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How to Align Your Real Estate Goals with Your Financial Plan

My Financial Coach > Know-More Blog > How to Align Your Real Estate Goals with Your Financial Plan

We’re excited to welcome back Sam Willis (a seasoned writer in the real estate industry) as a guest contributor to My Financial Coach. In this article, Sam will delve into aligning your real estate goals with your financial plan, avoiding risky gambles, his thoughts on fixer-uppers, balancing risks and more.



How to Align Your Real Estate Goals with Your Financial Plan

If high stakes scare you, real estate might feel like too much, but proper planning and financial intelligence can reduce the risk. 

These are the best tips to help align your real estate goals with your financial plan and what mistakes to avoid. 

1. How To Avoid A Steep Gamble

Real estate can quickly hurt your wallet if you’re not careful. Redfin found that in March of 2023, investors lost money on 4% of the properties they sold. When you’re getting ready to select which property to invest in, it’s a good idea to stop and talk to a professional.

High-risk choices can be great for some people, but that gamble is terrifying for most. Start with safer investments, and never invest more than you can afford to lose. 


2. The Three Goals of Real Estate

Much like any other form of investing, real estate has a specific list of goals that can decide whether or not you reach your intended plans. These include buying, selling, and investing. 

Buying means finding a good property or investment you can rely on. The goal here is usually to find a property at a low price or with enough potential to grow so that you can make a large profit. This gives you the foundation for your return.

Selling is how the money comes back to you. In most cases, this is after a couple of years or after large market changes. You always want to sell at a large profit.

Investing doesn’t necessarily mean you’re purchasing a property, but it can mean that you’re putting capital into it instead. This might mean helping someone else get buying power or investing in the renovation of a property so you can get a payout after it’s completed.

3. Are Fixer Uppers Worth It?

Fixer-uppers aren’t as common as they seem to be. Only 1% of all real estate listings in the United States are classified as fixer-uppers, and most of these are in states like Mississippi and Maine.

Fixer-uppers are completely worth it when you can find them. Residential property buyers have become extremely wary of house flippers and quick resales because of shoddy quality. If you can fix a home so that it’s comfortable and attractive, you’ll be able to win over buyers in no time.

4. Do People Get Great ROIs?

When property prices start breaking seven figures, return on investments can be life changing.

Looking at low-cost properties that have potential, buying in an area that’s about to see an economic boom, investing long-term in a property, and buying a site and building on it are all great ways to get a high return.

Many also rent out properties for a period of time before selling them so they can get the most for their money. This is a perfect option if the economy works against your favor for a little while. Instead of rushing to sell, you can hold the property and make a prophet until it’s ready.

5. How to Secure Your Financial Assets

You can invest the funds you have immediately available, but most people’s wealth isn’t liquid. Getting a loan or signing on to invest with a group will let your dollar stretch further.

Securing your financial assets isn’t just about protection; it’s a commitment to your peace of mind and the legacy you leave behind. Strengthening your wealth not only helps you face life’s uncertainties with resilience but also establishes a secure foundation for your future and your loved ones.” John Skabelund, Asset Protection Attorney

There are countless scams out there that will attempt to tell you they’re the best choice, and many people fall for them. It’s no reflection on your intelligence; these are scammers who have been trained to get the money out of you at any length. Working with a financial professional will protect you.

6. You Don’t Have to Purchase Alone

Many who are new to investing think the only way to go about this is the classic route. This means buying land, letting its value increase, and then selling, but there are more choices out there. Instead of taking on all of that risk alone, you can invest in a group instead. 

Committing with others spreads the financial risk out a little more, protecting you while still offering the chance to make some major money back.

7. Is All of the Risk Worth It?

How much money you want to make and how quickly you want to make it may be balanced out with real estate investing along with your portfolio. It can take a bit to get started, but when you do, you’ll leave yourself open to a return in funding. 

Don’t Fear Real Estate Financial Success

The best way to make your goals come true is to stop and plan as thoroughly as possible and then take real action. Follow through with these tips, and visit My Financial Coach to pull your dreams into reality!


Author Bio: Sam Willis is a contributor to Innovative Building Materials. He is a blogger and content writer for the real estate industry. Sam is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that increase property value, maximize energy savings, and turn houses into homes. 

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