The New Location, Location, Location


                   “We’re not lost. We’re locationally challenged.” – John M. Ford

When it comes to real estate, the phrase, “location, location, location” always used to describe the importance of where your house was physically located. But we teach that the new “location, location, location” needs to be applied to your cash and cash flow.

With that in mind, how do you compare the investment in your house to other investments, such as your 401(k), a savings account, stocks or bonds, or even cash in your sock drawer?

Here are six crucial tests to use whenever you are deciding where to put your money:

        1. Safety (how safe will my money be? What is the chance of losing my investment?)

        2. Liquidity (how readily available will my money be and how quickly can I get to it if needed?

        3. Rate of Return (how much interest will I earn by investing here?)

        4. Taxes (do I get some tax savings or benefit from this investment?)

        5. Leverage (how can I invest a small amount of money to control a larger asset?)

        6. Diversification (don’t keep all of my eggs in one basket!)

Whether you are meeting with a skilled financial planner to invest for your future, or preparing to make a down payment on a new house, or paying extra on your consumer debt, these six terms should be understood and applied when it comes to finding the best “location, location, location” of your hard-earned money!

And for most homeowners in America, more of your money will flow through your house than will flow through any other investments. This means how you manage the location of your money when it comes to your house (i.e. down payment, extra principle reductions, home equity, amount borrowed, etc.) is critical in achieving financial safety and abundance!

About Trevor Hammond

Since 1998, Trevor Hammond has helped thousands of families finance their homes and make smart decisions when it comes to their personal finances. Now, as a sought-after mortgage advisor, coach, speaker, and author, Trevor Hammond continues to focus on helping people enjoy more money, less stress, and more life. As the co-author of Borrow Smart, Repay Smart and his 2018 follow up book, Mortgages, Money and Life, Trevor has created unique financial coaching programs and spoken in front of thousands of people on his book concepts ranging from improving cash flow and savings, managing liabilities, to advanced real estate financing strategies for homeowners. His passion for providing financial education and his ability to innovate unique processes that help both clients and originators excel, has led Trevor to become a top producer and build a #1 branch in the country for mortgage lending company Sierra Pacific Mortgage. Whether Trevor is speaking to hundreds of people from the stage, working on his next book or mentoring a Loan Officer one-on-one as a High Trust™ Leader, he is pursuing his greatest passion of all: Coaching.
This entry was posted in Location. Bookmark the permalink.

1 Response to The New Location, Location, Location

  1. Pingback: The Three Considerations for Making All Investment Decisions | Aspire Mortgage Group

Leave a Reply