Understanding Real Estate Investing

Buying real estate is one of the surest way to create generational wealth.

US median housing price CAGR is 5.5% over the past 60 years. Out of 8 U.S. recessions, housing prices declined in only 3. The worst peak-to-through was a decline of 19% recorded in the 2008 recession which was real estate led. While housing prices may decline during a recession, rental demand tends to be stronger; providing a natural hedge for multi-family rental properties.

Real estate is significantly less volatile compared to the stock market, and produces strong diversification benefits.

The relative stability of real estate makes it an ideal asset class for investing through leverage, generating significant value creation over a long term buy-and-hold + refinance strategy.

The wealth gap continues to grow simply for one who owns assets versus one who doesn't

One's among largest purchase in their lifetime is their main residence. If you were fortunate to have own a home in the past decades, you will have notice 2 powerful mechanics that make real estate an ideal choice of investment.

1) The compounding effect on appreciation

2) The de-compounding effect on liability