Barbara Corcoran is largely 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 she made a lot of her money? Corcoran built her wealth thanks to her wildly successful real estate career.
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She has been wheeling and dealing on the national stage for quite some time, and she has learned a thing or two about money along the way. If you’re looking for ways to improve your financial situation, Corcoran has a lot of advice to offer. Here are eight of her top tips, with a focus on the things she knows best: real estate and money management.
When it comes to financial markets that can grow your wealth, Corcoran believes in getting into the real estate housing market early. Yes, this may be an ambitious short-term financial goal, but the long-term benefits make this a solid asset purchase.
“I think the sooner you get in the market, the sooner you have a chip in the game. You can trade up,” she said.
According to Corcoran, it’s always a good time to buy, because even if the market feels high now, house prices usually go up in the long term. If volatile economic activity as of late is any indication, you might want to get your financial assets lined up so you can heed her advice.
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While many people are waiting for lower interest rates before buying a home, Corcoran warns against this strategy. She believes that when rates do drop, there will be a rush to buy, driving prices up by 10% to 20%. Her advice: Don’t wait — act now.
When investing in real estate, Corcoran recommends buying in areas that are on the rise. “If you can saddle onto the back of an up-and-coming area, you’ll make a lot of money,” she said.
Not only can this get you property that will appreciate easily, but it can also help you avoid subprime mortgage-backed securities. This strategy often leads to significant profits when it’s time to sell.
If you’re not planning to raise a family, Corcoran thinks you should look at areas with poor school districts. Why this instead of areas with better infrastructure and financial systems? Well, those areas often have lower property prices and also serious growth potential.
The one exception? Florida. Corcoran is not big into Florida right now.
