Q&A: How Can I Invest with My Child? – Episode 879

 

Today’s first caller asked an interesting question about using college funds to invest in real estate. What’s the best way for an investor to get their child involved in real estate investing? That’s the first question I’m answering on today’s show!

This Q&A episode features three great listener questions on involving children in your investing, how USDA loans work, and the best way to utilize equity gains. Hear my answers to your best investing questions on this episode of Investing in Real Estate!

On this episode you’ll learn: 

• What to consider about investing with your child.
• Things to know about using a USDA loan.
• How to use your equity to reach financial goals.

What to Consider About Investing with Your Child

I think it’s a great idea to contemplate using college funds to invest in real estate. Consider what kind of ROI you can get on a rental property vs. a college degree. This is a personal decision, of course, but college isn’t for everyone. Investing is a smart financial move, regardless of your career choices.

I’d suggest setting up a free consultation with a great legal team like Corporate Direct. They can advise you on entity setup and the best methods for having a partnership with a parent & child.

Things to Know About Using a USDA Loan

• A USDA loan can only be used for a primary home
• You must have proof of a dependable income
• You must have a decent credit score
• The loan is usually for homes 2000 sq. ft. or less
• The loan is usually for properties between $100,000 and $500,000

To determine if this is a fit for you, I’d suggest sitting down with a local banker who knows your market. There are a lot of criteria for this loan type, and again, it cannot be used for a rental property.

How to Use Your Equity to Reach Financial Goals

I love talking about how to use your equity to reach your financial goals. So much so, I wrote a book about it! In How to Pay Off Your Mortgage in 5 Years, you’ll learn how to use a HELOC to pay down your mortgage and/or invest. The HELOC is a great financial product that can be used in a multitude of ways. I would recommend shopping with a local bank to get the best product possible.

Ask Me a Question at morrisinvest.com/clayton

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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

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