How To Create Multi-Generational Wealth Through Property Investment
You’ve probably always heard that investing in real estate is one of the best moves you can make when it comes to your financial portfolio and wellness, but did you know that investing in property now can set you and your family up for financial stability and create multi-generational wealth of your own for years to come? A common way that many people are ensuring that their children, grandchildren, and great-grandchildren don’t have to worry about money is by investing intelligently in real estate today.
If you’ve already invested in real estate, you likely know that you can begin building multi-generational wealth with properties that generate passive profits. Unlike the quick gratification of house flipping, building wealth with passive income takes both patience and strategic planning.
The real estate investors who are the best at building multi-generational wealth tend to begin by funding their retirement and their children’s college with passive income. Then once they pass away, they leave income-producing properties to their heirs, who continue to build on the investment and reap the profits they generate.
A majority of billionaires and millionaires have made their money in real estate, investing wisely at the right times, and holding on to their properties for years. Rockefeller, Hilton, and many other billionaires built lasting empires by investing in real estate and passing it down through their families.
Get Started with Real Estate Investments
While most people can agree that investing in real estate is a good idea for creating multi-generational wealth, many simply don’t know where to begin. Some ways to get involved include:
- Family Residence Investment (SFR): Leasing a single-family home to a tenant for a lease of 12 months or more, securing additional income for you for at least one year.
- Duplex, Triplex, or Quad: Multiple rental units under the same roof, providing extra stability—if one tenant vacates, you’d still have the other tenants to rely on for their rent payments.
- Apartment: A building with 5+ units allows you to boost the property value through solid property management. Within less than five years, you could see a significant increase in appreciation, allowing you to leverage your profits quickly.
- Mixed-Use Investments
- Commercial Property
- Mobile Home Parks
- Short Term Rentals: Airbnb or Homeaway
- and more
Smart Financial Moves
While investing in real estate doesn’t come without risks, it is a fairly stable choice since nobody has the power to create more land. The best part about investing in real estate, other than passive income, is you can make improvements to your investment and use other people’s money to acquire more of it (i.e. using rental payments to make updates or additional investments).
Additionally, acquiring property means you have something of value that you can sell at any time. Plus, properties are expected to increase their monetary value over time, and if you want, this increase is something that can be expedited by making improvements. Lastly, as an investor, you’re on the right side of any cost of living increases, as the price of homes goes up when the cost of living raises. That means you could buy a home in 2020 for $100,000 and without making any updates, you could sell it for $115,000 in 2025 just due to inflation. All of these benefits create multi-generational wealth and ensure more can be passed down to children/heirs, adding another layer of icing on the cake.
How Precision Realty Can Help
At Precision Realty, we’ve been leaders in real-estate since 1989. Not only do we have a skilled team knowledgeable in investment procurement, but we’ve also been helping our clients manage their investment properties for decades. If you’re looking to start investing in real estate, we can help you find the right property for you and your family, and with our property management services, we’ll handle all of the day-to-day tasks that come with owning real-estate. For more information or to contact us, visit precisionrealty.com.