The term “real estate investment” can be intimidating. It brings about a vision of boisterous, powerful New York City tycoons. Does that sound like you? Probably not. Don’t count yourself out. Real estate investment can be practiced on a smaller scale and still set you up with prosperous retirement savings and better private wealth management.
Multiply Your Money through Real Estate Investment
One of the 12 main principles of infinite banking is “Multiply.” By that, we mean get your money working. Saving your money in an unmoving pile is not a practice we endorse. If you’ve invested your money, it’s being saved while also working for you. Investing in real estate is a great way to put your money to work.
Real estate investors look like you.
First, let’s bring your visual of a real estate investor closer to someone who looks like you. Owning one small home, renting it out, and using the rent to pay the mortgage makes a person a real estate investor. Also, owning one small apartment complex, renting the units out, and paying the property loan and fees with the rent makes a person a real estate investor.
The owner can manage the property or use extra income from a higher rent to employ a management company. At the end of the day, rent covers all expenses while also paying down debt and gaining a property asset for you. Once the mortgage is paid off, a part of the rent pays expenses, the rest goes in your pocket, and you own a piece of real estate.
Buying one or two pieces of property early in life and getting them paid off by retirement can form your entire retirement plan. It is important to consider periods of time that property may go without having residents which, before the mortgage is paid, will leave you paying an extra bill. After the mortgage is paid, you’ll be left without part of your income each month the property is empty. With proper savings and other investments, real estate investment can be a strong plan to get you investing.
Infinite Banking Doesn’t Have to Be Intimidating
Schedule a free 45-minute consultation to explore the investment options available to you at this point in your financial development. We want to equip you with the knowledge you need to build personal wealth and pass down intelligent decision-making practices to your children.
Join us on February 27th from 5:30 to 7 P.M. for an introduction to private family banking. We will be sharing the knowledge you need to get starting on the path to becoming your own banker.