Real estate investing has become extremely popular. This business sector offers great money making opportunities. Some college graduates also think about getting involved in real estate investing. However, building a career after college can be really challenging.
Starting a business can be tough for graduates who don’t have enough money and experience. The main problem with real estate is that it is very expensive. It is most unlikely that students, who have just graduated from college, have cash to buy properties.
But if you are very much interested in real estate investment, there are options you can consider. Let’s dig deeper to find out what those options are and how you can use them to become a successful real estate investor right after college.
Get Information about Different Types of Real Estate Investments
There are different types of real estate investing. In fact, each type has its own pros and cons. You should get as much information as possible about real estate investing types to be able to choose the one that suits you most.
The reality is, real estate can be residential or commercial. Houses and apartments are residential real estate while various companies and organizations are commercial real estate. Also, you have an opportunity to buy an existing property or build a new one. Purchasing existing property is less expensive. But in some cases, it’s much better than to build a new property.
Real estate investors can buy single-units and multi-unit properties. Purchasing a single-unit property is a better option if you are just starting your real estate investment business.
If you are interested in getting a short-term income, you can buy some cheap property, make the repair and sell it for higher price than you have initially paid.
But if you are interested in a long-term profit, you should buy more expensive property located in popular areas. As a result, you will be able to rent out the property and get monthly income.
You have an opportunity to invest in real estate investment trusts (REITs) as well.
Find a Mentor Who Can Help You
Obviously, you have no experience in real estate investing right after graduating from college. Even if you learn all the information you need to start out as a real estate investor, you still may have some unanswered questions.
That is the main reason why you should find a reliable and experienced person who can clarify the remaining questions and help you choose the right strategy.
Investment strategies can be not just profitable, but flexible as well. Your mentor will definitely tell you about that.
Besides, you have an opportunity to invest in real estate even if you have no money.
How a College Graduate Can Invest in Real Estate without Money
You will agree that starting a business without money is almost impossible. But if you have no money of your own, you can borrow it. In fact, you have several resources from which you can get the money you need to become a real estate investor.
Ask your family and friends. There must be someone who wants to finance your business. However, borrowing the money from your family doesn’t mean that you will not have to give it back. Do your best to provide the borrower with some guarantees. Write a business plan and develop a repayment strategy.
Receiving a bank loan is another possible way to finance your business. It’s important to note that there is a wide range of loan programs you can choose from. Getting a loan is a popular financing method in real estate investing. The only thing you have to do is to make sure that the loan you want to take really meets your real estate needs.
Moreover, you have an opportunity to get an owner-occupied loan. That means that you will get the money to buy property, but you will be asked to live on the property for a year or two. After that, you will be able to rent out the property. This type of loan has an obvious advantage. You can apply for an owner-occupied loan every year or two. It will give you an excellent opportunity to buy more rental properties in the future.
As you can see, it’s possible to become a real estate investor right after college even without money. You should just educate yourself and find the most appropriate financing method.