A few of the highest-income people in the world got that way by investing in real estate. Over time, it remains one of the most effective ways to obtain real wealth. Purchasing and possessing real estate has aided everyday people to make a fortune in every part of the country. Just take a look at the real estate billionaires on the Forbes 400 list. Even though not every billionaire on the list is a rags-to-riches story, or even made their money exclusively in real estate, there are 24 real estate tycoons on this year’s Forbes 400 list that may appear as inspiration for anyone considering investing in real estate.
For illustration, Donald Bren ($16.2 billion) established a real estate empire in California and founded the massive Irvine Company, owning more than 126 million square feet of real estate, more than 560 office buildings, and 125 apartment complexes. Bren began by constructing homes in southern California, then joined with other investors to acquire a large tract of land to plan and develop the city of Mission Viejo, California. He continued to build on his achievements, subsequently becoming the sole owner of the Irvine Company and earning his place as a real estate billionaire.
Another fascinating case study is Sam Zell ($6 billion), who made his money, particularly through his stakes in Equity Lifestyle, an owner and operator of manufactured home communities and RV resorts. He also has major holdings in the apartment REIT Equity Residential. Zell grew up in Illinois and achieved his start managing an apartment building. He then bought out the building’s owner, making it clear that his ambitions were not merely in managing rental properties but in owning them. His growth didn’t stop there. He went into the apartment building development industry with a partner, investing in places as diverse as Toledo, Ohio, and Reno, Nevada.
And then there’s Jeff Greene ($5.1 billion), who started out hustling as a busboy in Palm Beach, Florida. After a brief stint in politics, Greene started investing in real estate. His investments, at this point in his career, were particularly in condos and apartment buildings. He made his first real money during the housing market crash of 2007 and 2008 when he used unconventional investing strategies that involved trading credit default swaps. The resulting returns put Greene on the Forbes 400 list. His holdings in Florida have even more recently increased in value, scoring billions to his net worth in just the last year or two.
The common characteristic among these three real-life investor stories is that all of them spent decades building on previous successful investments to expand their real estate wealth. Though there’s no assurance that every real estate investor will become a billionaire or even a millionaire, the stories are usually enough that it indicates how much potential real estate investing holds.
Getting started in real estate investing might feel like a faraway dream. But with a little forethought and some hard work, it can become a reality for anyone who wants it badly enough. Numerous experts recommend starting by buying a residential rental property. They seem to be more affordable compared to bigger real estate investments and offer the potential for both positive cash flows and appreciation. However, to be effective in real estate, you also need the right team of people on your side, willing to assist you in maximizing every investment.
That’s where Real Property Management Hill Country can help! We engage with rental real estate investors to give a market assessment, quality data, and San Antonio property management services. We can even aid you to find great off-market deals on your next investment property. Contact us to learn more.
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