Archive for the Money Category

Tuck Associates Discusses How Long After Paying Off Credit Card Debt Should You Wait to Start the Home Buying Process

By on September 17, 2019

Paying off credit card debt can make it much easier to get approved for a mortgage. However, you may not necessarily see the benefits of paying down those balances right away. Let’s take a look at how committing to getting debt-free prior to buying a house can impact your timeline for doing so.

It Could Take 30 to 45 Days to See a Change to Your Credit Score

Credit card companies generally report account information to the credit bureaus several hours or days after you make payment. If you make a payment once per month, you can expect to see changes to your credit score every four to six weeks. Therefore, it may be worth your while to wait until your credit score has updated. This could be especially true if your score is currently on the fringes of what a lender may deem acceptable to approve a mortgage application.

Have Your Cash Reserves Seasoned Enough Yet?

Traditional mortgage lenders typically want to see that you have a reliable source of cash reserves in the bank. Furthermore, they likely want to see that they have been in your bank account for 60 to 90 days. This is often referred to as a seasoning period. If you use your current savings to pay down a credit card debt, it could take several weeks or months to replenish those savings.

Once that happens, you will ideally wait another several weeks or months to meet a lender’s seasoning requirements. It is worth mentioning that government mortgage products such an FHA or VA loans don’t have cash reserve requirements. However, having money in the bank can make it easier to get loan approval at a favorable interest rate.

Can You Afford to Make a Down Payment?

In addition to having cash reserves on hand, you may also be required to make a down payment as part of the loan approval process. Traditional mortgages usually require down payments of 20% while government loans require down payments of 5% or less. In either scenario, you will likely need to save thousands of dollars to cover this expense and other closing costs. The folks at companies such as Tuck Associates may be able to help you learn more about how paying down credit card debt could influence your home shopping journey.

Will You Have Enough Money to Maintain the Home?

While a home inspection could reveal problems with a property, there is no way to predict when a repair or upgrade will need to be made. For instance, a roof could start to leak even if it looked fine during the inspection, and it is a repair that you can’t wait to make despite the fact that it could cost up to $10,000 to have done. Therefore, it is important that you wait to establish an emergency fund before a home purchase becomes official. A representative from a firm such as Tuck Associates could help you create a plan that helps you pay down debt without fully depleting your savings.

There is no hard rule as it relates to how long you need to wait to buy a home after paying down credit card debt. Instead, you’ll want to hold off on the purchase until you feel comfortable paying all of the costs associated with owning a home

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Benefits of Hard Money Loans

By on September 7, 2019

What is a Hard Money Loan? –

According to Investopedia, hard money loans are usually a real estate loans that have their terms based almost entirely upon the property’s value as collateral. Hard money loans are not issued on the basis of borrower creditworthiness. Hard money lenders are most always private investors.

Due to the risky nature of these types of loans, the interest rates are high and the repayment periods are short.

These loans have a legitimate spot in real estate because of some of their important benefits.

Faster Access to Capital –

According to Realtor.com, the beauty of a hard money loan for a real estate investor is when they see an opportunity that must be acquired quickly. The hard money loan approval process is quick and easy, so the investor can snap up their acquisition before someone else grabs it. In fact, traditional mortgage loans take around 45 days to fund the loan, but some hard money loans are funded within 24 hours.

Easy Approval –

So long as the borrower has the requisite down payment and is trying to purchase a desirable property that has equity and investment potential, the lender does not look into their credit history.

Flexibility in Repayment Options –

Investopedia reported that, since hard money lenders aren’t straight-jacketed in a traditional underwriting procedure, the borrowers have the capability of negotiating the repayment schedule more for their benefit.

Short Term –

According to Investopedia, even though the interest rates are high, the terms of these loans are usually short, often only one to three years. This helps home flippers to buy, rehab and sell homes quickly. They don’t want to be bothered with a 15- to 30-year loan for a home that they will only own for a year or less.

The same is true of builders who might acquire a residential lot, build on it and sell the home and property. They don’t need to go through the hassle and red tape of a mortgage loan.

In the case of both the builder and the flipper, if they have played their cards right, the higher costs of the loan will be offset by the high profit potential of their investment.

Under-Served Borrowers Can Obtain These Loans –

The San Francisco Chronicle reports that hard money loans often go to higher-risk situations, such as borrowers who cannot verify their income and financial information or who do not have good credit.

Hard Money Loans Help in Negotiations –

Those with hard money loans can close escrow so quickly that the investors may be able to negotiate lower prices from sellers.

Hard Money Lenders Can Be a Second Set of Eyeballs –

Hard money lenders are real estate experts and will only purchase property that they feel will easily sell and recover their losses in the event of your default. If they are declining your loan application, it is important to find out their rationale. Their advice may save you from a bad investment.

At first, with their high-interest rates, hard money loans may not seem useful. Actually, they are an important source of funding for anyone who does not intend upon holding the loan and the home for long, like flippers and builders, and for those who may not have the metrics that qualify them for traditional mortgage loans

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Punch Associates Discuss How to Pay Off Your Loan and Credit Card Debt Quicker

By on August 31, 2019

No one likes to be in debt, which is why many people are looking for ways to get rid of loans and debt quickly. Fortunately, there are effective methods that you could use to alleviate this issue. Here are some habits that you could immerse yourself in to get the burden of debt off your back as quickly as possible.

Live Within Your Means

This will take quite a bit of dedication and a commitment to a lifestyle change, but if your aim is to get the debt removed quickly, you need to start living within your means and not spending money that you do not have.

If you were to calculate your expenses and the income you take in weighed against what goes away from purchases, you should be able to get a better indication of how much you could put towards debt in each month. However, you should also be taking a close look at what exactly you are spending your money on. Punch Associates could show you how you can better live within what you can afford and effective debt paying methods.

Adding up things such as Netflix subscriptions or gym memberships could potentially be resulting in hundreds of dollars that you could be putting towards debt. If something you are spending on isn’t an immediate need or is something you know you could survive without, put it towards debt and you will find that you have more money than you think.

Pay as Much As You Can Afford Per Month

This is another obvious tip, but paying as much as you can per month will also lower your debt burden much quicker. Many people want to give themselves a false sense of security by settling for the minimum payments to give themselves more money to spend on other pursuits.

However, all making the minimum payment does is extend the shelf life of the loan or debt you have because it barely dips into the principal. If you really want to make a dent in your debt, you should be striving to pay as much as you can reasonably afford per month.

Do not fall into the trap of only settling for the minimum, because while you still be paying off some of your debt per month, you will end up making more payments for a longer period of time. For more information on effective ways of paying off debt, you could check out expert information at Punch Associates.

Find a Side Hustle

Finding an extra stream of income could be another effective way to ensure that you pay off your debt quicker. Being reliant on one job and one stream of income could be troublesome for many, especially considering the volatile nature of many jobs that could easily be replaced with technology.

If you were to find certain freelancing work or other methods of getting money per week, you could be ding yourself a big favor and make yourself better prepared to pay off your debts. There are many unusual ways to make money. Find what is comfortable for you and you could be relieving a big burden off of your shoulders

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Ballast Associates Discusses How to Pay Off Debt When You’re Drowning in It

By on July 31, 2019

When you’re drowning in debt, money – or the lack thereof – is all you can think about. It requires courage and discipline to overcome debt, especially if you feel like you’re drowning in it. That said, you may not know how to take care of debt once you’re that far gone. Fortunately, this is something that we know about at Ballast Associates. If you’re drowning in debt and you don’t know how to get out, you might try implementing these three tips.

1. Stop Accruing Debt

A report in the U.S. News and World Report cautions against ignoring the debt. Once you’ve determined that you want to get out of debt, get into action. You must first determine how you got into debt in the first place. Do you use your credit cards when you could use cash? Do you buy things that you can’t afford, thinking that you can pay for them on time? Do you spend more at the grocery store than you should because you don’t pay attention to your shopping list?

If any of these issues turn out to be the case, then try keeping a money journal. Each time you make a purchase, write down that purchase in your book. Your spending patterns will start to emerge very quickly. You’ll see what you’ve spent on your rent/ mortgage, utilities, etc. and what you’ve spent on unnecessary extras.

It’s hard to ignore these patterns in your budget when you’ve written them down. Making the pattern conscious is a key way to change your spending habits because writing down your purchases forces you to look at how you spend your money.

2. Budget, Budget, Budget

At Ballast Associates, we usually recommend that someone in your position create a strict budget. This budget cuts out the unnecessary purchases you might make. These could be that weekly coffee runs to Starbucks with your friends. (You often pay for everyone’s drinks.) It could be the lunches that you eat in the local bistro every day. It might be the night at the movies with your family that cost you at least $100.

Once you make your budget, earmark the money you would have used to purchase any of these “extras” as money that will go toward your debt instead. Additionally, make sure your budget adequately covers expenses, like your utilities, gas for your car, etc.

If you can’t pay for your expenses using just your income, then you’re either not making enough money or you’re not budgeting enough for each of your expenses. If the reason is the former, then you need to look at your income, something we’ll do in the next section. If it’s the latter, then adjust how much you budget for each expense.

3. Income Matters

The Money Under 30 website brings up an uncomfortable truth. It’s nearly impossible to pay off a good chunk of debt if your income is too small. Your income is the greatest defense you have against debt. (Well, that and good money habits.)

If your income is not enough, then consider getting a part-time job, selling off some of your assets, or getting a higher-paying job. For example, if you get a gig in a local coffee shop that pays you about $1,000 extra a month, that’s $12,000 more you can put toward your debt by the end of the year.

Yes, it’s difficult to work more. However, once you realize that you’ll get out of debt faster by doing this, then it may make it easier to go this route, at least temporarily.

Final Thoughts

Getting out of debt requires discipline and truth. That is to say, if you can’t look at your financial situation in the proverbial face, then you’ll never be able to move beyond your debt. Once you are able to do this, then you’ll also have the courage to create a budget and to adjust your income so that getting out of debt becomes inevitable

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Second City Advisors Discusses How to Find Financial Freedom After Racking Up Thousands in Credit Card Debt

By on July 31, 2019

People accrue credit card debt for a number of reasons. Maybe they have a big event like a wedding that they need to pay for. Maybe they get sick and need to live on the credit cards for a while. Or maybe they’ve just used their cards without thinking. At Second City Advisors, we’ve witnessed all of these things. In fact, getting a handle on credit card debt is one reason why so many people come to us for advice.

Fortunately, getting out of credit card debt is simple. It may not be easy but it is simple if that makes sense. When people talk with us about their debt, we offer up the following three tips to help them tackle their credit card debt.

1. Keeping the Old

One of the first things that the Second City Advisors tell clients is that they must create new spending habits if they want to gain financial freedom. Keeping your old spending habits is one way to ensure that you never get a handle on your credit card debt.

To conquer this, Debt.org recommends that you start small. Instead of going out for the daily coffee, plan on buying a thermos and bringing your coffee with you to work. Take your lunch to work instead of eating out. Borrow movies from the library instead of going to the movies. Consider consolidating the credit cards to help pay down some of the higher interest rates. These are just some of the ways you can change your debt habits. Change your habits, and once you’re done paying down your cards, you won’t have an issue with them again.

2. Create a Budget

Budgeting isn’t anyone’s favorite topic. However, according to the Simple Dollar, unless you’re willing to get rid of all your spending “extras,” you will remain in debt. So, what are the extras? They are anything that you don’t require to live day-to-day. It’s the dinners out with friends or a night at the movies. Even an expensive vacation can pull you off track.

Basically, on this kind of budget, you’re going to pay expenses, like your rent/ mortgage, utilities, debt, etc. You’re also going to put any extra money you have toward your debt. That’s why you’ll forego a night at the movies for a while (or other entertainment). You won’t need to adhere to this bare-bones budget forever. You just need to do it until you’re out of debt. Then, you can relax your budgeting efforts a bit.

3. Pay More

Typically, people only pay the minimum on their credit cards. Maybe you’re the same way. That’s a mistake when you’re trying to pay down your credit card debt. Any credit card debt you have comes with interest. That interest adds up and makes paying down your cards all the more difficult.

Pay more than the minimum amount if you want things to get easier. By combining this tactic with the previous two on this list, you’ll be putting some real power behind your efforts.

Concluding Thoughts

Paying down your credit cards counts as one of the most important steps you can take in your debt-reduction plans. Carrying a credit card balance means that you’ll always be paying more on your credit cards; you’ll pay the principal and the interest you accrue. Doing this requires you to change your spending mindset, to adopt a realistic, yet strict budget, ad to pay more than the minimum balance due on the cards

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5 Tips That Will Help You Take Better Control of Your Personal Finances

By on July 19, 2019

The first time you ever get paid for the work you put in is an incredibly rewarding experience.

Suddenly, you realize that all those years of studying and preparing yourself to become a member of the workforce have paid off because your performance has been deemed good enough to warrant compensation.

You may be tempted to celebrate to your heart’s content with that first paycheck, but of course, that’s not exactly the responsible way to handle things. As the person in charge of your own money, you must handle and manage it carefully.

Financial experts such as Trout Associates can offer all kinds of personal finance tips that should prove helpful. For this article, you’ll be learning more about the fundamentals – the basics of personal finance that will help you get on the right track and stay there.

Without further ado, it’s time to check out the tips that will help you stay in good financial shape long-term.

1. Set Money aside for Your Living Expenses

The first thing you need to do in order to get your personal finances in order is to create a budget. This budget should account for all the things you have to spend on to get through every day.

Save some money for your groceries or trips to the farmer’s market if you want to eat healthier.

If you have a car, make sure that there’s money earmarked for gas. For those planning to take advantage of public transportation, you can set aside a little less and save more money in the short-term.

Don’t forget about those bills that you have to pay at certain times over the course of a month. Be as detailed as you can be while putting together your budget because you don’t want to be short on cash when an important payment is due.

2. Stay Committed to Paying Off Your Debts

Taking out loans is almost a rite of passage among members of the working world. Student and auto loans are among the types of debts that many people have.

Having debt is no issue, but being unable to pay it off is a different matter altogether.

As soon as you start earning a set salary, make sure that at least some portion of your paycheck goes towards your total debt. Try to pay more than the minimum amount if you can afford to as well.

If you want to make things less confusing, you can also opt to consolidate your debts. That move is worth considering if you can secure a low-interest debt consolidation loan and have enough cash coming in to cover the scheduled payments, according to Nerd Wallet.

3. Manage Your Credit

Another reason why it’s a wise move to pay off your debts is because that can positively impact your credit rating.

In the event that you need to take out a larger loan to purchase your dream home, having bad credit can really make things more difficult. You may only be offered high interest rates together with a mortgage loan or you may even have to provide collateral. Some people with truly poor credit may not even be offered a loan at all.

Experian has a handy guide you can use to determine what kind of credit score you can have. Adopt the financial habits necessary to keep your credit score in the “good” range at the very least, because anything worse than that can spell bad things for your financial future.

4. Save for Emergencies and Retirement

Emergencies will inevitably happen.

Hopefully, it’s something relatively minor in the grand scheme of things like your car breaking down instead of you needing a trip to the hospital. In any case, you should have some money set aside for those rainy days.

While crafting your budget, make sure that at least some of your money is going into an emergency fund. That way, no emergency will catch you completely off guard.

It’s also a good idea to start saving as early as you can for retirement. Per CNN Money, financial planners urge people to save at least 10 to 15 percent of their income and put that money into a retirement fund.

5. Invest in Insurance

Considering that you’re already being asked to create a budget, pay off debts, set aside money for emergencies and retirement, you may think that you can just skip insurance for now, but that wouldn’t be a wise move.

By securing health insurance, you can save a significant amount of money on your medical bills. You may not even have to use your emergency fund. Renter’s or homeowner’s insurance can also help you out of some potentially tight spots that could have otherwise exhausted your current finances.

By tightening your belt a little further and paying for insurance today, you can avoid having to drain your bank accounts in the future if something unfortunate happens.

Authorities in the financial industry such as Trout Associates understand how difficult it can be for people to manage their personal finances, but it can be done. As long as you stay smart, disciplined, and determined, taking control of your personal finances should not prove to be an overwhelming endeavor.

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Interstate Associates Shares What You Need to Know About Purchasing a Home When You Have Credit Card Debt

By on July 17, 2019

It is possible to buy a home if you have credit card debt. However, lenders will want to make sure that it doesn’t interfere with your ability to make a mortgage payment on time each month. Let’s look at what you need to know about buying a home if you owe money to credit card companies.

Be Aware of Debt-to-Income Rules

To have the best odds of obtaining a home loan, keep your debt-to-income (DTI) ratio at 28% or less before accounting for the mortgage. Furthermore, your DTI should be no more than 36% after adding the mortgage to your budget. It is worth noting that you could still get a loan even if you don’t fall within these guidelines.

In many cases, homebuyers seeking FHA or USDA loans can be approved with a DTI as high as 50%. However, this will depend on how much money you make, how long you have been employed and other criteria that a lender feels is relevant when making a loan decision.

Credit Card Debt Can Influence Your Credit Score

Your credit score is partially determined by your credit utilization rate. Ideally, you will use no more than 30 to 35% of your overall available credit, and it is also a good idea to use no more than 30 to 35% of any individual line of credit. When you go above this threshold, lenders may start to doubt your ability to manage debt properly.

Therefore, your credit score will likely be lower than it could be assuming that you make your payments on time and have a sufficient credit history. If you don’t make payments on time, it could have a serious impact on your credit score. In some cases, a missed payment can reduce your score by 100 points or more.

Interest Payments Can Hinder Your Ability to Save for a Down Payment

Financial professionals such as those at Interstate Associates know that credit cards come with high-interest rates. If you have average to poor credit, you could be paying an interest rate as high as 29.99%. This can result in hundreds or thousands of dollars being paid to lenders each year without making much a debt in the principal balance.

If you didn’t have credit card debt, you could put that money away to make a down payment on a home. Although you can get a mortgage without making a down payment, it can cost more to do so. Most borrowers have to purchase private mortgage insurance (PMI) if they don’t put at least 20% of the purchase price down at closing.

Monthly PMI payments are equal to about 1% of the home’s value on an annualized basis. Therefore, if your home was purchased for $100,000, you will pay about $1,000 a year in mortgage insurance. The good news is that someone from Interstate Associates or another financial firm may be able to help you pay off your credit card debt faster and avoid this extra payment.

Credit card debt can make it harder to afford the home that you really want or get approved for a loan at all. In some cases, it can make a home more expensive than you anticipated. Therefore, it is important to take such debt seriously and make a plan to pay it off before looking for homes or applying for mortgages.

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Graylock Advisors on the Basics of Personal Finance

By on July 12, 2019

Unfortunately, our schools don’t teach us enough about personal finance to help us survive in the adult world. Without this knowledge, it becomes all too easy to fall into a bad financial situation. This overview can provide you with the basics, so you can improve your finances, regardless of what stage of life you may be in at the moment.

Build an Actionable Budget

To get started, you have to work out a budget that will work for you. This means writing out your total monthly income and comparing it to your total expenses. If your expenses are more than your income, you either need to reduce what you owe or increase your income. As your situation changes (higher pay, additional expense, etc.), you should work out a new budget that accounts for those lifestyle changes. Instead of making a budget once and trying to force your changing life to fit within it, your budget should be regularly re-evaluated.

Cut Expenses

Even if your budget is fairly comfortable, you can still look for ways to cut expenses. There’s no reason to waste money that you don’t have to spend, especially when that can be put towards your savings. If you stream television online, there’s no reason to maintain cable or satellite service. If everyone in the household has a cell phone, you can also get rid of your land line. There may be dozens of other ways you can cut expenses without really sacrificing comfort.

Pay Down Your Debt

Now, it’s time to look at the amount you owe to your creditors. Imagine how much you could save by eliminating that debt. One of the best strategies for tackling debt is to use the snowball principle, which involves paying off the smallest debts first. As you pay off each debt, use the money you were devoting to that creditor to pay off the next smallest debt. If your debts seem too heavy to tackle, using a debt consolidation service, such as that which is offered by Graylock Advisors, can help you. By using this type of service, you can make your debts more manageable without having to resort to bankruptcy.

Rebuild Your Credit

You have already started to rebuild your credit by paying off what you owe. You can also improve your credit rating by ensuring every bill is paid on time each month. Even accounts that wouldn’t normally be reported to the credit bureaus, such as utility payments, will be reported for being late or delinquent. Another good way to rebuild your credit is to get a secured credit card with a low limit. Since a secured card is linked to a checking account, they’re easier to get and can help you rebuild a positive credit rating.

Start an Emergency Fund

The primary reason people fall into debt is because they get hit with unexpected financial emergencies. Expensive home repairs, car trouble, and medical care expenses are among the top reasons people end up relying on credit to survive. Remember that money you were using to pay off your creditors? Stop spending it. Instead, put it into a savings account and leave it there until you really need it. Finance experts, such as those at Graylock Advisors, recommend saving enough money each month to make your budget feel snug. You shouldn’t be putting away so much that you’re sacrificing the essentials, but you also shouldn’t have large amounts left over to spend, either.

Start a Retirement Investment Account

In addition to starting an emergency savings fund, you should also be contributing to a retirement account. You’re never too young to start investing in your future. You never know when illness or injury will strike and leave you facing a lifetime of healthcare costs. Additionally, cognitive and physical decline happens to everyone, sooner or later. Having a decent nest egg will help you take better care of yourself when you do reach your senior years.

Create an Estate Plan

Consider what you will leave behind for your spouse and children. While most states will distribute your assets among your spouse and children by default, it’s far better to have estate plans in place. This can help you ensure specific assets go to those beneficiaries you choose, such as leaving your home to a spouse. Additionally, a will can help ensure you get to choose who will be appointed guardianship of your minor children.

Arranging for Your End of Life Care

Many people don’t realize this, but estate planning also includes arranging for powers of attorney. Your estate attorney can help you set up a financial power of attorney, who will be responsible for managing your finances in the event that you’re unable to act on your own behalf. Similarly, a medical proxy can help you determine who will be trusted to make your medical care decisions. These documents will go into effect at a time when you may be physically unable to act for yourself, or when you may be mentally compromised. Failing to make these plans in advance may mean letting the courts appoint proxies whom you do not trust.


Using these guidelines, you can begin to create a better future for yourself. While it may take a few years, depending on your current circumstances, following a well-planned strategy can help you improve your financial situation. In just a few years, your economic struggles will seem like a bad dream.

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Benefits of a Consolidation Loan Like Those Offered by Brice Capital

By on June 29, 2019

A life filled with debt is stressful because you never get peace with creditors and debt collectors running after you. As much as you want to pretend that debt doesn’t exist, collectors come to haunt you in the mail, via text, or on your phone. Debt consolidation may just be the answer to this predicament because it lumps your multiple debt into one single, low-interest loan, which also gives you ample time to pay it off. How do you know when this is the right choice? Read below to find out when to consider a consolidation loan.

Quash Those Headaches from Too Many Debts

If you have excessive debts like a mortgage, car loans, student loans, and credit card debt, and you’re having a difficult time paying it off, a consolidation loan is a good option for you. Brice Capital, a private funding firm that specializes in debt consolidation, mentioned that consolidating multiple loans into a single, lower-interest payment plan makes it easier for you to pay all your debt off. Keep in mind that your debt can be significant but it must still be manageable for you, so your consolidation loan can be effective.

Banish Confusion from Multiple Billing Cycles

Having numerous loans mean you also have to keep track of all the details like payment due dates, varied interest rates, companies owed, and methods of payment (ex. check, auto-debit, on-site). Consolidating these multiple sources of debt into one single loan option makes your financial life more organized. One loan translates to one due date, making the task of tracking the monthly premiums easier. Now, you have no more excuse for forgetting to settle that monthly loan payment. 

Benefit from Zero Percent or Low Interest Options

If your credit score is decent enough to warrant a zero percent credit card, then by all means take that chance to consolidate all your loans. Hopefully the zero percent installment payment plan lasts for two years or more. Sometimes, there are low-interest debt consolidation loans offered by banks, which are much better than the higher interest rates you pay with your numerous credit cards. Using this option minimizes the accrued interest over time. 

Access to Proper Cash Flow

Choosing to get a consolidation loan is a smart move, but make sure you have access to sufficient cash flow. Brice Capital, a leading finance institution, noted that private lenders are more than willing to work out debt consolidation terms with their clients. Most importantly, work on having access to a steady flow of income, which can consistently cover your monthly debt payments and other expenses. Consolidation will likely reduce what you owe, but it won’t make your debts disappear on their own.

Resolve to Break Free from Debt

When you have firmed up your resolve to break free from the vicious cycle of debt, it is time to consider a consolidation loan. If you are still stuck with your old money-wasting ways and bad spending habits, then no amount of financial intervention can help bail you out. Make a financial get-out-of-debt plan and stick to it no matter what happens. This can be as simple as limiting yourself to one credit card or choosing to consolidate all outstanding debt in one account. 

In conclusion, you have to be mindful that you’re cutting expenses, altering your lifestyle, and hiding those credit cards away to make a significant improvement on your financial health. Success with consolidation requires a firm resolution to never rack up more debt until you have fully paid for existing ones. Having self-control, being determined, and possessing a strong sense of responsibility to follow through with your financial plans are all critical components to help you break the vicious debt cycle and be able to live financially free. 

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Craig Nassi Shares Things to Know Before Starting Your Real Estate Portfolio

By on June 28, 2019

There are fortunes to be made in real estate provided you know what you’re getting yourself into. Craig Nassi, a licensed real estate broker in New York, said that there are three ways to make money from real estate:


• Benefiting from an increase in property value.
• Gaining rental income from leased properties.
• Generating profits from real estate operations (such as vending machines in your office buildings, coin-op washing machines in your condominiums, and the like). 

He also shared that real estate investment is just like any other business that carries some degree of risk. Thus, it is critical to be informed so you can mitigate these risks, ensure profit on your investment, and save yourself from huge losses. He mentions taking note of these considerations before buying the first property or even any property to add to your portfolio.

Don’t Let Your Emotions Rule You

Real estate is not about emotions but economics. Most people listen to their heart when buying their first home. It may be fine if you foresee yourself growing old and living there for years. However, it is different when it comes to a purely investment property. Logically negotiate the lowest possible price because the lower it is, the higher your profit margin will be. Use analytical tools and financial assessments rather than relying on personal likes and dislikes. Data is king when it comes to investments.

Do Extensive Research

First, identify what you will be using the property for. Is it primarily for rental income? Are you looking to hold on to it as a vacation home, while waiting for its property value to increase? Research the area around the investment property you are buying. Are there any future construction plans near the area? Know all these as it will impact your property’s value down the line. Craig Nassi noted that the most important consideration is location. Ensure that the property is situated in an area that will attract the clients you hope to rent or sell the property to. 

Secure A Down Payment

Any home you purchase will require a down payment. Anyone can close the deal with as little as a 3% down payment. However, an investment property requires at least a 20% down payment because mortgage insurance does not apply to investment properties. On top of that, these properties have a more stringent approval process and requirements. 

Calculate Total Expenses

You have to calculate the total expenses if you are indeed going to be making a profit. Aside from calculating how much money you have, your loan amount, and the expenses that come with closing the contract, you need to prepare for other eventualities. Will the property need renovation and how much are the estimated costs? Also keep in mind the operation costs of maintaining the property. Do you have enough to tide you over while your units have no tenants? Finally, make an estimate of the price you will eventually sell your property for, minus the possible expenses that this will entail. These are all the details you need to consider before signing a contract. 

Consider Your Overall Financial Standing 

Before plunging into another big debt for your investment property, compare it with your other financial obligations. Do you still have student loans and medical bills? Those monthly payments can pile up, so it is better to study your whole financial standing before taking a big risk. Do all your calculations, factoring in these details along with your daily expenses, to see if you can actually afford the investment property. You need to be in the safe zone, otherwise, you’ll be stressing on how to find the money for the monthly payments for your investment. 

Like every other business, investing in real estate has the potential to bring you up or down. It has the capacity to bring you large profits, but it can also turn into a disastrous experience leaving your bank account in shambles. The important thing to remember is to take a calculated risk and to play it safe. If you do your research and plan well from the very start, you increase your chances of coming out on the winning side. 

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