For those fresh out of college, just starting down their professional journeys, investing can seem pretty daunting. Sometimes, it can be hard enough just making enough to pay the monthly rent nevertheless think about investing your money.
There is great merit to investing while still young, however, and a lot of that merit boils down to interest. As any retirement planner will tell you, the earlier you start investing, the wealthier you can become.
Obstacles to Investing
Of course, young people face several obstacles to effective real estate investment. A few of the major ones include:
- A lack of liquid/ disposable cash to invest with.
- Very little life experience to draw from and to guide investment decisions.
- Other draws on your attention—dating, relationships, finding work, etc.
- Poor credit or student loan debt.
- A lack of peers who are also interested in investing.
These obstacles are significant, yet dwelling on them would be taking a glass-half-empty approach—because in other ways, twenty-somethings have plenty of assets to draw on as they pursue real estate investment.
Advantages to Investing
Consider some of these perks you’ve got in your corner:
Motivation. Simply put, those who are still young are still hungry, still driven in a way that older counterparts might not be. Plus, you’ve got plenty of reason to motivate yourself: Play your investments right and it could mean a comfortable, early retirement!
Technology. If you’ve got a decent handle on technology—social media, mobile devices, spreadsheets—then there are obviously plenty of tools you can draw on to make connections and guide your investment decisions.
Time. More than anything else, though, what you’ve got going for you is plenty of time to make prudent investments, and to grow them. You can learn as you go, you can start off small, and you can work your way toward big goals.
Different Ways to Invest
Also note that there are different options available to you as you seek to make an investment:
You could do a house flip. Buy a foreclosure or an older home that needs some work, live in it, spend time sprucing it up, then list it again for a higher price. It’s a lot of work and the margins can be thin, but some people think it both fun and profitable!
You could buy a multifamily dwelling. Buy something like a duplex and rent out one or both of the apartments; play landlord and collect rent money!
Invest in flex space. Business owners are always looking for flex space for rent—and if you can acquire some, you’ll find yourself in a good position.
Investing in real estate can be surprisingly flexible—so why not start now, while you’re young?