Property

If You Want to Be a Real Estate Millionaire, It Starts with the Basics

Real estate is the most realistic way to become a millionaire, if not a billionaire! In the last 200 years, most millionaires have achieved their status through real estate. They focus on real estate investing, be that commercial, residential, or a mix of things.

There are many different ways to invest in real estate. People often lament that you need money to make money, but in real estate, you are taught to leverage yourself to get the deal. One of the first things individuals learn is that you don’t always need a real estate license to make money, depending on what you are doing, especially if you are buying real estate for yourself.

Real Estate

Wholesale

One trick that individuals are taught is to wholesale property. This is where an individual finds an owner who needs to get out of a property as soon as possible. Often, these properties need work. An individual who understands the market and connects with the seller can craft a contract to sell the property at a certain price. That person can then turn around and sell that contract to another person, pocketing a percentage of the home’s sale.  

Rehab

If bought at enough discount, wholesale real estate properties can make a great return on investment. There have been many shows that demonstrate how a successful rehab can make money. In real estate, you are taught to leverage investors’ cash and credit. If you have researched, made the proper calculations, purchased the right home and stayed within your allotted budget, your return can be quite substantial. 

Passive Income

After rehabbing a home, some sell it, but some keep it as an income property. By purchasing an income property, or several income properties, you can earn a passive income merely through the ownership and renting of a property. Once the mortgage, taxes, and property management services are paid on the property, and you rent the property for above and beyond the monthly expenses, you can pocket the excess as passive income.

With consumer prices over 9%, real estate is the only investment that seems to outpace inflation leaving you with a hard asset. With consumer prices up over 9%, real estate is the only investment that seems to outpace inflation, and leaves you with a hard asset. A good return on investment for a rental property is about 10%, but many individuals prefer 15%. In comparison, the stock market, on average, gives you a 7% ROI, while the bank rarely gives you more than 1%.

Pocket the Gains 

If you plan on selling your home, it may be worth transitioning your property into a rental. Or, if you do decide to sell, know what your tax benefits are. You would not have to pay capital gains tax on $250k or less for a single individual. For married individuals, this capital gain would be $500k or less. These funds can then be turned around and put into your next home or potentially applied to purchasing other properties.

Conclusion

This is just a brief overview of the potential avenues you can take to help grow your wealth through real estate investing. By further educating yourself on the possibilities and recognizing that it is through real estate that many individuals have found success and achieved their dreams of becoming millionaires, perhaps you will see that you have the same ability. 

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
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