How to Create Your Real Estate Empire?

Since forever real estate has been the road to getting rich and it still is. Today every person can go to a bank and get a mortgage. You don’t have to be high-born.

It is smart to invest in real estate because you can earn a lot of money by doing it. Maybe even you can become a millionaire.

The surprising fact is that over the last 200 years, 90% of the world’s millionaires have been created by real estate.

This fact makes the idea of building a real estate empire even more popular for entrepreneurs.

There are a lot of people who are investing in real estate, but only a couple of them can make a profit. Just like on a trade market with stock some people become incredibly rich, while others will lose all of their money.

Why Real Estate business is great?

There are plenty of reasons why the real estate business is great. You can double your money on long-term, steady income if you decide to rent, and it is a business that will never die. If you are considering investing in real estate read the following reasons and find out why this is a great idea.

With real estate you have plenty of options

Investing in real estate is great because you have more options than investing in stocks or bonds for example. With real estate, you are in control of the situation.

In other types of investments, your option is to keep or sell, but that is not the case with real estate. You can buy a property to rent it, sell it, add another house to the property, and etc. These are only a small number of your options if you decide to invest in real estate.

We all need a place to live

The demand for new properties is growing every year. When you buy a house there isn’t any risk like with other investments.

Also, you have an option to buy an apartment. The interest in apartments is growing at a fast rate. So if you decide to buy now you can sell it after a couple of years and make a profit. The return profit with real estate is guaranteed. Another bonus is that the population will continue to rise and so the real estate market.

Owning can make you rich

Owning a couple of real estates can make you rich. If you can put together the money to buy a simple studio, you can sell it a few years later with more value. After you double your money you can go on and buy a one-bedroom apartment, then a two-bedroom apartment, and the list goes on.

Buying the first real estate is crucial and can earn you a lot of money in the long term. Many people have become millionaires with real estate because the value of the property is always rising with time.

Advantages and Disadvantages of the Real Estate Business

Just like every investment, there are advantages and disadvantages when investing in real estate. Here are some of the pros and cons of investing in real estate.

Advantages

• Investing in real estate is easy to understand
• You have direct control of your property and you have the possibility to increase its overall value
• Real estate doesn’t decrease in value when there is inflation
• You can make a big profit if you buy the right property
• Real estate can be bought with debt and leveraged

Disadvantages

• Buying real estate is usually very expensive
• With real estate, you don’t have liquidity
• When you buy a property you need to maintain it

Pillars of Real Estate

Just like playing a video game, you build your real estate empire by buying one property at a time. Here are the four pillars you need to be aware of before building your real estate empire.

Property appreciation

The process when a property will gain value is called appreciation. Appreciation is not 100 percent certain, but on average there is more than 3% appreciation in real estate in the USA.

Another type of appreciation is so-called forced appreciation. This is when you improve the value of the property on your own by doing renovations.

Profit

This is the money you will earn from your property. The profit varies depending on the repairs and vacancies. So sometimes you will earn more profit, and sometimes less. Profit is the most important thing in real estate.

Tax benefits

There is a true saying that rich people are getting richer and it’s true. When owning a property in the USA you have some tax benefits. The USA is encouraging people to buy properties and start investing in real estate and as a reward, you will have fewer taxes to pay for.

Rent money

If you don’t have enough money and you want to buy a property you can get a loan (mortgage) from the bank. A great thing when buying real estate with a mortgage is to get a tenant in your place. This way your tenant will pay for your mortgage.

The real estate business is one of the best passive income businesses today.

Ways to Build Your Real Estate Empire

The fastest way to building your real estate empire is to follow the four pillars we showed you above in this article. Here are other key factors to speed up the process.

• Invest using a self-directed IRA LLC
• Don’t stop at one property and buy plenty of properties.
• Buy real estate properties with great potential for the future
• Bargain to get a better deal
• Bigger real estate can make you higher profits

So go out and start investing in real estate. Building an empire takes time, just be patient and the results will come.

We hope that this article helped you to get to know a little bit better the real estate business and how to invest in real estate. Who knows maybe even you can become a millionaire, or a billionaire one day.