Investment Strategies To Build Real Wealth

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In the United States, the median household income sits around $57,617 a year — hardly a livable salary, let alone a wealth-inducing one. Experienced investors and members of The Oracles share their top investment secrets to help you multiply your money.

1. Buy real estate in up-and-coming neighborhoods.
Turn a loan into a real estate fortune by investing in budding real estate markets. My secret for identifying up-and-coming areas is simple. I ask every young person who’s just moved to the city, “Where are you living?” Inevitably, they mention a neighborhood I’ve never heard of. I then ask if a lot of other young kids are moving into that area. If so, I know the property values in that area will rise as its residents’ earning power increases.


Rent out residential real estate.
Invest in residential real estate that you can rent out. Surviving the tough times is just as important as riding out the good times. But everyone must live somewhere — regardless of the economy. Single-family homes, condos, townhomes and two-flats are especially easy to rent, sell and finance. They also maintain their value in the event of a downturn.

Time the market.
To optimize your capital gains, timing is everything. Investors often use a metaphorical clock for this purpose, where 12 p.m. and 6 p.m. represent the peak and bottom of the market, respectively. Everyone is buying during a “boom” phase, and it's easier to get a better deal when everyone is selling at the bottom of the cycle.
Here's the challenge: No one has a crystal ball and unequivocally knows when the market is at precisely 6 p.m. So, the next best time to buy is 7 p.m. — when the market is slowly moving up. I’ve been examining market cycle trends for 25 years. Your trend is your friend: Once you discover a trend that works for you, use it.

Make your money on the buy.
With real estate, investors often believe that flipping a “fixer-upper” is where the money is. False. Your purchase price is the main factor that determines your profit later on. Simply put, you make your money when you buy, not when you sell.
To buy right, determine the potential value of a property by researching three comparable sales, or “comps.” Use comps with a similar size, value and location to more accurately assess value.