Barbara Corcoran’s Top 8 Tips That Will Save You From Financial Disaster

Barbara Corcoran is largely known for her role as one of the most powerful investors on ABC’s “Shark Tank” – but did you know how she made a lot of her money? Well, it was her wildly successful real estate career. She has been wheeling and dealing on the national stage for quite some time – and she has learned a thing or two along the way.

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What can we learn from Corcoran? Well, a lot of what to do – and plenty of what not to do to avoid financial pitfalls.

Here are eight of her top tips, with a focus on the things she knows best : real estate and money management.

Money mistakes the super wealthy never make - that you might be doing now.

Buy a Home as Soon as You Can

Corcoran believes in getting into the real estate market early.

“I think the sooner you get in the market, the sooner you have a chip in the game. You can trade up,” she said.

She thinks it’s always a good time to buy, because even if the market feels high now, prices usually go up in the long term.

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Don’t Wait for Interest Rates To Drop

While many people are waiting for interest rates to decrease 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.

Look for Up-and-Coming Areas

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.

This strategy can lead to significant profits when it’s time to sell.

Consider Areas With Poor School Districts

If you’re not planning to raise a family, Corcoran thinks you should look at areas with poor school districts. Why? Well, those areas often have lower property prices but potential for growth.

The one exception? Florida. Corcoran is not big into Florida right now.

“Go anywhere in the South other than the hot spots,” she said. “There’s always a cheap house to buy — always. But not Florida. Forget about Florida.”

Put 20% Down on Multi-Unit Properties

If you can afford it, Corcoran’s “golden rule” of real estate investing is to buy multi-unit properties with at least a 20% down payment.

The reasoning behind this is that it allows you to break even and have tenants pay your mortgage. This will basically lead to you making the big bucks in the long term.

Focus on First Impressions When Selling

If you’re selling a home, Corcoran thinks you need to make sure your property looks inviting.

“Realize that the buyer walks in and judges that house within 30 seconds,” she said.

So, if you’re in the market to sell your house, make sure to give it curb appeal – fix up the entrance, the living room and the kitchen, as these areas that buyers focus on.

Shop Around for Mortgage Rates

This is a rookie mistake and one Corcoran thinks you need to avoid. Don’t settle for the first mortgage rate you’re offered. Instead, the investor thinks you should visit multiple banks and ask about special discounts for loyal customers.

“It’ll often save you a full quarter of a percent,” she said. “That doesn’t sound like a lot, but it adds up.”

Invest Early and Ask for Help If Needed

For young people looking to invest in real estate, Corcoran thinks you should start as early as possible. If your family has means, she also thinks you should ask them for help, especially for a down payment.

“There’s no shame in that,” she said. “Nobody buys under 40 in New York without the help of their families.”

This article originally appeared on GOBankingRates.com : Barbara Corcoran’s Top 8 Tips That Will Save You From Financial Disaster