Becoming a millionaire through real estate holdings is actually not that complicated and is absolutely within your means to achieve. A single commercial rental facility or a handful of residential properties puts you into that exalted club based on property value alone pretty quickly. But having a million dollars in flat out equity might take a little while longer. While the number of American families with a net worth of at least one million dollars increased by 16% in 2009 (the most recent year with statistics available), the income gap continues to grow wider, with the Department of Labor estimating that income inequality in the United States will resemble that if our fractured southern neighbor Mexico by the year 2043.
Which side of the income divide do you want to be on? Scrambling and scratching to put food on the table or sitting back with a nice cushion between you and the financial abyss? Okay, obvious question. You’re going to choose the second option, but the truth of the matter is that becoming a millionaire (normally) isn’t going to happen from working an hourly wage job, no matter how nice the pay and benefits are. You need to translate your personal economy from trading time for money to making your money work for you independent of time.
We’re talking about the economy of scale, where you can grow your business to be as big as you want. Remember how Wal-mart started as a modest general store in northwest Arkansas? But founder, Sam Walton, realized that if he could multiply the profit margin at one store over a vast network of stores – forget millions – say hello billions of dollars.
If you’re reading this blog, you should already realize the potential of real estate investing to hand you the keys to the millionaire club. Once you’re through the doors, though, it’s not an automatic lifetime subscription to Easy Street. There are plenty of examples of millionaires who screwed up, made bad decisions, and found themselves back on poor street but that doesn’t have to be your fate. Do what it takes to reach the acknowledged land of financial success – then do it some more. Make sure that you and your family for generations to come don’t have to worry about ending up on the wrong side of the income gap.
Financial independence is closer than you think. Buy your Early Bird ticket to the Meet the Masters of Income Property Investing educational event before February 14 to qualify for a steep discount on tickets.
The Commercial Investing Center Team
Flickr / Marco Senche