It’s a new year AND a new decade. For many, that means dealing with an overcrowded gym, struggling through “dry January” or having meat sweats from attempting Keto. Personally, I’ve used the start of new decade to evaluate not only where I want to be next year, but also in another 10 years. I decided that I want to focus my 2020’s on building long-term wealth, which means making choices to enable me to grow my personal real estate portfolio. After I announced this resolution at a New Year’s Eve dinner party, several friends called me asking how to make similar goals, so they too can experience great real estate in 2020. Here’s a brief guide I developed and shared with my closest friends who share my real estate vision for 2020.
My first recommendation to friends and clients is to complete an honest review of your financial situation. Begin with a close look at your monthly income and spending habits. If you’re a first-time homebuyer, evaluate your discretionary expenses and cut back on items like ride-sharing services, delivery services and maybe weeknight outings. Down payments can be as low as 3.5% and you’ll be surprised how quickly these “small” savings add up to get you where you need to be financially.
Don’t forget that with the purchase of a property you’ll have the benefit of enjoying financial perks like an increase in your net worth, building of equity, predictable monthly payment and tax benefits in the form of mortgage interest and property tax deductions. Of course, seek counsel with a tax accountant who can advise you on these benefits.Keto, personal wealth, wealth management, New Year’s Eve, 2020, homebuyer, homeowner, Brooke Lowry, Atlantic Coast Mortgage
For sellers, start by visiting our website bediz.smarthomeprice.com to obtain a price check on your current property. Even when selling, I often recommend minimizing expenses to provide you with cash flow to prep your house for the market. These little updates can help maximize your returns. If you’re unsure how to use those savings to ready your house, we can give you personalized value-add recommendations to make sure you get the biggest bang for your buck.
Next, I highly recommend meeting with a local lender. We live in a unique market that often moves quickly. A local lender understands this and will provide personalized customer service, the best rates and close your deal on time. A great local lender is Brooke Lowry with Atlantic Coast Mortgage (NMLS ID #1061722, cell: 202-803-6733). As an added benefit to working with someone local like Brooke, is their knowledge of local programs for first-time homebuyers. These programs can help make homeownership more affordable and can vary between each jurisdiction, so it’s important to talk with a local lender who is well versed in the area where you’re planning to purchase a home. To those seasoned owners looking to buy a new home or purchase an investment property, a local lender can help you understand how much you can afford and what loan products exist to help you take your next real estate steps.
Arguably one of the hardest parts of the process is hiring a Realtor. I recommend finding an agent whose work style aligns with yours and is experienced, agile and adept at navigating our complex regional market. For me, my career experience consulting on commercial real estate transactions ensures my clients get the best possible deal. I also have first-hand experience with investment and rental properties, so I am able to provide a detailed analysis of potential income for those who are looking to grow their real estate portfolio and do short-term rentals, such as Airbnb. From first-time homebuyers to seasoned investors, I’ve helped buyers purchase properties all throughout D.C.
If you have any questions about these recommendations or are ready to make some 2020 real estate moves, give me a call at 202-441-0086.
P. Tyler Smith is a Realtor with the Bediz Group, LLC, a top-producing team of agents at Keller Williams Capital Properties. Reach Tyler at 202-441-0086 or firstname.lastname@example.org. Be sure to also follow @tylersmithsellsdc and @bedizgroup on Instagram.