One of the most valuable gifts a parent can give their children is an introduction to the world of real estate investing. Increasing their real estate literacy could benefit them for the rest of their lives.
Leaving money as an inheritance only goes so far. In fact, many wealthy individuals are shunning the idea of leaving their kids too much. Inheritance money is often like lottery winnings; easily and quickly wasted. In contrast, it really doesn’t matter how much or how little you pass on if the next generation is equipped to maximize what they’ve got, protect it, and multiply it. Real estate investing knowledge and experience is perhaps the greatest of all power tools to accomplish such a feat. It’s really never too early to get them started in real estate. So how do you do that?
1. Financial Literacy: Teaching your children about money is probably the best place to start. Teach them about your own housing costs and choices. Involve them in the search for new residences and vacation homes. Explain how important it is to budget. Turn them on to the power of compound gains. Challenge them to think about how they can afford and get more of what they want with creative thinking and entrepreneurship.
2. Bird Dogs: It is never too early to see if they can spot deals. Start by teaching them to look for sale signs. Make it a fun game. When they get a little older, give them financial rewards for bringing home the contact information from for sale signs around the neighborhood. Give them a bonus when those leads turn into deals.
3. Rehab Work: They can cut the grass, plant landscaping, lay flooring, paint, create and put up yard signs, and more. Those that aren’t so physically inclined can help shop for materials.
4. Research: Considering that even a toddler can wield a tablet with ease, kids don’t have to be too old in order to begin to learn how to research real estate markets. This type of learning, as well as creating marketing materials, can especially make for great projects. It is a great tool to help them learn a valuable life lesson.
5. How To Spot Scams: A critical part of educating kids today is teaching them how to watch out for scams, business deals, and slick marketing ploys. What they learn today will carry over into their adult lives, and could save them a lot of time and frustration in the future.
6. Attend Real Estate Events Together: When they’re old enough, consider attending real estate events, seminars, and training sessions together. Take them on property tours and bring them to real estate investor groups. There’s a good chance that they’ll notice or pick up something that you don’t. You can also give them a fantastic head start by introducing them to people.
7. Multifamily Properties: Whether they go to college or not, one of the first real experiences and encounters most kids will end up having with real estate is with multifamily properties. This may be student housing, teaming up with some roommates to share an apartment, or even venturing off to hostels as they backpack the world. This is an incredible learning and investment opportunity. Why have them paying rent to someone else? Can you buy the place, or have them buy the place and manage it? Let them earn their rent, or learn to make a profit so that they can pay for their own schooling or gap year.
8. Give Them Some Money: Without tangible and immediate rewards, money is easy to lose for those who don’t know what they are doing. So how about giving your children some money to go out and invest? The earlier, the better. Let them experiment with investing, and managing the money. They may truly surprise you in what they can accomplish. Plus, more importantly, it can create quality time and memories together.
Summary
Real estate investing is easily the best gift that most parents can ever hope to give their kids. Give them some practical and hands on experience. Then you can leave them capital and properties, with confidence that they’ll maximize them, and grow with sound values.
