Want to get started in real estate investing?
Your 20s is a great time to get involved in real estate investing. Everyone who has started later in life wishes they had started earlier.
It’s all upside when you begin investing and working in real estate at this age. This is the lowest risk moment of your life to get started. You probably have the least bills, overhead, and other people relying on you. You can make plenty of money and career mistakes at this age. You can afford to be more aggressive. As you have plenty of time to make up for missteps. On the upside, time is on your side, and thanks to compounding, even being conservative in lower-risk investments you can turn a little into a lot over the years ahead.
Know Your Goals
This all starts with knowing your goals. Knowing what you want in life. This may be a certain lifestyle, level of freedom, toys, and comforts you want to buy, and people you want to take care of. Perhaps even the legacy you want to create and leave behind.
Having clarity on this will give you a compass and roadmap for how to get there.
Let Go Of Your Limiting Beliefs
Don’t be afraid to think really big. Your thoughts are the only thing that will limit you. You will be very surprised at how much you can achieve in a very short period of time in real estate.
Don’t focus on the perceived limits of the resources you currently have or your age. Real estate investing for beginners is about being resourceful and creative.
Be willing to look outside of your immediate area and personal resources. If you live in an ultra-high-cost area like San Francisco or Manhattan, starting to invest in real estate may seem out of reach on your salary. Yet, there are plenty of other places to invest. Perhaps your friends and family will be willing to come together and back you. Or you can look for a real estate investment company in Somerset, NJ for help.
Learn All You Can From The Pros
There is so much information out there today that was never available to the generations of real estate investors before you. A lot of it is junk, but there is solid information and data too.
There are also experienced pros that are generously willing to share their learnings on the way to success. This is a way for you to hack decades and even hundreds of years of experience in just months.
Get close to them, spend time with them, learn from them. They say hindsight is 20/20. By doing this, you can leverage all of these insights, skills, and strategies and leap years into the future of experience without making the mistakes yourself.
Dedicate A Percentage Of Your Income
Begin by committing a certain percentage of your earned income to invest each payday.
If you begin now, even allocating 10% of your income to investing can yield really big results. If you wait until you are in your 30s or 40s, you may have to set aside 30% or 45% of your income to achieve the same results.
Of course, if you can go heavier now, then you may not need to set aside any of your earned income later. In fact, it may not be too long before you can live on the passive income your investments are producing for you.
You can roll your weekly or monthly savings into an investment account or self-directed IRA or 401k, and then use that to make more considerable investments every quarter, semi-annually, or annually.
How To Invest
If you are starting with limited capital, then you can pool your money together with others to get into better investments, without taking on a lot of risk or debt yourself.
Ways to do this can include partnerships, syndications, private lending, and real estate funds.
