The Hilton Wealth Secret

Jim_SamsonHistory moves in cycles, and the current cycle is positioning things perfectly to put into play a great wealth secret perfected by Conrad Hilton (of Hilton Hotels fame).

This ultra-safe wealth secret is how Conrad Hilton started his hotel business.

If there was any good to come out of the 2008 crisis, it’s this, and it’s something that anyone can use, just about anywhere…

A whole generation of twenty-somethings reached adulthood under the shadow of a real estate meltdown. Think about how the average 25 year old matured. During their high school years, they saw firsthand what the real world could be like, witnessing their parents struggle in 2008, possibly even losing their home.

In short, they developed a lack of interest in real estate ownership. And that’s great news for landlords. Particularly, a certain type of landlord that caters to this fresh generation, as Hilton did when he first started out.

Hilton referred to them as ‘rooming houses’. These days this hot new trend is referred to as ‘micro-apartments’, but the principle is the same.

Basically, you take a house, with as many bedrooms as possible, give it a comfortable communal area and kitchen and bathroom, all the amenities like wifi, etc. A bit like a college dorm. Then you rent out the rooms.

The important point is that your YIELD goes up dramatically, way more than it would do if you rented the house.

These are also quality tenants; young professionals who want their lives organized for them, and who are happy to pay for it, with no interest in buying real estate.

Urban areas are best, as close to downtown as possible, with good transport links. Look for potential to convert as much space as possible into an additional bedroom; like one of Hilton’s hotels, it’s all about generating profit per room.

And if you’re worried about another 2008 regarding real estate, don’t be. Sure, a recession is due, and this usually bumps real estate down a bit, but nothing like what we saw in 2008. If anything, hard assets like real estate are going to be where you want your money as our government steadily turns our currency into worthless confetti!

And then there’s always the ultimate property boom to look forward to. Your big house will have appreciated well, and it generated you a fine yield while you waited. The best capital gain in real estate always comes from a bigger house more than a smaller house (the bigger the better), but the rental yield goes down the bigger you go. This way, you can have your cake and eat it. Conrad Hilton certainly did.

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