Don’t Be Afraid of The LeFrak Organization

Most of your friends and neighbors aren’t thinking about generational wealth.

They’re preoccupied with day to day inconveniences. Worried about making ends meet. Going to their 9–to–5 job, working for the weekend. They’re lucky if they can pay their mortgage.

That’s if they earn enough income to buy a primary residence in the first place. The reality is, it’s harder than ever for most Americans to own a home. It’s not affordable. What’s “affordable”? That means a homebuyer spends no more than 30% of their income on a monthly mortgage payment.

In 2022, the median US household income was $75,000. According to Redfin, homebuyers must earn an annual income of $115,000 to afford a typical US home. Keep in mind that number is from October 2023.

Today, a homebuyer needs to earn an annual salary of $116,633 to afford a typical home for sale (source: Redfin).

Which is almost 1.5% more since around 2023.

That’s 81.8314% more than a renter. A renter needs $64,160 to afford a typical rental apartment. This results in a shortfall of $52,473. Only to cover the difference in housing costs.

The fact that you’re subscribed to Methods of Prosperity newsletter means that you’re not like them. You’re thinking what I’m thinking.

Owning real estate is not only a reliable way to create generational wealth, but now is a great time to start.

To make my point, consider the LeFrak Organization. It represents a textbook example of American generational wealth. One that’s built on pragmatic business principles. And of course, real estate.

Owning a home now costs $52K more per year than renting. Families are stuck as forever renters. We’re seizing this shift. Buying 100+ unit assets in growth markets.

Few get in.

Accredited investors can gain access at Inveresta.com.

We’re improving quality of life at scale for hard working families. Inveresta.com

ⓘ  This is not an offer, solicitation of an offer, to buy or sell securities. Past performance is not an indication of future results. Investing involves risk and may result in partial or total loss. Prospective investors should carefully consider investment objectives, risks, charges and expenses, and should consult with a tax or legal adviser before making any investment decision.

It was 1905. Only four years prior, Carnegie sold his steel company to J.P. Morgan for $492 million. The first billion-dollar corporation, United States Steel Corporation, was about to emerge.

The U.S. economy was experiencing significant industrial growth. It was during this time that America was undergoing a transition. For the most part, we had been an agrarian society. Around 1897, new industries emerged: petroleum refining and steel manufacturing. Railroads connected various regions into a national market economy. New sources of power and new organization of labor increased productivity.

Until one day, Harry LeFrak founded the LeFrak Organization, establishing the American operation. Harry LeFrak was born in France in 1888. He immigrated to the United States in 1902. Later, his father, Aaron LeFrak, joined him. Aaron had been an architect and builder in France. His father, Maurice LeFrak had been a developer in France since the 1840s.

The legacy continued under Samuel J. LeFrak (1918–2003). He became president of the LeFrak Organization in 1948.

It became one of the largest private building firms in the world. Samuel transformed postwar urban housing. LeFrak constructed tens of thousands of affordable, large-scale residential apartments. Samuel had these apartments built for middle-income families throughout New York City. As well as the surrounding metropolitan region.

He developed approximately 200,000 homes and apartments. His most famous projects include LeFrak City in Queens. It’s a massive residential complex housing about 15,000 people.

He also developed the Newport complex in Jersey City. Which is a multi-billion dollar residential and commercial hub ($10 billion+).

Samuel pioneered cost-efficient construction techniques. He focused on creating integrated living spaces with modern amenities. Which he made accessible to working-class and middle-class Americans.

His impact went beyond real estate. He championed responsible urban revitalization. He supported philanthropic initiatives at major educational and cultural institutions.

His outspoken personality characterized him. As well as his commitment to accessible housing and substantial community involvement. This includes serving as a visiting lecturer. As well as sitting on the boards of prominent civic organizations.

His legacy continues through the neighborhoods and landmarks his company developed. As well as through his family.

He held the presidency until 1975, when his son Richard became president. Samuel then retained the title of chairman until his death in 2003.

Richard later became chairman and CEO following Samuel's death in 2003. Richard LeFrak is the current leader.

Each generation has built on the success of the previous. A modest real estate business grew into a multi-billion-dollar diversified empire. They have preserved ownership within the family. The organization’s leadership and assets have passed from one generation to the next.

Which reinforces the concept of generational wealth. As well as stewardship of legacy real estate assets. The family has also sustained influence through philanthropic endeavors. Which allows wealth and social contributions to persist across generations.

Today, the LeFrak Organization is preparing to continue stewardship to the fourth generation. Which will be through Richard’s sons, Harrison and Jamie LeFrak.

Richard LeFrak’s estimated net worth is over $6 billion. The primary source of which is from his real estate ventures.

I like you,

– Sean Allen Fenn

PS: The purpose of wealth is freedom. You can have financial freedom, but not by yourself. That’s why we’re building our core group of people. It’s a community to help each other achieve financial freedom. One way is by pooling our resources to invest in Multifamily real estate together. Whatever method of prosperity you choose, don’t go at it alone. You can now join our Methods of Prosperity community on Telegram here: