by Greg B
(Macon GA)
Thank You for taking the time to share.
LM says: Greg, thanks for the kudos. You have a couple of things here I would suggest you consider. First of all I want to congratulate you for being what sounds like relatively debt free. If you can manage to stay that way, this one step alone can be worth millions. Second, it looks like you have some solid ideas of where you are and where you want to go and you understand some of the basic principles of building wealth, excellent! Now, in terms of the property you are considering; when you say is worth "double the purchase price", I want you to be very careful on how you determine that, I know how hard it can be. Make sure you to do your due diligence and a lot of research so you make a really solid determination of what the house would be worth after repairs. Then you can determine what kind of repairs you would have to do in order to get the house to the value you have determined it can realistically be sold for. You bring up a very good point when you stop and look at your financial situation. I know there are great opportunities out I am not sure why you say you need to have money to "live without work", you might have to explain a bit more. But I can remind you that my very firt foreclosure investments where done while I was holding a full time job. I know it is very possible to invest in real estate on a part time basis, so don't feel you have to do it full time. I agree with you 100% that setting money aside,in other words, pay yourself first , is something that is key to building wealth. Not only is creating the habit important but the power of compound interest is incredible. Do this: since you are already analyzing investment opportunities around you, as part of your real estate business plan, write down some figures of how much money and resources it will take to do an investment. Look at some of the analysis I have done on flipping real estate property and then write down your expected costs for: - Purchase costs - price, closing costs, inspections, surveys, appraisals, etc - Repair costs - labor and material costs for everything from demolition to kitchen cabinets to the final cleaning before listing for sale - Holding costs - I would suggest you figure out how much are your monthly costs and that you assume that you are going to be holding for six months minimum - Potential selling price - The most important number of all. Be conservative. - Selling costs - How much you will pay in real estate agent commissions, sellers closing costs, concessions, etc. Once you have these numbers together you will have an idea of how much money you either need to have OR have access to. Once you have a plan like this share it with your wife and let her see what it is you want to achieve. In other words, do your best to get her on board. Share your vision of being able to create wealth for your family and the steps that are going to be required. If monthly household cash flow management is an issue then make sure you both together create a written household budget and/or a spending plan. This way you can determine ahead of time where you want your money to go and why. You also use this to determine how much money you want to set aside each month for saving and investing. Greg, it sounds like you are headed in the right direction, keep it up! |
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