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Posted over 5 years ago

How Passive Investors Are Using The Compound Effect To Build Wealth

Normal 1581357247 Compound Interest

Every day on BP a new person posts about how they’re not sure how to get started.

Just start. The cost of waiting is simply too high.

But the sad truth is that most people don’t get started investing in real estate as early as they should.

And that hesitation is causing them a lot of wealth.

Because when you wait on the sidelines, you opt out of the greatest power known to mankind - the compound effect.

Did you know that if you took a single penny and doubled it every day...by Day 30 you would have $5,368,709.12?  

And by Day 31, well over $10 million.

A lot of flippers are able to double their money in one project.

Most apartment syndicators have target ROIs of 2x. Even if the hold time is 5 years per project, it’s still VERY attractive:

Assuming you invest $100K and reinvest at the end of each project…

  • NOW: $100K
  • Year 5: $200K
  • Year 10: $400K
  • Year 15: $800K
  • Year 20: $1.6 Million

Is that possible sitting on the sidelines or changing strategies every 6 months?

Nope.

Even with a recession, even with a deal that doesn't work as planned, the compound effect is working to your advantage.

It's how passive investors build true wealth.

When you remain focused and disciplined with your investments, the compound effect will come to your aid every time.



Comments (1)

  1. Nice Mark!

    "compound, compound, compound"