How to Get into Real Estate at a Young Age
What if you could start investing in real estate at a really young age? That's what this article is about and I'll go over strategies to do it.
Here is one thing that many successful real estate investors would do differently if they could – they would start their investment journey earlier. Too many people feel like they are too young to enter the real estate investment market, and this is simply not true. There is no reason why you need to be middle aged to start investing. In fact, there is a lot of benefits to investing young. Although the younger you are, the harder it can seem to get your foot in the door.
Now when we talk about being young, we do not mean purchasing your first property while in elementary school. You do still need to be an adult. A young adult in this sense would be anywhere from 18 to early 30s.
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Benefits of getting into real estate at a young age
While it is true that you are never too old to get into real estate investing, there are definite advantages to starting young. The main benefit is explained by Roofstock as being that the younger you start your investment, the longer your time horizon is to realize gains and build wealth. Real estate investments are overwhelmingly about long term wealth generation. So, the younger you start, the more time you have to reap the benefits.
Another good reason for starting young is that it means that initial failings and mistakes will not have a big an impact. It is rare that your very first investment will be an overwhelming success. It can often take some trial and error to find your groove. So, the younger you are when you start, the more time you have to find the perfect investment. If you are older, then you may be more impatient and take a bigger risk. Which can result in a bigger failing.
How to get a real estate license at a young age
If you are wanting to go the route of getting your real estate license, you will be happy to know that age is not an issue. You need to be an adult of course; most states will have a minimum age of 18. Some states require you to be older, however by the age of 21 you will be able to get your license wherever you are in the USA.
Once you are of the minimum age in your state, then the next step to getting your license is to complete a minimum amount of education. Again, this varies state by state. Generally, you will need to complete a number of hours of pre-licensing education. In Pennsylvania, this number is 240 hours, and in California it is less at 135 hours.
The final step is to ensure that you complete all the applications and pass any examinations that are applicable in your state. If you set your mind to it and apply yourself, you can get your license within 4-6 months. Source: Real Estate Express.
How to learn about real estate while young
One benefit that the older generations have over their younger counterparts is life experience. And while this can be a benefit when it comes to entering the real estate market, keep in mind that there is a wealth of knowledge out there. And a lot of this knowledge is targeted at young adults for this very reason. If you know where you look, you will find countless resources that can teach you everything you need to know about being a young investor. The best sources for young people wanting to get into real estate include (but are not limited to).
- YouTube videos.
- Knowledge articles.
There are so many experts, both young and old, who are willing to share their knowledge. You just need to know where to look and be willing to learn. YouTube videos and podcasts in particular are targeted towards the younger generation. Many young adults will feel more comfortable watching a video explaining how to purchase an investment property, then reading a book.
What are challenges of getting into real estate at a young age?
No matter what age you are, getting into real estate investment will present challenges. And being younger will being about unique challenges. Some of these are highlighted by Lending Home as being the following.
- Less startup capital. There are ways to enter the real estate market with less money. However, there is no getting around the fact that to purchase an investment property you will need money down. And chances are that you will have less money at 24 than at 44.
- Credit history. Unfortunately, there is not a lot you can do if you find yourself wanting to start an investment, yet you have little to no credit history. A nonexistent credit history will not stop you from getting a loan, but it definitely makes it harder. You just might need to search harder for a loan or make some sacrifices.
- Confidence. The saying is that wisdom and confidence comes with age. And this is true, although not a hard and fast rule. Being young should not be a roadblock to purchasing an investment property, and you should not be made to feel bad about trying to set yourself up young. You may be told that you should be traveling or partying, but if you have the right mindset, the confidence and drive will come.
One thing that is true about finding success by investing in real estate is that it takes more than money – it requires time. And the fact remains that the younger you start, the more time you have. Real estate investing very rarely results in overnight wealth, and the longer the period you give it, the more chance of success you have. So, a young person who is willing to make the sacrifices now, will be thanking themselves in the future. There are many different ways to start your investing journey while you are young, and as can be seen, many benefits.
Charles is the founder of infoSpike.com. He enjoys real estate investing, marketing, and personal finance. Read more about Charles here.