14 Best Tips: How to Invest in Real Estate When You’re Young

When it comes to investing in real estate with little or no money, the key is getting an early start while you’re young. To be sure, investing in stocks or anything else is no different!. Investing in real estate is like a slow-moving avalanche. It starts with a little chunk of snow rolling down the hill. Then as it continues to tumble, it builds momentum and volume. Building wealth in real estate is not a quick, get-rich process for most people, says Robert Taylor, The Real Estate Solutions Guy.

It takes a lot of time. You start with one property, and you may not be able to buy another property for a few more years. Then you add another property and another. Slowly over several years, you have built a portfolio of real estate properties. When Taylor started off investing, he says he “was pretty arrogant and self-confident that I could become wealthy in just a few years.”

Fortunately, Taylor had several successful real estate mentors who were patient him. One particular mentor said, “Don’t quit until you have worked at it for at least ten years.” Taylor just wishes he had started ten years sooner.

Omer Reiner from FL Cash Home Buyers, LLC says if he were to go back to 2011 and advise his younger self, the best thing he’d say would be to put money aside from his fix & flips and start buying cash flowing assets as soon as possible.

Get Educated about investing in real estate

Get proper education and coaching before going out and investing hundreds of thousands of dollars, says Brian Davis from Spark Rental. I made so many mistakes when I first started, stupid mistakes that I could have avoided with even the most fundamental education, Davis adds.

For example, consider how to accurately calculate a rental property’s cash flow. Many incorrectly think that a rental property’s profit is the difference between the rent and the mortgage payment. Unfortunately, that couldn’t be further from the truth, as non-mortgage expenses typically add up to around 50% of the rent, when averaged over time.