Millennials and Real Estate: the incoming big investors with a sustainable focus

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Millennials (no surprise) make the new largest home buyer demographic, and keenly tuned into the latest real estate trends. Even though most were not old enough to say they lived through the experience of it, they’ve seen markets crash a decade ago, and watched them come back. Business Wire suggests that 86% of Millennials (a whopping 50 million) desire to own a house someday. Now, that is a trend worth noting.   

With the calls from young adults flooding our office recently, it is obvious it is not just personal housing that is of interest, but the a general passion of real estate. Shows about home flipping are of big interest to this consumer demographic as well. This makes great sense as typically millennials like to do their own thing and be their own boss.

Real Estate out performs Stock by almost 2 to 1

A report put out by Realty Shares shows that real estate has outperformed the stock market by almost 2 to 1.

12 years ago, two thirds of Americans were putting their investment dollar into real estate. The trends are rapidly turning to real estate. This makes great sense as the consensus from all the people we’ve heard from is that investors feel they have much better control over the outcome of their investment when they have personal control over them.

This same Realty Shares survey shows that only 25% feel that the stock market is the best place to invest their hard earned dollars in and 55 percent of millennials surveyed are interested in investing in real estate and that number would be higher if it was more technology driven.  

Why millennials favor real estate as investing

As confessed information junkies, we get it! We are constantly searching for answers while watching the latest trends.  What we’ve found is that millennials are generally diligent on the internet in quest for investment opportunities.

1.     Tangible assets to make more investing sense than a non-tangible asset

2.     The population growing and the need for housing always on the rise

3.     Millennials are very sustainable conscious and want to conserve resources and the new sustainable homes and net zero construction techniques are very appealing

4.     Building off the grid in remote locations also intrigue

Will Millennials take the lead in the ever-expanding real estate market?

The baby boomers and generation x’ers are downsizing.

The millennials who were not so quick to get married and have children as the generations before them are now coming to this point of family expansion.  As a result, more and more are taking the next logical step and buying a home. Along with buying a home to live in, this generatipn find real estate investing to be the most prudent place to put your investment dollar.

How to get started in Real Estate Investing

1.     Education. This one will be easy due to the love the internet there is so much information available today one can literally find everything you want to know. But word of caution. Step 2 is paramount

2.     Find your Investment niche: is it fix and flip, buy and hold sustainable properties. The number one mistake most new investor’s make is spending all their time and resources chasing the next shiny object. The double edge sword with all the information available on the Net today is it is easy to get pulled into many different directions. I see many investors do this. Please do not be one of these people who spend years chasing every deal, only to get overwhelmed with all the information and give up. Pick your investment niche, learn it and excel on it before diversifying or getting bogged down with TMI

3.     Follow these 7 steps to stay focused and make sure you are position to execute your strategies.

Phase 1 Focus

Phase 2 Financing Set Up

Phase 3: Entity Structure Set Up

PHASE 4: LOCATION DUE DILIGENCE

PHASE 5: BUILD YOUR POWER TEAM

Phase 6: Property Due Diligence

Phase 7: Acquisition and Duplicate the Process