Generational Passive Real Estate Investing

Generational Passive Real Estate Investing

Generational Passive Real Estate Investing

Passive real estate investing skips an entire generation.

Why?

The high barrier of entry.

Some deals require only accredited investors, who earn $200k-$300k per year = high barrier

Or having a $ 1 million net worth = high barrier

Often, these deals require a minimum of $50,000 to invest = high barrier

The typical age for the above scenario is 35 years old or greater.

Which means → an entire generation aged 20-34 is skipped.

We all hear that you can't time the market.

Those who win typically have a longer time (duration) in the market.

So, what's the solution for younger-generation investors?

→ Owner-occupied small multifamily assets.

Here are 5 reasons why:

1 - Low down payments: 3.5-5% means you can own an asset for ~$20,000

This means that for an asset valued at, for instance, $400,000, a young investor might only need $14,000 to $20,000 as a down payment.

2 - Offset your housing expenses 50-75% = immediate savings

By living in one of the units while renting out the others, young investors can offset a significant portion of their housing expenses.

3 - Future appreciation

Small multifamily properties historically appreciate, offering the potential for increased property value and long-term wealth-building.

4 - Sole ownership

Owning the entire property provides more control and a simpler entry point into real estate compared to larger, shared investments.

5 - Tax savings

Real estate investment comes with tax benefits, including deductions on mortgage interest, property taxes, and depreciation.

Anyone can start growing their money with passive real estate investing—it's not just for the rich.

The key is figuring out what you can do with what you've got.

Thoughts?

Merrill Kaliser
Merrill Kaliser