Real estate investment guru Grant Cardone says Americans should “stop saving” if they want to build real wealth.
Cardon, nicknamed Uncle G, recently shared his two cents on Twitter: “That full-time job will not bring you wealth. Saving, saving, saving will not bring you wealth. Wasted will not bring you wealth. I can’t get it.”
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According to Cardone, only one thing can help you build real wealth “in excess of millions of dollars.” He says he needs to invest.
“Don’t save money,” Cardon says in a book. video he tweeted June 5th. “That’s what my parents did. They saved money. They didn’t invest the money correctly. They didn’t receive the money.” [and] They were afraid to lose money, so they used it for real investments. ”
Cardone argues that there are “asset classes that never lose money,” such as real estate that generates cash flow and appreciates in value over time.
The advice isn’t surprising given that Cardon has built his real estate empire from the ground up, which he says includes about 8,000 properties with cash flows worth more than $4 billion.
Interested in following Cardone’s success? Here are three ways you can get started investing in real estate without needing a lot of cash.
real estate investment trust
Investment in real estate investment trusts A (REIT) is a way to profit from the real estate market without buying physical property and worrying about landlord obligations such as tenant screening, damages, and late payment tracking.
REITs are Income real estate Condominiums, shopping centers, office towers, etc. They collect rent from tenants and pass that rent on to shareholders in the form of regular dividends.
REITs are basically huge landowner. To qualify as a REIT, in addition to other requirements, a company must pay at least 90% of its taxable income to its shareholders in dividends each year. Instead, they pay little or no income tax at the corporate level.
Of course, not all REITs are created equal. In recent months, experts have expressed concerns about: Current state of commercial real estate In the U.S., sectors such as residential real estate appear to be holding out, especially as office towers struggle in the post-pandemic era of remote work.
REITs are generally described as high-yield investments that offer solid dividends and moderate long-term capital appreciation potential.
And because REITs are publicly traded, you can buy or sell shares at any time and increase your investment as much as you like. Buy a houseIt usually requires a large down payment followed by a mortgage.
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real estate ETFs
If you are looking for The easy way to invest in real estate Instead of having to pick and choose which stocks to buy or sell, why not consider an Exchange Traded Fund (ETF)? Think of an ETF as a diversified portfolio of stocks.
As the name suggests, ETFs trade on major exchanges, making them convenient to buy and sell. Some ETFs passively track indices, while others are actively managed. All of these charge a fee, called an administrative expense ratio, in exchange for managing the fund.
For example, the Vanguard Real Estate ETF (VNQ) offers investors broad exposure to US REITs. fund It currently owns 165 shares and has a total net worth of $62.8 billion. Over the last ten years, VNQ’s net asset value (NAV) increased by 5.34%. Management fee rate is 0.12%.
You can also check out the Real Estate Select Sector SPDR Fund (XLRE). Recreate the real estate sector Components of the S&P 500 Index. As of March 31, the company owns 30 stocks and the expense ratio is 0.10%. Since the fund’s launch in October 2015, XLRE’s NAV has increased by 6.61%.
Both of these ETFs pay quarterly distributions.
Crowdfunding platform
A Cardone-backed crowdfunding process allows everyday investors to pool their money to buy a property (or a share of a property) as a group.
Through crowdfunding platforms, you can buy pieces of physical real estate, from rental properties to commercial properties.you can too Buy shares in digital real estate.
some options It is aimed at accredited investors, and the minimum investment amount can reach tens of thousands of dollars.
Even if you are not an accredited investor, many platforms allow you to: invest a small amountEven at a low price of $100.
Such platforms make real estate investing more accessible to the general public by simplifying the process and lowering barriers to entry.
Sponsors of crowdfunded real estate deals typically charge investors a fee. Its fees typically range from 0.5% to 2.5% of his investment amount.
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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.
