The Mortgage Brothers Show

Up to date news, tips, and advice, so you can make real estate decisions with confidence.

Is Real Estate The Best Way To Build Wealth?

07-16-2020About MortgagesEddie Knoell

In this episode of “The Mortgage Brothers Show” we answer the question that people ask not only us – but their friends, their relatives, themselves, their spouses, etc; “Is real estate the best way to build wealth?” We’ll break down the 5 main advantages of real estate investing, from real estate investment loans to using 401k money towards a home purchase.

Real estate is typically one of the top transitions made in adult life.

Picture your twenties, and that’s who we’re kind of targeting right now. The biggest purchases you are going to make tend to be; weddings, cars, and homes. Now, how many of those appreciate, versus how many of those depreciate? There is one – it’s your house. The rest all have depreciation components. Sure, you can buy an electric car, maybe gold in that wedding ring will hold its value, but not really.

Buying a home is a long term investment.

As far as we can tell from the data, an appreciating asset, even real estate, even in its bad downturns, real estate has always come back up or at least appreciated and evened out at around six years. In every six-year period, even in 2008, 2009, in 2015 values were already at or greater. On average, real estate appreciates at 4%.

Don’t over-leverage.

But, as long as you didn’t over-leverage, and you’re just in a house. We’re not talking about getting that fancy multi-million dollar house. We’re talking about getting into a traditional house. Regardless of whether the market’s up or down, you still need a place for your pillow. You still are going to need to reside someplace. So provided that you didn’t buy a house too big that you can’t afford. You’re still going to need a house, even if you don’t have a job.

Get on the mortgage train.

It doesn’t matter how hot the market really is, because you really don’t know when the top is. We’ll call it a mortgage train. You need, in order to start building wealth, you’ve got to get on that mortgage train. Once you set foot on that mortgage train, which means you’re going to be riding the ups and downs of that track. If you get off the train, meaning you sell at a high point, good for you – you got a ton of money in the bank. You’re also going to get into a new, different house at that same point, paying a pretty decent dollar for it.

But conversely, if you sell at the low point, yes, you’ll have less in your bank than if you were to sell at the high point. But when you take that money and you reinvest it or repurchase, you’re buying a home at a low point, you’re really, you’re just, you’re sidestepping. You’re really not even moving. You’re just on that train. The sooner you get on that train, the sooner you’re going to start building wealth.

In the episode we use a worksheet to break down appreciation on a $300,000 home, so check out the video for that information!

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.


Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to or

Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.