Binghamton, NY · Member since 2013 · 56 posts · 4 votes
Just wondering since next year is the "big" birthday, anyone start out their real estate investment career or on the path to wealth around 50 years old? I could kick myself for not starting sooner and for the past decade considered it was "too late." I have also been consumed building my business which is doing well. But I ready Kellers Millionaire Investors book and that motivated me. I'm in the "heavy reading, talking, education phase" and hope to get my first deal in 6 to 12 months. I'm reaching out making contacts and talking to agents, lawyers and those I've done business with in the past. Don't want to go in unprepared but man, I wish I did this years ago even though I have a successful business.
I'm a bit younger than you 44 and own a couple companies. I think a 5-8 year plan sounds like a good one to me. Keep your business strong and make it grow and add to your RE. I think as you get older you will enjoy the simple life anyways and won't require a new Porsche every other year. ;) Keeping it safe would be my focus firstly then profits. Not to say Profits should be neglected. Maybe being in an area that has been always strong relatively. Or get into something in another country where prices are lower but a high possibility for an upside.
Just my thinking outside of the box speaking. Not from experience.
Andrew, I'm the same age as you and just got serious about real estate 5 years ago. I'm pretty happy about the progress of the past 5 years. Start now!
I was 52 when I started real estate investing. Like you, I wish I had started 20 years ago. I began by wholesaling (which I still do) but have done a fix/flip and current am looking to build my buy/rent (I co-own one property I acquired subject-to and have contract on another property).
the great thing about being an entrepreneur is that it's color blind. It isnt racist. Doesn't care if you're fat. Accepts people for their individual abilities. Afford success no matter the size of your spoon. It only ask a single favor.
Acknowledge that the pain of failure hurts more then the pain of success.
Thank you everyone. The only problem I have always had, is I'm an IMPATIENT person. I think this time however, I'm looking at building net worth and I won't need to depend on it for living and monthly expenses (although income won't be shunned of course.)
Just wondering since next year is the "big" birthday, anyone start out their real estate investment career or on the path to wealth around 50 years old? I could kick myself for not starting sooner and for the past decade considered it was "too late." I have also been consumed building my business which is doing well. But I ready Kellers Millionaire Investors book and that motivated me. I'm in the "heavy reading, talking, education phase" and hope to get my first deal in 6 to 12 months. I'm reaching out making contacts and talking to agents, lawyers and those I've done business with in the past. Don't want to go in unprepared but man, I wish I did this years ago even though I have a successful business.
I'm 37, have a job, wife, and 3 kids, and little money to invest without borrowing it. If you have money to invest, or can find it, then you can start at any time. For my situation and market, I knew I'd have to build sweat equity to cash flow and make any money, considering that my investment is 100% bank financed. I'm doing a full reno on a foreclosed SFH, then planning to hold for rental or sell via lease purchase. I can't afford to hire high priced contractors, or I would have no profits left over when the project is done. Therefore, my BIL and our family are doing as much of the work ourselves as we can and supervising laborors where it makes sense. Yes, it is a JOB, but we are building the sweat equity into our business that we can't really save up from our days jobs with 3 and 6 kids each. So what I'm saying is, if you are going to do it like I am, you need a lot of energy and probably don't want to start out when you are much older, unless you don't have a day job to keep up with as well.
Buy and hold is hard for impatient investors. You might be better suited for rehab/flips or new construction. Though eventually, you'll want to focus on income and passive investments.
One of my favorite replies to someone saying "I'm too old to start investing/college/a business. It takes 4-5 years and I'll be 45/55/65 then!"
Reply:
How old will you be in 4-5 years if you don't start?
My aunt bought her first 2 unit investment property when she was 55. She's 76 now and it's free and clear and supplementing her retirement very nicely.
Jon Klaus, that's the avenue I'm strongly considering. I talked to a local RE agent who said it's impossible to make money flipping. So I won't be putting him in my network. I hate the word impossible. I might have to look at 100 deals, but I think I can learn a lot that way. I would like to move to income producing properties eventually either in or out of my area. I work now 60 hours a week, and while I can put time into trying to do deals, I simply will not be doing labor myself and will not be a landlord. That's a quality of life issue and time fixing toilets and screening tenants will actually make me less money as I'll be unproductive in my business. I think every one of us has to know where we come from and what we can realistically handle. As someone once said "It's all well and good to know how to drive, but it's more enjoyable to know where you're going."
Jon Klaus, that's the avenue I'm strongly considering. I talked to a local RE agent who said it's impossible to make money flipping. So I won't be putting him in my network. I hate the word impossible. I might have to look at 100 deals, but I think I can learn a lot that way. I would like to move to income producing properties eventually either in or out of my area. I work now 60 hours a week, and while I can put time into trying to do deals, I simply will not be doing labor myself and will not be a landlord. That's a quality of life issue and time fixing toilets and screening tenants will actually make me less money as I'll be unproductive in my business. I think every one of us has to know where we come from and what we can realistically handle. As someone once said "It's all well and good to know how to drive, but it's more enjoyable to know where you're going."
Good perspective Andrew. What your realtor said might be more accurate there in NY than in other areas. You likely have higher labor, transaction, holding, and other frictional costs than certain other regions. For a 1700 ft^2 home, I got my roof done for under $4600, my entire HVAC replaced for $3500, garage door for $650 and haven't had to pull a single permit. I've heard quotes of 3x those numbers for roofs from other posters in the northeast. For stuff my partner and I don't want to handle, we can get laborers for $10/hr and a skilled drywall or tile guy from $20-$25 hr all in. I know some investors in the South can get labor even cheaper than that.
Thank you everyone. The only problem I have always had, is I'm an IMPATIENT person. I think this time however, I'm looking at building net worth and I won't need to depend on it for living and monthly expenses (although income won't be shunned of course.)
Perfect then. You are more mutual now to learn the value of patience, especially in dealing with tenants. So, it's perfect time for you to start :-)
I started seriously researching when I was 39, bought my first property at 40, and I'm 43 now. The way I see it is that there would have been advantages to starting younger (more time), but I have different advantages now (some life experience and success in a different field). It doesn't sound like a bad tradeoff to me, I just have to make sure that I have a plan that works in a bit shorter time frame.
My husband and I each had a "big" birthday recently and we started investing 6 years ago. The market was perfect for us then, in that we had plenty of cash from corporate jobs, the housing market had started to collapse, prices and interest rates were incredibly low, and we got great deals.
Different times present different circumstances and you can make it work for you. Of course we say that we should have done this sooner, but sooner wouldn't have been the better time for us. The best time is whenever you're ready.
@Andrew S. I will be turning 49 in six months so I can definitely feel the big 5-0 looming on the horizon. I am starting to take action toward getting my first flip. I will be flipping to pay off some consumer debt and build some capital. I plan within a couple of years to use both buy and hold and flipping for exit strategies.
Flipping is great but provides no passive cash flow so rentals are in the future for me and I can always use Property Managers if I get tired of dealing directly with every little problem.
I am also developing my long term business plan and gaining a ton of knowledge, I may still work full time until I'm 62 or so.
I live in an area (Seattle area) where cash flow properties and easy flips are nearly nonexistence. Especially at a price point the meets my criteria. I have found the there are places within an hour of my place that do work so I am looking there as well.
Started 5 years ago and bought my first property (my personal home) at age 37. Since then have been buying 1-2 homes/year for buy and hold. Everybody's circumstances are different and I don't regret starting when I did, at the age I did.