I was wondering if anyone here has any advice or suggestions on how I can help my 60 year old mother to start investing in real estate? She has about 28k saved up. She rents a one bed and one bath apartment for $960 and she earns just enough for her bills, groceries, and rent. Is there any way she can create cash-flow in 10 years that can supplement her rent and expenditures by using her $28k she has saved? Also is there a safe market where $28k can go a long way? I appreciate any advice or feedback. Thanks.
This plan is far too much risk for a 60 year old that barley has enough to get buy. Real estate investing is very high risk and not suitable for your mother to risk her savings. Her money needs to be in a secure low risk investment vehicle that she can access in the in the case of a emergency.
Do not get involved with your mothers investments unless she is mentially incapacitaed.
In 10 years she will have social security to supplement her rent.
Instead of trying to help your mother (with something I doubt she has asked you to help her with), why are you not thinking about yourself? If you project out your current financial situation, where will you be when you are 60?
If I were in your shoes, I would borrow that $28k from my mother, invest it in a performing asset, and pay her 6% interest for 30 years. It's win/win.
Where does she live? Have her talk to a loan officer to see how much she can borrow towards a house as that will ultimately determine if it is feasible or not. Her money will go further if she can get a place where she lives in one unit and rents another as she won't need as large of a down payment.
This plan is far too much risk for a 60 year old that barley has enough to get buy. Real estate investing is very high risk and not suitable for your mother to risk her savings. Her money needs to be in a secure low risk investment vehicle that she can access in the in the case of a emergency.
Do not get involved with your mothers investments unless she is mentially incapacitaed.
Actually I am worried about myself and my own family and I have already some rentals that are cash flowing very well. I am in the process of buying a couple more. I don’t like seeing her struggling while my family and I are doing well financially...So I would like to help her some way. I was thinking of maybe buying a condo or duplex next that she can rent from me for a very low price or live rent free when she is older.I am just trying to help my mother find a way to have her money work for her. So she’s can retire and have the little social security she will get and some extra money coming from her 28k saved. Her social security will not be enough. :/
@Kate Batals I think your idea of you buying a place where she can rent it is a good one. Perhaps you can find a house with an accessory unit in the back, so everything is on one level for her.