How do you know how much money you need to start investing? Begin
I got one tip for you. FIGURE OUT THE EXACT NUMBER OTHERWISE YOU WILL NEVER INVEST.
I learned this the hard way of waiting for 4 years...
Until I figured out that exact number. So I created a this google form that helps guide you and sends you a number based on where you are.
If you don’t want it to be calculated for you here are the steps on what to do:
1. Figure out exactly what the home values are in the area you are planning on investing.
2. For arguments sake, pick the median home value. (Example for me it is $193,000)
3. Figure out what kind of loan you are planning on using
4. What is the down payment of the loan? (0%, 3.5%, 5%, 10%, 20%, 25%)
5. Take that down payment number, multiply it by the price of the home found in step 2
6. Multiply about 3% to 5% for closing costs on the house (0.03 * Home value) and (0.05 * home value)
7. Add the number from step 6 to step 7. That’s what you need to buy a median priced home in your area. That’s what you should set as your saving goal.
Did I miss anything here? Experienced investors, please chime in. I actually created a google form that calculates this stuff for you and gives you your exact number you need to invest. If you want it please dm me, I am not allowed to post it here!
Most Popular Reply
Hey @Antonio Cucciniello, this is a cool idea! The only thing I would add to this would be a "reserves fund" box, which could be optional, that would guide the prospective investor to think about the wisdom of holding some cash or liquid-equity for the inevitable burst pipe, slab leak, electrical failure, roof replacement, $500 of new blinds, etc.