In our family business, our main goal and purpose in purchasing buy and hold properties is to build legacy wealth. We strive to own cash-flowing properties that we can pass to our children when they become adults. We recently read a book that got us thinking about not only building a financial legacy, but also measuring our wealth in terms of family values.
Today on Investing in Real Estate, Natali and I are discussing the main disciplines that we’ve learned about successfully transferring wealth to the next generation. We’ll discuss not only the importance of building tangible wealth, but also teaching our children about our family’s identity. If you want to build long-lasting wealth for your family, this is an episode you won’t want to miss!
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The book Entrusted: Building a Legacy That Lasts outlines seven proven principles that allow families to build wealth, and a family legacy that transcends generations. Because our family has made it our purpose to accumulate properties that cash flow, we want to ensure that we teach our children how to properly manage that cash flow, as well as what we see as the appropriate way to run a business.
The book describes an inheritance as a flame, a result of all of your work. However, there’s a difference between simply handing your heirs the flame, and teaching them how to build a fire. It’s crucial to consider involving your heirs in the entire process, and we found that idea motivating. The thesis is, investors should be involving their heirs in the process of wealth building, so they can learn the lesson of how the wealth was earned, and so they understand who they are as a family.
One discipline in the book is “entrusted families know who they are and what they believe.” For us, this means we teach our children not only what it means to build wealth, but also how we go about running a business. We want to teach our family values such as treating others well, and considering how our decisions affect others. As you build wealth, you want to make sure your practices are in alignment with your family values.
In our turnkey company, our children have observed me speaking with investors, and making sure they are taken care of. I make a point to be fair to contractors, and ensure that my tenants are satisfied with the houses. If an issue or misunderstanding arises, I’m on the phone taking care of it. My kids know that I am hands-on, and that I care about what happens in the business. They see that I’m helping others, and to me, that’s important.
On today’s show, we’re outlining the remaining explaining the exact strategy we’re using to build wealth in our family. We’ll share how we’ve structured our trusts and estates, and how our children will have access to funds. We’ll also discuss the importance of having a trust, and how to take your children’s personalities into account when planning your estate.
If you’re ready to begin building a passive income through rental real estate, book a FREE call with my team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- How can you make sure your assets are protected within the appropriate structures?
- What does generosity have to do with wealth building?
- How do we justify the costs of working with a CPA firm?
- The importance of involving your children in your wealth building strategy.
- And much more about buy and hold real estate!