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Why Real Estate Investing Suits the Millennial Mindset

In the next three years, millennials will represent 75% of the global workforce, which means we’re about to see some monumental paradigm shifts take shape. Since entering the workforce, millennials have been steadfast in their determination to do things differently. Rather than repeating the ways of their Baby Boomer and Gen X parents who (often out of necessity) operated under a live-to-work mentality, millennials are flipping the equation. With an eye on work-life balance and creating lives that extend beyond the boardroom, they want to work just enough to maintain their standard of living. While some characterize this as pure laziness, I see it as a radical mindset shift that emphasizes working smarter over working harder — and my prediction is that passive income will have a big role to play in the transition.

What is Passive Income?

For those who are unfamiliar with the term, passive income (also known as unearned income) is money you make without actually going to work. Its counterpart earned income, is your salary or the hourly rate you accumulate when you clock in and out each day. Essentially, setting up one or more streams of passive income will allow you to work less while maintaining your current standard of living, making it of particular interest for the millennial mindset.

All it takes is a quick Google search to show you the plenitude of passive income options out there. You’ll find everything from affiliate marketing to selling digital templates, to investing in cryptocurrency. The options are seemingly endless but as exciting as the world of digital investing may be, the ride is tumultuous, to say the least. So, if you’re onboard for passive income, but want a more reliable option that will retain value, even at the worst of times, real estate is your best bet. Why? Well, real estate has something called intrinsic value, which means it has value in and of itself. So even if the market fluctuates, a property will always hold value in its most essential form, shelter. And, because human beings need shelter to survive and are willing to pay for it, the value of your investment lies within it. Real estate is also one of the few investments that enable you to take on good debt and allows you to build your wealth even further. I’ll give you an example of what I mean by that.

Let’s say you find a rental property that would give you a 15% return on investment (ROI) and you know that the bank is giving out loans at 4%. That means, even though you’re taking on debt (in the form of a loan or mortgage) you’ll still be up 11% on your investment each month, making it a good form of debt. Now, don’t forget that as your tenant pays rent, the principal on your mortgage decreases, and your equity increases (since you owe the bank less each month). So, with one property you’re making 11% ROI and building equity and long-term wealth as the property value increases over time. Those are three solid ways you’re creating wealth from one investment, which is something that just can’t be said for NFTs or crypto.

How to Get Started Now

While many view investment funds as something you get into once you have built wealth, rather than a way to create it, I challenge you to reverse that equation. Investment funds are one of the easiest and safest ways to get into the game and let me tell you why.

· You gain access to our expertise. At Blue Ridge, we have over 50 years of combined experience, and regardless of how quickly you learn, it’s mathematically impossible to compete with that as a millennial. We’ve been in the game for decades and know how to spot a good deal from a dud, so you know you’ll never be led astray.

· We do all the heavy lifting. While we work hard to make the most of your investment, you can spend your time focusing on your career, allowing you to grow your salary and investment simultaneously.

· Benefit from our vast network. Not only do we have access to deals you won’t find as an individual, but our expansive portfolio allows us to obtain better financing and costs of materials. So, regardless of the project, you’ll be getting the best bang for your buck.

Regardless of which passive income stream suits your goals best, my one piece of advice would be to start now. I know pulling the trigger on your first investment (passive or otherwise) is intimating but the truth of the matter is, you can’t buy time — and the earlier you start the longer your investment has to grow.


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