Most millionaires are created via real estate?

[scfr]

I understand your point, but splitting the average self-made millionaire into two camps - primarily equity investors and primarily real estate investors - is fairly straightforward. My wife and I are millionaires and own no real estate other than our personal home. We made our money through saving and investing. I would think splitting people between those two camps isn't that difficult.

OK, but I do think there are a lot more than 2 camps!

[disneysteve]

OK, but I do think there are a lot more than 2 camps!

Sure. Stocks and real estate aren’t the only ways to grow wealth. They are just two of the biggies. Running a business is a third. Those 3 probably cover the vast majority of cases.

[bjl584]

There are lots of roads to wealth. Real Estate is one of them, and can be very powerful if done correctly. There are tax advantages available to real estate investors that equity investors can't take advantage of. But, real estate isn't for everyone. A lot of people find the idea of owning physical property that needs to be maintained and looked after and the idea of dealing with tenants to be very unappealing. It's a lot easier to buy a few stocks or mutual funds and let them ride for a few decades.

[LivingAlmostLarge]

no RE here to make a million.Just stocks and savings. Probably hit it earlier with equity from our homes but mostly I don't count it.

[Fishindude77]

I know a number of millionaires. Lot's of ways to get there, but those that got there quicker (without inheriting it) did so by something a bit more risky and hands on than simply working their job and investing money in the market. Along with that risk comes chance of failure and we've all seen a few of those stories. If you want to get there while you are still relatively young, you better either have an extremely high income job with tons of excess $$ to invest, or you better do something other than passive (stock market) investing.

[LivingAlmostLarge]

I know a number of millionaires. Lot's of ways to get there, but those that got there quicker (without inheriting it) did so by something a bit more risky and hands on than simply working their job and investing money in the market. Along with that risk comes chance of failure and we've all seen a few of those stories. If you want to get there while you are still relatively young, you better either have an extremely high income job with tons of excess $$ to invest, or you better do something other than passive (stock market) investing.

We hit ours in our 30s by investing in the stock market and saving. But I think if we get to that next level of money, it will be due to starting a business. I think if we keep working and saving for the man we would be conservative and hit say $5M in less than 7 more years. BUT the way we are doing it now we're attempting to have $10m+ in less than 2 years. So I can definitely say that making a lot takes a lot of risk. But you can get there saving and investing conservatively.

[Nirego]

I guess in the past 10 years it's all about IT field, lots of people became rich who created smth in this area

[Michaelchif]

You can start only by looking at all of the youtube videos where people stop by the ones with the best and most expensive cars, and you'll see that most of them are real estate agents. If you also look at the statistics of different countries, you will also see a lot of millionaires who work in this kind of business. I even know myself a real estate litigation attorney, and he has a lot of friends who work in the same field as him, and only one in fifteen people don't become successful and don't live with a high income. I am sure that you didn't search well if you couldn't find any reference on this subject.

[myrdale]

Most reach the millionaire status by investing in their 401(k) or IRA. It is slow. It is boring. It works.

Dave does have a good video where he discusses what the single key factor in achieving the first million was. It was just the discipline to invest the money every month and not touch it.

Other key factors: Graduate high school. Wait until your past 20 to get married. Wait until you're married to have children.

Having a budget and living with in it, debt free also helps.

[myrdale]

You can start only by looking at all of the youtube videos where people stop by the ones with the best and most expensive cars, and you'll see that most of them are real estate agents.

Graham Stephan is good, the Bigger Pockets guy is good also. Real estate is a path to wealth, but don't be taken in by shiny cars and lavish life styles. If you want to sell real estate you've got to put in a lot of work.

If you also look at the statistics of different countries, you will also see a lot of millionaires who work in this kind of business.

Please post a link to these statistics.

I even know myself a real estate litigation attorney, and he has a lot of friends who work in the same field as him

I know a guy who pumps septic tanks, and he has a lot of friends in the same field as him, and some are very wealthy.

only one in fifteen people don't become successful and don't live with a high income.

I find this statement very questionable.

I am sure that you didn't search well if you couldn't find any reference on this subject.

Please share.

[disneysteve]

Myrdale

[amarowsky]

Sure. Stocks and real estate arent the only ways to grow wealth. They are just two of the biggies. Running a business is a third. Those 3 probably cover the vast majority of cases.

I think this is pretty fair (3 groups, for "primary mode of wealth gain"

Primarily earned though : Equities, Real estate, and Started a business being the 3rd.

I remember having heard the same thing as OP, and somewhere placing it on this forum. And getting nearly the same response from the gang as OP is getting here. (so I discarded that idea my common thoughts).

I know a only a few who made MOST (90%+) through R.E. Actually my Dentist kinda makes me think of an Inverse-Michigan version of Disney Steve (or what I imagine his MI-Dental doppelganger is like) . He was nervous about Wall-Street and avoided it because he didn't understand/trust it. So he invested in what he kind-of understood, which was R.E. Started w/ renting his residence when he 1st moved up, and eventually adding unit by unit, he did quite well for him self almost exclusively in R.E. (until index investing became introduced and open to growing retail investors).
*note - he wound up turning this into a business closer towards his retirement. His son wound up running a property management company, so he moved into 2/3 groups towards the end of his working career.

Personally, I've probably slightly have generated more personal value to my overall assets through Real estate, than equities. And I've definitely put more money into equities over the years....

I was one of the "very fortunate" ones to have bought a home @ the trough @ of the housing crisis. So I had nearly a 3-4 x return on my primary residence. (*no "cunning" on my part here, merely super super convenient time in my place, and event in the market).

Most I know who's hit the "million" mark , without taking the safe/long route of W-2 + 401k savings = Business 4 sure.

I'm a mix of probably 40% R.E 40% equities and 20% Business (although my business is primarily easing homes to tenants + some very very light royalties income from some stuff i've made)

[myrdale]

Myrdale "don't feed the trolls"

In general, I am not in disagreement with you. A one post account making wild claims, and bad English, would almost certainly be a troll. But I don't know for certain that they aren't from India and English isn't their first language, or that they aren't 10 year old.

I try to take all post at face value, even if I have to pinch my nose a little with the assumption ya'll will swat them eventually if they are a spammer.

In the mean time, the point isn't to convince them that they are wrong, but at least have an opposing opinion, for that future newbie who comes across the post.

[james.hendrickson]

Myrdale

Gotta admit I chuckled a bit at that one.

[Romanstrek]

Personally, I don't believe very much in real state even though we have bought a new house to be refurbished.
The federal reserve is rising rates so let's just wait for some months and we will see lots of families losing their homes.