Ready To Work At Home?

If you are ready to work at home, the first step is to not to quit your current job yet. Unless you don't have a job, and then you are ready to begin. Many people would love to find the perfect work at home job. The truth is that there is no perfect work at home job. What there is are a lot of jobs, opportunities and ways to make money working from home available.

With the advent of computers, a work at home job has become a reality for many people. Computers have made it possible for nearly anyone to find a work at home job if they are willing to put forth the effort.

A work at home job may be able to be done in your pajamas, but it does not mean that the job will not entail actual work, and it does not mean that you will get paid to do nothing. It does mean that you can have a more flexible schedule and that you don't have to dress up to go to work or commute in traffic every day.

If you are serious about working online at home, you MUST start by following these important steps:

Search the net to find as many work at home opportunities as you can.

Sign up for some work at home newsletters to gain more information.

Network in chat rooms and forums with others who are doing the same thing. Chances are you will find something that is suitable for you as a work at home job.

Be skeptical of offers that sound too good to be true, and use your common sense when looking at work at home job offers.

Be wary of work opportunities that charge large membership or start up fees. There are plenty of online job prospects that require little funding or are totally free.

By following these steps you are providing yourself with the right tools to make an informed decision about working at home on the internet. So get started and good luck!!

Monday, August 4, 2008

Cash On Cash Return

The cash-on-cash return of an investment property is a measurement of its cash flow divided by the amount of capital you initially invested. This is usually calculated on the before tax cash flow, and is typically expressed as a percentage.

Cash-on-cash returns are most accurate when calculated on the first year's expected cash flow. It becomes less accurate and less useful when used on future years because this calculation does not take into account the time-value of money (the principle that your money today will be worth less in the future).

Therefore, the cash-on-cash return is not a powerful measurement, but it makes for an easy and popular "quick check" on a property to compare it against other investments. For example, a property might give you a 7% cash return in the first year versus a 2.5% return on a bank CD.

The cash-on-cash return is calculated by dividing the annual cash flow by your cash invested:

  • Annual Cash Flow / Cash Invested = Cash-on-Cash Return

Let's make sure we understand the two parts of this equation:

  1. The first-year cash flow (or annual cash flow) is the amount of money we expect the property to generate during its first year of operation. Again, this is usually cash flow before tax.
  2. The initial investment (or cash invested) is generally the down payment. However, some investors include their closing costs such as loan points, escrow and title fees, appraisal, and inspection costs. The sum of which is also referred to as the cost of acquisition.

Let's look at an example. Let's say that your property's annual cash flow (before tax) is $3,000. And let's say that you made a 20% down payment equal to $30,000 to purchase the property. In this example your cash-on-cash return would be 10%.
  • $3,000 / $30,000 = 10%

Although the cash-on-cash return is quick and easy to calculate, it's not the best way to measure the performance and quality of a real estate investment. Future articles will introduce you to better ways to evaluate your real estate investments.


Marco Santarelli is an investor, author, and president of Norada Real Estate Investments - a national real estate investment company offering investors well-researched investment opportunities in emerging US markets.

Visit http://www.NoradaRealEstate.com for our FREE report: 10 Best Real Estate Markets.

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