Andrew Carnegie once said that 90% of the millionaires he knew obtained their wealth by investing in real estate.
According to The Oracles, a mastermind group of the world’s leading entrepreneurs, Carnegie’s words ring true today. Here is what nine Oracles had to say about real estate and wealth.
- “Owning made me rich.” Barbara Corcoran, founder of the Corcoran Group, judge on Shark Tank, and host of the Business Unusual podcast
- Corcoran bought a tiny studio because she needed a place to live; the studio doubled in value; she put down 50% in cash for a one bedroom; rolled that into a two bedroom and then into a 3 bedroom and finally into a 10-room penthouse on 5th
- “Buying that tiny studio was the most important decision I made because it got me in the game.”
- “Residential properties can generate income year-round.” Bethanny Frankel, founder of Skinny Girl and B Strong
- Real estate is a great idea if one is in it for the long haul.
- Frankel recommends residential properties that can produce rental income year-round.
- She also recommends that one understands associated legal fees and that one is prepared for unexpected costs.
- “The right investment continues to appreciate.” Grant Cardone, sales expert and best-selling author
- Real estate is real. Cardone believes it’s always a good idea to invest money into real assets.
- Cardone generally buys multi-family properties in upscale locations that provide consistent cash flow
- He also prefers properties that have the potential for appreciation.
- “Buying is smarter than renting.” Peter Hernandez, president of Western Region with Douglas Elliman and founder/president of Teles Properties
- Hernandez says that real estate consistently increases in value over time and that it outperforms other investments.
- He believes it is always a good time to buy…real wealth is created by buying when everyone else is selling.
- “You get six-figure tax breaks.” Holly Parker, founder and CEO of Holly Parker Team with Douglas Elliman
- Parker says that the wealthiest people today collect properties the way people used to collect cars.
- Parker cites $250,000 deductions for individuals and $500,000 deductions for married couples on investment properties.
- “When you invest in your surroundings, you invest in yourself.”
- “It doesn’t tie up a lot of cash.” Dottie Herman, CEO of Douglas Elliman
- Herman says that real estate is a bankable asset that can always be leveraged.
- She believes that with interest rates as low as they are, “it’s like getting free money.”
- “Real estate offers unlimited options.” Daniel Lesniak, founder of Orange Line Living, broker with Keri Skull Team, coach and author
- Lesniak says that with stocks, one can only hold or sell but with real estate, one can buy and flip, rent, sell, refinance, rehab, rezone, subdivide, etc.
- “Flexibility is one of the reasons it’s created more millionaires than any other asset class.”
- “Everyone always needs a place to live.” Peter Martinez, founder and CEO of Rockstar Capital and host of The Apartment Rockstar podcast
- Martinez believes that supply follows demand and that demand for real estate continues to rise.
- He believes the market for multi-family properties is rising and that the more attractive those properties become, the less likely that people will buy.
- “You can invest in land that produces income.” Marcello Arrambide, founder of Day trading Academy and co-founder of SpeedUpTrader
- Arrambide believes that businesses come and go but that we, generically, will always need land.
- He believes there is an inherent demand for land.
Also read: https://timandjulieharris.com/2019/10/09/podcast-your-4th-quarter-massive-action-plan-tfw2020-part-3.html, https://timandjulieharris.com/2019/10/09/podcast-your-4th-quarter-massive-action-plan-tfw2020-part-3.html, https://timandjulieharris.com/2019/10/04/ultra-wealthy-battening-down-the-hatches.html
