Epic Real Estate Investing - The Biggest WEALTH TRANSFER In US History Is Happening RIGHT NOW | 1374

Episode Date: October 28, 2024

In this compelling episode, we dive deep into a significant, yet often overlooked, wealth transfer occurring right now in America. With an astonishing $24 trillion in farming assets poised to change hands over the next two decades, the implications are vast and far-reaching. We’ll explore the aging demographic of farmers who are nearing retirement, their reluctance to pass on the reins, and the growing presence of corporations and foreign investors eager to seize these assets. But this transfer is not just about land; it reflects broader economic trends that shape our financial landscape. We’ll discuss the rise of biotech billionaires and how innovations in technology are influencing investment strategies, alongside the evolving real estate markets that offer both challenges and opportunities. Viewers will walk away with actionable insights on how to build and secure wealth in this shifting environment. Discover practical advice on cultivating side hustles, embracing freelancing, and making savvy real estate investments. We’ll introduce concepts like 'house hacking' and the strategic use of FHA loans, equipping you with the tools to navigate these changes effectively. Join us as we empower you to take control of your financial future amid this monumental wealth transfer, ensuring you’re not just a bystander but an active participant in the unfolding economic landscape. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. One of the biggest wealth transfers in American history has begun, and hardly anyone is talking about it, or even knows it's happening. I wouldn't even know it's happening if I didn't read it in the Farmer's Almanac the other day. Amazing book. I was on page two, and they started talking about how $24 trillion in farming assets, farmland, barns, equipment, is going to transfer hands over the next 20 years. This short video by Alexandra Fasolo, it sent me down a rabbit hole, and it turns out she's only scratching the surface about this huge wealth transfer. I mean, this will shock you. First thing, the average American farmer is pushing 60 years old. These hardworking people, they're exhausted,

and many can't keep up with the physical demands of running a farm anymore. Simply, they're ready to retire. Now, you might think, well, hey, they'll just pass it on to their kids, right? Well, turns out that most of their kids don't want the farms. So all this farmland is about to hit the market. And here's where it gets scary. It would be far better for regular people like you, Alexandra, and me to buy this land. But that's not what's happening. I've talked to some of the farmers in this area. They have told me some disconcerting information that some firms, some investment conglomerates are kind of quietly approaching these farmers. They show up with a check. And it's not that these small farmers want to sell out to corporations. You know, that doesn't sound great to them either. It's just that at the end of their farming careers, they're exhausted, some of them of debt.

They're just trying to figure out a way to ride out the rest of their exhausted lives, basically. And these firms are snatching up American farmland right underneath our noses. These small farmers, they don't want to sell to corporations. I mean, it goes against everything that they believe in. But here's where it gets really interesting. As I dug deeper into this wealth transfer, I uncover. something that's going to blow your mind. It's not just corporations that we have to worry about. There are individuals and foreign countries making even more aggressive moves. And although Bill Gates

and China, they steal the headlines these days when it comes to the great land grab, they are not the ones you should be concerned about. For example, Bill Gates has acquired in recent years 269,000 acres of farmland across 18 states. That's larger than New York City. But it's small potato is when you consider Ted Turner, the founder of CNN. He owns 2 million acres. That's more than the entire state of Delaware. He's got massive ranches spread across seven states. And then there's John Malone, the cable TV mogul. He owns even more than Turner, 2.2 million acres. His empire, it stretches from Maine all the way to New Mexico, making him the largest private landowner in the U.S. And then there's the Emerson family, the owners of Sierra Pacific Industries.

In 2021, they became the owners of more private land than any other family in America with 2.4 million acres across California and Washington. Three names, most people, have never heard of, dwarf the holdings of gates. But who owns the rest? Well, it's not China. Surprisingly, Chinese investors own less than 1% of all foreign-held U.S. aggregates. agricultural land. In fact, China ranks 18th among foreign owners of U.S. farmland. 18th. I mean, not even close to what we've been led to believe. I mean, so much so that it makes you wonder why, doesn't it? So who's really buying up America's heartland? Well, you'll be

surprised to learn that it's our friendly neighbor to the north. Canada. They topped the list, followed by the Netherlands, and then Italy, and then the United Kingdom. I mean, who knew? China really isn't even in the game. But hold on, because this is only the beginning of this massive wealth transfer. Because here are five more emerging trends that will make you question everything you thought you knew about how money is moving in society. The first one, the great generational handover. I mean, imagine $68 trillion. That's more than three times the entire U.S. federal budget, changing hands in just 25 years.

That's exactly what's happening as the baby boomers are passing along their wealth to their children. It's the largest wealth transfer ever, and it's happening right now. But it's not even remotely evenly distributed. I mean, some families will inherit fortunes, while others most will be left with nothing but memories. Number two, the biotech billionaire boom. Remember when we thought tech moguls were the only new billionaires on the block? Well, the health care and biotech industry just said, hold my beaker.

The COVID-19 pandemic turbocharged this trend. Vaccine developers and biotech investors saw their net worth skyrocket almost overnight. But it raises an uncomfortable question, as life-saving innovations make some people unfathomably rich, are we creating a new class of health oligarchs who call the shots in society? Number three, the pandemic paradox. I mean, picture this. While millions were losing their jobs and struggling to pay rent, the world's billionaires were having their best year ever.

I mean, in just nine months during the pandemic, their collective wealth swelled by $3.9 trillion. And how is this possible? Some point to massive government stimulus and low interest rates, which disproportionately benefited those with significant market investments. Was it a coincidence or was it planned? Number four, the great real estate reshuffle. I mean, remember when buying a house was part of the American dream?

Well, that dream is getting a major rewrite. Institutional investors are snatching up residential properties left and right. learning would-be homeowners into permanent renters. Add to this, a growing population, both U.S. and foreign-born, stagnant wages, and a housing shortage, and you've got a recipe for a housing crisis that's reshaping the very fabric of our communities. And then number five, the skills gap. You know, once upon a time, learning a trade was a ticket to the middle class.

Now, the game has changed dramatically. As traditional blue-collar jobs lose ground to automation, we're seeing. a massive shift in what it means to be skilled labor. On one end, we have highly specialized tech workers that are commanding six-figure salaries fresh out of college. And then on the other, we have a growing gig economy of social media influencers and e-commerce entrepreneurs. And then the middle? Well, there's no interest in becoming a plumber, an electrician, or a carpenter anymore. And it's all vanishing before our eyes, taking with it the traditional pathways to financial stability. And these trends aren't just numbers on a page. They're reshaping our world in real

time. And I know what you're thinking. Hey, Matt, this is all great info. But what the heck can I do about it? I'm not a billionaire or a foreign investor. My parents, they've got nothing to leave me. And I don't know a biotech breakthrough that's about to explode from a Star Trek episode. Well, I've got good news for you. There are ways for the average person, even if you feel like you're starting from behind or don't have any special advantage. to ride this wave of this wealth transfer. So let's dive into five practical steps that you can take right now

to secure your financial future. Number one, live below your means and automate your savings. I mean, this isn't just about pension pennies. It's about strategic spending. So start by tracking every dollar for a month. You'll be shocked at where your money is really going. Then set up automatic transfers to your savings account

the day after your paycheck hits. I mean, even if it's just $50 a month, That habit will compound over time. Every billionaire started somewhere, and living below your means gives you the capital to invest in your future. Number two, invest in your education and your skills. In the job market, it's changing at warp's speed, and the skills that are valuable today might be obsolete tomorrow. I mean, you can almost guarantee it, but don't panic. This is an opportunity.

Look into online courses on platforms like Coursera or EdX. Many are free or low cost. Focus on skills that are in high demand and hard to automate, like data analysis, digital marketing, or U.S. design. Even better, see if your employer offers tuition reimbursement. You're not just learning. You're increasing your earning potential exponentially. Number three, build multiple income streams. I mean, gone are the days when a single job could support a family.

The wealthy know that diversification, that's key. So start a side hustle based on your passions or your skills. If you love photography, sell prints on. online. You're good at writing? Offer freelance services on platforms like Upwork. Create an online course teaching something that you're knowledgeable about. Every extra dollar you earn is a dollar that can be invested in your future. And who knows? Your side hustle today could be your main gig tomorrow. Number four, explore real estate investments. I mean, you don't need millions to get into real estate. Start small with real estate investment trusts, for example. These are like mutual funds for real

estate, allowing you to invest in property portfolios with as little as $500. Or look into buying a small home using an FHA loan where you only need a 3.5% down payment. That can be as little as $10,000 in most parts of the country. And if you don't have the down payment, there are programs and grants that will hook you up. I uploaded a list of them for you at zero downkit.com. The idea is to live there for a year or so, not forever, just a year or so, save another down payment. Move out, turn that one into a rental, and then buy another. As you build capital, consider house hacking, buying a multi-unit property, living in one unit,

and renting out the others. Your tenants could essentially be paying your mortgage. And then number five, stay informed about financial trends. Knowledge, it truly is power, especially when it comes to finance. Make learning about money a daily habit. Follow financial news sites. Subscribe to newsletters from reputable sources like the Wall Street Journal or Bloomberg. Listen to podcasts during your commute, like Planet Money or Freakonomics.

They break down complex economic concepts in very entertaining ways. The goal is to understand the big picture of how money moves in our economy. When you understand the game, you can play it more effectively. Now, none of this is about getting rich overnight. It's about positioning yourself to benefit from the massive wealth transfer that's happening right now. A rising tide, it lifts all boats, and the tide is rising. so you want to get some of your own boats in the water, like right now. Every step you take, no matter how small, puts you ahead of where you were yesterday.

The wealthy aren't privy to some big secret. They just understand how money works and how to make it work for them. And now you can too. But here is where it all comes together in a very simplified and easy way. I mean, if you want to kill multiple birds with one stone, consider making a full or part-time business out of acquiring income-producing real estate, and here's why. You're investing in a tangible asset that historically appreciates over time. You're building multiple income streams through rental income and potential property

flips. You're forced to learn and upgrade your skills in areas like negotiation, marketing, property management, and market analysis. You'll naturally build a network of real estate professionals, contractors, and fellow investors. You'll rapidly increase your financial literacy as you navigate deals, financing, and tax implications. As you build your real estate portfolio, you're creating a tangible legacy that can be passed down to future generations. The sole act of investing in real estate checks a lot of boxes with regard to what's important positioning yourself for the biggest wealth transfer that's happening right now. You don't need to be great to start, but you do need to start to be great.

Even a small property or a piece of land can be your entry point to ride this way. This wealth transfer is happening whether you like it or not. But now that you know what's really going on, you have the power to take action. The wealth revolution has begun, and it's time for us to claim our piece of the pie. I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would.

And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I, health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know, home for us, we got the cash flow. This podcast is a part of the C-suite Radio Network.

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