Wealth Creation is a skill that many people attempt to master. Many people attempt to create wealth through real estate investing, but fail to do so because they lack the knowledge needed to become successful.
A very simple wealth creation strategy that you can use to become wealthy is to become a landlord. Becoming a landlord is the classic wealth creation model of real estate investing. Let's assume that you acquire ten properties worth $100,000 each and after renting them out consistently for ten years, they are now worth $180,000 each. Not taking into account the income that you received from these properties over the last 10 years, you would have increased your wealth by $800,000 just off of the appreciation alone. That is why becoming a landlord is a powerful wealth creation strategy.
The concept is simple in theory, but takes good management skills in order to be successful long term. If you can purchase numerous houses, rent them out consistently, and manage them well, then you will be well on your way to creating wealth and financial freedom for yourself. Unfortunately, the reality is that the beginning years can be tough on beginning landlords because generally the expenses on your rental properties will be high and the income will be marginal. Over the years as the income increases the profit generated from these properties can be significant.
Management is really the key to a landlord's success and wealth creation. If you plan to follow this business model and hold these rental properties for the long term, then you must know how to effectively manage these properties, or you must hire a property manager who can properly manage them.
The image of being a landlord strikes fear into the hearts of many aspiring real estate investors. All they can picture are the late night calls from tenants claiming that the toilet is broken. However, this is rarely the case, and for the savvy landlord who hires a property management firm, this is never a concern. The reality is that a well managed property can provide you with a large passive income. You might start off investing in single family houses, but eventually you will want to upgrade to apartment investments in order to maximize your returns. If you are committed to taking the plunge as a landlord, and acquire good properties and manage them will, you can look forward to creating wealth that most people only dream about.
The goal of wealth creation is truly up to you. Study your market and the rental rates in your area and try to find a good property manager. These simple steps will put you on the right path to wealth creation by becoming a landlord. Hopefully, that this article has been of help to you. If you have questions, please feel free to leave a comment in the section below.
By: Perry Pearson, ArticleBase
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