90% of the World’s Millionaires Do This to Create Wealth

Over the last two centuries, about 90 percent of the world’s millionaires have been created by investing in real estate.

For the average investor, real estate offers the best way to develop significant wealth. As with any and all forms of investing, it is best to get started early with real estate so you can put time on your side. A good way to begin is to buy your first primary residence.

Setting Yourself Up by Buying Your First Home

That is where you will live. Since you'll be living there (and be the borrower), you can generally buy a home with about 5 percent down at a low interest rate. By contrast, an investment property requires at least 20 percent down and typically comes with a higher interest rate on the mortgage. There is less of a chance of a borrower defaulting on their mortgage for their home than for an investment unit, so lenders require less money down and offer better terms.

There are 2 approaches, buy a multi-unit property and "House Hack" where the majority of your payments are covered by your renters.

From here the objective is to continually buy properties as a primary residence, move in, live in them, and then rent them to suitable tenants when you are ready to buy the next one.

After it has been rented, the next primary residence can be purchased. From there, the cycle starts all over again. At present, an individual can have a maximum of 10 mortgages in their name. Nine rental properties and one primary residence makes for a very nice real estate portfolio.

The Pros and Cons of a Live-and-Rent Approach

This approach does require moving about every year, however.

But if you're a 22-year-old just graduating from college, that means you will own 10 pieces of property by your early 30s. If a 15-year mortgage is obtained and paid off early, several could be owned free and clear. That would provide for a significant stream of income for the investor. From that flow of funds, more properties can be purchased, too, continuing into the future if you wanted to.

Other Ways to Hustle in Real Estate

There are other ways to increase the rental income, too.

If a home has a basement, convert it into a separate rental unit. The same can be done with a garage, too. Make sure that it is legal to do so; and do it right, following all the applicable rules and regulation for the jurisdiction. In doing this, more rental income is produced from the property.

Like anything in life, the more you get into real estate investing and the more experienced you become, the easier it will be in the future.

After establishing yourself with a lender, financing for future buys will be much simpler. Real estate agents will also bring more deals your way when they are confident that you will buy. You will also find out that others want to invest with you after you have a profitable record in real estate. It will also become much less difficult to attract tenants through word-of-mouth from present or previous renters. You will also be able to determine which type of real estate investing you prefer, such as renting to students in a college town or leasing out rooms.

No matter which type of real investing works out to be your favorite, now is the time to begin. It is much better to make a mortgage payment to the bank rather than send the rent check to a landlord. It is vital in all investing opportunities to acquire assets and hold on for the long-term. As history has proven, with real estate it can be especially rewarding to those who start at any age.

205 Properties
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Open 4/1
5316 N New England Ave Chicago,  IL 60656
6
Beds
3
Baths
2
Days on Site
11745635
MLS
Enormous, brick, 6 bed/3 bath - 2 large bedrooms + bath on each of the 3 full floors. Full dormer on 2nd floor with vaulted ceilings + fully finished basement. Brand new roof and concrete walks,...
Open 3/29
6114 W Leland Ave Chicago,  IL 60630
6
Beds
3
Baths
2
Days on Site
11741027
MLS
Wonderful building in an amazing location in west Portage Park. Dunham Park-a 14.5 acre city green space is at the head of this block and is a true treasure to this area. The 6100 block of Leland...
4
Beds
3
Baths
2
Days on Site
11745816
MLS
2 Flat available in Lakeview/North Center neighborhood. Each apartment has 2 bedrooms and 1 bath. Frame building with a garage. The property is owner occupied and the other apartment is currently...
Open 4/1
2913 N Fairfield Ave Chicago,  IL 60618
4
Beds
3
Baths
2
Days on Site
11745933
MLS
PRICE DROP! SPRING SALE! Opportunity knocks on this 2-unit building located in a desirable neighborhood with tons of new development around. Less than a minute from the Kennedy expressway and less...
7
Beds
4
Baths
2
Days on Site
11746023
MLS
This charming 3-unit brick building, located in the highly sought-after Andersonville neighborhood, presents an excellent opportunity for both seasoned investors and first-time buyers. The property...
9
Beds
3
Baths
2
Days on Site
11746198
MLS
Welcome to 7741 S. Yates Boulevard, located in the hot South Shore neighborhood. This all-brick three-flat is an ideal opportunity for an investor on the hunt for an income-generating property near...
7
Beds
3
Baths
2
Days on Site
11746246
MLS
Long-term family owned 2 unit plus garden hitting the market in great pocket of Hermosa. Building will be vacant at sale and ready for investors or owner occupants - great opportunity to house hack!...
8
Beds
3
Baths
2
Days on Site
11746313
MLS
GREAT INVESTMENT OR MOVE-IN AND LET 1ST FLOOR ASSIST WITH MORTGAGE. BOTH UNITS HAVE BEEN REMODELED. 4 BDRM IN EACH UNIT. 1ST FL DUPLEX TO BASEMENT WITH BEDROOM AND BATH. WASHER/DRYER IN BOTH UNITS....
6
Beds
3
Baths
2
Days on Site
11746350
MLS
LOCATION,LOCATION,LOCATION! First time on the market in 30 years. Beautiful all brick two-flat(Golden Age of Brick) in prime Lake View just a few blocks from Wrigley Field, Southport Corridor, Brown...
6
Beds
4
Baths
3
Days on Site
11745567
MLS
You'll want this amazing 3 flat with finished basement in Logan Square / West Bucktown location. Only minutes away from California, Western Blue line, I 90/94, and 606 trail. Neighborhood offers...
6
Beds
4
Baths
0.08
Acres
3
Days on Site
11745592
MLS
Stunning Masonry brick two flat in the Mayfair area. This building is great for investors and owner occupants looking to build equity and reduce their mortgage. Building has been recently updated,...
4
Beds
3
Baths
0.12
Acres
4
Days on Site
11744459
MLS
Welcome to this stunning, FULLY REHABBED (2023), brick 2-unit in highly sought-after Galewood! As you enter the property, you will be greeted with gleaming hardwood floors, freshly painted walls, and...

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