When you’re young, the last thing on your mind is retirement. You’re thinking about getting a job and building a career, not ending it. When you’re young, you also tend not to have a lot of spare cash. The idea that you could invest in real estate seems impossible. But investing early is one of the best decisions you can possibly make for your future.
Most people who invest in real estate regret not doing it sooner. If there’s one thing that they would go back and change, that’s it!
Why You Won’t Regret Investing in Real Estate Young
You’ll build an early safety net.
Our culture has shifted. Not that long ago, the jobs that we held were typically the ones we stuck to. In the modern age, you’ll often find yourself moving between jobs and careers every few years if you’re like most people in the up-and-coming generation. That means that there is a lot more uncertainty and a lot less job security. Life is full of more twists and turns than ever.
It’s more important than ever to have streams of passive income that can help you through those seasons of life where things aren’t so clear. When you can rely on income from your investments, you don’t have to worry about living off of your savings or stressing about jobs and careers. There’s greater financial security simply in that you have passive income regardless of your employment status. And when you do have a job? That income is extra cash that you can add to savings, retirement funds, and put towards growing your investments.
There’s more time to nurture your wealth.
One of the most compelling reasons to invest as early as possible is time. It takes time to grow investments and tap into your true potential as a real estate investor. If you want to maximize your wealth, start as soon as you can. You’ll have more opportunities to scale, more time to grow, learn, and perfect the art of investing.
Not to mention where rental properties are concerned, you can look forward to appreciation. When it comes to a buy and hold strategy, the longer you hold a property, the more likely you are to turn a profit when you eventually sell. Cash flow, however, is even more compelling. As markets shift, inflation will drive up rental prices and increase your profits. The longer you hold a property, the less likely you are to still have a mortgage on it and the more you're likely earning.
But How Do I Start Investing in Real Estate Young?
Prioritize properties.
Our culture still teaches us that personal homeownership is the peak of American perfection. If you own a home, you’ve made it. But what if you don’t own a personal residence, but a rental property? Think about it. Instead of buying a home, you continue with your current living situation for a time (such as renting) in order to make your first purchase a rental property.
That way, you’re not just buying for appreciation. You’re buying for cash flow and appreciation. Your investment starts paying off immediately and, as your investments grow, you can take the dive into homeownership with greater financial security. You don’t have to put the cart before the horse!
Lean on expertise.
Sometimes it’s easy to think that you know everything there is to know. Recognize that you don’t. It’s easy to make mistakes in real estate investment and lose a lot of money. Lean on the wisdom of the people who have been there, done that, and learned better. See how they did it. Avoid the mistakes they made. It might mean finding a mentor, and it definitely means doing a lot of homework.
Related Article: 5 Hurdles Young Real Estate Investors Must Overcome to Be Successful
Find a turnkey partner.
If you’re like most twentysomethings, you’re busy. You have a life to live, relationships, careers, and no time to waste. There’s no room for big financial mistakes, either. That’s where turnkey real estate investment comes in. Instead of bearing your investments alone and doing all of the work yourself, lean on a turnkey real estate investment partner like Memphis Invest.
We’ll handle it! From acquiring ideal rental properties in promising markets across the country to finding the right tenants, dealing with the daily details, and bringing you regular reports, it puts you in control without the worry and hassle that can come with investing in real estate on your own.
There’s no better way to invest in real estate for busy, young professionals.
The best part? You don’t have to wait to get started.
