A prudent real estate investment can turn anyone into a millionaire.
As opposed to investing in stocks and bonds, where marginal increases in value only mean a little added income, minor increases in the value of real estate can attract hundreds of thousands in returns.
While investors on stocks can only make money through appreciated value of their stocks and through dividends, the real estate industry allows for several creative ways of making money. In the real estate industry, you can make money through value appreciation, house rent, the selling of advertising space, renting out a garage space, or the addition of vending machines and laundry facilities into your property, among other ways.
Moreover, real estate is tangible, less complex to handle and allows investors to have supreme control over their investments.
Related: The Simple Action No One Does That Will Make You A Millionaire
So what rules should you follow in the hopes of becoming a millionaire through real estate investments?
6 Rules Necessary to Build a Real Estate Empire
Rule 1: Stop Preparing, Invest Now
Many people have what is called the “getting-ready-to-get-ready” syndrome.
They can take several years studying the market and consulting experts, waiting for the conditions to be better. This kind of strategy can make you lose out on exceptional opportunities. Potential real estate investors should know that there is no better time to invest in real estate property than now.
You must get started in order to learn the ropes better and to handle the prevailing conditions and challenges effectively. It is easier to eventually become a millionaire by investing now than it is to sit still and wait for the best time. Just get started.
Rule 2: Stop Timing the Market
There is no magic information you will get by your efforts to time the market. Nobody can predict with certainty what the market trends will be any time in the future.
Besides, market shocks affect even the most knowledgeable investors. Timing the market is like gambling, and you cannot be a millionaire real estate investor through gambling. Therefore, it is not prudent to keep your cash in the bank as you brood and wait for the best time to buy real estate property. Instead, just buy the property now and enjoy the cash that comes from it as you wait for any better opportunities to come by.
Rule 3: Do Not Follow the Crowd
There are no millionaires in the crowd. If you want to join a better class than that of the crowd, you must go the extra mile.
Prudent real estate investors will usually analyze their resources (money, knowledge and time), conduct market research to find places where they can easily invest and design investment strategies that best fit their needs. You must also remember that there is no silver bullet in real estate investing. Only your hard work, passion, persistence and commitment will turn your meager investments into multi-million dollar estates.
Therefore, you should get up to a start as soon as possible, generate leads, evaluate deals, submit offers, close deals and manage your exit strategy. With these steps, you will easily be on the road to the coveted millionaire’s class.
Related: How to Build a Real Estate Empire From the Ground Up
Rule 4: You Must Recognize That Debt Can Be Good
Except for those who are entering the real estate industry when they already have extreme wealth, all real estate investors should turn to lenders to take up money for investing and expanding their property portfolios. While consumer debt is usually bad and detestable, business debt is good because the borrowed money will be earning more returns than the rate at which the amount is borrowed.
Real estate investors become millionaires when they learn to take and use borrowed money repeatedly and responsibly.
Rule 5: Flee From the Desire for Immediate Gratification
Selling a home at a dream price can come with immense excitement and self-satisfaction.
Some investors are tempted to celebrate those glorious moments so lavishly, with expensive trips, luncheons, toys and other things they could never ordinarily afford. As a real estate investor, you must know that money is a vital tool that can turn around your fortunes quickly when used properly. Therefore, you should learn to spend wisely and to prioritize on re-investing your profits into real estate property as you keep your eyes fixed on being a millionaire.
Ignore all the temptations to spend on consumer items. Invest as much as you earn.
Rule 6: Stand on the Shoulders of Experts
Millionaires tap into the wisdom, experiences, time, skills and the efforts of professionals, agents and other real estate investors in order to make prudent decisions and steady gains. Therefore, you will need to hire the best minds to help you build your real estate empire.
As a real estate investor, learn to work with other people who can advise you, connect you with reliable contractors and property sellers and direct you to the best markets and opportunities.
What has stopped you from moving ahead in your real estate investing career? Which rules would you add to this list?
I’d love to hear from you in the comments section!
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