Beating Inflation & Creating Wealth Through Real Estate Investments
Everyone who’s looking to invest in property has the same question: how to identify a good real estate investment? I knew a lot of very smart, talented, and hardworking people when I was working in Silicon Valley all those years ago. These were my colleagues who were well paid but didn’t seem to have assets commensurate with their expertise and hard work. They also had this question when they saw me begin investing in real estate.
Savings, while a noble necessity, cannot build wealth the way real estate investments can. So can one actually get started? And how to identify a good real estate investment?
Real estate investments are easier than you think.
Buying homes and renting them out is what I decided to do and what I now advise investors to do. This earns a passive income and helps repay the mortgage. Over time, the property itself appreciates even as it earns tax benefits in the form of depreciation! And why stop at one home? Buy as many as you possibly can to make more and secure your financial future further. I have had many investors investing in multiple homes and later thanking me for it.
So the next questions would be: How to identify a good real estate investment? Where should you buy and what? My advice is to go for good quality, brand new, single-family homes in good neighborhoods. This is going to fetch you the best rents because this is what young families are looking for. Choose homes in the better suburbs of large metropolitan areas in the Sun Belt states because this is where the commercial activity is. This is where young professionals come in to work and live.
More particularly, the 30-year fixed-rate loan is the answer.
However, even more, important than all the advice that I speak about above, there is one golden rule to follow. Opt for the 30-year fixed-rate loan for your real estate investments. This loan is a gift that keeps giving. It is a secret that hides in plain sight. It is the one thing that helps you beat inflation simply because you have the option to repay it over 30 long years.
Think about what a nice avocado costs today and think about what it will cost in 20 or 25 years. Obviously, a lot more. But guess what is not going to cost more? Yes, your 30-year fixed-rate loan! As the years go by, those payments will become easier for you as an investor to repay. This is because inflation is literally eroding the value of that amount.
That is why this loan is so crucial to your plan for financial security and even luxury in your later years. All other factors pertaining to how to identify a good real estate investment are secondary. The most important thing is this loan. It is, in fact, the focal point of what we call our Remote Control Retirement Riches formula.
You can check out my podcast for more details. If you are ready to invest and create a prosperous future for yourself, join our Quarterly Expo, where experts in the field will tell you more about investing plans.
