Building Wealth Through Real Estate Part 1
Updated: Feb 22
Whether you are buying your first home, trading up for a larger house or getting into real estate investment, my goal is to help you build wealth for your future and your future generations through real estate.
Many members of my family became real estate agents and real estate investors because of the example my grandmother set for our family and it has served us all well. My grandmother was an extremely savvy real estate investor who came to this country penniless at 16 years old. Her father was a tailor who saved up his earnings and left her a small inheritance. Do you know what she did with that money? She invested it all in real estate. By the end of my grandmother's life, her investments ultimately yielded her millions and allowed her to live the type of life she wanted for herself and her family.
The first thing that I learned (which has become one of my mantras) for building wealth is "Buy Low and Sell High or Keep Your Investment High." One of the best times to invest in real estate is during a decline in the housing market. If you are able to take advantage of the lower price points and eventually sell during the market upturn, your net yield can sufficiently produce 200% margins. But what happens if housing prices are high and will remain high for a long time? Then you go a different avenue by investing in very lucrative potential neighborhoods.
In 2002 I invested in "Spanish Harlem" a part of New York City that at the time was considered a declining urban neighborhood. Nobody wanted to live there, but Harlem was on the verge of gentrification. Manhattan and other boroughs of NY were outpricing it's current residences. I could see the writing on the wall, that Spanish Harlem would be the neighborhood that would step up and take in all of the folks leaving their expensive Manhattan rents. I bought a couple of investment properties and waited. In a couple of years, it paid off substantially for me and I was able to start my career in investing. South Orange County also has a number of great investment opportunities that can pay off for you as well. Areas like Lake Forest, San Clemente, Laguna Hills and Laguna Woods have very lucrative potential.
Choosing to live in a newly built community can also increase your assets substantially. New builders typically sell houses for less than resale homes. This was the case for the first three phases of Rancho Mission Viejo in Orange County. Most people who had bought in this area (even a couple of years ago) have increased their net wealth by at least 200,000 for a single family house and at least $150,000 for a condo. With the new phase in Rancho Mission Viejo called Rienda opening up, first time buyers, buyers who would like to purchase a larger home and buyers who are interested in becoming small investors can all build wealth for their future. If you are interested in learning more about Rienda and other lucrative neighborhoods in Orange County please contact me. Also look out for the next segment of my building wealth series called "Looking for Distressed Owners Instead of Distressed Properties."