How
I Went From Being Flat Broke to Owning My Own Home, Mortgage
Free, in Just 5 Years.
Step Five: Buy Your Next House, for Cash
As soon as you list your house (or even sooner) you'll want
to visit the area where you intend to buy your own home. Interview
several real estate agents in the area to find one who will
help you find the perfect home. Since you've thoroughly researched
the area you should have a good idea of the local home values,
so you don't pay a premium just because you're an out-of-town
buyer.
If the first real estate agent you interview seems more interested
in protecting the interests of her sellers, (who she may have
gone to grade school with), it may be a good idea to look
around for another agent. And be sure to take just as much
care as you did when buying your first house – get a
home inspection, ask your agent to show you comparable houses
that recently sold, etc. I was lucky to find Candy
Bowman, a highly competent real estate agent here in La
Grande, who I would highly recommend to anyone who wants to
come to this area.
If you've read this entire report,
you're now an expert on finding a bargain house that just
needs a bit of cosmetic work to make it look great, so you
may want to put those skills to work on your new home, too,
even if you don't intend to sell it in just a few years. You
probably don't want a fixer, since that will take too much
money and time, but you will be able to afford a "better"
house if you're willing to live, at least for a few months,
in a home that needs a new carpet or a new coat of paint.
The house I found in La Grande cost me $75,000 in cash. There
were less expensive houses available in the area, but they
needed a lot of work. Since I do need to spend at least some
of my time working and writing, I was afraid that major remodeling
projects would take up too much of my time. I was careful
to find a house that sits on a lot where I could have the
large garden that I enjoy so much, and I was lucky to find
a house that was previously owned by people who are as interested
in flowers and edible plants as I am. I'll eventually do a
few things to the inside of the house, since I can't help
myself, but nothing needs to be done.
I now live in a small, friendly city along with about 12,000
other friendly, welcoming people. My new home town sits at
one edge of a beautiful valley that's ringed by the majestic
Blue Mountains. The light that bounces off the mountains in
the morning is breathtaking, and that may account for the
number of artists who have settled here. At night, I can see
thousands of stars while standing in my back yard –
something I could never do while living in a larger, brighter
city. If I want to go to a first-run movie, I can walk to
the theater and feel perfectly safe walking home after dark.
And yet a major city is only a few hundred miles away.
Frankly, I can't imagine a better place to live.
And that, in a nutshell, is the way I managed to go from
flat broke to owning my own home without a mortgage. Now that
you've read through this report, you will already be thinking
about changes to this plan that will make it work for you.
Do your research before making any decisions, talk it over
with your tax advisor and a trusted expert in your local real
estate market, and then find ways to spend a few frugal years
that will be both enjoyable and profitable for you and your
family. You may soon be living in a home of your own, without
a mortgage.
Good luck – I wish you all the best!
Next: Resources
|
Important Links:
FSBO
Selling Tips
Planet Money Podcasts
Robert Reich’s
Blog
Talking Points
Memo |
