Today, I want to talk about building wealth through real estate- but in real life!
One of my very first clients, about five years ago, bought their first home. They used $4,000 for their down payment. Then, he rented out his extra rooms to roommates (called house-hacking, if you’re interested!). After some renovations and a few years, he sold it.
Next, he took the profit from that house and put it as a down payment for his second house. Same story- he had roommates rent out extra rooms to pay his mortgage and after some renovations, he sold his house. Except here, he decided he wanted to do something good- he decided he wanted to donate money to his church. He was able to donate $50,000 to his church and still have enough money left over to be the down payment for his third home.
Crunching numbers here- he invested $4,000 that first year- and had $70,000 after the sale of his second home. That’s a 79% annual return on investment!
As they say- you have to live somewhere- do you want to pay your landlord’s mortgage or your own?
I like this story as a real-life example of building wealth and using real estate to further your life goals. If you’re curious how you might be able to do this yourself, feel free to contact me- all of my contact information is right here on this blog!