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Last Updated on March 29, 2023 by Mark Ferguson

Rental properties are great way to invest your money, but qualifying for a loan on an investment property is not always easy. Loans for financing investment properties are much more difficult to get than a loan on an owner-occupied home, and it will cost you more money as well.

Many banks consider investor loans riskier than owner-occupied loans. The down payments are higher, the credit scores needed are higher, and the income requirements are greater for investor loans. This article will go over the different loans available on investment properties and how to qualify for them.

What is considered an investment property?

An investment property could be a rental property, a house flip, or a piece of vacant land. Banks are very specific regarding what they consider investment properties, and they base their loans on these classifications. Most banks lend on owner-occupied houses and investor-owned houses. Almost every bank has different loan options depending on what type of property you own.

Each bank can have a different definition, but for the most part, an owner-occupied home is a house that someone lives in for more than 6 months of the year. It is not a house that someone buys and stays in for a week on vacation. It is not a house that someone buys, leaving one room vacant in case they decide to crash there one night. One or more people on the Deed must live in the home more than half the time for at least one year (sometimes more). All other houses are considered investment properties, and the banks have much different loan programs for them than for owner occupants.

If you buy a house as an owner occupant with the intention of using it as an investment, it could be considered loan fraud. If you pretend to be an owner-occupant on a HUD home, it could even be a felony with potential prison time!

Owner-occupant loans

Owner occupants can typically qualify for FHA, VA, Conventional, USDA, or other loan options that have low down payments. The down payment for FHA can be as low as 3.5%. VA has a $0 down payment as does USDA. Conventional loans also have down payments as low as 3 percent for some buyers and 5 percent for most buyers. It is fairly easy for most buyers to qualify for an owner-occupied home if they have decent credit (over 620), make decent money, and have reasonable debts.

If you want to get into investment properties cheaper, one option is to buy as an owner occupant, live in the property 1 year (in most cases), and then rent the property out. You can also do this with a house flip, and if you live there for two years, the profit becomes tax-free in most cases!

Rental-property loans are much different. An investment loan requires at least 20 percent down in almost all cases, requires higher credit scores and better debt-to-income ratios, and there are limits to how many loans you can get with big banks. Most big banks will only let an investor have 4 loans in their name. Some smaller banks will allow an investor to have 10 loans in their name, but all the requirements get even stricter.

There are other options for investors that we will get into in this article, so do not lose hope if you don’t have the down payment, or have too many mortgages.

Why is it harder for an investor to get a loan?

Banks consider real estate investing riskier than normal home ownership. Banks figure that, if things go bad, someone will work harder to keep the house they live in than they will an investment property. The government also encourages homeownership with programs like FHA, USDA, VA, and local down payment assistance programs. Because the government helps with or runs these programs, the banks are more willing to offer low down payments to owner occupants.

How to qualify for loans for financing investment properties

When qualifying for a home mortgage, most banks look at multiple factors. One of the biggest issues investors run into is that they have to qualify for two houses if they have a loan on their personal residence. It is very important for people not to buy the most expensive house they can because of this. You must have a low debt-to-income ratio to qualify for a new loan, whether as an owner occupant or as an investor. If you max out your qualification on your personal home, it will be very difficult to qualify for a loan on an investment property.

Here is what banks look at on investor loans:

Debt-to-income ratios

You debt-to-income ratio is how much money you make each month compared to what your debt payments are each month. The percentages a bank will be okay with depends on the loan. Debt-to-income ratio does not take into account how much the balances are on your mortgages, only what the monthly payments are. Lower debt payments make it easier to qualify for a loan, and that is one reason I prefer a 30-year loan to a 15-year loan (30-year loans have lower monthly payments).

Time at a job

Most banks want to see a borrower at the same job for two years before they will give them a loan. If a borrower switches jobs but stays in the same field, banks will usually still lend, but you have to be careful when switching jobs. The bank will want to verify income to make sure you are working full time and actually have the job you say you have.

Credit score

Some loan programs allow credit scores under 600, but the lower your score, the more fees and costs you will pay. Almost all low-credit-score loan programs are for owner occupants. Investors usually need a credit score over 680 and sometimes over 720 if they are trying to get multiple mortgages in their names. You will get the best rates and terms the higher your credit score is.

Tax returns

Banks will verify your income with tax returns. If you claim very little income, it can be hard to get a loan. Many people who are self employed or who own businesses have a hard time qualifying for loans because they write off so many expenses. If you have little income, your debt-to-income ratio may be too high for you to qualify for a loan. One option is to claim fewer expenses and show a higher income on your taxes.

Foreclosures/short sales/bankruptcies

Banks do not like to lend to people who defaulted on past debts. If you had a foreclosure, it does not mean you can never get a loan again, but it makes it much tougher. Many banks will want to see a solid credit history up to 7 years after a foreclosure before they will lend to a buyer again. Other banks have shorter time frames. Short sales and bankruptcies also affect your ability to get a loan but usually have a shorter time frame than foreclosures.

What are the costs for an investment loan?

It is important to know that, when you get a loan on investment property, you need more than just the down payment. You need money for closing costs, loan costs, and reserves.

Closing costs

The closing costs on a loan consist of the origination fee, appraisal, recording fees, doc fees, and closing company fees. These costs can be up to or more than 3 percent of the loan amount. It is possible to ask the seller to pay these closing costs for you when buying a house, but it makes your offer weaker than one that is not asking the seller to pay closing costs.

Reserves

Lenders do not want an investor spending every penny they have on a house. They want to see some money left over to handle carrying costs or other issues that may come up. You need to have reserves left over after paying the closing costs and the down payment. Most banks require an investor to have at least 6 months of reserves. Reserves usually include the cost of any mortgages you have, including the property you are buying.

Interest rate

Interest rates on investor loans can also be higher than on owner-occupied loans. If the going rate on an owner-occupied 30-year loan is 5%, an investor may pay 5.5% or 6% depending on the bank. They may even pay higher rates if they have shaky credit or other issues.

What are the alternatives to bank loans?

Up to this point, we have talked about how investors can get a loan from a bank. You must be in a good financial position to get a loan from a bank. Some people do not have that luxury. So what are their options if they want to invest in real estate? There are many ways to get financing other than from big banks:

Local banks/portfolio lenders

Big banks have very strict lending guidelines because almost all of them sell their loans to other investors. Those investors set the guidelines that the banks must adhere to. Some local banks do not sell their loans and can be much more flexible when lending to investors. They are often called portfolio loans or portfolio lenders. I have gotten almost all of the loans on my rental properties from local banks.

Some local banks will also lend on house flips. They have much lower rates than hard-money lenders but require more down payment. Usually, a bank will finance 75% of the purchase price on a flip, and some banks will also finance the repairs.

Hard money

Hard-money lenders specialize in financing house flips, but they can finance rentals as well. A hard-money lender will have much higher rates than banks and will charge more fees, but most investors will have a much easier time qualifying with them than a bank. Hard-money loans have short terms (usually one year) and cannot be used on owner-occupant properties.

Hard-money loans are typically used for house flips, but you also may be able to use a hard-money loan to buy a rental and then refinance it into a long-term bank loan. I have seen hard-money rates as low as 8% recently, which is much lower than they used to be. A hard-money lender will often lend up to 90% of the purchase price and 100% of the repairs. Some hard-money lenders will finance the entire deal, but they are much more expensive, with rates above 12%.

Private money

Many hard-money lenders call themselves private-money lenders, but I think of private-money lenders as individuals. They are people you know: a family member, friend, co-worker, or another investor. I use a lot of private money on my house flips and on my rentals. Private money is easy for me because I literally send a text message or email, and the lender lets me know that day if they have money or not. Getting private money is all about relationships. I get most of my private funds from other investors.

The rates and terms for private money can vary greatly! I have some loans at 6% and others at 12%. The rate I pay depends on the lender, the deal, the time I need the money, and other factors. I am able to borrow 100% of the purchase price with most of my hard-money lenders, and one lends me 100% of the purchase price and 100% of the repairs upfront!

National rental property lenders

In the last few years, national lenders who specialize in lending to real estate investors have popped up. They are not banks but rather funds or companies that specialize in investor loans only. They have higher rates than most banks but do not worry as much about debt-to-income ratios or credit scores. They are more concerned about the property being a good rental and making money.

I have seen rates on rental properties as low as 5% with some of the bigger lenders. I have even seen 30 year fixed rate loans being offered. I am in the process of refinancing one of my properties to a 30 year fixed rate loan with one of these lenders. They will usually lend from 70% to 80% of the purchase price or value.

I have a list of hard money and rental property lenders here.

What is the best type of loan for an investor?

There are pros and cons to each loan. There is no best option because everyone has different goals, levels of experience, cash available, and different types of deals. I use different loans on my properties as well. I use bank money, hard money, and private money depending on the situation. The video below goes over the exact costs of these loans on my house flips:

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This article goes into the details of financing house flips as well.

Rental property owners will usually want a different type of financing since they hold the property for longer than a flip.

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This article goes into the details on getting loans for rental properties.

What is the first thing to do?

If you want to be a real estate investor but do not know where to start, I have a simple answer for you:

Talk to a lender or bank.

Even if you think there is no way they will give you a loan, go talk to them. They can tell you if you can get a loan, how much you qualify for, and what the loan will cost you. The meeting is free, and there is no reason not to do it. If the lender says you cannot get a loan, they should be able to tell you exactly why and help you fix any problems. They do all of this for free as well. Even if you want to wholesale, use hard money, use private money, or aren’t ready to invest for years, talk to a bank!

How to lower your debt-to-income ratio

One of the most common problems people have when qualifying for an investment property is a high debt-to-income (DTI) ratio. Most lenders will want to see a DTI  ratio of 45 percent or lower. If your DTI ratio is higher than this, it will be very hard to qualify for a loan. I have investors emailing me all the time and asking how to get around high DTI ratios. Even my portfolio lender, who is very lenient with lending requirements, will not lend to people with high DTI ratios. However, some of the national rental property lenders and hard-money lenders mentioned prior do not care about DTI ratios.

DTI ratio is calculated by taking your monthly debt payments and dividing them by your gross income before taxes. If you have $2,000 of monthly debt and $5,000 of gross income, you would have a DTI ratio of 40 percent ($2,000/$5,000 = 40 percent). That is a very simple equation, but it is not always simple coming up with the monthly debt and income, especially if you own rental properties.

You must count the property mortgage payment against your DTI ratio. Even though your DTI ratio may be 35 percent right now, a new mortgage payment may push that number to 45 percent, and you may not qualify for the mortgage. The DTI ratio will generally be the deciding factor on how large of a loan you can qualify for. The most payments you can qualify for on a new mortgage would be the payment that pushes you to the maximum DTI ratio a lender will allow. If a lender will allow a 40 percent DTI ratio and a $1,000 house payment pushes you to 40 percent, that would be the highest payment you could qualify for.

It is your monthly income and monthly debt payments that the banks pay attention to, not total balances. If you have a $2,000 credit card balance, it may not seem that it would affect your ability to qualify for a loan. But if your payments are $200 a month, that would have a huge impact on how high of a mortgage you can get. A $200 dollar a month difference in mortgage payments can reduce the amount you qualify for by as much as $40,000!

What expenses and income are included in DTI ratios?

If you are applying for a loan, everyone who will be on the loan will have to include these figures in debt:

  • Minimum credit card payments
  • Auto loans
  • Student loans
  • Consumer loans
  • Other financial obligations including child support and alimony
  • Your current housing payments do not count if you are going to sell the house before you buy the new house. If you are keeping the house, you will have to count the payments as debt.
  • Your estimated future housing expense, which includes principal, interest, taxes, insurance, and any HOA fees.

To calculate your income, you use:

  • Your gross monthly salary before taxes, plus overtime and bonuses. Include any alimony or child support received that you choose to have considered for repayment of the loan.
  • Any additional income like rental property profits. This is tricky because some lenders will not count any rental income until it shows up on your taxes. Other lenders will count 75 percent of your rental income if you are an experienced investor or have the house leased.

Usually, it is a little tricky calculating the DTI ratio because different banks calculate things differently. It is best to let the lender you are using calculate the DTI for you. If the bank comes up with a DTI that seems very high, double-check how they calculated it to see if they are doing something strange or put a wrong number in somewhere. Some banks will count depreciation of investment properties against you, even though that depreciation is not a monthly expense.

Why do different banks use different debt-to-income ratios?

Different banks use different DTI ratios, and different loan programs use different DTI ratios. VA and FHA typically limit borrowers to a 52 percent DTI ratios but in some circumstances may increase that percentage slightly. Fannie Mae allows up to a 45 percent DTI ratio on some loans, but you must have great credit. With credit scores under 700, you typically would have to have your DTI ratio under 36 percent.

As you can see, this can all get very confusing trying to figure out yourself. Here is a link to the Fannie Mae lending matrix which is even more confusing. The best thing to do is to talk to a lender, and if your DTI ratio is high, work on lowering it.

How can you lower your debt-to-income ratio?

The easiest way to lower your DTI ratio is to make more money. The more gross income you make, the higher your DTI ratio will be, but that is not the only thing lenders look at. It is not easy to simply start making more money, but many investors and self-employed individuals or business owners claim very little income on their taxes. Claiming little income is great if you don’t want to pay much in taxes. If you want to qualify for a loan, claiming little income can make it nearly impossible to buy a house. You may think you are making $10,000 a month, but if your taxes show you making $2,000 a month, your DTI ratio could be much higher than you think. Claiming more income on your taxes will mean you have to pay the IRS more, but it may be worth it if it allows you to get a loan.

Reducing debt is another way to improve your debt-to-income ratio. DTI ratios take into consideration all monthly debts that show up on your credit report. Usually, the shortest debts hurt you the most because they have the highest payments. Even though you think you are doing the smart thing by getting a 15-year loan instead of a 30-year loan on your primary house, it actually will hurt your DTI ratios. A three-year loan on a car will make your DTI ratio higher than a six-year loan. I am not saying you should always get the longest term possible on debt, but the lower your minimum payments are, the lower your DTI ratio will be. You can always make extra payments if you want to pay off your loans quicker.

What else affects the DTI ratio?

  • Minimum credit card payments: credit cards typically have very high interest and very high monthly payments. If you can pay off credit cards, it will greatly improve your DTI ratio, but you must pay off the entire balance.
  • Auto loans: car loans can destroy a DTI ratio! A $600 car payment is equivalent to a $120,000 mortgage and will reduce your ability to qualify for a mortgage by $600 a month.
  • Student loans: student loans may have low interest and low payments, but they still hurt DTI ratios. I think it is usually better to pay off other debt first depending on what the rates are.
  • Consumer loans: do you have a loan for a TV, furniture, home equity line of credit, or any other monthly payments that show up on your credit? Even a home equity line of credit that you are not using can count against your DTI ratio.

If you don’t have the money to pay off your debt, you may be able to consolidate it with a larger loan against your home that would have a lower interest rate and monthly payment.

Refinancing investment properties

A fantastic strategy to make your money go further when investing in real estate is to refinance properties. A refinance is when you get a new loan on a property that you already own. A cash-out refinance is when you get a new loan a property you already own, and the new loan pays off all other debts plus gives you back money. If you owe $80,000 on a house but refinance the property with a $100,000 loan, you would get $20,000 in cash back minus any closing costs for the new loan.

The BRRRR strategy is a great way to buy rentals with less money because you get most, if not all, of your investment back after the refinance. It stands for:

  • Buy: you have to get an awesome deal (can use financing or cash).
  • Repair: most houses that are awesome deals need some work.
  • Rent: with most income properties the banks want a home rented out before they lend on it.
  • Refinance: get a new loan that pays off any old loans, pays off the repairs, and any down payments.

Conclusion

Financing is one of the most important aspects of investing in real estate. You can make more money with loans than by paying cash. You can also multiply your money quickly using refinances, and there are many options for investors, even when you have bad credit or low income. It can be confusing figuring out what the best option is, but talking to a bank or lender is the first step.

Build a Rental Property Empire

Categories Money

Source: investfourmore.com

Apache is functioning normally

A gym is a great perk of apartment living, adding to your quality of life in more than one way.  But your gym etiquette (or lack thereof) could make the wrong impression, turning off neighbors, potential friends and even management. Here are some tips so you make a good impression in your apartment community’s fitness center.

Dress appropriately

Workout clothes should be worn, not flip-flops or bathing suits. You never know who you’ll meet in your gym—a potential employer, a future date, or simply a new friend. It’s always beneficial to make a good impression, even when working out. Ripped or dirty clothes tell something about you, as does wearing something too revealing, provocative or downright offensive.

Leave Work Behind

You’ll want to be friendly at the gym, but the less you talk about work at the gym, the better. Most people go to the gym with one of two things in mind: getting a good workout, or decompressing from a stressful day. You certainly don’t want to be the one to wreck someone’s fitness regime or their chance at a little peace of mind.

Be Mindful of Conversation

If someone approaches you and starts a conversation, you may certainly oblige them. But if you’re short on time, do be honest and let them know. Tell them you’d love to talk more, and suggest another time. A nice, short friendly conversation is appropriate: just be sure to follow up.

The same goes if you don’t want to connect with a neighbor in the gym. Good etiquette includes being courteous and respectful. Perhaps you should bring your earbuds and music. It’s an easy signal that you want to work out without talking.

Great Gym Etiquette Guidelines

Follow these basic gym rules to avoid irritating anyone:

  •  return free weights where they belong
  • don’t hog the cardio machines
    (typically most machines have a 30 minute limit unless the room is empty)
  •  turn off lights, fans and TVs when not in use
  •  wipe off equipment after use

Besides boosting your health, an apartment community gym is a good place to meet your neighbors . . . so you’ll want to ensure you’re on your best behavior as you’re trying to get in your “best” shape. When you work on your manners and leave a good impression at the gym, it could pay off in more ways than just your physique.

Apache is functioning normally

Last Updated on March 29, 2023 by Mark Ferguson

Driving for dollars is a term that real estate investors use to describe a technique for finding great deals on houses. You drive around until you find a house that looks vacant or distressed and then attempt to buy that home from the owners. Driving around looking for houses is simple, but the process of buying the home can be very complicated. It is not easy to find the owners of a vacant house. If the house is bank-owned it is virtually impossible to buy it and many owners do not want to be bothered.

How does driving for dollars work?

There are a few ways to drive for dollars and I use a couple of techniques myself. The first is to target a specific neighborhood where you want to buy houses. I have targeted neighborhoods where I own rentals and that typically have great rent to value ratios. I do not like to buy the cheapest houses for my rentals, but the more expensive houses are, the less cash flow they usually have. My rentals tend to be valued just below the median sales price in my area.

I have also targeted neighborhoods for fix and flips. I drove down every street in a neighborhood where prices had risen significantly, but there were many older homes. I looked for homes that appeared vacant and not well maintained. Houses that are not maintained indicate the owner does not care about the house, is short on money, or has given up. One of the best ways to make money flipping is to add value by repairing a house.

I also keep my eyes open wherever I drive. I drive a lot as a real estate agent and real estate investor. I am always looking at houses, and while I am driving to those houses, I look for vacant houses or homes that need work. I also look out for FSBOs (For Sale by Owner) homes. Since I am a real estate agent, I can approach For Sale by Owner sellers and offer to list their home or buy it if the price is right.

Below you can see a video of me driving for dollars
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What do you do once you find a house that needs work?

Once I find a house that is a possible deal, I write down the address and research it more when I get back to the office. I look in public records to see who the owners are and if they are investors or owner-occupants. My strategy varies based on who the owners are.

Owner-occupants

If the people who own the house are living in it, I usually send them a letter saying I am buying homes in the area and would love to buy their house. To be honest, I could do much more than this, but I do not have time. If I were super serious about buying a house, I would walk up to the door and try to talk to the owners in person.

Investor owner

If the occupants are tenants, it will not do any good to talk to them. I want to talk to the owner, and if they are an investor, I have to find out where they live. Public records may give an address, but it may not be current. I send a letter to the owners again, but if I really want a house, I do my best to find their phone number and call them.

This company created an awesome app that helps you find and contact the owners of distressed houses.

What do you do when you find a vacant house?

When houses are vacant, there is a little more work involved in finding the owners. In some cases, it is not even worth pursuing the owners, unless you want to waste hours of time and become extremely frustrated!

If the house is vacant, I try to find an address through public records if the owner is still a person or a corporation. Finding owners of vacant houses is not easy to do. Many times, the only address available is the address for the vacant home. There are a couple of ways to find people when you do not have an address. You can search for them on Google and you might find some information on them. You can search for them on social media sites such as:

If you cannot find them on social media, you can try an online people search service or even hire a private investigator. I have been successful in finding many people using these techniques. When the foreclosure process was different in Colorado, we could redeem houses from the Public Trustee using Quit Claim Deeds from the owners of a house. We would find the owners, pay them for the Deed, and then redeem as the owners of the property after the foreclosure. The great thing about doing this was it usually wiped out all the liens and second mortgages once the home foreclosed. However, Colorado changed the laws a few years ago and this is no longer an option. The owner has to redeem the house prior to the foreclosure now.

What do you do if the house is bank-owned?

Many people ask how to contact a bank who owns a home that is not listed so they can buy it. The bad news is that in today’s market it is virtually impossible to buy a bank-owned home before it is listed. All the major banks have very strict procedures for selling houses, which includes using a real estate agent to list the homes on the MLS. The banks have to get the most money for the houses they can for their shareholders and investors. Many times, mortgage insurance is involved and the mortgage insurance company has to sign off on any sales as well. If a house sells without being listed on MLS, it is more likely to sell for much less than it is worth.

If you see a vacant bank-owned home, especially one owned by a big bank, you are wasting your time trying to buy it before it is listed. You can try to contact the bank, but here is how the process goes.

  • You call the bank and ask whom to talk to about foreclosures.
  • The bank tells you to call their corporate office and ask them who to talk to because they do not know.
  • The corporate office will send you to about 10 different extensions and no one has a clue what department to send you to.
  • After a few hours of calling people, you might make it to the right department. It might be the foreclosure department, the REO department, or something else. All banks have different names and do not encourage calls to these departments.
  • Once you are finally able to talk to someone who knows what you are asking, that person will tell you that you have to wait until the house is listed.

The only way it is possible to buy a home from a bank before it is listed is with a local bank. In some rare cases, local banks may sell properties to investors before they are listed.

What if the owner of the home owes more than it is worth?

You may find a homeowner who wants to sell but they owe too much to make the sale worth it. It is possible to do a short sale, but you must be very careful! Short sale fraud is the most investigated crime by the FBI right now and you do not want to be investigated by the FBI. I actually tried to get an interview with the FBI regarding short sale fraud last year but was unable to get one set up. The tough part about short sale fraud is there are no clear guidelines. Here are some things to avoid if possible, which make it tough to buy off-market properties as short sales. Short sale fraud is anything that defrauds the bank of money through deceitful tactics.

  • Almost all banks require short sales to be listed on MLS in order for them to get the best offer. If a home is not listed in the MLS and the bank is told that it is, that could be short sale fraud. If the home is listed in MLS, then immediately listed as under contract and other buyers are not allowed to make offers, that could be short sale fraud as well.
  • Most banks will not allow related parties or friends to sell a short sale to each other. If you buy a short sale from your brother or friend without disclosing to the bank, it could be short sale fraud.
  • Anything that goes against what the bank specifically says must happen in writing could be considered short sale fraud if the bank is not notified.

I see short sales sold all the time that could be considered fraud that the sellers and buyers most likely get away with. However, you should be very careful when doing a short sale deal that is not listed on the MLS. I buy short sales all the time, but I do not buy short sales where I find the buyer myself. The short sales I buy are always listed on MLS with another real estate agent.

Conclusion

Driving for dollars can be a great way to find deals, but it can take a lot of time and effort before you actually find a deal. I used to spend much more time going after sellers of houses that were not listed, but in the end, the time it took versus the results discouraged me. To be successful at finding off-market deals you have to dedicate a lot of time and know that for every 50 houses you find, one might be willing to sell at a price that makes sense.

Build a Rental Property Empire

Categories Real Estate

Source: investfourmore.com

Apache is functioning normally

There are a number of preconceived notions about life in the south. Not everyone in Texas wears cowboy boots and hats and rides a horse. Not does everyone in the South have a gun and a truck.  There are some surprises, however: parts of the south get snow and you’ll find skiers and hockey fans. Not what you thought?  So what can you expect if you’re moving to the south?

It’s hotter in summer

The heat and humidity will be out in full force during the summer months. But southerners have a plan for that. Most homes and businesses have central AC. This will allow you some relief from what may feel – at first – like sweltering heat. Many apartment complexes will also have a pool as one of the amenities. Some will even offer covered parking.  The flip side, of course, is that you’ll rarely suffer in winter, and you’ll have four mostly-mild seasons.

Related article: South tops the list of fastest-growing cities

Related article: Walking to work from your apartment

Are you ready for some football?

Whether you’re in Texas, Alabama, Georgia or another southern state, southerners love their college football. It really is a part of the culture. Life in the South during the autumn is full of football. Fierce but fun rivalries dominate conversations, clothing and even front yards and porches. When you hear your normally mild-mannered neighbor yelling at the TV, it’s probably football season.

Southern culture

Once you cross over the Mason-Dixon line, there is a cultural shift. People in the South are known for their hospitality. They’re known for their friendliness as well. This is not to say people from the North are unfriendly, or not nice. Northern culture is simply more reserved. Southerners will engage you in conversation at the grocery store, the mall, or any public place. Your neighbors will be interested in getting to know you. Common outdoor spaces will make this a natural occurrence.

The food

Cornbread, southern fried steak, barbecue and collard greens are all part of Southern cuisine. Expect dishes to be spicier than northern cuisine, too. Southern food is influenced by Spanish and African flavor profiles. So, when you’re checking out that hot new restaurant in town, you might want a glass of milk with your meal, to help you handle the heat.

Iced tea will likely be sweet (heavy on the sugar) unless you order an “unsweet.” A meat-and-three is a restaurant which serves comfort-style entrees like meatloaf or fried chicken, with your choice of southern veggies (which might include apple sauce and mac-n-cheese, y’all). You’ll meet plenty of bourbon drinkers, but the craft beer craze has very much spread across the South.

Related article: Community gardens influence neighborhood choice

Hey Y’all

Southern dialects are distinctly different from those of the North. Keep in mind that the accents do vary depending on the region. Northern Alabama accents are different from Southern Alabama accents. Louisiana accents are very different from Georgia or Texas accents. Coastal Carolina has a distinctly different sound than mountain Carolina dialects. You’ll have fun learning the difference.

Public transportation

If you’re used to metros with lots of trains or rail service, you may be in for a bit of a shock when you move. Southerners rely heavily on their cars. Atlanta, Charlotte and Dallas have rail service for commuters, but do some research on neighborhoods before you sign a lease, if you’re hoping for public transport options. You may be looking at the city bus.

If you’re tired of the snow and bitter cold, by all means, consider moving to the South. The culture is friendly and the food is good. Get yourself a glass of sweet tea and meet your neighbors down by the pool.

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Have you ever gone looking for a home to buy in an up and coming market neighborhood and noticed a home hideous enough to rival the infamous Neibolt House from Stephen King’s classic, It? You blink in disbelief, half expecting Pennywise to lunge from an untrimmed hedge at any moment. Who would want to buy that fixer upper, you may wonder? Well, you’d be surprised!

Other homes may appear gorgeous, with their fancy manicured lawns, symmetrically placed light fixtures and intact windows. But what if you took a peek inside and saw potential in this ugly duckling? What if an architectural gem was hiding beneath the chipped paint, cracked floorboards, and giant portrait of Barry Manilow on the bathroom wall? The truth is that buying a fixer upper can help you save big time … if you know what to look for. Take a look below to find out how you’ll be laughing all the way to the bank when you turn your dowdy step-sister into the Cinderella of the street.

Don’t Judge the Cover, Judge the Content

All that glitters is definitely not gold. This is especially true with staged homes, which according to the Real Estate Staging Association sells 72 percent faster than non-staged ones. Staging is basically an on-the-surface alternative to renovating where hired stagers create real live-in scenarios with exquisite furniture, artwork, and accessories. In essence, it’s a form of embellishment. But while it’s true that staging plays a fundamental role in marketing a property, not everyone is good at it. A home you might drool over with proper staging may look like an eyesore with zero or little staging.

In fact, one of the great perils of home buying is to judge a book by its cover. What if the seller chose not to hire a stager, or what if the stager was all willy-nilly and cattywampus in presenting the home in the best possible light? Just because the home wasn’t presented with all the bells and whistles, doesn’t mean it cannot be amazing with all that sweet modern furniture you just bought with the money you saved selling with Homie. It’s therefore vital to peek beneath the surface and envision what the fixer upper would look like with a bit of elbow grease and improvements.

Alternatively, if a home is impeccably staged, it does not automatically mean that you’ve discovered a great buy either. You may still need to investigate for potential red flags. Now, we’re not saying you should invest in a giant magnifying glass and deerstalker cap (although that is a mighty allurin’ look) but you do need to scratch the surface luster to see what lies beneath. Here’s a list of some vital areas to focus on before you allow yourself to be seduced by those gleaming door knobs and that “chef-grade” percolator.

Checking the Plumbing, Foundation, and Electrical Outlets

For plumbing, be sure to check the main sewer line. You wouldn’t want to experience clogging in that region if lines need repairing or replacing. Sewer clogs are a bad deal. Maybe write that down.

If you discover a damaged line and still want the ugly house, make provisions in your budget for plumbing repairs or use that as a negotiating point. You should also check for toilet leaks and the condition of the water heater tank. Remember, a geyser lasts about a decade, so take that into account when budgeting for potential replacements.

Have an electrician or property inspector check the wiring and signs of overloaded circuits. Also check the electrical outlets for any physical defects. You could check the foundation by looking for poor drainage, mold, and moisture. Be on the lookout for fissures and cracks in the foundation.

Are there vertical cracks along the walls or does the stairway have zigzag slits? Horizontal cracks on a foundation wall are a definite red flag, as well as chipping or crumbling concrete. The best way to decipher any foundation damage is to hire a professional. Don’t know where to find one? No worries, as you can hire one of our super-efficient inspectors by clicking on our service provider marketplace. Our trained inspectors will also inspect your plumbing and electrical outlets. All providers charge a service fee but it’s well worth the investment.

Checking Location, Noise Levels, Traffic, and Schools

Location is definitely a deal breaker here. If your ugly house is in an upscale neighborhood, you may have hit the jackpot, as this would increase your updated home’s value. Be careful of ‘big home envy’ though. Remember that if you buy small in an upmarket neighborhood, your Phoenix real estate fixer upper could score you more pennies when you sell.

It’s also great if the direction of your home lets you experience the full effect of the sun, as this would keep your home warmer during winter. Also check for noise levels and whether traffic volumes are tolerable. It’s always a good idea to check the crime statistics from Statista. You could also check if the area has good schools and whether you’ll be central to major arterial roads.

Buying Ugly Could Work to Your Financial Advantage

Bear in mind that because the house is freaking ugly, the owner wants to flush the whole thing out, like yesterday. They may even be over zealous in sealing the deal. Heck, even the neighbors may treat you like a celebrity, especially when the ugly duckling becomes a swan. You may even get a fancy gift basket (remember to share).

Sellers may price these homes lower than the market average and fast track negotiations so they can secure a contract sooner rather than later. They’re also more willing to accept a re-negotiated offer. Also, other buyers may turn up their noses with one glance at the fixer upper, removing all competition, and placing the seller at the sole mercy of your offer. And if your offer is good, you may include accepting credits. This will lower your closing costs. And remember, if you buy via Homie, you’ll get a credit of up to a $2,500 as part of the Buyers Agent Commission. You can use this to cover moving expenses, do some renovations, or simply plan an awesome vacation after you’re all moved in!

Did you know that most banks are stingy when it comes to financing a decrepit house? Your seller knows this, and may extend some leniency by applying for the finance themselves, and charging you interest. Eradicate the stress of not knowing whether you can afford the house, by using Homie Loans, our sister home-financing company. We’ll get you pre-qualified and pre-approved in record time, so you can negotiate with a gleam in your eye.

Make the buying process as smooth as a private jet ride when you select Homie as your agent. Our agents will help you understand all the fine detail of your buyer’s agreement contract, collaborate with your seller, relay vital information to you, and assist with any renegotiation.

Okay, So Your Diamond in the Rough May Need Some Polishing

Remember that your work does not end once you’ve signed on the dotted line. You have yet to transform your home from a diamond in the rough to a perfectly cut and gleaming rock that Liberace would have been proud to wear. If you’ve conducted a home inspection with us, you’ll be given a detailed report of the necessary repair work. Prior to settling, it’s a solid idea to include all these costs into your budget and use this as a negotiation tool to get the seller to lower the sale price. Repair work should include anything from paint work to repairs.

One advantage of buying an older house is that existing landscaping like plants and trees could bolster your curbside appeal and home value. You could even add to the aesthetic by creating new features like a fountain or some pathways. Painting, additional landscaping, and customized remodeling also gives you the chance to make the home your own. Unkempt historic homes may also have hidden architectural gems like high-profile moldings, stained glass windows, or meandering stairwells. Imagine unraveling all of that underneath tons of dust and grime? Sweet, right?

Convert Your Ugly Into a Lovely

Not all sellers are great at staging an ugly home. The seller may even feel that the ugly duckling isn’t worth the effort. This leaves a nifty little gap for an astute buyer to see that diamond in the rough.

Keep an eye out for foundation, plumbing, and electrical issues. You could use a repair budget as a negotiation tool when making your offer. Negotiations should also be pretty easy here, since the home has probably turned off all your competition. And if you use Homie agents, negotiation will be even more streamlined. Just draft your offer via our digital platform and a Homie agent will call you to review your offer. We’ll then submit your offer to a listing agent and oversee all your paperwork, from negotiation through to final sale. We make it easy!

Sign up with Homie today and you can keep up to 50% of our commission* to help make your new fixer upper like new!
 

*Subject to terms and conditions outlined in the Buyer Broker Agreement.

Source: homie.com

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Compare rates and save on home insurance today!

As a renter, your landlord may require purchasing renters insurance as part of your contract. But even if not required, a renters policy can provide an extra layer of protection for your personal belongings, as well as financial liability if someone is hurt in your home. To make renters insurance work for you, learn how much renters insurance you need and what coverage options are available.

How much renters insurance do I need?

Experts recommend purchasing enough renters insurance to help you replace all of your personal possessions if they are stolen, lost or damaged.

A good way to figure out the value of everything you have is to create a list, or inventory, of all of your possessions and include dates of purchase, serial numbers, appraisal documents and any receipts. Use your cell phone or an app to take photos and save your inventory so that you can add to it if you make any new purchases. Include all expensive items and electronics, including computers, devices, home security systems, jewelry, instruments and any appliances you’ve purchased. Use the internet to identify what it would cost to replace those items, and then use that result to decide the minimum amount of renters insurance coverage you need.

If you have a large dog or a specific dog breed, you may need to purchase additional liability insurance.

How much does renters insurance cost?

According to the latest data available from the Insurance Information Institute (Triple-I) the average cost of renters insurance is $174 per year, or about $15 per month.

What affects the cost of renters insurance

While the annual cost of renters insurance may be relatively low , several factors will ultimately determine how much your renters insurance policy costs. These include considerations for:

  • ZIP code
  • Credit score
  • Home inventory
  • Deductible
  • Rental size
  • Actual cash value (ACV) vs. replacement cost value (RCV)
  • Security and fire systems
  • Pets
  • Discounts

There may also be other factors that influence your rate, such as the insurer you choose and amount of liability you opt for. By considering factors such as these, you could begin receiving quotes based on your personal selections for a personalized rate.

Is renters insurance worth it?

What does renters insurance cover that makes it worth the cost? It typically includes personal liability protection to pay for attorney fees and damages or medical treatment for someone who is hurt in your rented home, apartment or condo. The liability protection will likely include no-fault medical coverage so that if someone is hurt on your premises, they can submit their medical bills and expenses to your insurance company and you can prevent a lawsuit.

Renters insurance also covers your personal possessions if they are damaged in a covered natural disaster or stolen. It may also reimburse you for items that are lost and stolen from your car or when you are away from home.

While some people may assume that their personal belongings are not worth an additional monthly cost, it may be worthwhile considering the cost of replacing those items in unplanned circumstances that cause damage. You might own a small wardrobe and a few decorative items, for instance, but a theft could cost you upwards of $1,000 for your home office set-up between your television and electronics. This and similar scenarios are why insurance experts recommend insuring your personal property. Renters insurance also generally covers additional living expenses in case you are displaced by a fire or another covered scenario that makes your rental unlivable.

How do I calculate renters insurance coverage?

Determine your desired deductible

The deductible of your renters insurance policy is that amount that you would be responsible for paying before the insurance company covers the rest of the cost. For example, if you have a $500 deductible and you filed a claim for damage from a fire, you would pay $500 towards the repair and the insurance company would pay the remaining cost. The higher the deductible, the lower your insurance premium, but make sure that it’s an amount you’d be comfortable paying out-of-pocket at any time.

Decide if you intend to purchase additional coverage

You can check whether your financial and personal possessions are sufficiently covered if you are affected by a disaster or involved in a lawsuit. If you do not think you have enough coverage on your renters insurance policy, you can also purchase an umbrella policy. This is an additional liability insurance policy that covers you when you reach the limit on your renters or auto insurance policies, and it also covers you for libel and slander.

Off-premises coverage for travelers

If you travel, it might be worth checking that you have off-premises coverage to insure possessions (such as a laptop or cell phone) that you take with you when you travel with the same coverage that you would have if you were using them at home.

Consider adding a floater

If you have expensive items or one-of-a-kind, collectible items like sports memorabilia, original artwork, antiques, expensive jewelry or furs, consider adding a floater to your renters policy. The floater adds additional coverage for more expensive items if they’re lost, damaged or stolen.

Double check your policy for additional living expense coverage

If you live in an area where there are natural disasters like fires or severe thunderstorms, it could be important that your policy includes enough insurance for Additional Living Expenses (ALE). Additional living expenses include paying for a hotel, eating at restaurants and other expenses from having to live away from your rental home while it is being repaired.

Insurers will pay the difference between your regular living expenses and your added living expenses from being displaced after a covered event, but they may only do so for a limited time. Read the fine print to make sure you have enough coverage for any anticipated future disaster. Also, consider checking that your insurance covers things like floods because not all policies cover every type of natural disaster. Flood damage is usually excluded from standard renters insurance policies, but may be purchased either through your provider or directly from the National Flood Insurance Program (NFIP).

Source: thesimpledollar.com

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Breaking a lease won’t hurt your credit if all debts are paid. However, if you leave debts unpaid, breaking your lease early can cause your credit to take a hit.

Breaking a lease is relatively common and can happen for a number of reasons. Oftentimes, a new job can require you to move midway through a lease. Other times, personal issues arise that can force you to cut your lease short.

As a result, it’s rather common for tenants to leave leases early, and it doesn’t make you a bad or unreliable tenant if you must. However, landlords will still expect full payment for the entire lease term, even if you’re moving out months in advance.

If you do have to your break your lease, it’s crucial you’re not indebted to your landlord. When tenants owe landlords money, landlords will sometimes hire collection agencies to collect debts, introducing a whole new set of problems—one of which can be a hit to your credit score.

Maintaining a good credit score is important for a number of reasons. A good credit score can:

  • Give you more housing options
  • Help you qualify for low-interest credit cards
  • Save on insurance
  • Make you a stronger job candidate

Your credit score follows you around wherever you go. Therefore, when your score goes down, it can be a tremendous setback—and can take you years to reconcile.

As a result, protecting your credit is one of the most important things you can do—and breaking a lease shouldn’t have to jeopardize it . Keep reading as we explain how breaking a lease early can affect your credit and ways you can break a lease while protecting your credit.

Does breaking a lease early affect your credit?

Breaking a lease doesn’t directly show up on your credit report, but the consequences of breaking a lease, if you’re indebted to your landlord, can have compounding effects that sometimes result in a knock to your credit.

If you leave debts unpaid after breaking your lease, your landlord will likely use a collection agency to reclaim your debts. Your landlord probably won’t report the debt to a credit bureau, but the collection agency likely will.

If this happens, your credit will suffer, which can greatly affect you down the road.

Ways breaking your lease can hurt your credit

Like we said, breaking your lease doesn’t directly affect your credit, but the fallout often can. If you break a lease and don’t pay outstanding debts, your landlord may handle it in a couple different ways. A few possibilities include:

  • Your landlord may involve a collection agency: As we mentioned earlier, a landlord will sometimes bring in a debt collector if you don’t pay your remaining rent. If this occurs. the collection agency will likely report you to a credit bureau.
  • You may have trouble renting again: If your credit takes a hit, it will likely affect your ability to rent in the future. A 620 or higher is the usual score needed to rent an apartment. Most landlords run credit checks prior to renting to a tenant.

How to break a lease and protect your credit

The lesson here is that it’s best to proceed with caution when breaking your lease. Use our tips below to ensure you leave your lease with peace of mind.

Review the lease contract

Knowing your rights as a tenant is the first matter to address when breaking a lease—and the lease contract is the place to start. Sometimes, the contract will give you an easy out, like paying a small fee or allowing subletting. However, it’s pivotal you review the intricacies of the contract before beginning the process of breaking the lease, so as to be aware of your rights as a tenant.

Be transparent with your landlord

Having a one-on-one conversation with your landlord is a must if you plan on breaking your lease. If you’re transparent with your landlord about why you’re breaking the lease, they’ll most likely work with you to reach a solution that benefits everyone. 

Keeping your landlord in the loop is a great way to create a line of communication and ensure they don’t take any negative action against you.

Look for a subletter

Subletting isn’t allowed in all lease contracts, but if it is, it can give you peace of mind in breaking your lease. Subletting, by definition, means finding someone else to take over the remainder of your lease. If you elect to sublet, it’s essential to check with your landlord first to ensure them you’re subletting to a reliable tenant.

Since your name will remain on the lease, you’ll ultimately be responsible for any issues with the subletter. As a result, it’s important to screen whoever is taking over the remainder of the lease. 

Pay outstanding rent up-front

If you’re able, paying your outstanding rent balance at the time you break the lease is typically a foolproof way to ensure the landlord doesn’t take any negative action against you.

While there may be more intricacies within the lease agreement when it comes to breaking the lease, settling outstanding debts eliminates the possibility of the landlord bringing a collection agency into the picture. And in almost all cases, disputes over breaking a lease boil down to outstanding debts.

Situations when you can break a lease without repercussions

There are certain situations where tenants are protected by law when breaking a lease; therefore, it’s essential to know when you can break a lease without repercussions. The examples below vary from state to state and can require that some specific notifications are made to the owner of the property before exercising your right to break the lease. It is important to know your responsibilities under your state law before breaking your lease.

  • The unit is uninhabitable/doesn’t comply with housing codes: If you believe that your residency isn’t complying with health codes, look into state laws to confirm your suspicion. States have certain health codes that rental units have to adhere to. If your rental isn’t complying, you can terminate your lease without repercussion.
  • Tenant rights were violated: While some tenant rights differ from state to state, federal rights like anti-discrimination laws, privacy laws and the right to a habitable home protect tenants on the national level.
  • You’re active military: Tenants who are active duty military can break a lease without repercussions. The Servicemember’s Civil Relief Act allows military members to break leases due to their service.
  • Breach of quiet enjoyment was violated: The Covenant of Quiet Enjoyment guarantees that the tenant will get a peaceful environment. This is implied in lease agreements and, if violated, allows you to break a lease without repercussion.
  • The lease has a termination clause: Some leases include a termination clause that just involves paying a small fee. Make sure you review the lease contract before telling your landlord that you’re breaking the lease to see if a termination clause is included.

Frequently asked questions

Navigating the legalities of a lease contract can be difficult for tenants. As a result, other questions often arise when breaking a lease. Some common questions tend to be:

How long does a broken lease stay on your credit report?

The broken lease itself will not appear on your credit report, but any unpaid rent or other fees can stay on your credit report for up to seven years.

Does paying rent build credit?

Paying rent won’t build credit unless you report your payments to a credit bureau each month. In order to do this, you’ll need to sign up for a subscription service that reports rent payments for you. Your landlord will also need to sign up for the subscription in order to receive the payments through the service.

Keep in mind that it may be unlikely that your landlord will want to participate in this system, since they likely have their own system for collecting rent payments.

Rent-to-own, which involves renting a home with the intent to purchase it at the end of the lease contract, does not directly affect your credit either. Unlike mortgage payments, rent-to-own payments are not reported to credit bureaus.

Can you get debts from breaking a lease removed from your credit report?

In general, no. Unless the debt is truly inaccurate, it’ll remain on your report for seven years.

However, if you pay the debt after the judgment is already added to your credit report, you can work with the creditor to have the debt marked as “paid” instead of “open” on your report. This can improve creditworthiness and give you a better chance of receiving loans and renting in the future.

Leave your lease with peace of mind

When you break a lease, it’s best to leave no shadow of a doubt that your credit will be protected. Whether this means having a candid conversation with your landlord, paying your outstanding rent amount or finding a subletter, there are best practices you can put into action to avoid having to fix poor credit down the road.

Finding ways to fix your credit can be difficult, and often requires the help of a professional. Lexington Law’s credit repair services could help you get back on track. Get a free credit assessment today.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Nature Lewis

Associate Attorney

Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.

Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!

Source: lexingtonlaw.com

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I thought that I would switch it up a little bit on the blog today and share one of the videos that I did for my other site Soldier of Finance. You did know that I another site, right? Consider yourself informed. Here’s one of the many videos I’ve done. Enjoy…..

Today I want to talk a little bit about failure. A lot of people are afraid of failure. They are just terrified of it. They are afraid of trying something new. They’re scared of attempting to change something about their life so they just don’t do it at all. As much as I talk about success, whether that be on the Soldier of Finance blog or my Good Financial Cents blog, the one thing I am not afraid to admit is that I have failed. I have failed many times.

I wanted to give just few different examples of how I have failed, but more importantly what I’ve learned from it. It’s one thing to fail, but what you learn from that experience, what you take away from it and how apply it to your life going forward is the most important part. Failure is almost a necessity to success just so you can learn how to tweak and change the things that you are trying to accomplish and how you can improve those.

Example of Failure

One of the first things in my life that I failed at, which just shocked the crap out of me, was in basic training. Our very first PT test, that was our physical training test and we had to do max pushups, max sit-ups and a two-mile run. The first time that I took the PT test in basic training I failed the run. I think our cut off was somewhere in the 16-minute mark for a two-mile run, and I ran it in the high 18s. I was 21 years of age and to fail a two-mile run when I was working out, I thought I was in decent shape, it was a truly eye-opening experience and really a gut-wrenching feeling because in basic training that is not the place where you want to fail, especially around your peers, around your drill sergeants, etc.

My take away from that was don’t have this false sense of accomplishment, thinking that maybe your all good when in all actuality you need to work and to change and to improve on some of those skills. What I did was just kept doing the PT, kept doing the running, kept trying to improve on myself and my PT score and sure enough by the time basic training ended I was running it in that 14-minute mark. Still not excelling of all the other guys, but I have never been a runner in my life so just the fact that I passed and passed with a decent score I was pretty well content.

It’s Not a Pyramid Scheme….

Let me give you another example of how I failed. One thing you’ll learn about me is that I love to try new things, whether that be going out and trying new restaurants, going out and visiting new locations, or in my business life I love trying new business ventures. One area of my life where I failed not just once but twice was multi-level marketing. If you’ve heard about multi-level marketing a lot of people refer to those as pyramid schemes. I tried two different multi-level marketing businesses and both of them failed.

The take away that I got from those two experiences, those two failures was that if you’re going to start a business no matter what it is, make sure it is something you’re passionate about. Make sure it is something you believe in 100,000%. With these multi-level marketing businesses that I went through, I was sold on this dream, this vision of passive income and having all this extra money coming in. I was more focused on the money then the actual business, the actual passion that was presented in front of me. It sounded like a good idea, but I wasn’t in it for the right reasons. That was my biggest take away. I don’t mean to down all multi-level marketing businesses. I am sure there are some that have a decent business model, but the ones that I was a part of, I didn’t believe it, and I couldn’t sell something I didn’t believe in.

Now with my financial planning business, with my blog with Soldier of Finance these are all things that I believe, I’m passionate about. I want to give everything I’ve got into this hoping that I can help people, whether that’s changing their life financially or give them the sense of encouragement and accomplishment they need to succeed in their own lives.

So you’re probably thinking, “Wow, these are some pretty big failures.” And they are. These are things that I had to learn from. It was an eye-opening experience on both those occasions. These are just two examples. I promise you I have several other examples of where I have failed, but the take away, as I said earlier is what I learned from them. That is the most important part because you have to learn.

Just Like Riding a Bike

Whenever you were riding your bike for the first time, unless you were just a bike-riding animal most likely you fell. I remember I fell hard my first time, scrapped up my knee. My grandmother and my dad were there to support me and pick me back up and I was scared. I didn’t want to get back on. After getting on again, I think I fell a second and third time, but I kept trying and kept trying and learned from those experiences. Next thing you know I am riding my bike like every other kid was. You have to fall every once in a while, but don’t get discouraged. Pick yourself up, dust yourself off and learn from it and then apply it. You’ll move on and get on to the next step.

Thanks for stopping by. Be sure to check out the blog, soldieroffinance.com and we’ll see you next time.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

Source: goodfinancialcents.com