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...
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.~Andrew Carnegie
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:
1. Passive Cash Flow
Tenants pay rent. After expenses, what you have is monthly, recurring mostly passive cash flow. This is a benefit that helps millionaires expand their...
The Real Estate Investing Guide from $1 to $1 Million is available for a FREE DOWNLOAD that will show you 12 strategies you can take to get invested in real estate today regardless of your schedule or budget.
“Monick Halm opened my eyes to all the different ways of investing in real estate. I am now invested passively in 2 syndications and a performing note, with $2500 a month passive income, and now I don’t have any lazy money sitting in a savings account earning 0.01%.” — Bernardette Williams