Necessary prerequisites for Real Estate Investing?

Question

Hello everyone!

I am a senior in college, looking to get a job in civil engineering and then gradually transition to RE full time, although I'm not sure what that will look like. As a student with some student debt, should I completely pay this off before I start investing in RE? Also, Should I have a solid amount of money invested into the stock market via a 401k/Roth IRA/Brokerage account before I dive into RE investing?

Carolyn Yates · Answer

It's hard to argue with any of the previous advice.  You may want to consider house hacking as your first investment.  There are many loan options available for a new home buyer and you could rent out rooms to cover the cost of the mortgage.  With the money you save on housing you could use to either pay down your debit or save for another investment or both.

Isaac Bartels · Answer

Thanks for the advice Carolyn! This seems like a happy medium between investing and paying off debt.

Nathan Gesner · Answer

I disagree with most people on this topic. You should invest from a foundation of strong financial discipline. Follow advice from guys like Dave Ramsey to get your debt paid off, your emergency fund established, and everything 100% under control, then you'll be in a strong position to invest and weather any problems that come your way. Dave's "opinion" is nothing new and the kind of discipline used for thousands of years to get personal finances in order.

For those that poo-poo Dave Ramsey, his advice is for personal finances and not all of it applies to investing.

Isaac Bartels · Answer

Thanks for this valuable advice!

Andrew Carlson · Answer

@Isaac Bartels

Pay off that student debt…it’s dead weight. I would also consider buying yourself a personal home with some first time home owner low money down program…then get some roommates and house hack. Your killing multiple birds with one stone…

Building equity in a house

Learning about landlording

Living mortgage free to aggressively pay student debt.

Isaac Bartels · Answer

I appreciate your advice Nathan!

Nathan Gesner · Answer

Dave Ramsey says it better:

Isaac Bartels · Answer

Thanks for this advice Nathan! I'm still on the fence about what I should do. Why do you think most people disagree with you? What makes this method better?

Necessary prerequisites for Real Estate Investing?

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