On this episode of Financially Naked: Stories from The Financial Gym, Bevin Morgan, a Lexington-based Financial Trainer, is joined by Raquel Carter. Raquel is a Principal Broker, Realtor, and Independent Brokerage Owner. Guide Realty has been around for 14 years and is the largest Black-owned real estate company in Kentucky. Today, Bevin and Raquel will be talking about how real estate works and things you should be thinking about when getting ready to buy a house.

Podcast Notes

Raquel has been working in real estate for 20 years. Her mom worked in the industry and encouraged her to get involved!
There are many benefits to working in real estate. Where there are structures and limits in the corporate world, there’s more control over opportunity and growth when working in real estate. You work as an independent contractor, which Raquel loves.
She frames selling houses as a service for people. She thinks of it as mothering folks through something they have to do anyway.
Contract to closing is not always a direct line:
- Sometimes deals are smooth, sometimes they’re a roller coaster.
- You don’t know what you don’t know until you’re in it, which is why a professional can bring value.

Buying a home for the first time, some things to keep in mind:

Your first home doesn’t have to be your forever home.
You don’t always have to have 20% down to purchase a home. There are programs and loans out there for first time home buyers that are more flexible.
At this point in time, with the extremely competitive market, you want more cash.
Credit score is incredibly important. A higher credit score will help give you the best opportunities.
Start taking those first steps. Remember that buying a house can take time. There are no quick fixes. You want to come at it from a place of power.

Real Estate as an investment

If you want to invest in real estate, the best place to start is to become a homeowner. This shows stability to lenders and the rates for financing for a personal residence are generally better than an investment property.
Not everyone is cut out to be a landlord, and that’s okay! You don’t have to in order to invest in real estate.
Property will continue to go up in value. The bare minimum required is taking care of the property and you can always make improvements. Pay attention to the trends happening.

Final Thoughts

Get your approval first. This gives you greater negotiating power. Going in without knowing the budget is like going to the mall without knowing how much money is in your checking account,
You’ll need two years of tax returns, be aware of your credit score, debt to income ratio, and make a plan.
Working on getting your finances and goals in order are the things you can do while saving up and thinking about that first home.
There are variables out of our control, especially right now. The market is intense and Raquel doesn’t see that changing in the short term.
Homeownership is a fantastic way to add to your asset portfolio, build wealth, and progress further towards your goals.