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Getting_Started_On_The_Right_Foot

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					Title:
Getting Started On The Right Foot

Word Count:
656

Summary:
Although our personal financial outlook is one of the most important
contributors to our individual and family well-being and happiness, most
of us never learned this in school. Our school system doesn't teach you
just how important your credit score, personal financial statements and
financial goal-setting skills are, yet these things are crucial to your
financial "shape" and success.

Continually work to improve your credit or establish credit by keeping
accounts open and...


Keywords:
real estate, invest, finance, agent, broker, realty, property, american
dream, rental


Article Body:
Although our personal financial outlook is one of the most important
contributors to our individual and family well-being and happiness, most
of us never learned this in school. Our school system doesn't teach you
just how important your credit score, personal financial statements and
financial goal-setting skills are, yet these things are crucial to your
financial "shape" and success.

Continually work to improve your credit or establish credit by keeping
accounts open and by paying your accounts on time. Don't worry if you
have poor credit; you can still start investing in real estate right
away. However, excellent credit will allow you to partake of some of the
most creative and lucrative financing options available to real estate
investors, so it is important to start working on your credit score.

Second, understand the importance of creating your personal financial
statements. Your financial statements will help you create a plan that
will lead you to true financial freedom.

Undoubtedly, some of you will cringe at the very thought of having to
take a hard look at your financial state. Look at it this way: How will
you ever be able to determine where you want to go and how you're going
to get there if you don't even know where you are starting from? After
all, the key to becoming financially free isn't earning millions of
dollars; the key is controlling your personal finances. How many former
pro athletes and rock stars have made millions of dollars only to find
themselves bankrupt and living on skid row? How many multi-millionaires
work long, hard hours just to pay the bills and then retire too old and
worn out to enjoy the kind of lifestyle they had always dreamed of
living? Too many. Unfortunately, they were never taught how to take
control of their financial situation. Here is your opportunity to start
doing that.

The first step towards living the lifestyle that you've always dreamed of
is to determine how much passive income you need to become wealthy.

Next, assess your debt repayment expenses. There are positive and
negative debt repayment expenses, and it is important that you understand
the difference. Positive debt is when you use other people’s money to
purchase an income-producing asset (leveraging). You will be acquiring a
lot of positive debt through real estate investing. (For example, you
take out a loan from the bank to purchase a new rental property that
produces a positive cash flow. Although it is someone else’s money, like
the banks, it still creates a positive revenue stream.) Positive debt
expense is a positive cash flow that puts cash into your pocket. Negative
debt expense is a negative cash flow that takes money out of your pocket.

Do what you can to reduce your negative debt. Analyze your assessed debt
expenses and evaluate how you can reduce or eliminate the negative debt
repayment expense. Often, when you reduce other budgeted expense
categories, you are able to apply the difference between the assessed
amount and the budgeted amount to your negative debt.

Finally, review all other expense categories and make appropriate
adjustments.

SUCCESS STORY

Emily never believed she could start investing in real estate because of
her poor credit. One day, she found out that her friend Debbie was making
a lot of money investing in real estate despite her bad credit history.
When Emily asked her how she was able to invest in real estate with a
poor credit history, Debbie explained that she had learned how to buy
properties despite her poor credit. She told Emily that at first she used
seller financing and high-interest conventional and unconventional loans
to finance her investments. Initially, her investments broke even due to
the higher-than-normal interest rates. However, she applied the investing
tricks and turned her credit around in 12 months. She then refinanced all
of her properties at lower rates, which made her properties begin to cash
flow $1,900 per month.

				
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