Retirement is something we all think about, but many of us fail to prepare for it. We think about what we are going to do during retirement and wonder: Will we buy a vacation home and spend half of our time there? Will we pick up a new hobby? Will we get bored and go right back to work?
It turns out, nearly 30 percent of retirees return back to work after their first two years of retirement. This is either because they want something to do that keeps them active, or they find out that they need an additional stream of income.
If you are thinking about retiring, going back to work just a few years after retirement probably does not sound appealing, but the odds are good that you’ll either get bored quickly or want another source of income. So, with that being said, this is all possible with the help of real estate investments.
Four Ways to Get Involved With Real Estate After Retirement:
There are four ways you can get involved with real estate during retirement:
- Real Estate Investment Trusts
A real estate investment trust is a company that owns, operates, or finances income-generating real estate. REITs are the same concept of mutual funds but rather than a compilation of stocks, it owns a collection of properties. REITs have the potential to generate a steady income for investors but don’t have much to offer when it comes to capital appreciation.
- Long Term Rentals
When people think of real estate investing, they most commonly think of buying a residential property and renting it out to someone long-term. If you have someone continuously renting out the property at a good price, this is a great investment opportunity. However, the rent must be high enough to cover mortgage costs, taxes, and other maintenance costs of the property.
- Buying A Second Home And Renting It Out
Buying a second home is similar to buying a residential property and renting it out, but people tend to rent these homes out for a shorter period of time such as a long weekend or week. These homes are commonly turned into vacation homes. Since the home is in a desirable location, you can briefly rent it out and, when it’s not rented, you can enjoy the home for yourself! This is a great option if you’re looking for a vacation home but would also like to benefit from the investment.
Real estate wholesaling is another way to invest in real estate, without ever owning the property. With real estate wholesale, investors purchase the property that is below market price and immediately turn around and sell to another buyer who buys the property at a higher price. The difference in price is the profit for the buyer and if you can find several properties below market price, you’ve got yourself a steady source of income!
How To Get Started
Once you have found the area you would like to invest in, it’s time to find motivated sellers. There are a few ways to do this and if you really want to be successful, its best to have multiple ways of finding motivated sellers. Of course, you can start with the internet with sites such as NMLS portals, Zillow, Realtor.com, or even Craigslist. However, also consider working with an external team to help generate leads. If you are looking for a steady flow of business for your blossoming Real Estate empire, this is an excellent solution.
Why Cold Calling Works
Many people don’t include cold calling as part of their sales strategy because they are uncomfortable talking to someone they don’t know, or they simply just don’t know how. However; cold calling is an effective way to connect with motivated sellers that you might not otherwise discover.
You can find just about anything on the internet, but some people are not on the internet and others don’t use the internet as their primary way to buy and sell properties. This means you have to think outside of the box and connect with those who you might not be able to find so easily. Cold calling allows you to connect with these folks and it’s more effective when it comes to relationship building at scale.
When purchasing properties from a motivated seller, it’s essential to build that relationship with the seller so the deal runs smoothly. At Call Motivated Sellers, not only do we discover leads, but we begin the relationship-building process for you, so your end of the deal goes as smoothly as possible.
Call Motivated Sellers: Helping You Find a Career After Retirement
Retiring or bored in retirement? Now is a great time to get started with real estate!