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.

  1. “Owning made me rich.” Barbara Corcoran, founder of the Corcoran Group, judge on Shark Tank, and host of the Business Unusual podcast
    1. 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
    2. “Buying that tiny studio was the most important decision I made because it got me in the game.”
  2. “Residential properties can generate income year-round.” Bethanny Frankel, founder of Skinny Girl and B Strong
    1. Real estate is a great idea if one is in it for the long haul.
    2. Frankel recommends residential properties that can produce rental income year-round.
    3. She also recommends that one understands associated legal fees and that one is prepared for unexpected costs.
  3. “The right investment continues to appreciate.” Grant Cardone, sales expert and best-selling author
    1. Real estate is real. Cardone believes it’s always a good idea to invest money into real assets.
    2. Cardone generally buys multi-family properties in upscale locations that provide consistent cash flow
    3. He also prefers properties that have the potential for appreciation.
  4. “Buying is smarter than renting.” Peter Hernandez, president of Western Region with Douglas Elliman and founder/president of Teles Properties
    1. Hernandez says that real estate consistently increases in value over time and that it outperforms other investments.
    2. He believes it is always a good time to buy…real wealth is created by buying when everyone else is selling.
  5. “You get six-figure tax breaks.” Holly Parker, founder and CEO of Holly Parker Team with Douglas Elliman
    1. Parker says that the wealthiest people today collect properties the way people used to collect cars.
    2. Parker cites $250,000 deductions for individuals and $500,000 deductions for married couples on investment properties.
    3. “When you invest in your surroundings, you invest in yourself.”
  6. “It doesn’t tie up a lot of cash.” Dottie Herman, CEO of Douglas Elliman
    1. Herman says that real estate is a bankable asset that can always be leveraged.
    2. She believes that with interest rates as low as they are, “it’s like getting free money.”
  7. “Real estate offers unlimited options.” Daniel Lesniak, founder of Orange Line Living, broker with Keri Skull Team, coach and author
    1. 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.
    2. “Flexibility is one of the reasons it’s created more millionaires than any other asset class.”
  8. “Everyone always needs a place to live.” Peter Martinez, founder and CEO of Rockstar Capital and host of The Apartment Rockstar podcast
    1. Martinez believes that supply follows demand and that demand for real estate continues to rise.
    2. 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.
  9. “You can invest in land that produces income.” Marcello Arrambide, founder of Day trading Academy and co-founder of SpeedUpTrader
    1. Arrambide believes that businesses come and go but that we, generically, will always need land.
    2. He believes there is an inherent demand for land.

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