Ah, to be young and insanely rich. You can do it, you know, no matter how crappy the current economy is. The truth is that young wealth can be built while you’re…uh…still young. This website’s founder and namesake, Jason Hartman, is a perfect example, having become a real estate millionaire several times over while still in his twenties.
Today let’s cut through the feel good about yourself junk and learn how to get rich while you’re still young:
1. Invest early and often
2. Skip Wall Street and focus on real estate
3. Income producing properties are the key
That’s really all you need to know to reach the land of young wealth. Start in your early twenties and you, like Jason, should be into millionaire status before you reach 30. The basic strategy works like this. Use whatever equity you can find to finance income producing properties tied to long-term, fixed-rate mortgages, putting as little actual money into the deal as you can. While cash flow from tenants pays your monthly note, the effect of inflation actually erodes the amount of the loan you have to pay back, in real terms.
After about seven years, when property values have doubled, refinance your properties using the same strategy, employing a cash out principle to buy even more income producers. At this point, you are standing firmly in the land of young wealth and at the head of a mini real estate empire.
Enjoy life, young millionaire. It’s only going to get better.
The Young Wealth Team
Flickr / thelastminute