How women can build long term wealth through real estate

Real estate can be a valuable tool for building long-term wealth, especially for women. Despite facing unique financial challenges, such as the gender pay gap and longer life expectancy, women can use real estate to their advantage. I have been fortunate enough to use real estate investing as my primary source of income for my future retirement. I have been an entrepreneur most of my working career, so I did not have the traditional 401K or IRA or even benefits as part of my employment. Investing in residential real estate is my long term plan for wealth building and passive income.

Here are some tips for building long-term wealth through real estate:

1.     Start early: The earlier you start investing in real estate, the more time you have to benefit from compound interest and appreciate in property value. Oh how I wish that I started buying properties in my early twenties. I was 25 when I purchased my first house, but I am so sad that I didn’t keep it as a rental. It would have been a very smart decision in the long run.

2.     Do your research: Learn about the local real estate market, research property values, and familiarize yourself with the buying and selling process. Education reduces your risk. Talk to people who do this for a living. Attend your local REI clubs. Here in Phoenix, ours is called AZREIA and they are a wealth of knowledge for beginners.

3.     Create a budget: Create a budget that includes saving for a down payment, closing costs, and other expenses associated with purchasing property. I can’t stress this enough. You have to make sure you are being very smart with your money. Also, save an additional 20% more for the not-so-fun surprises that always come up during rehabbing a property.

4.     Consider different types of real estate: Different types of real estate, such as residential, commercial, and industrial, can offer varying returns and risks. Choose the type of real estate that aligns with your financial goals and risk tolerance. Again, talk to experts in your area and go with what you know. For most beginners, residential real estate is where they are most comfortable and knowledgable.

5.     Take advantage of low interest rates: When interest rates are low, it's a good time to buy property, as you'll have lower monthly payments and more disposable income to invest in additional properties. I know our rates have taken quite a hike upwards lately, but historically, they are still relatively low. Don’t let this scare you, just budget accordingly.

6.     Be patient: Real estate is a long-term investment and requires patience. Don't make impulsive decisions and be prepared for ups and downs in the market. This is definitely a long game. We went 13 years without remodeling our own home, because we were busy buying investment properties. If you can delay gratification in order to make long-term decisions for your wealth building plan, it will definitely pay off in the end.

7.     Diversify your portfolio: Diversify your real estate portfolio by investing in different types of properties in different locations. This can help reduce the risk of losing your entire investment if one property underperforms. We own properties in different parts of our city. Some areas have increased in both value and rents and others maybe not as much.

8.     Invest in property improvements: Consider making improvements to properties to increase their value and rental income. This strategy has helped us double our income in the last 2 years. A full remodel in certain areas can double your rental income and it provides a quality product to your tenant with almost no repairs during their stay other than normal maintenance.

9.     Seek professional advice: Consult with a financial advisor or real estate professional to discuss your financial goals and determine the best investment strategy for you. Definitely hire a CPA that understands real estate investing so they can guild you in the right direction. Choose a real estate agent or broker that is very experienced in working with investors and preferably owns rental properties themselves.

10. Keep informed: Stay informed on the real estate market and changes in the industry to make informed investment decisions. One of the websites I love is called Bigger Pockets. Joining blogs like this and Facebook Groups can help you create a network of like-minded investors to share your questions and seek advice.

I have been investing in real estate for over 17 years and although it can be a difficult and challenging choice some days, it is by far the best decision I have made for my future. My only regret is not starting sooner and not purchasing more properties earlier on. By following these tips and seeking mentors and professionals, women can build long-term wealth through real estate and secure their financial future.

If you have any questions, I’d love to chat! Just send me a message today.

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