%20(1).png?width=600&height=200&name=Blog%20Header%20(UPDATED)%20(1).png "Happy Home with Bridget Thomas The Coulee Region’s ONLY RSPS, C2EX, PSA, AHWD, HFR Luxury Home Certified Realtor®")
If you’d like to buy and move into a beautiful new home this spring, then your countdown has...
If you own a home, you're already a real estate investor, but if you're thinking of taking things up a level and acquiring rental, vacation, or even commercial properties - read up! It doesn't have to be complicated to become a real estate investor. With a little bit of knowledge about how the real estate industry works, you can become an investor and set yourself up for financial success without needing hundreds of thousands in savings. Check out these 4 easy steps:
1. Buy a home on the low end of your budget. If you don't have a lot of cash on hand, avoid a fixer upper that you’ll end up sinking a ton of time and energy into. A move-in ready home is the ticket here. You’ll need to work with your buyer’s agent to negotiate on the home and ensure you get the best deal possible so you can keep your mortgage payment low.
2. Get a home loan that will allow you to put 3.5% down, instead of the traditional 20% down payment. This will ensure that you don’t sink a ton of cash into the property and instead keep your savings liquid. Your real estate agent can help you find a lender who has programs you can benefit from.
3. Rent out a room or two (or an entire level if you have a mother-in-law suite!) to cover your mortgage. You’ll live in the property too, but your renter's monthly lease will cover the mortgage payment, allowing you to live without the housing expense.
4. Save the money you would have been putting towards your monthly mortgage payment and use it to purchase another home. It’s critical to put the money you’d be spending on your housing payment into savings rather than spending it. I suggest setting up an automatic transfer into a high-yield savings account so you don’t ever have to worry about spending money you intended to save. This process is commonly called "house hacking," because you’re hacking the system by living in your investment property while paying next to nothing in housing costs. Once you have enough saved up for another house, you can rent out the entirety of the first property and make even more of a profit.
Want to get started on your real estate investment journey? Reply to this email and I’ll get you the information you need to get started. I'm ready when you are.
