There are many challenges to getting into the real estate market young but the advantages may out way the trouble. Over the years, the real estate market has proven to be a fairly stable and lucrative way to make money and increase wealth.
You do need to have money in order to secure a loan. If the big lending firms will not consider you due to your age try the local privately held banks in your area. They can often be more lenient with who they lend to and are usually willing to invest in their local area.
Those under 30 are not always taken seriously by investment companies. Finding an older partner might help ease the fears of lenders.
It is important to get a good credit score established early. It is good to pay in cash and keep debt low. But lenders are looking for a track record of a loan paid off on time with no late payments. Many things we pay for, like our phone plan, may not be reported to lending agencies. Therefore they don’t help establish credit.
Beware of your debt to income ratio. Student loans which can be paid off over a long time can hurt your chances of obtaining a home loan.
There are many ways to make money through real estate:
- Rent out a room or rooms to generate income. (House Hacking)
- Purchase a home to live in an area where home values are rising and sell after a few years for a profit. This can be the first start on the property ladder.
- Purchase a home that you rent. You can be the landlord or higher someone else to manage the property. If you choose this option you can make money monthly and you can also increase the equity you have in the home over time to sell down the road.
Real estate investing young can help you set yourself up for life! #Ironclad
- 1Real estate can be a successful investment option.
- 2The younger you start the more equity you can build.
- 3If you get discouraged, seek out a mentor or older partner.