Use a scholarship house instead of a 529 account

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Why not the 529

1. Four reasons to use property instead
2. Tax scholarships, and why they work
3. Merit money and the aid forms
4. What you still own at the end

How it is done for you

1. Simulating the aid number
2. Choosing the house
3. Making it perform
4. Management, and enjoying it

Four reasons to use property instead

If you are a highincome family, don't use your 529 accounts or your investments to pay for your kids' college. Instead, use a scholarship house. That's right. There are three reasons why you should consider a scholarship house to pay for your kids' college.

Number one, cash flow. Real estate cash flow can pay for your kids' education as well as your retirement. Number two, real estate comes with a lot of tax benefits. We call these tax scholarships.

That could be free money to help you go towards the cost of college. And the third reason is because some of you that make a lot of money aren't going to qualify for any financial aid. But if you take advantage of these real estate tax benefits and reduce your income, depending on the schools, you might even be able to get some free financial aid by using real estate or a scholarship house as a way of paying for your kids' college. And here's the best part.

You don't have to have any real estate experience. And it doesn't take a lot of time because we will either do it with you or we'll even do it for you. That's right. So, let's dive into cash flow.

For example, if you're going to have to pay $250,000 for your kids's college education, that money is going to be gone. You take the money out of your 529 account or out of your investments or out of your income each month and that money is gone because it's an expense. But what if we take the same amount of money that you were going to be paying for college and instead put it towards a scholarship house. That's right.

This income is going to come in to be able to pay for your kids' college education. That cash flow pays for either college or could also pay back those college loans. So the cash flow from your scholarship house pays for either college or the college loan payments and then eventually college is paid by your scholarship house. The best part is however the cash flow doesn't stop.

That's right. Once college is paid for the cash flow doesn't stop. It will continue to create cash flow for your income and your retirement. We call that free retirement scholarship money.

That could be over a million dollar in free money during your retirement just by how you pay for college. In other words, if you pay cash or drain your savings to pay $250,000 for college, it's going to cost you a million dollar in retirement. That is a cost. Now, let's talk about the second reason why you should consider a scholarship house to pay for college.

Tax scholarships, and why they work

We call it tax scholarships. Real estate comes with lots of tax deductions. In fact, these tax savings could be considered college savings. We like to call them tax scholarships.

Hey, free money is free money, right? Now, the reason this works is because of what we call depreciation. Thanks to the big beautiful bill and what we call bonus depreciation, we can depreciate all of that in one year. For example, let's say that we buy a million scholarship house.

Okay, with a cost segregation study, we're going to be able to reduce our income by about 25 to 35% of the purchase price with the land being the biggest variable. So, as an example, on average, that's going to be around $250 to $350,000 that you can reduce your income by purchasing a millionoll scholarship house. For example, let's say that we take that $250,000 that we were going to use to pay for college and buy the scholarship house for a million. That million dollar could reduce your income by about $300,000.

By reducing your income $300,000, if you're in a 37% tax bracket, that could be over $100,000 in tax savings. That's over $100,000 that you can put back in your pocket just like getting scholarships. We call these tax scholarship. And finally, some of you might be able to qualify for financial aid.

Merit money and the aid forms

That's right. Most of you make too much money to qualify for need-based financial aid. However, by implementing what we call financial positioning, you can get what we call financial positioning scholarships. There are two ways to get free money from the colleges and the government.

One is through what we call meritbased scholarships. You're probably familiar with that. That's where you take your student who is gifted in other ways and help them become an exceptionally gifted student so that they can get all of those scholarships. However, what you might not be familiar with is what we call financial positioning to be able to get that need-based financial aid.

When you fill out the financial aid forms in the fall of the senior year in high school, like the FAFSA, they're going to look at your income and your assets, and they're going to give you a financial aid number. Now, most of you probably have a pretty high EFC or SAI financial aid number, which means you might get some discounts, but you're not going to get a lot of need-based financial aid. However, if you buy a scholarship house and use a cost segregation study and bonus depreciation to reduce your income, you could reduce your income enough to lower your financial aid number and increase your need-based financial aid eligibility. So, those are the three reasons why you should consider using a scholarship house to pay for your kids' college.

What you still own at the end

You could potentially have a million-doll vacation rental that you get to own and enjoy as a family. Get cash flow to be able to pay for college still. You could get over $100,000 in tax savings in the example that we were using. A million dollar over time in appreciation as that house grows and increases in value, including over a million dollar of retirement income in addition to helping your kids pay for college.

generational wealth because you can leave that house and all that cash flow to your kids and your kids' kids for several generations. And some of you, depending on the schools that you're going to, could even qualify for financial aid. And the best part is is if you don't have any real estate experience and you're too busy, we will either do it with you or we will do it for you. Here is how we can help.

Simulating the aid number

First and foremost, we have built a proprietary financial aid simulating software that allows us to show you how to apply everything that we just talked about. We have shown over 3,000 families how to reduce the cost of college using our proprietary software. You will work one on-one with a college funding specialist to collect information about the parents, the students, and to calculate what we call your financial aid numbers. We will then show you through financial strategies and financial positioning.

We will show you how to reduce those financial aid numbers. Then we can show you exactly what's involved and how low those numbers could get and to see if you could qualify for some financial aid. We will then use the college search feature to look for acceptance rates, majors, location, the cost of attendance. We can look for the college size, and more importantly, we can look for the schools that are going to give your family the most free money.

Choosing the house

Once we've narrowed down our list of schools and we know how much each one of those schools are going to give us in free money, now we have an estimated cost of college for each of our kids. Then we're going to use our college cost calculator to be able to look at each of those kids with inflation to see how much each of those kids are going to cost to get us a grand total cost of college. If you're planning on taking out college loans, we will use our college loan calculator to be able to calculate how much your total loan payments are going to be for each of your kids. And yes, we will even show you the opportunity cost of paying for college and how much that's going to cost you in retirement.

Once we've entered in all of your information, our proprietary software is going to generate a presentation just for you with your specific information and your specific numbers so that you know how much college is going to cost for your family. Then we will show you specifically how to use a scholarship house or multiple scholarship houses to pay for your child's education. whether you want to pay for college directly or whether you want to pay back college loans. We'll show you when it is that you're going to have college paid for.

We'll also show you how much additional income you could be receiving in your retirement. We'll also be able to calculate all of the tax savings that you're going to get by using a scholarship house to pay for college. So, let's talk about how we help you find the properties. We have a network of wholesalers and realtors that are sending us properties every day that are going to be great short-term rental properties, including some amazing deals like this house in the Smoky Mountains.

That's a $1.2 million house with simply $60,000 for a down payment. That's about five percent to get into this property fully furnished with very little money that would need to go in to make it even that much better to start maximizing that revenue and getting into that top 1% of the market. Or like this house just outside of Orlando that we could set up as an amazing Disney World themed house and pick up a 2.5% interest rate. Next, our team does all the financial analysis of these properties.

We look at all of the data, all of the numbers. We analyze markets to make sure the market is a good place to invest. Make sure that the market is increasing. Also look at the average occupancy so that we know how often the house is going to be rented out.

That helps us calculate expenses and revenue. And finally, we look at the average nightly rate by price tier. Now, you've probably heard that the Airbnb market is getting oversaturated and that you can't make money with Airbnbs. That's actually not true.

Making it perform

The reality of it is is that there's a lot of competition in the middle, but there's not a lot of competition at the top. The secret to making a lot of money in an Airbnb is having that property be in the top 1% of that market. That is how you maximize revenue and income. We will also show you comparable properties that you can look at to know what the income potential is of all of the properties that are surrounding the area of the house that you want to buy.

Then we put all of these houses into our scholarship house database where you can shop for all of the houses that we've already found for you and that we've already done all of the analysis and provided all of the information so that you're making an educated decision. You're going to be able to search, sort, filter, narrow down houses by interest rate, down payment, location. Whether it's on the beach, whether it's on a lake, whatever it is that you're looking for, we will help you find the perfect scholarship house for your family. Most importantly, our team is going to design the house to make that amazing guest experience and to be in that top 1% of the market.

That is how you truly make the most money. Increasing your occupancy and increasing your average nightly rate is to create a theme. Have amazing pictures, being able to have all the amenities so that you get those repeat customers and repeat guests. We want those amazing reviews and we want people to keep coming back over and over.

It's not just putting a house on Airbnb. It's about creating an experience. You want to be able to have an amazing property that you're proud of and that your family can also enjoy. Our team is also going to do all the marketing and the promoting of your house.

We can use these ads to test headlines, descriptions. We can test different pictures. We can drive some of that initial traffic to get our houses up and running and to get some of those initial reviews and eventually end up on the first page of Airbnb. And that's when we've truly got a successful scholarship house business.

Management, and enjoying it

Now, I know you're busy. I know you're a high-income family that doesn't have a lot of time. So, yes, our team is also going to manage the property, creating that amazing guest experience. That's how we get those fivestar reviews.

Any professional manager out there knows that how you manage a property is where the real revenue and value comes from. Then, our team is going to maximize the revenue potential of this property with pricing strategies as well as ways to increase those occupancies and really increase that overall guest experience. It's all about maximizing the revenue from these properties. And that's how you'll be able to pay for your college.

And finally, you simply enjoy the house with your family, have it pay for your kids' college education and your retirement. Look, as a father of five kids, I have learned all of this information out of desperation more than inspiration. I wanted to help my kids have the education of their dreams, but I knew it was going to be expensive. I saw the cost of college increasing, and I knew there had to be a better way.

I'm excited to help you implement these strategies for your family. This is my first scholarship house that I got for my family. It's on a lake. We love going there.

We love boating. We love doing winter activities like snowmobile and skiing. And we love to just go and hang out at the cabin and spend time as a family. I'll bet you your 529 account's not that exciting.

Okay. Now, we own properties in the Smoky Mountains. We own properties in Florida. And we're always increasing our portfolio because of all of the income, the cash flow, the tax savings, all of the retirement benefits of owning a scholarship house.

Now, if you want to learn how to use a scholarship house in your college planning, go to scholarshiphouse.com, book a call with our team, and we'll show you exactly how to implement this for your specific situation.