Congratulations, you’re a fresh graduate. Now what? There’s one of two scenarios: you’re either facing a post-graduation existential crisis, or you’ve figured out what you want to do with your life – you want to invest in real estate.
Buying an investment property straight out of college is actually a smart decision. Why? Because you’re at an age where you still have time and room to explore the industry and see firsthand if it’s the right fit for you. Real estate investing can be both a part time and a full time job. As a fresh graduate, you may want to start as a part time investor and later transition to become a full time real estate investor. For now, you can check out our top tips for how buying an investment property straight out of college is possible.
Related: What Are the Top Real Estate Career Prospects?
You don’t always need a lot of money, but you do need to save some
We know, you are usually tight on cash as a fresh college graduate, but there are actually plenty of ways for buying an investment property using little money. Most banks will ask for a 20% down payment when buying an investment property. You may think otherwise, but your very first down payment is actually within reach.
It’s also very important to save money, if you can. “But I’m a college student, how am I supposed to save money to buy an investment property?” We always advise that you begin with knowing an estimate of how much you need to buy an investment property. You may first start by differentiating necessary from dispensable expenses and cutting back on the latter. Later, you can budget and track your expenses to know where to make the cuts. Give yourself some time before evaluating your saving efforts. Don’t get frustrated if you don’t reach your goal right away, it’ll take some time for you to learn how to invest in real estate when you’re on a budget. Throughout, remember that it is all possible and you should not give up too soon.
Related: 9 Ways to Invest in Real Estate With Little or No Money
Indulge in the experience
Knowledge in real estate investing mainly comes from experience and research. The better you know your real estate market, the more opportunities you will create for yourself. So get yourself immersed in the real estate world, and invest both time and effort. Familiarize yourself with the real estate lingo and latest trends. Research demand, state laws and regulations, consumer habits, and sales in your area. There are so many real estate investment resources (both online and offline) and tools that you have no excuse to remain ignorant on any topic related to real estate investing. If needed, sign up for real estate courses which have so many benefits to offer to future and new real estate investors. Eventually, make mistakes and learn from them, because you can afford it now (but not for long)!
Make connections and build a real estate network
Another way of buying an investment property straight out of college is through building your network. And you should never underestimate the importance your real estate investment network. After all, it’s all about who you know, and who knows you. People have a lot to teach you about real estate, especially when you’re starting out. You may also consider buying your first investment property with a partner, so you need to start considering which people to include in your network. So make sure to talk to local real estate investors, realtors, contractors, real estate attorneys, real estate brokers, professional property managers, etc. Meanwhile, always put effort into leaving a positive impression on your new and existing contacts as you need a solid reputation in the real estate business if you want potential partners to take you seriously.
Additionally, we recommend getting active on online social platforms. Set up accounts on LinkedIn, Bigger Pockets, Quora, Twitter, etc. to ask questions, look up information, make deals, and connect with like-minded investors.
Related: How to Build and Maintain a Real Estate Investment Network
It’s always easier to start small when buying an investment property. Don’t overwhelm yourself when you’re just starting out. Figure out what you can afford and focus your efforts on achieving exactly that. So make sure to choose a modest option for your first investment property until you learn the ropes of real estate investing. Once you’ve succeeded at your first investment, consider investing in multiple properties for additional return. After all, like many other businesses, real estate investing is all about learning by doing.
Start with Mashvisor!
Mashvisor is the tool for real estate investors buying an investment property, whether beginners or professionals. Our interactive property and neighborhood analysis tools will help you make informed decisions when buying an investment property. Mashvisor’s property analysis through the available rental property calculator provides information on traditional as well as Airbnb expected rental income, CoC return, cap rate, cash flow calculation, cost analysis, and much more.
For a demo video on how Mashvisor works, check out this video.
Related: Find Investment Properties for Sale Using Interactive Property Page
Buying an Investment Property Straight Out of College: Where Do You Go from Here?
Buying an investment property as a fresh college graduate is possible, but it definitely comes with its own challenges – some of them are common for all real estate investors, while others are specific to the particular status of a fresh college graduate. Just remember that it’s all a process in which learning and experience play a major role. Once you’ve succeeded in your first few investments, you’ll realize how profitable and quite fun real estate is. Until then, best of luck!