Usually I agree with Codie Sanchez… but not on this one..

real estate is an awful way for you to actually make money. Option 1, you can go buy a single-family home for $400,000, the average price in the US, and then you rent it out to somebody. Well, the average rent nets you profit-wise about $167 a month. So you're taking a $400,000 risk for like a couple hundred bucks a month.

I love Cody Sanchez, but I do not agree with this statement because she's not talking about the business of real estate. All my clients are multimillionaires, centi-millionaires, and some billionaires, and all of them have done so through being in the business of real estate. So they're not just buying stabilized assets and popping them on the market and making a couple hundred bucks a month of rent. They're developing properties. They're making potentially millions. It's very common to make many millions on a development property, or they're buying properties that need to be renovated. They're older properties. They have under-market rent, and they can go in and create value that way and force massive appreciation, increased rents, increased cash flow, and basically having a loophole to not pay taxes on that asset due to bonus depreciation of the asset. So if you're in the business of real estate, you can definitely become a multimillionaire, a centimillionaire, or a billionaire.