"Retiring" at 33. Too early?

General Real Estate Investing
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"Retiring" at 33. Too early?

Adam HamanPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 45 posts · 20 votes

Good afternoon!

I'm a Realtor and RE investor here in Denver feeling burned out after a 5 year push. I've made decent incomes for the past 5 years (80-120k), and invested more than half of it each year in the best, newest rentals I could find. I'm considering "retiring" and doing something else.

I don't love being a Realtor; the hours in particular are difficult, I often don't feel like I can keep my mind from wandering to clients and pending deals, and I don't feel I've had domain over my own mind, or gotten away from work completely, in more than 3 years. I have 2 young kids that deserve better from me, and I want to give them my full attention.

We're established in a great home we remodeled in Denver with a $1300 mortgage. By the end of 2014 I should have monthly cash flows of about $4,500 after vacancy and expenses. This is roughly equivalent to our monthly cost of living, minus expensive vacations. I have 9 outstanding mortgages, including our principal residence. My wife does not work. As such, I think I could pursue a job with less stress, more coworkers, and more job satisfaction. Regardless of pay, I think we could make a run of it. Retirement should be taken care of with 8 investment properties fully paid off when I am 62, and increases in rent in the meantime will grow our monthly income with inflation.

What am I missing? Am I jumping the gun on this? Does anyone live happily on a similar monthly income? Has anyone "retired" and then regretted it? Is it difficult to get back in the game?

Thanks everyone for your input. How can I help you?

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y

"in more than 3 years"

So you haven't taken a break for yourself in 3 years?? I don't care what you do as a profession it's important to get away.

I do commercial real estate and not residential. Even though I do not drive clients around I am more processing numbers on complex transaction investments all day long. I still need a vacation every 3 to 6 months and exercise multiple times a week to clear the mind.

Even if you love what you do if you burn candles at both ends you will flame out. I think you need to take a few weeks vacation and leave the cell phone at home. Spend time on yourself and your family. Then when you get back see how you feel. You can't make such a large life changing decision not thinking clearly being worn out without a break. 

I love what I do and want to keep doing forever in commercial real estate. There is no absolute yes or no. As the years progress you can be more selective on what clients you take to reduce your stress level. The ones that are too much drama you won't need to work with them as your residual income from investments will provide steady cash flow. Look at if real estate is not what you enjoy or is it the residential part. So if you switched to investors would you like that better, or commercial, or leasing etc.?? So many agents start in residential and they can't stand it. Many quit not knowing all the other avenues in real estate they can take that is different.

I personally like to go to the beach on vacation and listen to the waves roll in at dark with peace and quiet and the moon hitting off the ocean. It really clears my mind and rejuvenates me.  

Hope it helps.

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  • Mark Masiel
    Lima, Lima · Member since 2014 · 59 posts · 11 votes
    12y
    Congrats on your success, Adam! Some perspective-80-120k is more than "decent", especially from the ages of 28-33! I have a Master degree and 20 years experience in my field (education) and the only time I ever approached that salary was as a school admin and there is zero work/life balance in that role. Zero flexibility or time for your own kids. That's way jobs like that pay a good wage. I honestly think the advice on a "mini retirement" is perfect for you. Take 4 months off, a year even, you can afford that for sure. I doubt you want to "retire" as you will need income as the times change. And don't even think you can retire "and live like a King" overseas on 4500 a month for a family of four-which would have been the thinking ten years ago. You're 4.5 k most likely will not support your needs down the road. You are young and obviously talented, with a little time to reflect and you surely will be on course again whenever you are ready. Good luck!
    0Reply
  • Ronnie Boyd
    Fix & Flip, Wholetailing, · West Columbia, SC · Member since 2013 · 215 posts · 60 votes
    12y
    Congrats on your success. I would never retire if I was you, I never plan to. Just find a different way to help and serve people. But I do think you have really earned a vacation lol !! Go have some fun.
    0Reply
  • Adam HamanPro Member
    OP
    Rental Property Investor · Denver, CO · Member since 2014 · 45 posts · 20 votes
    12y

    @Jordan Thibodeau , thanks for your input about ACH rent collections.

    --Last week I closed the last property I had under contract, the first time since late 2011 I haven't had something under contract. It's nice! Incredibly, I'm starting to feel like I would like to take on a couple clients already. I didn't expect that, but it's a good sign that I can probably continue this job in a way that I enjoy doing it for the foreseeable future. 

    --I've pledged to take the advice offered here from many fellow agents and not do quite as many as I did in the past, and apply a judicious filter to the clients coming in so I can reduce stress from the beginning. With less clients and less problems, I think stress will be cut by more than half moving forward. Good times!

    --I have designs on securing 3 more properties in the coming 6-8 months, so hopefully we can boost the passive income closer to $5,500 per month (now that I have mgmt fees). Bumping passive income--even slightly--while dumping the management portion is a massive success in my book.

    --Lastly, I've taken the advice of David Fritch and others to try to decide what I WANT to do moving forward, now that what I HAVE to do is mostly taken care of. I'm considering pursuing a PhD in Finance to try to promote financial literacy in high school and college students. That would be extremely fulfilling. I'm not convinced I can swing it, but I'm keeping my powder dry.

    Best wishes to all who lent their support and hard-earned insight and experience

    --Adam

    3Reply
  • Derek Diamond
    Rental Property Investor · Steamboat Springs, CO · Member since 2014 · 278 posts · 100 votes
    12y

    Check out Mr. Money Mustache:   http://www.mrmoneymustache.com/

    An entire blog about a guy that retired at 30.

    0Reply
  • Adam HamanPro Member
    OP
    Rental Property Investor · Denver, CO · Member since 2014 · 45 posts · 20 votes
    12y

    @Derek Diamond Thanks for mentioning that, I've read a lot of his work, and it is empowering for sure! I don't know that I'm ready for the unstructured life that MMM has, but I think the most empowering thing I've taken from this whole experience is to know that every day I wake up, I can choose to do (or not do) whatever I want as long as all my expenses are covered. 

    Whether I choose to continue selling RE, drive for Uber, or work in a record store, knowing that I could, by definition, be "retired" is actually better than truly retiring for me :)

    0Reply
  • David Fritch
    Real Estate Broker · Pasco, WA · Member since 2013 · 126 posts · 53 votes
    12y

    @Adam Haman Thank you for the update and the mention. Sounds like things are going very well and I'm glad to hear it!

    0Reply
  • Bill S.Pro Member
    Moderator
    Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
    12y

    @Adam Haman enjoy Italy and thanks for the update.

    0Reply
  • Jordan Thibodeau
    Rental Property Investor · San Jose, CA · Member since 2013 · 486 posts · 170 votes
    12y

    @Adam Haman  Thanks man. Enjoy your break and keep us posted.

    0Reply
  • Sean T.
    Rental Property Investor · MA · Member since 2014 · 420 posts · 213 votes
    11y

    Adam I am in a similar situation.  31 with a very significant income, a 4yr old with another due in Jan.  I am required to travel extensively via plane on a near weekly basis.  

    Since you mentioned a phd for finance as a means to give back I thought I would make a suggestion.  I chair a local education non-profit and sit on the advisory board of some local colleges as well.  It amazes me how rewarding these things are even when I have "no time".  I would suggest looking for a volunteer position in your area and you may be surprised at how eye opening it can be.  

    Stress has a way of dissipating when perspective is applied.

    0Reply
  • Michael J.
    Rental Property Investor · Louisville, KY · Member since 2008 · 342 posts · 123 votes
    11y
    Originally posted by @Account Closed:

    Another thing to consider...most other industries or corporate type jobs that pay over $80-100k are going to require some long hours as well. Not at night per se, but you won't have control of your time the way you sort of do now. When you have a boss and they say jump, you usually have to answer how high. Just something to think about as you evaluate your options.

    I agree, high paying jobs require some sort of really specialized skills and the environment will most likely be a lot of hours and stress.

    My plan is to have double my job income in REI income coming in before I quit. I want to be able to weather big income fluctuations, and be able to have additional income to continue investing in rentals. For me personally it is important to continue growing and building my business.

    Aw gee, did I bring a post back from the dead? Thought it was a current discussion. Oh-well, if the OP see's it, how's it going?

    0Reply
  • Joe Bertolino
    Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    11y

    Take a break.   Close up your current deals and lay low for awhile.   Spend 24/7 around your wife and kids and you will be ready to get back to work within a month.    

    0Reply
  • Logan Hicks
    Business Owner/Investor · Millersville, MD · Member since 2015 · 191 posts · 71 votes
    10y

    Im 25. Ill be retired at 26. I work 120-130 Hrs a week. I make 137.5k at my W-2, I make ~1M gross from my other businesses. I have a 2 month old daughter.

    Im at the local gas stations filling up more than I am home. I miss my family more than anything else in life. I havent had a real vacation since I got out of the military, which was in 2010. 

    The reason I work hard is because I know that by the time my daughter is 18, ILl be able to hand her a 20k credit card, a full ride to college, a fully paid off car, and a fully paid off apartment for 4 years, in 1 year lease terms.

    She'll get every competitive edge she needs to be a superior adult to her average class mate, and will have a huge leg up on life.


    I regret nothing. Not even about not being with my partner for the full birth process at the hospital (which was like 4 days long, can you blame me?)

    My family is set for life now, even if I died tonight.

    So ask yourself this very serious question.

    Is happiness and freedom of one worth the countless advantage and happiness of the many?

    I sacrificed all my time, all my hobbies, passions, and freedom when I answered this question myself. I completely lost the concept of fun outside of work.

    What I gained was limitless freedom, success, and options for my partner, my children, and all our childrens children to come. 

    Now ask yourself the same question...

    0Reply
  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Adam Hamango do something you enjoy doing. 

    0Reply
  • Peter Assaad
    NYC, NY · Member since 2013 · 50 posts · 22 votes
    10y
    I think you could do it and drive uber on the side while your kids nap to cover bonus expenses and keep you occupied. Would be fun and very flexible.
    0Reply
  • Glenn McCrorey
    Investor · Cedar Rapids, IA · Member since 2013 · 494 posts · 407 votes
    10y

    I didn't read the responses so maybe I'm repeating but... retirement is a financial exercise.  What does 62 have to do with anything?  Please don't say social security.  That shouldn't be a factor at all.  Maybe you reel in the real estate agent biz.  Don't take a listing under a certain amount or don't work with buyers, only sellers, etc

    I know a RE agent that is retiring in Dec, she is 65 and has 6 paid off rentals.  I have over 30, all with mortgages and retired at 50.  Your choice.

    0Reply
  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Adam Haman @Jake Stenziano  

    Have you ever considered life coaching, or speaking to a mentor.  I love your passion and forward thinking. You have the entrepreneurial disease of planning and achieving your long term goals. 

    Good Luck

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    0Reply
  • Max Householder
    Rental Property Investor · Saint Louis, MO · Member since 2014 · 313 posts · 326 votes
    10y

    If you want to retire early, check out some personal finance blogs that put out great content on this topic. Budgets Are Sexy is great for ideas on getting your financial house in order, Afford Anything is written by a blogger who used real estate to retire early and travel the world and has been a guest on the BP podcast, Mr. Money Mustache has great content on the more technical side of what it takes to achieve financial freedom, Mad Fientist has some great calculators to see when you can expect to become financially independent based on your expenses and investments, and lastly Go Curry Cracker is a great blog about location independent living from two early retirees.

    0Reply
  • John Ma
    Investor · Arlington, VA · Member since 2014 · 151 posts · 37 votes
    10y

    What I don't like about those blogs, and people on the news giving money/retirement advice (like Suzie Orzman) is they assume you're a useless loser. Put as much as you can in your IRA they say, beucase they assume you're stuck at your dead end 80k job for the rest of your life and you can't do anything else.

    If you're on BP, you're an action taker that has the balls to learn how to generate real income.

    This thread is from forever ago, so if this still applies to him, i'd say take a short break and come back and see how you feel.  Just like the absentee owner who received his 1st yellow letter compared to the motivated seller receiving the 11th yellow letter and is ready to sell, situations and ideas change.   
     During the break do passive deals such as get referral fees or something.  

    1Reply
  • Ramon Smothers
    Investor · Houston, TX · Member since 2015 · 30 posts · 12 votes
    10y

    Great input from everyone here. BP is such an amazing place.

    0Reply
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