When is the 'right' time to begin investing in Real Estate?

Question

Hey all,

I have been a long time member of Bigger Pockets, but mainly just a lurker. I am looking to get more involved and become a part of this seemingly amazing community. When I ask myself about Real Estate, there's is always one thing that seems to get into my way, when and where should I start? As a university student, I feel like right now is not the time I should begin investing and I should just continue to learn and absorb as many resources as possible. But, is my reasoning right? I feel that because I don't plan on staying in my University location after graduation, that right now would just not be a good time to get started. Once I move somewhere and settle down, then I will begin my journey. I already have plenty of capital to begin, but i'm not sure if i'm in a good position to start investing. Thank you all for your time.

Best

Victor Menasce · Answer

University is a great place to start investing. Student housing is a wonderful investment class. It's counter-cyclical to the broader economy. Even in an economic downturn, students still go to university. You can get parents to sign guarantees on the lease and the property condition. In my experience, if you deliver a quality product to students, they take great care of it.

Once you move away, you can put property management in place, or sell the asset. I'm not seeing an obstacle. I do 3-4 transactions per month, almost all of them in cities thousands of miles from where I live. The critical item is to find a good core team to help you. Real estate is a business, and business is a team sport.

I'm not seeing an obstacle. It's kind of like, "When is it the right time to start a family?" question. There is no ideal time. Some investors try to time the market. I prefer to maximize my time in the market.

Simon Campbell · Answer

You do make a good case about not staying the your university location as a reason for not investing but paralysis by analysis will only hold you back from making any money in real estate. If you always learn and never act you will always spend and never earn.

So, the best time to invest is when your plan of attack says you are ready. Start by developing where you want R/E investment to take you - to your homestead, cash flow or retirement. Then decide how and when you want to get there.

It is okay to wait until you are a little more settled, but meanwhile, build up as much in savings as absolutely possible. This will give you only a stronger position when you decide to invest.

Robert Gucker · Answer

It would be nice to get some more opinions on my situation.

Larry Turowski · Answer

@Robert Gucker Wow, a university student with capital!  How did you manage that?

This may sound like heresy here, but there are all sorts of good reasons not to start at any given time.  You've got to have enough education, time, capital, and perseverance in place.

Think of yourself as running a company.  Companies often flounder when they don't understand their market, or if they are not focused (pursuing too many things at once), or if they are insufficiently capitalized, or if they lack vision and keep changing tracks.

My main concern, if I were you, would be time.

So what are all your good reasons not to start right now?

Account Closed · Answer

Right time comes when you want to save your money and want to use it in future.  Real estate investment is one of the best and good investment that helps you to save your money and can be utilized in future.

Mike Hurney · Answer

@Robert Gucker  You raise some good points for waiting... NOT

That's like thinking you can do Real Estate all from your keyboard or blog... again NOT

Jump in, the (Real Estate) water's fine!

Mike H. · Answer

I would definitely recommend waiting until after you settle in to your permanent home area. Unless you want to do some flipping.  Then why not do that now?

But for buy and hold, I would definitely recommend waiting til you move. Do you know what area you're going to settled in? If you know,l then I would suggest you start studying the market now and maybe doing some networking in search of an agent(s) and/or a good contractor.

No reason why you can't be ready to go to hit the ground running as soon as you settle in....

Hattie Dizmond · Answer

Most folks are hampered by a lack of capital.  You have capital.  So, I would say the right time is when you find the right vehicle.  It might be that you don't want to become a property owner, while you're still in school.  That makes sense, particularly if you're not entirely comfortable with the concept of out of area investing.  Or, you might just not have the time necessary to devote to being an active investor.  However, you can still get involved in REI right now.

Why not look at being a private money lender or getting involved in some REI fundings?  You have capital.  There is no reason to not leverage what you have RIGHT NOW!

Rachel H. · Answer

For many who are successful, it's when the "why" kicks in and the passion ignites. From there, the "how-to" will come. Best of luck!

Joe Villeneuve · Answer

When is the right time to begin investing in Real Estate?  The day before you start.

Joe VilleneuveREcapSystemA2REIC

When is the 'right' time to begin investing in Real Estate?

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