Who wants to be a millionaire? And who wants to do it through real estate investing?
I’m betting you do, and that’s why you’re here!
There’s a specific strategy that many investors have used to make millions in real estate, and I’m going to share it with you.
How to Become a Millionaire Through Real Estate Investing
But if you’re looking to grow your net worth to over a million dollars, the tried and true method most likely to get you there is to buy and hold. Sure, you might want to start with another method of investing. However, once you’ve got some capital, you really need to transition out of it.
Watch my video above or read on as I explain why the real thing that’s going to generate a lot of wealth is buying property and holding it long-term.
There’s nothing wrong with fix and flipping a place. There’s nothing wrong with wholesaling. And a lot of people that are just getting going in real estate and need to generate that seed capital for themselves so that they can go invest in deals and make their own passive income need to do things like wholesaling to get started. So that’s that’s fine if that’s what you want to do.
But I have yet to see a wholesaler that has a million in net worth it that got it by wholesaling.
You eventually need to transition into buy and hold real estate. Buy and hold real estate is the strategy that I’ve seen make the most millionaires in real estate—with regard to a million (at least) in net worth (as in net worth holdings of real estate just in equity). With a fix and flip, once you sell it, it goes away.
But a long-term rental produces checks for you once a month. And eventually, if you’ve got enough of them, you can have somebody else manage them for you. And the checks are just coming in the mail. After you’ve done this for a while and after you’ve built up the business systems that it takes to make it run on its own, then it becomes a passive activity.
So, bottom line, long-term rentals is the place to be. It will take a while to make it a passive business. And you need things like BiggerPockets and the BiggerPockets Calculators that are out there to help you evaluate long-term rental deals. You need to find which ones you think are going to create both the best long-term wealth for you and the most cash flow for yourself. Because it’s really all about cash flow, isn’t it?
Have a great and profitable week!
Do you think another investment strategy works better than buy and hold? Who’s your millionaire real estate hero, and how did he or she build their wealth?
Let’s discuss in the comment section below.