Put Your Money to Work for You
Put your money to work
What does that mean? First of all we have a relationship with money. Its a relationship because we have certain feelings about it, we expect it do to things for us, we protect it, we use it, we spend most of our time collecting it and thinking about it. Money flows into our lives and it flows out of our lives, like water or energy.
We work for money in order to trade it for other things but heres the catch, if you don't trade it for things and keep it in the bank you will actually lose a little over time.
So is saving money bad? It depends where…in a traditional bank account the answer is yes. The interest you are paid in a traditional bank account is laughable all the while the market in the world is moving up or down, and your money is just sitting there. So if the outside world goes through inflation or things rise over time and your money stays the same in a bank you will need more of it to buy the same things you could have bought today…do you understand?
Now that we are all on the same page about putting the money we make to work to make more money for us, aka investing lets look at investing in real estate from a buyers perspective and then a sellers perspective.
For buyers
Investing in real estate is a big big purchase, especially in a place like San Francisco, California where the land is so valuable, competition is fierce, and foreign investment is at a high. Getting out of the renting game is crucial for your financial future, buying aka investing in a place to live is where its at. But dont take my word for it, as the richest people you know, watch youtube interviews, and you will see. The fastest way to grow generational wealth is through real estate.
Here are a few reasons why putting your money to work in the market quickly is the right move
1.The sooner you put your money into a real estate asset the sooner your money is in the market. It is known that the value of real estate goes up over time. How much time will vary depending on location, condition, upgrades, type of property.
2. Equity. The more you pay your mortgage every month, the more of the house you own and the less you owe. The more you own, the more equity you have in your house. So when it grows in value you have made money.
3. Appreciation. When your property grows in value that is called appreciation. That is the gold everyone is after.
4. Diversify your portfolio. Invest in things that will make you money, not just clothes.
For sellers
You want to get a deal done now as apost to waiting for a “good deal”
This is a common issue with sellers, they have their mind set on a price they want to get for their home and sometimes they do not listen to reason aka their realtor, market statistics, comparable sales, the news…So while sellers are rejecting offers that come in waiting for the price they have in their head they are actually losing way more than they thing.
Because…
The longer you wait the longer you are paying for the property (principle, interest, taxes, insurance…)
The longer you are waiting to cash out the longer your money will not be put into another investment that can make you money.
Money is made to be fluid, to move around with the market. Once you have decided to get out of your real estate investment the best thing you can do is make a deal quickly, Stop paying for the property, cash out, look forward to the next investment.
The longer a property sits on the market the offers will get less and less. The best offer is usually the first. I know this from my 10 years experience as a realtor. It’s true 99% of the time.
I hope you found this informative and useful.