Starting to invest in Real Estate out of college

7 Replies

As a college student graduating in a year with an engineering degree, I would rather start an empire in real estate rental properties. How could I make this a reality?

My recommendation would be to get a W-2 job in a field closely related to real estate.  You mentioned that you are graduating with an engineering degree; if you are a structural or electrical engineer you might find something that deals directly with real estate and real estate investors.  Also it would allow you to pick up properties that require rehab in your area of expertise that others might want to stay away from due to having to pay an external engineer to evaluate.

Originally posted by @Aaron Klatt :

My recommendation would be to get a W-2 job in a field closely related to real estate.  You mentioned that you are graduating with an engineering degree; if you are a structural or electrical engineer you might find something that deals directly with real estate and real estate investors.  Also it would allow you to pick up properties that require rehab in your area of expertise that others might want to stay away from due to having to pay an external engineer to evaluate.

 Thanks for the reply, but I am wondering if it is possible to jump into a valuation path that would lead me to a successful full time rental career as soon as possible. What is the way to learn about valuation so that i can find a deal and get financing? as well as best ways to get financing? I am interested in multifamily housing. (sorry if this is very general)

If you are looking at rentals it will be VERY difficult to get financing without having a stable income first even if the property would theoretically pay for itself on paper. If you want you can become an agent or real estate analyst to evaluate properties for other investors, this way you could learn while on the job and earn a paycheck at the same time. For buy and hold if you go the multifamily route you may be able to use an FHA or FHA 203k loan to purchase your first property with little down, you would be required to live in the property for a period of time but it would be an option to get started sooner rather than later.

Takes money to make money.... W2 easiest way to get funding. If you lack the capital then you need to find a way to connect with those that have it and provide them value. No one is going to trust you with their money or their time unless you establish that you are worth the investment and can deliver.

Not a glamours or motivational answer, but it's honest. 

Not looking for a glamorous answer, thank you for the input. Becoming an agent or analyst seems like the long track versus getting your hands dirty. What would you say is the best source for learning how to evaluate properties for cash flow purposes through rentals?

If you want to get paid to do it the best option will probably be becoming an analyst, otherwise you can just do it on your own for practice with properties you see online.

Agree with @matt k 

Use your engineering degree to make some money.  House hack a modest home or small multifamily.  Get some roommates to pay your mortgage and live like a broken college kid for a few years to save and grow.  

My husband and I will soon have 8 properties. My husband is a teacher and I work part time accounting from home since the kids were born. My boys and I wear hand me downs from others.  I shop sales for food and diapers.   People would probably be shocked to know we own as much as we do though it's not a lot by BP standards and that we have savings in the bank based on our lifestyle.  

There  are some great stories on BP of  quick self made riches most requiring a lot of risk, but most of us take the tortoise approach buying one, then 2 or 3 a year and so forth. 

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