1: Make Use of Your Time
Time is both your enemy and your friend. Because you are still young, you have plenty of time to plan out and fulfill your investments. You can make more calculated decisions to evaluate your current financial position to get organized, make more sound plans, set goals, and manage your future business well — because you have the time.
But, you cannot wait for too long because one day you might wake up and discover that you have missed your opportunity to invest in your prime years. Time can be tricky like that. So never wait for later, and never put your plans off. If you are seriously considering real estate investment in your twenties and want to learn how to start investing in real estate, now is the time.
Money will not be the only sacrifice you will make, you are going to also need to sacrifice a large portion of your time. So make sure you can commit.
2: Start Networking
Networking is one of the most important aspects of real estate investment. Whether you are just starting out, or whether you have been in the business for years, you should know that your networks are some of your most important assets.
If you do not have a real estate network yet, do not worry. Today, meeting people and exposing yourself in the business has never been easier. Start attending local events such as seminars, workshops, open house events and make yourself seen. With today’s technology, you could also meet people through various social networks such as LinkedIn, BiggerPockets, Facebook, and Twitter and being young as you are, you probably know your way around these networks.
You may also consider carrying out your first investment, or first few investments, with a partner. Partnerships bring together money, knowledge, and previous experience together to make a smart investment. If you are just starting out, do not shy out. Ask your partner questions. They will offer you the opportunity to learn the skills of investment first-hand.
Finally, remember that your real estate network could be very wide. Get acquainted with real estate investors, accountants, realtors, real estate attorneys, contractors, etc. Every single contact will offer you at least one piece of information that will help you accumulate knowledge for your own investments.
3: Research And Educate Yourself
And speaking of knowledge, how much you have can highly affect your success as a real estate investor. You already have an advantage because your accumulated knowledge begins now at an early age so you are already a step ahead against every other real estate investor who is just starting out at a later point in life.
A wealth of knowledge will help you gain real estate skills like knowing what a good property looks like, where a good location is, and what numbers are good for an investment. You will also learn to identify the most ideal investments to maximise your returns.
There are many resources that could help you start learning about real estate investment. Browse through the hundreds of books out there, the blogs, a mentor whom you trust, professionals who can guide you and answer your questions, podcasts, and many others. You have access to a great amount of information, most of which is even free.
4: Save Money
This one seems like a no brainer, but it is a crucial part of learning how to start investing in real estate. What you may not know is at this point, every penny counts. It is important for you to review your expenses and manage to cut back on the unnecessary ones.
The sooner you start to save money, the sooner you can start investing. You may think otherwise, but your first down payment is actually within your reach.
Also note that you may need to build up your credit. Get yourself a secure card, only buy what you can afford, and pay your bills in time every month. Keep both your credit and debt history clean.
5: Start Small
Do not shoot for the stars on your very first investment. Start small and simple so you do not overwhelm and/or discourage yourself. For a first investment, consider a simple one-bedroom apartment or single-family home. You may also consider renting out a portion of your own personal home as a way to get started and earn some extra cash.
Overall, learning how to start investing in real estate is not a complicated matter, but it is a process. You are going to have to learn to be patient and take action when the time is right.