New Investor Looking For Advice

[Zach DiFilippo]

So I am 1 year out of college with about $50k in student loan debt (that's is deferred until Nov.). I am currently an active real estate agent in St. Augustine and have been for about 2 months now and just had my second deal finally close. Now that you know the situation, I have a question. How/should I start investing at the age of 23 with 50k in student loan debt, but have about 5k in the bank. Do I just sit and save up some more until I can invest? Do I wait till I pay off my student loans until I start investing? Is there a way I could make a move on a property now. Whats the best angel for a brand new young investor? Any advice and guidance is appreciated!

[Ian Kurela]

Hey Zach,

I am about to enter my senior year in University and have pondered over this exact situation. It seems to me there are a multitude of options but this has been the winner in my mind.

Pour all your excess income into your student debt until November. This way you are able to reduce the principal without having to pay any interest. Then after November, IF you are able to find a deal, make sure that you are earning a return that is higher than your interest in the student loan. That way you are making a couple percentage points above the debt in order to pay it off and have some money in your pocket. Of course until you find a deal worth doing, pay as much on your debt as possible.

That is my plan, hope it helps