There is an interesting quote attributed to Mark Twain. It illustrates the fact that investing in real estate is the key to building wealth. The quote goes this way: “Buy land. They are not making it anymore.”
The answer to the question in the title of this article is yes. One proof of this is Kathy Fettke, co-founder and co-CEO of Real Wealth Network. Fifteen years ago, she was completely unheard of in the real estate industry. Now, she is a successful real estate investor. Goldman Sachs included her in its list of the Top 100 Most Intriguing Entrepreneur.
Most people who buy real estate bet on the fact that the price of the land or property will go up. It is in the “buy side” of the process that they are able to build their wealth. They will buy real estate properties at below-market prices. Then they will sell them later at higher prices. In so doing, they reap high returns on their investments.
You can also make money in trading cattle, precious metals, stocks, and oil. However, they cannot compare to the higher returns that you can make on real estate investments. If you buy a real estate asset at below-market prices, you have wisely invested your money.
Real estate investors make big money by selling their assets. Inflation helps in the process. The prices of real estate properties do not depreciate. They always go up because of what Mark Twain said. Coupled with inflation which brings down the value of a dollar, you have a good formula for getting rich.
Remember, you are already ahead when you bought the asset at below-market prices. When the price of the real estate goes up, you can choose to sell the property at a higher price. As a result, you will earn more money than what you have paid for.
Buildings and houses run down and depreciate. They need to be renovated, repaired, or even replaced at some point. Land or real estate property cannot be replaced. It does not depreciate but appreciates in value through time.
The best way to invest in real estate is to study and understand the real estate market in your area. Look at the way the land is used. Are there office buildings, medical buildings, tenant buildings, rented apartments, car washes, and so forth?
Be aware of the land’s special types of properties, its geographic area, and anything that can affect its value as an investment. Always remember that you can make money only on the “buy side” of the process. That means the price of the land is below the price of other real estates with similar utility.
Yes, you can build your wealth by buying multiple real estate properties. Don’t be afraid to invest your money, time, and effort in real estate. It is the best way you can get rich and enjoy the fruits of your labor.