Generational Perspectives
by Tony Youngs
As with most parents, we always want our children to do well and be successful. I myself only have one child, a 24-year-old daughter. As she was growing up and going through school, I always wanted her to get into real estate investing. Why, because it builds wealth and provides income even while you are sleeping. For me, a baby boomer, it has been the greatest life I have ever known. Pure joy.
I always took my daughter to see my rental properties and told her that I own them but my renters are buying them for me. I told her that they pay me rent to live there and explained to her about positive cash flow and how it works. I would also take her to rehab projects and walk her through them and then explain why we do it. I really thought I was rubbing off on her and making a good impression.
She made good grades all through school and was eager to go to college. I asked her what she was going to study and she said Psychology. When I ask her why, she said, that’s what I’m interested in. She told me that real estate is fine but “I want to do my own thing”. I respected her decision because when I was her age, I felt the same way. I wanted to do what I wanted to do, no matter what my parents wanted.
My daughter went on to college and she did well, however, a funny thing happened during her last year at college – she all of a sudden became interested in real estate investing. She started to ask me if I knew anything about wholesaling. I said yes, and I asked her where she had heard the term. She said a few of her buddies were telling her that they wanted to get into wholesale real estate. You see, when we parents say it, the younger generation doesn’t want to listen but when their peers say it, it becomes a truth for them. I told her I would be glad to help.
She graduated from college with a degree in Psychology and Immediately got a job in Colorado Springs, Colorado and put real estate on the side. She explained that millennials have dreams to travel and see the world. Some had no desire to get a home and start a family or settle in one place. They seem to just want instant gratification.
Her job ended up being a one-year stepping stone but she loved Colorado and wanted to stay there but, decided to come back to Georgia. My daughter discovered that living on your own is great but it takes money to make it. On her own she invested in the stock market and she said she lost money. It turns out she was day-trading. However, she remembered that real estate can produce large amounts of money and is a safer investment.
I began taking her with me when I go out to find deals, I explained that it is very competitive and that’s why I go door knocking and driving for dollars. The very first door we knocked on together, the owner talked and talked. My daughter jumped right in and the homeowner really enjoyed talking to her. He told her everything about how he wanted to sell but didn’t know what he was going to do with all his stuff. He said his house needs a lot of work and that he wanted to move out of state and has a place in mind. I said we would make an offer within twenty-four hours. My daughter and I went back to the office to write the offer. It ended up solving all the problems for the seller.
My daughter has seen the light and is very valuable to the business because millennials and the younger crowd do everything on their phones. She understands the benefit of driving the neighborhoods to beat the competition and while we sit in front of a house, she tells me the owners name, the after-repair value, any liens against it, and the approximate loan balance – all from her phone before we even knock on the door.
In summary, if you want to get your sons or daughters involved in real estate, I recommend you show them copies of checks. Why? Because that is their main motivation. Remember they like instant gratification and want to work smarter, not harder. If they have jobs, show them how to invest their earnings in real estate. I would like to get my daughter a rental house or two – even if she must get a property manager. Owning real estate has a proven track record.
I recently wholesaled a property to a 20-year-old who has 16 flips being rehabbed at the same time. He is the project manager and finds the deals. He is kicking it and has a money-backer with very deep pockets. I was so impressed that I have made arrangements for my daughter to meet him and learn from his successes.
We all wish we had started at a young age like that.
Tony Youngs is an active real estate investor and Hands On trainer, a national speaker and the author of The “Hidden Market” system of acquiring off market properties. He can be reached at his website at www.tonyyoungs.com
