Jumping in later in life

[Heather Brooke]

Hi everyone,

I’ve been lurking and reading and trying to learn. I’d love to hear some success stories of people who’ve gotten into real estate in their 30s or 40s after they’ve settled down. This is so new to me and I’d like to buy my first rental in 2023 but would love to hear stories of others who taught themselves how to do this a little later in life without growing up in the real estate business!  

[Greg Scott]

"Later in life" = 30s or 40s???  That means you are calling a lot of us "old".  I was in my 40s when I had my first rental.

Probably the most limiting factor for most new investors is access to capital.  Those of us who worked for a number of years before starting often have more capital, plus often more wisdom and more connections than people that start in their 20s.

I retired last year, three years after my wife and over a decade after we started investing in real estate.  Our real estate now makes us more monthly than our jobs did.  After a cash-out-refi on an apartment, real estate put more cash in my pocket in 2022 than the lump-sum payout of my pension.  One took 3 years of hard work and the other took 26 years of hard work.

[Heather Brooke]

This is helpful, thank you! Do you mind sharing where you typically find your properties (or where you did when you started out)? There are a couple I have my eye on from the MLS but wondering if there are better ways to identify them for beginners!

[Nathan Gesner]

Quote from @Greg Scott:

I started at age 46. I told everyone and their brother that I wanted to invest and was looking for an off-market fixer-upper. I told everyone. All the time. Probably to the point of being annoying. But it worked and someone brough me a hoarder house for $57,000 in a town with a median price of $235,000 at the time. I fixed it up myself and it appraised for $155,000 before I put a renter in it.

Then I started telling people about the next thing I was looking for. Rinse and repeat. I now have 33 rentals and 135 storage units.

[Theresa Harris]

I think you will find very few people who got into rentals in their 20s. My first rental was a condo that I lived in and then turned into a rental once I moved. I didn't buy my next rental until I was in my 40s. At that point, you have more money and are earning more money so banks will lend you more money. All of my places I bought off MLS by working with a realtor who has their own investment properties.

[River Sava]

Hi Heather - it is never too late to jump into REI, and it is rare to see people in their 20's with rentals. What types of properties are you looking into... Short term? Long term? Would love to connect and help where I can!

[Reid Chauvin]

Hi @Heather Brooke - my mother bought her first rental property in her 40's. She worked with a realtor friend and found a home in which the long-time owner had recently passed. The ladies kids didn't want to deal with it and just wanted a quick pay-day, so she got a good deal. As you can imagine, the home needed a lot of work, and without a ton of capital, my Mom (with my assistance) employed the 'sweat-equity' approach. I was around 11 and I remember going to the house after soccer practice and tearing out old carpet and linoleum flooring...fun times haha. She's acquired a few more properties since then and they will continue to be a major supplement to her income when she retires. 

I'm local to Nashville and am more than happy to talk through any questions you may have - just dm me!  

[Heather Brooke]

That’s helpful! I was originally looking at properties east of nashville (Donelson, hermitage, Mt. Juliet, Lebanon) but I’m not sure properties would cash flow as well as I’d want them to there. I’m thinking Jackson, Columbia, Franklin, KY might be a better option. What are your thoughts on this?