| Forum | Contacts | Articles | Partners | Photo | ||
Best photo: ESTATE Act as if it were impossible to fail.—DOROTHEA BRANDE Real Estate: The Best Wealth Builder in the Universe Why is real estate investing the best wealth builder in the universe? The answer is simple: Everyone needs a place to live, and real estate values usually go up over time. I can assure you that, in the next 20years, your real estate property will probably double, triple, perhaps even quadruple in value. If you are in a hot market, it might even go up 10 to 20 times. When is the time to get into real estate investing? Yesterday. Real estate increases its value to build wealth, but there are other reasons why real estate investing, compared with any other investing, is the best. Income, Wealth, and Advantages Here are five advantages of investing in real estate, the best wealth builder in the universe, as it leads to wealth for you. 1. Real estate increases your net worth. One of real estate’s biggest advantages is how it can increase your net worth instantly because you can buy property below market value. For example, if you find a property that is worth $500,000 and a motivated seller who is willing tolet it go for $300,000, you put it under contract for $300,000 (about 60 percent of its worth), then borrow all $300,000, close the deal, and become the owner of this property. You borrowed all of the money to make this happen; you did not use your own. The minute you own this property, your bank and your financial statement say you have an asset worth $500,000 and a $300,000 loan against it. Congratulations. Your net worth just went up $200,000. Here is a more conservative example. In my first real estate deal, I bought a duplex that was worth $60,000 for $40,000— not a home-run deal, certainly not a grand slam—but as soon as I bought the duplex, my net worth went up $20,000. Property value ($60,000) minus property cost ($40,000) equals gain in net worth ($20,000). This concept is hard for most AmericansPages: [1] 2 3 4 Updates: Buying and HoldingMost people associate real estate investing with buying and holdingAct as if it were impossible to fail.Overnight SuccessesFresh news: © Copyright 2009 - Real Estate |
||