Real Estate Retirement Plan
Your financial plan may include college funds for children or grandchildren, extensive travel or charitable giving. Whatever the reason, most people who invest in real estate typically look at their investment as extra money (residual income) or a quick opportunity for a lump sum of cash (flipping). Then there are some investors who like to add real estate to their existing stock portfolio to diversify their investments. These investments are called Real Estate Investment Trust (REITS), which are essentially mutual funds that invest in real estate. All are different ways of engaging into real estate investing; however, none of them address how you can actually retire from investing in real estate.
OK, who retired from real estate?
Retiring from real estate is a subject that’s often briefed after a presentation or seminar from a guru selling his product. In an article a few years back, Forbes.com ranked 82 American billionaire real estate investors. Some of the notable names were, of course, Donald Trump, Jorge Perez (self made, originally an urban planner), and Samuel Zell (made a living on buying and selling real estate, founder of Equity Group Investments). Robert H. Laurie (was a real estate mogul and friend of Sam Zell, widowed wife Ann became the one of most philanthropic family in the world).
Some names that have kept a lower profile. Roy Donahue Pebbles (owns a Multi-billion-dollar real estate development company and author of 2 books. Quintin Primo III (Chicago native and founder of Capri Capital, the of most significant and largest African American owned commercial real estate advisory firm in the country).
These guys all had a base vision of investing in real estate to create a lifestyle suitable to their needs and others. They purchased properties one at a time and have become some of America’s richest real estate tycoons. I know you are thinking they are an exception to the rule. The Michael Jordan’s of Real Estate. Keep reading there is more to come………..
How realistic is it to actually retire?
Retiring from real estate is really not that difficult if it’s strategically planned and executed. Eric V. Fullilove, founder of KCI and a real estate expert from Chicago, has been investing in real estate for 25 years allowing him to retire from a very lucrative electrical engineering career by simply buying, selling and holding property while he was working. Now, he’s heading up our real estate consulting division, teaching new and existing real estate investors how to make wise investments, plan for retirement, and fund their children’s college education. It is through his wisdom and vast experience that gives ordinary people who work for a living hope, and the strategies, that they can actually build a real estate portfolio. Retiring as a real estate investor could mean you own six properties that produce income more than your job. It could also mean at the same time owning those six properties for 15 years while working in your career and selling those properties for a profit that greatly exceeds your normal retirement income. These are realistic examples on which many people are capitalizing.
But, I really like my job!
The beauty of real estate is that you can continue to work in your career and still earn a really good living in real estate. Real estate will enhance your life style and ease the discomfort of being vulnerable while working for someone else. YOUR JOB IS NOT PROMISED FOREVER. The reality is that you could lose your job because the company – not you – is not doing well. Imagine owning property that produces income close to your salary and, God forbid, you lose your job. At least you are now comfortable and not worrying about paying your bills. Real estate gives you comfort and a peace of mind as well as a heck of a living!
How can I use it to pay for my kids’ college tuition?
This is another subject where I am surprised at how few people use real estate to pay for college education. You can purchase property for long-term purposes and benefit from not only making money on a monthly basis, but constantly building equity (property value minus what you owe) to eventually pay for your child’s education. In case you are not paying attention, for example, College education at a State school in Illinois is about $33,000.00 per year. If you child goes to an Ivy league like University of Chicago it would increase to almost double $60,000.00.
In a four-year period considering increase in cost, tuition could reach $200,000.00. Ordinary working families don’t have this kind of money for college. If invested properly, you could easily reach 200K in cash in 3-4 years investing in real estate.
You will have a few choices when it’s time for them to enter college: refinance and hold the property or sell the property. This is probably the most overlooked strategy in real estate.
Real estate is doing really bad now!
Are you serious? This is the best time to buy real estate as rates and values are at their lowest in the history of the United States. Theoretically, if you buy real estate today, you will see returns well over 100% within the next five to seven years. Imagine what the return will be in 20 years. Buying so low during this current financial climate results in people just like you seeing net rental income (after all expenses are paid) of $1,400.00 per month on single family and up to $3,000.00 per month on small multi-units (2-4 units). That’s ridiculous money, especially if multiplied by multiple properties. That type of money would pay for daycare, college or a fund retirement.
I’m excited – how do I get started?
We believe the easiest way without major risk is to join our Real Estate Investment Program. It’s totally hands-off and it allows you to continue doing what you are best at. Leave it up to us to lower risk and help you achieve financial freedom or relief.
You could also accomplish this on your own. We would at least recommend buying this book for the fundamentals and details to start out the right way.
Finally, pick the phone up right now and schedule a consultation directly with Eric Fullilove at (866) 896 3752. He will help you set up a plan to meet your retirement, college education fund, or cash flow goals.