"Corcoran appeared on the BiggerPockets Real Estate Podcast with her son Tom Higgins to describe two methods she says make up her "golden rule" of real estate investing: putting down 20% on an investment property and having tenants of that property paying for the mortgage. This is the method Corcoran herself used when she borrowed $1,000 from her then-boyfriend to launch her real estate career."
"Corcoran's method to real estate investing is tried and true. "That has always been my golden rule," she said. "Buy a property with 20% down. [That] has always been my formula because they used to do with 10%, but it's not possible anymore. I repeated that formula again and again and again, and then making sure the tenant has paid my mortgage. It's pretty easy that way.""
Barbara Corcoran recommends a real estate formula: put 20% down on investment properties and ensure tenants' rent covers the mortgage. She favors 20% rather than 10% because lower down payments produce higher monthly payments and greater risk amid high prices and rates. Corcoran started her career after borrowing $1,000 and opening a tiny New York real estate office following multiple job failures. She sold the Corcoran Group for $66 million in 2001 and later invested on Shark Tank, making more than 100 business deals. Other investors caution that one-size-fits-all rules may not suit every market.
Read at Fortune
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