By Danielis Fermín
elinmobiliariodo@gmail.com
It recommends allocating extraordinary income to create an investment fund.
SANTO DOMINGO – Buying homes for short- or long-term rental has become an option for those seeking financial freedom. Although for many it is a difficult or impossible process, Yudelka Parra, a finance and real estate expert, assures that the key lies in financial planning.
During her participation in the “Real Estate Investment & Financial Education Fair,” which she co-organized with financial advisor Luchy Alvarez, Parra emphasized the importance of self-awareness and having a clear understanding of one's finances before making any investment. “A smart investor knows themselves. We don't all have the same risk tolerance.”.
Yudelka Parra. (External source).
He added that, therefore, “when investing, it is crucial to know yourself, have control of your finances, and know where your finances stand in order to start investing. That makes a smart investor.”.
Parra emphasized the need for a defined roadmap. “When we don’t have a plan, everything seems either good or bad. It’s very important to have a plan, as it allows us to focus and make the necessary adjustments. It’s vital to have a clear investment purpose, especially in the broad real estate sector, which includes residences, tourism, and the industrial and commercial sectors. If you’re going to invest, explore a niche, choose it, and be consistent.”.
Among his recommendations, Parra suggested allocating 50% of extra income to an investment plan. “If your monthly income isn't enough to build up savings for investment, you should take advantage of extra income. It can make all the difference. For example, if you receive a 13th-month salary, a vacation bonus, or a salary increase, allocate at least 50% of that income to your investment. This rule can make a big difference in the long run.”.
The mentor advised diversifying income streams and assessing risks. “There is no such thing as a risk-free business. When you start investing, treat each property like a business and manage profits with the intention of reinvesting them. Conduct due diligence to ensure success.”.
He stated that success in the real estate market requires focus, organization, and adherence to the investment plan. “We have a responsibility to create the life we dream of or simply manage our circumstances. Education is fundamental and non-negotiable. Seek a mentor who has achieved the results you desire and who aligns with your values. Take one small step each day; every great achievement begins with a small step. Enjoy the journey.”.
