Share with us your top five wealth-building investment tips.
1. Invest in yourself — everything from your appearance to your diet. Maintaining a healthy lifestyle and a holistic approach to your well-being gives you the foundation
you need to build wealth.
2. Educate yourself. I wouldn’t have been able to create the wealth I’ve created if I had not invested in educating myself.
3. Reap the tax benefits. As a real estate investor, you would have the benefit of paying lower taxes than any other for-profit business in the U.S. This is a key way of keeping the wealth you’ve created through real estate.
4. Asset appreciation. Residential real estate appreciates on average over the long-term about 4 [percent to] 5 percent a year. That means if you own a $200,000 home, it becomes $210,000 the first year, then $220,500 in year two as the 5 percent appreciation is compounded, giving you an excellent return on your investment.
5. Last but not least, equity capture. Equity capture gives you one of the best opportunities to build wealth. Equity capture is the process in which you buy a property for less than what it’s worth. For example, if you buy a house for $50K that’s actually worth $100k and you fix it up for $20K, you’ve invested $70K but will reap $30K in equity.
