Investing in real estate is a great way to make money. For investors who start young, the possibilities and profits are virtually endless. If you dream of buying rental property, but think you’re too young or inexperienced to actually do it, think again. You can buy your first rental property in your 20s, and here’s what you need to know to do it!
Buy your First Rental Property Now
The thing about rental properties is this: the longer you own them, the better investments they become. The younger you are when you acquire your first rental property, the more money you stand to make.
Furthermore, when you’re in your twenties, you are more flexible. You have more time to devote to your investment, and you typically have more money to dedicate to it as well. If you wait until later in life when you already have a family and a career, you may not be able to follow your dream of buying a rental property.
Network, Network, Network
There is a wealth of knowledge out there just waiting for you to seek it. From realtors and accountants to real estate attorneys and other investors, you have the opportunity to learn from those who have been there, done that. Most of the people who have a part in real estate investing will share their experiences, education and mistakes with you free of charge, so take advantage of it.
Networking today is easier than it’s ever been with social media platforms like Facebook, Linkedin and the like. As a 20-something, you probably already know how to navigate these sites with ease, so be sure to build your online network as well as your offline one.
Take Time to Educate Yourself
How educated you are about real estate investing directly affects how successful you’ll be doing it. Before you even begin looking for your first rental property, take plenty of time to learn all about the process. Find out about the mortgage rates, current trends, demands, consumer habits and other factors in the market you’ve chosen. Doing so builds a solid foundation you can rely on as a rental property owner.
Again, today’s technology makes it extremely easy to educate yourself. There is a lot of information online, and most of it is free. Talk to a trusted mentor, or take classes to learn all that you can about the market. The more you know, the better off you’ll be.
Save Money to buy your First Rental Property
While this sounds like a no-brainer, you absolutely have to save money in order to buy your first rental property. The sooner you begin saving, the sooner you can begin looking for an investment property.
The easiest way to start saving money is to create a budget. Figure out where your money goes, and then decide where you can cut costs to save the most. It takes drive and dedication to stick to a budget, but then again, so does owning a rental property.
To acquire a mortgage loan, you’ll also need to have good credit. If you’re among the large group of 20-somethings with little to no credit, get a secured credit card, buy only what you can afford, and pay it off each month to establish a good line of credit. It’s important that you keep your credit and debt history clean.
Don’t Overwhelm Yourself Right off the Bat
Start small. Owning rental property can be time-consuming and stressful. Start with something you can manage easily like a one-bedroom apartment or a single-family home. There will be less to maintain – less to worry about, but you’ll be able to get your feet wet while making a little money. Once you’ve held the property for a couple of years, you will probably be ready to acquire another rental property to increase your profits even more.