Page 33 - EQ Mag-2019

FIRST-TIME HOMEBUYERS RESOURCES (cont d)

to make money. It took a few years to remodel my
home. Little by little my projects came to life because I
wanted to continue saving money and think about how
I could reinvest the equity to buy another home.

The key to investing and buying real estate is not
buying the perfect home. I usually buy the diamond in
the rough, which means the ugly home in the
neighborhood
FIRST TIME that has

potential. I
look for the
HOMEBUYER and the layout
opportunity
of the home. If
the floor plan, I still own my first home. The home gained alot
TURNED INVESTOR structure, and of equity, and I was able to pay down the debt
foundation are
of the home. I now rent out my home and have
reliable, then I
look at what a line of credit that I use for investment
purposes. From this home, I was able to buy
By: Vanessa Montanez are the turnkey units and my move up home. Owning real
homes selling estate is a wise investment for most of us. It is
for in the area.
a tangible investment you can see, touch, and
Most buyers feel. The key is to buy low, a fixer that has
or most of us, buying a home will be one of the Using equity wisely is not an easy task because one has want to live in potential, and buy with a long term strategy that
most significant investments ever made. Why, to be smart with how to reinvestment that equity to a nice Vanessa Montanez makes sense for you.
Fbecause we are using a large amount of money build one’s wealth. neighborhood that has excellent schools, low crime
to purchase a home. Why not use our rates, walkable with amenities in the area or relatively
investment to make money while we I started with my first starter home, and close. If you are looking at a home that is priced the
are living in the home. Most homes “Equity is the it was a diamond in the rough. The lowest ask yourself why? What is wrong with the
appreciate over time building equity. difference house was bank owned called an REO home? Can you overcome its challenges? As an
“Equity is the difference between the between the (Real Estate Owned) in 1999. The sale investor looking to make money understand no home
market value of your home and the price of the home was $222,500. At is perfect and expect the unexpected when investing in
amount you owe the lender who holds market value of the time the home was a bargain a home. Most homes have issues that are not visible
the mortgage.” (Weintraub) because of the area. The house was in to the naked eye. It is a wise choice to get a home
your home and the a prime location. It was a four bedroom inspection once the offer is accepted as soon as

Let’s use an example. amount you owe and two bathroom home with 1800 possible. “The home inspector describes the condition Buying a home will be one of the most significant
Sales Price of the home was $350,000 square feet of living space. The lot size of the home at the time of the inspection but does not investments ever made. If you are not afraid of work,
bought in 2015. The value of the the lender who was average in the area of 7,500, with a guarantee future condition, efficiency, or life construction projects, and getting your hands dirty
home today is worth $434,000 holds the detached garage. The house needed expectancy of systems or components.” (“Home than real estate investments might be for you.
appreciating about 6% per year. The repairs. The bathrooms were Inspection”) A home inspector determines the
home essentially gained 84,000 mortgage.” remodeled in the 1970s. The kitchen condition of the home while an appraiser determines
dollars of equity or appreciation just was outdated with linoleum flooring, the value. They serve different functions.
sitting idle. particle board kitchen cabinets. Do not get me wrong
the house was habitable but not appealing to most The million dollar question is what are you going to do
What happens if you decide to sell the house? You can buyers. Hence, it was a good buy. Make no mistake with the money if you sell the property? I say it
use the equity to move up into a larger home or buying a home is the largest investment one will ever depends on you. I look at every home as an
reinvest your money to purchase more homes. make but use common sense and a long term strategy investment to make money and use for my retirement.

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