It’s that life-long dream that you graduate from college and land a high paying job that makes your dream of buying a home and going on vacations come true. But that’s not always the case! Averagely speaking, you will most likely exit your college life into a job that pays well but not well enough to support your big dreams. The solution is simply starting your own real estate business. It doesn’t require a lot of time investment to become a property investor. You must know the basics of how to become a property investor straight out of college and manage your strengths and liabilities wisely.
So, how to become a property investor straight out of college?
The simple way of doing this would be looking at what beginner real estate investors have done and follow along with their footsteps into a place of strength. Once you get there, you can expand and complicate your business operation a bit more. However, always keep things simple up until you are qualified enough to manage a bigger operation. So, here are a few obstacles and solutions every college graduate must go through to dive into the real estate investing world:
Figure out your financing options
Finding the financing for your first few real estate investments can be among the most difficult barriers that stop you from becoming a real estate investor. So, if you’ve found the right financing, you’ve figured out how to become a property investor. To simplify your financing options, we’ve listed them below:
Family and friends financing
While this may not be your favorite go-to option when it comes to finding out how to become a property investor, it can be a lucrative one if you play it right. If you know of a family member who is looking to invest his/her money, don’t be afraid to ask for money as an investment. This is among the most commonly used forms of financing for a beginner real estate investor. However, you must clarify the terms and conditions of your agreements to eliminate any disputes along the way.
Seller financing
If you’ve found a property that fits your needs and long-term goals as a real estate investor, you can put seller financing as one of the options on the table. You’d be surprised by how many real estate owners would not mind seller financing. This eliminates the need to take a mortgage and ultimately makes the process even faster. Additionally, the property seller might be relieved from paying the mortgage payments and agree to your terms of financing. This can be a lucrative financing option for beginner real estate investors and especially for those leaving college and looking to start a real estate investment career.
If you’re looking for more details on seller financing, read this blog post: Owner Financing: Is It the Best Way to Finance an Investment Property?
A good old-fashioned mortgage
While seller financing and family financing may be your go-to option when it comes to figuring out the finances of how to become a property investor straight out of college, you might want to look into conventional mortgages. Mortgages offer a wide range of plans and types that allow you to become a property investor. Keep in mind that the long repayment period is among the top attractions of this type of financing.
Consider real estate partnerships
Real estate partnerships can offer you a smooth way of entering the real estate investing world. By finding a partner who has more expertise in the field, you are gaining experience and getting a return on investment that’s worthy of your time. Consider looking for expert real estate investors in your area; many would agree to a real estate partnership. The only downside to this would be the difficulty of offering terms that are stimulating and attractive for the expert real estate investor.
Focus on a real estate investment strategy
When learning how to become a property investor straight out of college, you will get distracted by the wide variety of real estate investment strategies that you can employ to your advantage. Even though you will want a piece of every investment strategy, you shouldn’t overthink your own investment strategy. If you hit it off with your first few investments, you can employ many real estate investment strategies to your advantage.
Let’s take a hypothetical situation where you (the real estate investor) start with a long-term rental property. After completing monthly payments and having found a proper tenant for your property, you might want to look for another long-term rental or even an Airbnb rental to diversify your real estate investment portfolio. On the other hand, you must not dive into a real estate investment strategy then jump to another with little expertise. Building a real estate investment portfolio takes time and effort. So, pace yourself and you’ll get there!
Consider real estate wholesaling
Real estate wholesaling is not the sexiest method in real estate investing. But many investors have made it happen through wholesaling real estate. This method might be great for those looking to invest in real estate with no money. Keep in mind that a real estate wholesaler gets an undervalued property under contract and then sells the contract for a higher price while pocketing the difference. Of course, there are many ups and downs that follow this investment strategy, but if you’re looking to raise capital for your next real estate investment, look no further!
Run a real estate market analysis
Using the help of technology when beginning in real estate investing is the ultimate guide on how to become a property investor. With a real estate market analysis conducted through an efficient investment property calculator, you can make real estate investments without having to go through months of searching. With Mashvisor’s investment property calculator, you can also use the property search tool to locate properties that fit your real estate investment standards. You can specify cash on cash return and even Airbnb occupancy rate.
Give Mashvisor’s investment property calculator a shot and make use of the 14-day free trial offered by clicking here.
For more information on conducting a real estate market analysis, read this blog post: The #1 Best Resource for Performing Real Estate Market Analysis.
Final words
Knowing how to become a property investor straight out of college might be your guiding post on getting rid of college debt. So, don’t fear investing in real estate at a young age. The sooner you begin real estate investing, the faster you can reap the benefits of it!
If you have any more insights on how to become a property investor straight out of college, please share them with us in the comments section.