The Personal Finance Podcast - 21 Ways to Invest in Real Estate (8 Ways are Completely Passive!)

Episode Date: June 9, 2021

57. 21 Ways to Invest in Real Estate (8 Ways are Completely Passive!) Got questions? Ask me on Instagram Here. @mastermoneyco This is the fastest way to get a response from me.  Sponsors Thanks to Fundrise for sponsoring this episode of the podcast! Check them out at www.fundrise.com/personalfinance Thanks to Ladder for sponsoring this episode of the podcast! Check them out at www.ladderlife.com/pfp,  Want to Support the Show? Follow on Spotify or Follow and Leave a 5-Star Review on Apple Podcasts! Today We Discuss:  How real estate can make you a millionaire  Passive ways to invest in real estate  Active ways to invest in real estate  How to buy residential real estate  Creative ways to invest in real estate  More Episodes You Will Love:  How to Sell a House for Double What you Paid For It House Hacking How you Can Have a Free Car for Life! 5 Ways Rental Properties Will Make You A Real Estate Millionaire How to Buy a House (and Have Instant Equity) Check out all the Stuff I Recommend!  M1 Finance Open a Roth IRA Personal Capital Free Wealth Management and Budget App and Fee analyzer!  CIT BANK (Best Savings Account) Best Personal Finance Books  The Simple Path to Wealth - J L Collins  The Millionaire Next Door - Thomas Stanley I Will Teach You To Be Rich - Ramit Sethi  Rich Dad Poor Dad - Robert Kiyosaki ** Some links may be affiliate links and we earn a small commission at no extra cost to you. We only recommend products we truly believe in.  Check us out on social fam!  Twitter Dollar After Dollar Instagram www.thepersonalfinancepodcast.com www.dollarafterdollar.com Learn more about your ad choices. Visit megaphone.fm/adchoices

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Call 16-531-2600 or visitconnectsont.ca. On this episode of the Personal Finance Podcast, we're going to talk about 21 ways that you can invest in real estate. What's up, everybody, and welcome to the Personal Finance Podcast. I'm your host and founder of Dollar After Dollar.com. And today on the Personal Finance Podcast, we're going to talk about 21 ways that you can invest in real estate. If you have any questions about this episode, hit me up on Instagram at Dollar A-F-T-R-Dolar. And follow us on Spotify, Apple Podcasts, or whatever podcast player you love listening to this podcast, too. And if you want to help out the show, leave a five-star rating and review on Apple Podcasts.

Now, what I want to do today is give you a bird's eye view of real estate because I'm getting a lot of questions from folks asking me, how can I invest in real estate? But the key to this episode is I'm going to show you eight ways that you can invest in real estate passively. And a lot of you may not have known that you can invest in real estate passively. But there's a bunch of different ways to do this. And there's a abundance of opportunities out there in real estate. Real estate is one way to truly build wealth extremely quickly. And I've never made money faster than I have in real estate.

You can leverage money. There's a bunch of different ways that you can utilize it. But it is a way to truly accelerate your wealth. wealth path. So I'm going to show you the 21 different ways today so that you can look at all the options to say, hey, a couple of these interests me. Maybe I'll go after one and attack it one at a time. Now, one thing I want to talk about before we get into this episode is that you need to focus on one thing at a time. If you're going to go into real estate, you need to hone your focus in and you need to pick one thing and go after it. Then you can upgrade to the next thing. Now, if something is

extremely passive, like we'll show you a couple options here of things that are extremely passive, then maybe you can do one of those extremely passive things and then some of the active real estate as well. But to try to do a bunch of different things like flipping houses and rentals and doing wholesaling and doing all these other things at the same time is not in your best interest. Focus on one thing, master one thing, and then after you master that, you have the systems in place, you have your business in order. Then you go on to the next thing because a big mistake people make is they jump from thing to thing to thing. But if everybody knows you as the guy who buys rentals,

that's going to tremendously help your business in the long run for referrals and finding properties and things like that. And some of the reasons why I wanted to show you some of these passive ways to invest in real estate is for you to understand if you're working full-time, you don't have to be a property manager and manage properties and take phone calls and go fix toilets and go fix properties.

You don't have to do that. You can passively get real estate exposure. so that you have a diversified portfolio and you're investing your money in physical assets. And I believe anyone who is an interest in real estate should have real estate exposure. Now, if you haven't heard the episode where we talk about the ways that real estate makes you a millionaire, that's a great episode to go back and listen to because real estate produces a number of different things for you to catapult you to millionaire status, everything from cash flow to tax value, to leverage, to appreciation. And we go into detail in that episode.

So it's definitely one to listen to if you have not heard that episode. Now, let's get into the passive ways to invest in real estate. So the reason why I want to show you guys the passive ways to invest in real estate first is because a lot of you have careers, you have full-time jobs and you're working, you have kids, you don't have time to potentially go out and find properties right away. But you still want to dip your toes in the real estate game. And if you're interested in real estate, at the time I'm recording this in 2021, real estate's at an all-time high.

So passively investing in real estate is a much better thing to do, potentially in your area, unless you can find good deals, than to go out and buy properties overpriced. Because real estate is all about making money on the front end. When you buy the property, that's when you make your money. You don't make your money by forcing value into the property later on. you make your money when you buy the property. So everything in real estate is about running your numbers. And running your numbers is a math problem.

That's all it is. It's a math problem. So we'll have an episode coming up on exactly how to run your numbers if you're interested in real estate because it's a very systematic way to do this. And the way that I do it will help you protect yourself from anything that could happen to that property. So understanding these passive ways will allow you to just have different avenues to be able to invest in real estate.

So let's get into it. Number one, crowd sourced investing. So you've heard companies like Fundrise out there who allow investors to crowd fund properties. You can contribute a certain amount of money. It's almost like having a brokerage account. So you can contribute $1,000, $5,000, $10,000, $100,000. You have different options that you can get into properties.

And what Fundrise does is they're fund managers that put together portfolios of properties. So maybe they'll buy an apartment building. or they'll buy a mixed unit building, which is having retail on the bottom and apartments on top. Maybe they'll buy a shopping center or an outlet mall or something along those lines. And what they do is they put together these properties and they crowdsource their money from a bunch of different individuals who are each putting in $1,000, $5,000, $10,000. And then when that property makes money, then you split the profit.

So you earn money on dividends and things like that. it's a great way to get into real estate without actually having to go into buying physical property. Because what this does is it still allows you to have cash flow from the dividends and you get a great return on your investment. Number two, real estate notes. So real estate notes are when you lend people money so that they can buy real estate. So one of the coolest things about this is you actually are acting as if you're the bank and you're lending people money. and then you make money off the interest when they are paying their money back.

So for example, private real estate notes when you do things like that, you can usually charge a much higher interest rate than when you are actually getting a loan from the bank. So for example, as I'm recording this episode, the interest rates are extremely low. They're like 3%. Well, if you're doing a real estate note,

you can get more like 6, 7% when you lend money to someone. This is also great because you can collect cash flow. So it allows you to have cash flow every single month because you're collecting that 6% every single month, it's going back into your pocket. Now, what if they don't pay? What do you get?

Well, what you do is you put the property that they're buying as collateral. So if they don't start paying their notes, all of a sudden, you get the property. So if that did happen, you would still get your money back out of the property and still have the additional cash flow from previously. Now, the downside to this is if the person doesn't pay,

it becomes a more active thing because you have to chase them down. If you want less headaches for something like that, if that situation arises, that may not be the perfect situation for you. Maybe you want to go back to crowd fund investing. But it can be very profitable, especially once you get this going and you have multiple notes going. It can be very profitable and a lot of people have built wealth off investing in real estate notes. Number three, you can be a hard money lender. Now, the difference between real estate notes traditionally and a hard money lender is a hard money lender is usually it's a real estate investor.

They're allowing real estate investors to borrow a lump sum of cash to, say, purchase a property or to improve a property. And they're charging a much higher interest rate because they are planning on getting their money back within six months a year, something along those lines. So the interest rates jump up much higher, somewhere between 12 to 15%. So you're investing, say, $100,000 and giving it to an investor so that they can buy a rental property and fix it up. Well, you're going to make 12 to 15% within three to six months because what their goal,

is to pay you back and then you use the property again as collateral. So this is another way to lend money but make a higher interest rate. Now, as with anything, a higher interest rate typically with hard money lending also creates increased risk because if they run out of money because they're flipping a house or something like that, then you have the increased risk of that. But it's a way to make much more money and if you can secure it properly, then the risk is significantly reduced. Number four, reits. Now, reits are truly passive. their real estate investment trusts, just like crowd fund investing is. Reeds are truly passive.

So what reits are, they trade like a stock on the stock market. And they're a compilation of a bunch of different properties that companies like hedge funds and things like that will actually put together and they trade like an ETF almost. So you can think of a reet almost like an ETF, but they're buying properties and they trade on the market. So some of them, the cool thing about some of them is they have high dividends. So usually their dividends are much higher than even, say, a dividend. stock, there'll be anywhere between 4 to 8%. Some of them go real high, but the higher the dividend on

reits, typically the risk is increased. But it's a truly diversified way to buy real estate stocks. And you can also buy REITs. So it's an ETF with a bunch of REITs inside of it. And that'll really diversify your portfolio. The thing about ETF REITs is typically the dividend is a little bit lower than if you buy individual REITs. Number six, Real estate mutual funds are index funds. So there's also index funds out there that trade reets inside. So they trade just like a mutual fund, whereas the ETF trades like a stock. The REAT mutual fund trades like a mutual fund, which means you can buy and sell at the end of each trading day.

But it's just another way that you can be well diversified with a bunch of portfolios in there. Number seven, and this is one that a lot of people don't think about, but it's very common, is stocks with real estate exposure. Now, what's a great example of this? Daddy loves himself some Home Depot. I love Home Depot as a stock, and I love Home Depot the store. The same thing goes for something like Lowe's. But what else can you buy outside of Home Depot and Lowe's? Because those ebb and flow with the real estate market.

Home Depot and Lows have exploded as the real estate market has exploded. But you can also look at things like hedge funds that buy real estate. You could look at home builders. You can look at real estate companies or even construction companies like Cat or United Rentals or Sherwin Williams, that supply construction companies. all of these have a big hand in the real estate market. So you can get stocks with real estate exposure and have significant exposure in real estate. Now, companies like Home Depot are very high up when you buy an index fund like an S&P 500 index fund.

They're in the top 30 on that group. And as we know, the top 30 is the biggest weight of an entire index fund. So you can have real estate exposure and buy an index fund at the same time. But if you like individual stocks, then look at some of these companies as well because this gives you real estate exposure. And then number eight, you can be a cash partner. So this is a really cool strategy. And when I got started in real estate, I had cash partners where we would go ahead and invest in properties. And I was the sweat equity partner and they would provide the cash. And then we had a split divvied up that way. So you could be the cash partner. If you have more money than you do

time, then being a cash partner may be something that you want to do. Because you can take your cash and get a sweat equity partner, meaning the person runs the operations, they manage the properties, they manage the tenants, they get them in the building, but they don't put any cash up. And you're putting the cash in and you just have, say, a 50-50 split. And that's how you work it out. But you don't have to do any of the work. It's passive for you because you have the money. So those are the eight passive ways to invest in real estate.

Now let's get into the active ways to invest in real estate where you can buy property. There's something about this time of year that makes you slow down a little. More time outside, more time with family, and maybe a trip or two planned. And in those moments, you start to think, this is what it's all about. But it also makes you think about protecting it, making sure the life you're building, your family, your future is actually secure. And that's where PolicyGenius comes in. PolicyGenius isn't an insurance company.

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Taste. View. And enjoy. Via rail. Love the way. Now, like I said before, before you invest actively in real estate, you have to get an education. You have to understand how to run your numbers. So we'll have that episode coming up soon so that you can understand exactly how to do this.

Because if you do this wrong, it's not just taking away your rent comes in, what's the mortgage on the property, and then you have cash flow. That's not how this works. if you do your numbers that way, you're going to lose money. So you have to understand how to run your numbers before getting into real estate because all it is is a math problem. And then you can understand operations as you're going into buying some of these properties. So number nine on the list is to buy single family homes. This is my favorite way to invest in real estate physically as at this point in time because when you buy a single family home, usually the tenants stay in the property longer. And one of the biggest headaches of buying real estate is having to find new tenants.

someone moves in and they move out, which is typical in apartments and things like that, because people are usually in apartments for shorter periods of time. But if you buy a single family house, a lot of times you're attracting more families and folks will move into those single family houses and stay for longer periods of time because they don't want to move. The other positive of single family houses is that the appreciation is unbelievable. Think of the housing market as I'm recording this episode is nuts right now. So imagine you bought one house a year over the course of the last 10 years. And then all of a sudden this year, the housing market is peaking out. And imagine you sold those 10 houses. The appreciation is bonkers.

You'd be a multi-millionaire. It doesn't matter where those houses are in this country. If you had 10 houses, you would most likely become a millionaire by selling those 10 houses. So the appreciation is bonkers when it comes to single-family houses. And the appreciation grows much more than a lot of other things in these types of situations. And on single-family houses, it's just easier to get alone because people can understand what you're doing with those houses. And you have a lot of different options. Maybe you come into hard times. Well, you can go live in that house if you need to.

It gives you a bunch of different options that you don't have with some of these other types of property. Number 10, multifamily. So there's different types of multifamily properties that you can buy. There's small multifamily like duplexes, triplexes and quadplexes. Those are what I typically buy when I buy multifamily. And then there's mid-range multifamily, which is in. anything above four units, all the way up to say 30 units. Now, this area, if you have a little bit of cash, is a nice bread and butter because it's

too small for the big hedge fund guys, but it's too big for the small guys who just buy the duplexes, triplexes, and quadflexes. So it's a nice sweet spot if you're interested in multifamily. Getting into properties that have like 8, 10, 12, 14 units, that's a perfect sweet spot for some people because the cash flow is decent and at the same time the big guys aren't going to come in and swoop in with cash every single time. And then there's large multifamily apartment complexes, things like that. If you're just starting out, then definitely look into duplexes, triplexes, quadplexes because they have great cash flow, but it's a different tenant clientele. It's a different

game than single family houses. And people don't understand that, but they're two different types of tenants. And you have to understand how to deal with each one because they're completely different. Number 11, mobile home parks. Now, mobile home parks are extremely profitable. Now, you have to have more cash to invest in mobile home parks, but they're extremely profitable. Why? Because you collect rent on the buildings, the mobile homes, and you collect rent on the land. And a lot of people have built tremendous wealth on mobile home parks. Now, I'm not saying you're buying a trailer park that's beat down. You don't have to do that. You could buy 55 and older mobile home parks. You could buy all different types. And there's a lot of them, if you keep them clean and you

keep them nice, you're going to attract a different clientele. So for mobile home parks, it's actually a fantastic investment, but the best way to find mobile home parks is to look for folks who are potentially retiring. They own, they've owned mobile home parks for a long period of time, like baby boomers or things like that, where they just want to retire. Those are where you find the best deals. Now, they're becoming few and far between because all the hedge funds are scooping them up because hedge funds are buying mobile home parks like crazy because they're so profitable. But if you can find one in your area, say a mom and pop owned one, then you have a great chance of getting a nice deal on that. And if you can improve the property, you can make a lot of money.

Number 12, commercial buildings. You can find a lot of value in commercial buildings right now because less people think that we need office space or that we need physical spaces. And is that true? Yes. So there's a higher risk there. But there are commercial buildings that we would still need to utilize. Things like maybe car washes or laundromats or things that have massive anchors. inside the commercial building. What's an anchor? An anchor store is something like a grocery store. So maybe there's a major grocery store within the building that you're buying the commercial

building. Maybe you're buying a shopping center. And the big anchor is, say, a target. Well, if you have a target within your shopping center, then most likely the businesses around it are going to be successful and they're going to be elevated by target being in that shopping center. So if you're going to go that route, look for things like that. Now, if you're going to buy office buildings, maybe the risk is a little.

bit higher, but still needed because companies will go back to work. Not all. A lot of them realize you can work from home, but companies will go back to work. So look for commercial opportunities out that people maybe are not seeing. Number 13, storage units. Now, storage units can cash flow really well, and there are a way that you can buy property and have a bunch of different units. Now, the thing about storage units is you have to actively manage storage units. You have to either have a manager in the office, or there's now new ways where you can have people only sign up online, they get a key code, they move in, they get their keys and locks in an automated system, and so everything can be run online. But one of the best ways to find storage units is the same way,

with mom and pop folks who have owned storage units for a long period of time, and you go in and renovate the units if they need to be renovated, and you can take over that way. Number 14, fix and flip or flipping property. So these are what you see people doing like on HGTV, where they buy a house for $100,000 and flip it for $400,000 and stuff. It does not work like that typically. So typically, you're going to find a property that's in distress, and all of a sudden, you're going to go in there and be able to evaluate all the repairs that need to be done. So this is a second skill that you need to have to be able to operate a fix and flip business.

Now, you could partner with, say, a contractor, and a contractor will be able to tell you, hey, this is going to cost X amount of dollars. And one of my favorite ways to partner with contractors is instead of paying them the total amount on the contract, potentially what you could do is do at actual partnership where they get a percentage of the profit and then you both split the cost and material. That's one way that you could do fix and flips, partner with the contractor, be able to split the cash flow so he's incentivized to actually make sure everything is done correctly. And with a fix and flip, you can make quick cash. So that's the thing with fix and flips. It's not cash flow, but you're making quick cash. And you can

actually build real wealth doing this because let's say you make $10, $20, $30,000 a property, which is much more reasonable than what you see on TV, where people are making $300,000, that usually doesn't happen. It's usually $10,000, $30,000, somewhere in that range, depending on if you do it right now. You can also lose money if you do it wrong because you didn't run your numbers correctly. So make sure you understand those two pieces before you get into this. Number 15, wholesaling. Now, if you don't know what wholesaling is, it's when you're finding properties for investors.

So let's say you have a mailing list and you mail out to houses. You'll see these come in all the time where people will say, we buy houses cash. Those are typically either wholesalers or investors like for fix and flips or for rentals. So let's say you have a list of people and you find houses off market. So off market just means it's not on the MLS or on Zillow or Realtor.com or whatever you guys use. If you find properties off market, then what you can do is then find investors to purchase that property from you when you get a contract on that property. So what you do is you get a contract on a property with an owner.

You meet with the owner. You say, hey, I'll buy this house for $150,000. then what you do is you take that contract and you sell it to an investor who's been looking for properties for say $170,000. And what you've done there is you've made yourself $20,000 for finding the property. So it's basically like a finder's fee, but you're assigning a contract to somebody else. And this is a way that you can actually get into real estate investing without having any money because you get the contract.

You're not putting any money down except for maybe to potentially deposit. You get a contract and then the investor pays the payment. So if you have low money or no money, this would be a interesting option for you so that you can invest in real estate with low to no money. The live and flip. Now, this is something that you can do and still actively invest in real estate, but this is one of my favorite strategies. And this is kind of what I did with my first house.

So here's what you do. You buy a house that needs work, but you're going to live in it. And what you're doing here is you're finding a house that's at a great value because it needs work and you're going to fix it up over the course of the next few years. Maybe you do it every two years because if you do it every two years when you sell the property, your tax liability goes way down if you've actually lived in the property for two years. So let's say that you do this and you buy a house every two years, you live in the property and you fix it up. What's happening there is your house is appreciating. It's going up in value if we're in the right market unless

we had a recession in the middle of you doing this, which I'll talk about in a second. And then you're slowly fixing it up. So maybe the first couple of months you work on the kitchen and you have contractors come in or you do it yourself. The next couple of months you paint the inside and you paint the outside. The next couple of months you fix the floors. You change out all the floors. And then the next couple months you update the bathrooms. So you do it sequentially like that, but you take your time, save your money, make sure you're investing properly into the right pieces that need to be sold. And then after two years, you sell the property for a hundred thousand dollar profit. What's happening here is you're living for potentially free because when you sell the property, the money's coming back

to you, but at the same time, you're also making money for living in a house. I love this strategy because anybody can do it because it's a slow progress strategy, but you can be making 50, 60, 70 grand a year just for living in a house. Now, the key to this is making sure that every time you buy a house, it's one that you'd be willing to live in for 10 years. Because if a recession hits and we all know markets are cyclical, recessions are coming, we just don't know when. So if a recession does hit,

you could still stay in that house and allow the value to recover, or you can use it as a rental property if you want to get a bigger house and maybe upgrade your house down the line. But those are the two options that you want to think about as you're buying a live and flip property.

But I love this because it's the slow game, but you're still making really good money by living in a house and you fix it up over time. Number 17, house hacking. Now, we've had an episode on house hacking. If you haven't listened to that episode, I'll put a link in the show notes. But house hacking is a fantastic way to get into real estate, especially for beginners.

Because house hacking allows you to buy, say, a duplex or a house, and you live in one unit, and then you rent out the other. And what this does, it allows you to live rent-free potentially or live with significantly reduced rent. Because the tenant in your second unit or your third unit or your fourth unit are all paying your mortgage for you. So if you have like a triplex, so if you have a triplex, you can potentially be making money every single month for living in the unit that you live in. And this is great for people who are beginning and starting out, but it's great for anybody as well. If you could find one that maybe is a house in the front and there's a mother-in-law suite in the back, that's a great option as well. But finding

properties that have multiple units so that you still have your privacy, you're not having a roommate in the middle of your house, is the best way I think to do this. Number 18, vacation rentals. So vacation rentals like Airbnb's, they have huge cash flow. Now the one thing with vacation rentals is I don't think you want a lot of them. I think they have a higher risk than other real estate avenues. But I think vacation rentals having a couple of them is a great diversified way to increase the amount of cash flow you get every single month. I just booked a vacation rental and I was doing the math on what the owner makes and he's making a good $6,000 to $7,000 a month on this property. So the cash flow can be massive. And the upside is also massive too, because if it's in a place that you like to go,

then you can go visit that vacation rental for free. So basically, you're buying a vacation house for free. Now, having too many of these, I think, can be problematic. For example, there's a gentleman I know who had 35 of these in northern Florida. And when the pandemic hit, all of a sudden, his business completely collapsed because he had 35 properties that were vacant because people were scared to go anywhere. Now, as the pandemic progressed, he was able to actually find people to come in because people got less intimidated by going and traveling and they thought vacation rentals may be the best option. But I could see like in a recession or something like that, this would be the first thing people cut out. They're not going to travel anymore. So that's where the risk is with these.

So making sure that you actually save some additional cash on the back end with vacation rentals would be something that would be very wise for you if you're going to get into this business so that when times get tough, you still have the cash to back you up. Number 19, you can build a house on spec. So if you have a little more cash and you have, say, a piece of land, you could build a house and you could build a modern house, which is what a lot of people are looking for nowadays, obviously. But building a house can be very profitable, but you have to know what you're doing or partner with an amazing contractor. The other downside to building a house is that it could be a long process. So lately, building has been a long process because the cost of materials have

been going up. That's another risk that you have to factor in here. But if you can do this right and you can build this business, you can build a billion dollar business by doing this. But you have to understand how to do it. Number 20, live in rent. So this is how a lot of people get started in rental properties is they buy a house, live in it for a while as their starter home, and then they move out, upgrade their house, and rent out the property. This is a great way to get started in real estate,

especially if you're looking to buy your first house. And what you do is as you're buying that house, you're running the numbers like a rental property, but you're going to live in it for a couple of years. especially if you want to have a number of rentals, you want to retire with rental properties, this is a great way to start, because this could be your first property, allow you to live for a couple of years,

then as you move out to your next property, you rent out that one. And that's a great way to actually get your hands on a couple of different properties and do it slowly. Maybe every two years you want to do this. So you're going to live in there for two years, fix it up, then rent it out.

Two years later, you buy the next one. Live in there for a couple of years, fix it up, rent it out. Then you're going to do it again over and over and over, again. This is a way that you can get 20 properties over the course of your career just by slowly doing this. Because this is not a get rich quick scheme, guys. You want to make sure that you're safe when you're doing this. And number 21, I know it's been hard to find properties as of late so you can look for companies that do turnkey rental properties. And turnkey rental properties are when you buy a property

and someone else has already run the numbers typically and you have to run your own numbers to check their numbers because a lot of times their numbers may be a little low. And then you go in and buy a property that's already been fixed up, it's already been flipped, essentially, and then you're going to go ahead and rent it out. So typically with turnkey rentals, they already have a tenant in there, and they already have a property manager in place, and then you're just buying these rentals and collecting the cash flow. You make less money on turd key rentals. I'll tell you that right now, but if you don't have time to go look for properties, this may be an option for you. Would I invest in turd key rentals? Most likely not, because the return isn't high enough from me. For some people,

it's plenty. So you can look into that option if you don't have a ton of time to actually look for properties. So these are the 21 ways that I have that you can invest in real estate. So if you don't have a lot of time, look at the passive ways to be able to invest in real estate. If you have a little bit more time or you're just passionate about real estate, then look at some of these active ways as well. Because getting your feet into real estate is going to be beneficial for you. Having some in index funds, having some in real estate, all of these are important. Having this exposure I believe is important because a lot of millionaires have been made in real estate. And it's a tremendous way to build wealth.

It's truly a tremendous way to build wealth. You cannot make more land. And so having this in place in your investment plan is extremely important for most people. Now, there's nothing wrong with not investing in real estate. Don't think I'm saying that. You can invest in just index funds and be fine. But having the real estate exposure just allows you that additional diversification, especially if you're truly interested in it.

And a lot of people are. It's a very cool way to build wealth because you can physically touch it in most cases, and if it's a passive way, you still have those assets that are diversified completely. If you have any questions about this episode, hit me up on Instagram at dollar, A-F-T-R, dollar, and follow us on Spotify, Apple Podcasts or whatever podcast player you love listening to this podcast, too. And please, if you want to help out the show, leave a five-star rating and review on Apple Podcasts. And if you want to hear other relevant shows like this, I'll leave a link in the show. show notes to a couple of our other real estate episodes that you can listen to.

Thank you guys so much for listening and we'll see you on the next episode. Thank you guys so much for listening. And if this is your first time listening, consider subscribing so you never miss an episode. And share this episode with a friend. And don't forget to leave a rating and review on iTunes as well because our goal is to bring as much value to you as possible. And we're trying to spread this message that money can buy freedom. That's what money is there to do is to buy more freedom. So thank you again. so much for listening and I hope you have a great day.