You might be wondering: Why does this guy spend so much time writing about apartment buildings?
I think the financial crisis of the past few years has changed something fundamental about the relationship between young people and real estate, and I want to try to both explain that change, and help shape it and move it forward.
Before the crash, here’s how most people felt about real estate:
- I want a big house on a big piece of property
- I will work very hard at my job in order to afford to take out a big mortgage to afford this big house
- While I own it, this big house will increase in value every year
- Some day, I will sell my big house, take my profits and buy an even bigger one
Here’s what happened as a result: A lot of people ended up buried under huge mortgages, unable to sell, unable to re-finance, and facing years (maybe decades) of hard work in order to pay off loans on properties that will never be worth what they bought them for (at least, in real terms).
Sensible young people looking at this situation could come to two conclusions, both reasonable:
- I will never own property. It’s not worth the risk. There is value in the flexibility that renting provides. I will therefore rent. Or…
- I will own property, but it will be income property. I will slowly build an asset base, taking advantage of the low price of real estate, the availability of cheap debt, and the major subsidies that both the national and state tax codes provide to owners. Over time, as I save more money, I will buy more income property. And, eventually, one day, maybe 10-20 years from now, I will wake up to the fact that I have secured my family’s financial future.
I write this blog for the people who have reached conclusion two. If you are one of these people, or think you might be, get in touch.
I will help you learn for yourself how this whole thing works. And then, when you’re ready, I will help you buy your first income property. (Bonus: The whole thing is free, because, as a broker, I get paid by the sellers of property, not the buyers.)