Real Estate… Answered

Jack Canfield, the author of Success Principles and Chicken Soup for the Soul, likes to tell a story about a retired woman that’s dreaming of going back to college. She hesitates because it will take at least four years to finish, and by that time, she will be 69 years old. Jack finally persuaded her to pursue her dream with the following point: in four years, you’re going to be 69 years old, regardless of whether you go to school or not. You might as well use that time wisely.

The point is you are never too old to get started with real estate investing. You’ll be getting older whether you start investing or not. One of my most motivated and inspiring investors is well into his 80s, and he’s making more progress than people in their 30s. His goal is simple. Before he passes away, he wants to build up $1 million to leave for his children and give them the head start he never had. I think that’s an admirable goal, and I’m doing everything I can to help him reach it.

If you feel like you’re in the same situation, here are a few tips to help you get started:

Leverage Your Credibility

People automatically assume that their elders are both trustworthy and knowledgeable:

• Motivated sellers are more likely to believe you can close
• Bankers are more likely to believe you can make your payments
• Private lenders are more likely to believe your deals are safe and profitable

Whether you know what you’re doing or not, nearly everyone will give you the benefit of the doubt.

Exploit it.

When you’re talking to a motivated seller, banker, private lender, or anyone else that measures your credibility, let them believe you have a lifetime of successes and experience behind you. It doesn’t matter if it’s true. Most people will assume you are more knowledgeable just because you’re older than they are. Of course, it won’t last if you screw up, but when you’re just getting started, your age may give you that extra credibility you need to close your first real estate investments.

Leverage Your Network

Think about your network as compared to someone in their 30s. When you’re in your 30s, the only people you know are your relatives, college buddies, and the people at work. Most of them are struggling to succeed, just like you. So, when you go to them for help, they don’t have much to offer. They’re as clueless and unsuccessful as you.

When you’re nearing retirement, that’s not the case. You’ve probably worked several jobs, lived in several places, and built up a Rolodex with thousands of people. Your contacts are also older, so the chances of them being successful and knowledgeable are much higher. I’d guess they’re also less self-centered and more ready to help people.

So, ask them for help. If you need a top-notch connection with the bank, go through your Rolodex and call someone that might know someone. Several of your long-time friends might also have miniature real estate empires of their own. Contact them and ask them to look over your deals and give their thoughts. If you have the guts, you might also ask everyone you know to invest in your projects. And because you’re a longtime friend, they’re more likely to agree.

Leverage Your Free Time

Chances are, you also have more free time than people in their 30s. You might have one or two retirements from different jobs, as well as a check from Social Security. It may not be much, but if you can figure out a way to squeak by on that income, you can dedicate all of your time to building your real estate investment business.

You’ll be surprised how much you can accomplish in a short amount of time. Where other investors can only look at two or three real estate investments per week, you can look at five or more per day. You’ll be able to rifle through opportunities much faster than other investors, and you’ll probably get to the good deals first. The result is you’ll start making money faster –probably giving you years, if not decades, to enjoy the fruits of your labor.