Looking to invest in Johnson City real estate? Check out these 5 suggestions for what you should consider doing first before making an investment:
1. Create an Emergency Fund
Your emergency fund is a pool of savings you set aside to pay for emergencies. It’s self insurance for things you can’t insure.
Whether it’s a major car repair, unexpected medical bill, or the loss of a job, having an emergency fund might help bridge the the financial gap. Rather than turning to high interest credit cards for financing, you can turn to your emergency fund.
Experts recommend you save six to 12 months of expenses in your emergency fund, with 6 months being the bare minimum. Whether you’ve a tenuous job situation, you may want twelve months of savings. In case you’ve an older car or know there’s a major appliance within your house that might need to be replaced, make this fund bigger till the risk is mitigated.
2. Get Your High Interest Debt Paid Off
Next, or simultaneously with the emergency fund, pay off all high interest debt. If you’re paying interest on credit card debt, you should be investing in yourself and paying down your debt as soon as possible before investing.
Every dollar you put towards your debt offers a guaranteed return. The less affordable the debt, the better the return! Not only is the return great, it’s risk-free!
3. Use Employer Benefits
If you’re working for a company and the company offers a retirement package, ensure you take full benefit of any financial benefits they offer. Many employers that offer 401(k) plans will offer an employer match to your contributions. Ensure you contribute just just just as much as you may to take benefit of the free money. It’s an instant doubling of your investment!
4. Make a Financial Plan
You need to build a financial plan for the future. This plan will assist you in understanding where the Johnson City real estate investments fit in your broader financial picture.
What’s your 20-year goal? What’re some financial milestones, perhaps every five years?Where does the real estate investment fit in that overall investment portfolio?
By understanding your plan and what your returns need to be on certain investments, you could make smarter decisions with regards to the investments you consider. Do you need cash flow or are you looking for equity appreciation? Are you looking to generate a return with a flip or hold for the longer term? These are all questions which are best answered with a plan at hand.
5. Make Yourself Aware of Investment Scams
Lastly, study the common real estate investment scams and scandals of the last twenty or 30 years. Be aware of what happened, how they might be avoided, how they might be mitigated, and how you can spot them as they happen.
All of these things will help you prepare for a successful investment environment when looking for Johnson City real estate!