Industrial revolution

Effects: Immigration

Railroad companies promising a ticket to land lured Irish, Chinese and other immigrants to America.
When they could not get to the train on time they stayed in the city and worked to feed their families.

Some worked for the railroads and others in factories, but almost all worked for very low wages to keep their jobs.

Immigrants were the cheapest workers so many American citizens were kicked out of their jobs for the cheaper labor.


Central Pacific hired many Irish immigrants while Union Pacific hired many Chinese.

working was hard and many accidents occured in 1888. Casualties from railroad work mounted to 2,000 killed and 20,000 injured.

Republicans fought to get immigrants equal rights, and higher wages.

Industrial revolution


Railroads and Expansion:
The Industrial Revolution took a toll on America for better and for worse. This was the starting point of the new America and the years to come. More efficient processes, such as the Bessemer process was used to produce better quality steel, were used to help expand our railroads and population.

The need for more efficient work was filled with new machines. The new inventions made work easier, faster and more efficient.  Many jobs opened up causing immigrants to come looking for work. The work force not only opened up to immigrants and men, but children and women as well. Laborers worked long hours with little pay and poor conditions.  Angered against their conditions many laborers began labor unions and strikes. Eugene Debs was the head of the IWW,  Industrial Workers of the World, a group of radical unionists and socialist in Chicago. These strikes would later lead to the passing of laws against child labor and equal pay for equal work. Along with the voices of working men many women like Mary Harris Jones led strikes to better the lives of laborers.

 IWW demonstration in New York City

Robber Barons and The Grange:
As new industries formed so did Robber Barons such as Carnegie and Rockefeller who both used vertical and horizontal integration to form huge industries to control the markets and became extremely wealthy. The Grange, organization of farmers attempting a social outlet and an educational forum for isolated farm families, tried having government control over railroads. The Grange was angry because of the unfair distribution of land to railroads and the Robber Barons causing farmers to go into debt. Later the Interstate Commerce Act was passed, but was proven too weak to control the railroads.

In all the lingering effects of the Industrial revolution were both positive and negative. The new inventions created new jobs for men, women and children alike. The rapid growth of railroads caused for westward expansion and creation of new cities such as Chicago and Seattle. With the spreading of people also spread ideas enriching our culture. The Industrial Revolution also caused great wealth and poverty in America arousing many protests and reforms.
Commercial real estate

Property Investment For Beginners

Traditionally, one of the best high return investment options has been investment of money in real estate. While the property prices may go up and down in the short term, over the long term, they have always appreciated substantially. The ownership of a piece of land is an investment you can eventually bank upon, as it acquires value through development of the areas in its vicinity. With the falling of property prices, many people will advise you to stay away from investing in real estate. However, if you look at it from a different perspective, you will see opportunity in this situation.

Properties which were once beyond your budget reach are suddenly within your range. For those of you who have been smart enough to save money throughout the past bearish decade, now is the time to invest and take advantage of the opportunity, which has presented itself. In this Buzzle article, I shall share some tips on real estate investment for those of you, who are smart enough to recognize the opportunity this recessionary background has presented.

Tips on Property Investment for Beginners

Any investment comes with its share of risks, which cannot be entirely eliminated but lessened through research and planning. Same goes with real estate investment. You have to do your homework and get your research right to end up on the winning side. Here are some tips for beginners.

Know about the Range of Real Estate Investment Options
Firstly, you need to begin with a study of the varied range of investment options in real estate, which you may consider. You may invest in buying residential houses, commercial properties, condos, apartments or purely specialize in land investment. There are a lot of options out there and you need to consider the entire range, to decide which would ideally suit your investment budget and align with your future plans.

Invest to Sell or Invest to Rent out Properties
There is the important decision of deciding whether you buy to rent or buy to sell again for a profit. The former option is open, if you buy residential properties. You can create a regular income source for yourself by investing in rental property.

Otherwise, you also have the option of entering the house flipping business, which is buying old houses, renovating them and selling them back again for profit. You may buy a piece of commercial property, hold it till the prices rise and sell it to make a substantial profit.

It’s All About Location
Remember when it comes to property investment, it’s all about location. The price of any real estate property is largely a function of location. The localities decide the price range and therefore you need to research the price trends according to location, before you make a purchase.

Research & Do the Math
Once you have decided on what kind of property you plan to buy, what purpose you intend to buy it for and are clear about the amount of money you are willing to spend, start researching real estate listings to find properties that fit the bill. Calculate the returns you plan to gain from the investment and the amount of mortgage loans you can afford to apply for.

Networking With Real Estate Agents
A real estate agent can make your job easier in finding properties that are exactly what you are looking for. Creating a good network of real estate agents who can point you towards good investment properties is essential. Real estate brokers can handle the legal affairs associated with purchase and sale of property for you. They can make an offer to owners on your behalf and negotiate on your behalf.

Making Financial Arrangements for the Investment
Once you have decided on the property and made an offer, you need to arrange for the money you plan to invest. A pooling up of your own savings and a mortgage loan if needed, can cover the total investment amount. Talk to financial institutions and mortgage brokers for financing options.

The key to making good investment decisions in real estate, lies in research. For a property, the location is the most important aspect of consideration and all other points come later. Good location, with access to resources in its vicinity, creates an opportunity for eventual growth of property value. With a pooling in of your own savings and a mortgage loan, you can buy strategically located properties and rent them to generate revenue, or sell them as the prices appreciate substantially. You can’t eliminate risk, but minimize it by putting your money into properties with high potential of price appreciation. Get a good real estate agent to advise you and a mortgage broker to assist you in the arrangement of finance.
By Omkar Phatak
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Commercial real estate

Investment Property Financing

Have you ever considered real estate investment as a measure to generate capital gains or rental income? An investment property promises good appreciation in the coming years and a lot of people are applying with banks, mortgage money lenders, etc., in order to finance their investments. Loans are the most common forms of investment property financing. There might be cases when one is able to borrow from family and friends, but more often that not banks and private money lending agencies are the institutions one looks forward to while thinking about financing a property. There might be some real estate investors who have got enough funds to buy the property outright, but a majority of prospective investors look for the various sources of financing.

Investment Property Financing : A Few Guidelines

While you may be all excited about owning properties and increasing your monthly income, there are certain strategies that you should know before obtaining an investment loan. Some of these strategies are

Knowing the purpose are you borrowing the money for. While talking to your lender make sure that you reveal the true motive behind the financing. If it is a second home or you want to put it up on rent, let the lender know about it.
While calculating the mortgage payments, the plan of action for most people is that they pay off the monthly installments through the rent they receive. While this is good business planning, things can go wrong if you are not able to find a tenant. So, ensure that you are in a position to pay regularly from your funds so that things like foreclosure, bad credit rating etc., can be kept at bay.

The sub-prime crisis has made the financing of the down payment a bit difficult, however if you have a good credit score or can put up a collateral, then the down payment would not be that big a concern. You can also use the equity in the house for making a down payment.
A small chink in the armor can make things complicated. So, before obtaining the loan, carefully check your IRS returns, credit card statements, other debts etc.
If you are fairly new to real estate investment, take advice from realtors or mortgage professionals who can guide you with various financing options. Once you are all versed with all the rules of the game, then you can start with the investments on your own.
Try to see if you can get a pre approved loan. Pre-approved loans save time and money and also instill the confidence in the property dealer that his property won’t be tied up in case it takes time for you to get the loan approved.

There are various options available for people who are considering investing in real estate properties. Some of the available options are line of credit loans and standard loans.

Line of Credit Loans: These loans can be thought of as the maximum money that a bank lends to an individual without requiring additional approvals. Having a line of credit entitles you to take several loans over a period of time without going through the approval process again. For example, instead of applying for a $100,000 loan once, a person with a line of credit can borrow $50,000 once and another $50,000 next time without going through the process associated with the approval of the loan.

Standard Loans: Well, these are the most common forms of investment property finance where you meet with a bank official to check what rate he offers you. If you feel that you are getting a fair deal, then you can either take up the loan with either fixed or variable rate of interest. It is very important to do a bit of research before considering an investment. The research should include the location of the property you are interested in and whether the property has the potential to bring you a good profit. Apart from this, you should also check the affordability of the loan the rate of interest that you will be charged.
By Rahul Pandita
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Commercial real estate

How to Buy Commercial Property With No Money Down

About two decades ago, if you did not have 20% of the down payment for buying a property, not many banks would have entertained your mortgage application. But times and changed and how. Today a down payment of around 5% is good enough to buy a commercial property. But is a zero down payment realistic? The answer is yes, but it has its own baggage of certain terms and conditions. Read on to know more.

Seller Financing
Suppose, a property is evaluated at $100,000. You sit down with the bank officials to discuss the interest rates, repayment plans, foreclosure charges etc. The bank is willing to finance 90% of the total amount, leaving you with round about $10,000 as a down payment. What if you propose a second loan of $10,000 at a higher interest rate. If you have a decent credit rating and are willing to pay a little higher interest rate, the bank might finance your down payment, with you buying the property without paying a single dime as down payment. But, you have to keep in mind that every month you would be liable to pay monthly installments on both the loans, and it may take a huge chunk out of your salary. Also, personal loans charge the higher interest rates – roughly around 20%, and you will have to pay a lot extra than you would have taken.

Rural Development Plans
Another way of buying a commercial property is to apply with the USDA rural development plans. It provides you with 100% financing for your home purchases and one does not need to be a first time buyer to qualify. Some of the benefits of buying a home this way is that there is no cap on the purchase limit and you can include the repairs and improvements in your loan. The property that you want to buy should be in a qualifying area as per the USDA rural development guidelines.

Veteran Affairs Loans
Veteran affairs loans allow veterans to buy mortgages with no money down. One has to meet all the requirements set up by the United States Department of Veteran Affairs. People who are eligible for VA loans are veterans, active duty personnel, National Guard members and some surviving spouses. You need to have documented proofs to apply for a VA loan.

These were some options for you if you are thinking of buying a property with little or no initial payment. If you are eligible for a no down payment mortgage loan, should you go for it? You should definitely think about it, but before doing that, it is essential that you have a clarity on its disadvantages.


If you do not pay anything up while buying a property, you are definitely going to pay higher mortgage rates and your monthly payments would also be higher.
When you buy a property with zero down-payment, you would not get all the choices to make, and you may need to make a few compromises.

The sub-prime crisis was a result of too many people taking mortgage loan and then defaulting on their payments. While a zero down-payment may work for people who are spending more money by paying rents etc., one should carefully think about all the pros and cons of a zero down-payment loan before taking one up. I hope this article would have helped you to know how to buy commercial property with no money down and its financial implications.

By Rahul Pandita
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Commercial real estate

Cash on Cash Return

Every investment is only as much worth as the return it generates for you. In every business, you have to evaluate profitability if you want to have any hopes of staying afloat. More importantly, you need to calculate the cash inflow for every investment you make. When it comes to real estate investment, one way of knowing the profit generated from a venture is to calculate the cash on cash return percentage.

Of all the investments you will make in your lifetime, one of the most important ones is real estate investments. If you have bought a property, not as a home, but as a pure financial investment, you need to evaluate the cash return that it is generating for you. Cash on cash return is a ratio that will help you understand the profitability of any of your real estate investments.

What is Cash on Cash Return?

It is the ratio of the profit or cash flow generated by a property and the amount of net investment made in it, multiplied by 100. The cash flow or profit generated, which is used in its calculation, does not include taxes charged on the returns. That is, the profit considered is before taxes. Thus it is the percentage of cash that is recovered from your initial investment in a property.

This calculated ratio is mostly considered only a year after the purchase of a property. That is, it is only an estimate of the fresh profit generated a year after property purchase. It is not an accurate estimate for later years as it doesn’t take the time factor into consideration.

Most importantly, this ratio doesn’t consider the appreciation in price of property that may happen with time. Even though a property might be generating meager cash flow, its inherent worth might have increased with time. Cash on cash return percentage does not take this fact into consideration. That’s why, it is not the ultimate indicator of the profitability of any property investment. It can only provide you with an idea about the profit you are making through rental properties from any other business related to it.


Let me present you with the associated calculation formula. The above definition itself, must have made it quite clear. The formula is as follows:

Cash on Cash Return = [Net Cash Inflow (Before Taxes) / Total Cash Investment] x 100

So if one has made a $160,000 investment in a property and you receive a $20,000 cash return in one year, the percentage would be:

Cash on Cash Return = ($20,000 / $160,000) x 100 = 12.5%

Thus, calculating the return ratio can provide you with an idea about the profitability of your real estate investments. The higher the return ratio, faster you will recover your initial investment in a property. Properties with a low ratio are a liability, unless their value is progressively increasing in the property market. A periodic evaluation of your investment returns is essential. Hope this article has clarified your understanding of this financial concept applied in real estate investment evaluation.
By Omkar Phatak
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Commercial real estate

Investment Property Advice

Investing in a property is a popular trend followed by many people these days. The real estate market is on its peak and land prices are not only sky high but are continuously increasing day by day. And this is the reason why many people are investing in properties so that they can reap greater benefits in future. With increasing land prices, the cost of infrastructure development and construction is also on the rise so investing in property is considered as a smart choice today. If you too have some great savings and are planning to invest in a property then read this article further. This article shares some real estate property investment advice with you.

Investment Property Info

Before you buy or invest in any property you must consider the following things carefully:

Kind of Property
You also have to decide about which kind of property you wish to invest in, commercial or residential property. If you wish to use the property as a office or business center then go for commercial property. If you just thinking of an investment then residential property is a good option.

Location of the Property
Where the property is located matters a great deal. In prime locations rates can be very high so think again if you are really going to get any benefit by investing so much. In the same price you can invest in a suburban area. One of the important commercial property advice is that you also have to think about the property in terms of maintenance and surveillance. If the location suits your purpose then go for it.

Property Search
Once you finalize the primary things you have to understand the market completely through good market research. Take the estimates of all the properties you are interested in and compare all of them. Check how many of them suit your budget, purpose, and future plans aptly. You may have to establish contacts with people from the industry, such as real estate agents, builders, contractors, real estate attorneys, and other investors, etc., to get the detailed insights about the properties that interest you. You can also go for an online property search option to help you further.

Financial Management
Once you decide on the property, you have to manage your finances. First, you have to analyze your own bank balance. Make sure that even if you invest your savings, it should not affect your current and daily requirements. You can also think of taking a real estate loan but it should not put a lot of burden on your existing financial condition. You also have the option of investing jointly. You can go for joint venture with your friends and colleagues. You may consult your financial advisor who may suggest some better real estate financing ideas tailored to your needs.

Consult the Experts
This is one of the best investment advice I can give you. Each state has different land and property laws so to be aware of the nuances of property investments. It is advisable that you consult your investment advisor who will provide you with detailed information about the pros and cons of buying a certain property, be it a commercial property or a residential one.

These were some of the crucial factors that any investment advice will include. Given below are some of the investment property tips that would help you for a safe and rewarding investment.

Be aware of the legal issues concerned with the property.
Evaluate the revenue potential of the property.
Also check if the property is subject to any socioeconomic, demographic and financial trends.
Make sure that the construction quality is good and durable.
Understand the details of the property such as total area, FSI, amenities, maintenance cost, taxes, etc.
Use the equity from your other properties if possible.
Go through all the legal documents carefully before signing the contract.
Visit the location of the property at least twice before you invest.

With the above tips you know how to buy investment property. I am sure this property investment advice will help you make a safe property investment.
By Geeta Dhavale
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