How to Make Explosive Profits in Real Estate

What is it about real estate that makes is such a phenomenal way to make money? Perhaps the clearest way to see the advantages is to contrast it to investing in the stock market. For the sake of example, let's say that you have $100,000 to invest. That's the same scenario I use in the real estate segment of Trump University's Wealth Builder's Blueprint program. If we apply that scenario here, the advantages of investing in real estate become very clear.

• Leverage. Real estate gives you far more leverage than any other investment does. If you invest $100,000 in the stock market, you can buy exactly $100,000 in stock. But that same $100,000 can easily buy you $1 million worth of real estate. Now you might be saying, "With a $900,000 mortgage, how am I going to pay the interest?" Well, the answer is that you own an asset that is worth $1 million that is generating rental income.
• Borrowing power. Institutions are eager to lend you money to invest in real estate. If you go to a bank and say that you want to borrow money to buy gold or stamps or antiques or paintings, they will laugh you out of the office. But if you say you want to borrow money to buy real estate, they will be falling over themselves to lend you money. There are billboards, radio ads, emails, TV ads, newspaper ads, all saying "Come see us, we'll give you the best deal" and, "We have mortgage counselors who will come to you to take your application." That doesn't happen in the stock market.
• Exponentially greater return on your investment. If you invest $100,000 in stock and it goes up 10 percent in value, you have made a 10 percent return on your investment. If, on the other hand, you invest $100,000 in real estate and buy a $1 million property that increases 10 percent in value, you have gotten a 100 percent return on your investment.
• You control the value of what you own. You can improve your property and increase its value. You really cannot improve your stock. In fact, you are essentially powerless to exert any control whatever over its value.

That is only the tip of the iceberg about why real estate is, in my experience, the greatest investment vehicle of them all. There are lots of other reasons too, and actionable, solid advice on how to get started in the courses and materials that Trump University has invited me to create for them, including The Wealth Builder's Blueprint and Bubble-Proof Real Estate Investing.

Dr. Dolf de Roos, a distinguished member of the Trump University Faculty, is a real estate investor, lecturer and author of five books, including the New York Times bestseller Real Estate Riches. His holdings range from high-rise department buildings to high-end vineyards.