Building long-term wealth may seem like a pipe dream, especially for those of us who have spent years climbing career ladders. Of course, you can achieve some sort of financial freedom with your 9-to-5 job, but there’s definitely a ceiling.
At least, that’s according to real estate expert Winston Deloney. Deloney not only is an expert real estate investor with a diverse portfolio, but he’s also a wealth of information about building long-term wealth.
We caught up with Deloney to learn some of his insider tips and hear his opinion of rental properties and long-term wealth.
Winston, why did you get involved in real estate?
Well, first of all, I definitely love how exciting and diverse it is. Being involved in real estate can mean anything. It can mean you own one rental unit; it can mean you own hundreds of rental units.
You can work on a fixer-upper for years and years, or you can fix-and-flip houses every few weeks. You can wholesale on the side or make it your full-time gig. Real estate offers endless opportunities, with big payouts.
What is you real estate history like?
I basically have done it all, because I thrive in the diversity. As a full-time real estate professional, I’ve made it my mission to not only navigate this world for myself, but also share what I’ve learned with other investors. While I do love wholesaling, along with a good fix-and-flip, I’ve been focusing my energy recently on rental properties.
Why is that?
Rental properties are an excellent investment, and there are rental properties for everyone. If you have a full-time job and only a small amount of money to invest, you can start with one rental unit.
But if you want to grow, and have a massive rental unit portfolio, that’s also possible. I see rental units as being the best form of real estate investing, with caveats, of course.
Why do you think they’re the best?
Real estate is always an excellent investment, but the one main critique is that it can be hard to liquidate. Meaning, when you actually need the money, it may not be so easy to instantly sell that property.
Will rental units, your goal isn’t to liquidate, usually. You’re getting income month after month, and don’t have to stress about being able to sell the property. Now, of course you can still sell a rental property, but that’s not the only way of making money with it. And I think because of this, they’re excellent at building long-term wealth.
What are some of those caveats?
You have to be okay with actually managing a rental property, or hire someone to do it for you, and then manage that property manager. It is, at the very least, a part-time job to own rental units, and there is effort and upkeep that goes into it.
It’s not like a fix-and-flip, where you sell the property and you’re done. It is continuous work for sure, but the good news is, it’s definitely possible to grow your portfolio to the point where you can delegate and outsource.
For example, when you’re successful, you can afford a full-time property manager, who can deal with the day-to-day. But you have to be willing to put in the work to get there.
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