Last time we talked about how to start as a teenager. That’s a difficult time, but it is commendable to get started early. As a college student, a few doors open up, but there are still some major hurdles. This, in my opinion, is the best time to get started if you can manage to do so.
You’ve already determined to start real estate investing (REI), or else you wouldn’t be here. Let’s move on to the steps you must take to get going.
Steps to Get Started
- Save money. This is going to be the same for anyone wanting to start REI. You need to have money to buy property. Don’t be fooled by shills promoting zero money strategies. They can work, but they often require you to spend all your time on it or do some other gray-area things, like make promises to family and friends, or even strangers. You are in college and you should also have a job.
- Don’t waste money. The credit card is your worst enemy here. Do not rack up money on this with the plan of having a high-paying job out of college to pay it back. That will stunt your growth. Don’t go to the bars every night and don’t buy a fancy car. Live frugally for now and never keep a credit card balance. Never.
- Learn. Do all the reading you can on REI. Blogs like this one, books, and other websites are great places to start.
- Network. Research and go to local meetups on REI. You might not be able to buy right now but you can start thinking like an investor.
- Buy the first property. At some point, you’ll have money to take the next step. Possibly you have parents who want to see you succeed. Rather than living in the dorms, you could by a small house near campus. That’s so much better than renting. You’ll build equity while going to college. You may need a parent to co-sign your loan but you should be able to take advantage of the 3.5% down payment that FHA buyers enjoy. It’s a fantastic deal. Better yet, get a duplex and rent to another student.
That’s it. That’s all you need to do right now. Don’t try to start your real estate empire yet. Do focus on school while paying down your home loan. Get that degree then get a job, then use that income to help you get the loan on the next property. If you do buy a property while in college, you’ll be in the 0.001% of people who are your age. You’ll be lightyears ahead of other investors. Best of luck and keep to your studies!
