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Real Estate Investing For Retirement: What To Know

75575292 - real-estate agent sign for home contract property for sale in the office with buyer.

Whether you’re looking to supplement your retirement savings with real estate returns or build a portfolio of diverse investments for retirement, real estate is a solid choice for where to put your money.

Many retirees even venture into real estate investing as another career path post-retirement to keep their minds active.

Regardless of whether you’re currently retired, approaching retirement age, or far off from that point in life, thinking about real estate investing as a retirement strategy is smart.

What You Should Know About Real Estate Investing For Retirement

1. The usefulness of real estate is good for some.

When stocks are up, your retirement nest egg grows. But when there’s a downturn, suddenly diversification of assets is something people wished they’d considered more seriously.

As this US News & World Report article states: Real estate is useful as abuffer against the ups and downsof the stock market.  A portfolio that’s concentrated in stocks and bonds may be more susceptible to volatility in the markets. Adding a rental property into the mix spreads out your risk exposure, providing some insulation against downturns.

2. Rentals create recurring income.

For real estate investors seeking investment income during retirement, it doesn’t all have to come from a pension or 401K. Rental properties return month-over-month recurring income for people before and during retirement.

Of course, you have to buy a rental property, first, and ensure the finances work out in a way that’ll earn you the returns you’re seeking. But for investors looking to become landlords, rental property strategies can be multiplied and earn retirees handsome monthly income when done right.

Rental properties can also grow earnings when they’re located in hot markets. Ryan Coon, co-founder and CEO of Rentalutions, an online property management platform for landlords, says that real estate is an asset that “rises with the tide.” As inflation pushes the prices of goods and services higher, rental rates can be raised accordingly.

3. Use the BRRRR strategy to protect your cash outlay.

The BRRRR strategy is appropriate for new real estate investors, as well as seasoned ones. Because of how the strategy protects one’s cash from getting tied up in a property for a large length of time, investors often find they can repeat the strategy again and again.

The BRRRR method is a powerful way to grow a portfolio. Normally if you want to buy multiple properties, you have to save up each time for the down payment, as well as any money for the rehab. But with BRRRR, you don’t have to wait to save up the down payment and rehab capital for each subsequent property. You can save up for it for the first property and then use the money from the refinance for future purchases.

This is attractive for those thinking of flipping homes during retirement. It can be a wonderful strategy to build upon wealth quickly.

4. Establish generational wealth.

A real estate business is just that – a business. And for people thinking about or entering their golden years, the legacy they leave their children and grandchildren is often top of mind.

Real estate investors can pass on property from generation to generation, conceivably making their descendants’ lives a little bit better. Think about all the college graduates nowadays who are complaining they will never be able to afford a home like their parents due to exorbitant prices.

A real investment portfolio is something that can be turned over to a child or family member to either be managed as a business, or property can be gifted to be resided in by your loved ones.

5.Get a glimpse at the numbers.

If you’re considering investing in rental properties to aid your retirement, or if you’re considering flipping houses during retirement, you want to make sure you’re making sound financial investments either way.

AshmorePartners has written comprehensive guides on calculating ROI for both fix & flip and buy & hold property investments:

The Ultimate Guide To Calculating ROI On A Rental Property Investment

The Ultimate Guide To Calculating ROI On A Fix And Flip Rehab Investment Property

Work With Ashmore Partners, The Best Hard Money Lender Serving PA, NJ, DE All clients work directly with an Ashmore Partners co-founder to ensure stellar advice and consultation by experienced real estate investors. Our rates have no junk fees and no hidden fees. All clients receive access to our profit calculator to estimate your costs and gain visibility into a projected investment return.

Builders Trust Capital Client Success Stories

Partner with an efficient, personable team who has delivered $120,000,000 in real estate loans

Builders Trust Capital Success Story Photo: 1185 Route 9 South, Cape May Courthouse, NJ
  • Purchased $185,000
  • Rehab $150,000
  • ARV $475,000
  • Fix & Flip Philadelphia, PA
Builders Trust Capital Success Story Photo: 10 Anderson, Morristown NJ
  • Purchased $1,675,000
  • Rehab $450,000
  • ARV $3,955,000
  • Fix & Flip Cape May, NJ
Builders Trust Capital Success Story Photo: 10 Anderson, Morristown NJ
  • Purchased $550,000
  • Rehab $208,286
  • ARV $1,005,000
  • Fix & Flip Haddonfield, NJ

How to Finance Your Real Estate Investment

Our process is simple! We handle the entire loan process in-house. Loans are closed in as little as 10 business days.

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Fill in the form or call us at 856-422-3232 so we can contact you and begin working on your loan. We're local and happy to meet with you to learn your funding needs.

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Complete your application and provide supporting documentation.

Proof of Funds

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Your appraisal and title work are ordered. Your application documents are reviewed. Our in-house processing team will contact you with any questions or additional documentation required.

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After underwriting is complete, we make sure your closing docs are ready at the table and funds are disbursed timely so you can start your work without delay.

Testimonials

Photo of Alexandra Petruchenya

I appreciate your team's support during the entire rehab process for my property. This is my first deal, there were a lot of unknowns that came with that. The construction process intimidated me and held me back from doing real estate for several years. Kurt has been phenomenal, he was a wealth of knowledge. I appreciate how he gets in touch to talk through in-scope item completion and aligning on ways to ensure my construction draws are adequate. I'm thankful to have someone who has my business's best interests at heart.

Alexandra Petruchenya recommends Builders Trust Capital
Photo of Sharina Jackson

I recently completed a cash-out refinance transaction with Builders Trust Capital. I would like to say thank you to Anthony for your partnership during this process, your excellent customer service and professionalism made the process easy for me.

Sharina Jackson recommends Builders Trust Capital
Photo of Raphael Akinsete

If you are a newbie investor, I highly recommend Builders Trust Capital because your first few deals will impact your outlook on real estate investment. If you are a seasoned investor, I also recommend the company as they now offer products for both quick flips and long holds. This way you are covered in both your entry and exit strategy. As a longtime client of Builders Trust Capital I can testify that they are the real deal and there are genuinely good people behind this business.

Raphael Akinsete recommends Builders Trust Capital Oct. 2020
Photo of Kristian Latham

Just finished up my first project with the Builders Trust Capital team and wanted to share my appreciation for the good business. Success is often driven by effective relationships, and Builders Trust Capital’s partnership assisted me in strengthening my team all around. The process from beginning to end was smooth and efficient. They are a great partner to have to create opportunities for rookie and veteran investors.

Kristian Latham recommends Builders Trust Capital Aug. 2020
Photo of Timothy Rosenblum

Builders Trust Capital lives up to its name. They have truly been a partner to me with my projects. The process from underwriting to construction inspections has never wavered from their initial promise and Ive always been met with professionalism and efficiency. Rare in this space.

Timothy Rosenblum recommends Builders Trust Capital April. 2021
Photo of Mike Bonadies

Builders Trust Capital is an incredibly responsive and flexible lender for RE investors. They have been able to work with my unique situations and helped us close on properties no one else could. They know their local area well and can offer guidance. I highly suggest them.

Mike Bonadies recommends Builders Trust Capital

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