Years ago, I heard a well known real estate trainer make the statement "you will never get rich selling real estate, but you might get rich investing in it!" If ever a thought stuck with me over the years-this was the one. I know this is not a unique idea. I am somewhat of an insomniac, so I am well aware a lot of "self-made real estate tycoons" haunt the early morning TV shows. Although I question some of the "get rich plans," being sold to those with a credit card, I do not question the value of the investment message! Real Estate is, and always has been, a great place to grow your money! Now, how about taking that concept and applying it to a college fund?
The "American Way" is to buy a small house, live there a few years, sell it, make money and move up-then do it again and again. I see people do this every day! I also see smart investors realizing the value in this plan and applying it to building a "nest egg." If you are serious about real estate college funds, give these ideas some thought:
- Buy a rent house when your child is young so that you have the option of selling it to pay tuition
- Keep the rent house and allow your child to rent out the 2nd and 3rd bedrooms for living expenses or to pay the payment (either way is cheaper than you paying a landlord!)
- Buy a distressed property and "flip it" for extra cash
On October 8, 1956, The New York Yankees won the World Series. Don Larsen, a somewhat mediocre right-hander, pitched the perfect game! It was his "15 minutes" of fame. After the big "win", Larsen signed for endorsements and appearances bringing in approximately $35,000, including $6,000 for a Bob Hope TV appearance. He commemorated the game by spending $1000 having plaques made up for Yankee executives, the six umpires, his family and close friends. It was big money in another era!
Larsen never had another perfect day, nor did he ever, again, lead his league in any category. In 2002, Don Larsen drew the public's attention another way. He auctioned off the game ball and his glove to finance his grandchildren's education.
Quite a testimony to the value he put on education, uh?
Most of us do not have sports memorabilia to finance our child's education. All of us do have the power, given the right guidance, to make money and finance a college fund-thru real estate. College towns are a safe haven for the smart investor. New students arrive every year, offering a consistent population and a somewhat stable economy. One thing they all have in common is that they need a place to live.
The GAO tells us that the cost of higher learning is rising faster than the average household income. It looks like most of us, will be "sending our money to college." Scary thought, uh?
Call me at my Keller Williams office today to discuss your investment needs.