If you do a study of how the rich people make or invest their money then you will find that almost all rich people have either made their money in real estate or they keep their money in real estate. In Warren Buffet, the world's greatest stock investor has a huge real estate portfolio. Real estate can be one of the easiest investment vehicles for becoming rich. I want to show you the basics of how to get rich in real estate.
Let me just say straight up that there is more than one way to skin a cat. There is more than one way that you can make money in real estate. There are thousands of people becoming millionaires with different investment strategies. Some people buy old houses, renovate them and sell them. Some people buy land, develop it and sell it. Some people subdivide land, some people build skyscrapers, some people buy and hold. I am not going to go through every strategy, but I am going to go through a strategy that I believe anyone can use to become rich.
I am not a financial advisor and this article should not be taken as personal financial advice. Everyone's situation is different and thus they should invest differently. This article is created purely to educate you in how you can become rich through real estate.
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hear the terms 'positively geared' and ' negatively geared'. Positively geared property makes more money in rent than all the expenses combined, this means every month you are putting money in your pocket. Negatively geared property means that you have more expenses than rental income and thus it costs you money each month. People negatively gear property because they hope to make money from capital gains when the property is sold.
The reason most people fail to get rich from real estate is that they try to make money from negatively geared property where they lose money each month. Now there is a lot of money to be made in the area if you are experienced, but most people do not have the experience to get rich using this method. Investors are limited to the number of negatively geared properties they can buy because they only have so much available income to fund these so called investments. This means the most properties people can buy is 2-3.
However, there is a much easier way to invest in property that is much safer and that will allow anyone to become rich and financially free. Positively geared property is harder to find than other properties because anyone can find an investment that loses money, but not everyone can find an investment that makes them money. There are a number of reasons that getting rich through positively geared property is easy. If you want to get rich in real estate then read this.