So, you’re thinking of moving. You may be out of state, out of town, or maybe you already live in Bellingham and just want to toot your own horn by reading up on why your city is the best. Either
How To Start Investing In Real Estate In Your Twenties
With the real estate market in the Pacific Northwest seeing incredible growth, more and more people are thinking about getting their piece of the pie while they think they can still afford it. It's never too late to get started in real estate investing, and you're never too young to start at least PREPARING for it. Read below for some solid advice from a leading real estate investment expert.
So you’re interested in real estate investing in your twenties? Do you think you’re too young? We’ve got good news for you. You’re not.There are so many advantages to investing in real estate in your twenties. By investing at the age of twenty-something, you will become financially independent as you are able to generate high cash flows. You are also young which means you are more flexible, you have more time on your hands, and you have fewer commitments. If you succeed at investing in your 20s, you may even be able to retire early.Yes, you are usually tight on cash. And yes, you may be short on experience. But the earlier you invest, the more knowledge you will start to gain in the market, and the higher returns you will have by the time you near your retirement.Do not fear that you will not be taken seriously. If you really know the business, age does not matter. Plus, if you ask any older real estate investor, they will tell you that investing young is the smartest thing you could do, and that it is something you will ever regret. Check out our other tips for millennials on real estate investing.
Related: 5 Vital Financial Steps Millennials Must Take
How To Start Investing In Real Estate Tip #1: Make Use of Your Time
Time is both your enemy and your friend. Because you are still young, you have plenty of time to plan out and fulfill your investments. You can make more calculated decisions to evaluate your current financial position to get organized, make more sound plans, set goals, and manage your future business well — because you have the time.BUT, you cannot wait for too long because one day you might wake up and discover that you have missed your opportunity to invest in your prime years. Time can be tricky like that. So never wait for later, and never put your plans off. If you are seriously considering real estate investment in your twenties and want to learn how to start investing in real estate, now is the time.Money will not be the only sacrifice you will make, you are going to also need to sacrifice a large portion of your time — so make sure you can commit.
How To Start Investing In Real Estate Tip #2: Start Networking
Networking is one of the most important aspects of real estate investment. Whether you are just starting out, or whether you have been in the business for years, you should know that your networks are some of your most important assets.If you do not have a real estate network yet, do not worry. Today, meeting people and exposing yourself in the business has never been easier. Start attending local events such as seminars, workshops, open house events and make yourself seen. With today’s technology, you could also meet people through various social networks such as LinkedIn, BiggerPockets, Facebook, and Twitter — and being young as you are, you probably know your way around these networks!Learning how to start investing in real estate can be fostered by your real estate network. Having different connections will present you with the guidance and support of others. What better way is there than to learn from other people’s experiences, and to benefit from their knowledge, expertise, and strategies? You can find many professionals who will be willing to share a grand amount of information with you at no cost whatsoever, so take advantage of every person you meet, and add them to your network. Networking will open up endless opportunities for you.You may also consider carrying out your first investment, or first few investments, with a partner. Partnerships bring together money, knowledge, and previous experience together to make a smart investment. If you are just starting out, do not shy out. Ask your partner questions. They will offer you the opportunity to learn the skills and how-tos of investment first-hand.Finally, remember that your real estate network could be very wide. Get acquainted with real estate investors, accountants, realtors, real estate attorneys, contractors, etc. Every single contact will offer you at least one piece of information that will help you accumulate knowledge for your own investments.
How To Start Investing In Real Estate Tip #3: Research And Educate Yourself
And speaking of knowledge, how much you have can highly affect your success as a real estate investor. You already have an advantage because your accumulated knowledge begins now at an early age so you are already a step ahead against every other real estate investor who is just starting out at a later point in life.You should be thinking about building a solid foundation of information for yourself as an investor. You need to know everything about the market including current trends, mortgage rates, consumer habits, demand, and other factors affecting real estate investment.A wealth of knowledge will help you gain real estate skills like knowing what a good property looks like, where a good location is, and what numbers are good for an investment. You will also learn to identify the most ideal investments to maximize your returns.There are many resources that could help you start learning about real estate investment. Browse through the hundreds of books out there, the blogs, a mentor whom you trust, professionals who can guide you and answer your questions, podcasts, and many others. You have access to a great amount of information, most of which is even free. Mashvisor provides you with information and data analysis on different investment indicators such as cap rate, CoC return, rental return, occupancy rates, optimal investments in different cities and neighborhoods, and other useful data. Aside from our analytical tools, you should also know about our Knowledge Center which offers tens of blogs on different topics in real estate investment. If you are reading this blog, you have probably already made it!Once you have collected sufficient information, you can set up your investment portfolio as a guideline for your business.
How To Start Investing In Real Estate Tip #4: Save MoneyThis one seems like a no brainer, but it is a crucial part of learning how to start investing in real estate. What you may not know is at this point, every penny counts. It is important for you to review your expenses and manage to cut back on the unnecessary ones.The sooner you start to save money, the sooner you can start investing. You may think otherwise, but your first down payment is actually within your reach.Also note that you may need to build up your credit. Get yourself a secure card, only buy what you can afford, and pay your bills in time every month. Keep both your credit and debt history clean.One final tip, if you need to take out a loan, consider taking an FHA insured loan/mortgage plan which offers an only 3.5% down payment. Keep in mind, you will have to live in the property for one year to meet the owner-occupant requirement. Many beginner investors consider using a FHA loan to buy a multi-family property so they can rent one unit and live in the other unit.
How To Start Investing In Real Estate Tip #5: Start SmallDo not shoot for the stars on your very first investment. Start small and simple so you do not overwhelm and/or discourage yourself. For a first investment, consider a simple one-bedroom apartment or single-family home. You may also consider renting out a portion of your own personal home as a way to get started and earn some extra cash.Overall, learning how to start investing in real estate is not a complicated matter, but it is a process. You are going to have to learn to be patient and take action when the time is right. And remember, time is tricky, so you better start now!
This article was written by Peter Abualzolof, Co-Founder & CEO of Mashvisor.
Originally published at www.mashvisor.com.
Latest Blog Posts
Are you looking for a new home? One that utilizes natural light through large windows, has multiple bedrooms, a backyard, sufficient storage space, and more? If so, check out this upcoming open
There is not enough coverage on the topic of home accessibility for the elderly, folks with disabilities, or those who are otherwise impaired by the ways many homes are designed. This may be due to