Outside of owning public equities or a thriving business, real estate is the number one way to create wealth, secure your future, and leave a legacy for your family. You shouldn’t buy real estate unless you’re trying to build assets.
Investing in real estate is all about leverage, but you have to do it right. That means having a plan, knowing the market, and buying the right properties. My job is to help plan, find, and facilitate.
With that said, you need a certain level of income and capital in DC to be able to play the game right. The US Capital has a great sprawl of homes, condos, and potential rehab/upgrades available. There are solid investment properties that can pay out 8 – 12% cash on cash. And, the area as a whole will likely see a rise of 5% a year for the next decade. All that adds up to a relatively high margin of safety.
Owning Versus Investing
Owning a house is a great emotional investment, but unless you are paying cash, the likelihood that any home even in the hottest market can outpace inflation is very low. A home to live in is a great store of savings, but to build wealth with real estate, you have to buy as an investor. That means, owning properties that you lease to tenants.
High cash on cash yield
plus capital appreciation
So that’s the strategy. 5% year over year means that every $1 of assets bought today will be worth $3 or more in 20 years, especially if you buy in the right area at the right price. For investors that means generating monthly income from renters while the asset appreciates. What this really means is building wealth faster, because every single $1 invested will be worth between $10, $12, maybe even $17 once fully paid off.
You have to be patient in real estate, and that’s where being an investor is a big advantage. Getting the right properties at the right price and then renting them to the right tenants is what I’m here for.
What you need is at least $500,000 to get in the game. With that I think it’s completely possible to earn between $35,000 and $55,000 a year after the mortgage in areas that will continue to give you a solid return on your money.
When you’re ready, let’s talk…