Yesterday, my son, Sam, closed on his first home. Sam is a senior in high school and will attend the university next year. Several months ago, after reading Rich Dad Poor Dad, he asked me if he could get started in real estate. He especially wanted his own house where he could live and his buddies could rent rooms from him to help pay the mortgage.
Little did Sam realize that I had started planning for this years ago. I arranged my business structure in such a way that Sam is an owner in my business and shows income from my business on his tax returns. Not only has this saved significant income taxes for me, it has enabled Sam to begin his real estate investing at a very young age. His older brother, Max, is also an owner of this new house. Max has been investing in real estate now for several years (and has an excellent credit score).
With the help of my Arizona real estate agent, we found a nice little house that is convenient to the University (and to our house so Sam can bring his laundry home or can come for a good meal). Between Sam and Max, they were able to purchase the house and get a great rate on their financing. And, we bought the house at more than $30,000 under market value.
So start planning now with your children. It's never too early to get them in the game.
Warmest regards,
Tom
