Investors who started in late 30’s with multiple children

81 Replies

Hello All,

Josh and I are newbies to real estate. We are absorbing as much information as possible and setting goals. We are currently in our late 30’s and have 4 school age children. Over the past year we have been able to increase our savings and continue to work on our financial IQ. We have a general idea that we’d like to invest in North Carolina. Our issue is capital, we don’t have a lot of it.

Are there any investors that have a similar late start like we do, who’d be willing to share some tips or tricks?

Learning so much and so grateful for this community.

Thanks

The Masser’s

@Ciji Masser Welcome to the community and look forward to hearing about your successes.

It is never too late to start investing and you are in the right place to do it. 

Before you get started, know why you want to get into real estate investing? Are you interested in cash flow or appreciation? Do you need immediate cash flow or can it wait? What is your appetite for rehab? This is going to be your guide throughout your roller coaster journey and will keep you looking forward through the good and bad days. After you know your why, work backwards to establish short-term and long-term goals to help you accomplish your why.

Understand what to you constitutes a great deal. This is typically a personal decision and can include specific returns you want to see from a deal. This will also help you stay focused and to not give in to a make a bad deal work.

One of the most important skills of an investor is deal analysis. You will want to practice analyzing deals everyday, even if you don't plan to buy yet. This skill is invaluable and a perishable skill.

Continue educating yourself everyday as there is too much information to learn in a short amount of time. Know that mistakes will be made, but the great thing about real estate is that over time and if purchased right, many mistakes can be mitigated or overcome. Don't be afraid to make the leap. Analysis paralysis can and does stop many from moving forward. Some of the best learning comes from jumping in and figuring it out.

Best of luck!

@AJ H. Thank you. The ultimate why is our financial freedom and starting generational wealth for our children. Our next step back is ending our high stress, high risk, low return careers. We both love helping and teaching people. We dream of living on the beaches of North Carolina. Thanks for the tips and we look forward to sharing and asking questions!

@Ciji Masser Start looking for local real estate meetups and start networking with like minded people.  You might be able to find a equity partner and team up with someone to help you get started.  I would narrow down the type of real estate you want to invest in and educate yourself in it to become an expert at it. It’s never to late to get started. Good Luck

@Jackson Babcock we plan to attend our fist local meetup in MD next week. We will also look for some virtual events being hosted in NC. Our goal is buy and hold for at least the first one. It just seems most practical for us. However we love a good little rehab project. So a BRRRR is likely in our future.

Originally posted by @AJ H. :

@Ciji Masser Welcome to the community and look forward to hearing about your successes.

It is never too late to start investing and you are in the right place to do it. 

Before you get started, know why you want to get into real estate investing? Are you interested in cash flow or appreciation? Do you need immediate cash flow or can it wait? What is your appetite for rehab? This is going to be your guide throughout your roller coaster journey and will keep you looking forward through the good and bad days. After you know your why, work backwards to establish short-term and long-term goals to help you accomplish your why.

Understand what to you constitutes a great deal. This is typically a personal decision and can include specific returns you want to see from a deal. This will also help you stay focused and to not give in to a make a bad deal work.

One of the most important skills of an investor is deal analysis. You will want to practice analyzing deals everyday, even if you don't plan to buy yet. This skill is invaluable and a perishable skill.

Continue educating yourself everyday as there is too much information to learn in a short amount of time. Know that mistakes will be made, but the great thing about real estate is that over time and if purchased right, many mistakes can be mitigated or overcome. Don't be afraid to make the leap. Analysis paralysis can and does stop many from moving forward. Some of the best learning comes from jumping in and figuring it out.

Best of luck!

 I agree with everything you said,...except the last line.  Although there are many that will learn from making their own mistakes, it's a lot like jumping in a pool without knowing how to swim,...and thinking "I'll figure it out when I'm in the water".  Those that figure it out, are the only ones that say it's a good idea.  Those that don't, well, ask one of those squirrels that run across your path as you're driving down the road, how many times they can misjudge the cars approaching.  The ones that made it, tell the others it's OK...RUNNN!!!,...then, Oh $h177.

Originally posted by @Ciji Masser :

Hello All,

Josh and I are newbies to real estate. We are absorbing as much information as possible and setting goals. We are currently in our late 30’s and have 4 school age children. Over the past year we have been able to increase our savings and continue to work on our financial IQ. We have a general idea that we’d like to invest in North Carolina. Our issue is capital, we don’t have a lot of it.

Are there any investors that have a similar late start like we do, who’d be willing to share some tips or tricks?

Learning so much and so grateful for this community.

Thanks

The Masser’s

We started in our 30s with kids, too.  Never too late.

We wanted freedom so bad we drove beaters and bought a doublewide in a park after putting a Heloc on our house.   Our shelter costs were less than $300/mo for 5 years. 

We questioned every purchase and payment.  Is that getting us closer to freedom? What's in your driveway now? 

I became educated on all things creative like seller financing  options, lease options, assignments, sub2s and wraps.  These came in handy during the GRC, but not as useful since 2015 so don't worry about all that yet. 

What has been consistent has been the need to sow the seeds for off-market deals. Retail with realtors will not get you there. Get to know the landlords / owners in your target neighborhood.  They should be calling you when they've had it.

Takes time farming in your backyard, so general out of area markets will be a huge hurdle.  Maybe wholesalers and creative agents can help source off-market deals  when you're ready.  I have zero OOS experience, but do make it in an expensive market solo dealing directly w8th owners. 

@Steve Vaughan we are beating ourselves up over what’s in the driveway. If Rich Dad Poor Dad would have made it into our lives 8 months sooner. We have two Toyota Tundras sitting in the driveway one 2010 and one 2021... we are going to leave them be for now as they may be a business asset to us later. For now we are focused on smaller financial payoffs that add to our monthly surplus. Our immediate demographic will be hard to invest in. There are currently only 300 houses on the market here. So we have to go out of the state to start. Which we are fine with. NC is close enough to drive to.

We are watching all out going expenses for sure and analyzing all things including the grocery list.

It’s good to hear success stories. We’d love to connect and here just how you guys put it all together.

@Ciji Masser a lot of people would consider late 30s too young to get started in the real estate game. It's all about perspective. 

Attend local meetup groups and start vocalizing your goals and objectives. You mentioned buy and hold for your first property. I would look at the market(s) within a 30 min radius of where you live. Compare property values to monthly rent and make sure they at least meet the 1% rule. Analyze numerous deals (you can use the BP calculator). Find an agent and go see 5-10 properties in person. Make offer(s). Find a local bank. Close your first deal and then you're on your way. 

@Jon Kelly , thank you for the tip. I see your in PA. We are like a short 30 minute drive from the Gettysburg. I will take a look there. As I think is an area we keep bypassing in our practice runs. We have a great realtor and lender here locally. So it makes perfect sense to start where we have a good team. Great pointer!

Originally posted by @Ciji Masser :

@Steve Vaughan we are beating ourselves up over what’s in the driveway. If Rich Dad Poor Dad would have made it into our lives 8 months sooner. We have two Toyota Tundras sitting in the driveway one 2010 and one 2021... we are going to leave them be for now as they may be a business asset to us later. For now we are focused on smaller financial payoffs that add to our monthly surplus. Our immediate demographic will be hard to invest in. There are currently only 300 houses on the market here. So we have to go out of the state to start. Which we are fine with. NC is close enough to drive to.

We are watching all out going expenses for sure and analyzing all things including the grocery list.

It’s good to hear success stories. We’d love to connect and here just how you guys put it all together.

Glad you're analyzing your grocery list, but that '21 Tundra is going to sink you. Even if you save the capital for a down payment, your DTI wont fly.

Us later starters need to be intentional.  Success stories are nice and all that, but it took sacrifice.  I don't think you're ready now, but recommend some Dave Ramsey while you learn. 

@Steve Vaughan I'm not sure that the truck will. Our overall DTI is 30%. Most of our other debt is low or non existent. Individually I'm not on our mortgage so my individual DTI is also 30%. My husbands DTI is also 30%. I think as industry standard goes we are good on DTI.

Originally posted by @Steve Vaughan :
Originally posted by :

Hello All,

Josh and I are newbies to real estate. We are absorbing as much information as possible and setting goals. We are currently in our late 30’s and have 4 school age children. Over the past year we have been able to increase our savings and continue to work on our financial IQ. We have a general idea that we’d like to invest in North Carolina. Our issue is capital, we don’t have a lot of it.

Are there any investors that have a similar late start like we do, who’d be willing to share some tips or tricks?

Learning so much and so grateful for this community.

Thanks

The Masser’s

We started in our 30s with kids, too.  Never too late.

We wanted freedom so bad we drove beaters and bought a doublewide in a park after putting a Heloc on our house.   Our shelter costs were less than $300/mo for 5 years. 

We questioned every purchase and payment.  Is that getting us closer to freedom? What's in your driveway now? 

I became educated on all things creative like seller financing  options, lease options, assignments, sub2s and wraps.  These came in handy during the GRC, but not as useful since 2015 so don't worry about all that yet. 

What has been consistent has been the need to sow the seeds for off-market deals. Retail with realtors will not get you there. Get to know the landlords / owners in your target neighborhood.  They should be calling you when they've had it.

Takes time farming in your backyard, so general out of area markets will be a huge hurdle.  Maybe wholesalers and creative agents can help source off-market deals  when you're ready.  I have zero OOS experience, but do make it in an expensive market solo dealing directly w8th owners. 

 Steve said it all. Cut your expenses as much as possible, sell your cars to drive more fuel efficient ones or ones that you can get some cash through an exchange. (I had an '04 Toyota Tacoma that I LOVED. I sold it so I could get a little sedan. That saved me $200/month in gas. Maybe one day I'll be wealthy enough for a truck again lol). Think about downsizing your home for lower payments, house hacking and/or moving closer to your job so you can save time and gas. These are painful, but they help save some household operating costs. Lastly, comb through your bills and see if there's anything you can cut. 

Once expense are out, think about increasing your income. Maybe look at getting into a sales job in an industry you like or pick up a side hustle. Also, don't be afraid to put some money in the stock market. I like dividend stocks, index funds and mutual funds  (I like AT&T, Verizon, Pfizer & TQQQ) because they're less volatile and they cash flow. You may not get a huge return, but at least your money isn't in the bank losing value. You can accumulate some appreciation (hopefully) in the stock market and then cash out for your down payment.

Lastly, as Steve said, start networking ASAP. If you want to go far in Real Estate, it's a team sport. Network with property managers, other investors, wholesalers, agents, contractors, etc. You never know who might have a deal for you.

@Ciji Masser I got started in my 30s, plenty of folks get started far later. I developed a prop tech tool that I wish I would had when I started. You can invest outside of areas where you live if you understand the locations you’re investing in. 
At first I scrimped and saved to get the cash to invest at first but now I’m able to just focus on increasing my income. 
It’s hard at first, but if you can get over that investing in RE is life-changing. I am so happy I went through the initial pain! 

Originally posted by @Steve Vaughan :
Originally posted by @Ciji Masser:

@Steve Vaughan we are beating ourselves up over what’s in the driveway. If Rich Dad Poor Dad would have made it into our lives 8 months sooner. We have two Toyota Tundras sitting in the driveway one 2010 and one 2021... we are going to leave them be for now as they may be a business asset to us later. For now we are focused on smaller financial payoffs that add to our monthly surplus. Our immediate demographic will be hard to invest in. There are currently only 300 houses on the market here. So we have to go out of the state to start. Which we are fine with. NC is close enough to drive to.

We are watching all out going expenses for sure and analyzing all things including the grocery list.

It’s good to hear success stories. We’d love to connect and here just how you guys put it all together.

Glad you're analyzing your grocery list, but that '21 Tundra is going to sink you. Even if you save the capital for a down payment, your DTI wont fly.

Us later starters need to be intentional.  Success stories are nice and all that, but it took sacrifice.  I don't think you're ready now, but recommend some Dave Ramsey while you learn. 

 I agree on the 21 Tundra. Having one truck for a business may be helpful, but two are not needed. Since you already purchased the truck, best you can hope for is claiming mileage for business use. In other words, there is no business asset here. The point Steve is making is that sacrifice now, will get you ahead later. Sacrifice is delayed gratification and often doing things that make you uncomfortable. Maybe you don't want to get rid of the truck, sacrifice is doing it anyways. Or don't sacrifice and stay in your current situation. It is up to you.

yeap I have 3 school age kids and started with no capital......i started out wholesaling........I then positioned myself to be of value to a partner and partner on some deals..........ill challenge you to read the book The Gogiver......that helped me out so much......

@Tucker Cummings we are working on all the expense cutting stuff. We have 4 kids so smaller vehicles are harder for a family of 6. But we are looking at everything. Also I should have said as newbies we have only been at this for about 45 days.

@Joe Splitrock we don’t disagree about the vehicles we just have to be considering other things. We have 4 children and need a vehicle for everyone. The 2010 would be the one that got offloaded first. Bc that’s the best practical decision for our family. With all other debts being low. The trucks aren’t a top priority financial at this moment. But fully understand everyone’s view.

@Ciji Masser

There it's a ton of great advice on here. I wanted to let you know that you're not alone. My wife and I are in our post late thirties (sounds better than early 40's) with 3 special needs kids. Thankfully Nicole has been able to work from home, but after a long year of quarantine and me being unessential we're ready to start a new chapter in our lives. We have realized that more than my entire paycheck was going to daycare. Once the kids are back in school, we are going to turn to REI to replace my income. That way I can be there for them instead of paying someone to watch them while I work to pay someone to watch them. Meanwhile, we are learning all we can, practicing running numbers, networking and absorbing all things REI... I wish you the best of luck! Hopefully we will run into you on the outer banks someday. That was one of our favorite places to visit back before we had kids!

@Shawn Mcenteer OMG... I will get right over there. I need to convince Josh that’s what we need to do. Sell our current home and house hack. He’s not sold yet, but it’s something I have on the goal list. I will check it out! Thanks so much.

@Chris Boyington our hearts go out to you and your wife. Good luck in your endeavors as well and stay in touch. It's always good to have people with multiple children in your corner. We get each other on a whole other level. We have also kicked around the REI option a few times. The best advice we can give from one newbie to another is read Rich Dad Poor Dad and then go from there.

@Ciji Masser

A few tips that I've discovered are find 85 LTV lender, have seller pay closing costs, find properties with tenants in place to start collecting money upon closing. Assuming you own your home you can find credit unions that will do 100%ltv heloc or loan. Not that you should as it might limit your buying power with your debt calculations but its definitely an option. I'm 35 with 3 kids, 3 sfh, and 1 two family. My experience is that one house was the hardest phase because your normal income will be a big contributer to maintaining this one unit where as multiple properties pay to maintain one another when there are issues. Be ready, have safety nets people and places that will lend you money if necessary. And get ready to commit to adding houses. Good luck