As referenced in my last post, I am now a DIY debt-free Real Estate investor. More Specifically, I am fixing up a Repossessed home to keep and eventruly convert into a rental property. This is yet another effort for me to find ways of capitalizing on passive income.
As I venture on this path, I am befuddled by the consumerist marketing mentality which is thrust upon me by the retail mecca and their home improvement stores. For example, the term, “This is my forever home“, or “this is your forever home“, is commonly used when trying to force me into paying extra for something. This is a trap! Another gotcha is the manufactured emotion that gets distributed around the term “Sale” price. Whenever someone tries to get you to buy something simply because it’s on sale, you need to stop. Stop what you are doing and do some math, crunch the numbers. Ask yourself, “is this really a good deal for me at this particular time?” Compare the sale price to what the market is offering. If at any point you are pressured, just say no. The main goal with any investment is to maximize the ROI (Return on Investment). If I spend too much on the investment, I need to charge extra so that I can earn that money back. In my situation, the more I charge someone for my rental property, the less competitive I am in the market. Keep your eye on the goal. I want to generate income from this property, not have the nicest looking home on the street.
Highest Regards, – Your Financial Rape whistle