Building Generational Wealth with Real Estate
Collaborative Post
If you want to not only improve your own immediate and long-term financial future, but also secure your children and even their children’s financial future, then investing in real estate is undoubtedly one of the best ways to do it.
With that in mind, here are some top tips to help you leverage the power of real estate and build generational wealth and life the kind of life you really want to:
Don’t bite off more than you can chew
It can be tempting to purchase property after property in a bid to build a portfolio quickly, but this isn’t always the smartest move. Even if the mortgage quotes say you can absolutely afford to do so, it’s often better to focus on one project at a time, wait until you have a decent yield, and only then reinvest, especially when you’re just getting started. Once you know what you are doing and you have a decent reserve built up, then you can more aggressively start to acquire real estate.
Create a diverse portfolio
When it comes to investing in real estate, a lot of people play it safe by purchasing residential homes and then either renting them out or renovating and reselling them for a quick profit.
There’s absolutely nothing wrong with this, but if you really want to secure your future and build generational wealth, it is often a much better idea to diversify and invest in everything from commercial real estate to local fields which may be developed at a later date.
You never know what the property market is going to look like in the future, but if you have a diverse portfolio, there’s every chance that you’ll be able to build that generational wealth.
Consider investing in REITs
Real estate investment trusts are often a better way of building wealth while lowering your personal risk in the real estate world. Basically, they allow you to pool your money with other investors in order to acquire various, usually commercial, properties that you can then rent out or sell on for a share of the profits. The great thing about investing in real estate this way is that it is a long-term investment that is managed by a third party for you. obviously, you will still need to do your homework, but it is much easier to get it right and build wealth when you invest in this way.
I would also recommend looking into property stokvels because they tend to offer great returns as well.
Ride it out
Although real estate investment tends to be a steadier investment, there are still lots of peaks and troughs where acquisitions will lose and gain value. If you’re serious about building generational wealth, you need to be steady and you need to be willing to ride out those difficult times for greater gains in the future, You also need to know when it really does make sense to get rid of an asset, which is why hiring a competent financial adviser or mentor is always a good idea.
How do you feel about building generational wealth using real estate investing?
