If I would ask you, what do you hear when I say Real Estate investing? You might tell me buying a house and collecting rent. However, that is not exactly true because portfolio begin where multiple properties are working for you to generate income. So your first property is really, just the first steppingstone towards your portfolio. Once you have reached the portfolio stage. You are already generating large income and guaranteeing your future and wealth.
Why Real Estate works as an investment –
Real estate throughout the years has been the number one way of generating wealth, but that does not mean it’s a get rich quick scheme. It combines several financial tools and build overtime. These financial tools are cash flow, appreciation, leverage and inflammation protection. Cash flow is the money you receive according to your contract from your rentals. Appreciation is the increase of your assets in value through time. Leverage is using small amount of down payment in order to be able to buy larger worth valued assets. Inflation protection is your rent price rising with inflation. What most people don’t understand is majority of peoples buying power either stay the same or decrease even though their wage might increase, but Real Estate isn’t like that because you can set your own prices.
Reality beginners face –
Of course you will not be able to start with experience that will come through time, if you are starting with a good amount of capital that will really make you have a significant head start. Your lack of knowledge and inexperience might make you feel hesitant. You might try to wait for the perfect time. If you do that chances are you won’t progress as fast as you could that doesn’t mean rush into something you have to make adequate research and plan your moves. everything will fall into place as you actually get moving.
Portfolio thinking vs property thinking –
If you’re truly trying to build generational wealth, then do not think “can I buy this?” You must ask other questions such as “does this asset fit my long-term plan?” Long-term plans are everything once you get used to thinking even a few years ahead that will put you ahead of the market.
Remember a portfolio is built slowly through time not at speed in a few years
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