7 Reasons Why You Should Invest in Real Estate
- Passive Income: Money earned from sources other than a traditional job, requiring little time or effort.
- Tax Benefits: Examples include write-offs and deductions.
- Leverage: Amplifies profits.
- Save Time with a Syndication: Effective content movement.
- Appreciation: The gradual increase in the value of a property over time due to shifts in the real estate market, and improvements made to the property itself.
- Cash Flow: Money coming in and out of a company to and from you.
- Real Estate is a Tangible Asset: Your money and earnings are protected from inflation advocates.
The Wealth Gap
A study by the Selig Center for Economic Growth found that the average lifespan of a dollar (i.e. the number of times money circulates) equates to:
- 6 hours (not even 1 day) in the African American community.
- 1.5 days in the Latino community.
- 28 days in the Asian community.
- 19 days in the Jewish community.
- 17 days & up to an unlimited number in the white community.
Jan 25, 2021
In 2016, the typical White family had eight times the wealth of the typical Black family and five times the wealth of the typical Hispanic family.
In a 2019 survey, White families had the highest level of both median and mean family wealth, at $188,200 and $983,400, respectively. Black families' median and mean wealth is less than 15 percent that of White families, at $24,100 and $142,500, respectively. Hispanic families' median and mean wealth is $36,100 and $165,500, respectively.
Fun Facts About Real Estate
“90% of all millionaires become so through owning real estate.” - Andrew Carnegie
This famous quote from Andrew Carnegie, one of the wealthiest entrepreneurs of all time, is just as relevant today as it was more than a century ago.
Wealth Disparities by Race (2022)
Black Families
- Median Wealth: In 2022, the median wealth of Black families was $45,000, reflecting a 66% increase from 2019. However, this figure still falls significantly short compared to other racial groups.
- Share of Total Household Wealth: Despite making up 11% of all households in the U.S., Black families collectively owned only 2% of the nation's total household wealth
- Wealth Compared to White Families:For every dollar of wealth held by the median white family, the median Black family held just 16 cents.
- Black-White Wealth Gap: : The gap between Black and white families' median wealth grew to $242,000 in 2022, an increase of $47,000 from 2019.
The wealth gap between Black and white families has deep historical roots, with discriminatory practices like redlining that restricted opportunities for Black families to accumulate wealth. These systemic barriers, combined with the generational transfer of wealth, make it difficult for Black families to close this gap.
Hispanic Families
- Median Wealth:In 2022, the median wealth of Hispanic families was $61,000, showing a 38% increase from 2019. While this is an improvement, it remains below the national average.
- Share of Total Household Wealth: Hispanic families represented 14% of U.S. households but owned only 4% of total household wealth.
- Wealth Compared to White Families:For every dollar of wealth held by the median white family, the median Hispanic family held 21 cents.
- Hispanic-White Wealth Gap: :The wealth gap between Hispanic and white families grew to $226,000, up $48,000 since 2019.
Information gathered from article from the Federal Reserve Bank of St. Louis