Much can be found online and otherwise exalting the importance of starting retirement investing at a young age. But often people don’t find the importance, motivation, or patience it takes until much later to start their investing journey.
Enter in real estate, quite possibly the sexiest avenue to invest, with the smallest barriers of entry for the types of returns it can produce. The income and potential earnings can produce a white collar nest egg for a blue color worker.
Add the appeal of finding good deals, negotiating, and fixing up your own assets. Thanks to the likes of larger than life personalities with network television sponsorship, flipping for huge profits continues to attract ambitious and venturing souls.
When it comes down to making an honest go of it, though, who makes a better investor…young ambitious go-getters or been-around-the-block old timers?
Let’s compare the two sides and see what your thoughts are as well:
How to Invest in Real Estate While Working a Full-Time Job
Many investors think that they need to quit their job to get started in real estate. Not true! Many investors successfully build large portfolios over the years while enjoying the stability of their full-time job. If that’s something you are interested in, then this investor’s story of how he built a real estate business while keeping his 9-5 might be helpful.
+ Time is on their side. The earlier you get started, the better. Plus, you can learn from the Old Dogs in the field what NOT to do, and cut out a lot of the learning curve if you connect with the right mentors.
+ Not afraid to hustle. Late nights, early mornings and plenty of energy drinks are the usual agenda for college students and recent grads. With little expenses, the drive, energy, and desire to succeed, new blood has the advantage of spending the resources they do have towards investing: their own time and efforts.
+ Less fear, less to lose: It’s easier to take chances when you’re failures and wins are tied to your own credit and accounts. Plus, no real career may be established yet, so leaving a comfortable position with benefits and tenor won’t be an issue.
– Too young to care. The world exists between finals, parties, and a boyfriend/girlfriend/friends, investing is usually the last thing on their mind. 2nd and 3rd jobs may also take up any free time.
– No idea where to start or what to do. There are so many books, blogs, infomercials and gurus, the amount of information itself can be overwhelming. Unless you’ve had a relative or mentor to show you the ropes, getting started may be too intimidating and confusing.
– Lack of funds and knowledge: Even if a newbie investor has the drive, they may have little funds to start a marketing campaign, and little idea how to structure deals or evaluate deals. This can be crippling for those that are just starting out and don’t have mentors.
+ Have real world experience. Have the perspective outside of a philosophy and economics lecture to have lived through how markets actually operate. Experiencing actual market cycles has provided valuable education, most likely with losses and wins. Can more easily understand when, where and how to invest.
+ Established career. Not everyone wants to be out flipping houses. In fact, there’s many an argument why keeping a “real” job with W2 wages and buying real estate meanwhile is a smart way to retire wealthy. Have 401K’s and other retirement vehicles of which to draw funds for down payments, reserves, be a lender, etc.
+ Use Young Bucks in their business. Real estate investing can be taught, perseverance and winning spirit aren’t as easy. If you’ve been lucky enough to gain much RE experience, it will be easier to attract the Young Bucks to your business to help outsource that which you no longer have the energy or desire to do.
– Time is not on their side. If starting later in life, the compounding of effect of money and flexibility to regain losses are lessened. But, starting at all is more important than never doing anything. After all, the average retirement is ghastly; simply adding one or a few rentals can make a significant difference to your balance sheet and income statement.
– More responsibility. Family, mortgages, tuition, bills, and other debts may have a stranglehold on the households’ finances, leaving little to nothing to use to invest.
– Lack of desire for change. It’s easy to get stuck in the mindset of “this is the way it used to be.” Gen X’s and younger are used to a fast paced, rapidly changing world where new technology emerges daily and old world philosophies are opaque in comparison to the search for creating a foothold for a career and life in today’s world. If Old Dogs aren’t willing to accept new laws, economic realities, and adapt where the game has changed, future success becomes limited.
When’s the Right Time?
If investing in real estate is important to you, it’s imperative to start taking action, to-day. The good news is, there’s plenty to go around and plenty of ways to gain assets and make income, regardless of age.
Better yet, the convergence of Young Bucks and Old Dogs can create winning dynamics for the betterment of each others profits and business.
What do you think? Do you think the young and tech savvy have a leg up or the older, wiser, and better funded have the advantage?