Is real estate a good way to generate strong returns for retirement? Absolutely. Having a reasonably steady, and a mostly predictable, income stream is the Holy Grail for retirees. This is why investors love real estate. You’ve heard it time and time again: Cash Is King. It’s most certainly a cliché, but its resonance becomes reality with real estate, particularly with this simple modification:
Here’s why :
According To Ariah Ratsegar Protecting Your Principal One of the most important goals for generating retirement income is lowering risk while protecting your invested capital. This is called principal protection.
Companies that produce consistently high and growing levels of free cash flow for investors (who realize income on a quarterly or monthly basis) are much less likely to go bankrupt and take all of your money with them. While cash flow is not the end-all-be-all to flawless investing, the greatest investors in the world candidly agree that there are times when they will be wrong, so they must plan for that possibility. Cash is that backstop.
Real estate opportunities offering current “cash on cash” returns (a metric used to describe the return you are generating on your initial capital contribution annually) should have enough cash to pay timely distributions and to pay all the expenses of operating and growing the bottom line.
Rental income say, from an office, retail, or multifamily property — is one of the best sources of passive income (called that when you’re not actively managing a property; someone else is) and it’s rivaled by strategically investing for dividends. The theory is simple: the property owner diligently sifts through applicants to find great tenants, and as a result, the investor can more often than not expect to receive current payments.
Buildings Make Sense
No one really knows for certain what actually drives a stock price up or down. But investing in real estate provides a greater degree of control over potential appreciation because there are things the owner can do to boost a property’s value and its income.
A good real estate investment starts with these qualities: a solid structure, an advantageous location, creditworthy tenants, ordinary (not excessive) repairs, annual or scheduled rental rate hikes and the ability to pay the mortgage every month.
There are various ways to invest in real estate. Ariah Rastegar personal preference: private placements, which are offerings that accredited investors can participate in through investment firms. (The Securities and Exchange Commission defines an accredited investor as someone who is financially sophisticated — typically with earned income over $200,000 or $300,000 jointly or a net worth over $1M alone or with a spouse, excluding the value of a primary residence.)
Work With an Adviser
In order to invest in real estate for retirement with the least risk and the potential to generate the highest returns, you must tap into specialized knowledge and skill. I believe for the novice accredited investor, the best way to do this is to speak with a Registered Investment Adviser (RIA) with experience investing in real estate.
An RIA is a fiduciary for you, doesn’t take an upfront fee and is dedicated to guiding you through the jungle of real estate options, which include private placements, private real estate investment trusts (REITs), limited partnerships and other securities. Each of these comes with its own set risks and rewards, as well as terms for participation, such as the required minimum investment or the duration of the investment. Don’t be afraid to tell your RIA what you want to get out of a real estate investment. Outlining your goals will help put you on the path to identify the best strategy for your retirement.
For instance, you could ask your RIA:
“Can I still get to an 8% return per year on my money after fees?” The answer is yes. Currently, real estate investments in emerging, secondary, or tertiary markets (think of areas like San Marcos, Texas or Columbus, Ohio), can provide an 8% return if done correctly.
Here’s another tip:
If you have personal access to the actual owner/operator or the professional investment manager of a property, you will put yourself in a position to potentially get superior returns after fees.
Talk Taxes, Too
In my experience, strategic tax planning is one of the most overlooked topics for investors new to the real estate landscape. So be sure to consult with your CPA to discuss the various tax benefits specifically suited for retirement. Talk about things like whether to invest through your IRA and how depreciation can help you keep more of the rental income you collect after taxes.
Key discussions with an investment adviser and a tax adviser can go a long way toward finding the most appropriate real estate investments for the retirement income you desire. These are some Important ways to invest in real estate by Ariah Rastegar.
Ariah Rastegar learned many lessons from the housing market crash of 2008 and the recession of that time. After heading a private equity investment firm’s opening of a New York City office, Ariah Rastegar returned to his home state of Texas where he started Rastegar Equity Partners, which primarily invests in commercial real estate throughout the United States. One of the primary investments he puts his eyes on it is in self-storage companies, which Rastegar and his associates consider recession-resilient. Here’s why they are usually good commercial real estate investments:
Simply put, self-storage businesses present excellent business and real estate investment opportunities because people use these businesses in times of economic stress and economic upswings. No matter what is happening with the housing market, people will always need a place to store their belongings. Amid a housing crisis, people will make more use of self-storage facilities as well. These recession-resilient businesses can give investors great opportunities even when the market seems sluggish and not worthy of investment. Ariah Rastegar believes in sharing his strategies, providing full transparency and educating the public.
Ariah Rastegar invests more prodigiously in commercial real estate on behalf of his clients for Rastegar Equity Partners. He built his experience in finance and investing by opening an offshoot of the Austin, Texas based company World Class Capital Group in New York City. Over time, he built enough experience, as well as a list of impressed investors and customers, to open his own investment group, Rastegar Equity Partners, in Dallas, Texas. Rastegar Equity Partners invests in recession- resilient real estate properties throughout the united states, mostly in discount retail industries or self-storage. Here are three keys for investing in commercial real estate that Rastegar has come across in his long career:
- Globalization affects commercial real estate everywhere. At the end of 2016, investment in commercial real estate around the world was as prevalent and profitable as ever. As companies with real estate holdings expand to new markets around the world, more new assets become available to investors like Ariah Rastegar.
- Changing demographics. The world is getting younger by the day, and real estate market investors have to keep up. Even as the world gets younger, in the United States, the population is aging. As the Baby Boomer generation ages, the needs of this large swath of people changes. Investors must account for this change.
- Technology affects investments. Changing and improving technologies have changed how workforces in retail and other industries have interacted with their work and their environment. Many industrial and commercial real estate investors are always looking for the next area of the United States to support a tech boom, like Silicon Valley, Austin, Texas, and elsewhere.
Ariah Rastegar has invested in properties across the United States.
Are you looking for yourself a win- win methods for investing in real estate? On your retirement or during your business span are you looking some other source of income that can help you to earn a lot? Continue reading
Ariah Rastegar is among many professionals seeking to build an empire, but he sets himself apart in that he focuses not just on his wealth, but also on his well-being. To those with the mind of a millionaire, like Ariah Rastegar, health and wealth often go hand-in-hand. How will you earn your first million dollars if you’re constantly stressed, upset and unhealthy?
Focusing on enriching your life with things that make you happy can be the key to your professional success. The happier and more balanced you are as an individual, the easier it will be for you to maintain your brand. Start with habits like these:
- Buy Experiences, Not Things – When you buy a new car and drive it home, it is instantly worth less than you paid for it, meaning that your investment is already depreciating. In contrast, when you spend money on a vacation, the memory of that experience will only get better in time, which means that your investment appreciates instead. As such, buying experiences instead of things often leads to more happiness and less habitual spending.
- Be Charitable – Using your money to help those who need it can produce strong positivity in yourself while eliciting happiness in others. Being charitable also reflects positively on your character, polishing your professional image and potentially increasing your income portfolio.
Wealthy businesspersons like Ariah Rastegar often appear happy with where they are in life not because of their monetary standing, but because of the well-being that they maintain to reach that standing. Approaching the foundation of your empire with this in mind might increase your chances of success.
Ari Rastegar is the founder of Rastegar Equity Partners. He got his start in real estate as a ground-up developer of residential houses in Spring Branch, Texas. From there he went into commercial real estate. He attended Texas A&M University, graduating cum laude with a degree in English. He later went to St. Mary’s University School of Law, where he earned his Juris Doctorate.
Professionals like Ariah Rastegar are often either naturally inclined toward the traits of the wealthy or they make educating themselves on the secrets of others a top priority. Even if your inherent traits match those of who you aspire to be like, studying secrets like those below can help you reach your first million dollars with fewer struggles.
- Strive to be a Multimillionaire – Once you’ve decided that you want to be wealthy, take it one step further. Decide that you want to be a multimillionaire and work to reach that goal. Write down your aspirations, every day if it helps, and make sure that you work for it constantly. Even if you do not become a multimillionaire, you’ll build your wealth with this mindset.
- Treat Wealth as a Duty – While it is wise to be frugal, stop thinking as though you are stuck in poverty. When you accept in your mind that everyone has the potential to become wealthy, it is easier to make it your duty to seize that potential. Those who treat wealth as their duty rarely fail.
If you are in the process of building your empire, a mentor can let you in on trade secrets and give you the little extra that you need to succeed. Consider seeking an executive similar to Ariah Rastegar in your field and reaching out to him or her as a possible mentor – you might be surprised at the results.