David Sidoni sits down with How-to-Buy-a-Homie Corey from Dallas, Texas, to talk about his experience transitioning from an apartment to buying his very first home! Check out their conversation as they discuss the differences between condos and apartments, reverse-budgeting, house flippers, and so much more.
Here are some takeaways from today’s conversation:
- The right approach to budgeting can help you save and pay off debt
- Buying a home can mean compromising on your wish list
- Beware of house flippers and their wild markups
- Your unicorn team is your advocate in negotiations
[0:30] Planning and Saving
Before buying a house, Corey knew he needed to tackle some student debt. So, he used the reverse-budget approach to save enough money for a down payment while knocking out student loan payments. The reverse-budget prioritizes long-term savings over a traditional budget’s focus on month-to-month expenses, allowing you to save more money quickly. Reverse-budgeting allowed him to knock out debt quickly and get into a good position to buy a home. It worked so well for him, in fact, that he was approved for a loan within 72 hours!
[12:16] Picking the Right Place
After his record loan approval, Corey was ready to start looking at homes. He and his unicorn team picked out some neighborhoods that would suit his preferences and then started visiting. After viewing about 15-20 places, Corey settled on a condo in one of his favorite neighborhoods. While he did compromise on some things, such as his own yard, he was able to enjoy so many other amenities that he wasn’t able to enjoy at his old apartment.
[16:43] Your Relative Happily Ever After
While looking for homes, Corey didn’t have to face too much competition. But he found that investors are very likely to purchase homes in middle class neighborhoods and give them a quick “flip” for profit, often marking up the homes for way more than they’re worth. But, having the right unicorn team can help you sniff those homes out by looking “under the hood,” if you will. Veteran realtors know where to look to make sure you’re getting a good deal and warn you about the duds before it’s too late.