Millennials, along with baby boomers, are driving real estate activity. As a matter of fact, the National Association of Realtors has noted that this generation of young adults comprises the majority of homebuyers in 2020.
Apart from that, we are also seeing millennials acquiring rental properties across borders and building multi-million dollar real estate portfolios. It makes sense to start young when you can purchase assets that have massive potential for growth. You just need to make the first step by applying the tips below:
1. Start with a goal in mind
You may be tempted to enter the competitive world of real estate investing, but you need to make sure you are doing it for the right reasons. It’s important to ask yourself why you want to dive in in the first place.
Investing in real estate has to have a long-term basis, so take time what you want to achieve before you get into the finer details of the game. That way, it will be easier for you to choose decisions that match your vision and needs.
2. Take time for research
If you’re new to the real estate investing game, you need to know the rules and gather insights that will help you craft your investment strategy. You don’t have to look far to get your education as a first-time investor.
Consider creating an account on BiggerPockets and check out the “Member Blogs” section, where both veteran and new investors share their experiences and insights. You will be surprised by the number of techniques for financing and managing your properties.
3. Choose which market to penetrate
As you continue learning about real estate investing, you will find that there are various asset classes to choose from. You wouldn’t want to pick the one you feel can work for you in the long run. Investing, after all, isn’t a hit-or-miss thing, so it’s important that you build a niche around your investing goals.
If you want to start out small, single-family properties would be a great market to penetrate. On the other hand, if you want to grow your portfolio faster and generate massive cash flow, consider buying a multi-family home off state.
4. Make the right financing decisions
There’s a good reason why financing a property investment portfolio poses the most challenge to millennials. Homes and apartment complexes cost a lot, but there are ways you can finance your property acquisitions even if you have minimal funds on hand.
Apart from hard money lenders and government-sponsored loans, you can raise capital by reaching out to friends and family members who can provide extra cash. You can also build a real estate investing syndication where you can pool other people’s money to purchase high-value rental properties.
You are never too young to start investing in real estate. In fact, as a young adult, you are in the best position to build your own real estate empire. It takes time, but once you are able to take the initial steps, you will be well on your way towards success.