Real estate investing can be a great way to build wealth and financial security, especially if you start young. In your 20s, you have a number of advantages as a real estate investor, including time, flexibility, and energy. You also have the opportunity to learn from the mistakes of others and to take advantage of new technologies and trends.
Our guest today, Caleb Johnson of Red Sea Capital knows about the topic well as he built up his interest in the real estate game as a teenager.
Caleb has emphasized that one of the most important things you can do when starting out in real estate investing is to build a strong network. This is accurate and this includes connecting with other investors, real estate agents, lenders, and property managers. You can network by attending industry events, joining online forums, and reaching out to people directly.
Once you have a network in place, you can start to raise money for your first investment. There are a number of ways to do this, including:
Personal savings: This is the most common way to fund your first real estate investment. However, if you’re like most people in their 20s, you may not have a lot of savings saved up.
Hard money loans: Hard money loans are short-term loans that are typically used to finance real estate investments. They typically have high interest rates and fees, but they can be a good option if you don’t have a lot of cash saved up.
Private investors: Private investors are individuals who are willing to invest in real estate projects. They can be a good option if you have a solid business plan and a strong track record.
Partners: Partnering with another investor can be a great way to pool resources and expertise.
Start small. Don’t try to buy a multi-million dollar property as your first investment. Start with something smaller and more manageable. This will help you learn the ropes and build your experience.
Be patient. It takes time to build a successful real estate portfolio. Don’t expect to get rich quick.
Don’t be afraid to ask for help. There are many people who are willing to help new real estate investors. Don’t be afraid to reach out for advice and guidance.
Once you have raised the money for your first investment, you can start looking for properties to buy. When choosing a property, it’s important to consider your investment goals, your risk tolerance, and your budget. You should also do your research to make sure you’re buying in a good market. And as soon as you’ve found a property, you’ll need to negotiate a purchase price and close on the deal. This is where your real estate agent can help you. Once you own the property, you’ll need to manage it and rent it out to tenants. You can hire a property manager to do this for you, or you can manage the property yourself.
With hard work and dedication, you can build a successful real estate portfolio in your 20s and set yourself up for a financially secure future. Building a real estate portfolio takes time and effort, but it can be a very rewarding experience. By following the tips above, you can increase your chances of success as a real estate investor in your 20s.