Making Your First Million with Real Estate Investing
More than 90% of millionaires make their money with real estate. One of the main goals that people have when entering the world of real estate is becoming millionaires.
If you strategize and do things correctly, that first million could come pretty quickly. Once you have it, you need to multiply it.
Self-Made Real Estate Millionaires
There are almost 19 million millionaires in America according to the Credit Suisse Global Wealth study back in 2019. Compared to China, which takes second place to the U.S., that is almost four times as many millionaires. In fact, 40% of the world’s millionaires reside in the United States.
There are millions of self-made millionaires that we could name, though a few that come to mind include:
- Sam Zell
- Ray Kroc
- Stephen Ross
- Jorge Perez
Making Money In Real Estate
There are a few ways to make money in real estate. Different strategies work for different people and some progress through specific categories as they continue to build experience and capital.
Some of the top ways to make money in real estate include:
- House Flipping
- Private Lending
- Owning Income-Producing Rental Properties
Understanding Real Estate Wholesaling
People often use the term “flipping” when discussing the topic of wholesaling or house rehabilitation. When we think about wholesaling, we’re thinking about assigning contracts and selling contracts for profit. This is done with every doing any renovations or taking ownership.
Making Your First Real Estate Million
Get Your Money
First, you should talk to a mortgage broker. They can help you assess your current real estate equity, which can be tapped into to make investments. You can create tax deductions on your interest if you have equity in your primary residence. If you have other property or assets, they can enable you to become a cash buyer when you use them as collateral.
There is the idea of “joint ventures” too. In this scenario, you find people that have money, though don’t want to spend any time or energy seeking out, negotiating, and managing deals. Partner with these people and use their money to work your own deals.
Lastly, you can consider financing your deals with private lenders. This method can be quick and painless if you don’t want to work with traditional banks.
Seek Out Opportunity
It is important to have a strategy when seeking out opportunities.
For example, one of the top things that investors look for on the market is job growth. When jobs increase in one place, the population increases. This means that vacancies begin to decline and rental rates begin to skyrocket.
For investors, this means increased property prices.
One of the best ways to learn about real estate is to dive in headfirst. The market is wavering. You will never be able to figure it out perfectly. The longer you wait to hop in, the more opportunities pass you by.
Don’t become paralyzed. If you don’t do any deals, you can’t make any money.
Make sure to get in contact with us here at National Cash Offer if you have any other questions about wholesaling or real estate.