How I’m Building Wealth Through Real Estate And Why You Can Too
Real estate has always intrigued me, not just because of its profit potential, but because it’s one of the most reliable ways to build long-term wealth. While the stock market and crypto world get plenty of attention, I’ve come to believe that real estate offers something they can’t: physical, tangible ownership and the power to weather economic shifts—and even technological revolutions.
Why Real Estate Works for Me
There’s something comforting about investing in something I can touch—bricks, land, doors, and windows. Unlike stocks, real estate is a hard asset, and no matter how advanced technology becomes, people will always need a place to live. That makes real estate AI-proof, recession-resistant, and, in my opinion, one of the best places to grow wealth.
Plus, I love the monthly cash flow I get from rental income. Once I handed management off to a property manager, the income became largely passive. Add in the tax advantages—like depreciation and 1031 exchanges—and it’s clear why so many millionaires have real estate in their portfolios.
But It’s Not Easy—Especially at First
What people don’t always see is how much effort goes into getting started. Learning the market, building a team, raising capital—it’s not something you can do overnight. And those “no money down” ads? Most of them are traps. You need capital, and you need patience.
I’ve had my share of mistakes. Every real estate investor eventually hits a nightmare deal. But I learned from them, and those experiences became the stepping stones to better, more profitable properties.
Location Is Everything
If I could give one piece of advice to new investors, it would be this: location matters more than anything. I focus on areas where people and money are moving—not where they’ve already moved. Population growth, new developments, and business expansion all signal opportunity.
Sometimes, I run what I call the “coffee shop test”—I’ll hang out in a local café and talk to people. Their feedback on the neighborhood often tells me more than any data report. Visiting City Hall is another game changer. I’ve learned more about future development plans and population trends from those visits than I ever could by Googling alone.
I Never Do It Alone—My Team Is Everything
Real estate is a team sport. I’ve got a solid property manager, a trustworthy inspector, licensed contractors, a tax-savvy accountant, and a real estate agent who knows how to find hidden gems.
Each of them plays a critical role. My property manager makes sure tenants are happy and the building stays in good shape. My inspector prevents expensive surprises. My accountant helps me legally reduce my tax burden, and my agent keeps deals flowing.
The Tax Benefits Are Unmatched
What really makes real estate shine for me are the tax advantages. Depreciation lets me reduce taxable income—even when my property goes up in value. Accelerated depreciation gives me bigger deductions early on, which I can use to offset income.
And thanks to the 1031 exchange, I can sell a property and roll the profits into a new one without paying capital gains taxes. That’s allowed me to keep growing my portfolio faster than I could through other investments.
I Always Run the Numbers
Emotion doesn’t guide my purchases—math does. Before I buy anything, I calculate my net operating income (NOI), factoring in taxes, maintenance, management, insurance, and vacancies. From there, I look at my cash-on-cash return or cap rate to decide if a deal makes sense.
In one recent deal, I calculated a 5.7% return. Not bad, but I usually shoot for at least 7% based on my risk tolerance. If the numbers don’t work, I walk away. There’s always another deal around the corner.
Want to Learn More?
I stay sharp by reading the Market Briefs newsletter daily. It gives me bite-sized updates on the housing market, economy, and investing trends. It’s free—and they even throw in a free masterclass when you sign up.
Final Thoughts
Real estate isn’t a get-rich-quick scheme. It takes work, strategy, and a solid team. But if you’re willing to put in the effort, the rewards are real and long-lasting. I’ve seen it in my own life—and I truly believe anyone can do this with the right guidance and mindset.
Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
