Building a wealth plan is essential for anyone looking to generate revenue that continues to benefit you for years in the future. If you’re looking to develop a strong and secure wealth plan, investing in real estate is a great place to begin. There are multiple ways you can jump into real estate investing and develop a revenue-generating opportunity that keeps on giving.
What is a Wealth Plan in Real Estate?
First things first, what exactly is a wealth plan? A wealth plan is a comprehensive investment strategy that allows you to consistently build wealth and meet financial goals over the course of multiple years. A wealth plan is intended to help you build your wealth through a very hands-off approach so that you can earn more to support yourself in the future.
Investing in real estate is the perfect way to build a strong wealth plan. Why? Because real estate is one of the few things that will never leave the market. People will always need places to live and stay in, and real estate tends to rise in value over time following patterns of inflation. Real estate is one of the safest places to invest because the real estate market isn’t closely dependent on the rest of the investment market.
How To Get Started with a Wealth Plan In Real Estate
If you’re interested in creating a wealth plan through real estate, there’s a very simple process:
1. Choose an investment option (vacation rental, retirement home, second home, Airbnb, VRBO, etc.).
2. Maintain the investment and generate revenue.
3. Build your total wealth!
Let’s look a little more closely at each of these steps.
Choosing an Investment Option
The first thing to decide when creating a wealth plan with real estate is what you want to invest in. There are multiple options, so you should choose what works best for you in your current situation. You might pick:
· A vacation rental in a high tourist destination location–guests pay you to stay in the home for the duration of their vacation. You’ll simply need to manage the home by cleaning, maintaining utilities, and offering common perks that can all be managed by an offsite manager if you’d like.
· A retirement home for seniors looking for a home in a senior community. You’ll maintain this home like any other rental and invite seniors seeking a home in the senior community to rent from you during their retirement years.
· A second home allows you to rent out a beautiful house to people with the option to still use the house for your personal vacations if you so desire.
· An Airbnb or VRBO gives you the chance to rent out a small home for a much shorter period of time. Much like a vacation rental, you’ll maintain the home while no one is around and offer the rental for weeks or months to interested renters. Airbnbs and VRBOs are often used as alternatives to hotel rooms.
As you maintain your investment and consistently rent it out to quality tenants, you’ll build revenue. Yes, you’ll have to pay some costs for upkeep, utilities, and special perks for guests. But if you charge the right amount in rent, you’ll more than make up for those costs by generating a profit with each rental.
With a real estate investment, building wealth is easy! The longer you maintain your home, the more you’ll end up making, because real estate generally increased in value over time. Plus, as you earn enough to make updates to your investment home, you can begin charging more for each rental and increasing your dividends.
Creating a wealth plan based on real estate is simple. However, the rules and regulations that surround real estate investing can be confusing. If you’re interested in using real estate to create your wealth plan but aren’t sure how to get started, I can help. I’ve seen huge success investing in VRBOs, and I know how to help new investors get things up and running.
If you’d like to hear more about the options available to you for building a wealth plan through real estate, get in touch with me at Amy Alpeza Real Estate today.