For many people, retirement brings a sense of freedom. After spending years working in a job for a company, it’s nice to take a step back and start doing what you like to do. This could be golfing, setting sail on your sailboat or investing time and energy into new projects. For some people, a common hobby is investing in real estate. No matter what you did in a previous career, you can easily get into the business of real estate investing.
Where to Invest Your Time & Effort
As soon as you retire, you’ll notice that you have a lot of time on your hands. This is the perfect time to get into investing and you have a few options as to what you can get started with.
Wholesale Real Estate
Wholesale real estate refers to finding houses (either on the market or off), establishing a purchasing contract with the homeowner and then selling the rights of that contractor to a buyer. For a lot of seniors who want to get into real estate investing but don’t have a lot of upfront capital to work with, wholesale real estate is a great place to get started. The average wholesale deal can net as much as $15,000.
Investing In Senior Communities
Another option you have is investing in a senior living community. Since you are of retirement age, you are now able to buy in a 55 and older community. This gives you the opportunity to buy property in a senior community as a second home or as a rental, which can bring in monthly income. When getting started with investing in a senior living community, start your property search by looking in newer areas or new construction senior living. These newer areas will attract the most buyers (in-state or out-of-state) and will ensure your resell value remains high.
Rental Properties
Another great way to get into real estate as a senior is to buy a property to use as a rental. If you can get a low-interest rate and a low monthly mortgage, you may be able to charge as much as 50% more to renters. This allows you to build income while still maintaining the property’s monthly mortgage. If you are doing well in retirement and have enough capital to work with, consider investing in an apartment building or a duplex home. These building types offer multiple rental opportunities, which will allow you to double or triple your income in a short amount of time.
Where to Get Started
With easy access to the internet and several online tools, getting started with real estate is pretty easy. Seniors can begin their real estate journey by deciding if they want to get into wholesaling real estate, investing in a 55 and older community or investing in properties to become rental income. In any type of investment you choose, you’ll be sure to find plenty of resources to help you get started. Or, if you can, reach out to someone who is already successful with these investments. If they are willing to, they could share their experience and how they became successful.