Everyone in America, employee or employer, man or woman, young or old, highly educated or high school dropout can become wealthy. It can happen quickly, or can take decades. But it can happen if you have the desire to make it a reality!
To make your dreams of wealth come true, there is only one thing you have to do: buy a house or condominium and live in your purchase as your owner occupied residence. You can own it yourself or with your spouse.
THAT IS ALL YOU HAVE TO DO TO BECOME RICH!
As my favorite announcer, the late Paul Harvey, would say, "And now the rest of the story".
The Government has a few tax rules for owning and selling an owner occupied dwelling. For example, if you have lived in your owner/occupied place for 2 years prior to selling, the first $250,000 in profit is tax free for single owner. Or, if you and your spouse live in said place for two years before you sell, the first $500,000 in profit is tax free.
One strong purchase and sale and you are a quarter to half of the way to having one million dollars, which is wealthy in any definition of riches. Before you ask, no you do not need a large parcel of money to begin. You also will not need phenomenal credit, a large down payment, or large reserves.
But how does it really work? You shop around until you find a house, condo or units that appeal to you and are in your price range. It is best to locate a Realtor to help you find the property with the greatest upside. Next, you familiarize yourself with the types of loans that are available in your area. Some can give you money to fix up the place, others can give you second trust deeds that some municipalities give out that are forgiven over time, or maybe just a conventional loan that will work for you.
There is truth to the old saying "buy the worst house in the best area," as long as you are sure you have the capital and time to improve the property. Make your offer, buy the property and start improving so that it will be as ready as ever when two years roll around. You do not have to sell in two years if you aren't ready, or if your house hasn't appreciated enough. You could rent out your current house, and get into another one that will become your owner occupied. After two years in the new one, you could sell it and move back to your original home and make it your owner occupied again. Then you could wait two more years and then sell it if it is right.
The main ideas is that as long as the tax code is favorable, you can keep increasing your wealth by buying another property, living in it, and selling it after two years to reap the tax free gain.
Last but not least, you certainly don't have to stop just because you made it to a million dollars. Feel free to continue growing your wealth using this trick!
Join the conversation as a VIP Member