Young people are learning to invest in real estate. Young people today seem to be learning a lot faster than my generation. True, I’m only 42. So it’s not like I’m a geezer, yet. But when I am working with these 24, 25, 26 & 27 year old clients I feel like a proud papa.
– – –See this photo? Even with the movement towards financial security, this is about the right ratio of “people in the crowd” actually making the move towards owning income property. – – –
This won’t be a long blog post. It is really just a post to say how proud I am to help these kids get started. Rather than spend all their money on trips and single family homes that are too big for them at this time I’m seeing twenty-somethings purchase a duplex, rent out half and live in the other side.
The plan is nearly always the same: Live in one side and rent the other for about 2-3 years. Then, move on to the single family home (or another duplex) as an owner-occupant and keep the duplex as an investment property.
A few will be satisfied with that. And that is fine. Think about it. If they don’t do anything else, if they don’t buy another rental property. If they don’t 1031 exchange. If they don’t lease option, etc. When they are in their 50’s they’ll have a piece of property that is 100% paid for, cash flowing tremendously and can sell it to help fund their retirement.
Editor’s note: The above strategy is not recommended as a good long term strategy. But even that strategy is 1,000% better than what most people will do.
And another terrific thing is these young adults are still investing in their 401K’s and/or their IRAs. And even better, a few are taking on other income properties, as well.
So there is definite hope for the generation that follows mine. Self-reliance and entrepreneurship are alive and well in America. And that is a good thing.
BBQ Capital | Kansas City Real Estate Investing 
Great post, Chris. I love that we’re both finding the same things in buyers. This generation is pretty agressive and with the right education and help, I think they’re going to have a big impact on the real estate world and I’m lovin’ it.