You have spent the last 30 years or more working hard, paying your bills and raising your family. Now, with only a few years to go before retirement, you may be feeling that panic in your stomach. What will happen if you become ill or incapacitated? What if you need joint replacement surgery or become injured and can no longer work?
Like more and more people in Nevada and across the country, you likely have little or no retirement savings. With a mortgage, student loans and health care costs, who has money for a retirement plan? So, what are your alternatives for creating a secure future without risking the little you have? Some retirement planning experts suggest real estate investment is worth considering.
Real estate options for investors
If you are ready for a great adventure, investment properties may be the next phase of your life. While this is probably not something you can dive into without some preparation, planning and assistance, some have been able to retire comfortably on the income they make from their properties.
So how can you use real estate as the staple in your retirement portfolio? There are a number of options for investing in properties that can provide income. Depending on your skills and resources, you may find one that works for your circumstances, for example:
- Buying land and selling it for a profit
- Purchasing fixer-uppers to remodel and flip
- Investing in commercial properties, such as office space to lease to businesses
- Buying multi-unit residential buildings to rent out
- Remodeling residential homes to rent to families
Before putting your credit on the line or dropping every dime into a down payment, you will want to research the trends. For example, counting on the rents in a multi-unit apartment building to cover the mortgage payment on the building may not pan out if the history of the building shows consistent vacancies or there is little demand for rentals in the area.
Build your team
Owning investment properties as a retirement plan is not as simple as purchasing a building and putting a “for rent” sign in the window. You will likely be dealing with finance companies, taxes, local landlord ordinances and, of course, tenants. To protect your interests, you may find it helpful to network with professionals, such as contractors, tax consultants and fellow investors who can share information and help you avoid pitfalls.
The most important professional may be your real estate attorney. Not only will your attorney advise you on the legal aspects of your purchases and sales, but you can look to this resource for assistance throughout your investment career. Your attorney can guide you through every aspect of real estate investment, from purchasing a property to dealing with tenant issues.