Am I too old to get started? What is a realistic plan for me?
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Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 715 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
- Thank you for this insight. I wasn't so blessed by the tech gods, but luckily I am also not influenced by affluence. I hope to continue to live modestly, but due to hardship, need to find other ways to generate income. That being said I am a fast learner and am ready to give it all. I do not know yet if I'll be good at it (how can anyone know unless they try).
Quote from @Robert C.:
@Sarah Ali Just something I’ve been thinking about lately:
I also live in the Bay Area and this is a place where I know people “retiring” in their 40’s 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 you’ve gained over the years. For example, you may already know people who are crushing real estate and you’ve 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 it’s going to be fun/interesting or you feel you will be good at it. Why waste the next decade or more otherwise.
I don't know any one in the industry - yet. Would you be interested in meeting? - 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
Quote from @Sarah Ali:
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.Paying off a mortgage can be one goal, but it's probably not even a goal for a whole lot of investors. Reimagine the way that you look at debt. Make it a good thing.
Here's homework - write down 5 ways that debt is positive and can help you.
Having a free-and-clear investment property is not even always considered a great thing because it can attract the sharks, lawyers who see it as a huge dollar sign.... better to keep it mortgaged so it doesn't look so attractive.
So yes you could look at it as shuffling around numbers, but your ultimate goal (as you stated) is to live off of your investment properties. Do you care how you get there as long as you can service your debt?
What if I told you that your mortgage payments would be $20k a mo, would you not want to do this? What if I added that you would have $50k mo income? Makes a difference, eh?
Seriously, if the concept of mortgage payments is going to bother you, REI is probably not where you should be headed.
- Lender · Sarver PA · Member since 2024 · 61 posts · 16 votes2y
Absolutely 412-709-2506
Quote from @Bruce Woodruff:
Quote from @Sarah Ali:
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.Paying off a mortgage can be one goal, but it's probably not even a goal for a whole lot of investors. Reimagine the way that you look at debt. Make it a good thing.
Here's homework - write down 5 ways that debt is positive and can help you.
Having a free-and-clear investment property is not even always considered a great thing because it can attract the sharks, lawyers who see it as a huge dollar sign.... better to keep it mortgaged so it doesn't look so attractive.
So yes you could look at it as shuffling around numbers, but your ultimate goal (as you stated) is to live off of your investment properties. Do you care how you get there as long as you can service your debt?
What if I told you that your mortgage payments would be $20k a mo, would you not want to do this? What if I added that you would have $50k mo income? Makes a difference, eh?
Seriously, if the concept of mortgage payments is going to bother you, REI is probably not where you should be headed.
Thank you, that exercise was very helpful. I understand now how debt can be "good". what do you mean by a paid off investment can "attract sharks and lawyers who see it as a huge dollar sign"? Apologies if my ?s are naive, I am a total newbie.- 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesBelieve it or not, we have discussed here on the Forum how there are tenants who are not good people. professional scammers. They will find out that you owe nothing on your rental and fake a fall (or ?), because now you have a lot of equity for them to go after. These types are less likely to even bother if you carry a mortgage, even a smaller one.
Quote from @Sarah Ali:
Quote from @Bruce Woodruff:
Believe it or not, we have discussed here on the Forum how there are tenants who are not good people. professional scammers. They will find out that you owe nothing on your rental and fake a fall (or ?), because now you have a lot of equity for them to go after. These types are less likely to even bother if you carry a mortgage, even a smaller one.Quote from @Sarah Ali:
Wow, I can't even believe that. I do sometimes wonder if I may be too naive to invest in real estate because of things like this.I do not view you as too old, but I question your timing. RE performed outstanding from 2011 to 2021. Appreciation was great, cash flow was great, few areas had cracked down on STRs, etc.
interest rates have more than doubled since the end of 2021. Prices have not fallen due to low inventory due to how many owners have loans far below current rates. Low supply leads to rising prices. So we have all time high in RE prices and interest rates near highest in many years. Combined this leads to high cost of leveraged purchases.
In virtually all large city markets it is currently cheaper to rent than to own. This implies in those markets the average residential investment purchase is cash flow negative.
In addition, active residential RE is not passive even if using a PM. It requires more effort/work to be successful than most non experienced investors realize.
Normally this may be where I suggest passive RE options such as a limited partner in a syndication, but in the last couple of years many syndications are struggling.. So similar to golden era of active RE having possibly passed due to higher interest rates, I fear it may also be true for syndications (I am in one syndication that I fear an equity loss which would be my first time if this comes to pass).
Note RE has been an outstanding investment in recent times, but it will not always be the best investment option. In the case of the OP, they would be entering a tough RE market with virtually no knowledge including no understanding of the effort required and the risks.
I recommend people enter RE at this time only if it is a passion and they are extremely motivated and hard working. These people can succeed even in a tough RE market. There will be many people who entered RE in 2023 that fail in large part because they did not have a good understanding of the underwriting, thought RE investing was more passive than it is, expected interest rates to drop in the short term, and/or over leveraged.
RE investing was easy a couple years ago. The cash flow was far better due to lower interest rates and the RE appreciation was outstanding. It is different today.By the way I have not purchased since Dec 2021 (purchased $4m that month) because we do mostly BRRRR (and no flips) and my underwriting shows after refinancing that I would be large negative cash flow.
Good luck
- 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
Quote from @Sarah Ali:
Quote from @Bruce Woodruff:
Believe it or not, we have discussed here on the Forum how there are tenants who are not good people. professional scammers. They will find out that you owe nothing on your rental and fake a fall (or ?), because now you have a lot of equity for them to go after. These types are less likely to even bother if you carry a mortgage, even a smaller one.Quote from @Sarah Ali:
Wow, I can't even believe that. I do sometimes wonder if I may be too naive to invest in real estate because of things like this.You will definitely have to hire a Property Manager because of your inexperience.
And then there remains the all-important question - must you stay in California? Possibly the most tenant friendly state in the USA. You will get eaten alive. And then there is the new squatter phenomenon.
Yet if you invest OOS, you'll need not only a PM, but must hire out everything, like repairs, cleaning, etc and can get taken advantage of easily.
I would almost say if you want to be a successful RE investor, you'll have to move. I don't want to be a bummer, but that's how I'm feeling at this point.....
- Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes2y
Quote from @Sarah Ali:
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.Other people's goals may not be your goals. You need to decide what you ultimately are trying to achieve. If your goal is to generate $10k/mth in net income so that you can live off of that and to not have that stress of a mortgage "hanging on my neck" then that can be your goal. Just because most people on here like to refi till they die, and keep buying more and more does not mean that it is what everyone or you should do. There are plenty of people that buy enough houses to meet their goals and then pay them off. Or they might buy a few extra properties and then after equity builds up they sell those extra ones to accelerate paying those others off. Not everyone wants to have 100 doors to have to work. Also while the idea that you don't have any equity in a house because you keep refi'ing it and that keeps the lawyers away is foolish thinking. I have heard this before and while yes if a person has no money then they are less likely to be sued. However if you have multiple houses most people don't have them all in different LLCs and if you have $50k in equity built up in each of them they are still going to go after your insurance money and whatever equity they can get. They may also be content to throw a lien on them all so that as equity builds up you will not be able to refi without paying them nor sell without paying them. You are better to pay for a better insurance policy, do things right to limit your risk, (LLCs, fix things that are broken or hazards) and to treat your tenants right so that they don't want to sue you. To me the bigger risk, and more highly likely to happen, is to be heavily leveraged and then something happens such as a big downturn or covid and you don't get rent for 6 months or more and you can't pay your mortgages and you then lose the property to the bank. Again there is more than one way to play the RE game and win.
Quote from @Dan H.:
I do not view you as too old, but I question your timing. RE performed outstanding from 2011 to 2021. Appreciation was great, cash flow was great, few areas had cracked down on STRs, etc.
interest rates have more than doubled since the end of 2021. Prices have not fallen due to low inventory due to how many owners have loans far below current rates. Low supply leads to rising prices. So we have all time high in RE prices and interest rates near highest in many years. Combined this leads to high cost of leveraged purchases.
In virtually all large city markets it is currently cheaper to rent than to own. This implies in those markets the average residential investment purchase is cash flow negative.
In addition, active residential RE is not passive even if using a PM. It requires more effort/work to be successful than most non experienced investors realize.
Normally this may be where I suggest passive RE options such as a limited partner in a syndication, but in the last couple of years many syndications are struggling.. So similar to golden era of active RE having possibly passed due to higher interest rates, I fear it may also be true for syndications (I am in one syndication that I fear an equity loss which would be my first time if this comes to pass).
Note RE has been an outstanding investment in recent times, but it will not always be the best investment option. In the case of the OP, they would be entering a tough RE market with virtually no knowledge including no understanding of the effort required and the risks.
I recommend people enter RE at this time only if it is a passion and they are extremely motivated and hard working. These people can succeed even in a tough RE market. There will be many people who entered RE in 2023 that fail in large part because they did not have a good understanding of the underwriting, thought RE investing was more passive than it is, expected interest rates to drop in the short term, and/or over leveraged.
RE investing was easy a couple years ago. The cash flow was far better due to lower interest rates and the RE appreciation was outstanding. It is different today.By the way I have not purchased since Dec 2021 (purchased $4m that month) because we do mostly BRRRR (and no flips) and my underwriting shows after refinancing that I would be large negative cash flow.
Good luck
I know, I missed the bus... If RE is no longer a good option, do you have any other suggestions?
Quote from @Sarah Ali:
Quote from @Dan H.:
I do not view you as too old, but I question your timing. RE performed outstanding from 2011 to 2021. Appreciation was great, cash flow was great, few areas had cracked down on STRs, etc.
interest rates have more than doubled since the end of 2021. Prices have not fallen due to low inventory due to how many owners have loans far below current rates. Low supply leads to rising prices. So we have all time high in RE prices and interest rates near highest in many years. Combined this leads to high cost of leveraged purchases.
In virtually all large city markets it is currently cheaper to rent than to own. This implies in those markets the average residential investment purchase is cash flow negative.
In addition, active residential RE is not passive even if using a PM. It requires more effort/work to be successful than most non experienced investors realize.
Normally this may be where I suggest passive RE options such as a limited partner in a syndication, but in the last couple of years many syndications are struggling.. So similar to golden era of active RE having possibly passed due to higher interest rates, I fear it may also be true for syndications (I am in one syndication that I fear an equity loss which would be my first time if this comes to pass).
Note RE has been an outstanding investment in recent times, but it will not always be the best investment option. In the case of the OP, they would be entering a tough RE market with virtually no knowledge including no understanding of the effort required and the risks.
I recommend people enter RE at this time only if it is a passion and they are extremely motivated and hard working. These people can succeed even in a tough RE market. There will be many people who entered RE in 2023 that fail in large part because they did not have a good understanding of the underwriting, thought RE investing was more passive than it is, expected interest rates to drop in the short term, and/or over leveraged.
RE investing was easy a couple years ago. The cash flow was far better due to lower interest rates and the RE appreciation was outstanding. It is different today.By the way I have not purchased since Dec 2021 (purchased $4m that month) because we do mostly BRRRR (and no flips) and my underwriting shows after refinancing that I would be large negative cash flow.
Good luck
I know, I missed the bus... If RE is no longer a good option, do you have any other suggestions?
Hey Sarah, if you're going to give up THAT easily, when random strangers on the interwebs just have to quote a few stats and numbers at you to make you fold up your tent and wander off into the night...well, the first thing you need to work on is telling anyone who doubts your resolve to go eat their dinner out of a dumpster.
Quote from @Sarah Ali:
Quote from @Dan H.:
I do not view you as too old, but I question your timing. RE performed outstanding from 2011 to 2021. Appreciation was great, cash flow was great, few areas had cracked down on STRs, etc.
interest rates have more than doubled since the end of 2021. Prices have not fallen due to low inventory due to how many owners have loans far below current rates. Low supply leads to rising prices. So we have all time high in RE prices and interest rates near highest in many years. Combined this leads to high cost of leveraged purchases.
In virtually all large city markets it is currently cheaper to rent than to own. This implies in those markets the average residential investment purchase is cash flow negative.
In addition, active residential RE is not passive even if using a PM. It requires more effort/work to be successful than most non experienced investors realize.
Normally this may be where I suggest passive RE options such as a limited partner in a syndication, but in the last couple of years many syndications are struggling.. So similar to golden era of active RE having possibly passed due to higher interest rates, I fear it may also be true for syndications (I am in one syndication that I fear an equity loss which would be my first time if this comes to pass).
Note RE has been an outstanding investment in recent times, but it will not always be the best investment option. In the case of the OP, they would be entering a tough RE market with virtually no knowledge including no understanding of the effort required and the risks.
I recommend people enter RE at this time only if it is a passion and they are extremely motivated and hard working. These people can succeed even in a tough RE market. There will be many people who entered RE in 2023 that fail in large part because they did not have a good understanding of the underwriting, thought RE investing was more passive than it is, expected interest rates to drop in the short term, and/or over leveraged.
RE investing was easy a couple years ago. The cash flow was far better due to lower interest rates and the RE appreciation was outstanding. It is different today.By the way I have not purchased since Dec 2021 (purchased $4m that month) because we do mostly BRRRR (and no flips) and my underwriting shows after refinancing that I would be large negative cash flow.
Good luck
I know, I missed the bus... If RE is no longer a good option, do you have any other suggestions?
Because active residential RE is not passive, I need RE to return far in excess of 10% lifetime return of S&P 500. Because I have reached a certain level of success, my time is worth more than a few extra percent on the return. I need to have my underwriting show returns in excess of 20% to justify the effort/risk of residential RE.
Is there a reason S&P or other index funds does not work for you? If you want higher return with higher risk then investigate being a limited partner in syndications. RE syndications were almost cannot miss until a couple of years ago (regularly returning near 20% or higher), but that is no longer the case. There are various books on the subject; do your due diligence before choosing a syndication.
Other near passive RE options include NNN and REITS.
My preferred money market is getting ~5.5% and virtually zero risk. CDs are higher than in years. Notes and private money are other options and there are books on these subjects.
What it typically amounts to is risk, reward, and effort. Because of this no one can decide for you the best option for you.
Good luck
Quote from @Jim K.:
Quote from @Sarah Ali:
Quote from @Dan H.:
I do not view you as too old, but I question your timing. RE performed outstanding from 2011 to 2021. Appreciation was great, cash flow was great, few areas had cracked down on STRs, etc.
interest rates have more than doubled since the end of 2021. Prices have not fallen due to low inventory due to how many owners have loans far below current rates. Low supply leads to rising prices. So we have all time high in RE prices and interest rates near highest in many years. Combined this leads to high cost of leveraged purchases.
In virtually all large city markets it is currently cheaper to rent than to own. This implies in those markets the average residential investment purchase is cash flow negative.
In addition, active residential RE is not passive even if using a PM. It requires more effort/work to be successful than most non experienced investors realize.
Normally this may be where I suggest passive RE options such as a limited partner in a syndication, but in the last couple of years many syndications are struggling.. So similar to golden era of active RE having possibly passed due to higher interest rates, I fear it may also be true for syndications (I am in one syndication that I fear an equity loss which would be my first time if this comes to pass).
Note RE has been an outstanding investment in recent times, but it will not always be the best investment option. In the case of the OP, they would be entering a tough RE market with virtually no knowledge including no understanding of the effort required and the risks.
I recommend people enter RE at this time only if it is a passion and they are extremely motivated and hard working. These people can succeed even in a tough RE market. There will be many people who entered RE in 2023 that fail in large part because they did not have a good understanding of the underwriting, thought RE investing was more passive than it is, expected interest rates to drop in the short term, and/or over leveraged.
RE investing was easy a couple years ago. The cash flow was far better due to lower interest rates and the RE appreciation was outstanding. It is different today.By the way I have not purchased since Dec 2021 (purchased $4m that month) because we do mostly BRRRR (and no flips) and my underwriting shows after refinancing that I would be large negative cash flow.
Good luck
I know, I missed the bus... If RE is no longer a good option, do you have any other suggestions?
Hey Sarah, if you're going to give up THAT easily, when random strangers on the interwebs just have to quote a few stats and numbers at you to make you fold up your tent and wander off into the night...well, the first thing you need to work on is telling anyone who doubts your resolve to go eat their dinner out of a dumpster.
haha @Jim K.thank you for the good laugh! I'm not giving up. I do acknowledge I have a hard road ahead and missed the free ride part of the trip. Things probably won't be this easy again in my lifetime. I'm ready and willing to work harder to achieve my goals, but not gonna lie, I have to accept the probability it may not pan out, too.
I appreciate and welcome all perspectives, even (especially?) if they are contrary, so I can consider all perspectives!These are words I have learned to live by, and I offer them to you with my best wishes for your future actions.
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”
Theodore Roosevelt- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes2y
Quote from @Sarah Ali:
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.I know how you feel. I was raised in fear of debt, my parents went bankrupt with their flower business when I was little. It really traumatized me. When I was about to buy a condo after college, the idea of 80k in debt terrified me, so I kept renting.
At some point I realized I had to work on my mental issues. It is a slow growth process to get comfortable debt and with responsibility. Eventually, I bought a duplex. I used to check up on my first rental every other week to make sure, IDK, it was still there I guess. And the mortgage was small and I told myself I could swing it without tenants.
Over time your mindset changes from "I have debt" to "my buildings have debt". The obvious difference is that your tenants pay for it. 15 years later we have a lot of debt and guess what, I sleep really well.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes2y
Quote from @Sarah Ali:
Short version. I bought a cheap townhome in 2004 and sold it in 2012 to buy an office for my real estate business.
In 2016 I started listening to more BP podcasts and caught the bug. I scraped together enough to buy a really cheap hoarder house that I found off market. Then I kept saving and buying more properties that I found off-market. I found the storage facility by cold-calling everyone in town until I found one willing to sell. Every dime earned from my investments is put right back into buying more investments.
Keep in mind, the market was much better then. When I cold-called to find a storage facility, nobody was doing that in my market. Now I get cold calls from storage investors at least once a week.
I haven't bought anything since late 2022 because the market prices are too high, rates are too high, nothing makes sense, and there's too much competition.
If I were just starting, I would get one house. Start slow, learn as you go, and be prepared for when things turn around and the market is more favorable for investors.
The DIY Landlord Book4.7247 Reviews - 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesDon't have this defeatist attitude, Sarah.. The RE bus comes back around regularly...it is on it's way right now!
Quote from @Sarah Ali:
- 2yLawrence BriggsPro MemberInvestor · Austin, TX · Member since 2020 · 367 posts · 377 votes
It's never too early OR too late to start! @Sarah Ali -- you GOT this! Welcome to the community! Wishing you tons of success, and please keep us posted on your journey!
- 2yEvan HoppleBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
@Sarah Ali
I've worked with folks in their 80s still buying RE. The perks of investing in RE come much sooner before you're even close to paying off your mortgage, in the form of cashflow, appreciation and tax advantages.
Investing out of state can be a good option if your local market isn't a good fit. Pick a market that fits your investing goals, then build your team (investor friendly agent, lender, PM, contractors, etc). If you're looking for a market that has landlord friendly laws and high growth potential, I would go with Columbus, OH. The future is bright for the area with recent additions to the tech sector (google, intel, amazon, honda, and many start ups). Plans to were announced last month to invest $2B into the cities airport in anticipation of the population/business travel growth.
Reafco Real Estate - Investor · Alpharetta, GA · Member since 2022 · 20 posts · 13 votes2y
I am now 58 and bought my first investment at age 54. Now, I have 5 properties with 8 rentals, all positive cash flowing. It's been a great learning journey. I am 100% sure my retirement portfolio has grown dramatically since starting my journey. I wish I started in my 40s because could have quit my corporate job already.
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?Buy props OOS like 100s of others do from CA, with 10% or better net caps, based on cash purchase. I have seen SF for about 110k, with 1300 in rent. I live OOS and closed last week on a 3//1 all in 70k with 1300 SEC 8 tenant.
Good luck
Good luck
- Lender · Sarver PA · Member since 2024 · 61 posts · 16 votes2yThat's such a polite way of saying, you do you? I Do me and we'll see who gets the finish line first LOL!!!
Quote from @Jim K.:
These are words I have learned to live by, and I offer them to you with my best wishes for your future actions.
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”
Theodore Roosevelt Quote from @Jeremiah Phipps:
That's such a polite way of saying, you do you? I Do me and we'll see who gets the finish line first LOL!!!Quote from @Jim K.:
These are words I have learned to live by, and I offer them to you with my best wishes for your future actions.
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”
Theodore RooseveltWow. That's not at all what I'm about when talking to people who are asking for help, Jeremiah.
I'm trying to tell the OP that ultimately, the critics are just critics, and when you're out there doing things and they're not, they don't matter.
I'm trying to tell the OP that failure is a lot more useful than not trying.
I've met a LOT of people who don't try because they're terrified of failure.Quote from @Sarah Ali:
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.Personal debt still makes me very nervous. Debt for a cash flowing investment property in a good neighborhood with a minimum 25% equity stake doesn't make me nervous for the following reasons: the debt makes the property less of a target for lawsuit scammers, re-fi loan proceeds are tax free money for me to spend, with a 20 year loan a decent amount of debt is retired every 5-7, and market appreciation is icing on the cake.
- 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
Quote from @Jim K.:
I'm trying to tell the OP that failure is a lot more useful than not trying.
I've met a LOT of people who don't try because they're terrified of failure.Yessir. One of my favorite quotes is from a Civil War General (Stonewall Jackson) "Never take counsel of your fears"....
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