Rentals Build Wealth

Owning Your Own Home Doesn’t Make You Rich. Owning Somebody Else’s Does.

Home ownership is fantastic – it really is the American dream. But Andrew Van Dam over at the LA Times wrote a great that highlights the fact that owning your own home is NOT the key to increasing your net worth. Owning rentals and owning a business is the path to wealth.

I’ve owned a business, it’s a ton of work and you need to actively manage and grow the business. I prefer rentals. I just like getting the checks and cashing them.

Some highlights from the article:

  • In the US, wealth is concentrated among business owners and landlords.
  • They tend to be 4 times as wealthy as the average American.
  • Renters make up the bottom 35% of households.
  • The middle class is made up of those that only own their own home.
  • Landlords and business owners make up the top 15%.
  • Homeowners wealth hovers around the national average.

The middle class is disappearing.  90% are moving into the lower classes. 10% are increasing their net worth.

Where do you want to be 10 years from now?

If you’re interested in learning how cash flow real estate can increase your net worth, fill out this form and we can discuss some strategies to make it happen.

Click here to read the full article.