By John Aretos, CEO of Police Mortgage
You certainly can build generational wealth by utilizing real estate. I don’t know where I heard this, but I think someone famous said one of two ways to become super wealthy is through the acquisition of real estate. The other way is through inherited wealth but very few of us have a rich uncle or cousin somewhere.
Real estate can create passive income. How can that help towards building an empire of wealth? If it’s your primary residence, obviously you’re not utilizing that for passive income but the fact is that real estate almost always appreciates over time.
If you are fiscally responsible enough to pay down your debt correctly, i.e. if you buy a home and pay down the mortgage over time, you are creating personal wealth with the increased equity you have in the property. Simultaneously you expect that property to increase in value as well. Thus, in this scenario, the homeowner is building equity in two ways.
At the National Police Federal Credit Union, we have had members who have owned multiple properties. A number of police officers buy an income building, like a two-flat or a three-flat. You can buy up to a four-unit property and still finance it as a conventional mortgage loan. Anything over four units is considered a commercial mortgage.
In the case of a three-flat, the owner lives in one unit and rents the other two units. Now they’ve created passive income. They’re paying down the mortgage and covering expenses. At some point, that property is going to be generating free and clear cash flow.
It’s important to remember that nothing is done quickly. This isn’t a get-rich-quick scenario but I can’t remember ever speaking to a person that has owned multiple properties that said it was a bad idea after the fact.
Creating generational wealth usually takes a long-term approach. Owners need to be disciplined in not accessing that capital because there is real value in the unrealized gain.
Right now it might be easy to kick real estate to the curb, forget about Mortgage Chicago, and look to the stock market or other wealth generating activities. There is definitely a group out there that would think that way.
However, scarcity is your greatest commodity. So, depending on where you buy real estate, depending on what your goals are, owning property is a wealth generator. There’s a reason why property values are high, and that’s because there’s a scarcity of inventory available, particularly multi-unit buildings,
I’m a believer that real estate is still a very viable way of achieving wealth. I doubt that way of thinking will be going to go out of style anytime soon.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
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I have my bachelor’s in business administration and have been involved in the banking industry for over 10 years. During this time, I managed two of the National Police Federal Credit Union locations prior to transitioning to Police Mortgage. I have family members who are police officers with the Chicago Police Department. My work has been very rewarding, and I take pride in having assisted countless members and their families with their financial needs and financial wellness. My hobbies include exploring new restaurants in the city and running for marathons that support pediatric cancer foundations and Chicago Police Memorial Foundation’s Run To Remember. I come from a large family primarily from the south side of Chicago and love to share all the diversity and beauty the city has to offer with my two children.
I am honored to grow up in a multi-generational family of Chicago Police Officers. I joined Police Mortgage in the summer of 2020 and love the opportunity to help both first-time buyers and repeat clients alike achieve their dreams of purchasing a home. Having been born and raised in the south suburbs of Chicago, I happily live in the Lakeview neighborhood today. Along with my two younger sisters, I am a graduate of the University of Illinois at Urbana-Champaign and a lifelong Chicago Bears fan. I have a strong passion for food and love exploring the vast array of restaurants throughout our city. Nothing makes me happier than spending a summer afternoon on a golf course with family and friends!
I joined my brother at Police Mortgage as a loan officer in August of 2021 after a 10-year career in sales and marketing. Most recently, I worked as a Senior Account Executive for Ricoh North America, an office electronics company, where my main responsibilities were building new client relationships and maintaining over 400 existing customer accounts. I believe my work experience has transferred over to the mortgage industry well, because I am able to multi-task effectively while working with multiple customers. The skillset I learned in my previous employment allows me to stay organized and to manage my time well for my customers. My number one goal is always to make the loan process as quick and painless as possible for our borrowers. I am excited to further develop the Police Mortgage brand with my brother. It is a unique situation, and I believe working in an office together allows us to help our borrowers even more due to streamlined communication and our ability to help each other with our respective files. I like to spend my free time relaxing, watching sports, exercising, going out to eat with my wife, and trying to keep up with our three daughters – all under five years old!
After graduating from the University of Missouri in 2015, I moved to Chicago where I began a career in marketing at a firm called Ansira. I sought a career change and contacted Police Mortgage, where I was first introduced to the mortgage industry. I have spent the last 5 years training with our CEO, John Aretos, who has taught me all of the intricacies of the mortgage process. I love finding solutions for our clients to help them purchase the home of their dreams. I feel a huge sense of accomplishment when helping homebuyers, especially first-time homebuyers, all the way through the loan process, from pre-approval to closing day. I recently moved back to my hometown of St. Louis, where we opened a new office. I am excited to help start this new chapter for Police Mortgage. My wife, Megan, and I are happy to be back in our hometown. We are always checking out new outdoor events such as music or food festivals – anywhere we can take our dog, Remy!
As the CEO of an organization associated with serving the Police and their loved ones, I am privileged to play a role in helping our clients achieve their life’s financial goals. Our mission is to make the home buying or refinancing process as comfortable as possible, providing our clients with competitive products and excellent service.
I was born and raised in the Chicago metropolitan area, and I have a deep-rooted love and appreciation for the diverse culture which makes our city so special. My two older siblings and I grew up working in our parent’s restaurant, which instilled a work ethic and sense of family that I carry with me to this day.
I am a graduate of Indiana University and have been involved in the mortgage industry for nearly 25 years, helping thousands of clients save money or finance the home of their dreams. My passions are passing down my love of food, music, art, snow skiing, and red wine to my three children, who motivate me to be a better person each and every day!
