ones. These are well suited to general use. These are great for people that own a lot of land and need to cut down trees on a regular basis. These are also ideal for use on the farm as they are durable and powerful.

Professional saws are just that, they’re designed to be used every day as part of someone’s job. They are very heavy duty and can put up with daily use. You can purchase heavy duty or light weight units depending on your aim.

Major Manufacturers of Chain Saws

Husgvarna are a very popular chain saw manufacturer, they produce saws in a number of different styles and sizes. I recommend the 137 model as it is fairly cheap but good quality. This saw is quite small and easy to handle, it’s great for light duty purposes around the home.

If you want a more professional model then I would go for the 346XP model, this is much more powerful and has a slim line body. This chain saw is available in several different sizes. This is a great chain saw for heavy duty use. The largest saw which Husgvarna produce is the 3120, this is available up to fifty inch bar size. This is a professional chain saw and can cope with rough treatment.

Another very well known manufacturer of such chain saws is Stihl. This German company produces a number of different models. The M180 is well suited to home use, it has the easy 2 start function and adjusting the chain is very quick and easy. This chain saw is very light weight, portable and easy to operate.

If you want to use this for farm use then you should consider the MS290. The chain tension can be adjusted easily through the side access. These chain saws are very reliable and can be used in summer and winter due to the intellicarb carburetor. If you want a heavy duty chain saw then you need to look into the MS880 Magnum pro, this is designed to be able to cope with daily use.

Things to Consider When Choosing Chain Saws

Before buying a chainsaw you need to consider a few important points, firstly how often will it get used? If you will use it on a regular basis then you should you should consider a professional model. If you’re only going to use it occasionally then perhaps a consumer model saw will do the job.

Decide which bar length you will need, this depends on the size of trees which you will be cutting. You can normally cut a tree which is double the length of your bar.

You must also consider the size of the engine, the larger the bar, the larger the engine you need. However bear in mind that the larger the engine the heavier the saw will be.