Being a college student means multitasking between attending your classes and looking for ways to pay back your overflowing student loan. While these setbacks can seem like a challenge to figure out, getting an extra source of income will come in handy in setting you up for future financial success. One venture that will be worth your while is getting into real estate investment.
House Hacking
The first strategy that will help you get into real estate investment is house hacking. This may involve buying a property of your liking, with examples being multifamily homes or condos that speak to your style and income preference. You can live in one of the units and rent out the rest to other students or tenants. Airbnb also serves as another area in which you can invest your spare units. The rental income you get from this venture can help you pay your utilities, leaving you with enough savings to purchase other properties.
If you settle for a mortgage to purchase your property, you stand a chance to benefit from increased equity, helping you buy another investment down the line. In addition, numerous alternative lending programs are currently available in the market, helping you get quick access to funds. You can also choose to partner with family, allowing you to get the most of partners with solid credit scores for better investment opportunities.
Wholesaling
Wholesaling is another way of getting into real estate investment while still in college. Essentially, this
method will require you to act as the middleman, where you find sellers before they list their properties where, in turn, you can help them find a buyer. You then get a portion of the selling price, allowing you to earn an income in the process. This strategy will require you to do detailed research, with networking and commitment being other qualities to help you set yourself aside as a great real estate investor.
Real Estate Syndications
Real estate syndications refer to real estate investment partnerships that require investors to pool their funds to invest in specific projects. If you have enough savings to join such a partnership, you will essentially have access to passive income. However, note that this method requires a sponsor to take charge of the purchase and management of the properties and the backing of investors whose presence is to provide the needed funds.
REITs
REITs refer to investment trust companies that own commercial real estate like hotels, retail spaces, office buildings, and apartments. REITs often come with high yields, with investors paid in the form of dividends. Unlike the other commonly utilized strategies, different companies will have varying initial investments, with some having restrictions on minimum investment funds. Based on your preference, you can choose REITs that are publicly traded with others trading like stocks. To get the most out of REITS, ensure you research the ideal trusts to invest in. A financial investor can also help with this.
The above is proof that being a college student is no reason to shy away from getting into real estate investment. With the vast array of funding tools, research resources, and networking opportunities, investing is only a step away.
