Leonard Person has been in the real estate business for over 20 years. In 2007, Leonard wrote and published a book called Hood Estate: The Manual which thoroughly addresses many of concerns of purchasing property. He gave us a few gems to ensure we’re staying educated!
How can we break generational curses when it comes to our financial situations?
We can break generational curses by teaching our kids financial structure, financial management, and how to prioritize at an early age. I have two daughters, 18 and 14 years old and have had full custody of them for the past 12 years. I started teaching them about credit at the age of 10. It was very difficult to get them to pay attention to something like that at an age where they just wanted to watch YouTube, play with toys, or watch cartoons. But as the years went along, I kept planting the seed about establishing credit and how I invest in real estate. I used to take them to some of my properties in Queens, New York and Elizabeth, New Jersey to collect rent from tenants. I would make them count the rent that I received in cash or check and bring them with me to the bank to deposit it. They’d ask me why people paid me to live there and I explained to them that I provide room and board because I own the property, which makes me the landlord. I further explained to them the benefits of owning a property, like not having to pay rent every month, and how, in a couple years, I can sell it when it appreciates in value for almost double of what I bought it for. Now my kids naturally have an idea on how to invest without feeling discouraged, or that it can’t be accomplished, because I gave them hands-on experience at a young age. They were able to feel the money in their hands. They went with me to the bank to deposit the money. They saw me sell the properties and made a big profit. Whatever doubts they had in their mind doesn’t exist anymore because the experience was real. You have to start with teaching the children how to build an economic financial structure, and also how to execute these investment strategies. You can leave your kids money and all types of inheritance, but if you don’t teach them how you earned it and how to manage it, then it can easily be taken away through a lack of knowledge or someone taking advantage of them.
What are five things Generation Z needs to know before buying a home in today’s market?
- Don’t buy a property over asking price. Buy property with at least 25 to 30% worth of equity in it.
- Have an exit strategy just in case you don’t want the property anymore.
- Try to buy property under market value.
- Find a good contractor or handyman that’s licensed to handle the maintenance of your property, especially with being a first-time buyer.
For more exclusive tips, make sure to check out the July/August issue on stands Tuesday, June 27th.
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Images by Jeremy Ryan
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