General Real Estate Investing
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated almost 3 years ago on . Most recent reply

Getting Starting with Real Estate as a College Student
Hey all!
First time posting on the Bigger Pockets forums, but I have been listening to the Bigger Pockets Podcast all the time when I am in the car and have become really interested and passionate about real estate.
I am currently in college as a junior majoring in Mechanical Engineering with about 3 semesters left of school, and I always hear professionals saying that investing in real estate and putting your money to work is a very wise idea. I really want to get started on this; however, my funds are fairly low due to being in college and only being able to work about 2 days a week during the semester at a grocery store. If anyone has any tips or is was in a similar situation that could share with me the best way to get started or at least prepare for when I do graduate, that would be amazing!
Thank you!
Most Popular Reply

@Alex Eagens Sounds like you are sharp and motivated. You'll have no problem doing well in real estate long-term if that is something you want to do. Here is what I would do if I was you...
-While still in college, continue learning as much as you possibly can about real estate. Make friends who are also passionate in real estate and maybe even see if you can find some mentors who have industry experience. Continue working at the grocery store if possible to continue to add to your savings account and live very frugally. College is the easiest time in my opinion to live on the cheap. This will come in handing for when you decide to purchase - you will have some funds on hand for closing costs and a repair/maintenance reserve account for any property you pursue.
-Learn as much as you can about the market in which you plan to move to after graduation. Staying in the ATL area? If the options are wide open for employment and you don't yet know where you'll land, just keep educating yourself on the fundamentals of real estate and what makes a good deal - that never changes.
-When you find a job after graduation, you will now have what every lender wants to see...a W2 income! This is when you get serious about searching for a property, but be patient and do not jump on the first thing you find unless it absolutely makes sense. Be deliberate and calculated in your search knowing that the market is still hot and the competition is fierce. Find a real estate agent in your area who ACTUALLY understands investing and tell them what you want. If I were you, I would be looking for a single family home with rooms you can rent to friends/co-workers or a 2-4 unit small apartment building where you can house hack. A single-family home may be the best considering you will be starting a new W-2 job and will need to commit a lot of time to that. A 2-4 unit would be jumping in a lot quicker and the learning curve would be steeper - not impossible, just more difficult. The benefit of purchasing a property with 4 or less units is that you may qualify for lower down-payment options such as an FHA loan at 3.5% down which can help you get started earlier.
-If you don't feel comfortable jumping in right away, try to room with friends or family in your first 1-2 years in your new job and save as much as possible while continuing to build your real estate knowledge in your free time. Eventually you will have the funds and the confidence to start making offers. Once you get the first one under your belt, you'll be hooked. Years down the road, a good W-2 and quality properties that will eventually show as additional income on your taxes means that you will be making some HUGE moves in the real estate game before you hit 30.
Whenever I look back to my first 1-2 years after college, I wish I would have done what I detailed above. I waited 4-5 years to fully jump in but prepared myself by educating myself as best I could, but with real estate, having time in the market is so incredibly important and opens up all sorts of options 5-10 years down the road assuming a decently appreciating market and equity build. Whatever you choose to do, you seem motivated and driven so keep that attitude and the sky is literally the limit!