Real Estate Investing Basics

This Is the Best Way to Become A Millionaire Through Real Estate Investing

Expertise: Real Estate Investing Basics, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Landlording & Rental Properties, Business Management, Personal Development, Flipping Houses, Commercial Real Estate
152 Articles Written
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Who wants to be a millionaire? And who wants to do it through real estate investing?

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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.

Related: How to Become a Millionaire: The Ultimate Guide

How to Become a Millionaire Through Real Estate Investing

Should you fix and flip? You could. Should you wholesale? Maybe.

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 where I explain why the real thing that’s going to generate a lot of wealth is buying property and holding it long-term.

Do you agree with my opinion? 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. 

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, is a developer and owner of commercial and residential property with a mission to “transform lives through real estate." Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to owning and managing over 370 units of residential and commercial assets throughout the east coast. DeRosa has completed over $30 million in real estate transactions involving private capital including fix and flips, single family home rentals, mixed use buildings, apartment buildings, office buildings, and tax lien investments. Matt Faircloth is the author of Raising Private Capital, has been featured on the BiggerPockets Podcast, and regularly contributes to BiggerPockets’s Facebook Live sessions and educational webinars.

    Jerry Maze flipper_rehabber from Portage, MI
    Replied 9 months ago
    Right on! I’m new to real estate investing although from 1996-2008 I was a Realtor with Re/Max… Collecting commission checks doesn’t make you a millionaire either… The strategy I’m using right now is wholesale to get some cash flow similar to Realtor fees, transition to a flip or two once the money is available to buy and rehab, then start reinvesting profits from these activities to build real wealth through buy & hold! Long term is having enough doors to cash flow passive income after paying for other team players to manage the day to day! I’m hoping it can be done between 5 & 10 years! Is that possible in your view?
    Rob Cook from Powell, Wyoming
    Replied 9 months ago
    Jerry, I had a similar background, and was a ReMax agent in the late 90s too. Helped a lot of more established investors get rich, as their agent. That opened my eyes too. I think to answer your question of Matt, it all depends. How much income and savings can you generate and how fast? How well will you execute on finding/making good deals, how good and how many in what time frame? How well will you manage your investments? How lucky will you be in selling flips fast and at high prices and will appreciation make you a hero and how fast? I would suggest the main thing to keep in mind, is to not make a mistake. You cannot afford a setback in the early phase of wealth generation. Better to go slow and careful and be extremely selective of your deals, than to rush in and lose your nest egg, confidence and momentum. It will snowball over time if you don’t screw up pushing it carelessly. Good luck!
    Rob Cook from Powell, Wyoming
    Replied 9 months ago
    Outstanding summary Matt! I was just schooling my 30 year old #2 son on this subject, and sent this article/link to him. I could not have said it any better! And it is 100% what I have done over the last 40 years, part-time, and have made over $1Mil on a single house in the process (I have over 50 rental units). “Get rich slow, but for sure” is what I call long term rentals. We can minimize the risks in small residential rental investing so much that can be that certain. Keep up the great work, I have been following your growth as an investor and especially as a teacher and contributor here, and you are a “good one.” I hope people appreciate what you offer us all.
    Rob Cook from Powell, Wyoming
    Replied 9 months ago
    Outstanding summary Matt! I was just schooling my 30 year old #2 son on this subject, and sent this article/link to him. I could not have said it any better! And it is 100% what I have done over the last 40 years, part-time, and have made over $1Mil on a single house in the process (I have over 50 rental units). “Get rich slow, but for sure” is what I call long term rentals. We can minimize the risks in small residential rental investing so much that can be that certain. Keep up the great work, I have been following your growth as an investor and especially as a teacher and contributor here, and you are a “good one.” I hope people appreciate what you offer us all.
    Rob Cook from Powell, Wyoming
    Replied 9 months ago
    Outstanding summary Matt! I was just schooling my 30 year old #2 son on this subject, and sent this article/link to him. I could not have said it any better! And it is 100% what I have done over the last 40 years, part-time, and have made over $1Mil on a single house in the process (I have over 50 rental units). “Get rich slow, but for sure” is what I call long term rentals. We can minimize the risks in small residential rental investing so much that can be that certain. Keep up the great work, I have been following your growth as an investor and especially as a teacher and contributor here, and you are a “good one.” I hope people appreciate what you offer us all.
    Nathan G. real_estate_broker from Cody, WY
    Replied 9 months ago
    Well done, Matt!
    Peter S. rental_property_investor from Denver, CO
    Replied 9 months ago
    Can these be transcribed? I’d much rather read this than watch.
    Nathan Richmond rental_property_investor from Visalia, CA
    Replied 9 months ago
    Amen to that!
    Patrick Caldwell investor from Dallas, TX
    Replied 9 months ago
    I second this. Almost any time I bother to watch one of these video-only posts, it’s 30 minutes of fluff to deliver what could have been a three-minute read. No thanks.
    Christopher Smith investor from brentwood, california
    Replied 9 months ago
    Im lazy I like to watch, it’s part of my passive strategy
    Joe J. rental_property_investor from West Lafayette, IN
    Replied 9 months ago
    Agreed. I’m actually reading the comments but didn’t watch the video; I never watch the videos. Written is better.
    Randall W. appraiser from Clovis, CA
    Replied 9 months ago
    Good concise video Matt. And so true, flipping and wholesaling is running a business. You can get “rich” and become a millionaire from any profitable business assuming you are disciplined to do so, but you will always be trading time for money. Investing in real estate (and other investments) is THE way to long-term, sustainable wealth.
    Diane Menke contractor from Flourtown, PA
    Replied 9 months ago
    Thanks Matt, This is the program we are running now, we are growing our stake $ by doing fix and flips and by saving $ from paychecks my other business pays me. In the meantime we pick up only very good buy and hold properties to build our long term net worth. We buy these in good areas, at good prices, make good long lasting renovations to get top rents and top ARVs. I have found over the past years I need to be talking to many more people in various areas (sourcing RE and sourcing $) to find the quality and number of deals I need to make as we work to scale. The process is not as fast as I would like it to be. So it feels good hearing your thoughts on the subject. Thanks for posting. FYI I think you are well spoken and good on video so keep at it.
    Laura DelGuidice investor from Bayonne, New Jersey
    Replied 9 months ago
    I’ve been reading your posts and watching your videos for over a year now. Thanks for passing along your wealth of knowledge.