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Why Millionaires Invest in Real Estate and Why You Should Too

  • Writer: Admin
    Admin
  • Dec 8, 2022
  • 3 min read

Updated: May 22, 2023

Real Estate is one of the most popular investment vehicles among the wealthy.

Billionaire Andrew Carnegie is said to have been quoted saying, “90% of billionaires become so through owning real estate.”


Either through direct income or tangent advantages, properties make it easier to grow your capital and venture into investing. It also helps that there are multiple routes to wealth creation in real estate: you can rent, sell or even simply own and wait for the property to appreciate.

There are plenty of incentives to invest in real estate, but here are some of the top reasons why seasoned investors bet on real estate:


Clear Investment Win

Experienced investors see three main advantages in real estate: positive cash flow, tax advantages, and ‘depreciation. Combining these three elements gives you the most returns on your investment.

Positive cash flow means that money steadily comes in. Rental properties, for instance, provide reliable income on top of other potential fees you can collect from the investment. This gives the investor more resources to spend or put toward another investment.

Meanwhile, tax advantages give you relief from regular government dues through delayed taxation or reduced fees. Real estate is well known for providing these benefits, notably the 1031 Exchange Rule. It encourages investors to keep growing their money through like-kind investments and worry about taxation later.


All sorts of business expenses can also be charged against your earnings, which lowers your dues and thereby increase your profit. This is the case for depreciation, a strategy by which you deduct the anticipated decline in your property. You can use this number as an investor to keep your property competitive and in its best condition.


Grows with your Goals

What’s more, investors can quickly scale their investments. They can invest passively and put their money behind the most attractive deals without taking their time away from their current pursuits. This can easily equate to thousands of dollars saved or more for someone whose time is worth so much.


General Partners, like Makaan Investment Group, can look after their investment as they continue to set their sights on the future. They also enjoy added stability from real estate, which help keep them aggressive with their growth targets.


Trusted by Investors & Investment Partners

Because it is a tangible asset of significant value, properties can be leveraged for funding. You can borrow for real estate or borrow against the asset. Both investors and financial institutions recognize real estate as a reliable tool to build wealth and, as such, make it easier for investors to cast their stake in real estate.


Real estate has made many millionaires, and millionaires have been keen on investing in real estate. Undoubtedly, there is potential to grow your money in this space. However, is this investment really for everyone?


Can an average Joe/Jane build wealth through Real Estate?

There will always be some parameters you will have to meet as an investor. Real estate offers a wide selection of property classes, sizes, and locations, and you can match these attributes with your ability to invest.

One way to get started is through Multifamily Real Estate. These properties focus on rental income and passive investing. With this investment, you can pool your funds with other investors to access more competitive properties without the full property price or the headache of managing the investment.

Are you ready to explore real estate as an investment?

Talk to our team at Makaan Investment Group to see if a multifamily investment in Houston, Texas, is for you. Reach us by visiting this page or calling/texting 281-500-8554.

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11445,Compaq center W Dr, Bldg CCA6; Ste 200, Houston, TX 77070

Contact: 281-500-8554

Address:

Room 717, Zhongnan Magic Moon Plaza, Xuanwu District, Nanjing 

南京市玄武区中南魔力月光广场717室

Contact: +86 17368702978 

Interested in joining our team?

Email resumes to careers@makaaninvestmentgroup.com ​

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Our offerings under Rule 506(c) of Regulation D are for only accredited investors who meet the definition of an accredited investor as described by SEC guidelines. This is not an offer for the sale of securities.  The sale of any securities is only made through a private placement memorandum after the potential investor qualifies for the placement of the investment.  Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. A person's indication of interest involves no obligation or commitment of any kind on behalf of the Company.

Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Neither Makaan Investment Group nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees and expenses. Prospective investors should consult with a tax or legal adviser before making any investment decision.

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