Step 1: Creating your Real Estate Plan

Are you considering investing in real estate and don’t know where to start? The internet has SO much information, and you don’t always know where to start, what information is accurate, or what advice is excellent! All of this can be overwhelming, and I wanted to share the most important steps when starting your investment journey.

I have been investing in real estate PROFESSIONALY for 6 years, but I have invariantly been investing since my 20s! I will explain that another day, but let’s focus on GOALS AND PLANS for now.

STEP ONE: CREATE YOUR FINANCIAL REPORT CARD

First up. KNOW YOUR WHY! I don’t mean, hey, I want to be a millionaire and take a vacation all year. NO. Your why is going to be the reason you deal with all the bullshit that comes along with real estate. Because there is A LOT OF BULLSHIT that comes with real estate.

Once you know your why, you must examine your financial situation thoroughly or prepare your ‘financial report card.’

Start by creating a financial statement that lists your monthly income and expenses. This will give you a snapshot of your monthly financial situation and an idea of whether you have the cash flow to invest.

Next, you will create a balance sheet. First, list your assets and your liabilities. For this, only list assets that are INCOME-producing. A car is not an asset in this scenario; a vehicle will be an EXPENSE. List your savings and investments, such as ROTH IRA, your business, and any equity you have in real estate. Then, list your liabilities. What takes money away from you? Credit card payments, car payments, mortgage payments, and so on.

This will give you a snapshot of your PERSONAL FINANCIAL STATEMENT.

This will allow you to see a snapshot of where your money is going, your net worth, and where your debt is concentrated. You may be rolling your eyes at this, I know. Who wants to do this stuff?? But the truth is we need to be taught financial literacy, and by doing this process, you are taking charge of your finances so you can grow, make good choices, and become financially independent.

It’s not about how much money you make but how you manage it that matters.

You can make a million dollars a year, but if you spend it all, what good does it do you when you are NOT making that money anymore?

That’s it. That is the most essential first step to investing!

Please message me if you have questions or need help with this process. I can send you a template or connect you with a professional if you don’t have the time to do this yourself.

As always, I am speaking from experience and am NOT a C.P.A. If you need help finding a C.P.A., Send me a message below, and I can help.

XO,

Steph