How to Build Wealth through Real Estate Investing?

By Grace

Want to know how to build wealth through real estate investing? Do you want to accumulate by buying real estate properties? Real estate investing is one great way to build wealth faster. Real estate investing is complicated but it can help you create great wealth. As the old saying goes, “if you want to get rich, build bricks”.

Building wealth through real estate require skills and time. Skills you should learn such as “house flipping”, “analyzing the potential of a property”, “leverage money investing in real estate property” and most of all “how can you manage cash flow when you are investing in real estate”.

Building wealth in real estate is not easy. It takes time to build wealth. Multi-millionaires and billionaires acquired their wealth after many decades. If you are reading this, that means you are interested to become super rich. Believe me, most rich people became so rich and getting richer day by day by buying things that appreciates value; and one good example of those things is “real estate property”.

How to Build Wealth through Real Estate Investing?

Some investors say it is better to invest money in a thing that you touch or see rather than investing money in paper assets. If you have the same thinking, you better start buying property as soon as you can because investment properties such as houses, lots whether it is commercial or agricultural land, your properties can be twice the value when you bought it after few years. If you luckily found cheap property that has the potential to sell high, then, you’re slowly getting wealthy. Keep on buying and selling property.

Compare to buying cars, real estate investing has a big difference. Try to buy a luxury car today worth $200,000 and sell it the moment you drive it. The car will depreciate its value while investment property appreciates.

How to Build Wealth through Real Estate Investing?

Image Credit: Ben Freedman On Creative Commons 2.0 via Flickr – Goldwater Estate

Wealthy People Invest in Land

Wealthy people invest in land. They buy as many lands as they can. Rich people became rich not just because they have lot of money at hand. They buy assets. They love to buy real estate properties. They patiently wait and in their mind, land will make them richer.

I remember what T Harv Eker said about investing in real estate. If you own a piece of land, someday that piece of land is the instrument that can make you wealthy. In my case, I bought two residential properties and I plan to sell them after 15 years.

Tips on How to Build Wealth through Real Estate Investing

Here are some of the ways I found useful if you want to build wealth through investing in real estate;

45 to 5% Interest Earn Over the Long Term

Residential properties do appreciates with an average of 4 percent to 5 percent a year over the long term. These interest rates can help you fight inflation. Through this interest rate you can also take advantage of compound interest.

Positive Cash Flow and Principal Pay-Down

2nd, You can build a good positive cash flow through renting real estate to tenants. Third, principal pay-down. According to SmartyCents.com, “When you have a mortgage on a property, part of the monthly mortgage payment (that you pay from your rent) goes toward the loan principal. Over time, the principal that gets paid off builds up equity in your property. When you sell, or if you ever refinance the property, you will collect that equity at the closing table.” (1)

Kemi Egan, post an article about the only one secret to creating wealth in real estate..“I’ve gone from being homeless to making deals worth millions, and I think there’s only one secret to creating wealth in real estate.”  (2) Take a look at the post and you learned important thing, I have learn “leveraging” from the post. Learn how can you use other people’s money when creating wealth in real estate investing.

Citations and Reference:

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Tips & Warnings:

If you want to succeed in building wealth through real estate, all you need to do before you begin is to get education. There are many companies that offer real estate investing seminars and coaching nowadays.

If you want to learn real estate investing faster, be a real estate agent first. Start selling property like residential houses, condominiums and lots. This way, you will get the skills required for free, you will learn how to prepare the documents needed and you will have the hands-on experience on how to really sell real estate property.

Thought of the Day:

Wealth is born of great savings habits.

Author: JONATHAN CLEMENTS, 

Do you know any other effective ways on how to build wealth through real estate investing? Did you experience house flipping? How many pieces of land do you have today? Do share some thoughts and opinions in the comment box below!

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