Don’t Sell That House!
I know, Realtors are all about selling houses. And here’s an agent saying, “Don’t sell your home when you move.” How can that be? Aren’t all Realtors about listing and selling homes? Sure, I think we are. But if you are intent on creating a wealth strategy, the home owner real estate investor route is a great idea to consider.
And first step is, don’t sell your house!
Step 1: don’t sell your house!
Here’s the thing. Rather than sell your house when you make a move, consider making it into a rental and buying another place to live. In this strategy, every time you move, you can add another rental unit to your inventory. If you start owning homes in your late twenties or early thirties, it is reasonable that by the time you go to retire, the home wwner real estate investor strategy can have you in possession of four or more properties.
Step 2: Don’t Save 20% For Your Down Payment
I know, it must sound like I’m breaking all the rules in a single blog post. But, quite simply, the second step to success is don’t try to save a twenty percent down payment. Instead, find a mortgage lender early on and explain your desire – to keep your old home and purchase another. Just as FHA has mortgages for first time home buyers that only require a few percent down payment, many lenders can help you purchase your second or third (or you get the idea) or next house with say 5% down payment.
So, rather save up a small fortune – to meet the 20% down requirement associated with investment real estate, instead, race to a mere five percent and get qualified with a lender to purchase your new residence.
Current mortgage rules actually allow you to have the best rate possible and lowest down payment on a strategy like this up to four times.
Step 3: Move Often!
This is the part that can be tough. You might not want to move from a home with childhood memories or where the kids have all their friends. You might purchase another house in the same neighborhood as a work around. The positive here? You are close enough to manage your old property without jumping in the car.
Moving can be tough though. Making new friends (for the kids or yourself) is kind of scary. Changing homes all the time might sound like work. This is the tough part of the successful home owner real estate investor strategy. Just remember, good investment strategies require a little work.
The Successful Home Owner Real Estate Investor Strategy Starts By Not Selling!
And for those willing to move from one primary residence to another, this strategy can open the door to financial independence through investment. Although, technically, with each home you buy you are not really investing. Then again, each home you move out of does become an investment.
I hope you are smiling as you read that last bit. It isn’t meant to be confusing. Just poking fun at the simplicity of it all.
Employing this strategy several times can create a windfall for the future. It might even be possible to employ this scenario a dozen times, making a move every three to four years and really building a real estate empire to retire upon one day!