How Old Do You Have to Be to Invest in Real Estate
You need to be 18 to sign legal documents but if you’re a teenager or under the age of 18 it’s still possible to invest in real estate. You just need to have a parent sign everything for you and buy the property in their name or in a corporation name if they set up a legal entity.
Alternatively, after you turn 16 a guardian or someone over 18 can legally sign for you and you can claim the real estate property as your own. But you won’t technically own it until you turn 18.
How I Bought Real Estate at Age 20
The very first time I invested my own money in a real estate investing deal was age 20.
So if you’re 17 and soon to turn 18 and wondering how to invest in real estate at 18, this section is for you.
It was a 4 bedroom, 2 bathroom property we picked up for $30,000 from a retiring landlord and inherited the tenant that was renting the property at the time.
After taking over the rental property, we evicted the tenant soon after so we could begin renovations and raise the rent to market rates, realizing a healthy return on investment.
Fast forward 7 months later and we finished renovations which we did ourselves to save money!
We spent roughly $15,000 on the rehab which probably would have cost $30,000 to $40,000 had we outsourced more of the work.
At an all in price of $45,000, we began collecting $925 in rent every month from the tenants which adds up to a gross rent of $11,100 for the year.
Subtract out roughly $3,000 per year in expenses for property taxes, insurance, and a few maintenance costs, we probably net roughly $8,100 on our $45,000 investment for a solid 18% return on investment.
In my case, I was using a loan so my return was even higher because I had less money invested in the deal.
Read More Real Estate Blogs:
- How to Get Started Investing in Real Estate
- How to Set Up an LLC for Real Estate Investing
- Real Estate Business Plan Tutorial
Tips on Investing in Real Estate Property as a Teenager
What I learned from investing in rental property at age 20 was that age really doesn’t matter. If you have money and know how real estate works, then making a purchase and earning profits is totally possible.
I encourage you to get started investing in real estate regardless of your current age. Don’t let it be a doubt that holds you back.
Don’t make these mental excuses:
- I’m not old enough to be taken seriously
- I don’t have enough money yet to buy property
- Tenants won’t respect me since I’m so much younger
Let my story serve as motivation to you. If I could invest in real estate at age 20 and succeed, you can do it to.
There are many ways you can get started buying your first investment property. Pick a strategy that fits your market and your financial situation.
Some real estate investing strategies include:
- Fix It & Flip It
- Property management
Spend time learning and self-educating before you get started. Try this real estate course.
I wrote an article on how to find real estate deals you should check out. It outlines many different marketing strategies to generate seller phone calls asking you to buy their property.
I also wrote an article on finding money for your deals. Being a young investor or teenager, you probably don’t have thousands of dollars save to buy property. Learn these strategies to fund a deal.
Thanks so much for being here today to consume my content and giving me time out of your day.
If you have a few extra minutes to spare, I’ve linked to some additional articles I think you’ll find valuable as well as my real estate investing course that has been getting great reviews from hundreds of students.
Additional Articles to Read:
- How to Buy Real Estate With Bad Credit Score
- Marketing for Property Leads with Neighborhood SEO Website Pages
- The Best Guide to Financing Real Estate Purchase
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