It may not come as a surprise, but nearly 90 percent of people with ultra-high net worth earned and maintain their net worth by investing in real estate. It's true that some high-net-worth individuals invest more in real estate than others. Many sources explain that 90% of current millionaires earned their wealth by investing in real estate. And the reason is very simple: the rich invest there because it is safe, easy and profitable.
Trying to get started in real estate investment may seem like a distant ambition. However, with a little preparation and a little hard work, it can become a reality for anyone who wants it enough. Many experts recommend starting by buying a residential rental property. They appear to be more affordable than larger real estate investments and offer the potential for both positive cash flows and appreciation.
However, to be fruitful in real estate, you also need to have the right team of people on your side, eager to help you get the most out of every investment. Instead, UHNWIs understand the value of physical assets and allocate their money accordingly. Ultra-rich people invest in assets such as private and commercial real estate, land, gold and even works of art. Real estate remains a popular asset class in their portfolios to balance stock volatility.
While investing in these physical assets is important, they often scare away smaller investors due to a lack of liquidity and the higher investment price. The ultra-rich know this and set personal investment goals and long-term investment strategies before making investment decisions. Real estate billionaires don't get rich using the same static strategy for 60 years (although it can take 60 years to become a billionaire). If a real estate sector or geographical area suffers a severe blow, all of these stocks are unlikely to fall apart.
The common aspect between these three real-life investor stories is that each of them spent decades leveraging previous successful investments to increase their real estate wealth. In addition, while many people see money as a way to get something they want right now, investing in a home should be seen as a long-term investment that you can use as part of your retirement financial plan or increase your portfolio for the future. As with any and all forms of investment, it's best to start early with real estate so you can spend time on your part. While not all of the billionaires on the list started out poor or even earned their money exclusively in real estate, there are 24 real estate moguls on this year's Forbes 400 list who can serve as an inspiration to anyone thinking about investing in real estate.
Let's take a look at what some of the most advertised real estate investors are doing, and how two REITs, Equity Residential (0.82% EQR) and Prologis (PLD 0.12%), as well as Berkshire Hathaway (BRK). You'll also find that others want to invest with you after you have a profitable history in real estate. While there is no exact guarantee that all real estate investors will become billionaires or even millionaires, the stories are often common enough to illustrate how much potential real estate investment can hold. Others aren't enthusiastic about daily trading or online businesses, but most have in common that they invest in real estate.
Real estate investment legend Sam Zell isn't in the spotlight as much as before, but his REIT, Equity Residential, is still making moves. Half of investors surveyed by UBS in the second quarter believe that inflation will accelerate in the next 12 months, and a third of them plan to invest more in real estate to prevent it from eroding their wealth. Investing and acquiring real estate has helped ordinary people make a fortune everywhere in the country. .
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