I read something interesting yesterday. It said that 90% of all millionaires got there by investing in real estate. Wow! I started thinking about whether or not I believed that, and I think I do. When I look back at the few investments I have ever made that turned out well, they were all real estate related.
The only "Income Property" I have ever directly owned was a townhome I purchased for my daughter to live in while she was in college. We owned it for a little over 3 years. My daughter rented out the other 2 rooms to fellow college students and she lived free and the property returned about $500 per month after expenses.
It was an easy way to keep from having to pay about $1,000 per month in rent for my daughter to have a place to live. Purchased for $175,000, we sold the townhome for $235,000. Not a bad return on this short term project.
I have a client who buys run down properties, fixes them up, and rents these homes. He makes about $9,000 per month on these properties. Not bad.
So, I really do believe that owning real estate can help folks build wealth. The key is having a trusted real estate agent help you find just the right property to fit your needs. If you are looking for an agent to help, give us a call at den Boer homes. We would love to talk to you about how real estate can fit into your wealth building program.