Real estate has always been the de-facto inclusion in the  portfolio of the rich and wealthy. Wealth apparently doesn’t seem to be complete without the acquisition of illiquid assets like home, property, estates and mansions.

All kinds of property — residential, property to exotic ones like mansions, estates, ranches and even islands falls into the broad umbrella term used loosely as “real-estate”.

For true wealth creation, acquisition of real estate has always been deemed as critical and hence this manual on creating multiple streams of income starts on the same premise. However, our approach is rather long term and is designed to fetch you positive cash flow at later periods of time.

One pain point for most people when it comes to real estate is that that it has a high barrier to entry. I mean to say that it isn’t as affordable as a stock or something easy to handle. Real estate can be a life long commitment and you do have people like Donald Trump who has carved a special name for himself in this sphere.

Real estate has a variety of options for building a system to ensure a residual income which is in line with our goal of creating various sources of income for your self.

Build and it will come

One of the simplest ways to leverage real estate is to purchase property to lease it out or rent it out to tenants in exchange for a monthly or yearly income. This is also one of the easiest ways for a rookie real estate dealer to get acquainted with the rather mysterious world of real estate.

The underlying theory is that you would somehow find a mortgage or home loan to finance one house to start with and move on to more, depending on your financial status to build as many homes or even commercial property with the sole intention of giving it away on lease to secure a recurring income for as long as the contract is on — truly a simple but very effective way of building wealth through a sustainable, hassle free income stream.

Build and Sell

Some of the advanced real estate developers go one step ahead and build all sorts of property after going through the necessary steps of having spotted the requisite land, legalizing that piece of land, finding the builders / contractors and such like to formulate, plan and construct property.

These pieces of real estate will be developed according to the presiding societal norms, federal norms etc and then be sold to anyone willing to purchase. Real estate is always in demand and hence there is never a dearth of buyers.

Next post, we shall explore many ideas on how to make money with real estate. What do you think about real estate as a money making option?