What Real Estate Creates 90% of Millionaires (2024)

FAQs

Are 90% of millionaires from real estate? ›

Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.

Real estate investing has played a role in helping to create 90% of the world's millionaires. Real estate is one of the most effective wealth building vehicles and is an important component of a well-diversified portfolio.

Real estate offers a tangible and stable asset class that can withstand economic fluctuations. It's not just about making money; it's about preserving and growing wealth over generations. One of the secrets to millionaire wealth is the creation of multiple streams of passive income.

Federal tax benefits

Because of the many tax benefits, real estate investors often end up paying less taxes overall even as they are bringing in more income. This is why many millionaires invest in real estate. Not only does it make you money, but it allows you to keep a lot more of the money you make.

Shelby Elias | “90% of all millionaires become so through owning real estate.” This famous quote from Andrew Carnegie, one of the wealthiest entrepr... Instagram.

In broader terms, the finance and investment profession has the most millionaires. It also has the most billionaires, with 371.

Many self-made millionaires have money coming in from several places, including their salaries, dividends from investments, income from rental properties and investments they have made in other business enterprises, to name a few examples. If one income stream slows down, there's another that can take its place.

The average IQ of self-made deca-millionaires (over $10M net worth) is 118. The average IQ of self-made* billionaires is 133. The average IQ of self-made deca-billionaires (over $10B net worth) is 151. Of note, average incomes correlate well with IQ, however there is a much lower correlation between IQ and net wealth.

Rather than tying up hundreds of thousands or millions of dollars in buying a home, wealthy people usually just borrow after making a reasonable down payment and researching their options to find an affordable lender.

Out of the 250 top producing agents identified in the Real Trends survey, the following percentages of agents are found in the following five states: California: 44% New York State: 24% Florida: 7%

What type of real estate is the best investment? ›

One reason commercial properties are considered one of the best types of real estate investments is the potential for higher cash flow. Investors who opt for commercial properties may find they represent higher income potential, longer leases, and lower vacancy rates than other forms of real estate.

Real estate is one of the best investments you can make because you can earn double-digit returns with the right deal. Once you find the right deal, you'll have a superior asset compared to stocks and other alternative investments.

Commercial Real Estate Broker: Highest Potential Salary: $296,500. Real Estate Wholesaler: Highest Potential Salary: $360,000+ (12+ deals per year with $30,000 profit per assignment fee) House Flipper: Highest Potential Salary: $392,000 (7+ flips per year with $56,000 profit per deal)

California: 44% New York State: 24% Florida: 7% Massachusetts: 6%

Choose the right career

And one crucial detail to note: Millionaire status doesn't equal a sky-high salary. “Only 31% averaged $100,000 a year over the course of their career,” the study found, “and one-third never made six figures in any single working year of their career.”

How do you align your real estate allocation with your financial goals and risk tolerance? The need for addressing these questions becomes even more crucial when considering that, according to some reports, the average percentage of net worth allocated to real estate for Americans is around 70%.

In new research published Monday by Ameriprise Financial, 80% of Americans with $1 million or more in investable assets said financial planning and investing enabled them to reach that benchmark.