Updated over 8 years ago on . Most recent reply
Laid off 60 Year Old in Michigan Starting Real Estate
Hi All,
I'm just turned 60 last month, and worked for an automotive company for 20+ years, they laid me off the day after my birthday. I've been looking at rental properties before the layoff, now feel even more urgent to start my real estate journey.
I have a little bit of savings for some investment properties but do not want to pay all cash for any houses from what I've learned about leverage. But at my age, I doubt I will be able to find a new job and get loans. I can get a home equity credit with my primary residence at 50% of its value, but the terms are not ideal- 15 years at 5.5%. Any suggestions on how I can get started? I'm hang up on the financial side of this without a conventional loan.
Cheers,
Jeff
Most Popular Reply
A 15 year loan at 5.5% interest is very favorable for investment property. The larger question is: do you really want to risk your residence in an endeavor that you do not yet understand? It is possible to get financing based, primarily, on the value of the property if you find an excellent deal. That financing will, most likely, be at a rate significantly higher than 5.5%, but if the deal is strong enough that can be alright. There are several recurring REIA (real estate investor association) meetings in our region (SE Michigan). Look for @Tom A., he hosts one near you. @Wendy Patton, does also. There are other groups: Renegade Detroit Investors, REIA of Oakland, Wayne, Macomb, etc. A web search should reveal most of them. Attend some meetings. Meet other investors. Start building a network. Real estate investing is not always easy but it is fairly simple, especially if you find others to guide you on your journey. Best wishes.