Did you actually make money on that house?

Here, Dave & I are discussing the mistakes we see the wealthy make. But, remain calm, I'm not talking about Rental real estate here. If the rent you receive covers all these expenses, great! We're talking about the 2nd, 3rd, and 4th homes wealthy people buy that they don't use. The problem with holding empty real estate becomes glaringly obvious when you compare it to the public markets. 👇 It is incredibly easy to calculate your return on a stock. You buy it, you hold it, and eventually, you sell it. It doesn't charge you property taxes, it doesn't require a pool cleaner, and the HVAC unit won't break in the middle of July. Real estate, on the other hand, is capital-intensive. It is very common for people to celebrate a massive "profit" when they sell a home, simply because the sale price was higher than the purchase price. But when you look under the hood and factor in years of mortgage interest, property taxes, insurance, and maintenance, that actual return on investment is often much lower than it appears on paper. Real estate can be a fantastic wealth-building tool, but you have to look at the complete picture. If a property isn't serving a strategic purpose in your portfolio, i.e., you aren't using that 2nd home, those holding costs turn it into a liability. It can erode wealth. 🎙️ Playbook of the Wealthy: Episode 63 "Common Mistakes Wealthy People Make and How You Can Avoid Them". Get links to listen to the episode on your favorite platform at playbookotw.com. #RealEstateInvesting #WealthStrategy #FinancialPlanning #PlaybookOfTheWealthy #TownsendFinancial #CashFlowManagement #InvestingTips