How to begin real-estate investing as a college student!

Question

Hello there,

I am a Sophmore college student with a full ride to the university of texas at Dallas. I am majoring in computer science and am planning to become a software engineer.

I have been interested in real estate investing since I was a freshman in high school and have been listening to the bigger pockets podcast for about 3 years now. I am looking for a mentor or some advice as to how to get started. I know it is very difficult for me to qualify for a loan and I would like to know if there is anyone else out there with some experience with my specific financial situation.

Michael Scott · Answer

House hacking and renting out the rooms would be the ideal way to get your foot in the real estate investing door! There are several ways you can go about purchasing a property while you're in college. Like some of the others have stated, if you have some type of employment history and your parents are willing to be a co-signer on your loan that is an option. You could also look for a property where the owner is carrying a note and you pay them directly monthly. It might be a hard sell since you are new, but I bet you could find someone willing to give you a shot!I would also recommend connecting with a local investor or agent that is familiar with your market in Dallas. Look for a local meetup group around you and tell everyone you meet what you are looking to do! You can search on BP for a local group here:https://www.biggerpockets.com/...Best of luck!

Theresa Harris · Answer

One option is to talk to your parents and see if they will co-sign a mortgage if you make all of the mortgage payments AND put down the down payment. You can buy a place and rent rooms out to other students.

Wale Lawal · Answer

@Joshua Reyes College is not just about classes. It is possible to become a real estate investor as a college student. Even though investing in real estate as a college student may seem crazy, many have done it and continue to do it. Students can use their time in college to begin their real estate investing journey. You may not become a millionaire during your college years. However, you can get a head start that could help you achieve financial independence much faster.If you have not started, you too can learn how to invest in real estate in your 20s and start building your portfolio. The first thing young investors need to do is to get enough knowledge of real estate investing. Be sure to do your homework before jumping into any strategy. There are many sources of information out there on how to start investing in real estate. You could try different real estate investing blogs and books that are specifically about investing in real estate as a college student.Here are real estate investment strategies that college students can use to start building their wealth. 1. WholesalingOne awesome way of investing in real estate as a college student is through wholesaling. Wholesaling involves finding good deals and selling them to other real estate investors without necessarily owning the investment property. A wholesaler will find a seller whose property is yet to go on the market and then find a buyer and take a cut of the selling price. In essence, you are being paid as the middleman connecting a motivated seller with a buyer.2. House HackingAnother strategy you can use for investing in real estate as a college student is house hacking. House hacking involves buying a multifamily investment property, living in one of the units and renting out the rest. For instance, you can gain income from the other units by renting out on Airbnb. 3. Real Estate PartnershipsInvesting in real estate as a college student can also be done without borrowing money from mortgage lenders, family or friends. One way to do it is through real estate partnerships.A young investor in college might not have enough funds for a down payment. However, he/she may possess the skills or is eager to learn how to invest in real estate. In this case, the college student can find a real estate investor that has enough funds to acquire the property. The investor may want to diversify and invest their money in real estate but lacks the knowledge or time. The college student will be responsible for the management of the different aspects of the investment property. 4. Real Estate SyndicationsA real estate syndication is also another good way of investing in real estate as a college student. A real estate syndication is a group of investors who pool funds together to invest in big real estate projects, which may be too expensive for individual investors. It is usually a transaction between a sponsor (responsible for the purchase and management of the properties) and a group of investors who provide the funds.As a college student, you may not have access to enough cash to acquire an apartment complex. However, you may have enough to partner with other real estate investors. Joining a real estate syndication is one of the best ways to invest in real estate for passive income. It is also less risky. However, you will not have control over the investment properties when investing in real estate as a college student with this strategy. All the best!

Eliott Elias · Answer

House hack a property near campus and rent out each room to your friends and live for free. No better way to build momentum and learn what it takes to manage a property

Travis Timmons · Answer

If by get started, you mean purchase a property, then you need money. There's no getting around that. That means you'll need to find someone willing to cut a check to someone without money or experience or be patient and pile up as much as you can. The most likely source for funding/partnering is going to be friends or family unless you have some sort of domain expertise or ability to find deals. I don't love the idea of partnering because it is easier now and harder later. I'd rather delay gratification and go the slow and steady route over taking on partners and scaling quickly. My preference is just that - does not make me wrong or right. And loads of people that take on partners do very well. I have nothing to sell and no interest in partnering, but send me a direct message if you want to talk in more detail or have specific questions.

Jeff Schemmel · Answer

Hey Josh, do you have some type of employment? Preferably you do and you've been at it around 2 years or more. if that's the case, you may have some small level of qualification that you combine with a co-signer to get yourself into a house hack using a low down payment option. You can receive gifts to accomplish this. I'd say this is probably the most likely scenario, and I recommend talking to a lender who has worked with investors right away if you see a path toward this option. If this isn't going to work for you, I recommend spending as much time with people who are house hacking (own a property and live in a part of it while renting part of it). This will be the best thing you can do while you work towards a solid, consistent, income to start house hacking yourself. If you don't have employment - I'd work on that first :) I worked my entire way through college while holding a 30hr/week internship and running a business and it was tough but 1000% worth it to kickstart my financial future and capability in the workforce.