Starting Real Estate Investing Later in Life

11 Replies

I'm 60 years old.  I've worked a W-2 job for close to 40 years.   I have saved thru my 401K at work and even will receive a pension (or lump sum) when I retire.   Starting in March 2018, I will be retired from the W-2 job, but I do not want to "officially" retire from working.   I really want to get into real estate investing as a second career.   Reading and listening to the BP podcasts, there are a variety of areas to invest in real estate.  I'm would love to get some recommendations from folks who have started later in life investing in real estate and what areas did they focus on and why did they go in that direction.   Thank you!   Mark

Exciting times @Mark Mattison !    Find a real estate investment strategy that gets you excited to invest in your business and education everyday. 

I would consider the time horizon of your investment & your management strategy as you enter into retirement.  While being an active real estate investor can create some flexibility compared to a W-2 job, the time commitment can be equal to or greater than your current job depending on the investment strategy you choose to implement.

When choosing a strategy,  I would also take into account your risk tolerance as you want to protect your hard earned 401K and pension dollars.  I might consider finding some partners you trust to share the risk and work load while you are learning to master your strategy.

Best of Luck! RC

Thanks for the input @Sean Carroll and @Ryan Cox .  I would like to be more hands-on, meaning having management control, but not manage the day to day activities.  I would use property management company if I went with a buy and hold strategy.   A $5000 per month or 60K per year passive income would be my goal.   Mark

Originally posted by @Mark Mattison :

Thanks for the input @Sean Carroll and @Ryan Cox .  I would like to be more hands-on, meaning having management control, but not manage the day to day activities.  I would use property management company if I went with a buy and hold strategy.   A $5000 per month or 60K per year passive income would be my goal.   Mark

 So you want management control, but you're hiring a PM for holds, and don't want to manage the "day to day".  What is it that you want to manage then?

Hi @Joe Villeneuve ,  I really like the finding the deals and analytics that go with it.  I like having more tangible assets vs. all mutual funds in my portfolio, thus having more management control over my returns. 

LOTS of folks know more about this than I do, but depending on the capital involved a self directed IRA could be pretty powerful. Also, you are in the "no penalty" withdrawal age (congrats) so you could decide a certain sum was risk capital and go there...conversions to Roth, etc.

Sounds a bit like mid unit (15-50) multi's might work for you if you choose well....but I'm throwing darts without a lot of info...

Good luck!

Thanks @jonathan McLaughlin for the information. I was ready to roll over some of my 401K into a self directed IRA. When I was informed there are no tax deductions for mortgage interest and depreciation, I decided I needed more tax strategy help, especially since my strategy was initially going the buy and hold route.

Originally posted by @Mark Mattison :

Hi @Joe Villeneuve ,  I really like the finding the deals and analytics that go with it.  I like having more tangible assets vs. all mutual funds in my portfolio, thus having more management control over my returns. 

 Got it Mark.  I'm 61 years old, and if I had to start all over right now, with what you have to start with (fund access) it would be pretty simple.  

What you want to "manage" is fine. Just Partner for the rest. Use a different Partnership/LLC for each deal...even if you use some or all of the same partners. This allows for different exit strategies and even different "% splits" based on "who/what/where/how" of each deal.

Check out bill Manassero’s podcast

Thank you so much @Lane Kawaoka !!   I listened to the BP podcast 191 and he is exactly what I needed to hear!!   Got on his website too.  Thanks again!! Mark

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