Real estate investing for early retirement

I am 44, have a good job and save a big portion of my paycheck every
week in hopes of early retirement. I have maxed out everything I can do
with my company's 401K plan. I am looking to invest in something other
than the stock market and mutual funds. Just seems to unstable and
unreliable.

I live outside Nashville,TN. It seems real estate values in this area
have grown consistently over the last 30 years. Many areas have never
stopped booming. I have a sizable sum saved and think it is time to
get a better return than what a bank savings account has to offer.

I would appreciate some guidance on any of these options I am
considering:

- Purchasing land- There is ~50 acres very close to a nearby boom area.
Seems land all around here is in very very short supply. Values have
gone up exponentionally. What are the pro's and con's to this type of
investing?

- Rental property- I had considered buying a couple rental units. A
little concerned as to the typical landlord issues. What are the
benefits of renting out property? What shoudl I be looking for?

- Buy, fixup and sell- I have a brother has been in construction all
his life, Currently a foreman with a commercial construction firm. He
would like us to invest in these types of properties. He naturally has
all the connections for repairs. Sounds too easy. What are the pit
falls?

- Apartments- Sounds pretty scary to me.

Any other things I should consider?

Re: Real estate investing for early retirement

Purchasing raw land is the riskiest. Real estate is all about timing.
If yours is bad, you may not be able to sell it for enough to break
even for several agonizing years. Most people will then sell out when
the market starts going back up and then watch others make a ton of
money on the property they just sold.

You'll have property taxes and mortgage payments the whole time and
only a small percentage of the tax write off you get with investment
income property.

MD

Re: Real estate investing for early retirement

It is not easy for most people to start flipping house with a family
member partner. It takes a few projects to learn some hard lessons and
it often ends up damaging the relationships. I'm actually an optomistic
person and love real estate investing, it's just I had to learn some
hard lessons. None of it has been easy.

At least investors today have the benefit of excellent televsion shows
like "property ladder" and "curb appeal" to teach them some valuable
lessons.

Re: Real estate investing for early retirement

Hi MD,

Thanks for the reply. I really appreciate any advice. I have time and
would still like to do something in real estate;land,
flipping,rentals.... I am not a great reader of books, but do study
subjects in depth on the net. What's the safest way to "dab my toe in
the pool" to get a feel?

Re: Real estate investing for early retirement

"growler" <> wrote in message
news:
>I am 44, have a good job and save a big portion of my paycheck every
> week in hopes of early retirement. I have maxed out everything I can do
> with my company's 401K plan. I am looking to invest in something other
> than the stock market and mutual funds. Just seems to unstable and
> unreliable.

I would recommend that you go to your loacl library or Barnes and Noble and
get a book about real estate investing before you make any moves.



>
> I live outside Nashville,TN. It seems real estate values in this area
> have grown consistently over the last 30 years. Many areas have never
> stopped booming. I have a sizable sum saved and think it is time to
> get a better return than what a bank savings account has to offer.
>
> I would appreciate some guidance on any of these options I am
> considering:
>
> - Purchasing land- There is ~50 acres very close to a nearby boom area.
> Seems land all around here is in very very short supply. Values have
> gone up exponentionally. What are the pro's and con's to this type of
> investing?
>
> - Rental property- I had considered buying a couple rental units. A
> little concerned as to the typical landlord issues. What are the
> benefits of renting out property? What shoudl I be looking for?
>
> - Buy, fixup and sell- I have a brother has been in construction all
> his life, Currently a foreman with a commercial construction firm. He
> would like us to invest in these types of properties. He naturally has
> all the connections for repairs. Sounds too easy. What are the pit
> falls?
>
> - Apartments- Sounds pretty scary to me.
>
> Any other things I should consider?
>

Re: Real estate investing for early retirement

For so many reasons, the safest way to begin is with your personal,
owner occupied, and primary single-family residence. Consider selling
your existing home to get the equity out, move out in a temporary
apartment and find a great deal on a fixer upper.

You'll be able to get a mortgage with terms you would never be able
to obtain on investment property.

Many people make the mistake of going overboard on the rehab.
You've seen the guys who knock out exterior walls to change a normal
closet to a walk-in or find a house with termite damage, whatever.

I like the old southern maxim of "carpet and paint, brain surgery it
ain't".