It’s not beyond your reach…
Investing in real estate is thought of by many as something that is exclusive to the wealthy, and the process can definitely be perceived as a very intimidating endeavor. While it is true that without the right guidance, real estate investment can be a challenge, I am here to tell you that it is by no-means something to shy away from. To the contrary, considering an investment in real estate can be the first step to providing the true wealth and security that most people desire… It is a well-known fact that the vast majority of wealthy individuals have either made, or are holding, a significant percentage of their fortunes in real estate. Studies consistently show that the nearly all of the individuals with a net worth in excess of $1 million, own investment property… In fact many of those that we recognize as the richest people in America and across the globe may be known for other things, but behind the scenes have substantial real estate portfolios… If you are thinking of Bill Gates, Jeff Bezos, and Ted Turner you are on the right track. Red Emmerson and his family are the largest landowners in the United States, with holdings in excess of 2.3 million acres. Their business, Sierra Pacific is known mostly for being a timber company, but in reality the wealth that they hold in the real estate itself is more significant than any other part of their fortune.
One of the things that allows for so much wealth to be built and sustained through real estate is the ability to leverage through financing. Being able to use only a small portion of one’s own money for the purchase of such a significant asset allows for scalability that does not exist in other investments. Yes, the fact that the majority of the money for many real estate purchases comes in the form of extremely long-term, fixed rate debt, makes it a very unique investment indeed. In fact, legendary real estate investor Grant Cardone has made the statement that the evidence of how good real estate is as an investment can be proven by the fact that banks will never lend anyone money to buy their own bank stock, but will always be willing to lend a qualified borrower money to buy cash flowing real estate…
The great news is that you don’t have to be a multi-millionaire to begin creating wealth by investing in real estate. By simply being willing to educate yourself about the possibilities, and by following that up with good planning, the right advice and some patience along the way, you can provide a tremendous future for yourself and your family. After all, the perceived “safe” investments of savings accounts and CD’s provide less than exciting returns (especially given the rapid pace of inflation) that make it impossible to even keep pace. Real estate on the other hand can and does provide consistent returns in excess of 5-10% before we even consider the tax benefits, long term appreciation and principal reduction that it offers.
Using someone else’s money to create a life of significance for yourself? While it almost sounds too good to be true, one look around at those who are living the type of a life you aspire to live will tell you that it is anything but…
Dan Bosch is a Realtor Associate with RE/MAX of Chico and the team leader for the Premier Professionals Real Estate Team... Dan specializes in residential and investment properties. He can be reached at (530) 896-9330 or via email at danbosch@sbcglobal.net. You can also follow him at @dan_bosch on Instagram