Same strategy at 50 as at 24?

Question

I originally got into real estate investing inadvertently at the age of 24. Over the next 10 years I acquired just shy of 20 doors and did a few flips. When the market crashed around 2007 2008 I lost almost everything. I just turned 50 about a month ago and I’m finally back on my feet and ready to aggressively hit the real estate investments again. Do you think there should be different strategies for an investor just starting (or my case starting over) in their 50’s As someone in their 20’s? Or are these principles and strategies pretty much universal? As I am more serious about and closer to retirement age, I probably should be more aggressive.

Ryan Howell · Answer

I don't think age matters, but your goals do and so do your strengths and weaknesses, which may be different now then it was at 24.  My guess is you are more financially literate and have more net worth than at 24, which may change your strategy and approach.  Also, you now know what to do different and lessons learned from your previous experiences.

Jody Sperling · Answer

I don't think aggressiveness is helpful with real estate. Granted, I have one rental at the moment, it seems better to position yourself to buy deals that are recession proof. If '07&'08 knocked you out of real estate the last time you invested, something about your strategy needs to change as a result, this time.

The best way I can think to do that is to make sure every property you buy, you get twenty- to thirty-percent below current market value. That would all but ensure you don't go underwater on the property if we see another recession.

You can still buy twenty doors in a short period of time and have enough equity in all of the properties to weather a downturn if you focus on the numbers. Best of luck to you!