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. Ninety percent of all millionaires do so through real estate. More money has been made on real estate than on all industrial investments combined.
Today's wise or salaried young man invests his money in real estate. The overwhelming majority of millionaires own real estate, making it by far the most popular alternative asset class. That includes your own home, second homes, investment properties, and fractional ownership of investment properties through partners or programs such as Arrived Homes and Roofstock One. According to billionaire Andrew Carnegie, 90% of all millionaires reach that level of wealth through investment in real estate.
He also stated that “more money has been made in real estate than in all industrial investments combined. 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. You'll also find that others want to invest with you after you have a profitable history in real estate. If you run a business, own your residence, or even already have a tenant, you're already more advanced in real estate investment than many Americans.
Changing homes is notoriously fickle, and not many real estate billionaires did it for long, or even did. This 7-lesson course will prepare you to start investing in your multi-million dollar real estate portfolio. If you invest according to the mission of the Goddesses of Real Estate Investors, you can help others and be more than rewarded. More than a third (35%) of millionaires take it even further, investing in REITs such as Streitwise and Fundrise to add additional classes of real estate, beyond their own home and investment properties.
For these real estate billionaires, the type of real estate investment wasn't as important as starting, doing it right, and increasing profits with new investments. Sure, neighborhoods can change in value, but unless you sell at the wrong time or ask for too much equity on your property, it's hard to lose money from your real estate investment. Just to be clear, when I talk about real estate investments, I'm not talking about buying a house to live in. While many real estate billionaires grew rich with residential real estate, many of them used office space to make themselves rich.
As history has shown, real estate can be especially rewarding for those starting at a young age. Cross added: “My advice would be to invest in residential properties that generate rental income throughout the year if you want the best and most reliable return on investment.