Starting too late in life?

Starting too late in life?

Detroit, MI · Member since 2017 · 20 posts · 18 votes

Hello community. I think this is my first post. *Insert long winded personal story here*, and now I'm 49, chronically ill and exhausted, but finally in a position where, if I can figure it out, I think I could start some real estate investing. I'm not afraid of hard work, it's just that my body now dictates how much I can do, so I can't commit to the hustle that others can. But I don't want that to stop me. There has to be a way.

I don't have a lot of money to start with, and it took a long time to get into the position we're in, with excellent credit scores and money in the bank so, while I'm not naive that it takes money to make money, I'm not willing to risk our home, credit scores, or empty our savings. At our age we can't be as risky. However, I know I can do this somehow. I know I can do it without being too risky. I'm trying to figure it out. I'm watching, reading, researching, doing my own comps for practice, etc. But I find myself in a strange position. That of actually being able to qualify for credit that I couldn't before and having a little money to use. Very little, about 10k.

Suddenly, a house we've been looking at is possibly within our reach, but I'd need a 203k since we'd be living in it, not flipping it. Although I would flip it if we didn't want to own it (and I had the money), it's an incredible deal. I digress. This same day that I made an appointment to go inspect more closely and start the pre-approval process, I see that two FSBO homes have been put up in our area, with Land Contract options. Again, too good to pass up, from an investment standpoint. I'd be so stupid to not get them both if I could figure out a way, pending further inspection of course.

I'm not a greedy person, I'm satisfied with 'enough'. However, I need to have a way to do my part in bringing in income, my husband may need back surgery soon. AND we really want this other house, this kind of opportunity might not happen again for us for some time. In that area, almost certainly not. BUT, those two smaller, local properties would be good investments. I would be a fool to pass any of these homes up if I don't have to. I could use some guidance or suggestions on what to do, what options I might have to have my cake and eat it too, so to speak. Or to not do one or the other. We do have the option of renting out our current house if we do end up moving, which would increase our monthly income by about $350, or we could just sell it, which would reasonable let us walk away with $25k. Assuming the market doesn't crash before then, which I'm hearing a lot of warnings about. Another reason I'm having reservations. 

If you've read this far, thank you. And think you in advance for any advice at all. 

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y

My mother was widowed at 47, started investing in real estate at 48 or 49. She made enough to retire on time at retirement age, and has a net worth in excess of a million now in retirement.  Its never too late. 

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    My mother was widowed at 47, started investing in real estate at 48 or 49. She made enough to retire on time at retirement age, and has a net worth in excess of a million now in retirement.  Its never too late. 

  • Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    Start slow, you don’t need multiple houses to start.

  • Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    My MIL turns 103 in November.  She got her driver's license renewed last year so that she is good until 106.  

    Forty-nine is too early in life to hunker down and hope to "wait it out."  

    Michael P got it right in my view.  Start slow but start.  Pick a horse here and ride it.    

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Russell Brazil:

    My mother was widowed at 47, started investing in real estate at 48 or 49. She made enough to retire on time at retirement age, and has a net worth in excess of a million now in retirement.  Its never too late. 

     Thank you, I appreciate that.

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Darius Ogloza:

    My MIL turns 103 in November.  She got her driver's license renewed last year so that she is good until 106.  

    Forty-nine is too early in life to hunker down and hope to "wait it out."  

    Michael P got it right in my view.  Start slow but start.  Pick a horse here and ride it.    

     Your MIL sounds amazing! 

    So you think I should just decide which I want more, to finally live in the area I found a place in or to invest? There's no way I could do both?

  • Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    6y

    It's not that too late. Some people start at 40s yet they were able to made enough for themselves for retirement. So my advise for you is to start investing - create a plan and stick to your plan. Also, invest in your health. 

  • Member since 2020 · 18 posts · 17 votes
    6y

    You might want to start by shadowing someone else so you can see for yourself how much hustle is actually involved. You may decide it's something you can totally handle, or vice-versa. I don't have any info about your chronic illness or how much time and work would be involved in your potential projects, but going into a project knowing you MAY not be able to complete it might not be a good idea.

    My advice is to either partner up with someone locally that you trust for a joint venture, or bring these deals to someone experienced and reputable in your area and have him/her vet them first. If they truly are no-brainer deals, this person will probably be interested and may offer mentorship in return or at least a finders fee. No shame in starting off as a bird-dog and saving up more money.

    Your age alone is a non-issue.

  • Specialist · OverTheRainbow · Member since 2020 · 607 posts · 909 votes
    6y
    Originally posted by @Darius Ogloza:

    My MIL turns 103 in November.  She got her driver's license renewed last year so that she is good until 106.  

    Forty-nine is too early in life to hunker down and hope to "wait it out."  

    Michael P got it right in my view.  Start slow but start.  Pick a horse here and ride it.    

    Will you go for a drive with her? Lol

    Yep. Gotta have vision, and your MIL has vision!

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y

    I wouldn't mind being a bird dog and learning more along the way, or wholesaling. I just don't know anybody to go to. 

  • Member since 2020 · 18 posts · 17 votes
    6y

    There are quite a few investors from Detroit on the forums. If you search “Detroit,” you’ll find them. Get to know them, pick their brains, maybe organize a local meetup.

  • Contractor · Milwaukee, WI · Member since 2016 · 142 posts · 52 votes
    6y

    My Parents got into real estate after seeing me get started, they were 57 at the age they began investing NEVER to late! 

  • Rental Property Investor · Detroit, MI · Member since 2020 · 22 posts · 12 votes
    6y

    @Heather B.

    Hi Heather my name is Phil. I read your story, and it resonated with me. I’m in a similar situation....waited later in life....will be 51.

    I’ve always wanted to get into real estate. And feel I let fear of the unknown and all the what IF’s stop me. I bought my first home (primary residence) when I was 21 yrs old, when most of my friends were buying fast cars. But I stopped there, and never took the next step of purchasing another.....and building a portfolio of properties.

    I feel you....in that...this late in life we can’t make risky decisions that we don’t have time to rebound from. But I also know that if I don’t at least make an honest, informed attempt at getting into rental property, that I’m going to regret it for the rest of my life. And for me regret would be worse than a failed attempt.

    How bout we make a pact. To stay in contact with one another using the BP forum, and share articles/posts to keep us encouraged & motivated. Let’s not just be takers of information...let’s share as well. Share what??? We don’t have any knowledge about the real estate game...right?

    That may be true. But we know what it’s like to be older, with fears of losing it all, and not know where to start. Sharing that alone might just help someone else in our boat (so to speak) feel like they can do it too.

    Won’t it be great when we’ll be able to post some time in the near future. “I remember feeling the same way you do...(speaking to someone just like us) but with the help of the bigger pockets community, research, a little hard work, and determination my husband and I have now...(insert success story here)”.

    We CAN do this!!! We just have to be smart about it. What do you say?

    I truly feel like like learning anything, there will be a learning curve.

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Jeremy Isaac:

    There are quite a few investors from Detroit on the forums. If you search “Detroit,” you’ll find them. Get to know them, pick their brains, maybe organize a local meetup.

     Thank you, I'll do more research and try to do that soon.

  • Member since 2020 · 18 posts · 17 votes
    6y

    Good luck and keep us posted. I wish I could help you myself but I haven't lived in the Detroit area for 20+ years and have yet to invest there. Born and raised in Farmington Hills, live and invest in SoCal now.

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Phillip Smith:

    @Heather B.

    Hi Heather my name is Phil. I read your story, and it resonated with me. I’m in a similar situation....waited later in life....will be 51.

    I’ve always wanted to get into real estate. And feel I let fear of the unknown and all the what IF’s stop me. I bought my first home (primary residence) when I was 21 yrs old, when most of my friends were buying fast cars. But I stopped there, and never took the next step of purchasing another.....and building a portfolio of properties.

    I feel you....in that...this late in life we can’t make risky decisions that we don’t have time to rebound from. But I also know that if I don’t at least make an honest, informed attempt at getting into rental property, that I’m going to regret it for the rest of my life. And for me regret would be worse than a failed attempt.

    How bout we make a pact. To stay in contact with one another using the BP forum, and share articles/posts to keep us encouraged & motivated. Let’s not just be takers of information...let’s share as well. Share what??? We don’t have any knowledge about the real estate game...right?

    That may be true. But we know what it’s like to be older, with fears of losing it all, and not know where to start. Sharing that alone might just help someone else in our boat (so to speak) feel like they can do it too.

    Won’t it be great when we’ll be able to post some time in the near future. “I remember feeling the same way you do...(speaking to someone just like us) but with the help of the bigger pockets community, research, a little hard work, and determination my husband and I have now...(insert success story here)”.

    We CAN do this!!! We just have to be smart about it. What do you say?

    I truly feel like like learning anything, there will be a learning curve.

    Phillip, that was really encouraging and upbuilding. Thank you for that. I truly appreciate it. Sometimes just to know that your feelings are understood and validated is enough, and you've done that. I'm definitely not going to stop trying. It isn't in my nature. You're very kind. I truly wish you the best. maybe our paths will even cross someday in our endeavors. 

    Are you doing flips, or investing in rental properties? I've decided to pursue the home that is in the area we have been wanting to live in. For now. So I know of two excellent opportunities for rental homes that I won't be pursuing. Well priced and in an area that fills up fast. If you'd like to message me I am happy to forward them to you.

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Jeremy Isaac:

    Good luck and keep us posted. I wish I could help you myself but I haven't lived in the Detroit area for 20+ years and have yet to invest there. Born and raised in Farmington Hills, live and invest in SoCal now.

     Thank you so much. Are things very bad there with the wildfires? In southern California? 

    Farmington hills is a decent area. A property just came up, if I'm recalling correctly it's on a couple of acres. Very rare to come up, I believe it would make an excellent flip. A little close to the busier roads, but definitely off of them, and properties don't come up frequently there. What a hot mess that houses though. Lol

  • Rental Property Investor · Detroit, MI · Member since 2020 · 22 posts · 12 votes
    6y

    @Heather B.

    Hey Heather, glad to know I was able to help even in the least. I hope you & your hubby get your long awaited home. And yes...please do forward me the info on the other two available properties. Thanks for thinking of me & sharing. Have a great weekend.

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Phillip Smith:

    @Heather B.

    Hey Heather, glad to know I was able to help even in the least. I hope you & your hubby get your long awaited home. And yes...please do forward me the info on the other two available properties. Thanks for thinking of me & sharing. Have a great weekend.

    Sent you a connect request. I'm still trying to learn the website so I hope I did it right. 

  • Rental Property Investor · Hayward, CA · Member since 2019 · 34 posts · 6 votes
    6y

    So many great advices here!

    @Heather B.Congratulations for moving forward towards your goals.

    I started last year at age 47. Just like you, I don’t want to take a lot of risk, unlike a 25 year old would. Though I understand Risk and Gains are directly correlated, I try to be cautious.

    I started with one rental at a time and now I am hooked. I constantly have to control myself from ‘Shiny Object Syndrome’.

    I don’t have enough experience to give you any advice but I think you made a wise decision to pass up other opportunities and focus on one opportunity at a time. Good Luck!

  • New to Real Estate · Fayetteville, NC · Member since 2020 · 2 posts · 3 votes
    6y

    @Russell Brazil Thanks for sharing your mother’s example, it is an inspiration.

  • Investor · Merrillville, IN · Member since 2020 · 27 posts · 15 votes
    6y

    @Heather B. Thank you for posting this we are starting out well into our forties with similar circumstances. With 2.5 children still under our roof and responsibilities. We are determined to get started in a challenging part of the country as well.

    Stay encouraged and know that you’re not alone. Following this thread to get same advice.

  • Member since 2020 · 18 posts · 17 votes
    6y

    @Heather B.

    The smoke finally seems to have cleared in my area... til the next one. Los Angeles is really becoming a filthy place to live. 

    Farmington Hills used to be a very good area when I was growing up. I was very fortunate - it's not as nice now as it used to be. My parents still own the house I grew up in, but unfortunately, it's only appreciated 1.25% per year since they bought it 32 years ago. They currently currently rent it out. Most of my friends from the area have moved to Huntington Woods and Berkley.

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Jeremy Isaac:

    @Heather B.

    The smoke finally seems to have cleared in my area... til the next one. Los Angeles is really becoming a filthy place to live. 

    Farmington Hills used to be a very good area when I was growing up. I was very fortunate - it's not as nice now as it used to be. My parents still own the house I grew up in, but unfortunately, it's only appreciated 1.25% per year since they bought it 32 years ago. They currently currently rent it out. Most of my friends from the area have moved to Huntington Woods and Berkley.

    That's understandable, those are much nicer areas. It's strange how areas can go from so desirable to mediocre, relatively quickly sometimes.

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Devin Williams:

    @Heather B. Thank you for posting this we are starting out well into our forties with similar circumstances. With 2.5 children still under our roof and responsibilities. We are determined to get started in a challenging part of the country as well.

    Stay encouraged and know that you’re not alone. Following this thread to get same advice.

    Oh, thank you! You as well. My daughter's name is Devin, great name. 🙂

  • Detroit, MI · Member since 2017 · 20 posts · 18 votes
    6y
    Originally posted by @Sayli Mulay:

    So many great advices here!

    @Heather B.Congratulations for moving forward towards your goals.

    I started last year at age 47. Just like you, I don’t want to take a lot of risk, unlike a 25 year old would. Though I understand Risk and Gains are directly correlated, I try to be cautious.

    I started with one rental at a time and now I am hooked. I constantly have to control myself from ‘Shiny Object Syndrome’.

    I don’t have enough experience to give you any advice but I think you made a wise decision to pass up other opportunities and focus on one opportunity at a time. Good Luck!

    Thank you! 

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