Retirement planning isn’t a major topic of conversation for many young people. Often worried about paying off student debt and the rising cost of living in general. However, a little planning now can pay off big time in the future.
The majority of millionaires (80% or more), got that status through real estate. It’s an asset that is hard to match. The secret to retiring with a million plus portfolio in real estate is to start when you’re young. The younger the better in fact.
If you can buy a home when you’re single that is ideal. Then renovate the basement into a separate apartment and rent out the upstairs. Have the tenant upstairs paying for your mortgage. Even if they aren’t paying enough to cover the whole amount it may get pretty close. This allows you to build equity in your home. All your money can go towards getting rid of the mortgage.
In several years, if you focus on paying down your mortgage, you will have equity built up to that point you can pull some out of your home. Pull that equity out and buy another home with it. Now you rent out that home in its entirety and potentially even make a profit on top of the operating costs. Even breaking even right now you can consider a win.
Now you have two properties that you’re building equity in. As these two build equity you can leverage them in a couple years once more to buy a third property. This process can repeat itself as much as your bank or private lender will allow. Continually building up equity, buying more income producing properties, and reducing the mortgages as much as possible.
Now in a few years, but more likely decades, you’ll have a strong real estate portfolio to rely on when you retire. If you play your cards right you may even be making a larger income from your properties than in your day job. This is the ultimate goal. To have your money making more than you can on your own.
This is not a get rich quick scheme. In reality, it will take most of your life to get to a point your properties could support you. One day though you’ll have a good sized portfolio of properties that you can generate income from and build up equity. Combined they could easily be worth millions. Then you can either have them continue giving you money as long as you’re alive or you can sell them off and collect the windfall.
How you do it is up to you. The secret to getting rich off real estate is starting as soon as possible and following a plan.
Author:Magan Long Phone: 803-524-4518 Dated: July 26th 2016 Views: 2,462 About Magan: ...
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