There are a lot of what ifs in real estate. Often, it’s the what ifs that hold us back from financial independence through real estate investing. What if I don’t have time? What if I don’t know what I’m doing? Yet, the biggest what if of all is this: What if it’s too late for me to get started?
It’s the most common hesitation I hear.
Many think that if they didn’t start investing in real estate years ago, it’s too late—that their investment won’t pay off. In fact, real estate has the unique capability to help you catch up, especially in your later years, while still not putting your retirement at risk.
The real question you should be asking is: Why not now? Now is always a great time to start. Whether you’re at the end of your career or just think that you’ve missed the boat on the “best market,” it’s time to embark on the real estate investing adventure.
Let’s explore why it’s never too late to invest in real estate and some ways to overcome this common-but-mistaken belief holding us back.
Where many think investing later in life is a disadvantage, it’s actually not. For one thing, high-income earners late in their career have a lot more financial stability. Maybe your kids are a bit older, most of your debts are paid off, and you’re in a financially good position.
That bedrock of stability actually gives you an investment advantage. You can actually get out there and invest in opportunities that many just starting don’t have access to. There’s an established network waiting for you—connections that can open doors in the real estate world.
But this network doesn’t just open up investment opportunities; it also acts as your educational resource for investing. The world of real estate investment is very open and collaborative, and others are willing to teach you the ins and outs of the investment world.
Separate from that, your experience has given you the invaluable ability to ask the right questions. You’re likely more detail-oriented, have honed people skills, know how to see risk in the right way, and, most importantly, you’ve accumulated years of wisdom—all crucial to making smart investment decisions. If you’ve maintained your own practice, you’ve come to the real estate investment world with the business acumen that will give you a head start.
In many ways, your experience and stability puts you ahead of the game when it comes to capitalizing on a given market cycle, meaning you’re primed to achieve the investment goals you set for yourself.
When starting real estate investment, education is key. Take courses, read books, attend conferences, and surround yourself with as many communities of like-minded people as you can. Hear as many stories from these folks as possible—from people who have invested and found success, failures, and have learned from it all.
Two of those communities are Passive Income MD’s Platinum Investor Club and Passive Real Estate Academy. For those interested, I recommend joining the Passive Real Estate Academy Waitlist. We offer courses every spring and fall, constantly updated to reflect the current market. In places like these, not only are you building your wealth of knowledge, you also build your network and find the support necessary to get over the fear of taking your first steps.
In terms of market timing, why is now the right time? Consider the state of the healthcare industry. Maybe you see where medicine is going. And maybe you realize there’s only so much time left before these changes—such as private equity, regulations, or scope creep, just to name a few—will put doctors in a disadvantaged position.
Whether you want to have the financial freedom to leave medicine or want to ensure you have the enduring wealth that allows you to keep working as a physician, the market timing for looking at real estate is now.
What do you want your life to look like in five years? Ten years? After assessing real estate investment opportunities, hopefully you realize that passive income can provide that life for you. But how? In the end, it’s about understanding the market and making informed choices.
First, you’re not looking to solely fund your retirement but to supplement it. Just like our diets and workout routines should change with age, if you’re starting your real estate investment later in life or during a specific cycle, your strategies will differ. In other words, you’re not going to use the same approach today that investors did in the runup to the 2008 recession.
Take Advantage of Downturns
Focus on investments that offer short-term gains and stability in the current market. At the time of publishing, commercial real estate—especially office spaces and multifamily residences—are getting a reset. The prices are coming down significantly. When prices are slashed or foreclosures begin, that’s usually a good time to step in as an investor.
The greatest investments happen during downturns. For those that were sitting on the sidelines in 2008, there’s another great opportunity in front of us.
Diversify Your Investments
Your strategy should also include choosing different types of properties and investment strategies to utilize the decreased risks associated with a diversified portfolio. Early starters, on the other hand, might be more willing to make a few high-risk, high-reward home run investments.
Network with Like-Minded Individuals
Lastly, if you’re not putting out feelers, networking, and connecting with people, start now to take advantage of the current market. I’m not saying you have to take action and invest now, just get your foot in the door. Put yourself around the people that, when the time comes and you’re ready to strike, will help you with the proper due diligence in vetting opportunities.
Ultimately, any strategy you implement should be about finding what works for your goals and timelines.
To those of you wondering if it’s too late, it’s not. Real estate investing can be a powerful tool to enhance your financial security at any age.
Figure out your goals and what you’re trying to achieve, then focus on what actions can help you achieve the desired results. Any seasoned investor will tell you that there is money to be made during every part of any market cycle. They’ve succeeded in good times and bad, and you can tell they are excited about what’s to come.
Remember, it’s not about when you start but how you play the game. Join the Passive Real Estate Academy Waitlist to enroll in courses this spring or fall. We hope to see you there, and we hope to collaborate with your success.
Here’s to your journey in real estate investing, no matter where in life you are starting your adventure.
Peter Kim, MD is the founder of Passive Income MD, the creator of Passive Real Estate Academy, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the Passive Income Doc Facebook Group.
