Let’s face it: when it comes to buying property, Millennials have had a much harder time than their parents did. Not only have house prices continued to rise over the past thirty years, in many industries wages have stagnated and even dropped. For every Millennial real estate investor wunderkind, there are ten others struggling to pay the rent or wrestling with an unwieldy mortgage.
But while it might not be easy, there are ways for Millennials to take advantage of the real estate market and even start making deals of their own, even without the help of affluent parents or major start-up capital.
By starting small and learning how the industry works from the inside, it is possible for ordinary young people to build thriving careers for themselves in today’s real estate market. Here’s how.
Knowledge is Power
As in so many other industries, the key to success in the real estate industry lies in understanding its dynamics and leveraging this knowledge to make lucrative deals. The best way to develop this kind of insider knowledge is by working in the industry yourself as a real estate agent or broker.
In most states, becoming a licensed real estate agent is a relatively straightforward process that simply involves taking a test and passing a licensing exam. Many of these courses are offered online, which means you can prepare for the California real estate exam without having to quit your day job. When you’re ready to take the exam, all you need to day is make the booking and travel to the test centre.
Real estate agents work under brokers for a commission, and handling the everyday aspects of purchases and sales is a great way to build a good knowledge base about the real estate industry while also saving up money so you can start making your own real estate investments.
Every Real Estate Empire Starts With a Single Building
When it comes to buying your first property, not everyone has the same advantages that Donald Trump benefited from. While Trump’s early success in real estate largely hinged on his father’s wealth and good credit, most Millennial investors have to raise the capital to purchase their first business the hard way: by working for it.
The good news is that once you have a foot in the door, it becomes much easier to keep growing. This is not only because you can fall back on the profits from your first building in order to finance future purchases. The equity that even a single house represents allows you to borrow against it when purchasing more properties, and these properties in turn provide even more leverage.
Naturally, it is important to be strategic about early purchases, and to avoid ending up in a position where you are over-leveraged and vulnerable to sudden changes in the market. While it may be prudent at certain times to take major risks, you should never do so if doing so puts you in a position where a downturn will sink you completely.
The most important thing to remember as you begin your journey into real estate is that very few people in this sector of the economy make their money overnight. What starts as a modest investment into a handful of properties can grow over time into a real estate empire, but only if you understand the bedrock principles and have the knowledge you need to make smart investments.
If you are willing to work hard, are patient, and have a high tolerance for risk, however, the sky really is the limit!