The Quickest Way to Wealth

Well I'll just get Straight to it...
My Belief is that Real Estate is the Quickest Way to Wealth

How did I come by that?
It wasn't easy or really apparent until recently. I've always read books on investing in Real Estate and thought it was great but it didn't really compute that it was the fastest (and surest) way to wealth until recently.

How so?
Well you can buy 1 house for $100,000 and have it appreciate to $150,000 very quickly.
You could also buy $100,000 in Stocks and bonds and they could raise to $150,000 very quickly.

YES... but here's the difference...
With Real Estate the most you'd have to come up with is $20,000 as a bank will usually lend you the rest and your risk is little.
With Stocks and Bonds you have to come up with most of that money and even if you buy on margin, your risk is super high (especially if you buy on margin).

With Real Estate you can have tenants make your mortgage payments for you.
With Stocks and Bonds you're on your own.

With Real Estate you can refinance and take out equity and invest in more Real Estate.
With Stocks and Bonds you can't really.

With Real Estate you can improve it's value by rezoning, refurbishing or even expanding on it.
With Stocks and Bonds you can't really.

I could go on, and on but I rest my case as I'm sure you get the point.

Some More Great Things About Real Estate
It's been said that everyone should own at least 2 properties (with mortgages paid off) at retirement, one to live in and the other to rent out. That's really sound advice with Social Security the way it is these days. If the average person did that we'd have a much happier world.

Well I'd take that a step further and say whenever one takes out a substantial student loan (for law or medical especially) they should also purchase a multi-family home as well and live in one section and rent out the rest. In 4 - 12 years the equity in the property should be enough to help greatly when the student loan becomes due.

Another thing people need to understand about Real Estate is that if it puts money into your pocket it's an asset... if it causes you a negative cash flow each and every month it's a liability.

So if you own and live in a single family home with no income coming in from it... it's a liability. But if you own and live in a Multi-family property with (positive cash flow) rental income coming in from it... it's an asset.

Well that's it for now!

Will write again soon,



S. A. Williams AKA sawnet [your RPM Millionaire]
http://www.RPMwealthClub.com
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