SANTO DOMINGO– Don't make the mistake of investing if you don't have sufficient savings and an emergency fund to ensure your expenses are covered for at least six months. Orlando Núñez Marchena advises real estate agents to remember that they are independent professionals without a fixed income and must adjust their finances accordingly.
Invest without affecting your liquidity, suggested the financial expert while participating last night in the CBR 02 of the Association of Real Estate Agents and Companies (AEI), a training day that will extend until next Friday, in virtual mode.
He explained that many people make the mistake of investing without having the necessary collateral and end up without liquidity. “They accumulate properties and can’t afford them. Buying an apartment to rent is very common here, but when the property is vacant, the obligations still need to be met, and many people invest without savings. When the tenant leaves, their loan starts to deteriorate, damaging their credit. We should only invest when we are prepared,” he advised.
Marchena urged real estate agents to be wary of what he calls "small expenses," those unnecessary costs that become the main drain on people's finances. Throughout his presentation, he emphasized the importance of saving and having an emergency fund because it provides financial security and covers expenses that cannot be met by regular income. He directed his message especially to those in the real estate industry who do not have a fixed income.
He said the real estate sector is a good niche for generating income, making it clear that "you have to be persistent and work hard." You can't go in expecting to generate income in the first month; first you have to train, learn the ropes, build relationships, and then the rewards will come. Plan based on your dreams," he advised.
“Know what you spend and what you spend it on, be mindful; a bad habit is not tracking your expenses, find a balance. Avoid over-indebtedness,” the expert stated.
Credit card
Marchena said that the credit card is one of the main financial tools and one of the best forms of credit, and that the problem lies in the fact that "we use it as if it were extra income.".
“Never make the mistake of paying one credit card with another because it snowballs. Also, you shouldn't have more credit cards than you can afford to pay off. Learn your billing cycle; it's a valuable tool, in addition to the benefits it provides.”.
According to the professional, a good credit history is built on a foundation of sound financial habits. He urged participants to give their savings a purpose, plan their expenses, and set spending goals. “Have an estimated budget for each purchase, regularly review your expenses to see where your money is going, set a family savings challenge, avoid impulse purchases, and seek the highest return on your savings,” the finance professional advised.
"Look for alternative sources of income," he continued, "look for vehicles that represent you but don't affect your budget, don't overspend your credit card, don't spend more than you earn, respect the limits, get financial advice, avoid paying late fees because that increases expenses.".
If the agent's commission is 5%, it's suggested not to spend more than 2%. "Plan routes to view properties; don't focus on just one. Take advantage of the area to show several properties.".
