Committed To Your

  1. Home
  2.  — 
  3. investment Partnerships
  4.  — Real estate: a legitimate path to becoming a millionaire

Real estate: a legitimate path to becoming a millionaire

On Behalf of | Jan 29, 2020 | investment Partnerships, Real Estate Litigation

Some people dream of providing adequately for their families so that everyone is comfortable. There would be no more couponing in the grocery store or second-guessing a reasonable upgrade of the family vehicle. This is the six-figure American dream in most cases. Some others dream a little bigger: more along the lines of how to make their first million. 

Forbes reports that there are several ways to use commercial real estate as a legitimate path to the millionaire club. One common path is to become a real estate broker. This field continues to grow exponentially and people advance quickly within a few years of hard work. After two years or so, a dedicated professional could bring in $250,000 in an annual salary. This adds up over time. Investing some of that money also helps to grow it. 

Then, there are developers. Creative people often look forward to taking on these projects, but it is not without risk. In fact, it is considered the highest-risk position to take in real estate. One reason for this is that developers are the most susceptible to market changes. 

The most common option that people tend to look into is becoming an investor. This involves building a diverse portfolio through long-term ownership of income properties, which may also include rented residential properties. 

CNBC also points out that when it comes to investing, buying property is not the only option. Investors often choose real estate investment trusts. This allows people to take part ownership of office buildings, personal storage and apartment buildings without the added stress of qualifying for loans and managing the properties. 

Whichever option a person chooses, the key is building a diverse portfolio. This covers most areas to give the person an idea of what to focus more closely on later. It also provides some protection against the risks inherent in market changes.