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After graduating with a finance degree, Zack, from Nashville, Tennessee, began day trading professionally.
He’s excellent at his chosen profession, netting between $30,000 and $90,000 every month. But day trading doesn’t consume all of his time, and he wants to branch into real estate investing.
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“I am trying to figure out when to make the jump into real estate because that’s kind of where I want to take my end goal,” Zack told Ramsey Show hosts George Kamel and Rachel Cruze (1).
But both Kamel and Cruze think there’s a step in between that Zack should take before diving straight in.
Zack has built a solid financial foundation through day trading, starting with just $3,000 of his own money and eventually securing opportunities with proprietary trading firms. These firms let him trade using their capital, allowing him to keep 70–90% of the profits while minimizing personal financial risk.
Even as his trading income increased, Zack stuck to Ramsey principles — paying off his student loans, setting aside money for taxes and building a solid emergency fund. Now he’s debt-free with $50,000 in savings.
His end goal is to invest the funds in real estate. However, Zack isn’t sure when or how to make the move. On a recent call with the Ramsey Show, he asked for guidance.
The Ramsey hosts praised his progress, but urged caution.
Instead of taking on debt to buy rental properties or flip houses, they recommended following Ramsey’s principles: start by purchasing a primary residence with cash or a manageable mortgage. From there, he can move into real estate investing once he has the funds to do it entirely debt-free.
For investors like Zack looking to grow their wealth through real estate without taking on debt, First National Realty Partners (FNRP), offers a lower-risk solution. The private equity firm specializes in commercial real estate investments that can generate stable, long-term returns.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities.
Thanks to triple-net leases, accredited investors can invest in these grocery-anchored retail centers without assuming landlord responsibilities.
Simply answer a few quick questions — including your investment amount — to start exploring their full list of available properties.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)’
Another way to invest in real estate is by leveraging the $34.9 trillion home equity market, which has historically been the domain of large institutions.
Through Homeshares, accredited investors can gain direct access to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund.
The fund focuses on homes with substantial equity and uses Home Equity Agreements to help homeowners access liquidity without incurring debt or additional interest payments.
This hands-off approach lets accredited investors access high-quality residential properties with a minimum investment of $25,000 — without the headache of tenant management.
With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering accredited investors a low-maintenance alternative to traditional property ownership.
Day trading can be appealing due to the potential for quick profits and the absence of overnight market risks. So far, it’s working out well for Zack, who only spends three to four hours a day trading. It also offers a flexible schedule and a sense of independence.
However, despite its appeal, day trading comes with significant drawbacks.
For starters, there is a steep learning curve. It can take years of practice to become proficient. Zack said that he practiced for several years before trading with real dollars. Even experienced traders face high financial risks, especially when factoring in trading fees. The reality is that most day traders lose money. Only about 1% can predictably turn a profit after fees, according to recent research by Tradeciety (2).
Rather than chasing risky market swings, most investors should consider growing their money through steady, low-cost investments.
Starting early and investing small amounts consistently in ETFs can lead to big results over time. With Robinhood — a commission-free investing app — you can invest in a wide variety of ETFs, stocks and options.
Robinhood offers a range of account types with no account minimums, making it easy for anyone to start investing in minutes, regardless of how much (or how little) they have to spend.
New Robinhood customers can even get a free stock once they sign up and link their bank account to the app.
Your stock reward can range from $5 to $200, and you can pick from a selection of top American companies.
While Zack has certainly made his mark as a trader, there are a number of reasons why he may be compelled to make the switch to real estate investing. First of all, real estate performance isn’t tied to the market — these investments may continue to make him money even in a bear market. Rental income generally remains stable, and this will potentially give him a more predictable source of funds than trading could.
A long-term investment in real estate also offers more substantial tax advantages. For U.S. investors, long-term gains are taxed more favorably than short-term gains, and there are a number of tax advantages available to property owners that can make this form of investment more attractive to someone like Zack.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Ramsey Show/Youtube (1); Tradeciety (2)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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