When it comes to acquiring wealth, achieving financial independence is a key component. How do you achieve financial independence? We all probably have a different definition or dream in our heads, but to keep it simple, it's when your passive income and your income from your portfolio, or investments, are greater than your expenses. The key to reaching this point is to start investing wisely and there is no better investment than real estate.
Many people choose to invest their money in the stock market. And while stocks can be a lucrative way to improving your financial situation, there is a better method. Stability is key, and stocks just can't hang with real estate. When you purchase real estate as an investment you can easily get more for your money.
One of the best reasons to invest in real estate is leverage. With stocks, $200,000 will buy you exactly $200,000 worth of stocks, no more, no less. However with real estate, that same $200,000 can easily buy you as much as $1,000,000 worth of property, leveraged and putting 20% down. If both of these investments increase in value by 10% you will have only a 10% return on your stock money and a 50% return on the money you invested in real estate!
How to build wealth in two easy steps:
Step 1 – Spend less than you make
Step 2 – Invest the difference of what you earn and spend
Set a goal of buying 1 investment property per year – then do it! Imagine owning 30 rental homes in 30 years worth millions of dollars! This is the way you build wealth. Let the tenants buy your real estate for you!
Note: When investing in Real Estate, always keep a supply of cash available for those rainy days.
To learn more about how you can start building wealth with real estate, contact The Bill & Ann Team today!
Call 972.723.3822, or email BillSteddum@JudgeFite.com or AnnWeaver@JudgeFite.com.
1 comments:
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