A Cal for Grey Beard REI's

[Buddy Holmes]

I am new to BP and have been listening to the old pod-casts from the beginning (I'm up to #84 now) as well as the new ones. One thing that has hit me is that most of the discussions are about younger folk working to be able to live off their REI income. This is great and I can say, "Wow I wish I had started early as well". However, as a retired Aerospace Engineer, I can say I have had a great time as a W2 earner as well.

     I did make a couple of RE deals in my younger years, one a purchase of 25 Acres just North of Atlanta, is having significant payoff now after 58 years of paying taxes on it.

     When I retired 12 years ago, I had the land investment and a would-have-been retirement home a 1000 yards off the ocean in Ormond Beach, FL. In retirement, I was introduced to REI by a new Brother-in-law in Orange County, CA. I bought a couple of SFR’s there for the great appreciation seen as the California bubble was growing before the bust. They worked out fine in the end and although not much cash flow, they lead me to other Cash flow positive investments in St Simons Island, GA and Charleston, SC. Recently we sold one SFR in CA and moved the proceeds via 1031 to three SFR’s in Charleston, SC. Having learned for experience, these were selected for their ability to return a good cash flow.

As a retiree I have learned that IRA's and 401K are good for collecting some wealth, but are not good vehicles for bypassing Uncle Sam's greedy cut at tax time. I have learned about self directed IRA's and DST (Delaware Statutory Trusts) and how they can provide added cash flow along with significant tax shelter.

My point is that it is never too late to learn and grow into a REI!

So any Grey-beard couch potatoes out there, get up, tune into BP and get back to work!

Cheers, Buddy