Even with your own home, have you noticed that real estate prices have been a bit hectic? How do you build wealth with real estate? Not with your primary residence.   

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about real estate as an investment outside of your primary residence. You are building wealth with your home, but it is hard to realize that wealth.   

Topics Discussed: 

Real Estate Market Prices: Massive increases in short periods of time

Crazy Market: What are the reasons? Nobody really knows underlying causes

Supply and Demand: Low supply and high demand drives up real estate prices

Why is demand high? People still want to buy or invest in real estate

Why is supply low? Cautious builders, lumber costs, lack of skilled labor, rules

Real Estate Investing - Alternative approaches to make money: 

Appreciation: Own property that increases in value

Rent: Own property that is rented out to others to generate income

Loan: Charge interest on money loaned for real estate deals 

Ways to Own Real Estate: Short- or long-term rentals, flips, multi-units, raw land   

Real Estate Responsibilities: Do you want to be an investor or more involved?

Why people write/talk about real estate: Hype, interest, and money to be made

Big Benefits: Diversify, passive income, tax shelters, and better returns 

Downsides: Time, dealing with people, risks, returns, complexity, and alternatives

Purpose: Why do you want to invest in real estate and build a portfolio?

Links:

Real Estate Investment Trust (REIT)

VRBO

Airbnb

Finance For Physicians