This is not for everyone, but one of the best ways of becoming a millionaire today, as it has been for fifty years, is in real estate. :yup:

I am a business grad with over forty years of business and investing experience. Based on what I know now, if I was starting over and had the goal of becoming a millionaire, I would definitely be in real estate. There are many advantages and different methods of becoming wealthy in real estate.

Real estate gives you a decided economic edge in accumulating wealth quicker when compared with other businesses. The advantages of real estate include:
1) it is a limited supply product;
2) if purchased correctly, real estate appreciates in value
3) real estate has big leverage - you control and get the appreciation on an entire property for a down payment of 5% to 10% of it's value;
4) there are special tax deductions which allow you to accumulate equity faster;
5) there are special tax avoidance and deferral methods that let you accumulate equity without paying taxes;
6) you have complete control of your investment unlike investing in bonds or corporate stock;
7) you can pyramid
8) you can earn a monthly rental income;
And there are other advantages, but that is all I can think of right now.

You may have heard the old saying about the easiest way to become a millionaire - Obtain a million dollars in mortaged properties and wait twenty years. This is not too far fetched an idea.

Don't get me wrong. I didn't say becoming wealthy in real estate would be easy. I said real estate has many advantages that can help you accumulate wealth quicker. Real estate just like any other business involves hard work.

Best, Al Z :)

Hi there Al Z - Great post.

This thread has given me a fresh perspective of real estate investing.

It's great having such an invaluable insight!

Do you invest in any international property? Or anywhere that you wouldn't normally go, if it weren't for the market there?

Or is you're local market just as predictable / volitile as any other market?

Cheers,
Andrew

Hi Andrew. Thank you mate for the kind words. I personally would NOT invest in real estate internationally. It's mainly a case of my not knowing enough about foreign real estate values, foreign real estate laws, foreign tax laws, currency devaluation possibilities, and other hurdles that I do not even know enough about to mention. Buying foreign real estate adds too many variables to the investing equation. It is much safer to buy real estate in local areas where you are familiar with the area and know real estate values and the potential for price appreciation based on a history of real estate values relative to other areas.

When asked for investment advice, Mark Twain once said:

"Buy land, I hear they aren't making it anymore."


Good advice! :thumb:

I would agree, it sure does seem as if real estate has been a tried and true money maker. I wish I could find an interest in it.

Hey Randy,

I'm not sure if you own or rent... but I became intregued by property when purchasing my first house. There's something pretty fun about it I find. It could be a form of that 'retail therapy' which women are affected by.:p

I like the way that Al referred to real-estate as being an investment vehicle. And like any area of investing your time & money (be it business, career, collection of assets or reduction of debt), this sort of freely & openly dispensed advice is earnt by a heap of experience.

"If you're going to walk through a mindfield, it's best to follow somebody" -Some guy off a tape?!??

This thread was posted by Al Z 10 months ago & I hope that it's resurrection get's some exposure to those who are keen about this kind knowledge.

"Gain Understanding, though it cost you all you have." - An old Jewish proverb

But this advice is free, courtesy of the vibe & Al! Pretty good cost:benefit ratio hey!!

Cheers,
Andrew

Hi Andrew. I do own my own house and I've really put some energy into looking into buying for investment, but I just don't get excited about it like some people do. Believe me, I personally know several people who have made a killing in real estate, so I know it's doable. I just don't, at this time, have the excitement about doing it that they seem to have.

What do you mean when you say you can pyramid?

Absolutely agreed. Real Estate, when invested in properly, can help you achieve your wealth goals. A great guide for first time investors is "The Millionaire Real Estate Investor" by Jay Papasan and Gary Keller. It's a no-nonsense, easy to read, easy to understand guide on how to determine what you personally should invest in and then how to go about finding and analyzing the properties so as to be sure they fit your selected criteria. I highly recommend it.