Tesla’s CEO Elon Musk, the world’s richest man, has a unique lifestyle.
Despite Tesla’s value dropping by more than 25% this year, Musk remains at the top.
He turned Tesla into the world’s first $1 trillion electric vehicle company, though he insists it’s more than just an EV company.
You Won’t Believe This:
Musk’s lifestyle is far from ordinary. He claims to work 120 hours a week (over 17 hours a day).
He once said he would “own no home” and sold most of his possessions to live a nomadic life.
Yet, reports say he bought a mansion in Austin, Texas, in 2022.
The house, previously bought for $4.5 million in 2018, was sold to Musk in a private sale.
Why the Wealthy Invest in Real Estate
Everyone needs a place to live, rich or poor.
While Musk might have plenty of friends to stay with, most people prefer stability.
Real estate is a key asset that builds wealth over time.
The National Association of Realtors reports consistent wealth generation across all income levels.
Homeowners build equity as property prices rise.
Investing in stocks, bonds, or a 401(k) is great, but for many living paycheck to paycheck, that’s not an option.
Paying a mortgage is often more feasible and can help build a nest egg for retirement.
Real Estate Investing Without Buying Property
If you’re not ready to buy a home or deal with high interest rates, there are other options.
Platforms like Arrived, backed by investors like Jeff Bezos, let you buy shares in rental homes and vacation properties without the hassle of ownership. You can start with as little as $100.
For those with more to invest, First National Realty Partners (FNRP) offers access to commercial real estate, like grocery-anchored malls.
These properties provide steady cash flow and quarterly distributions, making them a solid choice for diversification.
Private Real Estate Investments
Musk’s portfolio is heavily tied to his companies, but most people need diversification.
Fundrise offers various personal investment accounts and access to private equity deals.
With a $7 billion private equity fund, Fundrise lets everyday investors access high-quality real estate investments.
While you might not become a billionaire, average returns of 7% to 23% per year over the past five years are impressive.
My Opinion:
Investing in real estate doesn’t mean you have to buy a property.
There are many ways to get into the market without owning a home.
Whether through platforms like Arrived or FNRP, you can start small and build wealth over time.
Remember, investing is about making your money work for you, even if you’re not buying mansions like Elon Musk.