Strategies for the future

[Tanner Resch]

I am currently in college and I know that I want to get into rental property investing. But right now is not the right time to get started. What are some strategies and things I could be doing now to help get prepared for when I am ready to start investing? 

[Tashfeen Islam]

Hey Tanner, 

Glad to hear you're planting the seeds early in your real estate endeavors. 

The best insight I can offer would be the following: 

1. Study your local market first and foremost, as investing in the area may be more ideal than investing out-of-state until you get more comfortable hiring a property manager and delegating more of the responsibilities to others. This can give you a better idea of what you can purchase on your budget, who the typical renters are in that area (e.g., retirees, college students, etc.), etc.   

2. Build out your network (e.g., realtors, mortgage brokers, contractors, vendors, etc.) so you have a support team once you do get into a position to buy something (real estate, from what I have learned, is all about relationships) and can have your investments running smoothly post-purchase.  

3. In regards to a mortgage broker, ask them what they would typically need from you to get you approved for a loan. Having your past two years' tax filings (if you file independently), a W2 statement (if you have one), easily accessible last two months' bank statements, paystubs (if any), and some other items all in one place ready to share at any moment's notice will definitely save you headaches down the road when you are moving quickly to get approved and into contract on a place.

4. Given that you are still in college, IF you need a co-signer, talk to someone who you believe would be willing to do so (e.g., a parent or guardian, relative, etc.) so they are aware of point no. 3 and can provide you and the mortgage broker with those same items when necessary. My parents co-signed my first loan and knew that the risk of me not paying my mortgage leading to a loan default would fall on them and impact their credit score so make sure that person(s) are aware of the risk they are taking on so they can decide if they are willing to co-sign or not.   

From there, just stay vigilant by reading up on the real estate & credit markets and overall economy until you're ready to make a move. 

Best of luck in your journey!

Tash