Welcome to Part II of how to build wealth.
On the first blog post we talked about the easiest way to start investing your money and that is stocks. A stock is a very small piece of a company that you can buy and sell.
This is the easiest way to start making passive income and if you are interested in getting started you can sigh up to a brokerage account and start investing.
You just have to create an account, deposit any amount of money and start investing. Remember to always make sure you understand in what you are investing, and never invest more than what you can afford to loose.
If you haven’t check Part I, here it is:
“Best Way to Start Investing and Build Wealth – Part I”
Now let’s check out the second way you can invest to build wealth.
Probably every single person in the top 1% has Real Estate investments. It is one of the most viable and profitable investments you can make (of course if it is done right).
There are different types of Real Estate assets.
- Residential Buildings
- Office Buildings
- Commercial Buildings
It is up to you (and to how much money you have available) to choose what type of building you want to invest, but there are two ways you can make money from it.
When you have a rented house money is coming in with very little effort. You don’t have to physically be there to earn money, all you need to do is to check once in a while if everything is ok with your tenants and the house.
Of course you first have to find (good) tenants to live there, and you need to have money ready for emergency repairs. It also would help a lot if you a contractor you trust to do the repairs, it will save you a lot of time and money, because the goal is to be as least active as possible while maintaining a good service for your tenants.
Another way you can earn money from renting is to use apps like Airbnb to rent out the rooms for possibly higher profits. The only down side is that you have to be more active to do it.
As the population keeps increasing, the demand for houses also increases which makes the prices of houses go up. This makes a good opportunity to buy a house and sell it for a profit. What you need to do here is to find a house that is undervalued, buy it, fix it and then sell it. Then use the profits to buy another house and repeat the process.
Now an extra tip:
No, I’m not talking about hacking your neighbour’s wifi.
If you buy a duplex and you rent out half of the house and get tax deductions that will lower your expenses and save you a lot of money in the process.
Check out my example on this post: “The Rat Race Explained”
The cool part when you have enough cash flow coming in, is that you can hire a property manager to deal with your properties. If a problem arises the tenants will call the property manager instead of you and all you need to do is to pay him. Get a good property manager a good contractor to fix your houses and you will have to do almost nothing except getting payed every single month.
*These are affiliate links, if you buy from them I will earn a very small commission and you won’t have to pay more for it.
Once again thank you for reading. Now tell me…
What do you think about Real Estate investments?
Let me know in the comments bellow.