I'm going to, once and for all, bust the myth on wealth and real estate. It has been promoted time and time again that you can make riches investing in real estate. This is very true. However when you look at exactly how this is done, it is not through constant flipping of homes. It can bring in a lot of cash, but the way to grow long term wealth investing in real estate is long term buy & hold.
When you look at the wealthy 1% in our country they are business owners and real estate investors. They invested money earned from their businesses into buy and hold properties. Over the years their tenants paid down the mortgage as the house appreciated. Their cash producing business sustained the investments during vacancies, down markets and maintenance issues.
You should only invest in buy and hold if you have a cash producing business or have hefty cash reserves. This will ease your investing experience and help grow your long term wealth. This is where your money is working hard for you and you are not working hard for it. You can start off by investing in cash only real estate such as short sales, wholesales and fix 'n' flips and then start investing in buy and hold. Any cash producing business will work, but don't invest in buy and hold until you are ready. Even then, set aside cash reserves for every property your entity controls.
I love my cash producing business of direct sales. It pays 50% and 59% every time I provide our opportunity of assisting others in building their wealth through real estate investing. This money allows me to invest in the long term buy and holds and my money starts working hard for me. When I choose to retire I will be financially able to do so without an worries.
Thank you goes out to my mentors and educators for providing this amazing opportunity for everyone!
Happy Investing!
Tony
