How to Build Personal Wealth Through Real Estate Investment
Learn with Ed Parcaut an experienced professional in the US mortgage industry, with over 25 years of experience as the founder and CEO of Lending for Living.
Real estate investment can be a great way to build personal wealth, but it can also be intimidating to those who are new to the game. In this video, Ed Parcaut, founder and CEO of Lending for Living and author of "Financial Freedom: Building Personal Wealth Through Homeownership," provides practical advice and insights on how to create personal wealth through real estate investment.
The current state of the real estate market may surprise some outsiders, as Parcaut notes that in certain states like California, there are multiple offers on properties and bidding over the asking price. This may seem reminiscent of the 2008 crash, but Parcaut emphasizes that there are significant differences in the market today. In 2008, there were 3.5 million properties on the market, whereas today there are only 46% of what the inventory was last year. This lack of inventory is due in part to the low-interest rates that were prevalent in 2020 and 2021, which led to many people refinancing their loans and staying put rather than selling their homes and moving up.
For those looking to invest in real estate, it's important to understand that the market is currently a seller's market, with real estate brokers making money. However, this doesn't mean that there aren't opportunities for individuals to build personal wealth through real estate investment. Parcaut notes that it's possible to start small by purchasing one property and then looking at its appreciation before taking further steps. He also emphasizes that it's easy to purchase a home in the United States, with government programs that allow for low down payments.
One common concern among potential investors is whether they should buy now or wait for the market to shift. Parcaut believes that there's no need to wait, as there's a shortage of homes in the United States and a significant need for more housing. He notes that we need to build 17 million houses over the next decade to get caught up on the number of homes we need for people, meaning that house values are likely to continue to rise.
Of course, there are risks associated with real estate investment, and it's important to be mindful of these risks when considering investing. However, with the right research and planning, real estate investment can be a powerful tool for building personal wealth.
In conclusion, Ed Parcaut's insights on real estate investment provide a valuable starting point for those looking to build personal wealth through this avenue. By understanding the current state of the market and taking advantage of government programs that make it easy to purchase a home, individuals can begin building their personal wealth through real estate investment.
