Helping Women Make Smart Investment Decisions
How to Use Real Estate to Fund Your Retirement and Create Intergenerational Wealth
More people have made their fortunes from investing in real estate than any other type of investment. The list below contains proven strategies people have used for decades to increase their wealth, fund their retirement, and pass their wealth to the next generation.
1. Purchase a property to hold and rent
Rather than flipping your investment properties, hold them and use the rental income to supplement your retirement income.
2. Rent a room in your current property
Many homeowners have one or more rooms they’re not using. This is especially true for empty nesters who still own a large family home. The extra income can help them save for retirement and supplement their income once they retire.
3. Fix and flip houses
Purchase a fixer-upper, make renovations, and sell the property for a profit to fund your retirement.
4. Invest in a vacation rental
Purchase a vacation home and rent it out to tourists or travelers to generate income during retirement.
5. Commercial properties
Commercial properties, such as office buildings and shopping centers, can be excellent ways to generate passive income for retirement.
You can invest in real estate projects through crowdfunding platforms, which allow you to pool your money with other investors to fund the purchase of a property.
7. Real Estate Investment Trusts (REITs)
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs offer investors the opportunity to invest in a diversified portfolio of real estate assets without the hassle of managing individual properties. They can also be an excellent way to fund your retirement.
8. Rent-to-own and/or lease option
A rent-to-own program allows you to rent the property and then apply part of your rent towards the down payment. Once you accumulate the amount required for a down payment, you have the option of purchasing the property, or when you end your lease, moving to a different property.
9. House hacking
This is a popular strategy for small investors, especially when they’re first getting started. You purchase a multi-family property, live in one unit, and rent out the other units to generate income. If the property has 1-4 units, it qualifies for the same type of financing as with a single-family residence including access to FHA, VA, and USDA mortgage financing.
10. Property management
You can manage a portfolio of rental properties for other investors and collect a fee for your services. The typical fee is 10 percent of the gross rent, but keep in mind, you’ll be handling all the thorny issues of ownership such as non-payment of rents, damage to the property, evictions, etc.
11. Invest in a mobile home park
Due to the affordability crisis coupled with a huge housing shortage, mobile home parks can be an excellent investment since they are one of the least expensive ways for lower income buyers to become homeowners.
12. Invest in a self-storage facility
Self-storage facilities can be a good investment since almost everyone seems to be in need of additional storage space.