Most investors wait until they’re in their forties, fifties, or sixties to begin capitalizing on real estate. While there is nothing wrong with investing at those ages, there is an underlying belief among many young folks that it is not possible to participate in the real estate business until a later age. This just isn’t true.
Investing in real estate when you are young – in your twenties (and thirties) is not only possible, but beneficial. In fact you can start while you are in college.
College is the prime time of your life to start thinking about your financial future. A lot of finance gurus say the earlier you start investing and saving – the earlier you get out of the rat race.
But how do you do this?
Start With credit
To begin with you need to immediately start fixing your credit. If you have made faults in your early years regarding credit, or simply have never used credit and therefore don’t have any, investing is not impossible. It will simply take another set of tools to make it happen.
There are dozens of books online that deals with issue of credit repairs. You need to have good credit so that you can obtain loans with good interest rates for real estate investing.
Knowledge is your sword and shield
A lot of 20-somethings believe assignments ended when school concluded, but when it comes to buying houses for sale, as either a home or as an investment, it all begins with homework.
Knowing what makes a good deal a good deal and what could make it an even better deal, what makes a good location a good location and so on, are extremely valuable skills to have. We now have the technology to make this happen. You’ve got a firm grasp on how the internet works, how to handle social media, how to use a smart phone, and how to make a spreadsheet so use your skills to your advantage.
Believe in yourself
There are a lot of people with negative beliefs about rental properties and real estate. Those beliefs are not always founded on facts, but idle talk. Forcing someone to change their beliefs is not easy no matter how promising you think your argument is.
When you are young you only have to convince yourself that investing is a great idea and that this will help you financially. If you invest in rentals or real estate at a young age and make money with investments you won’t have to worry as much about convincing someone it is a good idea. Remember investment is also for the young, the middle-aged and every other kind of person who wants to build serious wealth.
There a million and one ways to invest in real estate, from being a college landlord where you rent a multifamily property (like a duplex or a 4plex) and living in the property while renting out the extra space to other college students or individuals or by buying houses for sale and flipping them for a profit. The opportunities are endless.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.