Building Generation Wealth – with Real Estate

People invest for an array of reasons, but among them is the desire to secure comfortable and stable futures for their families. Wealth secured for future generations—one’s children and children’s children—is known as “generational wealth.” Building generational wealth, however, takes prudent and careful investing. For many, real estate is an enticing investment option for its unique and lucrative benefits such as cash flow, appreciation, and leverage.

Unlike other investments, such as stocks, bonds and CDs, where quick returns are rare or nonexistent, the returns from a real estate investment property are immediate, steady and build wealth over time. In real estate, it’s called cash flow, the return on investment in the form of rent after the mortgage and expenses have been paid.

Today’s market provides incredible investment opportunities with great cash flow potential. In fact, rent prices increased 5.1% nationwide from 2011 to 20121, while interest rates and the median existing home sales price remained low, providing investors with even greater cash flow returns.

 While one should always invest for cash flow, appreciation is still a very lucrative benefit of real estate and an incredible opportunity for investors looking to secure long-term, generational wealth. The real estate market has long operated in cycles of rapid and slow appreciation, and even with the recent fluctuation in the housing market, median home prices have still risen at a rate of 5.2% every year when adjusted for inflation. That means a home purchased in 1969 for $21,800 (which was the median sales price that year), would have been worth $172,900 at the end of 2010. Not bad, huh?

If you are someone you know would like to learn more about how you can start investing in our real estate market, today, please give me a call at 602-942-7000 or via email at By investing carefully and for the long-term, you can build a financial legacy and ensure that future generations of your family have secure, comfortable futures and increased opportunities available to them. I look forward to hearing from you soon – Nate

Certified Investor Agent Specialist (CIAS)