Struggling with student loans? Investing in real estate is just the right answer. Wait, what?!
Sure enough, you are thinking that you’re already struggling to find the money to get rid of student debt. But, you heard us right, consider investing in real estate.
Related: Retiring at 30 with 40 Rental Units: How One Ex-Grad Student Did It
Even though it sounds like a bold statement, it is not. As a matter of fact, investing in real estate might be the answer to all your financial struggles. So, stay tuned to find out 1) Why is investing in real estate the best way to invest money? and 2) How to invest in real estate when you do not have the financial means.
Why is investing in real estate the ultimate way to get rid of student debt?
Making money in real estate does not have to be that hard. Even better, finding the financial means to do so is not so complicated. Therefore, here is why you should consider investing in real estate to repay student loans:
No education required:
If you look up the most successful investors in the business, they started as young real estate investors. Most of them did not have a clue about real estate whatsoever. This supports the fact that real estate can be the best fit for literally everybody.
Related: What’s the Real Estate Education You Need to Start an Investment Business?
Steady income:
Income properties (rental properties) are perhaps the best option there is for young real estate investors. They provide an investor with a positive cash flow as long as it’s managed right. Once you manage to rent out your investment property, the rest is history.
Easy financing:
Investment property financing is as easy as you want it to be. You see, other types of investing are so demanding when it comes to financing. Investing in real estate, however, is not. Mortgage lenders consider it as a guarantee for repayment, therefore, making it much easier to get approved. Besides, you can always find various financing strategies to choose from. From private money lenders to hard money lenders to a conventional loan, there is really no limit to your options.
Passive investing:
There is no doubt that making money with little effort is the ultimate goal for each one of us. In reality, it is possible when investing in real estate. Buying an investment property and hiring a professional property management company is the best investing combination in this case. You buy the property and let the pros take over from there!
How to invest in real estate knowing that you do not have the financial means
As we have said before, investing in real estate is the best opportunity to make money due to the easy financing. However, we are not talking about how to get the money here. Rather, we are addressing some investment strategies that will help you to invest in real estate with almost no capital:
Related: Becoming a Real Estate Investor Right After College: Investing in Real Estate With No Money
Creative real estate investing:
Investing in real estate always allows real estate investors to engage in creative money-making methods, thus, making it an extremely flexible field to work in. Besides the traditional investing strategies, there are always ways that will guarantee you success and financial independence. After all, it starts with buying an investment property but the rest all depends on the investment strategy you follow.
Creative real estate investing includes house hacking, lease options, and owner financing strategies. The first is when you rent out a room or an extra living space in your property. In other words, you live in the property while using the rent to cover the mortgage or provide extra income. As for lease options, it means that you rent the property for a certain period of time with an option to purchase once the period is over. Owner financing is a bit different. You allow a person to pay you a monthly payment in order to purchase your property. In this case, you settle it directly with the buyer. Moreover, you can ask for a higher price since it is a direct exchange.
Related: All You Need to Know About Lease to Own Homes as a Beginner Real Estate Investor
Real estate partnerships:
Your soulmate in business is someone who has what you don’t. In this case, you are lacking in the financial area. So, what’s keeping you from looking for a business partner who has the money? Often times, people have the financial means but not the expertise or the time for investing in real estate. Your role is to provide what they don’t have.
Real estate crowdfunding:
Amongst the many opportunities for young investors is real estate crowdfunding. Basically, it is a financing method that most sophisticated real estate investors use to engage in large-scale projects. As a college student, your only commitment is the money you invest. In fact, for a person like you, we think it is a wise way to invest money in real estate. As for the shares, they are split in a periodic fashion. It could be on a monthly basis or even quarterly. Either way, it is a good choice if you do not want to get involved and make some passive income. Besides, it helps you grow your real estate investment portfolio faster. Therefore, it is a win-win situation no matter how you look at it.
Wholesaling properties:
Sure enough, the previous real estate investment strategies are more on the long term side. However, it is also possible to make money in real estate in the short term. Wholesaling real estate makes for one of the most beginner-friendly strategies when it comes to investing in real estate as a young college student.
The whole concept of this strategy is simple; you find a motivated seller of a distressed property, assign the property to a contract, find a buyer through real estate marketing and finally close the deal. The way you make money with wholesaling properties is through commissions. You assign it to a contract with a low price, and then close the deal with the buyer for a slightly higher price.
Now, why is this strategy suitable for you? Simply, as a student burdened by student debt, you will have to invest as little as a few hundred dollars which are the marketing and travel expenses.
By the way, did you know that Mashvisor has the best investment property calculator for real estate investors? Don’t believe us? Check out our blog and find out why it is the best. Also, you can sign up for Mashvisor and find out how we can help you with the best real estate investments.