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Building Tomorrow: Millennial Real Estate Legacy Strategies

Leaving a RE Legacy

MartelTurnkey attracts individuals from diverse backgrounds seeking cash-flowing assets poised for appreciation. One notable demographic displaying a growing interest in turnkey real estate investment is the Millennial generation. These individuals, aged 26 to 41, have emerged as strategic builders of financial legacies, carving a distinct path amid societal changes. 

 

Contrary to certain stereotypes, many Millennials, whether employed, freelancers or small business owners, possess impressive amounts of disposable income. And many view turnkey rental real estate as a more accessible and secure investment compared to the stock market investments that their parents favored, yet sharing a common focus on leaving a lasting legacy. With familial responsibilities in mind, they contemplate the impact of their digital and economic presence, recognizing life’s finite nature. 

 

In 2022, 54% of purchase mortgage applications came from Millennials, according to CoreLogic. Millennials incorporate turnkey real estate into their legacies in several ways:

 

Self-Expression

Millennials often leverage property ownership as a means of self-expression, naming properties after family members or adopting creative titles. One fun example is a MartelTurnkey client who named his two houses, “Thing One” and “Thing Two” for his future  children. Others choose to express their individualism by imprinting their family name on the buildings themselves, ensuring a lasting historical record.

 

Financial Legacy

Having witnessed unprecedented economic fluctuations, such as the epic rise and fall of Bitcoin, many Millennials prioritize real estate over volatile markets. They understand that, unlike stock ownership, real estate allows them to influence critical choices, such as location and tenant selection. They may envision accumulating a rental property portfolio, offering their children and loved ones diverse financial options for the future, transcending traditional notions of home ownership. It’s their version of building for tomorrow.

 

For the Children

Beyond naming and financial considerations, turnkey rentals provide Millennials with a valuable platform for imparting hands-on financial education. Recognizing the shortcomings of modern formal education, they value the opportunity to cultivate financially literate descendants, laying the foundation for a generation on the path to financial freedom.

 

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If you share a similar focus on legacy, consider reaching out to MartelTurnkey for a conversation. Discover how we simplify the process of buying and owning turnkey rentals, making it approachable for you to construct a real estate empire that not only secures financial freedom but also leaves an enduring mark on posterity.



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The Price of a Cup Of Coffee: Why Investing is Critical

investing coffee analogy

This popular blog from last year bears repeating. Please enjoy again, preferably with a cup of coffee in hand. 

 

We’ve talked in the past about the importance of investing in real estate to protect your wealth from inflation. Considering the ever-rising rates of inflation, we’ve simplified the perils of inflation using a simple metaphor — the rising price of a cup of coffee and how it relates to real estate investing.

How Inflation Erodes Purchasing Power

Let’s say the average cost of a cup of coffee at Starbucks is $5. If inflation averages 8% over the next 2 years, two years from now, that same cup of coffee will cost $5.83. 

 

Boo hoo, right? Maybe you’ll have gotten a raise, or tightened your belt, or won the lottery, or moved to South America, and you’ve been meaning to cut back on caffeine anyway. Why worry?

 

Let’s apply the cup of coffee metaphor to your wealth and net worth… 

 

You have $25,000. How many cups of coffee can you afford today? 5,000 cups of coffee at $5 a cup.

 

Let’s say you decide to keep that $25,000 in the bank, how many cups of coffee can you afford two years from now? Only 4,288 cups of coffee. 712 fewer cups of coffee in 2 years! The same amount of money buys less coffee. Effectively, you’re a lot poorer than you were two years ago. The solution and your goal should be to invest your money to outpace inflation.

Chasing After Yield

Let’s say you invest in a security that has a 9% yield, which is an average stock market return. In two years, your $25,000 is worth $29,700.

 

How many cups of coffee can you buy then? You have enough for 5,094 coffees at $5.83 a cup. The challenge here is to consistently achieve high returns. Can you achieve 9% return on your investment every year? 

The Power of Real Estate

Here’s the amazing thing about real estate investing in times of inflation — it causes asset values to increase, but it causes the value of debt to decrease. After all, that debt is measured in dollars, which has lost purchasing power at a rate of 8% per year!

 

Let’s say you use your $25,000 to purchase a real estate rental property worth $100,000. You pay $5,000 in closing costs, put $20,000 as down payment, and get a $80,000 mortgage. 

 

If this property appreciates at a modest 2% a year, your property is worth $104,000 two years from now. During that same period the property was rented out. The rent you collected paid for your mortgage, taxes, insurance and property management fees, AND over 2 years, you generated $6,000 in positive cash flow. On top of that, the rent also reduced the amount of your loan to $78,500 (you paid down $1,500.)

 

Now, how much is your investment worth? At the end of two years your $25,000 investment is worth $32,500.

 

How many Starbucks can you afford now? Over 5,574! 480 more cups of caffeine than the stock market investment. In a very short two year period, you increased your purchasing power significantly, whereas in the first two examples (stashing cash and a 9% stock market investment) you either lost purchasing power or barely maintained it by taking significant risks.

 

And guess what — it gets even more excitingly dramatic as you increase the investment period. The most positive results are possible through appreciation and leverage.

 

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If you know it’s time to get serious about inflation, reach out to MartelTurnkey today. We have cash-flowing, renovated homes  with tenants in place, available for investors. Protect your wealth the wise way. And as a bonus, our cash flow spreadsheets, which are easily downloadable for every property, include 10-year projections.

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What Does It Mean to be “Financially Free?”

We often talk about “financial freedom” here at MartelTurnkey. 

 

On the surface, we’re a real estate company. “Thanks, Captain Obvious,” right? Our core business is to acquire rental properties and to help other people acquire cash flowing rental properties for their own portfolio.

 

But that’s what we do … not why we do it. The “why” of a business is important. If you want to know what a company stands for, push past the “what” and get to the “why.”

 

Scratch below that surface, and MartelTurnkey isn’t in the real estate business — we’re in the financial freedom business. Real estate is just a means to that end. We help clients acquire rental property so they can realize the dream of financial freedom. 

 

So what does financial freedom look like … and why build a business around it?

What is “financial freedom?”

“Financial freedom” is an approach to wealth. What is a wealthy person? Someone with an abundance or surplus of assets.

 

What kind of assets? Money? Real estate? Gold? Bitcoin? What’s the most valuable asset?

 

Many smart people — including the people who work here — actually value one asset above all others — time. 

 

From the slums to the White House, everyone has the same 24 hours a day. Money comes and goes; power comes and goes. But time only goes. You can always make more money. Governments can print more money. And there are millions of acres of undeveloped land. But no one can create more time.

 

And eventually, we all run out of time. We’re all on this planet for a limited amount of time. Time is the only asset of absolute value.

 

For such a valuable asset, most people don’t own most of their time. The average American will spend 90,000 hours of their lives at work … and a global Gallup Poll revealed that only 15% of all employees feel engaged by their work, leaving a whopping 85% dissatisfied with their jobs on some level. That’s a lot of time to spend miserable. 

Measuring Wealth Not in Money, but in Time

At MartelTurnkey, we believe that the true measure of wealth is not how much money you have, not how much real estate you own, but how much time you own.

 

Some people call it “financial freedom.” Others call it “early retirement.” Look at it this way … if you were to no longer report to work — to a job that, love it or hate it, requires you to spend your time as your boss sees fit rather than as you see fit — how long could you exist before you ran out of money?

 

Six months? You’re “six months wealthy.” Five years? You’re “five years wealthy.”

 

What if you could skip out of work and cover your bills and pleasures indefinitely? That’s when you’re “financially free.”

 

What can create this enviable condition? Consistent cash flow. Money that arrives in your bank account not in exchange for your time, but as a dividend for your ownership of an asset.

 

At MartelTurnkey, we trade real estate because we believe it’s the best way to create this kind of cash flow. Not only does property under management produce revenue while you sleep … real estate investment also offers the advantages of leverage and tax savings.

How Much Cash Flow to Financial Freedom?

By this metric, financial freedom happens at a different net worth for each individual. 

 

Take an office employee who earns $50,000 a year. By amassing a portfolio that creates $50,000 in passive rental cash flow, that employee is now financially free. He can quit work and maintain his same lifestyle.

 

(Actually, it’s closer to $30,000 or $35,000 in cash flow, considering how heavily employees are taxed and how much you can save in taxes as a real estate investor.)

 

An employee who makes $100,000 a year will need to amass a portfolio twice as large to achieve financial freedom, because there’s more income to replace. And this always assumes that on the way to financial freedom you don’t develop a taste for Rolex watches, Prada bags, and Lamborghinis. “Financial freedom” isn’t the same thing as “fabulous wealth” … but it’s much easier to achieve. 

 

In fact, through real estate, we at MartelTurnkey firmly believe that financial freedom is within reach for almost any employee who has the discipline and will to go after it. And that’s why we’re dedicated to making it happen for everyone who partners with us to create cash flow, grow their net worth, and build their legacy. Many, many of our investors buy multiple rental properties through us, some all at once, others consistently over time.  We work with them to reach their goals.  

 

Ready to start your journey toward financial freedom? Reach out to us today and let’s get the ball rolling on your first rental property … or the next one! It’s easier than you think.