How to Invest in Real Estate as a College Student?
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What worries students most of all? The most apparent thing to pop up is studies, but things cannot be that simple, right? After all, college life is the time of the first step in adult life. The taste of independence comes with a lot of troubles. Some rejoice in the possibility of making their own decisions and being responsible for their own actions.
But everyone is going through something like that while at college. Besides, prospective students are warned about all that. All those things that you can face (dating and breakups; losing old and making new friends; conflicts with professors) are popularized via different media, like books, films, and TV series.
Here are the five things that you’ll come across if you google what students worry about the most:
- Studies
- Odd jobs
- Student loans
- Lack of time
- Fitting in
Here’s the catch – you can easily fix those things. The answer to fitting in is in the media about students’ lives. Student loans can be fixed by odd jobs. The lack of time comes from the combination of studies and odd jobs, but write an essay for me services are there for you to have more free time. Invest in your future in a smart way.
Student loans are not the only thing why students take odd jobs. Some of them are renting apartments. And the biggest fear that comes with that is that it’s going to be like that forever. The fear of renting a room or the apartment forever. Never having the place that you actually own. But things look less dim when you get into real estate investing. How can a student do that? Let’s check it out.
Wholesaling
One of the best ways students can get into real estate investing without breaking the bank is by wholesaling. The best thing about wholesaling is that you don’t need to have any budget for that, which makes it a real deal. You can use the money you make from wholesaling to cover your student loans and allow you to venture into other real estate investment opportunities, but more on that later. Let’s figure out what wholesaling is and how it works.
As a wholesaler, you’re going to find prospective deals and sell them to real estate investors. The best thing is that you don’t need to own the property or invest in it. The crucial thing about wholesaling is being able to find an owner who is about to put their property on the market. Then you need to find a buyer and get a cut of the selling price. Basically, you’re being paid for making a connection between the seller and the buyer. Both buyers and sellers can be individuals, as well as real estate agencies.
It all seems too good to be true, right? Most likely, you’re wondering where’s the catch. The problem with wholesaling is that it’s more difficult than it seems on paper. It will require commitment and good networking skills. You also need to have good knowledge of the real estate market. So, if wholesaling looks suggestive to you, it’s better to start deepening your knowledge of the real estate business right now.
House Hacking
Another option for your real estate investing is house hacking. This option is easier and more difficult than wholesaling at the same time. It will require you to invest money. The starting point of house hacking is buying a multi-dwelling unit. So, if you inherited a great amount of money, you know what to buy first. And if you inherited a duplex or quadruplex, here’s how you can use it for house hacking.
If you own another property where you live, you can rent the purchased or inherited multi-dwelling house. If you don’t have another property, move into the MDU, and live in one unit, while renting others. When it comes to inheritance, you may be tempted to sell it, but renting it will provide you with the often necessary passive income. The income from renting will allow you to cover the housekeeping and all other expenses you may have.
What are the chances that you will inherit a property or a fortune to buy the said property? There are several ways that you can get into house hacking without deus ex machina. There are various loan programs that can provide you with the amount necessary for house hacking. Another option, if your landlord approves, is to rent vacant rooms in the apartment that you rent.
Real Estate Partnership
The previous two options seem slightly unrealistic to you. Even risky, as it may involve taking more loans. It’s understood that you are more interested in the way to get rid of your student loans rather than taking new ones. But don’t get upset. There’s always the third option, which may seem less impressive than the above-mentioned ones but is easier to get into. This option is a real estate partnership.
Here we have you, who wants to become a real estate investor, but lacks the necessary funds. And here we have an investor, who wants to invest in real estate, but doesn’t have enough time or lacks the knowledge of the market. You’re perfect for each other. So, you form a real estate partnership, where you’ll be responsible for things like wholesaling. Finding the property to buy or finding the buyers for the property. And get cut from the deal.
Mind that this partnership will require you to be extremely passionate about the real estate business. It will also require you to know a lot about it. And you need to be able to show that you’re suitable for that. Of course, you have zero experience to show, but you can demonstrate your deep knowledge of the market.
A partnership like that can help you if you’d like to pursue a career in real estate. Just make sure that the terms and conditions of the real estate partnership are transparent and that both parties agree on them. Your share from deals may be lower than that of your partner; after all, they are investing their money, not you, but it must be fair.
Final Thoughts
Here you have three ways to get into real estate investment as a college student. As you can see, it’s not going to be easy. It’s not an odd job that you can get into at any time. You need to be extremely interested in the real estate business. If you’re not passionate enough about it, you should probably opt for other career opportunities.
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