The Millennial Millionaire's REIT Portfolio by Brad Thomas

Summary

  • The number of millennials all depends on how you define the cut-off ages involved.
  • "Meet the average American millennial, who has an $8,000 net worth, is delaying life milestones because of student loan debt, and still relies on their parents for money" - Business Insider.
  • The average millennial millionaire is married, lives in California, and is on the hunt for real estate that's affordable and within walking distance to the center of action.
  • Looking for a portfolio of ideas like this one? Members of iREIT on Alpha get exclusive access to our model portfolio. Get started today »

Let's talk about millennials. And let's hold off on any instant opinions you might have on the subject for these first few paragraphs.

We want to start off with facts first, not feelings. Or at least as close to the facts as we can possibly get. Admittedly, finding out certain figures isn't always easy.

For example, when you search for "how many millennials are there in the U.S.," don't expect a universal answer.

The first hit, at least on Google, is from Wikipedia. Of course.

You don't even have to click on the link to see that (allegedly):

"In a 2012 Time magazine article, it was estimated that there were approximately 80 million U.S. millennials. The United States Census Bureau, using birth dates ranging from 1982 to 2000, stated the estimated number of U.S. millennials in 2015 was 83.1 million people."

Scroll down past that, and you'll find a second result, this one from the much more reliable Pew Research. Last year, it said that, "Millennials, whom we define as ages 20 to 35 in 2016, numbered 71 million…"

And just two months ago, CNN wrote that this particular generation was born between 1981 and 1996 - though it's "sometimes listed as 1980-2000."

Clearly then, the number of millennials all depends on how you define the cut-off ages involved. For better or for worse.

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Breaking Bad Stereotypes

No doubt on the "worse" side of what it's like to be a millennial is plentiful - and not at all flattering - stereotypes older generations (and even some Gen Zers) want to label them with.

For instance, millennials are called "snowflakes" who can't handle reality. And "everyone" knows they all live in their parents' basements and spend their days online, trolling people on Twitter.

Unfortunately, there does seem to be at least a little something to that unflattering depiction. For the record, don't blame me for saying that. My millennial editor is the one who provided me with the following Business Insider headline from July 2019:

"Meet the average American millennial, who has an $8,000 net worth, is delaying life milestones because of student loan debt, and still relies on their parents for money."

Ouch!

The article does go on to declare that most millennials are "actually financially savvy." But it also actively admits that:

"There's no way around it: The average American millennial is financially behind.

Faced with a high cost of living, staggering student loan debt, and the fallout of the Great Recession, American millennials are trying to make ends meet in the midst of The Great American Affordability Crisis."

Apparently, "the generation overall is plagued by financial problems that baby boomers didn't have to face at their age." It's hardly the most pleasant picture of 71-83 million people. But I guess that's just how the cookie crumbles.

Sometimes…

Then again, sometimes it doesn't crumble that way. Sometimes it doesn't crumble at all. That's why I'm going to draw your attention to a key adjective in that Business Insider headline: Average.

Because there are definite exceptions to that rule. And they're more than worth noting.

Millennials Who Are More Than Making It

Actively fighting the stereotype described above are the 619,000 American millionaires who are apparently out there. That figure comes courtesy of yet another Business Insider article, this one published this month.

Here's how the article begins:

"There are 618,000 millennial millionaires in America, and they're sitting on a nice pile of assets. Think a net worth ranging from $1 to $2.49 million, three properties, and a BMW. That's according to a new report by Coldwell Banker.

"The Coldwell Banker Global Luxury program worked with wealth intelligence data and research firm WealthEngine to analyze the lifestyles of millennial millionaires, from wealth creation and property investments to spending trends. It defined millennial millionaires as those ages 23 to 37 with a net worth of more than $1 million.

"The report found that the average millennial millionaire is married, lives in California, and is on the hunt for real estate that is affordable and within walking distance of the center of action."

In which case, I like how these young-ish 40 millionaires think. Though, based on the description above - and throughout the rest of the article - I think they can do better with what they've got.

I'm more than happy to point out how.

Now, naturally, as pointed out in the last article segment, this generational subcategory largely owns their own homes. As well they should.

That's a very important investment to make, to be sure. Moreover, many of them own more than one. And those might be great investments as well.

But personally owning physical property should be the mere start of a beautiful, lasting, productive love affair with real estate.

There's so much more to go from there - particularly through a portfolio bolstered by real estate investment trusts, or REITs.

...Originally Posted On Seeking Alpha

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