Barbara Corcoran’s Top 8 Tips to Save You From Financial Disaster

Barbara Corcoran is widely known for her role as one of the most powerful investors on ABC’s “Shark Tank,” with an estimated net worth of $100 million. But do you know how he made much of his money? Corcoran built his wealth through his successful real estate career.

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He’s been kicking around the national stage for quite some time, and along the way, he’s learned a thing or two about money. If you’re looking for ways to improve your financial situation, Corcoran has plenty of advice to offer. Below are eight of his top tips, focusing on the things he knows best: real estate and money management.

When it comes to financial markets that can grow your wealth, Corcoran believes in entering the real estate market early. Yes, this may be an ambitious short-term financial goal, but the long-term benefits make it a solid asset purchase.

“I think the sooner you get into the market, the sooner you have a chip in the game. You can negotiate,” he said.

According to Corcoran, it’s always a good time to buy, because even though the market may seem high now, home prices typically rise over the long term. If volatile economic activity lately is any indication, you may want to align your financial assets so you can follow his advice.

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While many people wait for lower interest rates before purchasing a home, Corcoran cautions against this strategy. She believes that when rates go down, there will be a rush to buy, driving up prices by 10% to 20%. His advice: don’t wait, act now.

When investing in real estate, Corcoran recommends buying in areas that are on the rise. “If you can sit in the back of an up-and-coming area, you’ll make a lot of money,” he said.

Not only can this give you a property that will appreciate easily, but it can also help you avoid subprime mortgage-backed securities. This strategy usually generates significant profits when it comes time to sell.

If you don’t plan to start a family, Corcoran believes you should look for areas with poor school districts. Why this instead of areas with better infrastructure and financial systems? Well, those areas often have lower real estate prices and also great growth potential.

The only exception? Florida. Corcoran is not very popular in Florida right now.

“Go anywhere in the South other than the hot spots,” he said. “There’s always a cheap house to buy, always. But not in Florida. Forget Florida.”

If you can afford it, Corcoran’s “rule of thumb” for real estate investing is to purchase multi-unit properties with at least a 20% down payment. This may seem like a big financial ask up front, but the reward can be exponentially greater.

The reasoning behind this is that it allows you to break even. and Make tenants pay your mortgage. Basically, this will allow you to make a lot of money in the long run.

If you’re selling a home, Corcoran believes you need to make sure your property looks attractive.

“Keep in mind that the buyer walks in and judges that house in 30 seconds,” he added.

So if you’re looking to sell your home, be sure to renovate it: spruce up the entryway, living room, and kitchen, as these are the areas buyers focus on.

This is a rookie mistake and Corcoran believes you should avoid it. Don’t settle for the first mortgage rate you’re offered. Instead, you think you should visit several banks and ask about special discounts for loyal customers.

“It will often save you a quarter of a percent,” he said. “That doesn’t seem like much, but it adds up.”

For young people looking to invest in real estate, Corcoran believes they should get started as soon as possible. If your family has the means, they also think you should ask them for help, especially for the down payment.

“There is no shame,” he said. “No one shops under 40 in New York without the help of their families.”

Caitlyn Moorhead contributed to the reporting of this article.

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