How Students Can Make Extra Cash in Real Estate
It’s true that most of college life centers around classes, dating, and partying. But some students prefer to achieve financial freedom, especially if they have student loans. And they do it through investing in real estate.
However, most people think that investing in real estate as a college student is a far-fetched dream. And their reason is that students have limited time, credit, money, and professional reputation.
Regardless, you can make extra cash in real estate. We’ll show you practical strategies to invest in real estate to help you build wealth and pay off all or most of your student debts.
One of the best ways to invest in real estate is through wholesaling. Wholesaling is about searching for good deals. And when you find some, you sell them to other real estate investors. You don’t necessarily own the property.
So your job is to find a seller whose investment property isn’t on the market, but it’s about to. Then, you find a buyer and when it gets sold, you get a cut from the sold price. Basically, you’re the middleman connecting the seller and the buyer.
As a college student, it’s great to be a wholesaler in real estate because you don’t need money or assets to do it. So if you want to make extra cash in real estate, you can start from wholesaling.
You can use the money you get in wholesaling to invest massively in real estate or pay off your student loans. In addition, if you graduate with some of your student loans unpaid, you can use the numerous loan forgiveness programs like Public Service Loan Forgiveness to pay off your debt.
However, wholesaling isn’t that simple. You’ll need to have good networking, hard work, education, commitment, and education. Nevertheless, if you master wholesaling, you’ll be highly effective in finding real estate deals.
2. House Hacking
Another strategy you can employ is house hacking. This method involves purchasing a multifamily investment property. Then, you live in one of the units and rent out the rest. For example, you can get income from the other properties or units if you rent out on Airbnb.
If you manage the investment property well and get a great deal, the income you receive from the tenants can help you pay off your whole mortgage. You can even get some extra money every month.
The income you receive should cover all or most of your housing expenses. This strategy can help you save lots of money and even live for free. You can build equity as you pay down your mortgage. And you can use that to buy another investment property.
You can decide to keep it as an entirely rental property when you move out, thus boosting your cash flow. As you gain skills for being a landlord, it will help you later as you start your journey in real estate investment.
Also, the money you get from house hacking can help you get private student loan relief. As a result, you’ll be free from student loans and effectively focus on your real estate investments.
3. Real Estate Partnerships
You can also invest in real estate as a college student without borrowing money from friends, family, or mortgage loan lenders. Real estate partnerships can help you with that.
As a college student, you might not have adequate funds for a down payment. However, it’s possible to find a real estate investor with enough funds to buy the property. The investor may even want to diversify and invest in real estate but may not have the time or knowledge to push it through.
That’s where you come in. You’ll be responsible for the management of various aspects of the investment property. But before you proceed, make sure that the terms and conditions are understood by both parties and agreed upon.
The allocation of profits and responsibilities should be laid out and fair to all the partners involved in the purchase.
Regardless of being a college student, you can still make extra money in real estate. Even though it might seem like an impossible task, many people have done it and made money off it, so can you.
You can allocate time to learn about real estate investment before you start the journey. You may not become a millionaire. But it can give you a head start towards financial independence by paying off your student debts.
So do all you can to learn about real estate investments before you proceed.