Real Estate Funds College
When you talk to your financial adviser you often hear about savings accounts, mutual funds, stocks, bonds, etc. for financing our youths college related expenses.
A few years ago real estate popular trainer Howard Brinton interviewed real estate broker Larry Kendall of Northern Colorado. Larry gave some very simple and yet highly overlooked advice for funding our children's college.
Larry recommended during his interview to simply purchase a home when our children are very young. Either finance the home with a 15 year mortgage or make additional payments on a 30 year mortgage and make additional principal payments.
When your child turns 18 simply deed the free and clear home to your child. You have a great tax write off as a parent and the child is in a low tax bracket and will have little tax consequence. The child can continue to rent the property and fund his/her college tuition or sell the property to fund the tuition and related expensed.
The appreciation over 15 to 18 years would be substantial in any market, USA and this type of investment would fund a very good education for most children.
What a great way for Grandparents to help their grandchildren as well. Larry Kendall has advised numerous clients and sales associates on this method of college funding and has story after story of happy families. I mentioned this years ago to several clients and Realtors. I know of several families that are using it with great success and 3 Realtors that are on the verge of financing their childrens college education.
If you haven't heard of Larry Kendall I highly recommend anything you can get your hands on that he has written. He is a man of dignity and character. Larry is an owner of The Group LLC in Colorado.
Contact your attorney or CPA for advice.