Overhaul Your Finances to Prep for Real Estate Investing
Real estate has become the way to invest in the past decade. There are many television shows spotlighting Real Estate Investing and the sexy way of making money. If you are interested in jumping on the real estate investing bandwagon, whether by buying your first home or as an investor, Ralph DiBugnara wants you to consider these three very important points.
Understand your credit score and the importance of it.
It’s suggested to have credit open but also to be responsible with it. The balances on your credit cards should never be higher than 50% of what max credit line is. Pay on time, which means within 30 days and monitor it for any possible discrepancies that may pop up.
Track all your expenses.
Once you are ready to buy a home, you want to make sure you are going to be comfortable with the mortgage payment. Tracking your monthly bills will help you examine what is necessary and what may have to be sacrificed to take on a home purchase. Look at both your checking and credit card accounts to look at your spending habits and compare it to how much money you have coming in. Once you know how much you are spending and what are the essentials, you can begin to organize your finances and create a budget.
Save, save and save more.
Figure out what you can save monthly to put towards your new home. This is a great practice for not only building a reserve to buy a home but also for when you own the home and need to have savings to take in account for unexpected costs that come with it. Small tweaks to your everyday habits can lead to major savings over time, such as making coffee at home instead of buying it from a coffee shop. There are many apps available to help make saving easier, such as Clarity Money, Mint, and Mvelopes.
We hope these suggestions help you make your goal of real estate investing a reality. If you have any questions, please contact Home Qualified today!