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My grandfather bought a house for $25,000 in the 1950s
It’s now worth $2.6M. Yes $2,600,000.
In addition, it brings in $5,200 a month in rent.
I’m calling this the GENERATIONAL WEALTH case study.
Welcome to #TheWeekendJump
A THREAD
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It’s now worth $2.6M. Yes $2,600,000.
In addition, it brings in $5,200 a month in rent.
I’m calling this the GENERATIONAL WEALTH case study.
Welcome to #TheWeekendJump
A THREAD
Here’s the back story:
My grandparents are Japanese. Moved to America without speaking English. Learned it on their own.
It wasn’t easy for them in America…they felt the effects of racism…they struggled a lot…felt isolated…but they saw opportunity in this foreign land.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Down pointing backhand index" aria-label="Emoji: Down pointing backhand index">
My grandparents are Japanese. Moved to America without speaking English. Learned it on their own.
It wasn’t easy for them in America…they felt the effects of racism…they struggled a lot…felt isolated…but they saw opportunity in this foreign land.
They had the vision and understanding that THEIR sacrifices would pay off for their daughter, their daughter’s children, and for generations to come.
My grandfather& #39;s big goal: BUY A HOUSE
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My grandfather& #39;s big goal: BUY A HOUSE
After moving to the US, working hard, getting a US government job (which was not easy for a Japanese immigrant), and saving diligently, he finally achieved his GOAL.
He bought a 3 bed/2bath single family home in Palo Alto, CA in the 1950s for $25,000.
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He bought a 3 bed/2bath single family home in Palo Alto, CA in the 1950s for $25,000.
His criteria: buy in the best neighborhood possible for his family:
-low crime
-great education
-local amenities
-a place he could be proud of in a neighborhood that he’d be proud of to call home
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-low crime
-great education
-local amenities
-a place he could be proud of in a neighborhood that he’d be proud of to call home
He was providing for his immediate family.
But, my mother talks about how he believed IT WAS MUCH MORE THAN JUST THAT.
This purchase, this property, would provide for generations to come.
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But, my mother talks about how he believed IT WAS MUCH MORE THAN JUST THAT.
This purchase, this property, would provide for generations to come.
My mother grew up in it.
Learned English on her own.
Got herself to UC Berkeley.
Moved out after high school.
Got a Masters.
60 years go by.
And my mother inherits it when her parents pass.
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Learned English on her own.
Got herself to UC Berkeley.
Moved out after high school.
Got a Masters.
60 years go by.
And my mother inherits it when her parents pass.
So now my mother, father, and I have options:
A. sell as is - the easy way out. Quick cash
B. Fix it up and sell it - a little work to maximize quick cash
C. Fix it up and rent it out - Consistent cash flow + generational wealth
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A. sell as is - the easy way out. Quick cash
B. Fix it up and sell it - a little work to maximize quick cash
C. Fix it up and rent it out - Consistent cash flow + generational wealth
These were all GREAT options to have.
VERY fortunate to even be in this position thanks to gramps.
Also, this is Palo Alto folks. This is the city where Zuckerberg and a lot of tech moguls live.
This is the home of Stanford University. This is the heart of Silicon Valley.
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VERY fortunate to even be in this position thanks to gramps.
Also, this is Palo Alto folks. This is the city where Zuckerberg and a lot of tech moguls live.
This is the home of Stanford University. This is the heart of Silicon Valley.
We went with Option C.
But it needed $150k to renovate and get rent ready.
That’s not a small sum to just pull out of your pocket.
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But it needed $150k to renovate and get rent ready.
That’s not a small sum to just pull out of your pocket.
Thinking through our options, my parents pulled out a HELOC to pay for renovations.
It now rents for $5,200 a month.
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It now rents for $5,200 a month.
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The numbers on that $150k investment are insane. Plus it increased the value of the property to $2.6M.
THAT’S VALUE ADD.
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THAT’S VALUE ADD.
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Now, I know some of you are going to say:
“Ya’ll go lucky!”
“That’s all Bay Area appreciation.”
“I could have done the same thing if I bought in 1950.”
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“Ya’ll go lucky!”
“That’s all Bay Area appreciation.”
“I could have done the same thing if I bought in 1950.”
Even if my grandparents were “lucky”
They put our family in position to have a chance at “luck”
You CANNOT deny the hard work, sacrifice, the VISION, and the risks my grandparents took back then.
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They put our family in position to have a chance at “luck”
You CANNOT deny the hard work, sacrifice, the VISION, and the risks my grandparents took back then.
Lessons here:
-Work hard
-Save money
-Have a VISION
-Buy assets
-Buy in great neighborhoods
-Live within or under your means
-Think LONG TERM
-BELIEVE even when things are tough
-Take control of the life that you want to live
-Take risks
-Be smart
-Take action
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-Work hard
-Save money
-Have a VISION
-Buy assets
-Buy in great neighborhoods
-Live within or under your means
-Think LONG TERM
-BELIEVE even when things are tough
-Take control of the life that you want to live
-Take risks
-Be smart
-Take action
FINAL THOUGHTS:
The decisions you make NOW, will impact you and your family in the future. For better or for worse.
This is an example of how you create GENERATIONAL WEALTH
#TheWeekendJump #JumpIn
The decisions you make NOW, will impact you and your family in the future. For better or for worse.
This is an example of how you create GENERATIONAL WEALTH
#TheWeekendJump #JumpIn
