Did you know that real estate has created 90% of the world’s millionaires?
It’s incredible. I’m a big advocate for stock trading and business, but you can’t argue that real estate is the place to start with a stat like that.
When I read that stat, I thought… I know just the people who could use a starter guide.
I know that YOU are one of those people. So, let’s kick start your real estate riches and get you on your path to millionaire-status with this beginner’s guide to real estate riches…
When I recall the first real estate investment I made, I can see exactly where I went wrong.
I fell into every single one of the beginner traps that ruin real estate investing for most people.
After I battled through the first few deals, I started to make a list of everything I could’ve done differently.
Each time I made this list, there was a mistake in the early stages that kept reaching the top of my list.
I instantly changed my ways and worked up to a million-dollar deal.
Those mistakes still haunt me, and I wish I would’ve caught them earlier.
But, as you may know, it all worked out nicely for me in the end.
After speaking to a ton of real estate investors, I noticed they’ve all made the same mistakes.
That’s why the first part of this guide focuses on ONE mistake that you must avoid completely to get a head start on your millionaire-status journey.
The mistake I’m talking revolves around the down payment.
Most people save as much as they can to only put a 10%-20% down payment down on their first investment.
The big downside to this is that your monthly payments are going to be much higher, but there’s a specific reason why this can ruin your investment career before it has even taken off.
The bigger the down payment you have means the larger your equity is in your home.
If you pay a 5% down payment, you own 5% of your home. If you pay a 20% down payment, you own 20% of your home.
Seems simple. But what can really kill you on a small down payment is another real estate crash.
If you only own 5% of your home when a crash happens, your 5% becomes basically worthless, and your interest rate (if not fixed) can shoot through the roof.
If you own 20% of your home, there’s less to pay off, and your equity will still remain strong as the value of your home sinks.
This single real estate mistake could be the make or break of your real estate investing career.
I hope you make the wise decision and invest as much as you can into your property.
You’ll see more of this beginner guide in the coming weeks, but let this first lesson sink in and you begin your journey.