Real estate is being added to the investment portfolios of Americans and more are looking for real estate to provide a passive income stream in their retirement years.
Real estate investing sometimes gets a bad rap from investment advisers. They often prefer REIT's and other supposed easier forms of investing in real estate because it's easy for them to track and control their clients portfolios. I don't begrudge them for that attitude, I just think it short changes an investor and eliminates a very powerful source of income when investors will need it most...retirement.
That powerful source of income is the passive stream created from owning a rental property portfolio. Passive because, just as investing in a REIT, the investor does not have to actively participate in the management. They simply reap the benefit of proper planning with the right companies in the right areas and when they are ready to retire they have a stream of consistent income from their rental portfolio.
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I recently wrote an article for BiggerPockets.com on this exact topic. When it comes to retirement planning and preparation, passive income is an absolute must. When buying real estate investment properties, the passive part is the key. I noted in the BiggerPockets.com article that many retirees or those closing in on retirement very quickly are realizing that without a passive income stream that is consistent and tied to a hard asset with value, they will have to drastically change their standard of living. Read the article and remember...
It is never too early to start properly planning your retirement. The quicker you can replace your income passively, the quicker you can dictate your own retirement plan!