Am I too old to get started? What is a realistic plan for me?
Most Popular Reply
Bradley BuxtonBusiness Member
Real Estate Agent Ā· NV Ā· Member since 2023 Ā· 1k+ posts Ā· 713 votesYou're never too old to get started, that is someone projecting their own fears on you. Ignore them. If you can house hack and buy a property every year for the next 5 years in areas with strong appreciation you'll be well on your way to building equity. You don't need to pay off the properties to cash in the from equity. One option is sell 2 of the properties pay off the other 3 and now you have 3 cash flowing properties that will still continue to gain equity. Then keep buying a property until your in your late 50s and repeat. I was living in SLO, CA and moved to the Reno Tahoe area because it was more affordable and still had the CA outdoor lifestyle. There is strong appreciation in this market with tech and manufacturing jobs. Late 40s is the new 30s and you can still build wealth with real estate.
63 Replies
- 2yBradley BuxtonBusiness MemberReal Estate Agent Ā· NV Ā· Member since 2023 Ā· 1k+ posts Ā· 713 votes
You're never too old to get started, that is someone projecting their own fears on you. Ignore them. If you can house hack and buy a property every year for the next 5 years in areas with strong appreciation you'll be well on your way to building equity. You don't need to pay off the properties to cash in the from equity. One option is sell 2 of the properties pay off the other 3 and now you have 3 cash flowing properties that will still continue to gain equity. Then keep buying a property until your in your late 50s and repeat. I was living in SLO, CA and moved to the Reno Tahoe area because it was more affordable and still had the CA outdoor lifestyle. There is strong appreciation in this market with tech and manufacturing jobs. Late 40s is the new 30s and you can still build wealth with real estate.
- 2yJohn CiallellaPro MemberNew to Real Estate Ā· OH Ā· Member since 2023 Ā· 5 posts Ā· 19 votes
@Bradley Buxton Thank you for your positivity! I'm in my fifties and just closed on my first properties yesterday. For 20 years I let nay-sayers prevent me from doing this.
@Sarah Ali You can do it! Go to Meetups, join a REIA, talk to people doing different things and learn as much as possible. It's amazing how many different opportunities there are in RE. - Investor Ā· Arizona & Oregon Coast Ā· Member since 2023 Ā· 128 posts Ā· 113 votes2y
Quote from @Sarah Ali:
I'm one by one tackling my fears by reaching out to BP community!
Next fear: I'm late 40s and have no RE. Am I too old to get started? in 30 years when my mortgages will finally be paid off, I might be dead. What would a realistic plan for someone my age be? Ideally I would like to live off income from REI, as I cannot currently work in a traditional sense (ie, desk job). How can I get there and how long would it take?
I'm thinking to house hack or do a 2, 3 or 4 plex where I live in one of the units. But where I currently live (SF Bay Area) is so expensive. Could I find a place here? Should I look in other, cheaper parts of CA? Or OOS?@Bradley Buxton is correct. Another option is to pay the loan on a 15 year term. That way in 15 years they will be paid off, so early to mid 60s for you. Also as Bradley said, assuming appreciation and debt pay down you can either sell one and just cash out the equity or use it to pay another off. One big benefit of the 15 year loan is that the payment isn't significantly more than a 30 year but you pay significantly less in interest over the term of the loan.
- Investor Ā· Arizona & Oregon Coast Ā· Member since 2023 Ā· 128 posts Ā· 113 votes2y
Quote from @Bradley Buxton:
You're never too old to get started, that is someone projecting their own fears on you. Ignore them. If you can house hack and buy a property every year for the next 5 years in areas with strong appreciation you'll be well on your way to building equity. You don't need to pay off the properties to cash in the from equity. One option is sell 2 of the properties pay off the other 3 and now you have 3 cash flowing properties that will still continue to gain equity. Then keep buying a property until your in your late 50s and repeat. I was living in SLO, CA and moved to the Reno Tahoe area because it was more affordable and still had the CA outdoor lifestyle. There is strong appreciation in this market with tech and manufacturing jobs. Late 40s is the new 30s and you can still build wealth with real estate.
The sarcastic side of me just wants to reply and say that someone in their 90s is probably too old to get started. š
- Member since 2018 Ā· 113 posts Ā· 135 votes2y
I'm 41YO and my wife and I bought our first rental home at 38. Have bought a few more since then. I don't feel I'm too old. I look at the overall return of REI and project it will have a better return over the next 25 years than stock market.
Even though I consider myself a beginner, in the last 3 years, Iāve learned to buy off market and improve properties a bit to build equity, and thatās satisfying to me, as is being a landlord who takes good care of their properties and tenants. Yes, I wish Iād started when I was younger, but Iām glad I started at 38YO.
Itās definitely not a get rich quick game, very much a long term game. And it is work. Please make sure you have enough reserves.
- Investor Ā· Akron, OH Ā· Member since 2016 Ā· 2k+ posts Ā· 4k+ votes2yI hope you're not too old. (Especially since I started at 54). Why do you want your loans paid off? I don't really like the idea of having my properties completely paid off. Since we have commercial loans we only get 20 year terms and the bank requires us to keep at least 25% equity and I do like some additional equity cushion but above that I like to re-fi out my down payment and renovations asap-- so that we can use the money to buy more propeties.
- 2yBruce WoodruffPro MemberContractor/Investor/Consultant Ā· San Diego / Phoenix Ā· Member since 2021 Ā· 12k+ posts Ā· 15k+ votes
Quote from @Sarah Ali:
I'm one by one tackling my fears by reaching out to BP community!
Next fear: I'm late 40s and have no RE. Am I too old to get started? in 30 years when my mortgages will finally be paid off, I might be dead.You're still young, just do it! You don't just make money when your mortgage is paid off....a lot of people never pay off a mortgage....just keep buying, selling, refi'ing.
Your goal is NOT to just pay off your mortgage.....
- Rental Property Investor Ā· Member since 2018 Ā· 826 posts Ā· 810 votes2y
@Sarah Ali having a paid off mortgage is not an appropriate goal. Your goal is to build equity, which can be done through several ways (cash flow, appreciation, principal paydown, tax shielding, etc).
Equity accumulation can be achieved in 10 years, 20 years, or greater. You donāt have to necessarily retire with debt-free assets. You can realistically sell your real estate portfolio after 10 years and have significantly more wealth - and at that point you can spend it all or invest in something less risky or more passive.
The reasons above is why folks will say itās never really too late to invest in real estate.
- 2yNicholas L.Pro MemberFlipper/Rehabber Ā· Pittsburgh Ā· Member since 2018 Ā· 6k+ posts Ā· 5k+ votes
it's definitely not too late to get started and you're definitely not too old. with that said, though - it's much more difficult to build up significant passive income from nothing but traditional long term rentals, especially with rates and prices so high, than advertised.
so - should you get started? yes. will you be netting $5K a month from long term rentals in 3 years? no. and that's OK. a few other things.
-I like what @Bradley Buxton said. if you buy a few properties and they appreciate a little, you can sell one. that's cash flow too.
-if you have other income sources, you can think about real estate as one component. what if you work part time + have rental income + have SS? that's a great place to be in.
-yes, definitely house hack. it is the most powerful way to get started. and it may take some work. everyone wants to look at 3 properties, make 1 offer and be done. well, what if it takes looking at 50 properties and making 10 offers to get the right place? and what if that takes 3 or 6 or 12 months?
-you asked about OOS. a lot of people in HCOL areas like CA look at the midwest and those lower price points and think - i'll buy a few of these and net $500 each and i'm off to the moon. but it doesn't work like that. see these threads.
https://www.biggerpockets.com/forums/48/topics/1159104-overl...
https://www.biggerpockets.com/forums/12/topics/1171104-the-m...
hope this helps.
- Real Estate Broker Ā· Cody, WY Ā· Member since 2010 Ā· 28k+ posts Ā· 41k+ votes2y
No, you are not too old. I really got started in 2016 at age 46. I now have 33 doors and 135 storage units.
Even if you only bought one house and paid it off in 15 years, you would be age 65 with another $3,000 or more in monthly income. Every little bit helps if you choose/need to retire.
The DIY Landlord Book4.7248 Reviews - Rental Property Investor Ā· East Wenatchee, WA Ā· Member since 2014 Ā· 10k+ posts Ā· 16k+ votes2y
Definitely not too late to invest now for freedom and options later for anyone with hope.
Invest in what you know. Buy something 'out of favor' right now to maximize equity capture either in traditional stocks/ mutual funds or that amazing RE opportunity off-market that nobody else has the vision for.
As to paying off mortgages, most rarely pay as agreed over 30 years. 'Windfalls' arise or we prioritize and accelerate. Then that one snowballs into the next seamlessly if we choose to go that route.
- Realtor Ā· Akron, OH Ā· Member since 2023 Ā· 56 posts Ā· 40 votes2y
What's the saying? Best time to buy real estate was 10 years ago and the next best time is today! It is never too late to start you just have to adjust your goals/expectations. What is the reason you want to invest in real estate? When you figure that out the best path will make sense.
- 2yRyan KellyBusiness MemberReal Estate Broker Ā· Austin, TX Ā· Member since 2018 Ā· 1k+ posts Ā· 1k+ votes
@Sarah Ali you are never too old. We purchased our first rental when I was 44 years old and now have 7 units a few years later. Who says you need to pay the mortgages off? For many of us, the debt is an asset which can be refinanced for extra cash as you pay down equity. Donāt make it complicated. Go find ONE property you want to own, run the numbers, and buy it.
Ryan Kelly Group - Keller Williams5110 Reviews - 2yBruce WoodruffPro MemberContractor/Investor/Consultant Ā· San Diego / Phoenix Ā· Member since 2021 Ā· 12k+ posts Ā· 15k+ votes
@Sarah Ali You are getting the point that paying off your mortgage is not even on most people's radar! Just to reiterate that point, here's a story - I have a friend who is about to sell one property and will have $1 mil in cash. I asked if he was going to pay off a mortgage on another property? He said 'heck no, I like the write-off'......
Don't get overwhelmed by this new concept, just go out there right now and buy something....anything. Well, after you get a little more education that is... :-)
- Handyman Ā· Pittsburgh, PA Ā· Member since 2018 Ā· 5k+ posts Ā· 13k+ votes2y
Quote from @Sarah Ali:
I'm one by one tackling my fears by reaching out to BP community!
Next fear: I'm late 40s and have no RE. Am I too old to get started? in 30 years when my mortgages will finally be paid off, I might be dead. What would a realistic plan for someone my age be? Ideally I would like to live off income from REI, as I cannot currently work in a traditional sense (ie, desk job). How can I get there and how long would it take?
I'm thinking to house hack or do a 2, 3 or 4 plex where I live in one of the units. But where I currently live (SF Bay Area) is so expensive. Could I find a place here? Should I look in other, cheaper parts of CA? Or OOS?OK, this is what I see here.
1. I cannot currently work in a traditional sense (ie, desk job). "Cannot" in this sentence as a red flag. There are very few people who pull off real estate investing without doing a LOT of desk jobs. And far less pleasant, safe, and clean jobs as well.
2. Yeah, you're in your late 40s. You're at a disadvantage. But if all your imagination is able to see happening in the next thirty years of real estate investing is that you will pay off your mortgages slowly and steadily, you're already dead in the water. I don't agree with @Bruce Woodruff about many things but he knows what he's talking about here.
3: "I would like to live off income from REI." You and every hopeful investor in America. The goal of getting out of whatever job you work at as quickly as possible to do REI full-time is typically a loser's dream in this business. Forget the promises of education and coaching you hear, it's going to take years and years before you can stand tall with your own, hard-won insights into this business. If you need handholding and spoonfeeding, hire a nanny. Don't come to real estate and expect to be mollycoddled. Anyone who promises you an easy time of anything in this business is without a doubt looking to take advantage of you.
4. Househacking is a great idea for a first investment. I do it, even though I got into it much later than I should have. Househacking in the Bay Area is a difficult proposition from what most people tell me.5. Clearly, not even for a second are you considering the idea of moving to a place where it's easier to make a start than the Bay Area. You will have to make a lot more significant and burdensome investment decisions than this one.
Conclusion.
You're in your late 40s. You're only going to get older. Time to get the lead out of your butt, one way or another. But don't expect to do what everyone else is doing and be an unqualified success in life. You have to take that leap into the unknown, and keep taking more after it, and you could ruin yourself. These are fears you have to live with in REI, and choices which have consequences that you have to make. - 2yBruce WoodruffPro MemberContractor/Investor/Consultant Ā· San Diego / Phoenix Ā· Member since 2021 Ā· 12k+ posts Ā· 15k+ votes
@Sarah Ali Jim makes a good point with his # 4 & 5, and it begs the question: will you consider leaving the Bay Area? Of course you can make RE work anywhere, but if your real goal is to retire within 30 years, using Real Estate as your vehicle.....and if you are serious about this.....then you owe it to yourself to at least consider moving to an area where Real Estate is easier. It will give you an automatic head start, an amazing advantage.....
- Investor Ā· San Francisco, CA Ā· Member since 2016 Ā· 338 posts Ā· 444 votes2y
@Sarah Ali Just something Iāve been thinking about lately:
I also live in the Bay Area and this is a place where I know people āretiringā in their 40ās after working 10/15 years at the big tech firms. I think it stems from the illusion startup founders project by becoming young billionaires. This is also a location where you never feel rich because you are surrounded by affluence. But when you look at many of the business heroes many folks on bigger pockets read and follow, they made their biggest money between 40-60 and beyond.
If RE is brand new to you, I would focus on playing defense:1.) Shortcut your learning curve by learning from experienced players who do what you want to do.
2.) Focus on making course corrections on your early mistakes fast and moving on or problem solving.
3.) Utilize unintended advantages that youāve gained over the years. For example, you may already know people who are crushing real estate and youāve just never had the conversation with them. You may also know other people who have also been thinking about investment in this stage of their life and have the financial means.
4.) Only do it if you think itās going to be fun/interesting or you feel you will be good at it. Why waste the next decade or more otherwise.
- Member since 2024 Ā· 24 posts Ā· 18 votes2y
Quote from @Jill F.:
I hope you're not too old. (Especially since I started at 54). Why do you want your loans paid off? I don't really like the idea of having my properties completely paid off. Since we have commercial loans we only get 20 year terms and the bank requires us to keep at least 25% equity and I do like some additional equity cushion but above that I like to re-fi out my down payment and renovations asap-- so that we can use the money to buy more propeties.
having debt makes me feel really anxious! Do you have any tips on that? I hate the fact that I'd have debt (aka mortgage) hanging over me for the rest of my life. Yah, I should've started earlier to avoid that, but it didn't work out that way. - Member since 2024 Ā· 24 posts Ā· 18 votes2y
Quote from @Bruce Woodruff:
Quote from @Sarah Ali:
I'm one by one tackling my fears by reaching out to BP community!
Next fear: I'm late 40s and have no RE. Am I too old to get started? in 30 years when my mortgages will finally be paid off, I might be dead.You're still young, just do it! You don't just make money when your mortgage is paid off....a lot of people never pay off a mortgage....just keep buying, selling, refi'ing.
Your goal is NOT to just pay off your mortgage.....
This is a new perspective for me. If not to pay off mtg, what is the goal? Yes I understand it's to make money, but could you elaborate more please? Do you just keep shuffling mortgages? It just feels like there'll always be something hanging on my neck. Help me understand this process better so I don't feel this way. THank you. - Member since 2024 Ā· 24 posts Ā· 18 votes2yI think you're right on this, I just need to "see" the process once or twice and I will catch on very fast. May I reach out to you for a bit of hand holding please? Or if you can refer me to another hand holder I would much appreciate it.
Quote from @Account Closed:
Quote from @Sarah Ali:
I'm one by one tackling my fears by reaching out to BP community!
Next fear: I'm late 40s and have no RE. Am I too old to get started? in 30 years when my mortgages will finally be paid off, I might be dead. What would a realistic plan for someone my age be? Ideally I would like to live off income from REI, as I cannot currently work in a traditional sense (ie, desk job). How can I get there and how long would it take?
I'm thinking to house hack or do a 2, 3 or 4 plex where I live in one of the units. But where I currently live (SF Bay Area) is so expensive. Could I find a place here? Should I look in other, cheaper parts of CA? Or OOS?When I told my friends how old I would be when I got out of grad school if I went, they asked how old I'd be if I didn't go. Turns out I'd be the same age either way.
What does paying off the mortgages have to do with anything?
The idea is cashflow to live on right? If the deal is a good deal cashflow wise, it's a good deal in the other areas. You just need someone to take you by the hand and walk you through the steps. But you have to reach out, no one is going to do it for you. - Member since 2024 Ā· 24 posts Ā· 18 votes2y
Quote from @Allan C.:
@Sarah Ali having a paid off mortgage is not an appropriate goal. Your goal is to build equity, which can be done through several ways (cash flow, appreciation, principal paydown, tax shielding, etc).
Equity accumulation can be achieved in 10 years, 20 years, or greater. You donāt have to necessarily retire with debt-free assets. You can realistically sell your real estate portfolio after 10 years and have significantly more wealth - and at that point you can spend it all or invest in something less risky or more passive.
The reasons above is why folks will say itās never really too late to invest in real estate.
I really like how you explained this. I think I'd like to set my goal as having enough equity to sell off in 10 years to live off. How can I better define the steps necessary to achieve this? Now I really wish I had started even 5 years ago, lol. sigh, c'est la vie! - Member since 2024 Ā· 24 posts Ā· 18 votes2y
Quote from @Nathan Gesner:
No, you are not too old. I really got started in 2016 at age 46. I now have 33 doors and 135 storage units.
Even if you only bought one house and paid it off in 15 years, you would be age 65 with another $3,000 or more in monthly income. Every little bit helps if you choose/need to retire.
This is so inspiring. I'd love to hear more about how you got started, if you don't mind sharing. thank you - Member since 2024 Ā· 24 posts Ā· 18 votes2y
Quote from @Jim K.:
Quote from @Sarah Ali:
I'm one by one tackling my fears by reaching out to BP community!
Next fear: I'm late 40s and have no RE. Am I too old to get started? in 30 years when my mortgages will finally be paid off, I might be dead. What would a realistic plan for someone my age be? Ideally I would like to live off income from REI, as I cannot currently work in a traditional sense (ie, desk job). How can I get there and how long would it take?
I'm thinking to house hack or do a 2, 3 or 4 plex where I live in one of the units. But where I currently live (SF Bay Area) is so expensive. Could I find a place here? Should I look in other, cheaper parts of CA? Or OOS?OK, this is what I see here.
1. I cannot currently work in a traditional sense (ie, desk job). "Cannot" in this sentence as a red flag. There are very few people who pull off real estate investing without doing a LOT of desk jobs. And far less pleasant, safe, and clean jobs as well.
2. Yeah, you're in your late 40s. You're at a disadvantage. But if all your imagination is able to see happening in the next thirty years of real estate investing is that you will pay off your mortgages slowly and steadily, you're already dead in the water. I don't agree with @Bruce Woodruff about many things but he knows what he's talking about here.
3: "I would like to live off income from REI." You and every hopeful investor in America. The goal of getting out of whatever job you work at as quickly as possible to do REI full-time is typically a loser's dream in this business. Forget the promises of education and coaching you hear, it's going to take years and years before you can stand tall with your own, hard-won insights into this business. If you need handholding and spoonfeeding, hire a nanny. Don't come to real estate and expect to be mollycoddled. Anyone who promises you an easy time of anything in this business is without a doubt looking to take advantage of you.
4. Househacking is a great idea for a first investment. I do it, even though I got into it much later than I should have. Househacking in the Bay Area is a difficult proposition from what most people tell me.5. Clearly, not even for a second are you considering the idea of moving to a place where it's easier to make a start than the Bay Area. You will have to make a lot more significant and burdensome investment decisions than this one.
Conclusion.
You're in your late 40s. You're only going to get older. Time to get the lead out of your butt, one way or another. But don't expect to do what everyone else is doing and be an unqualified success in life. You have to take that leap into the unknown, and keep taking more after it, and you could ruin yourself. These are fears you have to live with in REI, and choices which have consequences that you have to make.
I appreciate your honest answer. It's not that I can't work (I can!), I'm just having a hard (read: impossible) time finding a job that will accommodate me due to disability. Fully employed and I could easily make 170K+ which would of course take a huge burden off me financially and otherwise. Unfortunately, companies have the upper hand and can hire a nondisabled person easily. It is what it is and I need to account. for this as part of my situation.
I'm also open to other areas and am researching those as well. The reason I'd still keep the bay area as a primary is because there are more jobs here (not that I can find one of them, lol).
My biggest advantage is that once I understand a system or process, I tend to find a niche or unique inisght that can allow me to have an advantage. I hope I can learn enough about RE to generate my own advantage that will get me into the right property. - Lender Ā· Sarver PA Ā· Member since 2024 Ā· 61 posts Ā· 16 votes2y
First of all, you are never too old to create generational wealth, With the roper game plan, anybody can become a millionaire with minimal, Amount of Effort And it all starts with networking.... You should find somebody who will show you the roads and not rip you off at the same time. Believe it or not the process, it's super simple
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