The real estate market is becoming increasingly filled with millennial investors as the years pass by. Millennials have officially become the largest living generation, surpassing the baby boomers, according to a pew research study. This is great news for millennials as they are going to be taking over the real estate industry. Millennials are generally classified as anyone born in the 1980’s to around the year 2000.
With millennials taking over, it is important to stay on top what it takes to be a real estate investor. Here are five tips to success for the millennial looking to break into the real estate investment business.
1. Stay out of debt.
One of the biggest complaints that millennials have is how much debt that they accrue coming out of college. According to Business Insider, millennials hold an estimated 1/3 of America’s consumer debt. Staying out of debt is a definitive way to put yourself ahead in the investor market. This will help you secure loans easier and faster, and give you the safety net needed if an investment doesn’t go the right way.
Networking is one of the biggest tools any real estate investor can use to stay successful. First off, you can gain experience and knowledge by talking with industry leaders in your area. This can help you stay on top of the trends that the market is facing and it doesn’t hurt to have a friend in the industry who can help you out if you get into a bind.
In almost every area there local groups for real estate investors that you can join to start networking right away. The power of social media can also put you in contact with local experts. Just about everyone is using social media today to connect with other investors.
3. Social media.
Speaking of social media, creating accounts on the biggest social media sites can have many benefits to your real estate investing business. There are many social media sites dedicated to real estate and real estate investing like, BiggerPockets and ActiveRain. Start promoting yourself on these sites and learn as much as possible from the established community members.
4. Follow the rules of the road.
This tip isn’t actually about driving, but it can help you drive yourself to better investments. It is important to be aware of all the laws and regulations that are established in your local area, so when you are investing in real estate you do not run into any problems down the road. Like mentioned above, communicate with your network about what there is to know about the rules, they’ll be sure to help you out.
5. Study the market.
The last tip is one that is essential to having success while you are investing. As an investor, you need to have everything figured out before you even consider investing in a property. This means that you need to understand how the housing market is currently operating, what your target price range is, knowing the time frame of how long or short homes are selling in your area, and understanding all of the costs that come into remodeling or flipping a home. A great resource for this is the social media website that was mentioned earlier, BiggerPockets. They offer great tools and analysis calculators to do all of the math for you.