Real Estate Investing Is For the POOR!
There are literally millions of people that have became millionaires by investing in real estate and a large amount were in the poor house before starting. Real estate is kind to people without large chunks of capital to invest and even caters to them. What other avenue of investing can say that? Whether it be stocks, bonds,antiquities, or even precious metals - there is nothing comparable to the rate of return that real estate can provide.
Interestingly enough, there are people out there that are begging you to take their money and invest it - ever heard of a mortgage company? By owning a home, you are getting a return on the money that you pay to the mortgage company, this is the appreciation of the property, which is about 6% nationally and also the equity that you build up by paying down your loan.
If you were living in a $300,000 dollar house and the guy next door went to the bank and invested $300,000 dollars of his own cash in a money market account getting 5% interest for 5 years - in that 5 years, you would have made more money off your house than he did on his investment. The reason you made more is because you might have invested $10-20,000 to buy the house, but with that money you were controlling $300,000 worth of of real estate. The other guy had to use his whole $300,000 to get the same rate of return as you did. The real difference is that he had to use his own money and you used someone else’s, your mortgage company!
Even though most people don’t have thousands of dollars lying around, when buying real estate you are essentially getting between a 3-5% rate of return on whatever your house is worth. So, next time you think that you need to have money to make money, think again!