5 Things High School and College Students Can Do To Prepare For Investing In Real Estate

1. Build Your Credit

Credit is the most important requirement to get a traditional mortgage from any financial institution or credit union. The minimum credit score for a loan tends to be between 580-600. Generally, the higher credit score you have (620+) the better. The higher your score the lower your interest rate will be on a monthly basis. Keep that credit card paid off and make sure you have a solid credit score and report.

2. Save Your Money

You MUST save 40% of your gross income every paycheck. Yes, I know! You may have children, rent, utilities, bills, student loans or massive debt. Saving 40% of your income will provide the opportunity to save for your first investment property. The IRS takes 40% of your income. Why would you pay yourself anything less than your willing to give to the government every month? Open a savings account at your local bank or credit union and every month put 40% of your gross income into the account.

3. Build Team of Experts

Unless you have experience in running a real estate business, I recommend building a great team of experts who specialize with real estate investing. Many new investors put on all of the hats as the property manager, contractor, project manager, real estate agent etc. This will only lead to stress and eventually you will drain yourself from the amount of responsibilities it takes to run a successful investment business. The fee you will pay for each team member is completely worth the stress and time you would have if you did not commit to building a great team to run your investment business.

4. Education

Have you ever heard the quote “Knowledge is power”? Learning and knowledge is an important step towards financial freedom. Specialize in one type of real estate and one area. Master the economics of your market and specific type of real estate. The type of real estate should be chosen based on your target goal and financial freedom number. Books, blogs, podcasts, webinars, seminars, videos and audio books are all sources of building a solid education.

5. Take Action

Consistent action is the bridge that separates people who are successful living the life of their dreams from those who live in fear and regret. The worst thing in the world is REGRET! Imagine being 80 years old living with regret. Feeling the pain of not starting that business. Not spending enough time with your children and spouse. Not purchasing that first rental property. Don’t be the person who kicks themselves later in life for not preparing for your future! TAKE ACTION! If you fail, FAIL FORWARD. If you get knocked down get back up. You live once. You can’t fail, if you don’t quit!