While you’re probably well versed in the day-to-day areas in which you can save money, you may not be thinking about ways to save as you develop your investment portfolio. Jason Hartman, who began investing at a young age and established wealth early in life, knows that, in the early stages, every penny counts. If you’re wondering how to make your dollars last a bit longer as you enter the investment world, read on.
First, consider opportunities already at your disposal. If you’re currently renting a home that you like and are happy in, make an offer to buy. Chances are, (if your landlord is looking to sell), he or she will give you a better deal. Plus, you’re already familiar with the ins and outs of the property. With HUD approved properties, occupancy for at least a year will allow for a smaller down payment. When you’re ready, find another house to rent or buy (depending on your goals) and rent out this property. Hypothetically, you could do this until your investment portfolio was complete, assuming you don’t mind consistent relocation.
You could also consider getting a real estate license to help you on your way. This way, all possible commissions go to you instead of a pricey agent. Extra fees make up a lot of the costs associated with buying a house. If you’re looking to invest in multiple properties, this option will be well worth your time and money (which ranges by state but is usually around $2,000 with classes and licensing fees). Additionally, serving as your own real estate agent allows for maximum flexibility as you develop your investment portfolio.
Finally, consider asking the seller to pay or help with closing costs on the property that you are buying as a condition of the sale. This is particularly effective when the seller has refused to budge on price—often, this means they’ll be willing to negotiate elsewhere. If you’re feeling hesitant, it is important to note that the worst that can happen is the seller says no and you begin negotiations again.
Remember, making money on investments takes time. Of course, there are things you can do to increase the value more quickly (repairing things promptly, adding features popular with your target audience, etc) But, with a little patience and a lot of hard work, you’ll soon see your careful planning and penny-pinching paying off. (http://www.flickr.com/photos/respres/2539334956/)
The Young Wealth Team