Episode 67: Real Estate Investing is the BEST Way to Create Your Legacy for Future Generations

Welcome to the On Purpose Investor podcast show number 67. Real estate investing is the best way to create a legacy for future generations. Welcome to the On Purpose Investor podcast. My name is Eric Vogel. I'm a real estate investor mastermind, coach, husband to an amazing woman and often my co-host, tiffany, and father to two incredible boys. I'm on a mission to help you become a real estate investor and not only achieve seven figure success, like my wife and I did, but to do so with intention, direction and clarity. If you want to transform your financial and personal goals, become the version of yourself you've always wanted, and reach your dream life ASAP, then you're in the right place. Thank you for deciding to hit that play button today. Now let's begin what is going on, everybody, and welcome back to the On Purpose Investor podcast. I'm your host, eric, back with my amazing, lovely, super good looking, outstanding mother and stunning wife. Today we're diving into how real estate investing is the best way to create a legacy for future generations. You know most people work a nine to five for 40 years with the hope that they have enough save for retirement to live that comfortable life, but not enough to pass down well for future generations. They often miss out on their kids' school and sporting events and live for that one week vacation with their family every summer. But with the right resources and mindset, people can learn how to invest in real estate and create financial and time freedom so that they can live their dream life in their 30s, 40s and 50s, instead of having to wait until they're 60 to truly start living.

Yeah, we hear about the big institutional investors buying up single family houses, but did you know there's 10.6 million families who own rental properties? 41% of the total rental units in the US are owned by mom and pop landlords. You can become one of the 10.6 million and start generating passive income through rental properties instead of working for 40 years like our parents and grandparents did.

If more people can live free of the constraints of money and work, they will be free to show up for their kids more and create a happier and more exciting future for their family, as opposed to working hard all year. So they can spend just one week at the beach with their kids.

Yeah, it's our job to create the best life we can for our kids and future generations, and the fastest way to do it is through rental property investing. People will not only have the money to relieve the stress of paycheck to paycheck cycles, but will have the time freedom to invest in their kids and live out their passions.

Right In 10 years, do you want to be in the same place that you are right now, or do you want to take action so you can begin building that legacy for future generations and create the life of your wildest dreams? So, listeners, if you're ready and want to start building out your toolbox so that you can have everything you need to be successful in creating your dream life, send us a DM with the word legacy let's get started.

Yeah. So what is legacy? What does that even mean?

I mean, if you put it into like Merriam-Webster definition of legacy, I'm going to Google this real quick.

Okay, here we go.

I'm going to Google what is the definition of legacy. So legacy is defined as an amount of money or property left to someone in a will.

Or the long lasting impact of particular events, actions, et cetera that took place in the past, or of a person's life. So it's either what you leave behind monetarily or it could be like the impact that you left on people and for us.

our legacy is, I think, a lot of it's within our children and wanting them to be very productive and good people, but I think where we disagree with the formal definition of legacy, we're not trying to leave them properties, we're not trying to leave them money. What are we trying to leave them?

We're trying to empower them to create their own legacy, in a way, and their own wealth. I personally I don't want to leave our kids with tons of money, because usually it's not good for the kids. It creates the lottery winners who wind up going bankrupt or in a worse spot than when they started. Our legacy is teaching our kids the things that we have learned so that they can pass that on to future generations.

That's the biggest legacy I want to leave is do right by people and do things that are going to provide you time and financial freedom so that you can chase after your passion projects. And those passion projects can be their children, it can be their church, it can be their community. You have to have that time and financial freedom to be able to pour into those things you love tinkering on cars with our older son.

He's going to love doing that with you. You can already tell he's almost three.

We changed the spark plugs in my truck a couple months ago. He climbed up on the tire and was in there with me. He was pulling spark plug wires and he was having a blast. He was loving it.

You look at the baby, who's 10 and a half months now and he loves music. You can already see it. You can speak to this more with musicians. Financially, that's not the best decision?

There are a few. Obviously, taylor Swift she's killing it. Is it the Eros tour? I don't know. She's selling out cities.

Right, but she's one in how many musicians out there, absolutely. So if we can teach them, hey, you can earn a really healthy income and lifestyle through real estate and then go pursue your passion on the side. And then it's not a job, because I know like a lot of times when you do something that you enjoy for work kind of taints it a little bit. Yeah, so it's giving them the ability to go Do their passion projects without having to take time away from their family or other things.

Yeah, so we're spending a lot of our time, a lot of our energy and probably for the next 30, 40 years, building what what we call our wealth. Mm-hmm right and building our net worth, and over that time we are going to accumulate a lot of money. Now we're not gonna just give that to our kids, right? What I do think we have the Responsibility to do, which I love the way Dave Ramsey puts you know the responsibility of managing money. You know we have to be good stewards of that right, and being a good steward of money doesn't mean giving it to someone. I do feel like we can empower our children and help them to transfer this legacy by loaning money to them. Mm-hmm, and this wealth that we're building. It is going to exchange hands and go to them, but it's going to go through a process of a loan so that they can begin buying rental properties and they can begin building their legacy. But it's going to be done so in a very structured, institutional way. Now what our listeners might be wondering like well, what are you gonna do with the interest that you gain? You know I, where is that gonna go? That's where I want to create some type of foundation or some type of you know way of giving that our kids are using this money to build their own legacy, right, and we will eventually be gone and our money will be loaned out and it will gain interest. And that interest that is gained, I feel, needs to go to the community, to the church yeah, to people in need and into programs that that are in need of stuff like that. Yeah, definitely.

Yeah, I think with legacy as a whole, like there is that financial aspect money is only a tool to get you something else. Mm-hmm, and a lot of people like the idea of time freedom, yeah, and being able to buy fun stuff, but really I think what it comes down to is the time freedom and I think if people had more time to spend with their family, their kids would grow up to be happier. Yeah, and it just it creates this culture of Joy that I don't think really exists, because you know school just started back and the posts that we see the parents are obviously they're relieved the kids are back in school. Because it's hard balancing summer With you know kids home and you're still trying to work and I know for us, like all summer We've made a point when the kids wake up from their naps around three or four, we're done working and we go swim every day pretty much. Yeah, and that is the legacy I want to leave is like the fun memories of swimming every summer.

Yeah, or I Mean we auto and I made slime one day you know, like there's these yelling, you'll even built like I don't like a Pringles, can you like made a little caterpillar and yeah, yeah, the caterpillar red, the hunger caterpillar and yeah, you fed the caterpillar all the things it was.

Yeah, so we did little fun activities and I think like summer creates a space for that, because it everything does kind of slow down a little bit, and that's the energy I want to have all year right and even if we're working on a big project or doing something else like Creating that magic of summer, yeah, throughout the year.

Yeah, so you know, giving that example of what, what is legacy, what a success look like.

And it is Flexibility yeah, we're in a weird spot with young, young kids because most of our friends that are financially free and not working a 40-hour job, or their kids are older.

So in some ways, the exception of Dan.

He's not the only one. No, he's not the only one, but it's this one you know, it creates this opportunity To really be present with our kids when they're little. Yeah, in a way that a lot of our friends, they were in the hustle and grind when their kids were babies and we talked to a good friends of ours and he talks about how he would work all day and then come home and, like, fall asleep in the glider with the baby Because, yeah, his wife needed a break and, yeah, just the hustle and grind. And there's absolutely nothing wrong with the hustle and grind, especially when your kids are young, because they're not gonna notice. But, right, no matter what stage you're at, it's taking the time to build the legacy so that your kids Can have more time with you. Yeah, and we've got other friends that their kids are going off to college soon, mm-hmm, and they're enjoying the time that they have now, but they also are, you know, they want to be able to go visit their dorm room and help clean up some and take care of the kids.

Yeah, and serve their, their children, while their children are on the building blocks of who they will be come.

Yeah, and I mean, even if your, your kids are grown and you got grandkids on the way, like being able to show up and be present with your Grandkids, like there's, there's so much opportunity in being with your family, mm-hmm, and not just that. I mean we have friends who are retired, who just got back from a cruise and had a great time. Yeah, using real estate to create your dream life Provides value now, today, but it also provides value for future generations. Yeah, I feel like real estate's just this tool that gets overlooked sometimes. Yeah, because it seems so hard to save up 20% down and all these different things you have to do, but the reality is you don't have to have 20% down. We started with no money. We borrowed from our 401ks and paid it back over time. Yeah, but we took grit and hard work and have created this beautiful legacy. And it might seem unattainable to build a rental portfolio, but there are ways to do it.

Yeah, one of the best books I could recommend anyone is John Chubbs building wealth one house at a time. Yeah, and that book is just, it's for the everyday American, yeah, to get into rental property, investing Right. And you, just, you know, one house a year one house a year for ten years and at the end of ten years, you were not in the same place you are today right, absolutely.

Buying one house a year for ten years will most likely Help someone retire. Yeah, absolutely. And I mean there's so many ways you can structure the debt. One idea that I think it was from Brandon Turner is To buy 15 homes all on 15 year mortgages, and if you did that for 15 years, then when you hit year 15, that first house is paid off and then you can do a refinance and another 15 year no and pull out 200, 300 grand, whatever and then at year 15 well, you're 16, really let me, let me keep going on this. Yeah, so you pull out $200,000. That's tax-free and you could live off of that right. So even if they break even, they don't. Those 15 houses don't cash flow for 15 years. It doesn't matter because that year 15, you're able to pull out all the equity huge chunk of money. I think most of us could live on 200 grand tax-free, oh my gosh. Or 100 grand, whatever you know, whatever the value of the house is, but you would, you pull that equity out and then the next year you refinance house number two and live off of that money.

And you just keep rolling it, and what you're not even capturing is Is that over those 15 years those houses rents are going to increase, right, so they?

will, they'll go, they'll go up and down, so they'll.

They'll begin cash flowing right and when you go to refinance that, the house is probably going to be worth a lot more than what you bought it for. And so only take out what you need yeah, for the year, and you'll still have cash flow right. I I think that is like one strategy that they like their job right, they like what they're doing, they don't really want to leave it, but they also want to guarantee some type of relief down the road.

That yeah, is the strategy. You can put it on a 30-year loan, mm-hmm. And structure it to say pay off in 10 years, so you just make extra payments. Yeah, so you could have 10 houses and do the same strategy. Yeah, and just do a month in your loans.

Yeah well, on a 30-year note, but pay off in 10. Yeah, you just got to calculate that for yourself. Yeah, definitely, and if that's something you want help with you can definitely DMS.

It's such a unique approach that you don't have to find home run deals, no, you just have to find something that breaks even at least yeah and then you get the tax benefits and there's there's so many layers to it, yeah, and let it just be a slow burn, right, it doesn't have. You don't have to do it, ham, like Eric and I did. And I am like crazy.

We were on that glide path of this has to happen quickly.

That was our goal.

That was our dream life.

Yeah, but it doesn't have to be that. It can be just Slow and methodical, and one at a time, and you can live in the house and move. There's so many ways you can do it.

You know, a good exercise that that we did early on To kind of gain some understanding of the gap in the game. You know, where have we come from? Where are we going? Was picturing. Where were we 10 years ago? Yeah, right now I'm 33 and and 10 years ago I was 23. I was beginning my career right as a teacher, and when I am today, versus where I was 10 years ago, so much has happened. And what if I bought a house every year 10 years ago? Yeah, where would I be today, right now. And when you think back 10 years ago, you know, the older you are 10 years ago seems even less far away, and the younger you are 10 years ago seems a lot further away. You know, it's just a you know it's the proportion of your life, right, but but 10 years ago is usually you can really think back and be like, oh yeah, I know what I was doing, I, I know what was happening. And yeah, the time between 10 years ago and today, while that a lot happened, it seems like it went by pretty quick, right, and it will right.

But then you take that same frame of mind and say, okay, 10 years from now, when you're 43, what do you want life to look like? Yeah, and that's been a conversation We've had a lot lately of what do we want to be doing in 10 years? Right, and that led to a decision to sell a couple of our properties because we don't want to own those in 10 years.

So we're making some strategic chess moves over here, trying to set ourselves up so that 10 years from now we have our dream portfolio and we don't have to worry about management and all the tenant issues and stuff like that and you know these shifts that we're doing and I'm really looking forward to bringing y'all some podcast episodes on these projects that we're doing taking on a pretty big deal in North Georgia and Selling a couple properties here in Middle Georgia. I think the news still says we're North Georgia but we're not really North North Right.

I don't know, that's odd.

Yeah, who says we're North Georgia?

I think it's because we're in the Atlanta National anyways, anyways.

So how can you ensure the pathway of building a legacy? Yeah, we hear so many times that you know generations. The first generation Builds it, builds it, the second generation spends it and the third generation is left with nothing. Yeah, and the third generation has to start back over, right? How can you ensure that that legacy Doesn't disappear when it goes to your children?

something we've thought a lot about. And it's hard because the life our kids are growing up in is not like their peers know. And as we Continue to grow and the kids get older like we're gonna be doing a lot of really cool vacations and we've got friends there their daughter makes more in cash flow offer her few houses than they made in their first jobs. Yeah, so she's working at Disney, living the time of her life, and it's because her parents they're the ones who he would work all day and come home and fall asleep in the glider with her. It's because he made these sacrifices when they were young.

And he didn't just give them money, right? No, they did all the work. They did all the work Now. He did use his expertise to help find the problem network and his network, but also made sure that his children were a part of every single move he made right, they?

they saw it happening and when they became interested he helped them. But it was, you know, called this person and they had to make the phone call. He did not make that phone call for them, right?

I think the oldest was still a teenager when she got started on her first one.

They had to buy it in a trust because she wasn't 18.

Yes, she was 16 and he made her go over there and demo the whole house. He's like I'll sit there and watch you do it and make sure you don't tear out the wrong things, but you're demoing this house, young lady. Yeah, you know, if you want the fruit of this seed, you have to put in the time.

Yeah, I mean as our kids get older. I mean the youngest is like two and a half, almost three. He obviously can't do a whole lot yet, but we're gonna find their interests and have them work in the properties.

I know. The other day I took him to a rental property and made him pick up little pieces of trash and put them in a trash bag. So, we begin.

Oh, we should start a Roth IRA and start paying him. I know, growing up, manual labor was like the bane of my existence. I hated cutting the grass or doing any of that, but I loved the finance side. So if one of our kids shows interest in that, they're gonna become our bookkeeper, oh right, and they're gonna learn the ins and outs and we'll put them in areas that they're interested in. But part of their Responsibility of being part of this family is gonna be helping in the business. Yeah, and it might be our 12 year olds calling contractors, that's right.

Our kids are not going to be those kids you see on YouTube and TikTok of oh look at my awesome house, look at my awesome car. My mommy and daddy gave me this. Yeah, no, they're going to, god willing that it all works out, but they're going to Be in a situation where they're like, no, like, yes, I do have a nice vehicle, but I worked for it, right and that's how you and I both were right.

Well, maybe not nice vehicles, but we worked for the vehicles we had. That's right. Neither of us had a car given to us as kids like we worked for it and paid the insurance and the gas and all the my first car I had to rebuild the engine.

My daddy threw a Haynes manual at me and said figure it out, yeah. And I rode my bicycle down to the junkyard to get parts for it. I don't know that we're gonna be making them ride their bikes, but no, it's a little dangerous out there, yeah. But so you know, making sure that legacy continues, you have to make sure your kids are involved in the process so they understand the work that goes into it. Jump them back to that first thing. Don't give them a handout, don't give them the money. Make them work for it. Right, you know, make sure that they understand that they have to borrow money if they don't have it well and how to use that Responsively.

The cash flow game is a really good way to teach and there's one for kids. Absolutely, we will get eventually. We don't have it yet because we're not anywhere close to our kids will just eat it, it's very bad? Yeah, but it's also Just in life. Letting your kid experience some hardship. Yeah, you know, with our kids they're very little, but, like every time they get in a situation where they need help, we make them ask for help.

We don't rescue them right.

We provide Assistance so they can assist them right and if it's a safety thing, obviously we step in. Oh yeah, but like our two-year-old, if he's, you know, struggling with something, we don't just do it. We say, hey, do you want some help? And then if he asks for help we'll take over, but otherwise he's gonna sit there and figure it out. Yeah, and sometimes we just let him struggle for a while before we offer help.

So I love hearing him try to figure things out. Yeah you know He'll. He'll just be grunting, trying to get you know something in something or something out of something, and it just be grunting and trying to figure it out, and then he'll run in and say help please, pretty please, yeah well, it's either that, or he gets mad and throws whatever he's working on.

So we try to catch it before he throws it. But he has a little rage.

I wonder where he gets that. Hey, hey, now don't knock on the ginger age.

He's too. He can't help it. That's true. I just think when we talk to people and we say that we're rental property investors, so many of them like there's like a look of like oh, you must be really wealthy and we have Established a lot of wealth. But we didn't start out that way. No, we just took a lot of time and education and hard work and Some loans from our retirement accounts, like we did not have tons of cash to throw at this. No and even if we lost everything and had to start over, we would master, lease or wholesale or do something that would generate money so that we could eventually Save up for the down payments that we need we would utilize the creative deal structuring strategies we've learned through bill cook and you know, find ways to structure options, right?

If you don't know who bill cook is, you should go online and look them up. Bill and Kim cook comm and they they teach wonderful seminars on how to invest in real estate creatively yeah, where you don't have to use tons of cash, right.

I think it seems so daunting, because buying a house right now for an individual in a family is a challenge, mm-hmm. But what people don't realize is the requirements to buy an investment property is very different than buying a house yeah, for yourself. So Robert Kiyosaki talks about assets and liabilities Mm-hmm, and an asset is something that puts money in your pocket. A liability is something that takes money out of your pocket. So if you have the education and you're buying a rental property, it's an asset. If you're buying a house to live in, it's a liability, because it's an expense. So getting a loan for a liability is a lot more difficult than getting a loan for an asset that's going to produce income. I mean, even us now. We struggled getting our loan situated on this house that we're in, but we're buying a rental property. That's even more expensive and we had no problem getting the financing lined up. It's making sure that you have the education and that you're buying something the right way that will cash flow or, like we said, at least break even and doing that 15-year rolling plan. It's having a strategy and going after it. But it might seem like a huge struggle to get a rental property, but it's not. It's not easy, but it's not complicated.

What is that phrase?

It's simple, but it's not easy. Yeah, that's right.

It's simple, but it's not easy.

You learn the formula and you go after it. That's right, and we have friends who have asked us how did you do it? How do we get started? And it just feels like this huge mountain that they can't overcome. But almost half of the rental units in the US are owned by mom and pop landlords. It's not all these crazy wealthy people. A lot of people own just a few and you don't have to be able to retire today off of your rentals like we did. You could just add a couple one every year or two.

That's kind of the path that I have coached my father on.

We have coached my father on.

He has picked up three rental properties over the past four years and he sees them as his exit of his job. Now he works a really labor intensive job. He's a diesel mechanic and knows that his hands are going to stop working and that his body is wearing down from climbing on tractors and his wrists from turning wrenches and knows that these properties are his exit strategy. He doesn't need a $10,000 a month. He doesn't need that.

He's close to Social Security age, so he knows that's coming up and he knows how much that's going to pay out. He just needs a buffer.

And his buffer is probably like $25, $3500 a month which he can get on five properties.

Absolutely, especially as mortgages are locked in at a certain rate and the rents will go up. I mean, his payment will go up a little bit because of taxes and insurance going up, but for the most part, it's inflation protected income. That's right, and I feel like I'm getting on my soapbox. All right, I'm going to sit back and watch it. I wish people would find a way to invest in real estate because it gives you so much freedom and flexibility in your life, and we're still figuring things out on what our ideal life looks like, but I feel like we're getting very close to being where we want to be, and yesterday we were hanging out in the pool with the kids listening to some music and it just life felt light and money was not an issue, and it was four o'clock and we're hanging out in the pool. You can create a beautiful life with just a handful of rental properties, and you don't have to amass a rental property a month or a year or it's just figure out what you want and go after it.

That roadmap of where you want to be, because if you do go down this path, you're going to achieve some sense of freedom. And when you get there, if you don't know what you want to be doing, you are going to be lost in the sauce. And you're going to not feel fulfilled.

Well, and even as intentional as we were with it. We have changed direction many times on where we're going and what we want. And moving into this new house opened up a lot of things for us and realizing we don't necessarily want to be a stay at home parents with little little kids. So it's an iterative process. We try things and I was talking to one of our friends yesterday and it's like I still don't know what I want to do when I grow up, basically. But I said, everything that I try is a step in the right direction, because it either tells me, yes, this is what I want to do or no, that's not what I want to do. And all of this is to create a beautiful life for our family. What is our goal is creating a life that gives our kids unique opportunities.

And sets them up for monumental success.

Right, and whatever they wanna do, it's not so. They can make boo-coos of money, and that's not the point.

If our kids wanna go be teachers or policemen or firemen. Which auto might wanna?

be a fireman.

If they wanna do those things, they can do that and build wealth on the sidelines.

Right and not feel that financial strain.

That so many teachers and firefighters, and yeah, and the book we wrote, pathfinder's Journey. We talk about how Liza was a school teacher and Charlie was a firefighter, and on the sideline they built their rental portfolio and they found financial freedom by doing it. And in the book we really let it happen pretty quickly, but it doesn't have to happen that quickly. You can go teach for 10, 15, 20 years if you want to, and do the one house a year, one house every other year or one house every 18 months, and spend your time and your passion doing what you wanna do and then being able to walk away and say you know what? I have fulfilled that challenge that was instilled within me. I have given, I have provided and now I get to do the things I wouldn't do otherwise.

Right, absolutely. There's so many strategies in real estate. It might seem so daunting and you think you have to have 20% down for my rental, but that's not the case. You could live in a house and if you stay there for two years, you can sell it tax-free and take the gain from that and then use that for your 20% down.

Tax-free up to 250K for a person and 500K for a couple.

Yeah, I mean most people aren't gonna get that much. I mean, if you're in California maybe, but you never know.

Markets explode and it's fair, you know for no good reason sometimes.

For the most part it's tax-free though. So you can generate so much income using rental properties or just housing in general, but it takes education and time and all of that leads to an awesome life and legacy to leave behind.

Hopefully you've gained some tips and tricks on creating a lasting legacy that you can pass down to your future generations. If you have any questions on how to get started building that legacy, send us a DM the word legacy and we will do everything we can to help you get started and move it in the right direction. You know, here at the On Purpose Investor, we are on a big mission to help instill hyperintentionality in everything you do. Don't wake up in 10 years. No, do wake up in 10 years.

I want you to wake up.

But don't be in a position where, when you wake up in 10 years, that you're in the exact same position in life that you are right now, because you have the ability to shift. You know. Just briefly, think about where was I 10 years ago? Now, if you were 18 years old, listen to this podcast. 10 years ago you were still living at home eating, you know, captain Crunch for breakfast. But if you're 25, 35, 45, 10 years ago doesn't seem that long ago. You can shift where you're headed.

You could change your entire trajectory in 10 years.

So join us on this hyperintentional movement and send us a word legacy and we'll help you get started today. Otherwise, we look forward to having you back next week here at the On Purpose Investor podcast. We are immensely grateful for you joining us today. If you haven't already done so, we invite you to subscribe to our show. We understand that many of you tune in regularly, but perhaps haven't had the chance to hit that subscribe button yet. Don't worry, it's effortless Takes about three seconds to follow or subscribe on your platforms like Spotify, apple Podcast or wherever you're enjoying the show. Your support is invaluable to us and has played a crucial role in the tremendous growth of our company. We sincerely appreciate your assistance in any way, shape or form. Together, we can launch this podcast to even greater heights.