Can you become a billionaire in real estate? (2024)

FAQs

Can you become a billionaire in real estate? ›

Yes, you can become a billionaire with significant real estate holdings and investments. It is unlikely that you will reach billionaire status as a real estate agent. Some of the richest people in the world have achieved their wealth through real estate investments.

Investing in real estate could make you wealthy, but it probably won't happen right away. For many individual investors, it can take years — or even decades — before they start seeing true wealth.

There are 25 billionaires on the 2023 Forbes 400 list who primarily owe their fortunes to real estate. These property tycoons are worth a collective $139 billion—about $5 billion more than the 24 in real estate were worth on the 2022 ranking.

It can be done. In fact, it has been done. But it doesn't happen by luck or accident. This is the first in a series of articles detailing how you, as a newly licensed agent, could set yourself up to be successful enough to to make $1 million in your first year.

Property appreciation is a great way to build wealth, whether you simply own the home you live in or invest in multiple single-family homes. The key to taking advantage of property appreciation is understanding that investing in real estate is often a long-term endeavor.

The 2% rule is a rule of thumb that determines how much rental income a property should theoretically be able to generate. Following the 2% rule, an investor can expect to realize a positive cash flow from a rental property if the monthly rent is at least 2% of the purchase price.

Conclusion. The claim that 90% of millionaires are made through real estate is a myth. While real estate can certainly contribute to wealth creation, it is not the primary wealth source for most millionaires.

90% of millionaires made their money in Real Estate. I became a millionaire without owning a single property. But I own 6 small businesses that make me $725k/year.

In 2022, banking and finance was the industry to which the highest share of the world's billionaires across all age devoted most of their time. Moreover, one fifth of the billionaires below 50 years devote most of their time to technology.

The world's youngest billionaire is 19-year-old Livia Voigt, who is still in university.

How long does it take to get rich in real estate? ›

By continually flipping or renting the homes you live in, your net worth will probably hit the $1 million dollar mark within another 10–15 years and you can continue to get rich in real estate, while everyone else you knew at age 25 is still plodding along with little to nothing in the bank.

Most real estate agents make money through commissions based on a percentage of a property's selling price. (Commissions can also be flat fees, but that is much less common.) Agents work under real estate brokers, and the commissions are paid directly to the brokers.

Yes, you can become a billionaire with significant real estate holdings and investments. It is unlikely that you will reach billionaire status as a real estate agent. Some of the richest people in the world have achieved their wealth through real estate investments.

If done correctly, real estate can be an excellent vehicle for wealth accumulation if you take the time to educate yourself about the process and the best strategies for maximizing profits. If you have cash (a 20% down payment), getting started in real estate investing is substantially easier.

Build Equity and Wealth

As you pay down a property mortgage, you build equity—an asset that's part of your net worth. And as you build equity, you have the leverage to buy more properties and increase cash flow and wealth even more.

There is a lot of money to be made in real estate — which is why it's popular with a variety of investors. Whether you are trying to build passive income or kick off a full-time investing career, there are numerous ways to find success.

While there are plenty of places you can put your money when looking for investment opportunities, real estate is regarded as one of the best ways to build wealth over time.

You can make money in your first year as a real estate agent. You can do it by earning commissions or having a related side hustle like managing short-term rentals. However, if you're planning on making a living out of real estate alone, that will take 18 months on average.

Real estate is one of the most lucrative industries you can join with the lowest barriers to entry. Like anything in life, the more you practice as a real estate agent, the better you get. And in this industry, the better you get, the higher your commissions can be — the only ceiling to success is yourself.