Copyright © 2005 Mike Colpitts
Real Estate Add
http://RealEstateAdd.com
The over-whelming majority of America's wealthiest families have made their fortunes in real estate, according to a new study.
The survey, conducted over a two-month period before the end of 2005, indicates those surveyed made their fortunes investing in real
estate. The study was conducted by Real Estate Add.com, which is an information driven website.
Many start out investing in single family homes, par-lay their profits into other real estate and discover wealth in investment real estate. The
stock market has produced many wealthy individuals, but not like real estate. Only eleven percent of the 500 respondents surveyed said they
made their fortunes in stocks or other investments.
An over-whelming majority of 83% of the Nation's wealthiest families surveyed made their wealth investing in real estate. Only 11% made
their first million dollars in the stock market or other investments. The full report may be read on the Real EstateAdd.com website.
Fifty-one percent bought their first few investment properties and waited long enough for the real estate market to appreciate to make
substantial profits. Nearly all got financing to start. Some 92% said long term planning was the key to their success.
Only 10% indicated they made great profits by buying fixer-uppers or other properties they made repairs to and sold quickly.
Flipping properties, which is buying real estate and making either repairs to the property or taking advantage of a rapidly appreciating market
without making any changes and selling them for a great profit, is the exception to the rule rather than the norm, according to the study.
Most real estate investors who are in the investment real estate market for more than 5 years, which is considered a long term investor in
real estate, make their profits over more than double the initial amount they invested. That's understandable when there are real estate
markets like Portland, Oregon, which has tripled in price in the last 10 years.
Other places like Destin, Florida, which is a resort real estate market and as such is leading the real estate industry growth in the second
home market, has seen property values double in the past five years. The Silicon Valley, home of the high tech industry in San Jose, California
has seen prices increase at even higher levels.
There are many places like that in the Nation's real estate markets from coast to coast. However, there are still some great buyers markets
where there are shortages of investment real estate for tenants to rent.
Real Estate economists compare the trend to other forms of investing, but caution investors to have a long term plan to cover expenses in
case there are unexpected periods of vacancy. Some investors in today's real estate market have purchased properties without sufficient
funds to cover expenses in case tenants suddenly move out.
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Mike Colpitts is the publisher of Real Estate Add.com, which provides up to date real estate market information on residential
real estate for all 50 states at http://RealEstateAdd.com.
Mike has been counseling real estate investors since 1989.
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Copyright ©2007 by Quick Cash Real Estate System™, QCRES LLC. All rights Reserved.