Real Estate
Real estate investment is just one road you might take for wealth creation. How does investing in real estate compare to other roads to riches?Let's look at the wealth building strategies of four very different investors.Joan is into the stock market, but conservative by nature.
She has spent years building a portfolio of solid stocks that pay dividends. Those dividends are how she funds her retirement. Her stocks aren't exciting, but she can usually count on enough money coming in to be comfortable. Joan has been collecting dividend-paying stocks for many years.
Harold is living off the interest from some utilities, some government bonds and some corporate bonds. Of course, depending on risk, the returns are very different for each type, and they pay only the original premium or interest, without change over time.
While Joans' dividends might be increased (or decreased,) Harolds' interest will always be the same as it was when he bought the bonds.Betty is a trader. She plays (buys and sells quickly) the stock market and even does some option and futures trading to generate profits to fund her retirement.
Her nest egg is enough that she can usually build up some profit on the good trades to offset her mistakes (everyone makes some "mistakes." We never know in advance exactly what the market will do.) She plays more volatile stocks, so she doesn't think about dividends or interest.
Betty has to actively trade (trade frequently) in order to create income.Dave is a real estate investor. Over time, he has been building an inventory of rental homes, a couple of duplexes, and even one small six unit apartment project.
He works a few more hours every week than the others because he does his own hands-on management. Dave knows that even if the value of his properties temporarily decreases due to a turn-down in real estate values, his rents will keep coming in at the same rate.
Dave doesn't worry about the value of his properties going down in the short-term, because he isn't planning to sell; he plans to hold onto his wealth-generating real estate for a long, long time When his properties have paid for themselves, he will have even more income.And now, I'd like to invite you to determine your own destiny.
You, too, can build wealth with real estate, and I'd like to share the same straight-forward, no-nonsense, use-now strategies that I used to get started.
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