Want to give your kids free room and board when they leave for college? Buy them a house when they are born.
I was chatting with a friend last week about how to create wealth and security for our kids in the future and this topic came up for the second time in a month. Instead of tossing money in 529 Plan, we want to purchase assets that will deliver cash flow and intrinsic value in the future.
Here is our plan:
1. Find a property that can be cash flow break even...on a 15 year mortgage. 2. Sell the home in 10 years with projected 3x return on invested capital. 3. Utilize a 1031 exchange to purchase a home in the town where our child attends college 4. Gift the house to the child following graduation.
There are a multitude of strategies that can use Real Estate to pay for things later in life, if you would like to brainstorm about options that might help pay for your lifestyle, let's chat.
Until next time,
-Patrick PS - If you learned something, please share the newsletter with someone you know. |