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    Advice for Young Real Estate Investors

    It’s never too early to start building wealth by investing through real estate. Most homebuyers in their 20s or 30s purchase a primary residence as their first home, but many are now turning to real estate investing as a way to build their financial portfolio. This is no easy task, but there are plenty of ways to get started in the business on a small scale. We recently came across an article on that detailed a few of these entry-level strategies, as well as some common questions you should ask yourself before deciding to make the leap. You can read the full article here, but here are the main strategies and questions that you need to know about:

    1. House hacking. This concept revolves around purchasing a property and renting out parts of it to collect income that will help you offset your housing expenses. With this method, you own a primary residence that builds equity over time, but you’re also able to collect passive rental income at the same time. House hacking is a great way to gain experience with landlording and property management.

    2. Short-term rentals. If you’re in an area with high traffic from tourists or seasonal visitors, buying a property to rent out on an online portal like Airbnb can be quite profitable. As long as you’re willing to stay on top of the high rental turnover you can make a pretty penny.

    3. Investing in REITs. Real Estate Investment Trusts are another way to get some skin in the game without actually having to purchase or maintain a property. They are modeled after mutual funds and allow individuals to tap into real estate the same way they would in other industries. As an REIT stockholder, you earn a share of the income produced through the investment.

    Before making the leap, however, there are a few questions that you’ll need to answer for yourself, including:

    – Are you comfortable taking on risk?
    – Are you ready to be a business owner?
    – Are you willing to make sacrifices?
    – Do you have financial reserves?

    If you think you’re ready to start investing in real estate, I’d love to hear from you. Reach out and give me a call or send me an email and I’d be happy to answer any questions you might have.

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