Am I to old to start buying investment properties?

Member since 2019 · 1 post · 2 votes

Hi,

I have been a Realtor for 5 years and have thought about investing most of that time but have not. I just turned 60 and I am wondering if its too late for me to begin this investing process? my wife and I are comfortably moving to retirement but I believe it can happen sooner rather than later through investing. What do you think?

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Reid Chauvin

Lender · Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA · Member since 2021 · 583 posts · 338 votes

@Tim Worgan - i can't see why it would be too late as long as you are making smart investments that have a return on capital period that makes sense for you. Having some rental properties with strong cash flow could definitely serve to bolster your income in retirement.

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Reid Chauvin
Lender · Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA · Member since 2021 · 583 posts · 338 votes
3y
@Tim Worgan - i can't see why it would be too late as long as you are making smart investments that have a return on capital period that makes sense for you. Having some rental properties with strong cash flow could definitely serve to bolster your income in retirement.
3 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Tim Worgan:

Hi,

I have been a Realtor for 5 years and have thought about investing most of that time but have not. I just turned 60 and I am wondering if its too late for me to begin this investing process? my wife and I are comfortably moving to retirement but I believe it can happen sooner rather than later through investing. What do you think?

Hey Tim, I believe that there is never a time that it is too late to start investing. I've met a lot of people who have been successful even when they started later than everybody else. I agree with Reid, getting a strong cash flow will surely secure you that early retirement. Here's a quick guide for real estate investing: https://www.biggerpockets.com/... best of luck on your real estate journey!
1 Reply
John Mathew
Real Estate Agent · Member since 2019 · 143 posts · 74 votes
3y
Hello Tim, No, you are never too old to start buying investment properties. The decision to invest in real estate is a personal one and should be based on your individual goals, financial situation, and risk tolerance. You may want to consider consulting with a financial advisor to discuss your specific situation and help you determine if real estate investing is right for you. Additionally, you can speak to experienced investors and agents in your area to learn more about the process of investing in real estate.

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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3y
Maybe too late?
Who knows?
1.    What is your number?.
2.    What is your time frame?
3.   Risk tolerance. How much can you afford to fail?
4. Then determine your game plan.
Then you will know if it’s too late or not.
2 Reply
Mary Smith
Rental Property Investor · Member since 2021 · 384 posts · 197 votes
3y
@Tim Worgan I don't think it's ever too late to start investing in real estate. Start planning your investment strategy with your financial goals in mind and just go for it!
0 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
You can easily buy 10 properties a year for 3 year and retire off of that. Takes hustle though.
2 Reply
Tim Bee
Investor · CA · Member since 2023 · 196 posts · 107 votes
3y
I've been investing for 15 years and have 16 houses. Lets say you do that. You would be 75 with 16 houses. How does that sound?
1 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
I don't think it is ever too late. As for using the money to support your retirement, it depends on what you want to do. A long term rental is unlikely to do that in the same way a flip or short term rental would if you put down the normal 20% down payment. Run some numbers based on different scenarios to see if it would work for you.
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Sara Frank
Realtor · Baltimore, MD · Member since 2020 · 255 posts · 182 votes
3y
Never too late! If not for yourself then for future generations for your family.
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Alex Talcott
Attorney · Durham, NH · Member since 2019 · 292 posts · 126 votes
3y
If your vision of retirement is no-work, passive investing in syndications is an approach that could also yield better returns. (I have no shame about other General Partners doing better for me on deals than I do for myself with a lot more effort and risk on certain projects.)
"Having your affairs in order" at any age is prudent. My brusque mother says, "if I get hit by a bus tomorrow...." Whether it's fellow trustees in a trust or other beneficiaries, have that "set up" from the start.
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Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
3y
Are you kidding me?!!! Noooooo - you're smarter than your previous self, you have knowledge of real estate from your career as a realtor as well as resource contacts, and it's a great way to diversify your portfolio with added protection from inflation, stock market volatility, more. But know this: you would be starting a new BUSINESS. It's not like buying a CD - with real estate, you have to maintain, manage, protect it, and make it cash flow. So, I suggest the real question to consider is 'do you want to start a new career as a business owner?' There are risks and with managed risk comes reward.
Some people retire. Others keep on keeping on. A few build empires. All good...
Hope this helps.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
I started at age 46 and by age 52 I was earning enough that I will never have to work again for the rest of my life (though I choose to continue working).
"The best time to plant a tree was 20 years ago. The second best time is today." ~Chinese proverb
The DIY Landlord Book4.7248 Reviews
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Justin BeasleyPro Member
Pigeon Forge, TN · Member since 2020 · 102 posts · 69 votes
3y
Life expectancy steadily increasing. You probably have 30 good years of investing ahead of you! :)
[email protected]
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Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
3y
It's not too late.
Time is the most important ingredient in RE investing, but given you have been in the workforce long enough I believe you should have some money saved up for either cash purchases or very large down payments as well as good credit.
I'm also guessing you have access to some better deals since you have been a realtor for 5 years.
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Lyndsay Zwirlein
Lender · Member since 2020 · 331 posts · 209 votes
3y
Depends on your goals! What would be the purpose? Cash flow, appreciation, leaving a legacy? If you want to leave a legacy for family, I've had clients purchase a property for each child and leave it to them for estate planning. The kid can choose to sell it for college $, keep it as an investment or use it to learn RE investing. Or if you're looking for cash flow, perhaps you purchase a property and utilize a property manager so you don't have the headaches of self management and you aggressively pay down the mortgage to limit your risk as you get into retirement age. I think it depends on your end game and where you want to be in 5-10 years!
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Jeff S.
Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
3y
60 is young @Tim Worgan but too old to make a serious mistake. Right now I would be leery because without a lot of net worth you could lose big time.
You say you are moving comfortably into retirement. That is a good thing at 60. At 70 you want to be financially bullet proof because when your health changes adding a lot of stress is a bad deal. Be careful.
Some keep buying and selling until they die in their 80's but have tons of cash and can afford to make mistakes and still have lots left. Is that you?
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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
3y
@Tim Worgan
I don’t think you’re old at all. I’m 52 and started almost 8 years ago and now make 12k/month net passive cash flow from RE. I bought two houses a year and slowly built up my portfolio with mostly “base hits.” In 5 years, you could easily be bringing in an extra 5k/month or more with RE. I’m sure that’ll help supplement your retirement. Good luck!
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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3y
So you’re feeling good. Everyone said go for it.
What’s your plan?
You need to answer the following questions.
How much risk do you want to take on?
How much do you have available to invest?
What resources do you have available?
a. You’re a realtor.
b. How much cash do you have available or assets at say 65% collateral?
c. How much equity do you have in your house and have you lived there for 2 years as your primary house?
d. What finance mechanism will you use? VA, conventional 5%, 10%, 25%, 40%???
e. Now you should know the deal size you can do depending on asset type.
f. What is you goal and time frame? Example. Do you want to replace say $70,000 per year using Cashflow of $200 per rental unit door per month? Do you want to get appreciation of $1,000,000 in the next 3 years and Cashflow or sale? Looks like you’re in Fort Smith. You have tons of options in your region. Take advantage of that.
You’re going to hear lots of options from people. You need to answer the above questions that develop a solution that works for you.
For example 1:. Do you want to make $1.3mm in three years after taxes with all debt paid off? Obvious answer is yes. But does it fit your risk level? Do you have the existing resources? Do you have access to the financing? More importantly do you have the knowledge?
Example 2: Do you want to make $200 per rental door. Then multiples of that?
You have to run the numbers. Then you have to jump off the cliff.
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Richard Loniewski
Real Estate Agent · NJ · Member since 2021 · 568 posts · 127 votes
3y
Never too late!!
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