Perth, WA · Member since 2016 · 16 posts · 7 votes
G'day from downunder,
Okay, so i'm 55... There, i said it.
I've worked for myself pretty much ever since i left school, i'm now a management consultant and keynote speaker in Western Australia, and for the past couple of decades i've run a fairly successful business. But now, i'm looking for something else to get excited about.
my question: is it foolish to start in this game in your mid fifties? Do you know any successful investors that began later in life (most of the podcasts guests I've seen are young or were young when they started)? If so, it'd be great to connect so i can hear the pro and cons.
Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
10y
Terry Power Are you kidding? Real estate investing rocks for retirees! I started at 59 and am set on a course to have 1,000 units by 2020. Real estate investing is the best way I have found to achieve the retirement we've always dreamed about. I talk to seniors all the time who are also using real estate investing to generate cash flow now for their retirement and for a legacy for their families. This is a great time to start. PM me if you have any questions.
Investor · Cincinnati, OH · Member since 2014 · 538 posts · 432 votes
10y
Hello Terry,
Congrats on deciding to enter the investment world!
Yes, you most certainly can/should pursue investing even at age 55.
While you're right about not starting as young as some folks, you also have a ton of benefits by being older that will serve you very well in the investment world. Less family planning to get in the way, more stable income from career/business, more level headed decisions, the benefit of time and wisdom that a 20yr old simply won't have, and many more great attributes.
I know of several investors local to me in Ohio that started at 45-55+ and used the above positive traits I mention to amass 20-30-50+ rental properties quickly and be fully retired within 3-5 years from the cashflow. Much harder to do when you're 20 with no track record and a bank doesn't want to lend to you.
I know another that did the same after being a GC for many years and at age 61 is a low volume rehab/flipper. While I do large volumes, he selectively chooses to only do 5-10/yr but he ensures he makes $50K+ on each one and earns a very nice income for himself for being in Ohio.
And let's face it, if you're even reasonably healthy you likely have a good solid 30+ years left to live and enjoy this game of RE, so if it's something that strikes your fancy then learn all you can and make it happen!
Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
10y
Terry Power Welcome to BP. I started at age 53. I turn 63 in October I can only tell you I am worth waaay more today than if I wouldn't have done it. How will it turn out I can't say. I do know this once you learn the ropes you can make a very respectable Amnt of money. RR
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
@Terry Power ...you have an advantage! Lots of life experience. Look around. We see 60 and 70 year old people get their college education. We see people in that age bracket get married. Me? I am taking up guitar (I am 61). Yes, my wife laughs...but she won't be laughing when I am lead guitarist for a heavy metal band doing a world tour:)
So...you want to invest? GO FOR IT. You have found a great place to network and learn.
Grove City, OH · Member since 2016 · 167 posts · 66 votes
10y
it's never too late for passive income, especially with retirement not far off. I have family a few hours outside of Perth and they say the Australian RE market is hot hot hot so it seems your in the right place. Would you invest there or the US?
Vendor · Melbourne, Victoria · Member since 2016 · 56 posts · 19 votes
10y
Hi there WA fellow from Down under it is never late to start something exciting like property.
All I can say is join the club of 50&over from Down under VIC
Real Estate Investor · Sunny Isles Beach, FL · Member since 2013 · 788 posts · 333 votes
10y
@Terry Power There's no age limit on successful investors, I believe you can do it. Sure you might be starting relatively late to the game, but it doesn't take 20-years to build your business. Not sure how you will proceed, but for us the day-to-day is like this: track marketing, answer phones, follow-up on phones, work deals. None of that requires any specific age! Real estate investing is not easy, but it has nothing to do with age. You might even connect more with older home sellers.
It only impacts your potential to grow your wealth but does not limit you becoming involved. Real estate investing is a slow growth system so when you decide to get out your wealth will be less than if you start earlier.
At your age I would concentrate on positive cash flow as opposed to equity growth.
Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
10y
Terry Power Are you kidding? Real estate investing rocks for retirees! I started at 59 and am set on a course to have 1,000 units by 2020. Real estate investing is the best way I have found to achieve the retirement we've always dreamed about. I talk to seniors all the time who are also using real estate investing to generate cash flow now for their retirement and for a legacy for their families. This is a great time to start. PM me if you have any questions.
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
10y
There are pros and cons and it may affect your strategy a bit in my view:
Pros:
You likely have more capital to invest than you would have if in your 20s.
You have a wealth of experience in Business, etc. Even if it is not directly RE related, I think you will find much of it transferable.
You are likely clearer on who you are, what your values are, what you are looking for, what you don't want to do, etc. than a younger version of you. This will help you to narrow in on strategy.
Cons:
You will have a shorter investment horizon. Less time to build up your investments and less time to recover if/when mistakes are made.
You won't be able to swing a hammer like you could in your 20s, so you may need to be more hands off in certain aspects, but never totally hands off.
Strategy:
Because of the pros and cons above, you may wish to focus more on cash flow than appreciation, especially if you will need this cash flow to live off of. Realize that you will normally trade one for the other. I'm an appreciation investor myself, but there will be a point in time where I too will need to change gears. Since you have less time to recover from any mistakes, I would also be more conservative with leverage (mortgage debt), at least in the beginning, which will keep your risks lower but your potential returns lower too. Take the above with a grain of salt and as a mental framework to consider, since I do not know your full situation, personality, or skill sets.
Santa Rosa, CA · Member since 2016 · 18 posts · 7 votes
10y
Terry Power our stories can be swapped. I'm just wrapping up a sixteen year career in management consulting with one of the Big 4. This was my 3rd career and now looking forward to starting my next career in real estate investing at 53.
There are some great points in the responses about the length of time and strategies to build up wealth when starting at this point that I am considering as well. Also, great points about the experiences, knowledge and maturity that those of us "of a certain age" bring to this new career. I am finding these to be extremely beneficial very early on, especially when talking with prospective team members such as financing partners.
I'm loving it and know this was the absolute right decision for me. I hope you find it the same for you.
Good luck!
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
10y
You're never too old to start! Remember Colonel Sanders? I believe he was even older than you when he got started. Good luck on your new real estate investing venture!