You're a recent graduate, or a seasoned young professional, and you have so much to offer the world. While it's true that the economic landscape has changed dramatically since your parents signed their first mortgage, the first few real estate decisions you'll make are still so important in planning for the future.
Investing in real estate for the first time can be overwhelming and even intimidating. It can also lead to a lot of fun and financial success. Everything depends on your outlook, education, and street smarts when it comes to the real estate market.
We know you've got plenty to deal with, including student loans, your career, and personal life. Calm your nerves with some real estate investing advice from the pros.
Here are five of our best tips for young people exploring the real estate market for the first time:
Choose an Ideal Location
The key to surviving today's real estate market is flexibility. Many of the cities that are "popular" for young people also happen to be bad bets for first-time real estate buyers or investors. Think futuristically; regularly investigate changing real estate values nationwide, and keep up with the hottest emerging markets. You can always find your decadent San Diego beach house later in life.
Take Saving Seriously
If you believe that you can't afford to think about investing in real estate, think again. It's likely you just haven't developed your perfect savings plan yet. Incremental lifestyle changes (think sacrificing expensive Starbucks and lunches out) and good banking decisions will bring you to a place of financial security and readiness much quicker than most of your millennial peers.
Call Your Squad
In the real estate investing world, it's important not to go it alone. A great real estate agency or investing firm will have your back, helping you make informed and profitable decisions. Your personal contacts are important, too, as anyone you know could be a potential buyer, renter or collaborator. Remember that your network is your net worth; start seeking out mentors and partners as soon as possible.
Have Eyes for Detail
Understanding modern real estate trends - and the potential of each property - will be your most useful tools on the journey to real estate investing success. Go ahead and take that great deal on a "fixer-upper," since as a young investor you may qualify for substantial home equity lines of credit. Take a chance on properties with eco-friendly or high-tech features built in, since you know these are strong selling points for contemporary buyers!
Know When to Hold (or Fold)
As a young investor with plenty of mistakes in your future, the "exit strategy" is just as essential, if not more important than your entrance strategy. Educating yourself on the real estate investing process will ensure that every decision is made with a critical outlook. Recognizing when to let go of investments that no longer serve you is the only way to progress and recover from real estate mistakes you'll inevitably make along the way.