Retire early with real estate! – Is 5 to 10 years early enough?

Lounging in a hammock on beach I remember a few years before 2008, late night TV was packed with get rich quick real estate infomercials! Every one was saying, “Retire early with real estate!”

Maybe you saw some of them and were intrigued like I was. I was taken with the ease in which these gurus acquired movie-star-like lifestyles.

All they did was purchase a house and wait till the price went up. It was like magic and I wanted some of that action too! Who wouldn’t?

I could totally DO this!, I would say to myself. Then I would get on the phone or visit the promotional website, whip out my credit card and buy another course!

All the “behind the scenes detail” that goes into investing in real estate was unknown to me and those infomercials weren’t going to tell me about them either, which leads me to this next question.

Why is it that we are so willing to fork out hundreds even thousands for that “dream in a box” but when we open it we instantly have buyers remorse?

Emotion…. Plain and simple. We buy on emotion and marketers know this.

Once we open that “dream box” and find out we’ve been sold something that won’t deliver we’ll say ALL that stuff is just hype and guard against any future soliciting.

REALITY CHECK!! Like most things worth having it will require an actionable plan, strategic teammates, and time!

We all want to have extra retirement income!

Work or Retire signs

I get it! Really I do.

I don’t want to accuse anyone of not wanting to plan or work their plan. I know you, like most people, are very hard working.

You are most likely holding down a full-time job while raising a family and serving in other organizations.

Life’s tough and that’s they way it should be in order for us to grow and learn.

But because you are so darn hard working you don’t have the time and resources to find that extra retirement income!! Or implement the ideas that came in the dream box.

That’s just my point! You and I don’t really have all the time in the world to become experts or professionals in stocks or bonds or real estate etc…

No worries! I have just the thing for you! Surprise! It’s real estate!!

Confused? I can see how you might be. Let me explain.

WARNING!!! You can be successful in real estate and NOT be an expert!

If you aren’t familiar with some of the awesome perks that come with real estate you’ll want to peruse nine different points outlined in other posts.

In one of those posts I talk about how it is literally the simplest business plan around. You control the real estate and someone pays you to use it! It’s really that simple.

Increase your understanding and download the entire book Strait Path to Real Estate Wealth for FREE by filling out the form on the sidebar!

So how can you use real estate as a retirement plan?

Remember those over-the-top infomercials we mentioned? Some of the things they mention are actually legit! There are many different strategies that you could use but I have found two that are awesome!

This picture shows how simple it can be!

Duplicating properties

One house becomes two and two becomes four and so on!

All you need to do is buy the very first one the right way and that single house will be able to generate a cascading effect as it multiplies into many houses over the next 5 to 10 years!

To understand how simple this really is let me give you an example.

Ogden Lease Option Property

The first step is to buy at a discount. I bought this house for $135,000 and the Comparable Market Analysis (CMA) placed the value at $165,000 which is an 18.78% discount!

This means I could actually turn around and sell this house for the CMA value and make an instant profit, but that’s not my game.

My mortgage plus taxes and insurance comes to $880 per month. I do a simple yet VERY profitable Residential Lease Option program with my local properties. With the monthly rent I clear $470 per month profit or $5,640 per year.

After one or two years I either sell the house to my tenants, this is called Exercising the Option to Purchase, or I refinance and take out roughly $26,000 of the equity.

I’ll use this money plus other monies I have made or saved over this time to purchase two more properties! In another couple years I’ll take those two properties and buy four more. By the end of 10 years I’ll have roughly 16 homes!

With just 6 properties, which is the 5 and 6 year mark, each producing on average a $300 a month positive cash flow you would be realizing $21,600 a year. Not bad for not having to punch a time clock for a 9 to 5!

You increase the number of homes to 25 and you’re at 90k passive income and that’s assuming you are averaging only $300 per/month/property!

As you can see the cycle of growth continues to add a sizable monthly income to my retirement!

Do you have a retirement income plan that will do this?

Properties reproduce

I am a huge opponent of the current mindset that we need to amass a huge pile of cash so that we can use it, bit by bit, to live on during retirement.

Let me ask you a question.

Would you spend 30 years building your dream home brick by brick board by board just to start tearing it down brick by brick board by board once it was built?

Of course you wouldn’t! You still need a place to stay right? You would much rather have your dream home be a place to create memories, have family parties, and entertain friends while having a steady stream of income every month.

I propose that you take part of that “pile of cash” and move it into cash producing real estate so that when that highly sought after day finally arrives you can retire without worry!

Having a reliable and constant stream of passive income is truly living financially free! The good news is, it doesn’t take 30 years to achieve and you don’t have to tear it down in order to eat.

Find out how simple it can be when you Hire The Power Team who does it ALL FOR YOU!!

Take one last stop before you embark on your journey and get the right map on how to get where you want to be.

I offer a FREE Game Plan to everyone who wants to see what their 5 – 10 year retirement could look like and the exact steps to get there!

– Retire early with real estate! – Is 5 to 10 years early enough? By Joe Nielsen

2 Comments

Pahul

( May 20, 2015 )
Reply

1)Do you think you’ll have enough money for a cobomrtafle retirement?Does not apply. I love my career as an artist and hope to die with the tools of the trade in my hands.2) Do you plan on receiving the social security benefits that have been promised to you?Sure, I’m a boomer. I plan to tap in at 62. But my intent is to pass it along every month to someone in one of the following generations. There’s some delicious irony there.3) What % of your income do you save today for retirement?When I work my savings rate is usually around 40-50%. But let me say that life so far has been like a long summer vacation. I have taken as much as a year to enjoy myself and recharge my batteries several times in my adult life. I rarely reject an offer to go river rafting or fishing (which are very low cost and high enjoyment activities). On the financial side, I sold my suburban home four years ago and rent a small farm now. The cash is well invested (I hope) since it has more than doubled in that time. To buy in my locale would cost me at least triple what I now pay in rent. 4) Where would you like to retire?I’m an avid, no, really I’m a compulsive food gardener and tree grower. Soil, water, four real seasons and open spaces blow my skirt up. I’ll stay in the USA and take my chances with the coming times since my tribe is here. 5) How old are you, and what age do you plan on retiring?The answer to part one is that I’m just about to turn 61. For part B see the above.A little rambling: The real goal is to have a good life. Keep it simple and full of heart. Be joyful doing vigorous work. Eat healthy food not poisonous crap. My key to having enough money has been to tighten down the outflow spigot rather than exert myself in the mind numbing quest for big bucks. Oh yeah, exchange goods and services with others because the return is much greater (though a bit difficult to quantify). You have all seen pictures of some ancient and very wrinkled peasant in bib overalls holding a bunch of grapes with a twinkle in his eye and a wise smile on his face. This is not a bad goal. Finally, it is better to die deservedly well loved than rich.
- Joe Nielsen
  
  ( May 21, 2015 )
  Reply
  
  Hi Pahul,
  Great comments and insight into your personal plan!
  I think you hit the nail on the head as they would say. The elusive term “retirement” really depends on the individual and their particular wants and needs.
  Surely not everyone wants or needs millions of dollars live a grounded, charitable, and highly satisfying retirement.
  I think really the only thing I would add here is that no matter how minimalist someone chooses to live there will come a time in life sooner or later where medical expenses, inflation, and taxes begin to eat away at stagnant savings.
  Also keep in mind that there are always two sides to a balance sheet. What I mean by this is the farm you are renting which may be far below the cost to own is actually creating a profit for the actual owner of the farm. Your rent pays their bills. Wouldn’t it be nice to be on that side of the balance sheet where someone is paying you for use of your property while you receive the benefits of ownership and monthly income that doesn’t require any effort on your part. I love providing “farms” for folks. Happy retirement!