At the recent National Association of Realtors (NAR) conference, Lawrence Yunn (the NAR chief economist) showed a slide with the shocking difference between the wealth of a home owner and the wealth of a renter.  Home owners on average have $320,000 of wealth, while renters have an average of $8000 of wealth. You can build some wealth initially through buying a home.  You can build more wealth in real estate through investing in single family homes or through investing in small multi-family real estate. 

Buying a home of your own is the first step and is a great way to hedge against inflation.

When you have earned enough money for a down payment (20%) for a rental home, you can start leveraging the rental market.  It takes the right lender and the right Realtor to guide you to the right investments.  Usually a local bank is the best option to lend to you as an investor.

Some people want to be in real estate but do not want to manage property.  They do not have time to be a property manager or to manage a property manager.  In that case investing passively in a multi-family apartment building would be a great option for you.  That kind of investment is much better than a REIT (Real Estate Investment Trust) that you can buy with a stock broker, because you get an annual return, a piece of the equity at the sale, and a tax write off due to depreciation.  Investing passively in an apartment building actually yields a better return than investing in a single family home to rent or small multi-family property to rent.

Nathan Walldorf can help you grow wealth through investing in real estate directly or by investing passively in an apartment building.  Call Nathan to find out more. 423-544-7700