Flipping houses is for younger adults who should be working hard to earn some money from their investments. Managing a portfolio of rental properties around Philadelphia is an investment strategy for young men and women who don’t mind running all over the place.
Sometimes the perception is that these highly profitable strategies for investing in real estate are for people starting out in careers, for those more willing to “gamble with their savings” for the future. Even many of the books and videos about real estate investing assume that you’re starting out with nothing.
Real estate investing generates wealth. House flippers in Philadelphia are regularly seeing 20, 30 even 40% cash-on-cash returns on investment. Investors buying houses and renting them out are seeing 10 to 15% cash-on-cash returns in their first year, and they’re earning ongoing streams of monthly cash from these properties plus they’re building equity.
Real estate investing is not just for younger to middle-aged adults. In fact, upper middle-aged to older adults have some big advantages over the younger crowd when they start investing in real estate. There’s no way you’re too old to start investing and partnering with private money lenders for residential real estate PA. Here’s three advantages older adults have in real estate investing.
1. Life experience
As an older adult, you’ve probably purchased a home (or two) and you’ve had the experience of getting approved for a mortgage and likely renegotiating a mortgage. Most twentysomething real estate investors have never done these things. You’re better prepared to start wholesaling, flipping or acquiring houses to rent out. It will likely be easier for you to approach and secure funding from private money lenders for residential real estate PA.
2. Make good use of your capital advantage
You likely have more money saved up that you could move into investing in real estate than new investors in their twenties or thirties. You can afford to make cash offers that will win out over offers conditional on financing. By putting more of your own capital into deals it’s easier to get approved for hard money loans from private money lenders for residential real estate PA, and it may help you negotiate better rates or terms.
3. Network like younger investors can’t
You know people. I bet you know who to contact to repair a roof or rewire an electrical panel. You may know a real estate agent well enough to help you find good investment properties. When you’re not sure who to contact, I bet you have friends who could put you in touch with the right person. Networking is a huge factor in your success as a real estate investor.
Don’t buy into the idea that you have to be younger to start investing in real estate. You have advantages that will make it easier for you to get started and contribute to your success in generating wealth through real estate investing and by partnering with private money lenders for residential real estate PA.