Investing

Expert Advice To Help You Invest In The Right Property

Real estate is all about finding the right type of property to invest in. To help you out, I’ve listed four types and written some info on each of them.

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Houses

Houses are the prime property investment everyone wants to make. If you go through life without owning a house, you’ve had a hard time. They make excellent investments, for more than one reason. Firstly, the price of a house rises all the time. You can make to additions, and it will still increase in price because that’s how real estate seems to work. But, if you want to improve a house, you can! They’re great for buying, improving, and selling within eighteen months. You can earn lots of money property flipping like this. Plus, houses are probably the best investment for people playing the long-term game. Buy a house, live in it for years, and sell it for a profit ten years down the line. It’s so simple and well worth your money.

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Apartments

Now, apartments have numerous benefits that may make them the right investment for you. Firstly, buying an apartment can cost you less than buying a house. Plus, there are way more apartments for sale than houses. So, there’s more on the market for you to choose from. Not only that, new apartments are highly desirable amongst renters. People that don’t want to own property will often look for apartments to rent. For me, this property type is ideal for those looking to earn rent money. Buy-to-let experts often shout about apartments being the best investment you can make.

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Static Caravans

An interesting property to invest in is a static caravan. Often, people refer to these as holiday homes, and some call them chalets. They offer a very clever investment opportunity for the savvy property buyer. Personally, I think they’re ideal if you want to invest in something cheap. They’re the cheapest option out of the ones I’ve already mentioned. The main difference with these is that you’re targeting a very specific market. Holiday homes like this are very popular in the elderly community. This is because their location tends to private, which is what they desire. For me, these properties are great for building a big portfolio. You can easily purchase a lot of them, and own your own holiday village. There’s not as much money involved in static caravans compared to houses and apartments. But, on the flip side, it means you don’t have to contribute as much money either.

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Offices

While all of these ideas have been residential, some prefer to go more commercial. Investing in offices might be right for you. They do require a fair bit of maintenance, but the rewards are high. Simply because offices are in very high-demand. Especially if you own one in a busy area. Plus, you can always use the building yourself if you want. Have your business on one floor, and rent out the others. You get office space and make extra money while you’re at it.

Hopefully, viewing these options has helped you decide what type of investment you want to make. Think about which one suits you the best, and then go for it!


The Secret To Getting The Best Deal Possible On Your Next Property Investment

If you’re doing it for investment purposes, then you’re going to be even more particular about the kinds of deal you get on a home. You don’t want to overpay for a property. At the same time, pushing your luck can take a good investment out of your hands over what amounts to a matter of peanuts. Here, we’re going to look at how to be smart and get a good deal on your next property investment.

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Get your money prepared beforehand

Regardless of how you’re paying for the house, you should have it all sorted before you get to the point of talking with the seller. For one, it’s important that you know exactly how much you have to play with. Having an upper limit can give you a ceiling that you can drag potential home prices under. At the same time, it’s good to take time with a mortgage broker to see if you can’t get a better deal on financing your next purchase.

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Be thorough

It’s not just your money you need to have a good understanding of. You should also be thorough in how you actually look at that next property investment. First, don’t make the mistake of neglecting to have it inspected. In some cases, it may very well uncover some details that can help you when it comes to the negotiations table. In other situations, it might very well put you off what could turn out to be a bad investment. Don’t take the seller’s word for it. Take a closer look at the home every time.

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Negotiate

As we’ve said, the home inspection might bring price negotiations into your court, but that isn’t always the case. For one, know the market and the neighborhood. If the price stacks up well against the other homes in the neighborhood, you might be able to use that information as ammunition. That won’t be the case, however, if the home has a lot of viewers. In a competitive market, you have to be prepared to move quick if there’s a property you really like. That means cutting the nonsense and making your best offer first. Part of negotiating is knowing when to capitulate as well as when to hold.

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Adding value

If you want to make any home a good deal, then you need to go about making it earn you more than it earned the seller. Depending on what you want to do with it, there are a variety of methods to this. First, look at adding real value to the home in terms of more space. Finishing a basement or converting a loft will add real living space. Other changes, like renovations or exterior makeovers, will make it easier to sell. If you’re letting, it’s all about how you market it and who to, as well.

As with any kind of trade, you need to navigate the nuance of the deal. You need to be pre-prepared and flexible at the same time. Then you need to do what you can to make your purchase a profitable one.


Everything You Should Know About Investing in Fixed Assets

For investors who want to stay away from the stock market, investing in fixed assets can be a good alternative. It gives you the chance to spend your money on investing in something that is tangible. Of course, this doesn’t mean that there is no risk involved in this kind of investing. Every kind of investment carries its risks, as well as its potential rewards. But investing in fixed assets is different to other kinds of investments.

Before you start to invest in assets, you should educate yourself. There is a lot to learn and a lot that you need to know before you start to push ahead. It’s something that everyone needs to do if they are going to make a success of their investment. You can’t expect to do well unless you’re willing to expand your knowledge. The guide below will tell you the key information that you should be aware of when you are thinking about investing in fixed assets for the first time.

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Have a Reason for Choosing Assets

You should have a real reason for wanting to invest in assets rather than other forms of investment. One of the major features of a fixed asset investment is that it’s a long-term investment. It’s not usually about making a quick sale. Most investors hold onto assets for quite a long time before deciding to sell them for a profit. So, you have to be willing to have some patient if you opt for this kind of investment. And you should also be aware of how secure fixed assets can be. They offer you something solid and tangible, which is often a very appealing prospect. That level of security is not something you can often get from stocks and shares.

Know the Different Types of Assets

There are so many different types of fixed assets out there. Property investments are very common, and these offer you the chance to take advantage of the rising property values. Many people are turning to homes to invest in at the moment. But there is always a chance that the property market could see a downturn. Gold tends to be seen as one of the safest forms of investments out there. Things like art, collectible items and wine can also offer strong financial returns. It’s important to understand all these kinds of investments before you spend your money.

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Some Assets Are More Secure Than Others

If security is what you’re looking for, then it is certainly correct to look at fixed assets. They are more secure than other types of investments, as I mentioned above. But there are some assets that offer more security than others, and this is something that you should be aware of. So, think about how sure you are that the thing you buy will rise in price. There is never any guarantee that prices will climb, so be careful when you are thinking about which type of asset to buy.

Calculate Your Expenses

There are all kinds of expenses that you can incur when you are investing in fixed assets. For example, if you invest in things like art, they need to be cared for and stored correctly. And if you invest in a classic car, this will also need to be taken care of in the right way. So, calculate what kind of costs you will have to pay for before you invest in a particular fixed asset. You’ll have to factor in these expenses when you are working out how profitable your investment will be for you in the long-term. It’s something that can damage your profits, especially if you don’t prepare for these costs in advance.

Be Aware of Improvement Costs When Investing in Properties

This is something that is specific to investing in properties. Many homes need to have upgrades, repairs and improvements carried out on them before they can be sold on for a profit. So, you should think very carefully about whether or not this is the kind of property you want to invest in. On the upside, you can make bigger profits when you buy a home in poor condition. But it does take time and money to make these kinds of fixes to a property, and that’s not always ideal for investors. Always think about how these costs and time implications will impact on your investment before going ahead with the purchase. You can find all kinds of properties if you talk to a local estate agent. You can get more details from Entwistle Green.

Pay Debt First

Paying down your debt is always the most important thing to do when you start to make money. Many investors borrow money to fund their first purchase. This happens in property investments when people need landlord mortgages to cover the purchase costs. It’s vital that any money that is made first goes towards wiping out that initial debt. Any investor knows that the last thing you need when you are trying to make money is a growing debt hanging over your head. So, don’t be tempted to ignore this issue. It can be tempting when you are making money. You’ll want to plow that money back into your investments, but paying off debt first is more important.

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Sell Well and at the Right Time

When you invest in assets, there is always a time that comes when you have to sell. This is how you make money. You buy something, and then you hope for it to increase in value, and then you sell it. In fact, this is more or less how many types of investments work. That’s how many people choose to play the stock market, as well as the foreign exchange market. But when you are selling fixed assets, you are normally selling to buyers who are ordinary members of the public. That’s not always the case, but it often is. You need to have the ability to sell convincingly. And you also need to know when the right time to sell is.


Killer Questions That Should Direct Your Next Investment Venture

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We live in a world where outside investments can be the key to unlocking a brighter financial future. It’s an avenue that a growing number of workers are heading down in a bid to increase their personal wealth. However, it’s only worth doing if those additional ventures are going to bring positive results

Before rushing in, you must ask some crucial questions to ensure that you choose the right pathway. Answer these effectively, and you will not go wrong.

What’s My Budget?

The first factor to consider ahead of any investment decision is your budget. Ultimately, your investments will hopefully increase your wealth. But they do come with a degree of risk, so you need to ensure that you have enough money for other commitments.

Quite frankly, organizing your finances with a spreadsheet won’t only help determine the budget. It will also give you a far greater hope of maintaining control over your long-term financial income and spending.

Am I Interested In The Venture?

Money should be the main incentive of any investment opportunity. But the truth of the matter is that you’ll gain far more from the venture when you actively enjoy it. Let’s face it; being motivated will encourage you to pay more attention, which will help you maximize your profits.

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There are quite literally hundreds of different pathways out there, and you’re in no rush to find yours. A higher quality of research and planning should also reduce the risk of having your fingers burnt too.

Can It Fit Around My Lifestyle?

The right investment is an investment that is right for you. As well as enjoying the venture, it needs to fit around your life. After all, it’s meant to be an idea that enhances your world rather than compromises it.

Therefore, it’s imperative that you tailor things to your needs. Real estate, for example, is only suitable when the property management is flexible. Whether you’re looking to play an active role or a backseat one doesn’t matter. What does matter, is that you get the most from those opportunities without sacrificing your career and other life factors.

What Are My Goals?

As an investor, you can never predict what the future holds. However, it’s important that you have a visions for what is expected as it will drive your venture to far greater destinations.

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Besides, there’s nothing worse than not getting out at the right time. Having a strategy and plan of action should help you stay on track. Moreover, as a barometer of success, you’ll soon know whether the investment is right or wrong.

Will I Make Money?

The million dollar question is simple: will I make money. Investments can provide an exciting adventure but without profit, they aren’t investments. Instead, they are just expensive hobbies.

As such, you need to analyze things properly. There’ no rush to get started, but you need to hit the ground running once you do. Learning the basics of Forex trading, for example, before jumping into the deep end will serve you well. As they say, only fools rush in.


Investment is Crazy Popular These Days, But Why?

Investing has become a really popular financial direction for a lot of people to take, but why? Well, the answer to this question is rather complex. But, developments in technology coupled with the growth of the investment industry have played a part. These are some of the key reasons why so many people are now investing these days.

Lots of Choice

You only have to look at the investment market these days to see how many opportunities there are. The fact that there is so much choice is what has led to an increase in popularity. People have realized they don’t just have to invest in stocks and shares anymore. Indeed, statistics have shown us that cash is a more popular investment choice than stocks or bonds. Fine wines, small businesses, art, and even movies have also proven popular choices.

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Huge Potential Returns

The main reason anyone makes investments is because they want to get something back. The fact is that many opportunities present a huge return on investment. Something like real estate is the best way forward if you’re looking to make a lot of money. You can hire out a place and use it as a source of regular income. It’s worth contacting companies like Whistler property management to ensure your investment’s looked after. You have to do all you can to ensure you get the best possible return on investments. Make sure you make the right decisions and try to nurture your investment, so you get the best out of it.

More Accessible

Another reason why would could be seeing a rise in the popularity of investing is because it’s more accessible. Everything that pertains to investment is at our fingertips every day. You have to understand the fact that computers and smartphones have made our lives completely digital. We can do everything on the move these days. So opportunities for investment can be done on phone, tablet, and laptop really easily. This is probably one of the main reasons we’ve seen a spike in the number of investments made in recent years.

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People are Thinking About the Future More

The fact is that people these days are thinking more about the future. We all want to have a good life, and that means making plans in advance. See, in days gone by people were more concerned with living for the moment. But, we seem to be more aware of the importance of preparing financially for later life. And this is something that has seen a rise in the number of people making investments. This trend is sure to continue spiking over the next decade as well.

There are plenty of reasons why people may gravitate more toward investment these days. We are always looking for things to spend our money on, and investing provides the promise of some reward. If you have been considering investing, you will have the opportunity to make a lot of money. But you must prepare first and know what you’re doing before you start.


Real Estate Investment: It’s Not as Scary as You Think!

Investing is something that’s really important for you to do these days. You need to make sure you have investment opportunities lined up. Did you know 51% of Americans put off major financial decisions? You have to make sure you aren’t one of them. Investing for the future is important for your family’s financial security. And investment in real estate could be a very lucrative venture for you. You don’t need to be scared of the vast sums of money involved in real estate investment. Following these ideas will help you make the right financial decisions.

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Choose the Perfect Property

You have to make sure you figure out the perfect property for investment. A lot of people these days are looking into 1031 property exchange quotes. It’s important if you’re selling and buying, that you always have a property to fall back on. By doing an exchange, you can upgrade, downsize, or choose something better suited to you. The perfect property is crucial when you are investing because it’s a long-term purchase. You have to choose something that’s going to last you a long time. You will need to decide whether it will be a rental, or if you’re going to do it up and sell it on.

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Don’t be Reckless

The problem that a lot of people have when they invest is that they can be reckless. You’re dealing with an awful lot of money, and it can be easy to think you know it all. But you really do need to make sure you aren’t making reckless investments. It’s so easy to lose money when you try to invest. If you don’t know what you’re doing, then you’re as good as gambling your money away. There are a lot of mistakes people make when it comes to investing. Things like buying high and selling low are often a recipe for disaster. When it comes to real estate, you have to be especially careful not to be reckless.

Get Experts to Help You

It’s always good with any investment to have experts on board to help you. Speaking with investment gurus and specialists is crucial. It’s the best way of helping ensure that you have all the facts before you start. You need to have peace of mind and be comfortable with the decisions you make. And the only way of doing that is to make sure you have input and guidance from people who know what they’re talking about. It’s estimated 61% of adults would rather consult their financial advisors than family. This shows you the importance and impact that financial advisors have. And, with a decision this big, you can’t leave any stone unturned.

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Investment opportunities are ten a penny these days, but real estate can be the best choice. You just have to make sure you plan it all meticulously and make all the correct choices. Many people are scared of investing in real estate because of the amounts of money that are being dealt with. But, it’s not as scary as you might first have thought.


3 Habits Of Highly Successful Investors

3 Habits Of Highly Successful Investors

Starting your journey into the world of investing can feel as daunting as it is exciting. Investment is fiercely competitive; some people crash and burn right out of the gate, whereas people like Warren Buffet become millionaires. Naturally, you’ll be wondering what it is that separates the successes from the failures. Unfortunately, there’s no magic formula I can give you. However, there are certain habits which are common in all successful investors.

President Barack Obama meets with Warren Buffet in the Oval Office, July 14, 2010. (Official White House Photo by Pete Souza) This official White House photograph is being made available only for publication by news organizations and/or for personal use printing by the subject(s) of the photograph. The photograph may not be manipulated in any way and may not be used in commercial or political materials, advertisements, emails, products, promotions that in any way suggests approval or endorsement of the President, the First Family, or the White House.

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First of all, they never stop researching. Investment is constantly moving with the ups and downs of the world’s economies, and the successes or failures of businesses. Because it never sits still, it’s important for a hopeful investor to get into a habit of constant research. There are countless sources out there you can use. Keeping on top of world news is a must, and will also help you understand how various events affect the value of stocks and currencies. Journals like this one, Forbes, and The Fortunate Investor can also provide great advice on managing your finances. You should also go out of your way to tap into other channels of research, like using a product before investing in it. Just make sure you use more than one channel. Nobody ever got rich by taking instructions from a TV!

Another good habit seen in many successful investors is constantly honing their diversification strategy. Diversification is one of the most important staples of investing, and you’ll need to have a good strategy in place if you want to make much progress. To start with, you can probably find some tried and tested diversification strategies, which will reduce the risk you have to take on and increase your odds of making a profit. You may find a set tactic which works out pretty well for you. However, you should always be looking for the next way to make the strategy even more fool proof. Again, if these strategies were that good, they wouldn’t be in the public domain! With every purchase, make little tweaks to your portfolio, and always measure the results.

The final habit to get into is learning from your mistakes quickly. I hate to break it to you, but you’re going to hit a loss sooner or later. When an investor talks to you about their experience in the field, you can be sure that that’s built on botches, miscalculations, and capital that’s disappeared into the air. When (not if!) you screw up, the worst thing to do is think that it’s not for you, and sell all your assets straight away. Instead, look into the loss, and try to figure out where it came from. Did you take some advice from an unfounded source? Did you let nerves get to you, and sell before doing enough research? Answer these kinds of questions, and you’ll come out as a much stronger investor.

With the constantly fluctuating markets these days, you may feel a little out of control when you first start investing. Get into these three habits, and soon it will all become simpler.


How to Invest When You Have Debt

How to Invest When You Have Debt

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Are you looking on how to invest, if you have debt? Debt does not preclude you from investing; in fact many people go into debt in order to invest. There is a way to leverage debt to invest in assets that actually makes more financial sense. If you want to invest even though you are in debt there are certain considerations to take into account when making these decisions. Look at the factors discussed below to help you decide how to invest and which investments make financial sense.

Pay Debt vs Investing

The first major consideration in deciding on investing is the comparison of paying down your current debts or whether investing would be better for your financial health. Since there are different types of debt, a wise investor considers each one before making investment decisions. The first category is high interest debt which includes credit cards and loans with interest rates higher than 10%. If you have any of these debts with balances over $1000, it is generally better to pay down these debts before investing. The reason is that investments rarely make over 10%, so you would be in a better position by paying down these high interest debts first. Consolidating these high interest debts into low-interest debt is a great way to open up cash flow for investing.

If you have low-interest debt such as a car loan, a line of credit or a very good rate personal loan with interest rates from 3 to 9%, you may want to invest any extra money instead of paying these down. However, you should only invest if the investment rate of return is greater than the interest you are paying. A 2.5% investment certificate at a bank compared to paying down a car loan with an 8% interest rate would be unwise. Yet, if you could earn 9% in mutual funds or stocks compared with a 1.5% car loan, the investment is a better option.

Lastly, tax-deductible debt is one category where investing is almost always the better option. If you can claim tax deductions for a home mortgage or interest, business loans, investment loans for retirement or other similar vehicles, the investment route is almost always a better option.

Considering the Compound Value

Many people consider paying off their home mortgage to free up cash flow as a good idea to reduce debt. Yet, if you take 10 years to pay off your mortgage instead of investing the same amount of money into investments, it is almost always a bad idea. The ability for your investments to compound over time gives investments a very powerful exponential growth curve. Whereas paying down a low interest mortgage, because of the size of the loan which provides a long-term pay-off horizon, robs you of the ability to get compound growth in your investments.

A Decision of Risk

Lastly, deciding whether to invest or pay down debt is a very personal choice because of the inherent risk involved in investing in non-principal guaranteed investment instruments. When you pay down debt, there is no risk. However, if you take the same money and invest it in the stock market or mutual funds there is risk that you may actually lose money. Each person needs to decide on their risk tolerance level. It is this risk tolerance that may ultimately help you make a decision on whether to invest or pay down debt.

You can invest in spite of debt, but the true question is whether you personally should.


Forex: All you Need to find out about PAMM

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PAMM or Percentage Allocation Management Module refers to a trading account used by one or more investors. There is a dedicated manager looking after a particular PAMM account whereby different traders are invited to invest funds. It is the dedicated manager who carries out trading on the investors’ behalf. One of the biggest advantages of this particular account is that even novice traders can initiate their careers – knowing full well that an experienced manager is there to take care of their funds. The manager cannot withdraw his capital unless his fund is liquidated thereby guarantying the due safeguard to investors that they deserve. PAMM is backed by a very simple investing process. Given below are further details of PAMM. Please read on.

PAMM: How it works

A PAMM account is started by a fund manager. He is the one who invests in the account at first and then puts forward his proposal or invitation for other investors. The proposal put forward by him includes several details including the ones mentioned below:
? Minimum Capital Account
? Success fee

Minimum Capital Account and Success Fee

Though you can well understand that the Minimum Capital Fee is the minimum amount of money that one needs to invest in order to start the PAMM account and that the success fee is the charge spelt out by the manager for the profits generated by him- if you are really eager to initiate your career in PAMM then you need to know more about the same. Those who choose to invest in PAMM accounts are mostly not professional traders but have a certain degree of interest in investing. They are mostly involved in day jobs and other activities that keep them from online trading. Here are further details.

The Minimum Capital needed is the minimum capital that you need to invest in order to be a part of the PAMM account. The minimum amount required is $500.

The Success fee is the fee which is calculated on the basis of High Water Mark. In order to have a clear understanding of the success fee you need to understand what High Water Mark exactly is. High Water Mark refers to the peak value of the funds touched during a month. The High Water Mark ensures that the fund manager is only paid when he has delivered results for investors. This acts as a definite safeguard for you. Not to forget that the fund manager will not receive any money until your fund reaches the high watermark level during a month.

Benefit

One of the most notable benefits of PAMM accounts is that it spells a win-win situation for both the investor and the fund manager. While the investor can still dream of being a part of online trading without really being acquainted with its finer details (they capitalize on the skills of the fund managers), the fund managers can expect to compound their profits. To find out more about PAMM, please click on this ‘link’ and stay informed.


Why Staking Has Become the Latest Investment Trend

Invest-1024x811Vegas is typically a place you’d associate with reckless behaviour and lost money – not careful investment planning. In the past few years, however, the once-exclusive practise of poker ‘staking’ has grown incredibly popular amongst a wide range of investors. So what exactly does ‘staking’ involve?

It’s a common misconception that most of the players you’ll see at high-stake poker games are gambling with their own money. In reality, few of those same players could afford to enter frequent poker games if they were relying solely on their own funds. That’s where ‘stakers’ or ‘backers’ come in.

Much like you’d bet money on the jockey horse you think is fastest, stakersput money on the poker horse, eh – player, they believe has the biggest chance of winning. It gives stakers the opportunity to make some serious cash from a game in which they might not be particularly skilled, whilst poker players get to enter tournaments they could otherwise never afford. It’s a win-win…providing the poker player doesn’t lose all the money, that is. Sometimes each party enters into an official and long-term backing arrangement which covers an agreed number of tournaments or months. At other times, it’s a casual deal, settled with a mere handshake.

Admittedly, it’s somewhat inaccurate to describe ‘staking’ as a new concept. Investors have been backing promising poker players for decades. The difference, however, is that stakers used to be shady individuals with close connections to illegal backroom games. Poker hasn’t always been so openly commercialized as it is today, after all. Nowadays, with the de-stigmatizing that followed when states relaxed gambling laws and international stars like Ben Affleck and Cristiano Ronaldo took to the card table, the game is about as mainstream as the Kardashians. The image of your average staker has subsequently gone from sleazy, rough-looking cigar-chewers, to that of well-groomed, well-educated Silicon Valley investors.

Contributing further toward the popularity of staking was the early 00s poker boom, where mega igaming brands like PokerStars and 888Poker began backing some of the biggest pros in the industry. Consistently, these poker pros would deliver significant return on investment. Multi-million dollar brands would identify a promising player, pay their tournament fees, and own the larger portion of their winnings. It wasn’t long until the average Joe realized the money-making potential in a game that was once thought to be all about luck.

That’s not to say luck doesn’t remain a central factor in the outcome of a poker game. Over the past ten years, however, an incredible wealth of information on strategy, psychology and odds calculation has been made available online, found everywhere from poker-based forums to news sites like PokerListings. Never before has skill played a bigger part in the game, as players take intensive poker courses and study thick books on gambling methodology. It’s no surprise staking is considered less risky today than it was thirty years ago.

As statistics get more sophisticated, you may see more and more people coming into the poker backing industry”, says Courtney Brunious, the Executive Director at Southern California’s Sports Business Institute. “I don’t think it’s necessarily something you get into to make a lot of money, just because there are a lot of risks involved, but then you could say the same thing about any investment.”

A recent feature run by the BBC explored some of the reasons stakers choose to back poker players. “I’m more for the entertainment value,” admits one staker. “…but for as little as fifty bucks or a hundred dollars, if I get a piece of the action, I could get two to a thousand times my money back,” he continues. “If [the player] finish first in one of these multi-million dollar pay-out tournaments, then that’s a nice return. It’s a lot better than the stock market.”

Candace Collins is a professional poker player and regularly backed by stakers. “I absolutely have the investors in mind when I play tournaments”, she says. “I want to win money for them.” When Collins cashes, she pays her staker their percentage of the winnings on top of the initial entry fee. To give an example; A staker pays $3,000 of a $12,000 entry fee, which contributes 25% of the total entry cost. Collins will first pay back the $3,000 entry fee, and then pay her staker the 25% of the remaining $9,000. Collins is left with $6,750. Though losing out on so much money is a pain, being staked remains an attractive prospect for most poker players, who will work hard to prove they’re worth the investment. Whilst the bigger pros will be able to handle their own fees and reap the benefits of not owing anyone money, poker newbies are typically thankful for the way in which staking allows them to get a foot in the door.

Besides experienced investors, you’ll also find some of those aforementioned poker pros becoming backers themselves. Jason Mercier is hugely successful poker player and, as such, knows what to look out for when picking his ‘horse’. He carefully selects a few players to back, and keeps a close eye on their progression. “Backing is definitely a huge part of the poker industry. I mean, most players have been backed at some point or have backed someone…it’s how a lot of guys are able to play big buy-in tournaments,” Mercier explains. ”I think that if you’re backing too many players, like more than 20, it’s going to be very difficult to make money. Just because it’s going to be so hard to keep track of whether or not the guys are good or bad, how they’re playing and what they’re playing. I think it’s much easier to make money if you have one, two, three or four guys that you know are going to be profitable.

According to the Wall Street Journal, at least half of the 6,600 players in the 2014 World Series of Poker were receiving some form of financial backing. Considering that the 2014 event collected $64 million in entry fees, a hefty sum of that money likely came from backers. With staking playing such a prominent role in tournament finances, there’s a high probability of a poker pro facing off against a player he or she has personally backed. Such was the case for Daniel Negreanu, widely regarded as the greatest poker player today, when some of his backed players became his opponents at the WSOP. “I play against them as hard as I play against someone I don’t know”, Negreanu claimed.

The WSOP has no official rules to regulate the possibility of unfair play resulting from hidden interests such as backing, but admits it is a potential problem. As fewer people remain ignorant of the hidden world of staking and its pertinence in poker culture, the less easy it will be to avoid the discussion of what regulation should ensue, if any. Will the introduction of regulation curb the growing number of investors, or simply help organize and popularize the practise? Is staking an experimental trend, or the future of sports-based investment? These are questions only time will answer, but it’s safe to say the growing popularity of staking is unlikely to slow down anytime within the next few years.


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