The Power of Real Estate to Create Millions

The 6 secret ways that real estate will make your fortunes

1. The Power of Leverage

Real estate is one of the most unique businesses you can start because your using OTM (other peoples money) to make you money. With just 20% down you can leverage 80% of other peoples money to make you money. Ex. You buy a $500,000 home with 20% down $100,000. With just 100k you’ve increased your net worth an additional 400k and now that 400k is working for you. There’s no other business that allows you to do this and continue to use other people money as you accumulate more properties.

2. BRRR

A common real estate strategy that investors use is called the BRRR method. This is when you BUY a distressed home in a good neighborhood, RENOVATE the home bring up the homes value, and then RENT it out and REPEAT. This strategy is used to accumulate homes at a discount and build your portfolio.

3. Flipping

On the other hand a faster yet less passive way of approaching real estate is flipping. Similar to the BRRR method this strategy involves you buying a distressed property, renovating it therefore increasing the value and then selling it at a profit. The trick is to find good contractors and do it as fast as timely as possible, due to the interest on the loan. If you do this strategy correct you can make a lot of money quickly, but you can also have a flip go wrong and lose a lot of money as well.

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