Harvard Education- 8-10 flips

One of the things we try to do here at Part-Time REI is to help potential house flippers understand the benefits of  flipping houses part-time.  One of the best reasons to start investing in real estate is the extra cash. Not only to do the things you love like travel, or save for your retirement, but also to help the future of your children or grandchildren.

If you ask an investor to think of college savings, they automatically think of a 529 plan. While a 529 does have its pros: Such tax-advantaged plans now house $168.5 billion of our hard-won savings, as of the end of 2012. According to Boston-based research firm FRC, that ‘s up almost 17 percent in just one year, securing the 529’s status as one of the top college savings vehicle in the nation. Also there is high appeal due to state tax breaks on those funds. They subsequently grow tax-free. These accounts also have a smaller impact on a college’s financial aid formula than other kinds of investments.

But not everyone is sold on the idea that 529s are the only way to go.  We don’t want you to have to sacrifice your retirement savings in order for your children to get a good college education. Saving for your own retirement is more important than saving for college. Your children will have more sources of money for college than you will have for your golden years but why not give them a little head start?

The sooner you start saving, the better.

So the sooner you start investing in real estate the sooner you can start putting that extra income towards a college fund. Even modest savings can pack a punch if you give them enough time to grow. Investing just $100 a month for 18 years will yield $48,000, assuming an 8% average annual return. Think about the average flip can be anywhere from 5-15K and you are well on your way. Keep in mind thought that college money today will be much cheaper than money for college in a few years.

Take a look at the chart below showing an increase of tuition just 5% each year.

(Based on average tuition and fees for 2013-2014 as reported by The College Board® and assumed to increase 5% annually.)

Makes you want to start flipping houses today doesn’t it? If you are looking to get started or are a seasoned pro looking for tips on flips, check out our Flipping Houses University. Please contact us if you have any questions or comments!

For more info on college cost visit:  http://www.savingforcollege.com/tutorial101/the_real_cost_of_higher_education.php

To learn more about Part-Time REI visit us at http://part-timerei.com/

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