A great way to accumulate wealth through real estate - Live and Flip.

A great way to accumulate wealth through real estate - Live and Flip.

Live and flip is a great way to accumulate wealth and it's totally risk-free. And this is something you need to teach your kids. Welcome to Wealthy Wednesday.

So Live and Flip is like that. You buy your first home, a starter home, probably a small single-family home, or a condominium. And then you live there for a couple of years. And then when you're ready to move to a bigger home, maybe your family is growing, or if you're a single person, maybe getting married, whatever the reason is, then buy a little bigger home. Stay there for a few years, and then when the time to grow, you sell this one and buy another one. This is a great way to accumulate wealth, and there are a couple of reasons behind it.

Number one thing, this is your primary home because you have to live somewhere and it is your primary home. So, when you buy your first home, rather than buy a bigger home, buy to go smaller, small, and then a little bigger, then a little bigger. Fun part is when you live in a property at least two years in the last five years, you do not have to pay income tax on the profit up to $500,000 for a couple and $250,000 profit for a single person. Think about that. You buy a condo, and sell it after two years, you do have to complete that two years living on the property. And it has to be a homestead property because it has to be a primary home. And you make $100,000, you pay no taxes, then you buy a bigger home, and then the same thing again, do it repeatedly.

If you can teach this to your kids when they're starting out with a small property. You are actually setting them up to become a millionaire, to create wealth for themselves. So this is my suggestion. Rather than buying an expensive car or putting money somewhere where it doesn't even make you money, this is the safest way you can accumulate wealth. Live and flip.

Hopefully, this information is going to give you some knowledge to accumulate wealth for your family. Give me a call if you have any questions. My name is Shawn Bhakta, from Remax Presidential, South Florida Home Finder Team. I'm glad to help.

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