Use Your Tax Refund to Start Your Real Estate Journey
Updated: Jan 3, 2020
People are always asking me “Don, how can I get started in the real estate game?”. But they’re never satisfied with the REAL answer. However, those who are serious about property investing should be very excited because it’s officially the new year and tax season is right around the corner and your tax refund check can pay for you to begin your journey as a property investor.
If you want to enter the real estate game and actually make money, you can’t shortcut the process. It’s important to understand that no matter how many books you read you aren’t going to learn everything overnight, and once you fully dive into your journey of flipping homes there will be trials and errors, but don’t be discouraged, real-life experience is the best teacher of them all.
The first two steps of this journey can either make, break, or delay your success in realty. These two steps are simple yet tedious.
You must first educate yourself while simultaneously making sure your credit can secure you a mortgage.
When I say educate yourself I don’t simply mean for you to read an article or two and think that you’re ready to start buying real estate – and if you do decide to go that route I can guarantee you’re going to lose money somewhere in the process.
Educate yourself on all thing’s real estate. Learn about your different mortgage options, real estate lingo, rehab cost, demographics, credit requirements and everything else that comes with flipping a property. Throughout your research please remember that you won’t learn everything online. I personally recommend finding a mentor or someone with a great amount of experience that can show you the ins and outs of real estate.
While you’re educating yourself, you should also be working on your credit. I don’t have to stress how important credit is when it comes to buying a property.
Your credit score helps lenders see your ability to repay your debts on time, this determines the interest rate and other costs you pay on a mortgage loan.
Just like knowledge, good credit doesn’t come overnight, especially if you’re repairing it. Tax season is right around the corner but please listen to me when I tell you DO NOT use your tax refund to just pay off all of your debt, without a plan – there is no guarantee that will raise your credit score and in some cases, it does more harm than good.
To save time and money, you should consider investing some of your tax refund into credit repair services. Let a professional guide you to the “700 club”, credit repair can be a walk in the park when you’re dealing with someone who knows the game. You’ll know exactly where you need your credit score to be based on the type of mortgage you’re looking to receive.
Starting your journey into real estate can change your life, and your family’s lives forever, and these two simple steps can get you started on your journey today, so don’t waste any more time today!