Real Cases of Perfect Budgeting
Do you want to make a fortune in real estate investing?If you do, then perfect budgeting is one way to ensure that you get the most out of your earnings and maximize the true potential of your investment.
As a real estate investor for many years, I've learned from my own experiences as well as from others that there are just some things that the books don't teach.
I'd like to share with you some budgeting lessons that I've learned as an investor, so as to help you learn how to budget your personal and business expenses, and let your investments flourish for many years.
One way to successfully make a profit in real estate is through house flipping.
This involves buying a house, fixing it, and then selling it later for a profit.
Budget plays a very important role in house-flipping as it determines how much money you can make.
Without a budget, you can either end up with zero profits or worse, lose money.
Experience has taught me one valuable lesson in flipping a house.
In order to make a profit, you must set for yourself a yield or return.
After evaluating a property for its marketability, you must determine a yield that you'd like to get from it.
If you want to gain 10% out of your cash investment, for example, then you must include this 10% margin together with the renovation and marketing expenses you will be making.
The 10% net profit that you'd like to have must be part of the budget in order to yield a positive investment return.
In fixing up a property for flipping, you can save a lot of money by buying materials in bulk.
I have come up with a uniform color scheme to design both interiors and exteriors of houses.
You can really save a lot of money by purchasing paint, carpeting and tiles ahead of time.
Moreover, materials that are durable and cheaper to maintain are definitely worth it over those that easily break.
For example, using Formica on kitchen cabinets has served me well as these things bring about less expensive maintenance through the years.
Investors spend a lot of money when structural repairs like roof installations, termite damage repairs, wiring replacements and plumbing are necessary.
You must bear in mind that the costs of these repairs can rarely be earned back unless the property is sold.
Thus, if you plan to rent out a property, it would be wise to not spend too much money on fixtures that cannot be seen.
Try to buy a house, as well, that doesn't require major structural improvements most especially if you have limited financial resources.
Perfect budgeting is very important for a positive cash flow.
High expenditures and unnecessary expenses can wipe you out of cash.
Make a detailed outline of the expenses that you need to make and set a financial goal that you'd like to achieve.
Consider this goal when you're making any decision and stick to your plans.
Side trips along the way can cause you a negative cash flow and losses that you surely wouldn't want to experience.
Perfect budgeting is one key to the success of a real estate investor and is very important on the road to financial freedom.
As a real estate investor for many years, I've learned from my own experiences as well as from others that there are just some things that the books don't teach.
I'd like to share with you some budgeting lessons that I've learned as an investor, so as to help you learn how to budget your personal and business expenses, and let your investments flourish for many years.
One way to successfully make a profit in real estate is through house flipping.
This involves buying a house, fixing it, and then selling it later for a profit.
Budget plays a very important role in house-flipping as it determines how much money you can make.
Without a budget, you can either end up with zero profits or worse, lose money.
Experience has taught me one valuable lesson in flipping a house.
In order to make a profit, you must set for yourself a yield or return.
After evaluating a property for its marketability, you must determine a yield that you'd like to get from it.
If you want to gain 10% out of your cash investment, for example, then you must include this 10% margin together with the renovation and marketing expenses you will be making.
The 10% net profit that you'd like to have must be part of the budget in order to yield a positive investment return.
In fixing up a property for flipping, you can save a lot of money by buying materials in bulk.
I have come up with a uniform color scheme to design both interiors and exteriors of houses.
You can really save a lot of money by purchasing paint, carpeting and tiles ahead of time.
Moreover, materials that are durable and cheaper to maintain are definitely worth it over those that easily break.
For example, using Formica on kitchen cabinets has served me well as these things bring about less expensive maintenance through the years.
Investors spend a lot of money when structural repairs like roof installations, termite damage repairs, wiring replacements and plumbing are necessary.
You must bear in mind that the costs of these repairs can rarely be earned back unless the property is sold.
Thus, if you plan to rent out a property, it would be wise to not spend too much money on fixtures that cannot be seen.
Try to buy a house, as well, that doesn't require major structural improvements most especially if you have limited financial resources.
Perfect budgeting is very important for a positive cash flow.
High expenditures and unnecessary expenses can wipe you out of cash.
Make a detailed outline of the expenses that you need to make and set a financial goal that you'd like to achieve.
Consider this goal when you're making any decision and stick to your plans.
Side trips along the way can cause you a negative cash flow and losses that you surely wouldn't want to experience.
Perfect budgeting is one key to the success of a real estate investor and is very important on the road to financial freedom.
