– You might hear it all the time. People who invest in real estate, are building long term wealth. Well, that’s true. Stay tuned today and I’ll tell you how. So, you probably hear it a lot. People are building wealth
through their real estate, and it’s no lie. People do build a lot of wealth, through holding onto real estate and having equity gain
in their properties. Now, there are a couple of ways that you can build wealth
through real estate. The first one is, if you do
have equity in your property, you can take out what’s called a HELOC, or a home equity line of credit. This is where you take out
money that is in your home, based on its appreciation. So, if you bought a home for $400,000, and it’s now worth $500,000,
you may be able to approach a bank who’s willing to lend
you $50,000, for example, that you can take out in
cash and would be paid off in the next x months based
on your terms with the bank, because you have that money in your home. So, if you were to sell your home, you’d be able to repay
the bank that money. Now, another way you can
invest in real estate to build wealth is to
invest in a future rental. So, you can think about buying real estate that you’re able to live in now, and then, after two years, using
it as a rental property. So, when you buy a property
that’s supposed to be your primary residence, you’re
required to live in it for two years before you actually
are able to either sell it or rent it out as an investment property. Now, this allows the bank to
give you the best interest rate on your primary residence,
because they know you’ll be living in it
for the first two years. The third way that you can
build wealth through real estate is thinking about buying real estate that’s available as a short term rental. So, maybe you’re in a vacation market, or maybe you’re in a city that’s
often visited by tourists. You can actually buy a property. Make sure you look at the restrictions on how the property can be used. But, you can buy that
property and then rent it out as a short term rental. And typically, if you get a great deal, you can cover the cost of your mortgage with that short term rental income, and start to build wealth
through owning a property where the mortgage is already being paid, and then you’re gaining equity
every year that you own it. Last and not least, is something we’ve talked about many times. You can house hack a
property to build wealth. So, you find that property
that you want to live in, that has multiple bedrooms. You live in one bedroom and
then you rent the other bedrooms out to other people, like your friends, or other renters that you might know. So, there are four ways that
you can build wealth through real estate in addition to
just holding onto real estate over time and gaining equity. It’s awesome to invest real
estate and be a homeowner, because you can build this
wealth over your lifetime. And, it really helps you in the long run, when you think about things like selling for your retirement, so that you have a great retirement fund,
or being able to cash out on a property that you’ve
owned for a long time and get a lot of money out of that place, because the market has
continued to appreciate. If you have any questions
about real estate, or investing to build wealth, don’t hesitate to reach out to me. You can comment on any of
my social media profiles, or send me a direct message. Don’t forget to subscribe
to my YouTube channel. And, we’re throwing a contest. If you share this video in the next week, from when it’s published,
you’ll be entered to win a $50 Amazon gift card
at the end of this month. You can find all the rules for the contest in the link below. So, I hope you’ll share
it with anyone you know. I’d love for you to share this. Thanks for tuning in. See you next week.