How to Invest in Real Estate as a College Student?

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Many people believe that investing in real estate is an activity that should be pursued only by adults.

The cost of real estate in the United States of America is so high that students and even adults with established careers are often afraid to invest in property.

However, it is a myth that one needs a lot of money to invest in real estate. In fact, even a student with a negligible income can begin his or her journey of investing in real estate while in college.

Investing in Real Estate as a Student

After all, it is not said without reason that youth is the best time to take risks. By beginning to invest in real estate from a young age, students can get a head start in their wealth-creation journey. Some of the best things that a student can start doing to become a master in real estate investing are listed below.

  1. Start with small projects

One of the most common mistakes that a student can make while investing in real estate is starting with a property this is too big. Big properties mean more risk, which a student may not be able to handle. It is always better for a student to start with small apartments and then gradually move on to houses or land once they have accrued enough experience in the industry.

  1. Work on DIY home renovation projects

The best way to learn about a house is by working on one. Most houses need repair before they can be sold. These repairs are expensive if outsourced. However, students can DIY household repairs to save money. They can make time for DIY projects by outsourcing their coursework assignments to professional writers. TopWritersReview is a website that can help students find good writers. If your assignments are handled, fixing up your new property would not be a problem.

  1. Try to become a landlord during college days

Few students have the privilege of having their own homes to live in while in college. Students can effectively use the space in their homes and optimize it. They can rent out extra space to other students while they continue to live on the property. In this way, a student will become a landlord in college. This will help students understand how to take care of the property, be a good landlord, and also get some income in the form of rent.

  1. Study about real estate investing

While it may seem obvious that a student must study, many students tend to neglect to study real estate and directly jump into investing. There are many cheap ways in which a student can study real estate. A student can rent books from a library, enroll themselves in real estate education schools or listen to podcasts and YouTube tutorials to learn more and more about real estate investing.

  1. Invest in REITs

If investing directly in real estate seems scary for a student, he or she can invest in Real Estate Investment Trusts (REITs) instead of investing directly in a property. The concept of a REIT is simple to understand. A REIT is structured similarly to Mutual funds in a stock market. A student can put aside a nominal amount of money every month and invest it in a REIT. In the real world, a REIT is represented by a group of small properties which may either be scattered wide geographically or confined to a small area. The biggest advantage of investing in a REIT is that the student will only take on minimal risk, but his or her returns will still be higher than the average mutual fund’s rate of return.

A Few Concluding Thoughts

Nothing is without risk. It is also true that perhaps investing in real estate is not everyone’s cup of tea. However, if a student begins learning about real estate from a young age, they will have more time to learn the tricks of the trade and also learn to make money from it. Lastly, it is never too early to start thinking about the future, especially in today’s world. Therefore, students can go bravely and invest in real estate, learning about the industry on the way.

About the Author – Merissa Moore

Merissa Moore is a real estate investor. She purchased her first house at the age of 21. Before that, she was actively involved in DIY house renovation projects and flipping houses for others. Today, she invests in real estate and also mentors young students who would like to begin the investing journey. She is a published writer with an online blog on real estate investing.

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