8/10 millionaires surveyed found their wealth in Real Estate.
What that means is an overwhelming proportion of people we’d like to emulate and achieve the results they got, (A million dollars or more) did it trading Real Estate.
But logic tells us that many people own real estate. They all have dealt in Real Estate in one way or another and they are NOT millionaires. They arent even comfortable, sure they have a large asset they are working to pay off, but they are definitely not financially comfortable.
The question bears investigating. What do these millionaires do with real estate that thousands and thousands of people don’t?
I can tell you they didnt do what the average family does. They dont buy the family home and toil for a life time to pay it back, then wonder about the next purchase in their twilight years.
Today, there are many investors. So the average family is getting a bit more ambitious. They recognize that toiling for a life time, they will be left with little. Just one home.
So they buy rental properties to ride the inevitable capital gains that will yeild over the next 30 years of ownership.
The idea is to own for example 5 properties plus their home, that they paid 100k for. The loans are interest only so the tennant almost pays for the repayments. That means for a small weekly amount they may lay claim to the capital gains in the future. Say for example in 20 years, the properties appreciate to a higher value, say 500k each.
Now they can sell one property, at 500k pay back the 100k on that house and have left over 400k to pay out the loans on all four properties that remain. Leaving them asset rich. 4 properties at 600k equals 2.4 million dollars. Not bad.
You know shadowdncer you are correct. It just like it takes forever to get there if you didn’t inherit anything. Credit, building relationships, having assests. Yes, that is the way to do it but it takes time and patience…
I know for a fact it can be done in 2 years or less I have done it!
Also keep in fact this statistic 9 out of 10 Bankruptcies include at least 1 or more real estate properties!
That being said I would like to share with everyone that I made my first million in REI in less the two years! I have been in this for longer then 10. And have 13 other successful millionaires that made it all in REI in my direct investing circle. This can be done it is not difficult.
The key is to come up with a plan and go with it. If you were to read everything out there it will only confuse you!
May not be the right time to get started though. I heard on the news last night not many people buying because of interest rates rising. If you have already bought, might not be so bad, might be easier to rent.
Horsehockey pucks! Do you think most investors make their money in the good times, or the bad? Knowledge makes all the difference.
Is this the time for speculators to stop buying on the premise that they can pay any price and it doesn’t matter because RE is “hot” and goes up, up, up? The time to stop doing that is before you even start.
For INVESTORS, however-- we make money in all markets.