How You Can Prepare Your Personal Finances so You Can Invest in Real Estate

Welcome back to our series – Why you should invest in real estate, where Kris and I talk to you about how you can invest in real estate.

This video is about how you can get your personal finances ready to invest. And we have a long version and a short version depending on how much bandwidth you have for listening to us talk finance!

Here is the long version:

Personal financial life

  • Creating your ideal life
  • Income Strategy
    • How much money do you make?
    • Create a budget – understand your fixed expenses
  • Tax Strategy
    • Accountant
    • Understand your tax options
  • Insurance Hedging
  • Investment Strategy
  • Estate Planning
    • Retirement accounts

Savings

  • Saving money gives you flexibility
  • Saving for retirement
  • Saving first
    • Add to budget
    • Create goals – are you maxing your 401k contribution?
  • Emergency reserve
    • Cash savings
    • Goal for amount of reserve
      • 3-12 months?
    • Your personal emergency reserve is separate from your investment property’s emergency reserve
      • Emergency reserve for property – 3 months of carry + $5000

Student Loans

  • Student loans the next bubble?
  • Student loans affect your purchasing power
  • Paying yourself vs. paying student loans
    • Invest vs. pay down debt – personal choice

The Importance of a diversified portfolio

  • Reduce risk and volatility in your investment portfolio

 

And here is the short version:

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