Can you really build wealth by investing in the real estate? The answer is a big YES! As a matter of fact, investing in real estate is one of the best ways to store wealth. Real estate will enable you to make money from various income streams such as the following:
Does investing in the real estate make you rich? The answer is yes! However, you need to make sure you are doing everything right for you to get the most of what real estate has to offer. Dean Graziosi is a guy who can help you understand real estate better. Dean Graziosi is a successful real estate investor. He was able to build a real estate empire from the ground up. Dean conducts real estate events to help those people who want to build wealth and plan to use real estate as a platform. Check out Dean’s Instagram account to know him more.
- Build equity on the very first day – If you purchase a property that is way below its market value and still in perfect shape, you will be able to buy equity in your purchase. Buying right is one of the best ways to make money in real estate.
- Leverage – now that you know how to make money in the real estate, the next step is to know how people get rich in real estate. The answer is leverage. If you put your money in the real estate, you can control a hundred thousand dollar property value with only 20% down payment. A property usually appreciates 5% every year. In other words, you are making $5,000 from $100,000 property value every single year. Remember that you only invested $20,000 and with the appreciation value, your return on investment is 25%. You won’t be able to find this kind of leverage in other investing platforms.
- Cash flow – An attractive aspect of real estate investing is being able to generate positive cash flow. If you have a rental property, you will be able to enjoy a passive income. If you find good tenants, they will be the one to pay for the property and at the same time make a modest profit every single month. With real estate, you get to invest in a property that pays you every month. Now, that’s the key to building wealth.
- Appreciation – Prices for hard assets like real estate continue to go up as time passes by. Real estate properties appreciate at 3% to 5% every year. Through leverage, you will be able to enjoy a high return. Leverage and appreciation are the keys to building lasting wealth.
- Depreciation – How can real estate investors benefit from depreciation? The government lets you write off 4% of the value of the real estate property every year for depreciation. This will enable you to shelter a percentage of your earning from tax.