Growing up, most of us looked up to successful people on TV or magazines, we loved hearing their stories and adored seeing all the good stuff they owned, while deep inside, hoping to reach their level one day. That’s when we first started questioning where millionaires were getting their money from. Building so much wealth seemed impossible, and it felt like we would never get a chance to turn our wishes into reality.
Thankfully, we are all grown up now, and it’s the year 2020, where an average person, without any unique talent, tremendous luck, or a bunch of lottery tickets, could work their way up to victory. You might be wondering how, so let’s dive deep into the mindset of millionaires today, and find out how they develop their wealth.
Millionaires pool their money from real estate.
Andrew Carnegie said – “90% of millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
Yes, the secret of millionaires is real estate investing. For example, as of May 2020, the average income of a real estate investor in the United States is nearly $124,000 a year, which is more than $10K a month!
However, I’m not sure that I can call it a secret as the benefits of the real estate world, had been known for ages. Wealthy people are smart. It’s not only about making as much money as possible for them, but they are also looking for the most beneficial ways of income, which is, in fact, the real estate.
Millionaires enjoy the benefits of real estate investing.
First of all, real estate is safe. No one wants to be wealthy for a couple of weeks. Intelligent people are looking for methods to become and STAY financially secure. And what is a more reliable way of doing so than the asset that will grow its value over time? I mean that owning a business is excellent, but nothing can assure you that it will be just as secure in a couple of years as humans keep evolving, and what we need today, might not be demanded tomorrow. So business owners of other fields are always under a risk.
However, what will permanently stay in demand is space for people to live, work, and study at. Real estate is undefeated when it comes to long-term, stable, and safe income, even during challenging times such as inflation.Although inflation frightens the business owners the most, real estate could be considered a great thing since the rental prices go up during the boom, meaning that real estate investors will be earning even more.
As Holly Parker said – “Real estate has incredible tax benefits. In certain situations, you don’t have to pay taxes on your gains from investment properties. You can also get a $250,000 tax break as an individual and $500,000 as a married couple.” Meaning that investors are earning a large amount of money and are getting tax benefits and save up much more than investors of any other field, which is a huge advantage when it comes to building wealth.
Millionaires only invest in cash-flow generating assets.
All the benefits you have just read sound very attractive. Yet, we should keep in mind that the real estate world is enormous and a lot depends on what sort of decisions you will make. For example, what are you investing for? Exactly, not just every type of investment can guarantee all of the above, and that’s why millionaires invest only in cash-flow generating assets.
Not only cash-flow generate your monthly profits to cover any of your expenses, but it also gives you a chance to expand your investment portfolio and diversify your investments. You should know by now that owning a single real estate house won’t be able to build enormous wealth we are talking about. You want to create various streams of income for yourself, which is all about continually reinvesting your capital, running multiple investments synchronically. That is how investing in cash-flow generating assets, such as multifamily property, can increase your wealth.
Conclusion:
The cash-flowing assets of real estate are the safest, fastest, and said – the best way to build wealth. From now on, we have no reason to doubt; we have discovered how wealthy people earn so much money and are free to follow their steps. Start thinking about investing today.
Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses from 2007 up to the present of experience in real estate investing and property management in the Memphis and Nashville markets.
CTTO Article Source: www.biggerpockets.com
