REAL ESTATE INVESTING: STILL THE BEST CHOICE?

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Over the last two centuries, about 90% of the world’s millionaires have created wealth through real estate investing. This striking statistic, first shared by billionaire Andrew Carnegie, underscores the enduring power of real estate as a wealth-building tool. But does that principle still hold true in today’s ever-changing financial climate? To find out, I turned to seasoned experts. Their collective answer was a resounding “Yes!”

The Best Time to Start? Now!

While the real estate market can ebb and flow, one thing is certain: now is always a good time to start planning. Real estate prices may rise and fall, but historically, property values increase over time. The sooner you begin investing, the more you’ll benefit from compounding growth.

If you’re a Millennial or Gen Xer, investing in real estate can lay the groundwork for your financial future. Experts agree that buying your first home is one of the smartest ways to start your financial portfolio. Owning your primary residence not only gives you a place to live but also builds equity over time—equity that can pave the way for future investments.

The living room of a a pied-à-terre with sliding doors open to a view of the ocean beyond the yard.

For those boomers already on their second or third property, consider expanding your portfolio with high-end rentals or vacation homes in sought-after locations. In or close-by Santa Barbara, my portfolio includes several potential properties perfect as a pied-à-terre; ideal for savvy investors looking to diversify their holdings.

Why Real Estate Always Shines

Here are just a few reasons why real estate remains the gold standard for building wealth:

Build Equity for the Future: Owning property allows you to accumulate wealth over time.
Real Estate Offers Stability in an Uncertain Economy: Unlike stocks, which can be volatile, real estate typically remains a stable asset.
Generate Passive Income: Rental properties can provide steady cash flow.
Tax Benefits: Take advantage of deductions, including mortgage interest and property taxes.
Portfolio Diversification: Real estate balances your investment portfolio with tangible assets.
Hedge Against Inflation: Real estate values often rise alongside inflation, protecting your investment.
Real Estate is Tangible and Usable: Unlike stocks, which exist only on paper or digitally, real estate is something you can see, touch, and use.

A luxury Mediterranean estate with white stucco walls and a red tiled roof with ocean views beyond.

Just imagine reaping the benefits of real estate investing while living the Santa Barbara lifestyle in my Sea La Vie Mediterranean estate pictured above. Still not convinced? Perhaps these 4 U.S. millionaires who credit their success to real estate investing will help you see the light through their powerful, real-life stories and proven strategies for building wealth through property ownership.

Real Estate mogul Barbara Corcoran in a yellow suit. — Barbara Corcoran at a LinkedIn event courtesy of Wikimedia Commons.

1. Barbara Corcoran

Founder of The Corcoran Group, podcast host of “Business Unusual,” judge on “Shark Tank”

Corcoran’s journey—from starting as a diner waitress to founding her real estate company with a $1,000 loan and eventually selling it for $66 million—highlights the importance of simply starting. Even a modest property can open the door to significant wealth over time.

“Buying real estate has made me rich—mostly through necessity, not by design. I bought my first itty-bitty studio after scraping together a few bucks because I needed to live somewhere anyway. A few years later, the studio doubled in value, giving me enough cash to plunk down 50% on a one-bedroom apartment. That soon rolled into a two-bedroom, then a three-bedroom, and finally landed me in my 10-room penthouse on Fifth Avenue in New York City. Buying that tiny studio was the most important decision I made because it got me in the game.”

2. Bethenny Frankel

Entrepreneur, philanthropist, founder of Skinnygirl and BStrong

Frankel emphasizes patience and preparation. Real estate isn’t about getting rich overnight but building sustainable wealth through smart, long-term investments. Her approach highlights the importance of thorough research and understanding the market before making a move.

“Investing in real estate is a great idea if you are in it for the long haul, not a quick return. Your best bet is investing in residential properties that produce rental income year-round. Just make sure you understand all of the associated legal fees and are prepared for unexpected costs.”

3. Grant Cardone

Sales expert, New York Times best-selling author

Cardone advises targeting multifamily properties in prime locations, focusing on those with the highest cash flow and appreciation potential. His strategy highlights the importance of choosing the right real estate investments.

“Real estate is real, and it’s always a good idea to put your money in real assets. But let me be clear: That doesn’t mean that all real estate is a good idea. I only buy certain types of properties, generally multifamily ones in upscale locations that provide consistent cash flow and great potential for future appreciation. I stay away from low-income areas and single-family homes. But even those assets are probably a better place to store your money than letting cash depreciate while sitting in the bank!”

4. Marcello Arrambide

Founder of Day Trading Academy

Arrambide underscores the permanence of real estate. Unlike other investments, it’s a tangible asset with enduring demand. Its inherent value and versatility make it a reliable cornerstone for building and preserving wealth over time.

"Many businesses come and go, but there’s one thing we’ll always need: land. There’s an inherent demand for real estate, whether the land produces a product like coffee or is home to an apartment or retail space; so, it will always be a good investment. No matter what kind of business you run, you need land. Investing in real estate allows you to protect yourself and your wealth. While the real estate market has gone up and down, it has never declined over time. Over time, you will always get value from real estate that produces income—like a coffee farm, for example. Even better if you choose a property with inherent value, such as a location in Times Square.”

The Takeaway

The wisdom of these experts points to one clear conclusion: real estate is still the best investment you can make. Whether you’re just starting out or looking to expand your portfolio, now is the time to act. You can't go wrong with properties in Santa Barbara offering exceptional value and opportunity.

If you’re considering buying or selling in the Santa Barbara area, I’m here to help. Give me a call at (805) 886-9378 or email me at Cristal@montecito-estate.com. Together, we’ll turn your real estate investing dreams into a successful reality.

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“It was an emotional experience selling our mother’s home in Montecito that we all loved so much but Cristal made the process easier on our whole family by guiding us through the transaction every step of the way. She knows the market so well and everything she recommended was on point including the asking price, painting, and staging the home, which looked beautiful and helped the buyer envision her new home. We sold it the first day it hit the market with an offer above asking! Cristal did an incredible job communicating with us and the buyer to ensure that the transaction would run smoothly. We highly recommend using Cristal, she was a pleasure to work with! ”

- J & A

“Cristal is a pleasure to work with! Her knowledge of the local real estate market coupled with her amazing listening skills resulted in her showing us an array of homes that were all excellent choices. Her low-pressure patient attitude made us feel extremely comfortable with the whole process. I cannot recommend her highly enough.”

- M.F.

“Cristal Clarke is #1 in her field - and you don't become #1 by luck. Cristal works harder, and longer, and with more charm and patience than any real estate agent I have ever worked with in the past; her calendar has no weekend, her days have no clocks, her only concern is selling your property as soon as possible and for the best price on the market. Am I a fan? You bet!”

- P.B.

“We have used Cristal now several times and cannot express how grateful we are for her expertise, dedication, and unwavering support throughout the entire home-buying process. Cristal is knowledgeable, patient and attentive. Her attention to detail is remarkable, and she consistently went above and beyond to provide us with all the information and resources we needed to make informed decisions. Cristal is a skillful negotiator and advocate. She can navigate complex negotiations with professionalism and grace and felt like a true partner to us in the home-buying process. Cristal has a genuine passion for real estate and a deep commitment to her clients' satisfaction. I cannot speak highly enough of Cristal and her exceptional service. She is a true expert in her field and her dedication to excellence, combined with unwavering support is the reason we choose to work with her for all our real estate buying needs.”

- T.C.

“Cristal is a top-notch realtor who sold my home before it ever went on the market. I had two competing offers that enabled me to get top dollar for my home. Not only is Cristal superb but her team is extraordinary. I cannot say enough about Cristal and her team. They are simply phenomenal, the consummate professionals, who took care of every possible detail, making the sale and transition period, smooth from our end. They are also lovely, caring people, who knew all the right professionals, to get the job done. Thank you, everyone!”

- D.R.

“I could list lots of cool adjectives to describe Cristal. All good by the way. But, that is not why I or anyone should hire Cristal. My reason for hiring her, which proved to be correct, is very simple. She got the job done. And, she does it time and time again and with zero issues. And, that is why she is one of the top agents in the country. End of subject. ”

- M.A.

“Working with Cristal was a complete pleasure. Cristal was extremely patient with us as we evaluated nearly 2 dozen homes over a span of 2 years. Her knowledge of the market is unmatched. Cristal provided us with exceptional counsel as we evaluated opportunities and negotiated pricing. The closing process was handled thoroughly and efficiently. We could not be happier with our purchase and even more happy to now call Cristal our friend.”

- D.K.

“Cristal Clarke has conducted numerous real estate transactions for me beginning 13 years ago with the purchase of a Lemon Ranch. She has handled both large and small purchases and sales with equal dedication. As a negotiator, you can’t find anyone better. Her transactions are always conducted in the most appropriate and professional manner. Cristal has considerable knowledge of the Santa Barbara market.”

- S.N. Decker Ph.D.

“Living in Europe, we were to say the least, unaccustomed to the nuances of Real Estate acquisition in California and Cristal steered us through the process with absolute professionalism and personal attention to detail at every turn. Her in-depth knowledge of the market place combined with enthusiasm and drive was the only reason we secured the property of our dreams and will be forever grateful. If you are looking for personal discrete and private representation of the highest quality we suggest you look no further than Cristal Clarke.”

- Johan and Paula van den Berg

“Cristal is very straightforward, cheerful, helpful, professional and trustworthy….we felt very lucky to work with her.”

- John and Lacey Williams

“After considering our many choices, we are grateful it was Cristal Clarke of Sotheby’s International who represented the sale of our Montecito cottage. We are familiar with Cristal’s reputation of hard work and dedication to clients, but it was her attention to detail that made our experience so positive. She offered suggestions for staging the property, worked in harmony with potential buyers and was even able to secure back up offers. The sale of our cottage was completed much sooner than we expected, due in great part to Cristal’s professional skills and support. We highly recommend Cristal as a first choice for anyone needing representation with real estate.”

- Michael & Nancy Lee

“Our experience in working with Cristal Clarke resulted in the successful and discrete acquisition of a property which was not yet on the open market. Her knowledge of the Montecito/Santa Barbara area and vast expertise blended with her passion for real estate and architecture, provided us with the very highest level of professionalism and personalized services. Cristal exhibited a rare combination of excellent communications, attention to detail, creativity and patience.”

- Richard and Catherine Frinier

“Cristal really breaks the mold. She knows every nook and cranny of this real estate market, understands value, and follows up on everything, all the time. She was incredibly patient with our two year quest to find the perfect house. Every house hunting trip from across the country was well planned, and our time was never wasted. On top of her professionalism and expertise, she is delightful to spend time with. We are thrilled with the home we purchased, and grateful to Cristal for so wisely advising us through this process, right through to the close and beyond.”

- Laurie Siegel

“We met Cristal first in the course of renting a winter home (for three years), then buying a house using her as our agent. She was amazingly good at listening to our wants and showing us homes that fit our needs. Her mastery of the paperwork was perfect. Most importantly, there was never a situation where we doubted her straightforwardness or integrity. If we do another real estate transaction in Montecito (which I doubt, we’re happy with what we purchased), without question we’d use Cristal again.”

- Ken Saffir

“Susan and I just want to thank you for your efforts in the sale of our home. You are really quite amazing. Your competence, persistence, optimism and humor made the entire process effortless. Every problem that arose, you somehow fixed; any obstacle, you overcame. We have bought and sold many homes. It has never been such a painless and enjoyable process!”

- Michael & Susan Marquart

“A little something about “our” realtor, Cristal Clarke. My wife and I came to Santa Barbara about fifteen years ago looking for a seasonal home from which to enjoy the weather and amenities of the central coast. Being in the real estate business myself I was familiar with agents and brokers so entered the market with open eyes. We “flipped” a few houses in the early years, dealing with various agents and finally ended up in Montecito. That’s when good fortune put us together with Cristal. To say we were impressed is to put it mildly. Cristal really knows the market. She is familiar with the area, its history and trends. When we have questions about a particular property she either has the answers immediately or gets back to us by phone or email. There is no waiting or wondering with Cristal. She is an agent who is “on top of it.” Her recommendations as to price points, contractors, inspectors and title agents have proven to be exceptional, showing great insight and the highest professional standards. We consider ourselves exceedingly fortunate to say that Cristal Clarke is our realtor and would recommend her services to any serious buyer or seller.”

- Rob & Judi Kelch