What Every College Student Interested in Real Estate Needs to Know

So, you are interested in real estate. Good job. Many college students prefer to spend time on Instagram or go to frat parties. Instead, you are reading this. I really want to congratulate you for it. Keep up the great job! You must already know that success does not come easy, and that you must work for everything that you want. First step taken. Now what’s next?

You are probably wondering what you should do in order to be a good investor. In The Intelligent Investor, Benjamin Franklin gives a brief definition of a smart investment. He says, “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.” First lesson that you must remember: never invest blindly! Always keep track of your risks; and the rest will come.

Here are the most significant tips about investing in real estate. Hope they help! If you feel the need to share something, or even leave us feedback, don’t hesitate to do it.

Why! You need to know why

Being a realtor is definitely not for everybody. You must be hard-working and very persistent in your work. Setting goals and sticking to them is crucial when it comes to investing. Besides that, there is the constant need to check the market values of the real estates you are interested in buying. Investing is a full-time job, even if you are a college student, leave assignments to professional writers and dive deep into real estate market. But first, be sure investing is something you want to do. 

There is the financial reason, of course, but do you also want to build something out of it?

Investing is a long-time process that does not give out results in days, weeks, months,

sometimes even years. It takes time to become good at it, and it takes patience to build up a strong reputation. Figure out the reasons behind your actions, and if you are all set, go on to the next point!

What should you focus on?

OK, now the biggest question is: what should you buy? The answer is: it depends. It depends on where you are situated. If there are many numerous families in your area, you should focus on buying large homes with plenty of rooms. If, on the other side, you live on the “student-part of the city,” you should concentrate on single rooms and cheaper options.

If you live in a dorm-room now, there is a better chance you’ll make money by moving out. I

know money might be an issue, but if you saved enough to afford a bigger apartment or even a house,  buy it! After graduation, you can rent that to the following students, and keep the cash flowing!

What obstacles you might face

“You don’t need the money, you need the will.” Yeah, yeah, we all heard that before. But when it comes to investment, you really do need the money. There is no way you could buy your first property without cash. Because banks usually require 20-30% down on your first real estate purchase, you might freak out. Well, don’t! There are other options to get the necessary money. Keep reading.

Should you consider taking a loan?

Yes, you should consider applying for a loan. You should’ve actually thought about this already. But how do you qualify for it? You need a very good income, very good credit score, and good debt in order to be able to do it. OK, OK, but how? Well, that might be a little bit complicated. But hey! It’s not impossible. You just need a helping hand, confidence, and perseverance. First, you could ask your parents to co-sign a kiddie condo loan. This type of loan is a great way for young adults to get their first houses. After your parents’ incomes are considered and approved, you are automatically approved too, without the need to have any credit history. Isn’t that awesome? Watch out though! After 2008, according to the U.S. Department of Housing and Urban Development website, they have  made it harder for parents to sign on these loans. The Department of Housing requires more proof of qualification, and an even better credit score.

Finding a co-signer

Finding a person willing to help can be challenging. Not a lot of people will risk their financial security to help another person out. That’s why you should find a blood relative, or an older sibling to ask. They might be more open to your ideas. If your family is not the right choice, you could ask a close friend, or even a professor. Asking for help is always a good thing, so don’t be ashamed of it – ever! People will see the potential and boldness in you eventually. No questions asked, no help received. Remember that next time you ask someone for help!

Finding other options

Of course, if none of the above options work, you should reconsider investing in real estate. Nowadays, investing in Bitcoin is very popular, and can bring in numerous advantages. Think about what other investment ideas you might have, take action, save, and then buy real estate!

Conclusion

Investing takes lots of patience and time. I am glad that you are already planning it out. Starting early is much better than too late. Make sure you never give up! Even if it might be difficult at first, it will be totally worth it in the long run. Good luck!