1. Take money out of your existing home:
    • Downsize:
      • Move to a smaller, cheaper home. Use equity left over.
      • You can deduct $250,000 per person
      • Also reduces your home expenses
    • Equity Loan:
      • Will boost your cash flow
      • but could increase monthly mortgage payments
    • Reverse Mortgage:
      • Age 62 or older
      • Proceeds taken as lump sum, credit line, monthly payment…
      • No upfront payments to make
      • Interest charges are added to loan
      • Paid when home is sold
      • Do not owe more than the sale of the house
      • Other assets are protected
      • But fees, interests etc. can drain equity for heirs
      • Must pay off loan if borrower moves
      • Eliminates downsizing option
  2. REITS
    • Publicly traded real estate investment trusts
    • Own commercial, residential, or industrial property, or mortgage securities
    • Pass through at least 90% to investors
    • Income more on pass through rather than capital gains though it can also have capital gains…
    • But moves with the real estate industry… timing is important…
    • Diversified portfolio of properties
    • Professionally managed
    • Good for passive investors
    • Good for short-term cash flow… not so for long-term gains
  3. Purchasing investment properties
    • From renting out a bedroom in your home to buying multi-family or commercial properties…
    • Borrow at least half of the cost of the rental property… at higher risk and profit
    • Good properties earn at least 6 percent a year on the investment
    • Set up a LLC with self-directed IRA with checkbook feature…
    • Possibility of lots of work and having all eggs in the basket
  4. Join Crowdfunding Projects
    • Groundfloor, RealtyShare
    • Project based
    • Investment firm vets and posts info but does not guarantee return
    • Spread and minimize risk… lower threshold
    • Often asked to commit money 5 years or longer

Source: 4 ways real estate can turbocharge your retirement income (CNBC)

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