Myths about Investing in Real Estate at a Young Age
For a lot of people, the thought of investing in real estate sounds great in theory, however, the action of doing it seems quite daunting. This is a common scenario that happens for a number of reasons, one of the most common being that there are so many misconceptions and myths out there surrounding that it takes, and where you need to be in life in order to invest in real estate and be successful at it. Here are a few far too common myths about why young adults should not invest in real estate.
Lack of Knowledge
At first thought, this one seems fair. Real estate is a huge investment and one that should not be entered into lightly. That said, we live in the digital age and an age where information is for most people, literally at their fingertips. If you want to invest in real estate but do not feel as if you have the knowledge to properly do so, research it, speak to people who work and invest in the field, and read everything that you can about it. Without doing the research and educating yourself you will still have that lack of knowledge whether you are 20 or 45 years old. Why wait 25 years to learn about something that could be earning you money in a matter of months.
Lack of Time
I hate to break it to you, but if you are sitting there in your early 20’s concerned about not having time to learn about and start investing in real estate, time wise it is not going to become any easier. As you get older the obligations in your life become more and more pronounced, work, family, your home, pets, community events, social obligations such as weddings, the list goes on and on. Realistically, the odds of your suddenly having a ton of time available to you to for you to start investing in real estate is never going to happen.
Lack of or Bad Credit
Regardless of what you want to do in life, you need to make sure that you are building and maintaining a strong credit score. However, if for whatever reason you are not quite there yet, be it due to a lack of credit history, so you have made some unfortunate financial decisions in the past, there are still ways that you can start investing in real estate. Generally, these options include either flipping properties or wholesaling them. Additionally, there are ways for you to find the funding that you need, in some cases, without your credit really coming into play.
Investing in real estate can be an extremely daunting task to comprehend, however, for many people it is the thought of investing that is actually more daunting than the action itself. While there is never a perfect time to start, in the majority of cases, the younger the better. This allows you to build a portfolio and allow your investments to grow throughout the years.