Hands On Real Estate Investing

When planning for your retirement, it is extremely important to identify a dependable source of income that will pay your mandatory expenses, such as housing, food, utilities, and healthcare. Social Security is subject to the whims of Congress and/or the President. If Congress and/or the President decide it is necessary to reduce benefits or reduce the cost of living increase (COLA), there is nothing we can do about it. We can gripe and complain, but that won’t change anything!

Corporate pensions are subject to the whims of the Corporation’s Board of Directors. If a corporation goes bankrupt, the Pension Benefit Guarantee Corporation is supposed to guarantee your pension, but you may not receive the full pension and benefits you expected. Congress just passed a bill allowing the pensions of current retirees to be cut. For details, click here.

Retirement plans, such as IRAs and 401Ks, are subject to the whims of the stock market if the IRAs and 401Ks are invested in stocks, bonds, mutual funds, ETFs, etc. During the Great Recession of 2008, the stock market dropped rapidly, losing 40% of it’s value in just a few days time. It takes major personal discipline and steady confidence in the economy to stay in the stock market and wait for it to come back.

It’s also important that your retirement income keep pace with inflation. If your retirement income doesn’t keep pace with the rate of inflation, your monthly income will buy less and less as the years go by. Inflation is an invisible threat. You don’t really notice it until you realize prices are going up for every product and service you need.

What source of income will:

1. keep pace with the rate of inflation?
2. not depend on the fluctuations of the stock market?
3. not depend on the government?

The answer is Rental Income! During the Great Recession of 2008, home prices took a beating, but rental incomes did not! Rental incomes continued to increase with the rate of inflation. The key to dependable rental income is screening prospective tenants. Before a tenant gets past the front door, google them. Check their online profiles such as Facebook and LinkedIn. Most states and/or counties have an online database of court cases. That will tell you if they’ve ever declared bankruptcy or have been foreclosed on. For more details on how to screen prospective tenants, click here. For beginner real estate investors, one of the key factors driving your success is tenant screening. The wrong tenant can deplete your profits! Take advantage of our free offer below and subscribe for our Free Tenant Screening Resource!

We have an uncle who is almost 80 years old. He has worked very hard and saved and invested. He has invested in the stock market and in real estate properties. We asked him recently how he fared during the Great Recession of 2008. He confided to us that he was worried about his stock market investments, but what kept him from panicking was he knew he had dependable rental income. We will never forget those words. He is a very wise and smart man.

Consider adding real estate to your retirement plan. To learn more about building up your credit and saving for a down payment, click here. For details on becoming an expert on your neighborhood/community and finding a good property, click here. For tips on making an offer and negotiating a contract, click here. To learn more about obtaining financing, click here. To learn about settlement, click here. For 5 reasons to manage your own rental property, click here.

For more information on adding real estate to your retirement plan, click here.

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The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.