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Let’s Talk About Legacy …

Leaving a RE Legacy

People from all demographics come to MartelTurnkey in search of cash-flowing assets ripe for appreciation — the easy way. But one generation we’re noticing with a surge of interest in turnkey real estate investing is the Millennial generation.  They come to us with the vision of building a financial legacy.

 

You know, those much-maligned slackers who quietly and without complaint took over the economy while their Boomer parents were still complaining about “hip-hops” and the “social medias.”  They’re the ones strategically building financial legacies!

 

These “perpetual children” with their faces in their phones have come into their own. Anywhere from 26 to 41 years old as of this writing, they either have good jobs or they have struck out on their own as freelancers and small business owners. A few have even struck it rich as crypto-bros or influencers. 

 

Needless to say, they have disposable income. Many of them see turnkey rental real estate as being easier and more secure than playing the stock market. And they all have one thing in common — the Millennials are focused on  legacy. 

 

Many have kids. Others have nieces and nephews. They’re thinking about their digital and economic footprint, coming to the realization that life is finite, and they’re concerned about what kind of legacy they’re going to leave behind.

 

Here’s how we see them integrate turnkey real estate investing into their legacy:

1. Self-Expression

Owning real estate is a priceless opportunity to leave a mark on the world, planted into the very ground beneath our feet. We have seen our Millennial clients take that and run with it. 

 

Our clients have named property after their children, or after nieces and nephews. Come what may, their family name will be stamped on buildings – and even if the next owner changes the name, it will survive somewhere in the historical record.  

 

Another one of our clients got Seussical and named his turnkey rentals “Thing 1” and “Thing 2.” This is a generation known for its expressive individualism, and this generation of real estate investors isn’t afraid to show it.

2. Financial Legacy

Millennials have seen enough recessions in their lifetime to know that companies come and go, but land is forever. Holding Apple stock in their 401(k) doesn’t give them design input on the next iPhone … but they can choose what tenant to accept in their turnkey rental.

 

Thinking again about the children in their family, they can slowly accumulate a portfolio of rental real estate to leave them with a formidable financial empire, far beyond a family home that keeps getting bigger and bigger (with a bigger and bigger mortgage). 

 

They could buy a rental house when a child is born, let it cash-flow for 20 years, and gift that now-college-aged child a host of options — sell the property, refinance, or keep it as a cornerstone of their own real estate empire. 

3. For the Children

We’ve talked about naming property after the children. About leaving a financial legacy for the children. But perhaps the most important legacy of turnkey rentals is the learning experience — the chance to teach hands-on financial lessons deplorably absent from the school system. 

 

What better legacy than a generation of financially-literate progeny on the road to financial freedom from the cradle?

 

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If legacy has been on your mind, reach out to MartelTurnkey and let’s have a conversation. You will be amazed at how easy and approachable we make it to build a real estate empire you can use to achieve financial freedom and make your mark on posterity. 



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How the Rich Get Richer During Economic Downturns

Growing money

We’ve all heard about how “the rich get richer.” Smarter people than any of us have marveled about how the rich seem to get richer even during times of recession. 

 

How is that possible? When the rest of the economy is contracting, how do wealthy people keep expanding, seemingly in defiance of gravity? 

 

The best way to explain it is that the rich understand, better than most of us, that money is inherently an illusion. It can either expand or contract, relatively at will, depending on what kind of illusionist you are — what magic tricks you do. This is especially true in economic hard times.

 

So if money is an illusion, and what matters is what tricks you do with it … what rich-person money tricks can we all copy so we can protect and grow our wealth during economic downturns?

1. Invest In Appreciating Assets

Middle-class people tend to use money to buy toys. Cars, watches, clothing, gadgets … what Robert Kiyosaki referred to as “doo-dads.” But when you’ve bought every toy … what else is there to buy?

 

Rich people exercise “retail therapy” by buying appreciating assets like gold or real estate. They enjoy buying it the way a shopaholic enjoys checking out at Nordstrom. 

 

And they aren’t looking for a 3-6 month profit. They take the long view — something they will allow to appreciate for 3-5 years minimum before they sell. They enjoy owning it. The longer they own it, the longer they have made the illusion of money into the reality of a hard asset.

2. Use Leverage

Leverage is a fancy way of saying “Let’s buy this with other peoples’ money instead of our own.” When it’s a credit card at the shopping mall, this is a dangerous way to get into a financial hole. When it’s using debt to accumulate appreciation assets, it can be extraordinarily powerful.

 

The best-known example of leverage is using a mortgage to buy real estate. Let’s say I have $100,000 cash, and I find a house for $100,000 in a market that appreciates 3% per year. If I use all of my cash to buy that house free-and-clear, by the end of the first year it will be worth $103,000. My net worth went up $3,000.

 

Now let’s say I use leverage. Instead of using all my cash for one house, I divide it into four and make down payments on four houses. At the end of that first year, my net worth had increased $12,000, not $3,000. Yes, the mortgage payment eats into that a little, but not nearly enough to erode the benefit. 

 

Wealthy people have access to incredible leverage due to their net worth and connections … but the home or investment mortgage is special because it’s within reach of most people with reasonable financial fitness.

3. Income-Generating Assets

The rich are always giving themselves raises — but not like Congress gives itself raises. Rich people increase their income by choosing assets to buy that generate income. Cash-flowing businesses, promissory notes, and — most relevant to us — rental real estate.

 

Here’s the secret — the amount of cash flow doesn’t matter as much to them. Consider the recent interest-rate hikes. In a higher-interest-rate environment, cash flows are going to be smaller. 

 

But for the rich, even small positive cash flow is worth having … if it’s an appreciating asset. As long as the asset pays for itself, why not? Appreciation will eventually pay off. Meanwhile, every small amount of cash flow is contributing to financial freedom — enough passive income to cover all personal expenses without having to work.  

 

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MartelTurnkey investments are three-for-three — appreciating, income-generating, and leveraged. If you want to prosper in the next recession like the rich do, reach out to us and let’s make your next asset acquisition easy.

Check out Eric Martel’s youtube channel for more insights