The Ladder of Investment
Making an investment of any kind doesn't just mean handing over an
extra set of hundred dollar bills. With every large investment,
there are specific rules and processes that are defined in order to
ensure that your money will be going to the right place. If you are
investing in real estate, you will want to know what initial
investments will be.
If you have found a home and are beginning a process for buying the
home, you will begin to make some initial investments soon after the
first contract is signed. Most real estate investments will require
a down payment, which includes a set amount of money towards the
person that is selling the home. This will then be put on your
credit towards the investment that you are making. If you have extra
money set aside, you will want to put it in the down payment, as
this will make a difference in your investment later on and can help
with final approvals for the loan that you are receiving.
Another set of investments that you will be making is for any extra
costs from the team that you have built. For example, a home
inspection will generally cost a small amount of money. There may
also be extra fees associated with the lenders paperwork and other
things that are related to things such as the contract. Every person
that is working with you will receive a commission or part of the
investment that you are making in the beginning.
Before you begin house hunting, make sure that you know about the
preliminary investments and how it will involve your bank account.
Setting aside a specific amount of money for your first home, or
knowing how much to include in a down payment after buying a second
home will help you to make the right investments from the beginning.
You will want to make sure that you walk into your dream home with
enough money to get you completely in the door.
ABOUT THE AUTHOR
Bob Schwartz, is a Certified Residential
Specialist, CA licensed real estate broker with
has over 27 years of residential real estate experience, authored a
number of published articles and served as an expert witness for
San Diego lawyers. You can contact
Bob via e-mail at firstname.lastname@example.org or visit his highly popular
San Diego real estate website at:
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