0:00 You know, you probably don't think about this daily or anything, but somebody owns every building you've ever stepped into, and it's making them rich. You see, Aluxer, real estate has created more millionaires than any other asset class in history. And you don't even need to be a millionaire to get started. From everyday people renting out a spare room to the ultra wealthy buying up entire neighborhoods, today we're breaking down real ways that real people are using real estate to become ridiculously wealthy. Welcome to Alux, the place where future billionaires come to get inspired. So, we're going to break this down into levels, okay? We're going to start off simple because getting rich through real estate doesn't necessarily mean owning skyscrapers or flipping million-dollar properties. No, in fact, most people's first move often looks almost like an accident. At level
0:47 one, you're a house hacker. So, imagine you're living in a two-bedroom apartment. You're splitting your rent with a roommate. Life is decent and the bills are manageable. But one day your roommate decides to move out and your landlord needs someone else to fill the room. Now, of course, you could sit back and let them handle it, but instead you tell them, "Don't worry about it, okay? I'll pay 100% of the rent and I'll do all of the work of finding somebody else to live here." So, you post a listing, you meet a few people, and lock in a new roommate. But instead of going 50/50 on rent, you pay a little extra on top, something like $100 to $200 a month. This is called subleting and it's a nice chunk of change. Only now you're thinking, "Wait a minute, what if I owned this place?" Well, fast forward, you make a down payment on a small
1:33 duplex. You live in one unit and rent out the other, which covers most if not all of your mortgage. Now, you're basically living rentree. This is called house hacking. One of the most accessible real estate strategies because it's not super expensive. But the best part is you're building equity in your own home every month. then that money is going straight into your net worth. This is how the game begins. When your home stops being your biggest expense to your first investment, once you realize your home can make you money, the next move becomes obvious. Level two is where you become an entrylevel landlord. So, fast forward again and now you've moved out of that duplex, but instead of selling the place, you're now renting out both units. You've now got two tenants and
2:20 they're sending you money every month. Now, this isn't exactly passive income, okay? Maybe you have to repaint the occasional wall, upgrade the fridge, or fix a leaky faucet. But now, rent checks keep coming in every month, and most of the time, you're not even thinking about them. You just wake up, check your phone, and see two deposits from your tenants. Congratulations, my friend. You've just made money in your sleep. You're officially a real landlord now. And this is where a lot of people fall in love with real estate. But it's not completely handsoff, though. You've got to collect payments, respond to issues, maybe deal with a late rent here and there, but the money is consistent. You're not just working anymore. Your property is working for you. And that's called leverage. And here's the thing, okay? If you're serious about building
3:06 wealth, you need to adopt this mindset for everything. You'll want tools and systems that make you sharper, faster, and way more productive. That's where Owl, who we've partnered with to make this video, comes in. So, Owl is an AI powered summary tool built for people who actually value their time. Whether you're taking meetings, planning your week, or fleshing out a random thought into a million-doll idea, Owl records, summarizes, and organizes everything for you. We've used it ourselves, and honestly, it has the Alux stamp of approval. Using Owl feels like having a second brain in your pocket because it comes with a powerful AI coach that helps you make better decisions based on your notes. It even creates smart flashcards so you can test your knowledge and reinforce whatever you're learning. Your greatest asset will
3:53 always be your mind. Okay. An Owl helps you to make the most of it. You can use it on iPhone, Android or the web in multiple languages. And yes, it respects your privacy. You can even use it in your Zoom and Google meetings for real-time transcription and notetaking. It's actually a pretty great tool. And if you think it'll make your life easier, check out the description of the video because there's a deal waiting for you down there. Though, with that said, let's get back to getting rich with real estate, shall we? All right, so by this point, you've got a rental in a decent city. Nothing fancy, just clean, cozy, and in a neighborhood that's safe and walkable. You've been renting it out for a while now, but lately you've noticed something. The place down the street is always buzzing with different people, travelers, weekenders, digital nomads. So, you do a little digging and realize
4:39 it's an Airbnb and it's making triple what you are per month. The owner of that place is an Airbnb entrepreneur and now it's your turn, too. So, you furnish a new place, take some good photos, and you list it. Suddenly, your weekends are booked out months in advance, and people are paying way more per night than you ever paid with a long-term tenant. Sure, now you've got more to clean up, handle check-ins, and respond to the occasional 11 p.m. Where's the Wi-Fi password message, but the money is worth it. This is the short-term rental game. According to AirDNA, Airbnbs in high demand cities like Miami, Austin, or Lisbon are generating two to three times more monthly income than regular long-term rentals. get the location and experience right and you've got a property that
5:25 prints money even if it sits empty a few days a month. All right, so by now you've gotten a taste for the rental income game, right? Naturally, you start to think, how do I get more of this? And the answer is becoming a BRR investor at level four. And trust us, this strategy really does make the money printer go. So here's how it works. All right. So, imagine you're driving around in a great neighborhood and you spot a house that's worn down and outdated. Most people would pass without a second glance, but you see potential. So, you buy that house for well below market value. You spend a few months upgrading it. Nothing too fancy, but enough to turn it into a place that people want to live in. And just like before, you rent
6:11 it out. But this time, something's different. Now that the property looks better and brings in more income, it's actually worth a lot more than what you bought it for. And here's the best part. You can actually go back to the bank now, refinance the property as its new value, and come out with most or even all of the cash you originally put into it. You still own the property, so it's adding to your net worth. It's still generating income for you with rent, but now you've got your money back, and you can do it all over again. This is the BRRR strategy. Buy, renovate, rent, refinance, repeat. It's one of the fastest ways to build a real estate portfolio because instead of waiting and saving, you're using the value you just created to fund your next move. At this
6:58 level, you're not just making money. You've unlocked a system that literally creates wealth. But at some point, you start to notice something, right? Your residential properties are fine. They're steady, but you're getting tired of dealing with late night plumbing issues, missed rent, and annoying tenants. Then you meet somebody who's in commercial real estate. They don't lease to people, they lease to businesses. These kinds of investors are commercial specialists. That is at level five. When you're dealing in commercial real estate, your tenants aren't calling about clogged drains. They're signing 5-year contracts with automatic rent increases. In some cases, the tenant, not the landlord, pays for property taxes, insurance, and maintenance. That means higher margins
7:44 and more predictable income for the owner. So, you take the leap. You buy a small office building, a warehouse, and a retail strip with three units. The leases are longer, the income is higher, and the tenants, well, they treat the space like it's their own because it's their business. That's the beauty of commercial real estate. You're not just collecting rent. You're locking in revenue for years at a time with fewer management headaches. That is long-term thinking. Okay, so there's definitely more to real estate than just homes and apartments, right? The deeper you go, the more it becomes clear. Most people are only scratching the surface. At level six, you start exploring those opportunities and become a specialty investor. So, at this stage, smart investors start looking into places that
8:31 others ignore. mobile home parks, farmland, RV parks, self storage, billboards, even laundromats. These properties aren't glamorous, no, but they're simple, predictable, and often wildly profitable. Take mobile home parks for example. Residents pay rent to park there, and because they own their homes, they tend to stay for years. In many of these deals, investors don't own the homes, they just own the land underneath. So simply put, expenses are low and cash flow is strong. Self storage is another big one. There's no tenants living on site. The upkeep is minimal and there's no toilets, so it's one of the easiest real estate assets to automate. In fact, the self-s storage industry has delivered an average annual
9:17 return of over 16% over the last 25 years. And then there's farmland. Quiet, stable, and surprisingly consistent. Everybody needs food, and there's more people every day. So, the land produces income and it appreciates over time. Just look at Bill Gates. There's probably a reason that he's the biggest owner of farmland in the US. This level is all about realizing that wealth doesn't always look like a luxury high-rise. Sometimes it looks like a cornfield, a gravel lot, or 40 rows of storage lockers. But look, okay, here's the thing. You can only buy so many properties on your own. Eventually, you're going to hit a wall. Not because you're out of ideas, but because you're out of cash and you can't even borrow anymore. But don't worry. If you decide
10:03 to go into level seven, real estate mogul, this is exactly where things get interesting. So, instead of waiting years to save up, you can raise money from other people to buy properties. They find a great deal, usually something big like an apartment complex or even entire malls, and then bring in investors to help fund the purchase. You handle the work. You find the deal, negotiate the price, set up the legal structure, and manage the property. The investors just write the checks and collect returns. It's like a 1 + 1 equals 11 kind of situation. You build equity and earn fees without putting in all of the money yourself. And your investors get access to deals they couldn't do on their own without having to deal with tenants or toilets. So, at the end of the day, you could go it
10:48 alone and keep it simple, or you could turn real estate into a team sport and win the big game. And as the old saying goes, alone we can do so little. Together, we can do so much. In your own wealth creation journey, whether it's through real estate or something else, you have to apply the same kinds of mindset. This is why we created the Alux app to give our community the chance to learn directly from the world's foremost experts on wealth creation. It's already helped hundreds of thousands of people become more successful, and we're confident it can change your life, too. So, download the app in your app store, scan the QR code on screen, and you'll get 25% off your yearly plan. So, yeah, check it out, my friend. You won't regret it, and I'll be right there with you on the inside. Let's move on, shall we? So, now that you've built the kind of real estate empire that would make
11:34 the Monopoly man jealous, at a certain point, you have to realize you spend years looking for the perfect property to buy and you never find it. Right? At level eight, that's not a problem because you become a real estate developer. If your perfect property doesn't exist yet, well, you can always just build it yourself. Now, obviously, it's much easier to buy a home than it is to build one. It takes permits and planning. contractor's capital lots of time. But just imagine how tough it is to build a stadium or a mall. If you do it right, though, it could be the kind of move that sets you and your grandkids and your grandkids grandkids up for life. Now, it usually starts with a piece of dirt in a location that's about to grow. Maybe a new highway is about to
12:20 be built or a big company announces they're opening a facility nearby. The land might look empty right now, but as a developer, you see what it could be. With the right timing and execution, a wellplanned project can 10x your original investment once it's finished. This is how some of the biggest fortunes in real estate are made. Not by buying what's already profitable, but by turning raw land into something the world is hungry for. All right, so if you wanted to reach the top of the real estate game, you pretty much made it by this point. But there is one more strategy you could implement, and it's a little bit crazy, like a maniacal evil genius. But it's currently making ultra-wealthy people crazy rich and crazy powerful. At level 9, you become
13:07 too big to fail. You see, at the top, the real estate food chain are institutional investors. Take Black Rockck for example, a massive fund backed by literally tens of trillions of dollars in capital. These guys aren't looking for a home to raise the kids in. They're buying thousands of homes in bulk. Sometimes scooping up entire neighborhoods before they ever hit the public market. This is part of the reason why buying a home feels impossible these days. To the average person, it looks like a housing shortage. To Black Rockck and to others like them, it's a strategy. Now, you would think these funds would be really careful about what they buy because if the real estate market crashes, well, they are the market. But here's the thing, okay? These funds are not afraid
13:53 to make mistakes, to buy aggressively, and to get in debt. That's because they know that if and when the crash comes, the government is 100% going to bail them out. Otherwise, the ripple effect could destabilize everything from local housing to the entire financial system. So, simply put, there's effectively no downside for them. They can just get insanely rich without any consequences. At this level, real estate is not about cash flow anymore. It is about power. We're going to wrap this one up here today. Hopefully, you got a good grasp of how people are getting rich with real estate and how you can go from zero to crazy evil genius rich as well. If you enjoyed this video, subscribe and hit that bell icon below so you don't miss any future ones. We'll be making some
14:39 more deep dives like this about other asset classes soon. So, with that said, we'll see you back here next time. Until then, take care, my friend. [Music]
