Real Estate as a Tool to Finance College

The Charfen Institute just came out with an article in their CIAS newsletter titled: “More Parents Using Real Estate to Finance Kids’ College.

The article discusses the strategy of purchasing a cash flow property with a 15 year mortgage and selling the home by the time your child reaches college.

A poll conducted by the College Savings Foundation revealed the following key stats:

  • 40 percent of parents are not very confident that they can reach their college savings goals
  • 34 percent of parents say they know how much they need to save to fund their child’s college education, up from 27 percent last year
  • 48 percent of parents are looking to education loans to pay for college, most of which will be signed over to their children
  • 29 percent of parents expect financial aid to cover up to a third of college costs, down from 35 percent last year
  • 38 percent of parents expect no financial aid at all, up from 28 percent last year
If you are a real estate professional it is time to discuss this strategy with parents who have children who are 3 years or younger (there are many lead generation tools out there that can help you find this demographic). If you are a parent with kids that are¬†toddlers it is time to find a property¬†to invest in for your children’s education and future. Failing to plan is planning to fail.