What a year.
Every single woman that I have talked to recently expresses burnout. We have somehow managed the impossible for a year now. Social isolation. Raising babies. Homeschooling. All while working full time (or not). If there has ever been a year to honor and celebrate the strength, tenacity and residence of women, this would be it.
2.5 million women have left the workforce since the start of COVID. Now more than ever, woman have to be creative with how to make money as they juggle even more. Now more than ever, I think real estate is a great avenue for women to build wealth. Yesterday was International Women’s Day and this year’s theme is Choose to Challenge. What if we chose to challenge the status quo and what it looks like to build wealth for our family?
As women, we know what it takes to be resourceful and creative: traits that are needed in the Denver Real estate market. How can you make money using real estate?
House-hacking. Can you rent a room, basement, etc of your home?
Buying a Rental. Sure, house values are rising but so are rents as people continue to move here. You can still make money with a rental in this market.
Selling your home. Most likely, your home is your biggest asset but that isn’t realized until you sell. I hate having a ton of equity in my home and every few years get the itch to sell. Now, this isn’t for everyone because a primary residence can be an emotional investment. However, your home is worth a lot right now but that money is unrealized until you sell. We bought a home for 400k two and a half year ago and are now selling it for 475k. If you had put 20% down ($80,000), you would be almost doubling your investment when you sell and collect about $130,000 at closing (after fees, etc). You could easily reinvest that money in another primary residence or put 10% down on a large home and then use the rest to buy a rental that cash flows.
Leverage. Another way to take advantage of all the equity in your home without selling is a HELOC (home equity line of credit) and using that money to purchase a rental. Commit to using the cash flow from the rental to paying off the HELOC. In a few short years, you will have two homes worth more money AND one that cashflows and brings in extra money for your family each month.
Imagine a life of financial independence where what happens in the external world won’t impact you so greatly because you have made strategic decisions to build wealth. Real estate has blessed me with the opportunity to build wealth on a very flexible timetable. I urge you to consider how to set this up early in life, your future self will thank you.
And, just a reminder ladies, we’ve got this!
Reach out to Liz for more information on how to build wealth through real estate. Liz is broker and owner of Liz Daigle Realty.