@Patrick Froehlich 52 and just now in the learning stages with the goal of taking our home equity and making our first purchase within 6 months. LOTS to learn, but it really is fascinating.
@Patrick Froehlich h started at 58 lot of cash in the bank making no money. 5 years later we have over 90 units in the Midwest running about a 25% Roi after financing it's never too late to start keeps life interesting in semi-retirement
@Mark Albini we have a couple of properties in Evansville and like to buy more you're not estate investor I'd like to talk to you about not only finding properties but also local banks that will deal with out-of-state investors. We have ones in Northern Indiana but not in your area
Age is but one factor. I’d imagine a 40 yo to have much higher income and better financial resources than a 25 yo!
@Patrick Froehlich I started investing in real estate when I was about 48yrs old, after a divorce. I am now 64 yrs old. I retired early from my pharmaceutical sales job at age 59yrs. And now I manage my 55 single family homes. I have not been looking to expand my holdings much in recent years either. Just managing what I have now is enough work for me.
Somewhere along the way I stopped borrowing bank money and began using only my own money. I know my trajectory could have been much faster if I had continued using OPM. But I wanted cashflow for my later years, and wanted to avoid debt. I currently own about 35 homes outright, with no mortgage. And I will have many more paid off in a few years.
To be clear, I bought very low end homes, as cheap as I could, and fixed them up. For the most part, this has been a good strategy.
But I am now “improving” my portfolio by selling some )I lease option them and sometimes a tenant/buyer will buy me out). I always use a 1031 Exchange. And I am buying better homes now in better neighborhoods. I look for a first time home buyer type home that is a 3/2/2 in a decent, family area. They don’t cash flow as well as the cheaper ones. But I am experimenting to see if they will turnover less frequently and, thusly result in about the same cashflow over the long run.
So I would certainly encourage you to start investing, at any age. Just remember, it’s not all about getting more doors. It’s about accomplishing the lifestyle you want, with as few or as many as are needed.
I will be 48 next month and started just a couple of years ago. I am sooo glad I did!!
It's honestly never too late. Just take the reigns and go. It's just as scary and exciting now as it would have been 10 years ago or 20 years ago. I find my life experience impacts me in a very positive way on this REI journey.
This makes me have hope with me starting and turning 41 at the end of the month.
@Patrick Froehlich Just started last year and I’m 42!
@Mark Albini this is very interesting point to own 3 cash flow properties with only 30 K cash invested. I would learn more on that:)
@Patrick Froehlich this is such a great question and as many of the other contributors have mentioned there are so many strengths you have as someone in your 40’s.
Most people I have worked with and myself included, started with buying 1 house in their first year and then either a second or third house in there second year.
It’s the 3rd and 4th years that’s the business really picks up and you can start leveraging your experience, equity and your established real estate connections to start scaling your business to attain financial freedom.
If you are willing to dedicate 5 years to this business and have patience while trusting the process and taking action you can retire within 3-5 years in most cases and if you choose to be less active you could still retire within 5-10 years which at 40 years old is still going to give you the opportunity to retire at 45-50 years old and get off that salary treadmill that so many people are saved to.
Great job on asking such an important question!
Cheers to your success!
This is a great thread. Just turned 40 and am starting this new journey. I'm also worried that I'm starting too late, with too little money to work with, and that there is too much competition. I'm looking to invest out of state with about 30K to work with. The out of state investing book is in the mail and I'm researching different markets.
Because I'm investing out of state, I'm looking for homes that are more or less turnkey. I don't have any illusions about taking on an out of state rehab!
I purchased an 1850 duplex in Saint Paul, and my daughter is a dentist, the duplex is in a great area.
so we are adding square footage and building a 4 studios in the upper level, the city of Saint Paul gave us 2 variances
We worked with the city to allowed 9 parking spaces
By dentist daughter is an amazing designer, and the city of Saint Paul likes our houses, check in airbnb 118 Douglas St in Saint Paul, to see our work
Thank you so much to everyone who posted on this thread. Never did I expect so much information would be shared when I first posted this. Maybe this could be the subject of @Brandon Turners next book. LOL.
I guess it was meant for me to read your response today, I wavier with myself at starting out at 64 years young Lol. I will keep moving forward -tell your dad - he just inspired me.
I wish. Im 50. I have a space used as a restaurant and the tennant has an option. Im nervous about the best way to save on taxes and reinvest this cash.