Every real estate investor dreams of building his/her portfolio, increasing the CAP rate, and exiting from some investments. However, little thought is given to passing on your wealth to the next generation.
I started thinking about this after a recent discussion with one of our customers. I was pitching Tenantcube and how it could help him digitalize the entire renting process. He kept pointing to small sticky notes on his desk and kept referring to how smart he is in screening tenants and how he has done this for 30 years and does not need any technology to do it.
While I was impressed with his hustle and knowledge, I knew he needed the technology. The tenant demographic is evolving, and their expectations are changing. However, with all my years of experience, I am used to consultative selling and letting people understand the need for the solution.
So, I quickly pivoted my pitch and started asking questions to dig deeper. Do you plan to retire? His answer was, of course, I am 65 years old. I have a condo in Florida, where I plan to retire.
More questions, who is going to manage your property when you retire? My kids will take over and manage my properties.
Damn, maybe I should be talking to his kids :)
However, one thing I have learnt in sales is to ask questions and listen more. So here I go.
Well, that is great that you have your kids who want to take over the business. Do they work with you now? His answer was they live in Toronto and Vancouver. They will take over when I retire. Ha ha, I got him.
How do you plan to teach your kids how to screen tenants or manage work orders using these sticky notes? Are they going to sit in this dingy office and collect rent? A long silence ………………….
You know what? I should implement some technology. I want to move my processes online. So I can let them shadow me while I am doing things. Even when I am retired and in Florida, my kids can always get help.
SOLD!!! A few months later, he is a happy tenantcube user; his daughter loves the digital onboarding and collecting rent online while he is practising as a doctor.
Well, our friend convinced his daughter to take over the business. He will retire soon. Wealth stays within the family. Good thing he is not selling in today’s market.
Are you thinking about building wealth and passing it on to your kids? Get started today!