Barbara Corcoran, the prominent investor from Shark Tank, built her $100 million fortune primarily through real estate. Her advice, honed over decades of deal-making, centers on aggressive early investment and maximizing property value. Here are eight key strategies she recommends for securing financial success:
Buy Real Estate Now, Not Later
Corcoran insists that the best time to buy a home is always now. Waiting for “ideal” conditions—like lower interest rates—is a mistake. When rates eventually drop, demand surges, driving prices up by 10% to 20%. Get in the market before the rush.
Target Rising Neighborhoods
Smart real estate investing means identifying areas on the cusp of growth. Corcoran says that “saddling onto the back of an up-and-coming area” is the quickest path to profits. This approach not only benefits from easy appreciation but also avoids the pitfalls of overvalued markets.
Consider Undervalued Areas
If you don’t plan on raising a family, Corcoran suggests looking at areas with lower property prices, often found in districts with underperforming schools. These areas offer growth potential without the premium attached to established neighborhoods.
Note: Corcoran specifically advises against investing in Florida at this time, citing its inflated market.
Commit to 20% Down on Multi-Unit Properties
Corcoran’s “golden rule” is a 20% down payment on multi-unit properties. While it requires significant upfront capital, this strategy allows you to break even quickly as tenants cover mortgage payments, leading to long-term passive income.
Maximize First Impressions When Selling
Buyers decide within 30 seconds. Corcoran emphasizes that a property must look inviting. Focus on the entrance, living room, and kitchen—these are the areas that make or break a sale. A quick refresh can significantly increase value.
Shop Around for Mortgage Rates
Don’t accept the first offer. Corcoran recommends visiting multiple banks and negotiating for discounts. Even a quarter of a percent reduction can add up over the life of a loan.
Start Investing Early, Seek Family Support
Young investors should begin as soon as possible. If financially feasible, Corcoran encourages leveraging family support for a down payment. In competitive markets like New York, she notes, “nobody buys under 40 without the help of their families.”
Real Estate Remains the Best Bet
Corcoran’s advice reflects a core belief: real estate is a reliable wealth-building tool. By prioritizing aggressive early investment and strategic property selection, investors can capitalize on long-term appreciation.
In conclusion, Corcoran’s strategies are direct and practical, emphasizing that financial success in real estate requires proactive action, calculated risk-taking, and a willingness to leverage every advantage available.
