Did you know that the median wealth of white households is nearly 10 times that of black households? This inequality is called the wealth gap. And many people believe the main factor in this gap is property ownership. Kendra Barnes is the founder of The Key Resource, where she teaches beginner real estate investors. And personally, she’s built a real estate portfolio that generates more than $150,000 in rental income per year. She hopes to share her story to encourage young black people to do the same. She chats with Bold TV about how real estate investing is the key to building generational wealth and bridging the wealth gap.
Bridging the wealth gap
There is power in passing down assets such as property to your family. But for many years (and many reasons), black people weren’t able to buy houses. And if they did own property, they were limited to certain areas. But generational wealth builds over time (hence the keyword generational). Many people are starting at or near zero. So if that’s you, there are ways to break into real estate investing. You may qualify for down payment assistance programs or first-time homebuyer grants. Barnes says that real estate investing is not easy, but it’s worth the challenge.
Ownership gives you options
Young folks may think owning real estate is like an anchor. It takes responsibility and gives risks. But experts say ownership brings you more freedom. Just because you own a house doesn’t mean you can’t travel. You can rent out what you own. The point of investing is that it sets you up for future options. Barnes stresses passive income, which is being able to make money in your sleep. Millennials and Gen-Zers can own multiple properties. And young black people can carry generational wealth to bridge the wealth gap. It’s a matter of taking a leap of faith!
