Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.
Real estate investment is one of the fastest and safest ways to build wealth and grow your net worth in this country.
Just to be clear, when I talk about real estate investing, I’m not talking about buying a home to live in. That sort of investment takes money out of your pocket every month. When I talk about real estate investing, I am talking about buying cash-flowing rental property that puts more money into your pocket.
There are 7 main reasons why 90% of millionaires are invested in real estate and why you should too:
Tenants pay rent. After expenses, what you have is monthly, recurring mostly passive cash flow. This is a benefit that helps millionaires...
I often hear people say that they feel more comfortable investing in the stock market or keeping their money in a bank account. To them, this choice feels safer and more reliable. But this is a myth. I believe that they say this because they have not done the work of comparing how money grows in different investments. So I’ve broken it down for you.
Let’s say you start with $50,000. Now if you put that money in a bank account, where it compounds at 1% interest, after 20 years you will have made a profit of $11,009.50.
Now let’s say you want to invest that money and you choose to invest that $50,000 in the stock market, which averages a 7% annual return on investment. So after 20 years compounding at 7% you will make a profit of $143,484.
Now let’s compare those two options to real estate investing. Let’s say you purchase five 3/2 single-family houses in Cleveland, OH for $50,000 down (20% of value - $250,000 total in assets). The average rent for that...