3 Reasons Why You Should Aim for Generational Wealth, Especially Now

Updated: Mar 28, 2021

Some people might assume that investments are just about an obsession of being “rich” and living a comfortable life of leisure and luxury. However, for the vast majority of serious investors, this could not be further from the truth. Particularly in real estate investing, the majority of investors are involved for a handful of reasons that most regularly leads back to a common long-term goal: creating generational wealth.

Just being “rich” is not enough. It does not ensure happiness, a meaningful life, or an easy one. Money, in and of itself, is not enough to live for or make a goal. As an investor myself, this has never been my focus. What has and why? It’s building generational wealth, and that is an entirely different thing. Here’s why:

Generational Wealth Rationale #1: It’s About More Than Just You.

Generational wealth is a goal that far exceeds the “me, myself, and I”. Many of my investors, especially family offices, that partner with me on my deals through my company Blue Lake Capital, are doing so because they have a deep and passionate commitment to take care of their families to the best of their abilities.

One of the advantages of real estate investing is that it produces not only passive income on a periodic basis (monthly, quarterly, etc), but also generally provides a significant return when the property is sold at the completion of the business plan. This means that when a parent or grandparent is investing, they are able to take the periodic cash flow profits, as well as the larger end-of-term payout from the sell, and continue to re-invest those funds again and again to create long-term wealth. You can see that this mindset is quite the opposite of being “rich” and spending all these profits on extreme luxuries.