It's proven to be a trustworthy vehicle for build wealth and becoming 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.
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.
You can purchase property for cash flow. You can buy, fix and flip. You can wholesale. You can BRRR Buy, Remodel, Rent, Refinance (cash out), Repeat. You can become a real estate agent. You can be a real estate investor and buy/sell with owner financing. You can utilize real estate for the deductions and write offs and you can benefit by utilizing a combination of the above strategies.
Because of leverage, you can see multiples times your investment within a short few years. For the homebuyers that came in with 3-5% down prior to 2020 likely saw multiple times their money just a short few years later. Wholesalers and flippers are also known to cash big multiple 5 and 6 figure paychecks from a single transaction.
You can sell for cash, if it makes sense. You can 1031 and defer taxes. You can finance part of the transaction and turn equity (perhaps even existing debt) into monthly cash flow payments. You can lease option the property. You can pull cash out, rent or rent to own to a future buyer. You can raise capital and sell equity to pay off debt. You can syndicate and hypothecate.
Deals include: Owner financing, distressed/discounted
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