Let’s Talk Money: How to Handle Your Finances in Real Estate Like a Pro
Whether you’re buying your first home, selling your current one, or looking to invest, real estate is one of the biggest financial moves you’ll ever make. And while HGTV makes it look easy, the money side of real estate deserves serious attention.
But don’t worry—you don’t have to be a finance expert to make smart moves. You just need the right mindset, a few solid strategies, and a trusted guide (that’s where I come in). Let’s break it down.
š” 1. Know What You’re Working With
Before you start browsing listings or dreaming about sale profits, take an honest look at your financial picture. Ask yourself:
What’s my current income, debt, and credit score?
How much do I have saved?
What monthly payment can I actually afford?
Pro Tip: A lender can help you get pre-approved and run the numbers for different scenarios. It’s one of the smartest first steps, even before touring homes.
š” 2. Buyers: Budget Beyond the Mortgage
When buying, don’t just plan for the purchase price. You’ll also need to factor in:
Down payment (typically 3%–20%)
Closing costs (usually 2%–5%)
Moving expenses
Repairs or updates after move-in
Ongoing costs like taxes, insurance, HOA dues, and maintenance
Bottom line: Buy what fits your life, not just what a lender approves.
š° 3. Sellers: Understand Your Net Proceeds
It’s not just about how much your home sells for—it’s about how much you keep. Consider:
Your remaining mortgage balance
Agent commissions
Repairs or staging costs
Seller-paid closing costs (if negotiated)
Capital gains tax (if applicable)
Want to know your estimated bottom line before listing? I can run a net sheet to break it all down clearly.
š 4. Investors: Think Like a CFO
If you’re buying property for rental income or resale, focus on return. Track:
Acquisition costs
Monthly cash flow (rent minus expenses)
Vacancy rates
Appreciation potential
Tax strategies and deductions
Real estate can be an incredible wealth-building tool—but only if you run it like a business.
š§¾ 5. Track Everything + Build a Financial Cushion
Whether you’re buying or selling, unexpected costs can (and do) pop up. Having a cushion gives you peace of mind. Keep records of every expense, payment, and communication along the way. You’ll thank yourself later.
š¤ 6. Work With People Who Know Their Stuff
Don’t DIY your financial future. Surround yourself with a strong team:
A responsive real estate agent
A trustworthy lender or mortgage broker
A savvy accountant or financial advisor
A reputable title company or attorney
Having pros in your corner keeps you from costly mistakes and helps you make confident, informed decisions.
Final Thought:
Money doesn’t have to be a stressor in real estate—it can be a tool for building the life you really want. Whether you’re buying your dream home or planning your next move, your financial confidence starts with understanding, planning, and choosing the right people to guide you.
Have questions or need help running the numbers? Let’s connect. I’d love to help you navigate it all—clearly, confidently, and with heart.
