Barbara Corcoran Reveals How She Saved $7,500 in 3 Months for Her First Real Estate Purchase
Written by
Heather Taylor
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Gary Dudak
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When she was 29 years old, real estate mogul and personal finance expert Barbara Corcoran was in the process of buying her first home with her first husband. In an episode of Bobbi Rebell’s podcast Financial Grownup, Corcoran recalled that the house had eight bedrooms, two guest cottages and a wet and a dry boathouse facing a lake.
There was a major barrier standing between Corcoran and the dream home, though: coming up with the $7,500 down payment. So how did she do it to make her first real estate purchase? Check it out.
Eating Chef Boyardee and Penny Pinching
To come up with the down payment, Corcoran told Rebell she and her husband started eating tomato noodles every night. “I think they were Chef Boyardee,” said Corcoran, adding that the couple ate it for lunch every day.
In addition to eating canned meals, Corcorcan said they saved every penny of what they were earning short of the rent paid for their studio apartment. Three months later, they had most of the down payment — but it still wasn’t quite enough money.
Getting Extra Time To Save the Down Payment
Corcoran said during the podcast there was an evening where she and her husband were out to dinner with the man who was selling this house to them. “He mentioned that his father wanted to close… which was scaring me to death because I still didn’t have enough money.”
However, there was an issue where the man said his father was reluctant to leave the house. At that moment, Corcoran volunteered an idea: He could let his father stay there, but as a trade, Corcoran and her husband would receive four months of extra time. This trade allowed Corcoran and her husband to completely save the $7,500 down payment.
No Money for Closing Costs
As the time approached to close on the house, Corcoran said they did not have money to pay for closing costs. Fortunately, this sweat-inducing moment was saved by the trade Corcoran had helped orchestrate.
The man who was selling them the home was so endeared to the couple for keeping his elderly father in the home that he paid for their closing costs.
What Happened to Their Dream Home?
Corcoran told Rebell the couple lived in the house for seven years. When she decided to leave her husband, he got the house.
When Rebell asked how Corcoran could let that happen, she said it was because she got the other property they were later able to buy — a one-bedroom apartment in the city.
“I sold that one-bedroom that I paid $80,000 for two years later for $250,000,” said Corcoran.
Two years after their divorce, Corcoran said her ex-husband sold the dream house they had paid $75,000 for … for $75,000. Point: Barbara.
When You Commit, Find a Way To Get There
Throughout the podcast, Corcoran emphasized the importance of her commitment to buying the house and not backing out of the commitment once she said she would do it.
“I’m a believer in always committing, throwing it out there and saying I’m going to do it. When you have that kind of pressure and you’ve publicly committed, you find a way to get there,” she said.
If she had asked for a couple of months to think about it, Corcoran said her rational side would have kicked in and reconsidered making the purchase. However, because she said she would do it, she was able to find a way to make it work.
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