Did you just turn 20, or are you around that age and looking to make extra income? These 10 reasons to start investing in real estate in your 20s will inspire you to take the proper steps into your career.
The real estate industry can be quite unpredictable at times. That’s why it’s essential to start investing now in order to make the most of the free time you have to put toward this industry.
Doesn’t Require Large Investment
Many people assume that one needs significant funding to properly invest in a property, which might scare young investors away. On the contrary, you could work with real estate crowdfunding platforms to help you get started with less than $1,000.
However, keep in mind that before you jump into the real estate industry, you’ll want to prepare your finances by saving up enough to purchase your first property. Once you start renting out properties or flipping them, you’ll begin to see significant rewards.
Use Marketing in New Ways
Because you’re younger, you’re already familiar with social media and different digital platforms that successfully promote companies.
You might already know how to operate these platforms as a consumer, which can be helpful when you switch over to start promoting your real estate business.
Remember, you’re your own brand. In the real estate industry, you promote your services, as well as yourself as a professional.
As a twenty-something, you may already keep up with the latest technology and advancements in social media, which you can use to your advantage in this industry.
For example, TikTok has already become a mainstream social media platform that you can use to promote your services and ensure more people see your marketing efforts. As a younger individual, you’ll already have created your business account quicker than other professionals in the industry.
Time Is on Your Side
Being in your 20s offers more than just knowing more about social media. The real estate industry is all about timing because of how unpredictable the market is.
Oftentimes, when people start investing later in their careers, they might feel pressured to rent or flip as many properties as possible. This leaves little to no room for failure.
As a twenty-something, time is on your side. You can afford to take smaller steps in the process and learn as you go. You’re able to try and fail as many times as you need to in order to succeed, which can give you an advantage over the competition.
Many successful professionals mention in their “success stories” that they just jumped into something without thinking about the consequences. But that plan doesn’t always pan out for everyone.
Before jumping into the real estate world, you want to educate yourself as much as possible. Although you have time to fail, that doesn’t necessarily mean you shouldn’t put in the effort.
Immerse yourself in books, podcasts, informational sessions, events, and more. You might consider connecting with more experienced individuals online as well to help guide you.
Helps Build a Larger Network
Throughout the learning process, you’ll encounter specific professionals who can help you in your career. Real estate investing is also about building relationships and establishing a solid foundation for an extensive network you can turn to down the road.
Remember to be yourself. When you talk with potential clients and partners, they can sniff out a salesperson from a genuine real estate investor.
Try not to befriend professionals just so they can help you; the purpose of networking is to build a group that can not only help you but that you can help as well.
If you invest in a property for $60,000 and you place a 20 percent down payment, you may realize later that the extra $12,000 could’ve been helpful if spent elsewhere.
As you learn and grow through the process, you’ll begin to understand which properties have more value in terms of return profit.
Challenges and Solutions
Everyone encounters a challenge at least a few times in their careers. Ultimately, they need to decide if they’re prepared to create solutions for those challenges or quit.
You might have a rough start, but with persistence, see positive change down the road. The opposite can also be true.
A tenant might skip payments, or the property could be damaged in a storm. Learning to overcome challenges and move forward will help you succeed as a real estate investor.
People widely assume that twenty-somethings don’t understand how to handle money. While that may be true in some cases, you must learn how to manage your business finances along the way.
Like understanding different opportunity values, you’ll start to realize when to spend your funding and when to save it.
More Portfolio Equity
Investing in your 20s enables you to build a solid portfolio over time, making you an experienced investor by the time you reach your 40s.
As a real estate investor, portfolio diversity is essential because it can establish credibility with potential lenders.
For example, you might benefit from a loan from a fix and flip hard money lender for your next project. The lender might examine your portfolio to learn your accomplishments, experience, and expertise in order to make their choice.
You Can Retire Earlier
Everyone wants to retire early, but not many have the knowledge or motivation to set themselves up for success.
Investing at a young age helps you reap the financial benefits sooner than other career paths, enabling you to have a satisfactory retirement at around 45 to 50 years old.
Being a first-time investor can be fun, informative, and helpful in seeing more success in your career. Just be sure to remember the lessons you learn and apply them in your next project.
Investing early is a great way to learn the real estate industry while gaining skills you can transfer over to any other career you choose along the way.
If you’re looking for a career that can set you up for success and provide you with the right experience, the above 10 reasons to start investing in real estate in your 20s can help motivate you.