Am I too late to the game?

Question

I could use some honest advice. I'm 54 with a W-2 job at a non-profit organization and I honestly love my job and people I work with and for. I've spent the greater part of the past 5 years learning and educating myself in all things RE and investment. I've read all the books and listen to podcasts, as well as constantly scouring all the listings. I joined my local REI group, NCREIA a few months ago and it's been helpful in my RE education and caché. I have a fairly good idea of a strategy and ideal locations.

Here's my issue or at least the biggest. My husband is highly risk-averse. My risk tolerance is a little more moderate. He is also looking to retire in 5 years and has no desire to take on any debt - good or bad, nor does he have any desire to be a landlord or property manager. He is onboard as long as any investments we might entertain is financially feasible and that our assets might be protected from lawsuits. I want to be able to figure out how I might be able to invest in RE on my own - using my own income or LLC. I'm not at all deterred. I'm an AF veteran and so I have VA entitlement. I have great credit and a modest savings. I would, however, prefer to use OPM if that's still a thing.

If it's helpful, here's my why's. RE has been so fun and exciting to learn and follow even though I haven't even dipped my toe in! I want to be able to use all the knowledge I've garnered from my reading and research, podcasts, blogs, and relationships. I'm not ready to retire but when I am, I would love to be able to semi-retire/transition to RE investment and be able to add this as a means of wealth generation for our 2 kids. Additionally, it would be a way to help provide housing for people.

Thanks in advance for anyone willing to chime in.

Ned Carey · Answer

@Janet Anthony generally investments considered "Risky" like stocks and Real estate, tend to be risky short run  but less risky long run. Keep in mind once you retire you may stilll live another 30 years. That makes you a long term investor.

Regarding Real estate and risk, most people will disagree with m y next statement But   .   .   .  Real estate is the riskiest investment you can make.  The really important thing to understand about real estate is you get to control your risk. The more knowledge you have the less risky it is.  Follow people like @Jay Hinrichs, @Don Konipol, @Joe Villeneuve, @Chris Seveney and many other here you will learn about the risks and how to avoid them.

Joe Villeneuve · Answer

You are never too late...for anything in life.  If you say that about anything (unless someone marries your true love), you are admitting defeat before you even start to play.

This reminds me of the age old question, "If you could change anything in your past, what would if be?".  My answer is always the same,..."nothing".  That's not because there may have been events that happened I wish hadn't happened, or things I could have done or did do, that might have changed the next event.  Great, things happened differently.  All that means is the next event changed.  That doesn't tell you about the new domino effect from that point forward.  All you know, is where you are now, and where you want to be down the road.  So, as @Ned Carey said as articulately above, Learn how to control your future through continuous education, and if there are opportunities you may have missed (not really missed, you just weren't there) in the past, just use your education to make them happen in the future.

Learn from those past events (history), and repeat them for yourself.

Andrew Syrios · Answer

With regards to age, absolutely not. My dad didn't really get started until he was 45 and within 10 years, he had a very successful real estate company. It doesn't sound like you're trying to build an empire, so absolutely it's not too late. Although that being said, it is a very tricky market with rates high, prices high and inventory rising.

Janet Anthony · Answer

Wow! Thank you all for the wisdom and encouragement I needed to hear! I truly appreciate it. @Todd Anderson you're right. I did overlook that strategy as one to consider and simply because my inexperienced ears hear "more out of pocket" but I'll definitely do the research. Thanks!My next step will be to find the investment that will work and then diving in...hopefully with my husband onboard by then.

Nicholas L. · Answer

@Janet Anthony

it's not too late, BUT one thing to be aware of is that your first 5-10 years are likely to be a period of INvesting, IE you spending money on your real estate.  there's sometimes an idea that you're going to purchase a property and start getting "cash flow" in month 1.  this is a myth.  it typically takes years to pay off just the transaction costs on the purchase.

and as @Joe Villeneuve likes to remind us, if you shell out a huge down payment, that money is just sitting there until it's paid back somehow.  yes, it's part of your net worth but it can't be used to invest in other things or buy groceries without several other very expensive steps.

just some things to think about.  only you can decide whether your financial situation permits you to do this and if being hands-on is something you're interested in.

Bill Le · Answer

Hey Janet, we're based in Raleigh too, and I just wanted to say that you're definitely not alone. A lot of our clients are around your age and have recently bought their first rental or even converted their current home into one. There’s no such thing as being too late to start.

Owning a rental is definitely active and comes with some risk, but it can be incredibly rewarding and a real path to building long-term wealth. Given your situation, a slightly more conservative approach makes a lot of sense—especially with retirement on the horizon and a more risk-averse partner.

One thing to know about Raleigh is that we do see a strong pool of tenants, especially from the tech world. These renters are usually well-paid and take good care of the properties. The only thing I’d flag is that rent prices have leveled off here over the past couple of years after the big run-up during COVID. So just make sure your numbers work from day one and don’t rely too heavily on appreciation or future rent increases just yet. We are seeing rises again but I don't want to oversell it.

Keep digging into the research and leaning into your local REI group. It sounds like you’re doing all the right things—just one step at a time.

Ezekiel Trevino · Answer

Start looking and crunch some numbers. Make some friends with real estate agents, investors, wholesalers, property managers, tax pro, and a lawyer.

Jeff Roth · Answer

Hi Janet from Raleigh, North Carolina-

You are 54 and love your work at a non-profit and are ready to start investing in real estate.

Your husband is risk-averse and looking to retire in 5 years.

He's good with investing as long as your assets are protected from lawsuits and the investing is done thoughtfully and he is not involved in the property management.

Recommend you look in an area that cashflows well at a reasonable price ($135,000 plus/minus) ideally starting with a duplex so you always have a rent check coming in and some work that could be done when the units become vacant to add value and increase rents. Then, plan to refinance in a year or two and use the equity to go buy the next one.

You certainly want to have an excellent property manager to make your investment as passive as possible, investor insurance coverage from a knowledgable agent, and asset protection in place with an LLC and asset protection attorney.

This is all doable in many markets in Michigan.

To Your Success!

Am I too late to the game?

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