How to Use Other People’s Money to Buy Real Estate in Maryland

Building Generational Wealth: Smart Strategies for Maryland Families

Creating generational wealth for your family is more than a trending concept—it’s a legacy-minded goal that can transform the future of your children and grandchildren. In Maryland, where real estate opportunities abound and financial literacy is becoming more essential than ever, families are seeking concrete steps to ensure they leave something lasting behind. From savvy investments to smart planning, let’s break down the top strategies to build and pass on wealth to future generations.


Compounding Interest: Make Your Money Work for You

A foundational pillar of generational wealth is making the most of your existing income. One of the easiest and most effective ways to grow wealth over time is by taking advantage of compounding interest. When choosing where to place your money, look for high-yield savings accounts, investment portfolios with dividend reinvestment, or long-term retirement accounts that offer compounding benefits.

For example, if you invest $10,000 in an account with an annual return of 6%, compounded annually, it would grow to over $57,000 in 30 years. Time and consistency are your greatest allies in building wealth slowly but surely.

External Source: NerdWallet explains the power of compounding

Compound Growth Chart

Making Smart Real Estate Investments

Real estate continues to be one of the most effective vehicles for building and maintaining generational wealth. It offers recurring income, appreciation, and tax advantages, and it’s a tangible asset that can be passed down. In Maryland, areas like Parkville, Perry Hall, and Randallstown offer excellent investment opportunities.

Simple Homebuyers can help you find valuable investment properties in Parkville that are primed for rental or resale. If you’re considering Perry Hall, check out this resource to learn about current options. For Randallstown investors, Simple Homebuyers also offers opportunities in that growing market.

Some of the best strategies include:

  • Holding rental properties for long-term income and appreciation
  • Flipping undervalued homes in up-and-coming neighborhoods
  • Partnering on commercial or multi-family housing developments

External Source: Investopedia’s beginner’s guide to real estate investing


Start a Family Business: Build Your Legacy

Starting a family business is one of the most direct ways to leave behind a financial legacy. Whether you’re opening a small contracting company, launching a food business, or building a real estate investment firm, a successful business can be passed down or sold for a substantial profit.

If your children are interested in entrepreneurship, get them involved early. Let them participate in operations, budgeting, marketing, or even customer service. This not only teaches them about running a business but fosters responsibility and long-term thinking.

While starting a business does come with risk, the rewards can be tremendous—and it’s one of the most controllable forms of wealth creation.

External Source: U.S. Small Business Administration on succession planning


Establish a Trust and Estate Plan

One of the most overlooked aspects of building generational wealth is having a legal plan in place. Without a will or trust, your heirs may face probate—a time-consuming and costly legal process that can significantly eat into your estate’s value.

Setting up a living trust ensures your assets are transferred seamlessly to your children or grandchildren, avoiding legal disputes or taxes. Consider working with an estate planning attorney to ensure your wishes are clearly laid out.

External Source: Nolo on living trusts and avoiding probate


Pass on Smart Financial Practices

Wealth is only half the equation. The other half is wealth education. Teach your children about:

  • Budgeting and saving
  • Investing and risk management
  • The value of ownership vs. debt
  • The importance of giving and community reinvestment

Include them in discussions about property purchases, renovations, or even business operations. The more involved they are, the more capable they’ll be of maintaining—and growing—what you leave behind.


Invest in Education and Mentorship

While not every child will want a college education, supporting them in developing valuable skills and trades can set them up for lifelong financial independence. Whether it’s funding a four-year degree, helping them start a vocational program, or even introducing them to a mentor in a professional field, education is a cornerstone of long-term success.

Encourage learning outside the classroom too. Books, online courses, and seminars on investing, business development, and personal finance can empower your children to thrive independently.

External Source: U.S. Department of Education on financial aid and college planning


Explore Opportunities in Lake Shore and Owings, MD

In addition to more commonly discussed investment towns, there are incredible opportunities in communities like Lake Shore and Owings. These areas offer promising real estate deals for those looking to invest and grow their portfolio.

If you’re considering selling or buying, Simple Homebuyers offers fast, reliable solutions in these regions:

These neighborhoods provide opportunities for long-term holds, flips, or even entry-level investments for newer investors looking to create a foothold in the Maryland real estate market.


Prioritize Long-Term Insurance Planning

Many overlook how crucial insurance is in preserving generational wealth. Life insurance, long-term care insurance, and umbrella liability coverage are tools that ensure your assets aren’t drained by emergencies or unforeseen events. For example, a solid life insurance policy not only protects your loved ones after your passing but can be a strategic financial instrument during your lifetime.

Additionally, real estate investors should carry sufficient property insurance and liability protection to prevent lawsuits or property damage from undermining their portfolio. Speak with a financial advisor to evaluate your coverage needs and ensure your assets are safeguarded.


Incorporate Philanthropy and Community Reinvestment

One of the less-discussed strategies for generational wealth is philanthropic giving. Not only does it provide tax advantages, but it instills a sense of responsibility and purpose in future generations. Establishing a donor-advised fund or charitable foundation in your family’s name can be a rewarding way to give back while keeping your legacy strong.

This can also include investing in your local community—through local businesses, development projects, or mentorship programs. Reinvesting in Maryland helps improve the areas where you’ve built your wealth, ensuring your success helps others, too.


Diversify Beyond Real Estate

While real estate is a powerful wealth-building tool, diversification across other asset classes such as stocks, bonds, precious metals, or even digital assets is crucial. This diversification helps shield your portfolio from market volatility and provides multiple streams of income.

Educate yourself or work with a licensed financial advisor to ensure your asset mix aligns with your long-term goals. Platforms like Vanguard and Fidelity offer educational resources and low-cost entry to index funds and ETFs—tools known for compounding growth and stability.

External Source: Vanguard on portfolio diversification


Frequently Asked Questions (FAQ)

Q: How much money do I need to start building generational wealth?
A: You can begin with any amount. The key is consistency and making smart financial decisions early—like saving, investing, and minimizing debt.

Q: Is real estate really a safe investment for generational wealth?
A: Real estate has historically outperformed many other asset classes over the long term and offers tax benefits, rental income, and appreciation.

Q: Should I create a trust or a will?
A: Both are essential estate planning tools. A will outlines your wishes after death, while a trust helps avoid probate and can manage assets during your lifetime.

Q: What if my children don’t want to manage property or a business?
A: In that case, selling those assets and converting them to passive income investments, like dividend-paying stocks or annuities, is a viable alternative.


Final Thoughts: Your Legacy Starts Today

You don’t need to be a millionaire to build generational wealth—you just need a plan. Whether it’s investing in Maryland real estate, starting a family business, setting up a trust, or simply teaching your kids smart money habits, every step you take now can positively impact your family for generations.

If you’re ready to explore how real estate can help you create lasting wealth, reach out to Simple Homebuyers. Our team is here to help you identify the best properties and build a long-term investment strategy tailored to your goals.

Start now. Your future generations will thank you.

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