HOW TO BUILD WEALTH WITH REAL ESTATE: A STEP-BY-STEP GUIDE
Real estate investing has been a tried-and-true wealth-building strategy for generations. Whether you’re interested in flipping properties for a quick profit or building a portfolio of rental properties for long-term cash flow, there’s no denying the potential for significant financial gains.But where do you start? How can you build wealth with real estate in a responsible and effective way? At MY SMART COUSIN, we help budding home buyers and real estate investors conceptualize, fund and build their real estate portfolios. As seasoned coaches, we work with clients to penetrate the lucrative market of buying a house for the price of a car. We work with a broad range of clients and focus, in particular, on Black and Brown folks and women, to develop a detailed roadmap unique to each client. In this step-by-step guide, we’ll walk you through the key strategies to build wealth through real estate investing. WHY BUILDING WEALTH THROUGH REAL ESTATE IS IMPORTANT? Building wealth through real estate is important for several reasons. Overall, building wealth through real estate is a smart and effective way to achieve financial independence and security. By leveraging the benefits of real estate investments, investors can create a diversified portfolio and build a strong foundation for their financial future. THE KEY STRATEGIES FOR BUILDING WEALTH THROUGH REAL ESTATE INVESTING. STEP 1: DEFINE YOUR GOALS Before you start investing in real estate, it’s important to have a clear understanding of your financial goals. Do you want to build long-term wealth through rental properties, or are you looking to flip properties for quick profits? How much risk are you comfortable taking on? Having a clear sense of your goals will help you make informed decisions about where and how to invest. STEP 2: EDUCATE YOURSELF Real estate investing can be complex, with many different strategies and approaches to choose from. To build wealth with real estate, you need to educate yourself on the fundamentals of investing, including market analysis, property valuation, financing options and property management. There are many resources available including books, blogs, podcasts and seminars. STEP 3: BUILD YOUR NETWORK Real estate investing is a team sport. To succeed, you need a network of professionals you can rely on such as real estate agents, attorneys, lenders and property managers. Start cultivating these relationships early on and consistently, and don’t be afraid to ask for advice and guidance. STEP 4: SECURE FINANCING Once you have a clear sense of your goals and have educated yourself on the fundamentals of investing, it’s time to start thinking about financing. There are many different financing options available, with the most common types being traditional mortgages, hard money loans and private lending. Evaluate your options and choose the financing strategy that best aligns with your goals and risk tolerance. STEP 5: FIND THE RIGHT PROPERTIES Finding the right properties is key to building wealth with real estate. Look for properties that are undervalued or in up-and-coming neighborhoods. Conduct thorough due diligence with a focus on property inspections and market analysis, to ensure that you’re making a sound investment. STEP 6: MANAGE YOUR PROPERTIES Effective property management is essential for building long-term wealth through real estate investing. Whether you’re managing the properties yourself or working with a professional property management company, it’s important to stay on top of maintenance, tenant relations and financial reporting. STEP 7: EVALUATE AND ADJUST YOUR STRATEGY Real estate investing is not a set-it-and-forget-it strategy. It’s important to regularly analyze your investments and adjust your strategy as needed. Keep track of your financial performance and be willing to pivot if you’re not seeing the results you want. BRINGING IT ALL TOGETHER In conclusion, building wealth with real estate is a long-term strategy that requires careful planning, education and execution. By following these steps and staying focused on your goals, you can create a successful and profitable real estate investment portfolio. So start building your wealth today! YOU CAN ALSO READ: THE PROS AND CONS OF INVESTING IN INTERNATIONAL REAL ESTATE MARKETSFOLLOW US: @MYSMARTCOUSIN
FAIR MARKET VALUE: DEFINITION & CALCULATOR
Home buyers and investors often hear the term “fair market value” when talking about buying or selling a property. But what does it mean? Fair market value is defined as “the price at which a property would sell between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.” But if you’re thinking about buying or selling a property, it’s important to have an idea of what fair market value is. And luckily, there’s an easy way to calculate it. We understand that buying a house can be stressful and overwhelming, especially if you don’t know what to do. MY SMART COUSIN is here for all your Real Estate needs! Whether it’s finding an affordable property or helping with financing options so the process goes as smoothly as possible – as a Real Estate Investment Coach, we’ve got just about everything covered at this one-stop shop. We offer tailored solutions to every individual, with a particular focus on Black and Brown folks and women, in every aspect of investing, and particularly for those seeking to Buy a House for the Price of a car, our personal favorite to buy a property!
HOW LONG IS AN APPRAISAL GOOD FOR? 5 FACTORS TO CONSIDER
If you’re in the market for a new home, you’ll likely encounter an appraisal. What would be more gracious than Buying a house for the price of a car? An appraisal is a process where a licensed appraiser assesses the worth of a property. Appraisals are used by buyers, sellers, and lenders to help determine a property’s value. At MY SMART COUSIN, we are here to provide our people with the best and most updated information on Real Estate Investment strategies. We help our Black & Brown folks (especially women) to Buy a house for the price of a car. As a Real Estate Investment Coach we encourage people about how they can be the owner of their own sweet home and can scale their finances. Have you ever wondered how long an appraisal is valid? If so, you’re not alone. While the answer may seem straightforward, there are a few factors to consider when it comes to home appraisals. In this blog post, we’ll take a closer look at five of the most important factors to keep in mind when it comes to appraisals. Read on for more information! WHAT IS AN APPRAISAL AND WHY DO YOU NEED ONE WHEN BUYING A HOME? The value of your home is determined by an appraiser, and if you want to get the most out of it financially then be sure that there will not only be one but several reports generated. A licensed third-party specialist in this field creates these invaluable documents which provide crucial information about what kind or condition property each instance might present as well as any notable features such—as visible defects/ damage on exterior surfaces among other things not visible from afar. If you want to get the best deal for your home, it’s important that an appraiser reviews and records all of the upgrades or improvements. The middleman will assess how well-maintained property is before lowering its price based on what buyers want; he also has experience in raising prices when sellers haven’t taken good care of their properties – giving them more incentive than ever! You might not think that an appraisal would be important while buying a house, but you’d likely regret it if the price set by your appraiser is too high. The cost of getting this done can make or break whether someone buys your home! So take advantage and get as much information out there about what’s going on with all aspects before meeting any deadlines–you’ll feel like a hero when they finally open escrow!! HOW LONG IS AN APPRAISAL GOOD FOR? Appraisals are a great way to get an idea of what your home is worth. The length depends on the factors such as loan type, market state, and location but six-month validity typically applies more often than not means you’ll need two-six months’ worth when going through this process with any one client! One thing that can affect, is how long they last though? Comps – these use prices from recently sold homes close in size/conditions so expect 90 days instead if outside those ranges since there isn’t always enough data available yet within each specific region or city block. FACTORS TO CONSIDER WHEN DETERMINING THE VALUE OF YOUR HOME 1. THE TYPE OF LOAN The type of loan the buyer is seeking may influence the length of time an appraisal is valid. · CONVENTIONAL LOAN – These loans are less restrictive and highly flexible in terms of appraisal. On existing homes, an appraisal is good for 120 days while on new construction, the appraisal will be good for an entire year. · USDA LOANS – These are government loans that are specially structured for people in rural areas. Appraisals for USDA loans are valid for 120 days in addition to a grace period of 30 days. · FHA LOANS -On an FHA loan, the appraisal will be valid for 120 days and if updated it will be valid for 120 days. If the case number assignment changes, you’ll have to order a re-appraisal. · VA LOANS– VA loan appraisals are valid for 6 months and after the expiry period a re-appraisal will be required. · FANNIE MAE LOANS – Fannie Mae (FNMA) loan appraisals are normally valid for a full year but require a second appraisal after 120 days. 2. THE CONDITION OF THE PROPERTY The state of the property affects its appraisal. If any major changes occur, like an improvement that would increase or decrease the value by 100 thousand dollars for example (even though it might only seem like a small change), then we will take those into account when determining how much your home is worth today versus if there was no such event occurred over time since this could have led to significant differences in net equity between you and preset grammar rules The damage can come from fire breakout accidents, natural disasters such as Floods earthquakes, etc 3. THE PRESENT SCENARIO OF THE MARKET The state of the market also affects how long an appraisal will be valid. If there’s slow change and stability, then it should only take six months for a new one to come out before you get your money back on previously paid-off homes; but when things are changing rapidly or becoming unstable – like during economic bubbles– appraisals can last 30/60 days instead because they’re more focused around specific dates rather than just general periods throughout time 4. UPDATE & EXTENSION OF APPRAISAL The lender might order an update or extension of approval if your appraisal expires. This is because they want to make sure the property’s value has not declined since it was last appraised, and also give them more time before paying out any mortgages on these properties with decreasing values at risk (as would happen over time). 5. RECERTIFICATION OF VALUE An appraiser might make a valuation that’s conditioned on the property meets certain conditions. In this case, they’re simply following up to see if those requirements have been met and will conduct certification of value when necessary. The original assessor valued your home at $500K