The Dawn Simmons Team
Dawn Simmons
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                            No one knows for sure where interest rates will end up this year, but the smart money is planning on at least 2 rate hikes this year. Most of you are too young to remember mortgage rates over 15% but I do. The mortgage on my first home was over 15%. Boy have times changed and for the better. Anybody with a decent job & good credit should be locking up these low rates and investing in real estate. These are historic low rates-still well below 5%.  My advice: INVEST IN REAL ESTATE NOW (house, flats, condo’s) & capture a low long term mortgage-NOW-before rates climb. I can’t think of a better way to build wealth. Lock in a low mortgage rate & invest in a good piece of real estate that can be rented for profit. Think about this-Most people approaching retirement will tell you that the bulk of their wealth is the home they own. It will be sold and they will trade down to a smaller, less expensive property. Imagine if they had owned a 2nd property over that time-their wealth could have very well been doubled. What if they invested in 3 properties? 5 properties? 10 properties? What about 100 properties? Get the picture?  It’s elementary, easy & just sound long range planning. Look at your finances, come up with a number you’re comfortable with that you can use as a down payment. Get preapproved by a reputable lender. Contact a knowledgeable Realtor, one you can trust-not Uncle Marvin or cousin Timmy- a full time professional-sorry Timmy. The Realtor will set up a priority search of the areas that interest you & send you everything that comes up for sale within those parameters. Go through the list, if something makes sense set up an appointment & go view it. Once you find what you like it’s a simple math equation. Get the rental rates, taxes, insurance, mortgage amount & any incidentals-are you going to self-manage or hire a property manager (approx. 10% of rental income). Take action, invest in a good piece of property, maintain it, collect rent & let your tenants pay down the mortgage. Now let’s look 10 years down the road-your mortgage balance is much lower, you have steady cash flow & hopefully the property has appreciated in value.
BOTTOM LINE: Leave your money in the bank at ridiculously low rates or invest in real estate & grow your wealth. In the words of Franklin D. Roosevelt- “Real estate is about the safest investment in the world” Rates are going up, now is the time make your move. But that’s just my take.

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