How To Retire Early with Real Estate Investing

June 21, 2019
by Donald La

It would be nice to retire early. You have probably put in many years at work and would like to retire to enjoy more of the wonderful things that life can offer. When you make smart investments, it is possible to not only retire early, but also have all the money you need. By investing in real estate, you will have a source of income that never runs out. However, you will want to make sure you are investing the right way.

How can you make this happen? Commercial real estate investment is one of the most effective and trusted ways of getting to retirement and still having all the money you could need. If you have wondered just what you should do with money that you have been saving, now is the time to think about real estate. Let’s take a closer look at just why commercial real estate investing could be the ideal solution for you.

Increase Your Knowledge in Real Estate

It is important to make sure that you are investing wisely, and not merely buying up any of the commercial properties that are available in your area. You want to make smart investments that will be able to provide an income for you. Buying properties that don’t have the capability of producing a solid income month after month are not worthwhile. Always take the time to learn more about the current and projected market and economy in the areas where you are considering investing. This will give you a better idea of not only where you should be looking to invest, but also the types of commercial properties that you will want to buy for the investment.

Related: Glossary of Commercial Real Estate Terms

Understand the Concept of a Property’s Lifetime

You must always take the time to properly assess your risk both before you invest in a piece of property, and after you have already invested. This is something that must be done continually.

With commercial real estate, it is important to realize that a building and its value as an investment may not last forever for one reason or another. When learning how to retire early with real estate, this is one of the most important things to remember. There may come a time when the amount of money that it takes for the upkeep and maintenance of the building is greater than what you are able to get in a return each month from the tenants. Always have a plan in place to handle the repairs.

However, it is also possible that the area itself changes, and that the building is no longer as valuable or needed to prospective tenants. This means that they will be looking elsewhere.

It is the job of a wise investor to stop both of these types of problems before they become too big. Get out of the investment that looks like it is starting a downward spiral and reinvest in a better location.

Remember It Is a Long-Term Investment

Investing in real estate is not a get rich quick scheme. It takes time and effort, especially when it comes to commercial real estate. It is important that you consider it a long-term investment and that you always assess the risks before buying a piece of property.

You will be able to make retirement money from commercial real estate investments, but as with so many other things in life that are worthwhile, it takes time to get it set up and running properly. Patience, along with due diligence in choosing the right properties, are essential to success in this field.

Work With Professionals

For those who have never invested in commercial property, and even for those who might already have a commercial property or two, it can be a difficult field to understand. This means that when you are learning how to retire early with real estate, you will want to make sure that you are working with professionals who know and understand the various aspects of the field. There are professionals who provide services from finding the right properties, helping with the purchase, management of the properties, handling of your taxes, and more. The cost of working with those who are truly knowledgeable is well worth it.

Why Real Estate?

Although commercial real estate is likely not going to be the only way that you prepare for retirement and find ways to fund your nest egg, it truly is one of the very best. There is often more safety when it comes to investing in real estate, as businesses will always need a place to set up shop. Whether it is a retail building, a strip mall, a factory, or any other type of building, there are likely to be a number of potential tenants who will be interested. Compare this to many of the other retirement investment options out there, such as stocks, that do not have any type of guarantees at all. With real estate, you have real property that could be sold and liquidated if needed.

Take the Needed Time to Find the Right Investment

The idea of investing in real estate can be quite exciting. However, it is important to make sure that you don’t leap before you do a thorough job of looking. When you see a potential investment that looks like it is a good deal, you still need to take a step back and make sure that there is true potential in the property. How much is it making right now for the current owner? How much would it make for you? Only buy when you find the perfect commercial property.

Donald La, licensed commercial property broker with years of expertise, has handled many commercial property transactions and is knowledgeable in the San Gabriel Valley and Los Angeles Counties. Contact Donald with any questions regarding commercial real estate investing today.

About the author
Donald La
Donald La
Donald is a licensed Commercial Real Estate Broker specializing in purchases and sales in the San Gabriel Valley. Donald and his father have a combined 35+ years experience in real estate and are heavily invested in the newest tools and technology to stay competitive and help their clients grow.