College is one of the most transformative parts of our lives. We move away from home and create unforgettable memories. But when a student graduates, they often don’t know what to do next. Employment isn’t always easy to find, so there needs to be another solution. Luckily, there is. You can invest in real estate during college.
For many, this source of income doesn’t come to mind right away. But it should. Here are a few ways you can jump into real estate when you’re in college.
1. Set a Budget
This tip is a no-brainer but still needs to be said. To invest in real estate during college, you’ll have to save some cash. Unfortunately, in this day and age, higher education is costly. That’s why it’s essential to set a budget and stick to it when you can. The standard down payment on a home is 20% of the total cost, but these days, many buyers go for less.
Think about the average price of the houses you want to invest in and go from there. Track each expense and set a budget. Get a job and put that extra income into your savings account. You won’t need piles of money, but real estate isn’t free, either.
2. Learn as Much as Possible
The internet provides a lot of incredible resources that can teach you about real estate. But you can go beyond that if you want. Seek out professionals in your college town and shadow them to learn more about the process.
Familiarize yourself with the current market wherever you want to buy. Everyone learns in different ways, so find resources that suit your needs so you can invest in real estate during college and not have to wait.
3. Recognize Opportunities
There are opportunities all around us — we just need to realize they exist. Walk down the street and look for houses that are for sale or rent. Maybe you spot a few, plus one that seems abandoned. Get in touch with the owners or realtors involved with each of those properties. How can you get in on that deal? What could you learn from it?
Many first-time investors who are low on funds look for ways to wholesale a property. In this case, you would find an owner who wants to sell. You then sign an agreement with them and advertise the home at a higher price than the original ask. When someone agrees to buy, you keep the difference, and the house is off the market.
No matter how you want to start, try to open yourself up to all possibilities. You never know when your big break will come knocking.
4. Educate Yourself About the Property
When you buy a home, you become responsible for several costs — utilities, taxes, loans, maintenance and more. Make an effort to analyze each property before you make a decision. How old is it? Is there any damage? What will the insurance cost?
These are all questions you need to ask, so you don’t regret your choice down the line. Try to educate yourself as much as you can so you know how to move forward.
5. Make Connections
The best way to succeed is to know people in the business. This sentiment is true for any profession. Get to know your local realtors, contractors, property managers and lawyers. Form relationships with them so they can teach you all they know about the business. Offer to tag along with them during a day of work and help out with whatever they need. Ask prominent professionals questions on social media.
We learn so much through experience, so do whatever you can to build a network. It’ll help you out in the long run.
6. Consider Other Investments
Real estate isn’t the only way to make money. To maximize your efforts, try to invest in other areas. Oil and gas are incredibly profitable — North and South Dakota alone offer billions of barrels of oil yet to be discovered.
Look at the stock market. Fund a startup project on your campus. There are many wise ways to build up your portfolio and generate the income you need for a down payment.
7. Determine the Next Step
Once you find a property you want to invest in, you must think about the next steps and what they look like. Do you need to do any repairs, or does it require a full remodel? You should also consider how well the home will sell — after all, that’s the goal of any investment.
Likely, you won’t want to stay in your college town forever, so create a timeline for this process.
Start Now, Profit Later
If you want to begin your real estate investment journey, start now. It’s always the right time to pursue your passions. Learn as much as possible, earn extra income and make those connections. Before you know it, you’ll be well on your way to owning your first property.
Dylan Bartlett is a men’s lifestyle blogger from the City of Brotherly Love. He runs the site Just a Regular Guide, looking at other topics related to health and wellness, relationships, the outdoors and DIY. You can follow him on Twitter @a_regular_guide to get frequent updates on his work.
