Many college students experience a scarcity of funds as they pursue their education. When it comes to real estate investing, considerable profit can be earned from purchasing properties and either renting or selling to other individuals. While college students are typically under the impression that they don’t have the financial means to invest, investing in real estate during college can actually prove to be a viable option for students seeking to become involved in the real estate industry or who are looking to start growing their financial futures as early as possible. As long as students are willing to commit time to research and becoming educated about the industry, it becomes possible for them to turn profits. Here are some ways students can begin real estate investing in college:
For students looking for a more hands-off approach to investing, there are two investment options: a REIT or a syndication.
A REIT, or Real Estate Investment Trust, is akin to a mutual fund. This investment trust is a real estate holding company that invests funds supplied by shareholders into real estate properties. The profits made from those properties are then distributed among shareholders in the form of dividends. REIT’s are especially feasible options for college students, as investments require minimal amounts of money and can be established with help of a financial advisor.
A Syndication is similar to a REIT, as individuals financially contribute to a real estate deal. Unlike REITs, however, syndications are often built on relationships, where investors will purchase a single property together, say, an apartment complex, and share the profits. This enables investors the ability to purchase a larger asset than they might have been able to do independently.
Students who feel as though they have enough of a background on real estate investing can opt for more a more hands-on approach.
Wholesaling entails finding properties for sale, signing contracts to purchase those properties, and then selling obtained contracts to other investors, often at a higher price. By pursuing this method, individuals act as a liaison between an eager property seller and a “cash buyer,” commonly a house flipper, without officially taking ownership of a property. While this approach appears easy, it takes a firm background in the real estate industry as well as considerable interpersonal skills to successfully make a profit.
College students don’t have to wait until graduation to become active participants in the real estate industry or begin investing in their financial futures. With enough research, students can begin investing in real estate to turn considerable profits.