Real estate investing: The perfect career choice for early retirement!
Thinking about it, we all want to retire and have a pitch-perfect life where we could pay the bills and enjoy a vacation or two. Honestly, there aren’t many ways a person could achieve that goal, much less an early retirement. However, in our viewpoint, there isn’t a better choice than real estate investing for that purpose. But, the question is, how do you guarantee a safe, early retirement through real estate investing?
If you too have that question in mind, then this article is exactly what you need. We will present the best steps towards retiring early from the business and securing a level of financial freedom. So, here we go!
Think about your goals
Obviously, the end-goal is making money in real estate. However, what is your definition of making money? Are you planning on getting rich before retiring? I mean, for many people, becoming financially free and retiring early does not have to do with a luxurious lifestyle. All they want is to have some cash flowing each month without any effort. They want to be able to cover the bills and make sure they have a roof over their head as well as being able to afford life’s little delicacies. Don’t get us wrong, though. There is nothing wrong with aiming for a luxurious lifestyle. That is our point. What do you want from real estate investing? What type of life do you want to enjoy? How much do you spend a month and how much would you need to support your lifestyle?
See, the majority of the goal-setting process is based on your unique situation. Therefore, it would be perfect if you just sit down and think it through. Decide what you really want and, most importantly, when you plan on retiring. That allows you to plan according to the number of years you have until the set date.
Get some help
So, before you get into action, make sure you know what you are doing. Of course, we do not mean to get a degree in real estate investing. Rather, hang around people who have experience in the field. Ask questions and seek answers. This will help you get an idea of real estate investments and how they work.
Get your finances in order
For this part of our guide, Mashvisor has a whole article dedicated to it. We are going to talk a little about the topic in general. But, of course, we are going to put the link below this section so you can learn in full detail how to get your finances in order to be able to buy investment properties.
So, in order to be able to buy an investment property, your finances are what you need to look at. These are income generating assets. Therefore, you cannot possibly take the matter lightly. Sure enough, before you even think of buying income properties, you want to look at your debts. Taking care of that will ease the whole process. An income property won’t be one if you are drowning in debt. The next thing you want to look at is your credit score. This is what helps you with getting a mortgage. Bad credit is a big “NO NO” for mortgage lenders. So, make sure you take care of that second.
The rest would be setting a budget since you will need to save up for a down payment as well as the closing costs in addition to some money to pay the bills in the meanwhile. So, click here to learn how to get your finances in order before buying an investment property.
Inch by inch, everything is a cinch!
This saying never goes out of style as it also applies to real estate investing. Our point here is to start small and gradually grow your business. First of all, you can’t just become a landlord by purchasing a luxurious mansion and hope you manage to rent it. Starting small, however, does not mean that you won’t be able to generate a positive cash flow. It just means that you will stay within the category of low risk investments while you set your feet on solid ground. Eventually, you will get to a point where it makes sense to take the next step and purchase more income properties. You will find that your real estate investment portfolio is growing. But, for the beginning, you want to take it easy and slow.
Pick a real estate investing strategy
Here comes the part where you actually start taking direct action towards real estate investing. Investment strategies are there to help you make money in real estate. Therefore, pick the one that makes the most sense for you and your pocket. Maybe rental properties are the best in the business. However, an apartment building might not be the best rental property you want to start with.
As a real estate investor, you want to be able to afford to invest the money but also the time required. Therefore, picking the right rental strategy is key. Some prefer to invest in traditional rentals while other real estate investors favor Airbnb rentals. Regardless, you want to make sure it fits best with your financial capacity as well as schedule.
Note that there are other investment strategies that do not require involvement. REITs and real estate syndication companies are examples of such investment strategies. All in all, ensure that you have what it takes and that it compliments whatever goals you set for your early retirement.
Real estate investing is all about buying right
A career in real estate investing for an early retirement is not just about the number of properties you own. Rather, it is all about the time when you first purchase the investment property. If it’s profitable, hey, perfect! You sure get to enjoy a comfortable life. However, what if it’s not profitable? Well, that is a disaster! But, to avoid that risk, you can start by crunching some numbers. Here is what you need to do:
Calculate the return on investment for every investment property you are about to purchase. This measure is a very good indicator of a profitable investment. It could also help you get an idea of the rental income you can expect from that property.
Also, make an effort to find the best places to buy an investment property. You could do that easily by performing a real estate market analysis. It will also help you find investment properties that promise higher rates of appreciation which makes it even more profitable!
Go with passive real estate investing
I, personally, would love it if I could just buy the income property and forget about the rest as long as it generates a positive cash flow. As a matter of fact, that is possible. Once you own the rental property, get a property manager.
The thing about professional property management is that it saves you the pain of dealing with tenants as well as handling several investment properties at once. All you have to do is pay your property management fees and let them do the work. Join the passive real estate investing club and enjoy the rental income for the rest of your life!
The best real estate investing experience is a click away. So, what are you waiting on, start by signing up to Mashvisor and enjoy our services and products which we guarantee will make your early retirement a fact!