Structuring a Syndication Deal at the age of 20
Real estate syndication is a more advanced form of investment, especially if you are a business integrator rather than an investor. Investing in real estate is something most people don't think about until later in their careers. But getting a head start at a young age can prove to be very beneficial. While most 20-someones are focused on launching their careers and moving up the corporate ladder, one of the wisest decisions is to set aside some money to invest in real estate. One of the biggest reasons why you should invest in real estate in your 20s is that, when it comes to real estate investing, the longer you own a property, the better your investment will be.
Here's why you should start investing in real estate in your 20s:
1. Earn unearned Income from an early age
Unearned income is incredible. If you can generate positive cash flow from your investments, you can generate a very beneficial passive income to supplement your salary and pay yourself off. Increase your retirement account or provide a budget for things you otherwise can't afford. Passive income also provides additional security. Thanks to compounding interest, the sooner you start investing, the greater your returns will be. Mortgage payments remain constant, but rent increases with inflation, so cash flow increases over time.
2. Youth Adaptability
In your 20s, you are often more flexible with your time and less committed. One of the most popular ways to get involved in real estate investing is by buying homes or living in the same property you rent. After living there for a year, you will rent it out. You can repeat this process every year. As you get older, it becomes harder to find the time to educate yourself on these things because of your greater commitment, but it may be easier to find the time if you start investing at a young age.
3. Build your Portfolio with Experience
Investing comes with a learning curve. Some investments perform much better than others, and it takes time to learn how to select the right qualities and opportunities and how to make them work well. Having passive income alone is probably not enough to achieve financial freedom, but using a diversified portfolio can help.
4. Preferential Tax Treatment
One of the many benefits of owning real estate is the incredible tax savings. You can also deduct the depreciation expense of the asset. Investing in real estate has countless other tax benefits, making it one of the best investment options.
Investing in real estate in your 20s is one of the best things you can do, and if you do it right, the benefits you'll get will far outweigh the effort required. If you think you can pursue investing in real estate, here are some tips to get you started:
a) One of the most important things to remember about property investing in your 20s is the importance of research. Thankfully, there are lots of assets out there to help you examine everything you need to understand.
b) It is very important to make sure you have a solid credit history so that you can get a loan at a reasonable interest rate. Perhaps one of the biggest hurdles to buying rental property in your 20s is having a good credit score.
c) Real estate is all about relationships. If you can get started with your network now, there are big benefits. One of the best things you can do to start buying real estate in your 20s is to connect with investors, contractors, realtors, property managers, and inspectors.
d) There are numerous approaches to investing in real estate. The most common strategy that comes to mind is buying and renting property. It is important to explore all options and choose the best strategy.
Final Thoughts on this
Investing in real estate at a young age is one of the smartest decisions that will put you in a better financial position in the future. If you sit down and save at that age, you can buy whatever you want in the future, and you get a passive income.