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How To Create Wealth Investing In Real Estate



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Throughout history, the wealthiest people have always been real estate investors.  investors are able to hold real estate, compound their wealth, and receive rental income, all while enjoying the benefits of operating leverage and tax advantages.

there isn’t much of a difference between your neighborhood real estate investing millionaire and you? Continue reading to learn the key ways to create wealth investing in real estate. 

What Does Investing In Real Estate Mean?

Investing in real estate means injecting money into an opportunity anticipating a return of capital in excess of the amount invested.For example, purchasing residential or commercial properties to rent out, lending money for a real estate transaction in exchange for interest payments, and investing in a company that brokers properties all fall under the category of real estate investing. 

There are no bounds or constraints in the real estate industry. That is why so many people – with the right skill set – can create generational wealth investing in real estate.

How To Create Wealth Investing In Real Estate: (5 Strategies)

1. Wholesaling And Flipping

Some of the most popular, tried and true active real estate investing strategies are wholesaling and house flipping. Wholesaling is an investment strategy whereby the wholesaler connects buyers and sellers of properties  – comparable to a real estate agent’s job.

Usually, wholesaling entails going under contract with a distressed seller at below market value prices and simultaneously finding a cash buyer or accredited investor interested in assuming the purchase agreement. 

Typically, the wholesaler will bake in an assignment fee into the contract to ensure he or she gets paid for making the connection. Wholesaling is a fantastic way to accumulate capital and learn to find properties that build long-term real estate investing wealth for an active participant. 

It requires little to no initial equity and the results can prove to be extremely gratifying.Another such active investing method used to build long-term wealth creation is flipping houses. 

Flipping properties is the act of buying a distressed property – usually off the traditional real estate market – and injecting capital into the project to rehabilitate the structure, aesthetics, and functionality of the property and digital investments such as with pet policies to increase its After Repair Value (ARV). 

By flipping or wholesaling a handful of properties a year, one can slowly, but surely generate substantial amounts of money straight to the bottom line and boost their net worth. 

2. Buying Rental Properties

In terms of active real estate investing, buying residential properties is another great strategy to build wealth over the short and long-term horizons. Whether you are buying multifamily properties out in Plano, Texas or an office building in Tallahassee, Florida there are numerous avenues to leverage rental properties to generate financial freedom. 

First, renters provide owners with consistent passive income. Having excess cash flow above annual expenses means the owner can use their Return on Investment (ROI) and deploy equity into more deals. 

Second, rental properties can be leveraged. Leveraging a property with bank / hard money debt provides a handful of benefits. 

Interest rate is a tax deductible expense. By having a loan on your property you will be able to offset the income the property produces with the interest you pay the bank. 

Second, leverage allows you to minimize the down payment needed in a transaction. By putting a fraction of the equity down, you gain access to a cheap source of capital. Later, you’ll be able to pay off that debt and carve out equity for more investments as the property’s value appreciates. 

The last benefit of real estate rentals is appreciation. Over time, the purchasing power of the U.S. dollar decreases due to inflation. By plowing your hard earned cash into properties, as the U.S. population grows so will your property’s value.

“Everytime I get money, I go broke again because I shove it into this real estate thing.” – Grant Cardone

3. Invest In A Private Equity Fund

Private equity funds are investment vehicles used to acquire larger real estate portfolios and properties. Oftentimes, individual investors don’t have the bandwidth to acquire multi-million dollar properties. Private equity sponsors offer a solution to that issue. 

Instead of putting $50,000 into a single family home, you can put $50,000 into a large pool of investor capital seeking to purchase a $100,000,000 multi-family portfolio. You’ll also have institutional backing and a management team that has experience operating large properties. 

4. Investing In REITs

Another option for passive income in real estate investing is REITs. REITs are publicly traded investment vehicles – also known as Real Estate Investment Trusts – that trade on the stock market. The beauty of investing in REITs is that the investor can easily diversify his or her nest egg across a wide range of assets and geographies. 

With just $100 you could literally buy 100 different REITs that cover thousands of properties, millions of square feet, across all 50 states.Take a look at this directory for a list of all the publicly traded REITs you can choose from. 

5. Investing In Syndications

Another great way to create wealth investing in real estate is by participating in a syndication. A syndication is a pool of money devoted to investing under a criteria. If you would like to invest $100,000, but want to play a more active role, a syndication could be just the right vehicle for you. 

Ten different investors can pool $100,000 each into a $1,000,000 syndication. With that amount of money, you can now deploy the capital into a larger deal that you would have otherwise been unable to invest in.  You can be a more active participant in the syndication investment philosophy and management style – a benefit that is largely unavailable for private equity fund and REIT investments.

How To Choose The Right Real Estate Investment For You

Every investor has a different set of goals and hurdles. A retired individual looking to achieve fixed returns would likely prefer an investment that differs from that of a young single person that has a higher risk tolerance. 

For instance, if done correctly, flipping a house could help an investor achieve a 100% return in 6-months, but the risk of permanent loss of capital is much higher than investing in a REIT that might offer consistent 8% dividend yields.

Once you have a sufficient grasp of your overall risk appetite, budget, and view of the housing market, you’ll have a better idea of which real estate stream you should dip your toes in.

Benefits Of Investing In Real Estate

There are tax benefits associated with owning rental properties, income benefits in owning dividend paying REITS, and appreciation benefits in flipping houses and using leverage. But, most important of all, there are macro trend benefits associated with real estate investing as a whole. 

As the economy globalizes, there will always be demand for housing. The United States is – and always will be – the ultimate destination for opportunity. As long as that is the case, real estate will always be needed. 

Final Thoughts

Real estate investing is a phenomenal way to create long-term wealth for yourself. Whether it be real estate wholesaling, flipping houses, brokering, investing in debt, running syndications, or buying REITs, there is something out there for everybody. All you have to do is dive right in!

Ryan Zomorodi is the Co-Founder and COO of Estate Skills is an online real estate education company that helps people start and grow real estate businesses. With thousands of students nationally, Real Estate Skills offers a suite of digital educational products and coaching in the areas of house flipping, wholesale real estate, and real estate investing.Ryan has led the identification, acquisition, rehab, leasing, and management of rental and fix-and-flip properties across twelve states and counting. He has over a decade of business and real estate experience, including a business management degree with a specialization in entrepreneurship and a minor in marketing from San Diego State University.

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Mastering Self-Management for Success: Lessons From Peter F. Drucker

With careers no longer following a straight, predictable path, self-awareness and adaptability are essential for success.



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How to Break the Cycles of Mediocrity and Manifest Your Greatness

There is no greatness without becoming and there is no becoming with authenticity



Image Credit: Midjourney

In just a few weeks, we will be wrapping up 2023. Can you believe it? This year has been absolutely incredible for me.

I have seen amazing doors opened, new relationships formed and I am seeing dreams realized in my life. While this seems like the hallmarks of a great year, this has also been the most challenging year of my life. With all of the change happening in my life, I have been forced out of my comfort zone and challenged to grow in every area of my life.

I can truly say that I have made the most of my moments this year and I have used everything as a catalyst for maximizing my greatest potential.

As a revolutionary leader, I have the pleasure of consulting and advising leaders around the world to fulfill purpose, realize their greatest potential and make an impact.

I want to share some insights with you that will help you to break cycles of mediocrity and manifest your greatness

Everything legal must come through the matrix

I am sure that some of you are wondering why I am using the term matrix. However, what you have to understand is that I am trying to make a highly complex spiritual principle practical to understand.

Regardless of your spiritual beliefs, every life has an origin and I believe that origin is divine and begins with eternity. You are birthed from eternity and into time to fulfill a unique purpose and assignment in your lifetime and generation.

The matrix is simply the portal or vehicle that brings something out of the invisible realm and into tangible form. The problem with much of the teaching today is that it excludes the matrix. We are told to believe that success is instantaneous and overnight.

Nobody talks about how a dream progresses through stages beginning with visualization and ultimately culminating in manifestation. Without a matrix or portal then everything that you attempt to birth and build will be illegal.

The matrix not only makes you legal but it gives you the authority and power to function as the greatest expression of who you were created to be. 

Every matrix has an incubation process

While many people admire and respect me today, I remember a time when nobody knew who I was or the significance of my message. How did I get to where I am today? I got here through an incubation process.

In other words, everything that has been destined for your life is incubating and awaiting a set time of manifestation. The problem is that most people live their entire lives idle and never initiate the incubation process.

What do I meany by that? Most people are living reckless and very few people are living intentionally. I am amazed at the number of people I have conversations with that have no vision, goals or strategies for their lives. They show great promise and they have undeniable potential.

However, without development they will die with their dreams still in them.

Everything that has been destined for your life must be incubated and converted to become realities born to time. 

“Visualize this thing that you want, see it, feel it, believe in it. Make your mental blueprint and begin to build.” – Robert Collier

You must give expression to that which is not yet born to time

When you think about a matrix or a prophetic incubation process, you have to understand that potential is often unrealized and untapped. In other words, your potential is in raw form and your potential cannot serve you as long as it is untapped.

The thing that makes me valuable is that I have the ability to convert potential into power. I have done it in my own life and I have empowered leaders around the world to do the same. How do you convert potential into power?

First, it is important to note that you have to perceive potential. If you cannot perceive your potential then you can never cultivate your potential. In addition, you must take the time to cultivate your potential. We often get excited about our capabilities; however, we never expand our capacity in order to realize our greatest potential.

In other words, the strength of your potential is only discovered through your willingness to stretch. The more we are challenged the more we are empowered to expand our capacity for greatness. Most of all, you must begin to express your potential. The expression of potential is different for every person.

For example, the expression of my potential is best demonstrated through the thoughts, ideas, products, services, books, etc.

For another person the expression of potential may look like a screenplay, artwork, sports, scientific discoveries, medical breakthroughs, etc.

Regardless of the form of expression, I know that you will live empty and unfulfilled until you make the decision to express your potential. The expression of your potential gives voice to your dreams, life to your vision, significance to your moments and activates your true power.

You must manifest your greatness

As a revolutionary thinker and leader, my work has impacted people around the world. I am grateful that my life is a source of empowerment to so many people. However, before anyone could ever benefit from my life, I had to make a non-negotiable decision to become who I was born to be.

I wish I could tell you that this journey is easy and that you will get there overnight. However, in a world that celebrates us for doing we are often criticized for being. As a result, I wasted a lot of time trying to be who other people wanted me to be instead of being who I was born to be.

There is no greatness without becoming and there is no becoming with authenticity. It is through our bravery to be vulnerable that we ultimately manifest our greatness. We do not bless the world by being a duplicate. We bless the world when we honor our difference. When you honor your difference you honor your potential.

Ultimately, your difference is how you manifest your greatness.

When you present anything but your authentic self to the world, you are playing small and you are robbing the world of your significance. Manifesting your greatness requires you to master your gifts.

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