Real-estate investor explains how he invests his money pyramid model

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A freelancer who is financially independent from his real estate portfolio shares the 'pyramid model' that helps him decide how to invest his money

He's not the only investor Insider has spoken to who is doubling down on real estate. believes that real estate is much better from a risk-reward standpointAfter working as an investment banking analyst at a small firm his first year out of college, he transitioned to what's known as the sell side at Credit Suisse in 2012. For eight years, his job involved selling research and stock ideas to hedge funds and asset managers.

The way he sees it,"the S&P 500 index has gone up, on average, 11-12% per year for the last 100 years," he said."With real estate, you can blow those returns away because there are four ways you can make money." If your property goes up in value, that's called appreciation and that's a form of making money. The great thing about real estate is that you can borrow a lot of money to buy the asset, but you don't have to share any of the appreciation, so you're getting what Berkley calls levered appreciation. believes that real estate investing is the most tried-and-true way to generate wealth

Buying property isn't necessarily easy, he emphasized. It requires time, dedication, and tenacity,"but it's pretty straight-forward: If you just buy real estate and you hang on to it for 20 years, you're going to sell it for a lot more than what you paid for it."

 

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