By enlarge the quickest way to potentially build wealth (become a millionaire)
Why is that? Features of real estate:
Leverage makes it easier to create wealth without investing wealthy portions of money up front. In other words, if you do not have money, it is almost impossible to become wealthy without leverage. Leverage is behind every rags to riches story. Most of the time, the leverage involved financial leveraging, and in all cases the leverage of some resource or another, usually a combination of the two.
Leverage allows me to control "alot" of value or property with a little bit of money, simply put. A $200,000 investment can own up to $1,500,000 valued in real estate or more. If you do that, and that investment grows at a very small 4% rate annually, compounded over 5 years you'd end up with $1,843,000. Without getting too technical, that is $343,000 in profit on a $200,000 investment. That's about a return of 171% over 5 years, annualized return of 34.2%.
In short, that is the power of leverage and why it is vital for wealth creation.
Supply and demand. There are only so many livable and workable fully developed areas where people can reside and work. Further more, housing of all kinds will be further desired the more population grows.
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NV DRE EXP Realty Lic # S.38886 | NV DRE S.0201163 | Emomrtgage Capital NMMLS ID 01986350 | Individual NMLS ID 866511 |