How to Save For College | Triad Living

​An Alternative to 529 Plans: Investing in Rental Property for College and Beyond​

This video, titled "How to Save For College | Triad Living," presents a compelling alternative to the traditional 529 plan for funding children's college education, especially relevant for those looking for more flexibility.

The Challenge with Traditional College Savings The video begins by highlighting a common concern for parents: how to effectively save for their children's college education [00:00]. Joel Sandman, a realtor with Berkshire Hathaway and host of "Driving Triad," points out a significant drawback of the popular 529 plan: if children ultimately decide not to attend college, accessing those funds can incur substantial tax penalties [00:25]. This lack of flexibility can be a major concern for families.

A Smarter Strategy: Rental Property Investment Joel proposes an innovative alternative: purchasing a rental property as an investment [00:40].

The Investment: He suggests acquiring a rental property for $150,000 to $200,000 in the current market and securing a 15-year mortgage [00:47].

Long-Term Growth: The beauty of this strategy lies in its long-term potential. By the time children are ready for college (in about 15 years), the property, with typical appreciation, could be worth $250,000 to $300,000 and, crucially, completely paid off [00:57].

Unlocking the Property's Value: Flexible Options Once the mortgage is paid off, the property offers incredible flexibility:

Option 1: Generate Passive Income: You can choose to hold onto the property and continue to generate cash flow from rent. Without a mortgage payment, this leads to significantly higher monthly income [01:10]. This increased cash flow can then be used to fund various aspects of daily life, offering financial freedom.

Option 2: Liquidate and Utilize: Alternatively, you can sell the property. Even after accounting for capital gains taxes, a substantial amount of money would remain [01:21].

Beyond College: Funds for Life's Big Moments The most appealing aspect of this strategy is the flexibility of the funds generated [01:30]. Unlike the restrictive nature of a 529 plan, the money from a rental property investment isn't solely tied to education. It can be used for:

Funding children's college expenses.

Achieving early retirement.

Taking those dream trips you've always wanted.

Making significant home improvements. This adaptability ensures the funds can cater to a wider range of future needs and aspirations [01:38].

Ready to Invest? Joel concludes by inviting viewers to contact him if they are interested in purchasing a rental portfolio, buying their first home, or selling a home in the Triad area [01:51]. His contact information (phone number: 336-582-9210, email: Joel@SandmanRealtyNC.com) is provided at the end of the video [02:00]. This approach offers a powerful way to build wealth and secure your family's financial future with greater control and versatility.