Investing in Real Estate at a young age requires a different approach, style, and skillset than investing at an older age. However, the principles behind sound investing do not change whether you are twenty or eighty. This article is part one of a four part series on how to begin investing in real estate at a young age. If you only read one article – let it be this one.
My brother recently received his tax rebate check of over $1000 and asked me, “I want to invest this money – how should I start?”.
He expected me to tell him the secret to buying a house with a minimal down payment or a hot new tip on investing in gold (which I am adamantly opposed to, but that is topic for another post). Instead, I told him to use that $1000 to gain education. No, I don’t mean college or a cheesy seminar with a so-called “guru”. In fact, I suggested he use his money to take a week off work and spend a week at the beach reading books.
Education is the first step to any investment dream and congratulations, by reading this blog you have already taken that first step.
There are numerous ways to learn how to invest, most which are free. The technique you use to learn greatly depends on your learning style. The following is a list of just a few. I encourage you to check out as many as you can to determine your favorite way to learn.
- Books – This learning method goes without saying, but I would like to emphasize the power of public libraries in gaining free education. This technique resonates most with my personal learning style. During the first year after I decided to get into real estate investing at twenty-one years old, I checked out every book in my library’s regional collection dealing with real estate investing – well over a hundred – and read each one cover to cover.
- Blogs – These are an amazing source of information, written by people living in the trenches of real estate. Websites such as http://www.BiggerPockets.com offer hundreds and hundreds of articles, forums, and blog posts teaching every conceivable aspect of real estate investing.
- Mentors – If I were to go back and start over, I would have started earlier with this technique. People love to share what they know, and seasoned real estate investors are no difference. Get to know who the major players in your town (ask any real estate agent or join your local real estate investment club) and offer to take them to coffee. It is amazing the number of pitfalls and regrets you will avoid by simply learning from those who have been there. In addition – these contacts you make will help you in more ways than one in developing you into a world class investor.
- Podcasts – A recent innovation in the real estate investor world, there have been a number of great Podcasts that have emerged in the last few years. My current favorite is the Real Estate Guys Radio show. If you have an iPod or Iphone, you can listen to over a HUNDRED hour long shows covering a wide variety of real estate topics whenever you want – for free.
What are your favorite inexpensive or free ways to learn?
Leave me a comment below and then click here to read part two of “Getting Started Investing In Real Estate.”