Billionaires are the creme de le creme of the financial pyramid, and they haven’t gotten there just by getting lucky. A lot can be learned from these billionaires that can help us in our everyday investing, as the difference between a billionaire and an average person is primarily the way they think.
If you start thinking like a billionaire, you’ve already won half the battle. Most billionaires have abundant wealth, and most of them preserve it by investing in real estate. Real estate is often a stable investment that acts as a hedge against inflation.
Don’t Use Your Own Money
This might seem absurd, but most billionaires get there by risking other people’s money. The key to staying rich is to use as little of your money as possible. Despite being atrociously wealthy, billionaires often do not use their money freely. They would much prefer an alliance or an investor to share the risk.
As an individual investor, you might not be able to grab the attention of investors quickly, so the next best thing is to get family and friends involved to help share the burden and pay them back after you’ve made a sizable profit. Securing a bank loan is also a viable option if you have an excellent financial record.
Try to look for off-market deals
There’s no point in paying a broker if you can do the research yourself and save yourself the money. Off-market deals are often available for a steal price because it gets corrected once the listing goes to the open market.
Wholesale real estate market deals are also an interesting way to make money as they are relatively cheaper than when you flip them individually.
The Compound Effect
It is often said that the first million is difficult, but the second million is inevitable. The compound effect hits with residential real estate as they can generate profit year-round. The income from residential properties can be used to buy more residential properties, and these properties will generate more revenue.
Diversification
Billionaires never stick with the same strategy and continuously diversify to minimise risk. Suppose you’ve made good returns from residential properties. In that case, it’s always a good idea to consider industrial real estate as the returns are higher, and they appreciate higher value compared to residential properties.
Industrial real estate such as warehouses are trending and appreciating because of how our supply chains are restructuring post-pandemic.
Knowledge is Power
Billionaire investor Mark Cuban called it the “Knowledge Advantage.” He believed that the more knowledge you have about your investments, the better your returns. Try to learn about what you’re buying into, and having a bit more knowledge against the competition can go a long way.
In the market crash of 2008, the people who bought credit default swaps betting against the real estate market had more profound knowledge than the surface-level information that was peddled to the public.
It Offers Options
Real estate offers options such as upscaling a property, renting it, leveraging it, and more. Real estate can be renovated, leased, rented, or flipped for a profit. There are a lot of contingencies no matter which way the market goes. There is always a way to ensure that your property does not depreciate.
People Will Always Need a Place to Live
Robert Martinez, founder and CEO of Rockstar Capital, a real estate investment firm with over $330 million in assets under management, said that people will always need a place to live, and he’s right. As long as there are people on this earth, the demand for real estate will continue to increase.
The world’s population has rarely ever decreased, and the real estate market is a testament to the fact that there is a lot of unfulfilled demand in this sector.
Real estate is a safe investment to park your capital. It is always better than to let it sit in a bank and depreciate over time, especially in these recessive times. If an investor is in it for the long haul, then historically, real estate has consistently appreciated in value. Another key term is that real estate is real and a stable wealth-creating investment.
Due to these reasons Graana is considered as a hub for safer real estate investment as it aids people to achieve their financial goals. Graana does this by presenting different investment options for their customers such as houses for sale in Bahria Orchard, Lahore or houses for sale in DHA Phase 4, Lahore.
