A quote that summed up to me the power of investing in real estate comes from Andrew Carnegie. Mr. Carnegie is rated as the third wealthiest individual in our modern economic era that goes back to the dawn of the industrial revolution in the 19th century. He advised that “Ninety percent of all millionaires become so through real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
His advice holds true for the 21st century. Ninety percent is a powerful number. It supports the notion that if you want to swing for the fences and hit a home run, then real estate is your answer. Contemplate the question that almost everyone asks themselves at one time or another: Do I want to use my good hard-earned money to live a great life? Do I want to retire with a level of freedom instead of being broke? In truth, I’m not sure if I ever heard anyone answer “No!” to those questions. When you take into consideration Andrew Carnegie’s time-honored admonition, then you should start thinking outside the box of the popular thinking of having only stocks and securities and take your real estate activity to the next level.
My passion for real estate is undeniable and comes from hard-earned experience. After more than 108,000 hours in real estate development and more than 100 deals, I learned that choosing real estate investing was vital for me. There is nothing like driving to the properties you own, being hands-on, walking through the commercial building you just acquired, touring the residential house recently built, and working to ensure that the property maintains stabilization and cash flow. These are all wonderful feelings.
I am not a psychologist, but there is something gratifying about having a physical acquisition for your investment. Many investments are nothing more to us than numbers on a spreadsheet or looking at our cellphone to see the real-time progress of what the stock market is doing during the day. I am not taking anything away from seeing your stock portfolio (hopefully) increasing daily, but it is still an abstract reality. Real estate, on the other hand, is tactile, and you can see, touch, and walk through your holdings. When you have that palpable attachment to your investment, it empowers you to think about how to improve that investment. You will take a more active interest than you would by putting your money is various managed funds.
I do always stress that like any investment, real estate is a calculated risk. However, it’s a no-brainer compared to trying to learn how to control investing in the stock market. The appeal to me was that I was getting weary of earning typical returns on my pre-real estate investments that ranged from 3 to 12 percent. I discovered that I could make a minimum of 30 percent to a 450 percent return on real estate investments. On occasion, I might even get a quick return of $100,000 to $250,000 by acquiring a property and then selling it. Generally, the constant cash flow from my real estate investments is my main goal in properties I acquire.
I want to create more believers who are committed to exploring real estate investment opportunities. If you accept the Law of Abundance as one of the laws of nature, we have no further to look than real estate. There are plenty of properties out there! All you have to do is look at your community or the surrounding area to discover ample opportunities for real estate investment.
Any investor – large or small – has ample properties to start putting his or her money into real estate. We must join hands and establish a structure for fulfillment so that ordinary individuals can establish investment platforms that benefit all. If most people continue to believe that they can’t invest outside of their current means, we will remain stagnant. If we can shift our paradigm and our minds to learn how to invest in real estate, then the sky is the limit.
Wouldn’t it be nice to break into the ninety percent club?
This is one of a series of articles based on my book, Modern Wealth Building Formula – How to Master Real Estate Investing. I have a passion for helping others secure their future. As the professionals say, “The best time to start is now!” Please follow me as I continue to give you insight and strategies for achieving your retirement dreams. We can do this together!