THE ENTREPRENEURS’ WAY OF THINKING

 

O’LEARY PATH AS AN ENTREPRENEUR
The success of an entrepreneur is not built on just by a day.
An entrepreneur goes through alot of endurance to meet that 1st million dollar. Unless you have inherited this much.
It got me thinking how do the Shark tank stakeholders make it to the level of lending to potential entrepreneurs and I did abit of research on the background of shark tanks.
Most of them had a rough time to reach a point where they have enough to invest in exchange of stock holding.
I consider them to be real mentors to that little one who always dreams to be wealthy from entrepreneurship point of view.
Kevin O’Leary a shark tank stakeholder was born in 1954 in a family which embraced business.He learnt most of his business intuition from his mother. She taught him key business & financial insight from an early age. These became Kevin’s core philosophies & the pillar upon which he would one day build his empire.
THE TURNING POINT
Kevin’s approach to business went through major changes as a teenager.During his 2nd day on the job at a local ice cream shop, his boss came into the front of the store where Kevin was scooping ice cream. She looked at Kevin & asked him to perform a task that he wasn’t expecting. What happened next had a profound effect on Kevin, one that stayed with him for the rest of his life.
FOUNDATION OF AN EMPIRE
As a university student, Kevin innate business sense led him along several different paths including some very unusual, very entrepreneurial ways of making a profit.
Not long after he finished his MBA, Kelvin had a meeting that changed his life forever.He met a man who had a strange idea for a software product. An idea with huge, high-profit potential that Kevin immediately recognized. After years of ups and downs, sacrifices, challenges & lessons learned not to mention a critical phone call that Kevin nearly cost him everything. The opportunity that he saw eventually turned into a computer software giant that was acquired for more than $4 billion.
Kelvin after obstacles & legal dispute. Eventually found himself on television, quickly becoming a sought-after host & personality on a range of shows including discovery ‘s Project Earth, CBC’s, Dragoon’s Den & ABC’s Shark tank.
Kevin has since launched O’Leary funds, an investment company; O’Leary fine wines; & a best selling book series on financial literacy.
Kevin O’Leary knows that to get rich, you need to get financially literate first.

REAL ESTATE INVESTMENT

Real Estate is a promisable investment portfolio for an individual

Investing in real estate is becoming increasingly popular over the last fifty years and has become a common investment vehicle. Buying and owning real estate market is the way to go for simple understudying but in my article I will go behold this when we talk about the profitable real estate.

The normal practices are buying a property and renting it out to a tenant. The owner is responsible for paying the mortgage, taxes and costs of maintaining the property. The landlord will charge enough rent to cover of the aforementioned costs. However these calls for patience and with time the property appreciate in value leaving the landlord with a more valuable asset.

Real Estate Investment Groups

If you want to own a property but don’t want the hassle of being a landlord, real estate investments group maybe the solution for you. A company will buy or build a set of apartment blocks and then allow investors to buy them through the company, thus joining the group. A single investor can own one or multiple units of self-contained living space, but the company operating the investment group collectively manages all the units, taking care of maintenance, advertising vacant units and interviewing tenants.

In exchange for this management, the company takes a percentage of the monthly rent.

There are several versions of investment groups, but in the standard version, the lease is in the investor's name and all of the units pool a portion of the rent to guard against occasional vacancies, meaning that you will receive enough to pay the mortgage even if your unit is empty. The quality of an investment group depends entirely on the company offering it.

REITs

A Real Estate Investmnet Trust (REIT) is created when a corporation (or trust) uses investors' money to purchase and operate income properties. REITs are bought and sold on the major exchanges, just like any other stock. A corporation must pay out 90% of its taxable profits in the form of divideds, to keep its status as an REIT. By doing this, REITs avoid paying corporate income tax, whereas a regular company would be taxed its profits and then have to decide whether or not to distribute its after-tax profits as dividends.

Real Estate Trading (flipping properties)

Real estate traders buy properties with the intention of holding them for a short period of time, often no more than three to four months, whereupon they hope to sell them for a profit.

It is based on buying properties that are either significantly undervalued or are in a very hot market.

Pure property flippers will not put any money into a house for improvements; the investment has to have the intrinsic value to turn a profit without alteration or they won't consider it. Flipping in this manner is a short-term cash investment. If a property flipper gets caught in a situation where he or she can't unload a property, it can be devastating, because these investors generally don't keep enough ready cash to pay the mortgage on a property for the long term. This can lead to continued losses for a real estate trader who is unable to offload the property in a bad market.

A second class of property flipper also exists. These investors make their money by buying reasonably priced properties and adding value by renovating them. This can be a longer-term investment depending on the extent of the improvements. The limiting feature of this investment is that it is time intensive and often only allows investors to take on one property at a time.

Leverage

Most "conventional" mortgages require 25% down, however, depending on where you live, there are many types of mortgages that require as little as 5%. This means that you can control the whole property and the equity it holds, by only paying a fraction of the total value. Of course, your mortgage will eventually pay the total value of the house at the time you purchased it, but you control it the minute the papers are signed.

We have managed to look at a few of real estate investment and within them there are countless variations of real estate investments making a careful choice and weighing the costs will give you the expected benefit there in.

INVESTMENT IN AFRICA

A portfolio by Dubai Chamber of Commerce and Industry, opening in Ghana, Ethiopia and Nairobi.

To the African soil

The United Arab Emirate (UAE) is intending to invest on the African soil for a number of reasons. The 29% of the total UAE GDP was the oil sector while the remaining 71% of UAE total GDP is non-oil output in the year 2014. UAE is aiming to diversify its export markets globally. UAE have overseen a risk in high volatility of international commodity prices and it poses a macroeconomic instability risk.

Over the last 15years Africa has emerge as an attractive investment destination because of positive demographic factor, the supported robust Real GDP growth,expanding urbanization and to the rising number of households with discretionary spending.

The estimated consumer spending is projected to reach $1.4 trillion in 2014. More than 100million households have sufficient income to spend on discretionary goods and services as well as the basics. The African continent is viewed to be predominately a rural continent however; its cities are a growth economic force. 40% of the African’s one billion people live in cities it is projected with the increase in the demographic factor in our cities today in Africa it is forecasted that the GDP is bound to rise to a combination of $1.7 trillion i.e. in 18 top most cities in Africa.

The infrastructure need for it improvement in Africa need increases as the investors settle in the African soil. More roads, buildings, water systems and much more infrastructural requirement.

The economic world in Africa is becoming a great concern as it arouses the interest of the majority investors. The business and the regulatory reforms developments, the continent is offering a lucrative business opportunity in many sectors including among other agro-processing industries, such as food and beverages manufacturing,

leather goods, textiles, and wood products.

The African land is offering attractive tourism which is a strong investment sector, construction, retail market and pharmaceutical market.

Kenya is the market for Dubai’s product

Trade in Kenya is stable and supportive of the strength of the two countries. Kenya is now the fifth largest economy in sub-Saharan Africa and offers an attractive combination of growing economic groundwork and a vibrant market economy. The country is strategically located and a member of East African Community (EAC) and Common Market for East and Southern African (COMMESA), hence a gateway to East Africa.

Initially the giant Dubai Chamber of Commerce and industry (DCCI ), which represents the UAE has investors, has recently opened liaison offices in Ghana and Ethiopia and targets to open another in Nairobi early next year as part of a strategy to Grow business and investment ties with Africa. Kenya still retains at position 3 as Dubai trade partners in Africa in 2014. Let see what Dubai prospectors has for Kenya and Africa at large.

Economic dynamics.

With the coin

I am fascinated by the world today. The economic world around me not to leave out you as well. I intend to update you of the wonders that come along with creative minds. Minds that imagined of that coin.

The coin that buys almost everything. People can’t survive without the coin in their hands. If they have enough of it they would never bother to work day and night to have an extra coin. The worst part is, if you had no single coin in your pocket and you need to meet one of your most basic needs which is to feed. You need that meal to survive. It is hectic to be hungry. What about having no clothing. You are even ashamed to imagine yourself out there on your birthday suit. I also don’t want to imagine it. Too many basic needs. All need satisfaction. The economy I am talking about goes behold the coin.

I should learn

You don’t want to go crazy because of lacking a penny in your pocket so learn from experience. Learn the economy you are in. learn to think ahead.

When I thought about my economy, I could see lots of opportunities to build my future on but all sort of barriers lie ahead of me. It’s time to learn to overcome that obstacle that lies ahead of you or sooner you will be described as poor.

From the dark

 I am your light from the dark. To open your eyebrows to see the coin you would have earned. The coin you can earn in your immediate economic world. You are at the disposal of million opportunities. You only have to reason, to see it and to feel it. I am your host David