Preparing to write the book Rich Like Them, author Ryan D’Agostino went door-to-door in the wealthiest zip codes in America to learn how America’s elite made their money. Not surprisingly, a handful of those who answered the door made their money in real estate. Others owned businesses and reached higher levels of wealth through hard work and self-employment. Here are some gems I learned when reading Rich Like Them that apply to both your real estate and your career.
Invest in Property Near Water
One of the many figures interviewed in the book is a woman who made her money in real estate. Her philosophy is simple: always buy property near the water because there is a limited amount of waterfront but an unlimited demand.
Whether the property was lakeside, riverside, or oceanside, the bet paid off well for her, landing her in one of America’s richest zip codes. While waterfront property is not available everywhere, it does tend to make a great real estate investment.
Business Owners Keep All the Profits
One common thread among those interviewed from the wealthiest zip codes was a trend of business ownership. These were not people with billions of dollars like the titans of Silicon Valley and other industries. They owned small to mid-sized businesses of all types.
As an employee, you are paid what your boss gives you. As a business owner, you get all of the profits and pay your employees. By keeping the profits, successful business owners have been able to position themselves to buy homes in the best zip codes in addition to investment properties.
Your Time Does Not Scale Infinitely
Even if you could somehow function without sleep, you can only work 24 hours in a day. There is no possibility of working longer hours than that. Residents of the wealthiest zip codes have learned this and apply it to their businesses.
This idea transfers to real estate investing as well as other businesses. In real estate, you can earn money while you sleep. This type of investing is the most passive income you can make outside of the stock market. Who doesn’t want to earn money for doing nothing?
Build Wealth Slowly
While it is possible to strike it rich and find yourself rolling around in stacks of hundred dollar bills after a financial windfall, but most of the residents of the wealthiest zip codes didn’t make their money overnight. In fact, it was a much slower process.
Just as famed personal finance blogger J.D. Roth shared in Get Rich Slowly, most people will not get rich overnight. It takes years of hard work and dedication to build true wealth.
The Right Agent Can Help You Start Investing in Real Estate
If the idea of buying an investment property is overwhelming, consider starting the search with the perfect agent. A local investment property specialist is standing by in the AgentHarvest directory to help you find the perfect property.
You don’t have to go at it alone. In fact, a trustworthy, experienced real estate agent can be the difference between a successful investment and losing your shirt in a bad buy. Before you start the search for your next property, you need to find the right agent. You can find the best agent for your needs at AgentHarvest.