It never ceases to surprise me the range of ages people start to dive into the exciting world of real estate investing. From Millennials just graduating college to full-fledged adults juggling a 9-5 job and raising three children, it is never too early (or too late for that matter) to begin the difficult yet highly rewarding journey.
However, like all things in life, trying something new when you’re younger does make things much easier. So, if you are still a little unsure about getting involved in real estate investing, don’t hesitate too long and give this helpful mini-guide a go. After all, perhaps by reading this, you’ll be inspired to take that leap of faith.
How to Harness What You Have to Start
No matter your age, no matter your disposition in life and no matter your surroundings, motivation is something that absolutely everyone can get. So be sure to use that. It is true that as your age increases, you can become less motivated as you become more complacent with your situation and no longer aim for the stars. However, don’t be one of those people. Stay strong and keep motivated because motivation is something that people and situations can’t take away from you unless you let them.
In today’s day and age, access to all the latest information is literally at your fingertips. So keep in mind that if you aren’t tech-savvy already, practicing until you have a firm grasp on how to use social media can be very beneficial. Also understanding the workings of the internet and your smartphone is crucial. Leveraging technology enables you to reach the masses at a rapid pace if used properly. Not to mention, with a resource as awesome as BiggerPockets, you have a wealth of information just a click away.
One of the best assets a person could ever have is time. Don’t hesitate for too long; otherwise, you might just see the sands of time slip through your fingers. Be sure that you create a solid plan now and follow it until you reap the rewards. Remember, time is something you can never get back!
Similar to business owners trying to increase their networks, a successful real estate investor has to begin building relationships from early on. This is because relationships are a fascinating and powerful tool that can be used to your advantage, so if you do this right, you will be able to have a greater stepping stone for success. Therefore, I strongly suggest that you start building these relationships today, both locally and online. Make sure to go the extra mile when creating value for others and not make it so much about what you can get out of the relationship.
Your First Investment
There is no doubt that whatever your first investment property is, it depends on your current situation. Nevertheless, I strongly encourage that for the majority of people who take their first dip into the sea of real estate investing, it should be a main residence (some form of “house hacking“).
So what other kinds of investments are the most appropriate for those starting out? Well, from what I see, here are two examples of great investments you can make.
The Distressed Property
Buying a cheap house with good potential then renovating and cleaning it up to form a high quality home is not a new story. Buy cheap, improve, sell at a higher price = Profit. Not to mention if you purchase the house with a fixed rate mortgage (strongly suggested), your payment will remain fixed for as long as it takes until you sell it.
The Small Multi-Family
A duplex offers a lot of different options. For example, you and your family might live in half of it while renting the other half out, enabling you to live rent-free and gradually allowing you to start investing in another property. This is because by occupying a small multifamily property, you will most likely be able to lower your monthly expenses while still having the luxury of locking in those low rates available to owner occupants today.
Now go forth and be great!
Newbies: Where are you in your investing process? Any questions about starting out?
Leave your comments below!