Building Your Net Worth with Real Estate

Building your Phil Pustejovsky Net Worth through real estate investing is best done by owning rental property. Purchasing property for the long term is a fantastic way to build your net worth because you have multiple streams of wealth creation. The property may appreciate, the mortgage balance will decrease with each loan payment, the rental income is extremely tax advantaged and if/when you ever decide to sell, so long as you have owned it at least a year, you can perform a 1031 exchange and defer any capital gains taxes to the next piece of real property you purchase. Hypothetically you could keep 1031 exchanging from one property to another so that you never actually pay capital gains taxes on your real estate.

The drawback of investing with the goal of growing your net worth is that you don't obtain immediate cash for your efforts. It's delayed gratification. You look good on paper but you may cash poor. The reality is that its hard to have your cake and eat it too with net worth building. Legends like Warren Buffett drew a tiny salary for decades, lived very frugally and poured all his energies into growing his net worth. Freedom Mentor He is famous for saying that his favors an investment strategy of holding assets forever; buying and not ever selling. He's one of the wealthiest people in the world right now. In other words, his plan worked.

Another hidden drawback on your path to building a huge net worth through real estate investing is that owning rental property can cost you a ton of money out of your pocket year after year if you are not careful. That's why buying wisely and only choosing to be a landlord on deals that cashflow very well is so critical. The deal has to generate enough positive cashflow that if problems occur such as eviction, maintenance or natural disasters, you have the vault of emergency money to cover the problems. Freedom Mentor Reviews and Phil Pustejovsky Reviews can be found here. Owning a rental property for 5 years and having no positive benefit to show for it is quite frustrating. I've learned this lesson the hard way. Therefore, you are better off buying less but buying better deals in order to build your net worth. It's not how many properties you own in your portfolio, instead, it is how well the properties you do own are building your net worth.