Being a student, one must juggle time for schoolwork, household tasks, extracurricular activities and leisure hours. It certainly tough to manage everything all at once, much more if one pursues an early path in building a career. Real estate is a kind of business avenue where one mostly witness people in tight suit and tie, who would have thought that this could be possible with a school uniform because today, young entrepreneurship is quite the hype of the current generation. When college is usually all about the late-night group study and party, some students also choose to spend some time shaping their financial independence by investing in real estate as early as now.
Although it may be deemed impossible knowing the limited capacities of a student in terms of money, time, credit and professional background, however making a profit in real estate is for all walks of life and definitely for all ages. Investing in real estate while in college will teach young ones the core ground of business and secure future financial status much more quickly. There are four suggested real estate strategies that college students can use in starting the said financial endeavor.
Real Estate Syndications
This is where a group of investors merges funds to invest in realty projects that may too upscale for individual shareholders. The transaction is between a sponsor who is also responsible for the purchase and property management together with the investors who provide the funds. One example of this is the Manila Real Estate Investors, a group that aims to share tips, ideas, challenges and contacts to help real estate beginners grow both in business and in life. A college student may not have a full cash amount to buy a property but one may have ample to partner with other real estate investors who are much capable. Despite it being less risky, one has zero control of the investment properties for the reason that the investor is still in schooling. The bright side of this kind of strategy though is that one can have a passive income.
Real Estate Partnerships
A student can still invest in real estate without borrowing money from mortgage lenders, family and friends because this can also be solved through partnerships in the industry. In this case, money in spite of its major role in investing is not the only factor that a student can utilize. One may possess the eagerness to learn in the investment schemes that an investor needs especially if the privileged want to diversify in the shareholding but just lacks time. The college student with the potential to venture into investing will be responsible for the management of the investor’s property. With the right agreement on ensured terms, the allocation will be fair to all partners who are involved in the purchase.
Though the term “hacking” can be in a connotation of a hazard act, it is far different from what it means in real estate investment. House hacking is a technique wherein a student may buy a multifamily investment property but living only in one of the units and just renting out the rest. A young investor can gain an income by starting an apartment-for-rent for the other units in Airbnb. An online marketplace for arranging or offering lodging, primarily homestays and it acts as broker receiving commissions from each booking. If one knows how to handle great deals well, the rental income from the tenant will help the student’s entire mortgage plus some extra cash monthly. This is a kind of investment that will help one save money and may even live for free. Being a young landlord will develop skills that will surely be helpful in a better and longer investing journey soon. On a red flag note, acquiring for house hacking can be tough for students since one should be looking for loans that require minimum money down.
A smart tactic that involves finding good deals and selling them to other investors is called wholesaling. A wholesaler will act as the middleman between the seller and the buyer. It is more like a broker but this is specifically for properties that are yet to go in the market. This is fit for students since it does not have to have assets or money. One may use the commission value to pay student loans or put it in a bigger real estate investment perhaps. However there is a catch in wholesaling, one must be good in networking, education, marketing, hard work, and commitment. By then, this could be a great start to successful real estate entrepreneurship.
Sometimes, limitations are walls that only set by oneself. Being a student should not mean stopping capabilities to nurture opportunities outside the comfort zone but one must also bear in mind that the school responsibility should be on top priority above all endeavors. After all, careers and big hurdles await for an individual who is determined to achieve better goals but this will be more possible if one is equipped with a solid understanding of the craft.