Why It’s Never Too Late to Start Investing in Real Estate
The following is adapted from Down Home Money.
Investing in real estate was the smartest financial decision I ever made. It truly made me a millionaire—or should I say, my tenants made me a millionaire. They paid for my properties month after month, and my net worth grew year after year as a result.
You may think that you’ve waited too late to change course or start investing in real estate, but it’s never too late. I’m an ordinary person and this investment strategy changed my life. Other ordinary people just like you have found financial freedom through real estate investment too.
They worked hard, earned their money, saved it, and took the steps necessary to break into real estate investment. Now they’re enjoying a steady passive income stream as a result.
My Brother’s Story
One example is my brother, Milt. Milt lives in Kentucky and has worked for the same company for twenty years. He’s in his late fifties, and until 2019, he had never invested in real estate besides his personal home. He was counting on his pension to fund his retirement.
Then Milt’s company declared bankruptcy. His retirement income will be greatly reduced when he does retire, so he looked for another way to provide income. After watching his little sister invest in real estate for many years, Milt finally decided to jump in and buy rental properties.
When the student is ready, the teacher will show up!
By working with a local banker, Milt was able to get some creative financing, including no down payment on a couple of his purchases. This is why having a great bank or lender relationship is so important.
Milt bought his first rental property at auction for $49,000. He got a conventional loan for $53,900 at 5.5 percent interest. His total monthly payment including taxes and insurance is $445 a month. He’s renting it for $650, which means he’s making $205 a month.
After this first property, he went on to buy up to two more properties for under $50,000 each. And as of this writing, he has a fourth house under contract for $25,000.
As you can see, cheap houses are still out there, but you have to search for them. Milt doesn’t wait for them to appear on Zillow or the MLS (Multiple Listing Service). Like so many other savvy investors, he drives around neighborhoods looking for houses that are For Sale by Owner. If he sees a vacant house, Milt talks to the neighbors on either side to find out if they know who owns the vacant house.
Remember, financial freedom takes work. You have to be willing to do what others aren’t.
When you’re looking to invest your money to pursue financial freedom, remember — rental property will generate positive cash flow more quickly than a stock portfolio for far less money up front. Milt invested less than $10,000 in the four houses he bought and then rented. He will earn around $2,850 a month, before expenses. That’s $34,200 annual passive gross income on a less-than-$10,000 investment.
Anyone Can Succeed
To reach your own real estate investment goals, you just have to believe that you can do it and start. Investing in real estate was the smartest financial decision I ever made. It truly made me a millionaire—or should I say, my tenants made me a millionaire. They paid for those properties month after month, and my net worth grew year after year as a result. My brother Milt followed this same strategy and forever changed his financial future.
I have many friends and associates who have used real estate investments to live out their dreams. My friend Chris’s freedom gave him the availability to serve his community as an elected official. Another friend, Randy, simply uses his freedom to travel and enjoy the flexibility to help others when he’s not a set schedule. All of the investors I know are ordinary people like you and me.
The point is that anyone can make their dreams come true through real estate investment. They worked hard, earned their money, saved it, and took the extra steps necessary to break into real estate investment. And they are now enjoying a steady passive income stream as a result.
You can do it too and it’s never too late. Just trust in yourself, your instincts and develop your plan for jumping into your own rental property investments. Your financial freedom will be your reward.
For more advice on how to start your journey in real estate investment, you can find Down Home Money on Amazon.
Myra Oliver is a Kentucky girl who started her career as a hairstylist and became a real estate broker/investor and entrepreneur. She currently owns multiple Keller Williams Realty franchises. After earning enough passive income through smart saving and real estate investments, Myra sold her hair salon and retired in her thirties. Three years later, she found her passion in helping others build their own streams of passive income through real estate investments. Myra lives in Denton, Texas with her husband, Rick, and their chihuahua, Izzy. To learn more about financial freedom and living your best life, visit her website, downhomemoney.com.