Using Real Estate To Become a Millionaire
In the Real Estate market, there is the potential to make a huge amount of money if you educate yourself on the market and know when to buy and when to sell. I purchased my first real estate in 1986. I was twenty-five, single, and knew that at some point in my life I wanted to build a house to live in. My first real estate investment was a two acre cleared piece of land in a rural area that many of my friends lived. What was once mostly farmland had now become desirable residential properties.
I paid $17,000.00 for this land, and what I thought was going to be my new home someday, ended up being a great investment. Within six years from my purchase, I was married, had purchased a home, and decided that I would no longer need the land to build on. I had acquired my real estate license and sold the property for almost double what I had spent. Using “The Power of 72”, I received an 11% return on my investment, which made me very happy.
Next, I took the monies from the land, and purchased an investment property at the shore. The real estate market was down, and prices had been falling for a year. This is the best time to buy real estate. Many think the best time to buy a property is when the market is up. Just like the stock market, the best buys in Real Estate can be made when the market is low.
The property I purchased was rented for the summer and my wife and I could not have access until the fall. This disappointed us, but I was excited that we would be receiving the rental income for the summer, which was substantial. I took the rental income and applied it towards paying off my primary home. Within three years of purchasing my primary home, it was paid off. I still owed a mortgage on my investment property, so I started to pay that down also.
I rented the shore investment property for two more years and my wife and I decided that we were spending more time at the beach and this was where we wanted to liver permanently. We sold our primary home and made living at the beach a dream come true.
By 1998, our primary home was almost paid off and we decided to buy another property at the shore. The investment idea behind this was to purchase a property that we would allow us to open a business at the shore, but also have a few rental income units. The real estate market was just starting to pick up. Interest rates were about 9%, so we purchased a property that would allow me to chase a dream of being my own boss, and also have some rental income.
We owned and operated a business for three years and found that the market had skyrocketed to a point where we found we could make substantially more money by developing the business property than to run the business. We developed the business property, sold off one half, lived in the other side, and sold off our primary residence. By doing so, we made more money than I had my whole career. Just by investing in Real Estate.
Real Estate has been very good to me. With wise choices, real estate can get you to the “Millionaire” status and help you achieve your needs and goals!