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 · 720 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
I started when I was forty and retired at 52. I just worked hard and put every dime my wife and I had into real estate. We did it the old fashion way by putting 25% down and financing the rest. The benefit is that you get to enjoy your money along the way with some amazing tax write offs. Most people bury their money in retirement plans but can't access it until their 59 1/2 and that's why they are handcuffed to their job. Sarah, take the plunge and at least buy one property!....Your future self will thank you.
- Investor · Hillsboro, OR · Member since 2016 · 310 posts · 153 votes2y
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?
Wait! Let's not throw the baby out with the bathwater! You can and should invest in real estate The last few years, the wind was really at your back. You could make some mistakes and come out okay with buyers willing to pay over asking price. But, please don't feel you missed out and can't ever do it.
Yes, mortgages bring some risk. Learn to understand the risk and how to minimize it. IMHO, Not having any investments is risky. The plan that the govt would take care of me in my old age would terrify me.
Sign up for a class on Personal Finance or Personal Investing at a local Jr College. Learn about stocks and bonds and real estate from someone that is not out to sell you anything and not going to steer you in a particular out come. Understand how they work together.
Since, you are not working full time ( ?), I'd look for a side gig working for other real estate investors. You mentioned understanding systems etc. Can you help someone set up systems to run there business from a distance ? Work with spread sheets ? Data mining? Finding off market leads? Also, look for realtors, property managers, co hosts... There is always a need for a responsible person who can work a few hours to meet a contractor, sit around and wait for an appliance delivery etc. It won't come anywhere near your salary but you can net work and make a couple bucks while networking.
Yes, you have a lot to learn but you can learn it. Once you have learned more, it won't be so scary.
- Investor · Hillsboro, OR · Member since 2016 · 310 posts · 153 votes2y
Quote from @Bruce Woodruff:
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"....
Thanks, Bruce. I absolutely needed to read that today.
- 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesOr as another wise man, Tom Petty, once said - "most things I worry about never happen anyway"
Quote from @Christie Gahan:
Quote from @Bruce Woodruff:
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"....
Thanks, Bruce. I absolutely needed to read that today.
- 2yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ 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. 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?Hey Sarah, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!
Jimmy Lieu, Red 1 Realty4.9122 Reviews Hello! It's great to hear that you're tackling your fears and reaching out to the BP community for support and advice. Regarding your question about whether you're too old to get started in real estate investing, the short answer is no, you're never too old to start building wealth through real estate.
Many successful real estate investors have started later in life and still achieved their financial goals. The key is to have a realistic plan and to understand that your timeline and strategies might be different from someone who is younger.
Given your interest in house hacking or investing in a multi-unit property, those can be excellent strategies for building wealth and generating passive income. However, in a high-cost area like the SF Bay Area, it might be challenging to find a property that meets your criteria.
One option could be to consider investing in other parts of California or out-of-state where property prices are more affordable. Conducting thorough research and potentially working with a local real estate agent who understands your investment goals can help you find the right market to invest in.
As for your timeline, it's important to be realistic about how long it might take to achieve your goals. Real estate investing is a long-term game, and it may take several years to build up a portfolio that generates enough income to support your lifestyle.
While it's natural to have concerns about starting real estate investing later in life, it's definitely possible to achieve your goals with the right plan and mindset. Take the time to educate yourself, network with other investors, and consider seeking guidance from a financial advisor or real estate mentor to help you develop a plan that works for you.
- Member since 2024 · 11 posts · 6 votes2y
You're never too old. One of my friends started at 54 years old and is now in his 70s a billionaire. So you can do it. Just commit and take action.
- 2yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
It's never too late to start investing in real estate, even if you're in your late 40s. First, look at your money situation and set goals for the long run. Learn about different ways to invest, and think about trying house hacking. Pay attention to where you buy, how you'll pay for it, and start with a small buy to grow your investments over time. Make a solid plan that covers how you'll buy properties, manage them, work out your money matters, plan your way out, and when you aim to be financially free. Meet and talk with local real estate investors, join groups that focus on investing, and get advice from those who've done it before. Keep focused and keep looking for chances that fit your investing plan. Don't let your age stop you. With smart planning, ongoing learning, and smart choices, you can create a strong portfolio that meets your money goals and gives you income for later.
Good luck!
NETWORTH BUILDERS5236 Reviews - Lender · 92703 · Member since 2022 · 326 posts · 538 votes2y
Hi Sarah,
Your never too late to get started in real estate investing. You just have to find the strategy that fits your lifestyle. Theres many ways to invest. If you can get a high income gig. That will help you reach your real estate investment journey much faster and give you more flexibility. There's many ways to get there. I recommend you do more research and maybe try each type of investing. Many people do begin with house hacking as its the lowest cost to get in. If your house hacking try to find properties that you can add value in order to make it cashflow like adding another unit or maybe adding rooms. Rent by the rooms to get the most rents. Hope this helps.
- 2yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Investing in real estate can pay off well, and you can start at any time in your life. First, look at your money situation, set clear aims, learn about how to invest, and think about trying house hacking. This means buying places with more than one living space and renting out the extra ones to get rental money. Think about where to buy - places with low-cost homes or in another state might be good. Look into how you can borrow money to buy, begin with something small and then grow bigger, and always think about the long game. It's wise to talk with a money expert or a person who knows a lot about real estate to make a full plan. Remember, how old you are doesn't matter – with smart planning, learning, and smart choices, you can build up a real estate collection that makes money and fits what you want in life.
Good luck!
NETWORTH BUILDERS5236 Reviews - 2yRaju BalakrishnanPro MemberRental Property Investor · Santa Clara, CA · Member since 2016 · 223 posts · 112 votes
The best time to get started was when we were younger (or yesterday), second best is today! There are so many investors started even late than you and are fabulously rich!
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