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THE F.I.R.E. PLAN – A STEP-BY-STEP GUIDE TO REACH YOUR FINANCIAL POTENTIAL

Some people might think that financial success just boils down to buying low and selling high. While the timing and a bit of luck from buy-sale transactions are part of the equation, long-term financial stability and freedom also depend on the long-term ownership of assets such as real estate. There’s no question that successful Real Estate Investing requires thoughtful planning and execution. But it can be tough to know where to start. Think you’re stuck in a financial rut? MY SMART COUSIN can help get your life back on track. With our track record as an experienced Real Estate Investment Coach, we teach aspiring and new real estate investors, with a particular focus on Black and Brown folks and women, how to buy a house for the price of a car, as we have done dozens of times. In this blog post, we’ll walk you through the basics of the F.I.R.E. planning method, providing you with a step-by-step guide to reaching your financial potential. So whether you’re just starting out or you’ve been investing for a while, read on to learn more! WHAT IS THE F.I.R.E. PLANNING METHOD AND WHAT ARE ITS BENEFITS? Any financial planner worth their salt will tell you that one of the most important things you can do for your future is to start saving for retirement as early as possible. The earlier you start, the more time your money has to grow and recover from financial downturns. However, for many people, the thought of retirement and legacy wealth seems like years into the future, and they simply can’t imagine putting away money for something that feels so far away. This is where the F.I.R.E. planning process comes into play. F.I.R.E. stands for Financial Independence, Retire Early. In other words, the F.I.R.E. method focuses on positioning you to achieve the kind of enduring financial freedom that allows you to cut the working cord now, not years into the future. The major benefits of this method are: ·   It allows you to map out a path to financial independence so that you can retire early. ·   It takes into account your current income and expenses and forecasts how much money you will need to save and/or generate each month in order to reach your goal. Spoiler alert—you will not be able to rely on reducing your expenses to achieve financial independence. Asset building, such as through real estate investment, will be key. ·   It provides advice on investing and offers other tips for achieving financial freedom, based on your lifestyle goals, expenses, and liabilities. While it may seem like a daunting task, with the help of the F.I.R.E. method, you can make your dream of early retirement a reality. HOW TO CREATE YOUR OWN FIRE PLAN? If you’re looking to retire early, it’s important to have a plan in place. Creating a F.I.R.E. plan can help you get specific about how much is enough to replace the income you’re currently making, through investments and entrepreneurship. Here are a few things to keep in mind when creating your own F.I.R.E. plan: ·   Determine your current financial situation. This includes understanding your income, expenses, debts, and investments. This will give you a baseline to work from as you create your plan. ·   Set your goals. What is your target retirement date? How much money do you need to have saved? What lifestyle do you want to maintain in retirement? Answering these questions will help you create a plan that is tailored to your specific goals. ·   Create a budget. Once you know your current financial situation and what your goals are, you can start to create a budget. This budget should account for both your current and future expenses. Make sure to include some flexibility in your budget so that you can account for unexpected costs. ·   Find ways to save money.  In order to retire early, you’ll need to save as much money as possible. One easy way to do this is to automate your savings so that a fixed amount is deposited into your retirement account each month. ·   Invest wisely. In addition to saving money, you’ll need to invest wisely in order to reach your goals. This means understanding the different types of investment options— from real estate investing, to stocks and bonds— and choosing the right mix of investments for your needs. It’s also important to periodically rebalance your portfolio so that it continues to align with your goals. Creating a F.I.R.E. plan can help ensure that you are on track to reach your goal of financial independence and retiring early. By following these steps, you can create a personalized roadmap that enables you to live comfortably today while moving your retirement date ever earlier. STEP-BY-STEP GUIDE TO REACHING YOUR FINANCIAL POTENTIAL Achieving financial success doesn’t happen overnight. It takes time, discipline, and a commitment to learning and growing. However, if you’re willing to put in the work, it is possible to reach your financial potential. Here’s a step-by-step guide to help you get started: ·   Set realistic goals. Determine what you want to achieve financially and develop a plan to get there. Remember to be realistic and patient; wealth accumulation takes time. ·   Stay disciplined. Once you have a plan in place, stick to it. Discipline is key when it comes to money management. ·   Make learning a priority. Financial success requires continuous learning and growth. Seek out resources (books, articles, courses, etc.) that can help you become more financially savvy. ·   Take advantage of opportunities. When presented with an opportunity that you’ve thoroughly researched and has the potential to boost your financial situation, don’t hesitate to seize it. ·   Be patient. Rome wasn’t built in a day, and likewise, a foundation for lasting financial success can’t be rushed. Couple patience with consistency; eventually, you will reach your destination. FAQs ABOUT THE F.I.R.E. PLAN AND FINANCIAL PLANNING IN GENERAL If

HOW TO DEAL WITH CRITICISM AS A REAL ESTATE INVESTOR

When you’re a Real Estate Investor, criticism is part of the job. Whether it’s from family and friends or complete strangers, you’re going to hear negative feedback. It’s important to learn how to deal with criticism in a healthy way so that it doesn’t affect your investing goals. As an Investor, do you face criticism? Don’t worry, MY SMART COUSIN is here!  We can help by providing expertise and resources for budding Real Estate Investors and homebuyers of all stripes–especially those looking to buy a house for the price of a car. As an established Real Estate Investment coach, with a particular emphasis on Black and Brown folks and women, we develop investment strategies specifically designed to meet your unique needs. Criticism, whether from others, or as a drumbeat of self-doubt that can come from within, is part of the growing experience, both in business and in life. In this blog post, we will be sharing a few tips on handling critiques in a constructive manner. CRITICISM IS A NATURAL PART OF ANY BUSINESS- LEARN TO EMBRACE IT It’s inevitable. No matter how great you are at what you do, there will always be someone who criticizes your work. And as a Real Estate Investor, you’re bound to face your fair share of criticism. Whether it’s from a tenant who’s unhappy with the condition of their unit or a friend who has questions about your investment strategy, it’s important to learn to extract any nuggets from the criticism and use them to improve your business. While it’s easy to get defensive when confronted with criticism, try to take a step back and see it from the other person’s perspective. Oftentimes, criticism is based on valid concerns that you can use to improve your business. For example, if a tenant complains about the condition of your property, that’s an opportunity to ensure that you are complying with the landlord-tenant requirements for your jurisdiction as well as to make necessary repairs and improvements. Or, if a neighbor has noise complaints regarding your tenant, view this person as your eyes and ears on the ground and enlist them to contact you first rather than calling the police so you can try to resolve the issue.  By taking the time to listen to criticism and address legitimate concerns, you open the door to turning even the most negative feedback into a positive result. USE CRITICISM TO IMPROVE YOUR SKILLS AS AN INVESTOR No one likes being criticised, but it’s an essential part of becoming a successful real estate investor. By seeking out feedback from experienced investors, you can learn where you need to improve and make the necessary changes to become successful. It’s important to remember that not all criticism is created equal; take the time to find helpful, constructive feedback from people who have your best interests at heart. With their help, you can make the changes necessary to take your investing career to the next level. FINAL THOUGHTS Criticism is a natural part of any business, but it can be tough to deal with when it’s directed at you. As a Real Estate Investor, you need to learn how to embrace criticism and use it to improve your skills. Don’t take the criticism personally – it’s not about you, it’s about the deal or property. Analyze the criticism and see if there is any truth to it. Respond politely and professionally. Doing this will help you grow as an investor and develop resilience in business. Do you face criticism as a real estate investor? How do you handle it? YOU CAN ALSO READ: SPEC HOMES: IS BUILDING A SPEC HOUSE A GOOD INVESTMENT? FOLLOW US: @MYSMARTCOUSIN

SPEC HOMES: IS BUILDING A SPEC HOUSE A GOOD INVESTMENT?

Homebuilding is on the rise and, as a Real Estate Investor or homebuyer, you may be thinking about whether investing in a spec home, that is, a custom home that is built to your specifications, is a good idea. There’s no doubt that buying a that’s already built and pre-owned is cheaper than building one from scratch. However, there are a few compelling reasons why building a custom home might be a good investment after all. In this blog post, we’ll take a closer look at what spec homes are, and consider the question of whether to build one based on current market conditions. We’ll also discuss some of the pros and cons of investing in spec homes, as food for thought, should you be considering this path. So, if you’re thinking about becoming a spec home builder, or just curious about what they are, keep reading! MY SMART COUSIN provides expert guidance on how best to get started in Real Estate Investing today and every day. We all know that becoming a property investor is no easy task. There are so many things to be taken into consideration, and the process can often seem daunting for beginners! Whether it’s purchasing your very first home to live in or investing in a property to begin your dream of owning a portfolio of investments, MY SMART COUSIN has your back as your seasoned Real Estate Coach, guiding and assisting you every step of the way. Whether you’re thinking about what type of property interests you or how to establish your budget, we help aspiring investors, with a particular focus on Black and Brown folks and women, find and invest in properties. WHAT ARE SPEC HOMES, AND WHAT ARE THE BENEFITS OF BUILDING ONE? A spec home, short for speculative home, is a property built without a specific buyer in mind. Builders typically construct spec homes in areas where they think there will be high demand for new homes. When building spec homes, investors must move on two parallel paths, both deploying a strong sales force to sell buyers a concept of their soon-to-be dream home, and working with general contractors to quickly build homes that will be appealing as-is to future buyers. The name of the game with spec homes is to sell the home as quickly as possible after it is completed.

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!

ARE MANUFACTURED HOMES A GOOD INVESTMENT IN 2023?

FINAL THOUGHTS So, are manufactured homes a good investment? The answer to that question depends on your personal circumstances and preferences. But with all the new features and benefits available now, it’s definitely worth considering if you’re in the market for a new home. And as more and more people are choosing them over traditional housing options, it seems likely that the market for manufactured homes will only continue to grow in years to come. If you’re ready to invest, we can help you find the perfect home for you. Give us a call today! YOU CAN ALSO READ: WHAT IS A DUPLEX AND SHOULD YOU INVEST IN ONE?FOLLOW US: @MYSMARTCOUSIN

WHAT IS A DUPLEX AND SHOULD YOU INVEST IN ONE?

Are you thinking of investing in real estate but aren’t sure where to start? A duplex might be a good option for you. But what is a duplex, exactly? And is it the right investment for you? A duplex is a type of property that is becoming increasingly popular with real estate investors. At MY SMART COUSIN, we want you to get into property ownership! We can help by providing expertise and resources for budding Real Estate Investors, and homebuyers of all stripes–especially those looking to buy a house for the price of a car! As Real Estate Investment Coaches, we work closely with aspiring real estate investors, focusing especially on Black and Brown folks and women, to position you for success in developing and executing your plan for investment and building generational wealth. In this blog post, we’ll answer questions on how to purchase a real investment property and the pros and cons of duplexes. So keep reading to learn more about duplexes and whether they are a good investment for you. WHAT IS A DUPLEX HOUSE AND WHAT ARE THE BENEFITS OF OWNING ONE? A duplex is a two-family property that has two units, typically side-by-side or one on top of the other. Duplexes can be owner-occupied, with one unit rented out to generate income, or they can be purchased as investment properties, with both units leased to tenants. There are several benefits to owning a duplex. · First, duplexes offer an affordable way to enter the real estate market, since they typically cost less than the price of two single-family homes. · Second, they offer the opportunity to generate rental income, which can help offset the cost of ownership. · Finally, duplexes offer flexibility in terms of living arrangements: owners can choose to live in one unit and rent out the other, or they can rent out both units and live elsewhere. Ultimately, owning a duplex can be a smart financial decision for those looking to invest in real estate. HOW DO YOU KNOW IF A DUPLEX IS A RIGHT INVESTMENT FOR YOU AND YOUR FAMILY? When it comes to investing in Real Estate, there are many different options to choose from. For those who are looking for a solid investment that will provide income and appreciation over time, a duplex can be a great option. But how do you know if a duplex is a right choice for you? There are a few things to consider before making this important decision. · First, take a look at your financial situation. Do you have enough saved up for a down payment? Are you comfortable with the amount of debt you would be taking on? Be sure to consult with a financial advisor to get a clear picture of what you can afford. · Next, consider your goals for the property. Are you looking for an investment that will generate a rental income? Or are you hoping to live in one unit and rent out the other? Make sure that your goals align with the type of property you’re considering. · Finally, think about the location and condition of the duplex. Is it close to public transportation and other amenities? Is it in need of any major repairs or updates? These are all important factors to consider when making your decision. By taking the time to think about these things, you can be sure that you’re making the right choice for your needs and goals. A duplex can be an excellent investment, but it’s not right for everyone. Be sure to do your research before making any decisions. WHAT ARE THE RISKS AND CONSIDERATIONS ASSOCIATED WITH INVESTING IN A DUPLEX, AND HOW CAN YOU MITIGATE THEM? One of the biggest considerations associated with investing in a duplex is determining whether you prefer to live far away from your renters, or a door knocks away. In many ways, renting out a duplex is like having a roommate upstairs or next door. If you prefer privacy or even anonymity when it comes to renting to a tenant, then a duplex may not be a great option. A related consideration when investing in a duplex is the potential for tenant turnover. If you rely on rental income to make your mortgage payment for the property, you could find yourself in a difficult situation if your tenant moves out unexpectedly. To mitigate this risk, it’s important to have a good relationship with your tenant and to keep your property well-maintained. Also on the list of risks is the possibility of damage to your property. While this is a risk for any investment property, it hits especially close to home if the damage affects the unit you live in as well, causing both a major financial setback and disruption to your family life. To protect yourself, it’s important to vet your potential tenant and purchase an adequate amount of home insurance. Finally, it’s important to be aware of the potential for increased maintenance costs. A duplex is essentially two homes wrapped in one, which means that there are twice as many potential problems that can arise. By budgeting for unexpected repairs and setting aside money each month, you can help cushion the blow if something goes wrong. While there are some risks associated with investing in a duplex property, there are also ways to mitigate those risks. By being prepared financially and maintaining a good relationship with your tenants, you can help protect yourself from potential pitfalls. ARE THERE ANY OTHER COSTS ASSOCIATED WITH OWNING A DUPLEX THAT INVESTORS SHOULD BE AWARE OF BEFORE MAKING THEIR DECISION? When it comes to duplexes, there are a few things that potential investors should keep in mind. · First, duplexes typically require a higher down payment than a single-family home. This is because lenders view them as more risky investments. · Additionally, duplexes also come with higher monthly carrying costs, such as property taxes and insurance premiums. ·  And finally, if you’re planning on living

FEE SIMPLE OWNERSHIP VS. LEASEHOLD: KEY DIFFERENCES

When you’re considering buying a property, it’s important to understand the difference between fee simple ownership and leasehold. Why? Because with fee simple ownership, you own the property outright – there are no restrictions on what you can do with it. With a leasehold, on the other hand, you only reside in the property for a limited period of time; after that, the property reverts to the owner. Additionally, leaseholders may be subject to certain restrictions, such as not being able to make changes to the interior or exterior of the property, something that can be particularly important when considering a commercial property that may need to be redesigned to accommodate a particular business type. So before you open your wallet, be sure to fully understand the implications of each type of ownership. MY SMART COUSIN Want to get into property ownership? We can help you move from vision to execution! At MY SMART COUSIN, we provide the expertise and resources for budding property investors and homebuyers of all stripes, especially those who are looking to buy a house for the price of a car, the same way we have dozens of times.  As Real Estate Investment Coaches, we work with aspiring homeowners and investors, with a particular focus on Black and Brown folks and women, to develop and implement an investment strategy, including, whether you should consider fee simple or leasehold ownership. WHAT IS FEE SIMPLE OWNERSHIP? Fee simple ownership is the most complete form of ownership. The owner has full use and enjoyment of the property and can dispose of it as he or she wishes. There are two types of fee simple ownership: Fee Simple Absolute and Fee Simple Defeasible. ·   Fee Simple Absolute is the most common type of fee simple ownership. The owner has an unrestricted right to enjoy and dispose of the property. ·   Fee Simple Defeasible is less common and may be subject to certain conditions, such as the payment of taxes, or compliance with zoning regulations. In either case, fee simple ownership gives the owner a great deal of control over the property. WHAT IS A LEASEHOLD? When you hear the word “leasehold,” you might think of leasing a car. But in the context of real estate, a leasehold is an ownership interest in land that is leased from a lessor. ·   The most common type of leasehold is a residential lease, in which a tenant pays rent to a landlord in exchange for the right to live on the property. Leasehold structures are often used for manufactured housing, where the manufactured house itself might be owned by the resident, but the land that the house sits on is leased. ·   Commercial leases are also common and can involve anything from office space to parking lots. Leaseholds can be either short-term or long-term, and usually include an option to renew the lease at the end of the term. In some cases, a leasehold may also give the tenant the right to purchase the property outright. Whether you’re looking for a place to live or a place to do business, it’s important to understand the basics of leaseholds before signing any documents. SOME OF THE KEY DIFFERENCES BETWEEN FEE SIMPLE OWNERSHIP AND LEASEHOLD When you purchase a home, you may choose between fee simple ownership and leasehold ownership. While both options offer the potential for long-term stability and security, there are some key differences that you should be aware of before making your decision. ·   Fee simple ownership gives you full and unencumbered ownership of your home. This means that you will own the property with effectively no strings attached, and can do with it as you please. Because you own the property in full, you also own all of the attendant obligations including responsibility for maintenance, repairs, property taxes, and property insurance. Leasehold ownership, on the other hand, does not provide the same level of control and the same scope of responsibility. Instead, you will be leasing the property from a landlord for a set period of time. During the lease period, you will be responsible for paying rent and following any rules or regulations that are set by the landlord. You will also be responsible for paying utilities and other expenses that the landlord assigns to you in the lease, such as trash, pest control, and landscaping. At the end of the lease, the property will revert to the landlord. Another key difference between fee simple ownership and leasehold ownership is the length of time that each option provides. ·   Fee simple ownership is typically permanent, meaning that you will own the property for as long as you wish. Leasehold ownership, meanwhile, is typically much shorter in duration. Most leases are for a maximum of 99 years, after which point the property will revert to the landlord. This means that if you purchase a leasehold property, you should be prepared to relinquish ownership at some point in the future. Next, it is important to note that fee simple ownership typically offers more security than leasehold ownership. This is because fee-simple ownership gives you full control over your property, while leasehold ownership leaves many decisions up to the landlord. As such, fee simple ownership may be a better option if you are looking for a long-term investment. ·   Fee simple ownership is typically more expensive than leasehold ownership because you are buying the property outright, and with it, the attendant risks, taxes, and obligations of ownership. With a leasehold, you are only paying for the right to use the property for a set period. Some leases, particularly very long-term leases, require that some portion of maintenance be paid by the lessee, so you will want to explore and negotiate this. ·   The duration of a fee simple ownership property is effectively forever, or until the owner sells it. Leasehold properties usually have a maximum lease duration of 99 years, and in practice, are

HOW TO BUILD UNSHAKABLE CONFIDENCE AS A REAL ESTATE INVESTOR

Real estate investing is a process that can be both thrilling and nerve-wracking. On the one hand, it’s an opportunity to earn passive income and grow your wealth. On the other hand, it’s also a big risk. This is where MY SMART COUSIN comes in! At MY SMART COUSIN, we offer tailored solutions in every aspect of real estate investment and homeownership, with a particular focus on Black, Brown, and women real estate investors. Whether you’re looking to buy a house for the price of a car, or are looking to buy at a higher price point, we can help you proceed confidently and take you from strategy to a targeted list of matching properties, to negotiation, financing, closing, and property management. There are so many things that can go wrong when considering property investment, and it’s easy to second-guess yourself. So, how do you build confidence and knowledge in your gut that you’re making the right decisions as a budding real estate investor? The answer is simple: knowledge. The more you know about real estate investing, the more confident you will be, positioning you to grow your experience, the second component in building confidence. And the best way to gain knowledge is by doing your research and learning from others who have gone before you. Here are a few tips to get you started: · READ BOOKS AND BLOGS ABOUT REAL ESTATE INVESTING There is a wealth of free information available. Of course, caution is a must, as not all that glitters is gold. To sharpen your Spidey senses and ability to find hidden property gems, start reading and educating yourself about the process of real estate investing. And don’t stop at just one book or blog post—keep reading and learning as much as you can. The more you know, the more confident you will be. ·  JOIN A LOCAL OR ONLINE GROUP OF REAL ESTATE INVESTORS These groups are full of experienced investors who are happy to share their knowledge with newcomers. By joining one of these groups, you’ll have access to a wealth of information and experience that you can tap into when needed. · MEET WITH OTHER REAL ESTATE INVESTORS IN YOUR AREA This is a great way to network and learn about different investment strategies firsthand. You might even find some partners for future deals! · DO YOUR DUE DILIGENCE Before making any investment, you must do your due diligence. This means doing your research and being armed with as much knowledge as possible about the property and the market. When you have all the facts, it’s easier to make decisions with confidence. If you’re ever feeling hesitant, go back and review your numbers. This will help remind you why this is a good investment. ·  HAVE A MENTOR Having someone who can guide and support you is crucial when starting any new venture—and real estate investing is no different. Find someone who has been successful in this business and ask for their advice. Having a mentor will help boost your confidence because you’ll know that there’s someone in your corner who believes in you and wants to see you succeed. · TAKE SMALL STEPS Investing in real estate doesn’t have to mean buying a huge property, sight unseen. Start small by focusing on wholesaling or low-cost fix-and-flip properties in your local area. Once you have some skin in the game and see first-hand what it takes (and how rewarding it can be), then you can start thinking about bigger investments down the road. ·  SET SMALL GOALS AND ACHIEVE THEM One of the best ways to build confidence is to set small goals and then achieve them. When you take the time to celebrate your wins—no matter how small they may be—you’re reminding reiterating yourself that you can achieve your goals. This will give you the boost you need to keep going when the going gets tough. ·  GET OUT OF YOUR COMFORT ZONE One of the best ways to grow as a person—and as an investor—is to regularly get out of your comfort zone. When you challenge yourself and step outside of your norm, you’ll expand your learning, gain new skills, and build your confidence in the process. You may not always succeed when you attempt something new, but each time you try, you’ll become just a little bit better and more confident. FINAL THOUGHTS Building unshakable confidence as a real estate investor takes time and effort. But it’s worth pursuing because when you’re confident in your abilities, you’re more likely to succeed. So start reading, join some groups, and get out there and meet people. The more you know, the more effective you can be! YOU CAN ALSO READ: WHAT IS THE GROSS RENT MULTIPLIER (GRM) IN REAL ESTATE? FOLLOW US: @MYSMARTCOUSIN