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How to Build Wealth With Real Estate (4 Ways)


Billionaire Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate. Whether that’s entirely accurate is up for debate, but it’s certainly true that real estate is a proven wealth-building strategy that continues to be a popular avenue for investment and financial growth.

Understanding Real Estate as an Investment

Real estate investing is a pathway for building wealth, distinct from other asset classes due to its tangible nature. This form of investment usually appreciates over time, providing long-term value growth. Real estate also offers the potential for rental income, transforming properties into sources of continuous revenue.

An important aspect is real estate investing’s role as a hedge against inflation, with property values and rental incomes often increasing alongside the cost of living. Investors in real estate benefit from various tax advantages, including deductions for mortgage interest, property taxes, and depreciation.

However, this investment type requires initial capital and involves ongoing maintenance costs. Successful real estate investment demands thorough market research and a strategic approach, particularly in choosing the right location and property type. 

By understanding and navigating these aspects, investors can use real estate to diversify their portfolios, generate passive income, and achieve their financial objectives.

4 Ways Real Estate Builds Wealth

Real estate offers many ways to build wealth, each with unique characteristics and benefits. In this section, we’ll explore four ways real estate builds wealth: appreciation, cash flow, tax benefits, and loan amortization.

Appreciation

Investing wisely in real estate can lead to substantial equity build-up and additional income. By choosing the right location, your property’s value has the potential to appreciate annually, thus adding to your equity.

Here’s a scenario using a rental property as an example. Consider a $100,000 single-family home with a $20,000 down payment and a 30-year mortgage at 5% interest. Over 30 years, tenants can cover the $80,000 loan and potentially generate $3,000 yearly income, totaling $90,000.

Additionally, if the property appreciates at 3% annually, its value would reach $235,656 in 30 years. Including a $30,000 remodel that boosts the property value by $45,000, your total investment grows significantly.

Thus, a $20,000 initial investment could yield you $340,656 in the long run.

Cash flow

Here’s the real reason you are reading this article: You want to make money in real estate. This is known as cash flow and is the money that an investor takes home after all expenses are paid.

A good investment cash flows most of the time. Notice the word “most,” because there will be times when your expenses exceed your income. Before investing, crunch the numbers to determine how much money a property can generate for you. 

Your upfront cash flow may not be overly impressive, but when you consider that the value is likely increasing over time and somebody else is paying down a mortgage for you, you can start to build wealth passively. You can also duplicate this until you achieve your income goals.

Taxes

Let’s dive into a topic that might initially seem dull, but is incredibly important in real estate investing: taxes. You might find that the more you learn about tax savings, the more fascinating it becomes.

Consider this: Owning just one rental property opens up a world of tax-saving strategies. These can apply to everyday expenses like your cell phone, internet bill, and home office setup, all of which can potentially be written off.

Remember this: The government actually encourages real estate investment by offering incentives like additional tax write-offs and 1031 exchanges.

Tip: Consult with a tax professional about all tax-related matters.

Loan amortization

Amortization is the gradual reduction of a debt over a period of time through regular payments that cover both principal and interest.

Achieving this requires a smart purchase at the right price, in the right location, and with effective management. In many markets, rental income can cover most or all of your expenses, allowing for automatic wealth accumulation through consistent occupancy.

How to Get Started With Real Estate Investing

To start investing in real estate, first educate yourself about the market, different property types, and investment strategies. 

From there, assess your financial situation to determine your budget and investment capacity, including potential mortgage options. Finally, network with experienced investors and real estate professionals to gain insights and locate promising investment opportunities.

Our Real Estate Investing For Beginners: How to Get Started guide provides you with step-by-step guidance.

Final Thoughts

Real estate investing is a proven path to building wealth. It requires careful planning, market knowledge, and strategic financial management, along with patience and persistence. Taking the right steps today puts you in a position for consistent wealth accumulation in the future.

A realistic guide to lasting wealth by David Greene

In this book, David Greene provides a holistic approach to systematically make more money and watch it grow over time. You’ll learn how to unlock your earning potential, adopt new budgeting systems, start your own business, and invest for constant growth so you can become wealthy the realistic way.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.



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Rithm Capital completes acquisition of Sculptor


New York-based Rithm Capital, the parent company of Newrez, announced on Friday it completed the acquisition of Sculptor Capital Management for $719.8 million. 

The deal was made public four months ago and created a dispute among investors to take the firm, leading Rithm to increase its price by 14% compared to the original bid. The transaction also created legal battles with Sculptor’s shareholders and founders, including Daniel S. Och, but the parties settled the cases in court.

In a special meeting on Thursday, Sculptor’s stockholders of 89% of the Class A common stock and 97% of Class B common stock voted in favor of the agreement with Rithm. They also approved the compensation to directors to consolidate the deal. As a result, Sculptor will be delisted from the New York Stock Exchange. 

Michael Nierenberg, chairman, CEO and president of Rithm, said in a statement that the company plans to “create a superior global asset management business focused on delivering significant, long-term value for our shareholders and fund investors.” 

Rithm announced on July 24 its plans to acquire Sculptor for $11.15 per share. After the deal was public, Rithm faced competition from a group of investors, including Boaz Weinstein, Bill Ackman, Marc Lasry and Jeff Yass. They offered $13.50 per share.

It resulted in Och and other founders filing lawsuits opposing the deal, saying it aimed to protect current CEO Jimmy Levin rather than maximize shareholder value.  

Rithm only received the blessing of Sculptor’s founder at the end of October after increasing its price to $12.70 per share. It had previously increased to $12 per share without success. 

Rithm reported a $194 million GAAP net income in the third quarter of 2023 — lower than the $357.4 million the prior quarter. The company targets transitioning from a real estate investment trust to a global asset manager. 

Sculptor is relevant to this plan because it will bring to Rithm $34 billion of assets under management, including real estate, credit and multi-strategy investing spectrum. 

Citi acted as the exclusive financial advisor to Rithm. PJT Partners was the financial advisor to the Sculptor’s special committee. The sculptor’s financial advisor was JP Morgan Securities LLC.   



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Freddie Mac to roll out fee-based repurchase pilot program in 2024


Freddie Mac will launch a new fee-based repurchase alternative pilot program for performing loans in 2024, designed to improve the quality of performing loans through a potential replacement of its current repurchase policy for defective performing loans.

“The pilot will use a fee-based structure that is more efficient, transparent and rewards lenders that deliver high-quality loans,” the GSE said. “Specifically, lenders will not be subject to repurchases on most performing loans and will instead be subject to a fee-based structure based on non-acceptable quality (NAQ) rates.”

That fee uniformly applies to both medium- and large-sized lenders based on NAQ rates, and will be waived for smaller lenders unable to deliver volume large enough to generate an NAQ rate that is “statistically significant.”

“Loans that are non-performing within 36 months or subject to life of loan defects will still be subject to repurchase,” Freddie Mac said. “This fee structure will begin with a limited rollout with targeted lenders in early 2024.”

Last month, Federal Housing Finance Agency (FHFA) Director Sandra Thompson said that the GSEs must implement a fair, consistent and predictable process for identifying loan defects and the appropriate remedies for them during an October event hosted by the Mortgage Bankers Association (MBA) in Philadelphia.

“After multiple years of record-high loan volume, we have seen an increase in the absolute number of repurchase requests – which is to be expected,” Thompson said at the event. “The good news is that there has been a large decrease in repurchase requests since their peak in early 2022, as the Enterprises have worked through loans originated during the refinance boom.”

Thompson went on to say that both Freddie Mac and Fannie Mae have examined their existing processes and practices, which include improving the language in selling guidelines and providing more consistent feedback to lenders on buybacks to minimize ambiguity during the underwriting process.



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Mortgage rates trend down for the third straight week


Mortgage rates fell this week as the October inflation report drove down the yield on the 10-year Treasury. On Thursday, investors priced in a 99.7% chance that the Fed will hold interest rates steady in December, according to the CME Group’s FedWatch tool.

The 30-year, fixed mortgage averaged at 7.44% as of Nov. 16, according to Freddie Mac‘s Primary Mortgage Market Survey. That’s down six basis points from last week’s 7.5% and up from 6.61% the same week a year ago.

HousingWire’s Mortgage Rates Center showed Optimal Blue’s average 30-year fixed rate on conventional loans at 7.409% on Thursday, compared to 7.444% the previous week.

However, there is room for mortgage rates to fall further, according to Bright MLS Chief Economist Lisa Sturtevant. Historically, the gap between the 10-year Treasury yield and the 30-year fixed rate mortgage rate hovered around 180 basis points. The current 30-year mortgage rate remains 280 basis points higher than the bond yield.  

“The combination of continued economic strength, lower inflation and lower mortgage rates should likely bring more potential homebuyers into the market,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Mortgage applications increased for the past two straight weeks thanks to the continued decline in mortgage rates.

Healthier economic data is a sign of better days ahead for the housing market

In October, core inflation, which includes goods and services excluding volatile food and energy, slowed on a monthly basis, indicating that the Fed’s restrictive monetary policy is yielding results. The labor market also cooled in October. However, mortgage rates will not come down quickly, Sturtevant cautioned, nor will they go back to the sub-5% level recorded since the Great Recession. 

“However, some homebuyers are trying to act opportunistically this fall to take advantage of the dip in rates,” she said.

“A major constraint continues to be very limited inventory. For those homebuyers who can wait, the spring will bring more new listings and lower mortgage rates.



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Significant shifts in real estate team performance: Streamlined


The third quarter of 2023 shows significant shifts in the performance of teams reflecting both the decline in housing sales activity and the pressure on margins occurring throughout the brokerage business, according to the Streamlined Quarterly Team Benchmarking Report, which looked at the financial performance of more than 200 teams across the nation.

This report covers the period from April 1, 2023, to June 30, 2023. In five of the six size categories of teams both gross profit margins and net income margins declined from the second quarter 2023 results.

Steamlined, based in Arizona, has a roster of hundreds of U.S. real estate teams and individual agents as clients for their accounting and bookkeeping services. The firm confirms actual financial and operational details of these businesses and assemble the data in useful benchmark studies to help their clients assess how effectively they are operating. 

“This is extremely valuable information, not only for teams but also for the brokerage firms with whom they are affiliated,” says Steve Murray, senior advisor to HW Media. “A clearer understanding of the performance of teams helps everyone understand the impact of the growth of the organization and performance of teams.”

The latest financial insights for the residential real estate teams and agents present a picture of resilience and strategic adaptability, even in the face of shifting economic landscapes.

To note, the financial data sets analyzed in Q3, 2023 are the same number of data sets in Q2, 2023. This consistency is a testament to the solid foundational practices that these businesses have established, which is crucial for long-term sustainability. 

Despite the anticipated reconfiguration in revenue streams—with a notable contraction in the number of teams closing between $800,000 to $1.5M in annualized revenue—the broader context remains one of continued activity. This realignment can be viewed as an evolution in market dynamics, with sales dispersing into lower revenue categories (Gross Commission Income), teams and agents are still running profitable companies. For those managing real estate businesses, this signals an environment ripe for strategic repositioning and diversification.

Most teams saw a decrease in gross margin

Teams in five of the six size categories saw a decrease in Gross Margin (GM), with the smallest sized teams (annualized revenues of less than $300,000) having the greatest decline from 83% to 76%. 

Teams with annualized revenue between $800,000 and $1.5 million were the only category that experienced an increase, with their GM rising from 65.1% to 67.2% from the second quarter to the third quarter.

“It is normal to have gross margin decline during the course of a calendar year,” says Steve Murray, founder to RTC Consulting and a senior advisor for HousingWire. “As agents grow their volume during the course of a year, the share of gross revenue paid to them rises under most commission plans. This is also in line with what occurs among brokerage companies, in general. The only category that saw a rise ($800,000 to $1.5 million) is also the category that had a significant decline in the number of teams in the category. 

“We suspect two things may have happened,” says Murray. “Some teams in this category suffered disproportionately from the decline in sales and dropped down in size leaving a smaller group of better run teams.”

On the other side, a number of these teams grew larger and moved into a larger category. “Weaker firms shrank and stronger teams grew faster than the market,” says Murray. “The remaining teams in the category were the strongest of the category.”

Net income declines

In five of the six categories Net Income (NI) declined with the smallest category of teams seeing the largest absolute decline from 49.3% to 40.6%.

In terms of percentage decline, however, both the smallest teams and those teams with annualized revenues of $1.5 million to $3 million had roughly the same decline of approximately 20%.

The correlation seen in the first two quarters of 2023 remains true for the third quarter. The smallest teams have the highest NI percentage while the largest teams have the smallest NI percentage.

“The combination of the decrease of gross margins and the increase in operating costs had the expected impact of lower profit margins for teams in five of the six categories. The decline in annualized existing home sales also had an impact that may have been the biggest impact. 

“The third quarter of a calendar year is normally the highest sales period of the year, but this year, we saw housing sales decline versus both Q2 2023 and Q3 2022,” adds Murray. “Given all these factors it is surprising how durable the results were.”

Shift in teams in each category

One interesting outcome of the Q3 2023 results was the significant shift of the number of teams in each category. For instance, teams in the size category of revenues between $800,000 to $1.5 million declined from 66 in the Q2 2023 to 46 in Q3 2023. Other big movements were that the number of teams with annualized revenue or $300,000 to $550,000 increased by 14, going from 30 to 44. Teams with annualized revenue of $1.5 million to $3 million also increased by eight, going from 45 to 53.

“The significant shift of a large number of teams out of medium-sized teams to both smaller and larger team categories would seem to indicate that not all teams are alike,” says Murray.

“Under the stress of declining home sales and fewer leads at the top of the funnel, some teams owners are as likely to step up their own listings and sales to generate the income to finance their team and their lifestyle. This is not unusual for teams or any real estate agent’s practice.” 

Some teams will prosper in this kind of a downturn and others will seek to optimize profit in the short run by cutting costs and increasing personal production rather than by investing scarcer dollars into growth for growth’s sake.

Teams in all six categories had an increase in their operating costs.    Teams which had the largest increases in costs were those with annualized revenues between $550,000 – $800,000 (costs up 2.8 points from 30.7% cost of operations to 33.5%) and teams with annualized revenues between $1,500,000 – $3,000,000 which saw their operating costs rise from 29.0% to 31.5%)

Strategic financial oversight at play

The trend towards decreased profitability percentages does not overshadow the evident strategic financial oversight at play. Businesses are clearly demonstrating proactive expense management, an essential skill in ensuring business health. This foresight is particularly evident in the way companies have leveraged the scalability of their variable expenses, ensuring they remain positioned to maintain profitability. This ability to pivot and adapt cost structures in response to revenue fluctuations is a hallmark of agile and forward-thinking businesses.

As presented in the data, an increase in operating expense percentages across all tiers is certainly a challenge; however, it also reflects a calculated investment in two critical growth areas: Salaries and Lead Generation.

By maintaining these areas, businesses are investing in their workforce and future sales pipelines, laying the groundwork for future growth and market share expansion.

Moreover, the minimal fluctuations in general and administrative expenses reveal a tight control over the day-to-day running costs, with businesses showing they can keep a lid on the majority of their expenses despite a tougher economic climate.

Overall, the narrative here is not one of decline but of calculated adjustment and strategic realignment. The real estate businesses that are holding their ground in these times are those that are demonstrating agility, financial acumen, and a commitment to investing in their core assets—people and prospects.

With these strategies in place, there’s every reason to be optimistic about the capacity for real estate businesses to navigate current market shifts successfully and emerge even more resilient.

Streamlined, RTC Consulting and HWMedia are teaming up to share this data with our readers to help create transparency in the results of over 200 teams. We will publish these results on a quarterly basis roughly 45 days after the end of each calendar quarter.

David Pittiglio is the CEO of Streamlined Business Solutions.



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Homebuyers made larger down payments as mortgage rates surged in Q3: Realtor.com


Homebuyers are forking over larger down payments to offset higher borrowing costs thanks to mortgage rates hitting multi-decade highs.

On average, homebuyers put down 14.7% of the home’s purchase price for a primary home in Q3, up from 13.6% one year ago, according to a Realtor.com report. The median down payment was $30,000 in Q3, up from $27,300 the same quarter a year ago.

Meanwhile, the median home sales price grew 25.4% between Q3 2020 and Q3 2023, making the increase in down payment size even more significant. 

Typical down payments for vacation/second homes and investment properties were 28.2% and 28.3%, respectively, in Q3 2023, up from 26.6% and 26.8% the same quarter a year ago. The typical down payment on a second home or investment property was more than double that of a primary residence in the third quarter.

Realtor.com found that the typical down payment as a percentage of a home’s purchase price increased in all states, except for Idaho, Arizona, Texas and Utah. Washington, D.C., Montana, Connecticut and Rhode Island posted the highest gains in down payment amount as a percentage of the purchase price.

Northeast markets also performed well as buyers looked to invest their housing dollars in New York City and Boston. The typical down payment as a dollar amount increased in all states except 11 in the South and West.

Faced with affordability challenges, many prospective homebuyers are being priced out of the housing market. Those who are still competing are in a financially stronger position to offer larger down payments. The current high-rate environment is also incentivizing buyers to pay a larger sum upfront to lower their overall borrowing costs.

 “As long as housing market competition continues, down payments are likely to remain elevated,” Realtor.com Senior Economic Research Analyst Hannah Jones said in the report.

“Shoppers looking to navigate these trends may find that relatively affordable markets offer the opportunity to achieve homeownership and limit interest payments by using their existing savings to put a larger amount down as a down payment on a home.”



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Class Valuation acquires AMC Valuation Connect


Troy, Michigan-based appraisal management company (AMC) Class Valuation announced on Wednesday that it has acquired fellow AMC Valuation Connect, formerly a subsidiary of mortgage technology company Mortgage Connect LP.

Class Valuation acquired the company to bolster its position in the appraisal marketplace further, according to an announcement of the deal. Terms of the deal were not disclosed.

“We are beyond excited to be partnering with Valuation Connect,” Class Valuation CEO John Fraas said in a statement. “We share a core value in that we are not afraid to roll up our sleeves to help our clients win. Combining forces is going to be a win-win for all stakeholders.”

According to Class, the two companies align on important issues, including culture, service, efficiency and technology development.

“Given their market dominance in wholesale, their investment in digital and modernization products, combined with Valuation Connect’s technology and centralized retail presence, we feel this combination will add tremendous value to our combined customers,” said Jeff Coury, CEO of Mortgage Connect.

“This collaboration will allow us to accelerate the development of cutting-edge appraisal technology and deliver unmatched value.”

The incorporation of Valuation Connect into the Class Valuation corporate infrastructure will ensure “a seamless transition” for clients, with the company claiming it will help broaden the availability of products and services to existing clients of both organizations.

Class Valuation has been on an acquisition spree. In early 2022, the company acquired Detroit-based AMC Metro-West and its subsidiary Valuation Link. At the time, Class Valuation claimed Metro-West was the “largest independent residential appraisal firm in the country,” and had appraisers in 80 U.S. metro markets.

In August 2022, the company acquired Chandler, Arizona-based AMC AppraisalTek before acquiring Maine-based AMC PropertyVal in December that year.

Other notable acquisitions in recent years included reverse mortgage-focused AMC Landmark Network in 2018 and AMC Janus Valuation & Compliance in 2019.

In 2021, operating as Class Valuation, the company acquired Pendo Management in Kansas City.



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Marketing matters: How to stand out in a challenging mortgage environment


The economic trifecta of rising interest rates, persistently high home prices and record undersupply is making home buying increasingly challenging. Every loan on your book matters more than ever; the next lead you have is your most important. The current business environment has left originators scratching their heads and trying new things.

Luckily, the mortgage industry is cyclical, so let’s take a look at how you can turn a negative into a positive and grab clients’ attention through effective marketing, ultimately growing your book while others’ shrink.

As a pioneer in the non-qualified mortgage space, Angel Oak has seen firsthand how some of the best originators market their business when prices rise and volumes drop. Below are a few ways originators can best present themselves to real estate agents and stand out in a saturated market. 

Recognize the value of lunch and learns

When every loan matters, the value of in-person meetings can’t be overstated. Right now, people are craving face time, so why not offer real estate agents and networking peers that opportunity?

Some of the most effective mortgage originators are differentiating themselves in the crowded market through “lunch and learn” sessions. These impactful one-hour gatherings leverage the intimate setting to provide a lot of value, both for your business and for your referral network.

Lunch and learns serve as more than just a networking event. They are also a chance to exchange knowledge and demonstrate innovative non-QM products, which can sometimes be a daunting experience for the uninitiated. Through these roundtable discussions over lunch (or even dinner), you can help demystify non-QM products while also establishing your credibility in the industry. Think of the cost of the meal as an investment in deepening your relationships, fostering a sense of community and delivering valuable information to help your clients.

Meeting in person adds a level of trust and rapport that virtual meetings simply can’t match. Face-to-face interactions often lead to more open discussions, giving originators greater insight into real estate agents’ specific needs and challenges — and more opportunities to present valuable solutions that can help you stand out from the crowd.

Explore old and new social media platforms

While Facebook, X and Instagram remain staple platforms, branching out to newer social media avenues can yield impressive results.

TikTok, for example, has rapidly emerged as a powerful tool for businesses and presents the opportunity to connect with a massive audience of younger generations eager to learn about home buying. Crafting engaging video content and putting your brand in front of an audience of real estate agents shows that you are adaptive to a changing client demographic (yes, “Realtortok” is a thing). A short, lively, well-executed video can quickly demonstrate an originator’s know-how and present complex information in a digestible way, making it an excellent way to stand out.

LinkedIn is still an excellent way to connect with Realtors and other real estate industry professionals through targeted, thoughtful posts and outreach. It is the most efficient way for mortgage originators to expand their network and target their message to a very specific audience.

Being active and engaged on LinkedIn allows you to share insightful articles, market trends and expert analyses to position yourself as an authority in the mortgage space. If you’re willing to invest a bit more in your educational posts, you can even develop marketing campaigns directly targeted at professionals in your specific territory, ensuring that you’re highly visible to the right audience. 

Prioritize — and personalize — educational content

Starting a blog or contributing to an existing platform can further solidify your position in the industry as a professional educator and resource for real estate agents. A well-researched blog post can resonate with those who seek insights on the latest trends and products, serving their needs while also making you a go-to source of information. Real estate agents may repost an originator’s content piece that can help them market more effectively to clients, which means just a little writing from you can go a long way.

In this difficult mortgage landscape, originators must prioritize building strong relationships with real estate agents. Meanwhile, the increasing use of generative AI means content is quickly becoming depersonalized and bland, so it’s important to zig when others are zagging.

Going beyond the high-level stories already covered in the press and digging deeper to focus on a specific niche or geography lets you cater to the unique needs of agents in different areas, with content that is more relevant and actionable. Effective marketing strategies that lean into the people connection and personalized content are essential in order to generate traction with your audience.

In a high-stakes environment, building credibility and deepening relationships can go a long way toward supporting your marketing efforts. Try incorporating the ideas described above as you plan your 2024 marketing strategy. By mastering these tactics, you will be able to navigate the current market challenges, foster genuine partnerships and differentiate yourself from the competition to ensure long-term success.

Tom Hutchens is the executive vice president of Production for Angel Oak Mortgage Solutions.



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3 Strategies You Must Master to Win Big In a Potential 2024 Recession


This article is presented by RAD Diversified. Read our editorial guidelines for more information.

A potential recession is on the horizon for America and the world at large. There are two lenses through which you can examine the situation: You can fear the unknown and find a way to survive a recession, or you can seize the moment and set yourself up in preparation to take a bigger market share and thrive in it. 

Warren Buffett’s famous quote rings louder than ever today: “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”

Even if you know that now is the time to gear up, the hardest part is knowing what to do. You know you need to invest, but in a volatile market, it seems like you can’t gain any traction in building real wealth that can change your life. 

That’s the gap between elite and everyday investors. The elite have a secret playbook that they go by to build their massive wealth. They tell you to trust the market, and they let their inner circle keep the good stuff to themselves. 

If you want to break into the next level of investing, there are three essential strategies you must deploy on your investments and portfolio right now to unlock your money’s true potential. You can start two of these strategies as soon as you finish reading this.

1. Create Passive Income and Accelerate Your Money Cycles

The first part is pretty straightforward: You must find a way to create passive income for yourself. 

Passive income is the ability to make money without putting in effort to generate that income. Your money needs to make more money for you. Passive income is essential to creating financial freedom, and you will have difficulty achieving financial freedom without it. 

Everybody knows this, and that’s why everyone is inclined to invest in the market and watch it grow. But that’s not enough. If you want to create financial freedom, you must accelerate how fast your money cycles through these investments. 

What does this mean? A money cycle completes when you invest, and you get your return after a particular time. It could be months, years, or weeks, depending on the investment. The key to maximizing your money cycles is completing them faster and deploying more capital each time to create more compounding revenue.

For example, you are a real estate investor and buy a house for $100,000. You flip the house for $200,000 after one year. That’s one money cycle, and you doubled your return in 12 months. 

Now, you can deploy $200,000 on the next house that can get a similar return in a similar time frame. 

Now imagine doing that in multiple cycles simultaneously and rolling them over in their various cycles, creating more and more revenue every few months. The more capital available, the more cycles available for you to deploy. When the cycles start moving faster, and there’s more of them working for you, there’s a lot of cash at your discretion. 

This can happen in the stock market, but as we’ll discuss, there’s a better way. Other types of investments and strategies that are available to you right now are rooted in creating and accelerating money cycles, yet no one talks about them. That’s the part the ultra-wealthy conveniently leave out whenever they provide investment advice. 

2. Tax Efficiency: A Non-negotiable for Preserving Wealth

Tax efficiency is the most critical aspect in building wealth, and it is the most overlooked aspect for those building their wealth for the first time without prior knowledge. As the great Benjamin Franklin said, “A penny saved is a penny earned.” 

It will be (or maybe it already has, as in my case) a huge slap in the face by reality when you finally make that big check—and Uncle Sam took more than his healthy cut from your hard-earned money. 

You need to protect your money from unnecessary and preventable taxes. It’s a non-negotiable strategy for building and preserving your long-term wealth and well-being. 

But how do you do it? The ultra-wealthy have an advantage: Thanks to their teams of high-end bookers and tax planners, they don’t have to think twice about how to move their money to protect it. You should do the same thing they do: Listen to the experts and insiders who can point you in the right direction. 

3. Insider Access and Community Building

It takes a village to raise your net worth and your investments. You can only get so far by doing it on your own. There are too many bases to cover, and something will slip through the cracks. That’s OK. The elite employs a team of experts, planners, and capital raisers to move, protect, and deploy their capital daily. 

Find some experts you can position yourself behind to help you grow your wealth. Whether it’s working on proficient tax plans, finding new investment vehicles, or partnering on certain investment opportunities, doing it with others that you trust not only makes it a little bit easier for you to protect your wealth but can give you access to investments you didn’t even know were possible for you. 

Where do you look for these kinds of experts you can trust? The answer is not as far from you as you may think.

Finding Something to Stand Behind to Build Together and Unlock Your Potential 

The elites are preparing to move the market, and there is one method high-worth investors are utilizing now more than ever. Alternative investments are already gaining momentum in the market, and they’re poised to revolutionize the financial landscape entirely within the next few years.

High-worth individuals are moving their money away from the volatile stock market to preserve their wealth. They allocate more than 50% of their investments into alternative investment vehicles, according to this report by The Motley Fool. 

Alternative investments are rapidly growing, reaching $13 trillion in assets in 2021 and doubling since 2015. The space will continue to grow, as Preqin suggests the alternative investment space can hit $23 trillion by 2027.

But how do you gain access to such vehicles? They seem as if they’re highly protected and require specific stipulations to access these vehicles, but that’s not true.

All you need is experts to show you the way. Invest Wealth Summit is your ticket to these alternative investment vehicles and exclusive wealth-building strategies. Experts and thought leaders nationwide are taking the stage to help everyday American investors not only unlock their wealth-building abilities but also lead them to exclusive investment opportunities you will not find anywhere else. 

This year, Tucker Carlson, Buck Sexton, Tudor Dixon, and Lisa Boothe will join my partner Amy Vaughn and me for this epic, jam-packed three-day event. We will discuss all the principles we outlined in this article, as well as the trajectory of our country over the next 12 to 15 months. Discover how to prepare, anticipate, and dominate the market when the time comes.

Tickets are selling out. Save your spot today here and learn more about America’s greatest investment event of the year. 

Invest Wealth Summit

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Collabra names real estate veteran Charron to its board


Collabra Technology, a real estate marketing and analytics firm, has appointed former Bright MLS executive David Charron to its board of directors, the company announced on Monday.

Charron will work alongside Collabra’s other board members, which include Microsoft CIO Jim DuBois, investor and startup leader Tom Simpson, investment banker Patrick Ringland and president and CEO of Collabra, Russ Cofano.

For 16 years, Charron was the president and CEO of MRIS,  a major multiple listing service. In 2017, MRIS merged with TREND to form Bright MLS. There, Charron served for two years as the chief strategy officer before pivoting to a senior management consultant position. According to his LinkedIn profile, Charron is also currently an advisory board member at Pacaso and a vice president at the Realtor Relief Foundation.

Among his other professional achievements, Charron was a past director at the National Association of Realtors and has racked up numerous industry awards.

In a statement, Cofano described Charron as “one of the brightest minds and most respected leaders in our industry.”

“With our existing and soon to be announced partnerships with leading MLSs to integrate digital ads within listing management, we are laser-focused on becoming the undisputed leader in MLS-integrated digital marketing solutions for agents,” Cofano said. “David’s deep understanding of the MLS industry, and his stellar reputation in real estate generally, will be invaluable as we move down this path.”



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