Are you too young to get into the real estate business? Is there even an age that people recommend getting started?
There are a lot of myths about age and real estate out there. However, you might be surprised by the truth. So how old do you really have to be in order to buy property or start a real estate business? Are millennials actually at a disadvantage in this arena? How old is too old? How can you close that gap no matter what age you are at? The answers to these questions, and more, can be found below:
How Old Do I Have to Be to Buy Real Estate in the U.S.?
There is a lot of confusion regarding the age investors should be. That said, it’s always smart to speak with an attorney who is familiar with your local laws before taking the plunge. More than likely, you will find that there may be no age restrictions on holding title to real estate in your area. However, due to contract law and restrictions on borrowing and mortgage lending, it may be wisest for someone who is at least 18 to be on title to the property. Trusts and other legal entities may be used to buy, hold, and sell real estate on behalf of younger individuals too.
There are documented news stories of kids 14 years old, and probably younger, investing in rental properties, and even flipping houses. They’ll typically hold title in a parent or guardian’s name until they turn 18.
The Advantages of Investing in Real Estate While You are Young
Why worry about investing in bricks and mortar while you are young? The earlier you start, the greater the benefits – if you do it right. Time is the best ally of all investors. Compound gains add up significantly overtime. That means you can take your time to do things right, while your wealth grows, along with incoming cash flow. Whether you dream of taking a gap year, going to the most expensive college in the U.S., starting your own business, world traveling, helping family, or being a philanthropist, investing does immense good for the world – real estate investing can help make that possible.
Starting a Real Estate Business Early
Once young investors start seeing the many rewards of being involved in real estate, starting a business is only the next logical step. Boundless optimism and energy can be an incredible asset for a business owner and real estate entrepreneur. In today’s start-up culture, people love young entrepreneurs. They are prized for their ideas and connection to the next generation’s mindset. There are, however, obvious challenges: experience and being taken seriously. There’s a reason that most legendary serial entrepreneurs, legendary investors, ‘moguls’, and presidential candidates are older. There’s a lot to learn. Unless you invest in your real estate education, or adopt a proven system upfront, there can be a lot of trial and error. Sometimes that means having to start over from scratch (several times).
Are You Too Old to Get Started in Real Estate?
Contrary to popular belief, the average business founder is actually 38 years old, has 16 years of working experience, and a master’s degree. Almost 40% of those that actually get funded be venture capital firms are over 40 years old. The concept of being too old is by no means a reality.
There are many pros to getting into real estate later in life. You have a richer network, more life experience, and your appearance can certainly lend a lot of credibility. In fact, the older you get, the more crucial real estate investment is. Everyone needs passive income in retirement, and real estate is the ideal vehicle for that. America is also unique in the fact that you can still take out long term loans at great rates in spite of your age.
The truth is that you are never really too young or too old to invest in real estate, or own a real estate business. Don’t let anyone tell you that you are. However, there can be disconnects if you land on one of the extreme ends of age demographics. You’ve got to be able to connect with consumers and businesses. You’ve got to be taken seriously. You’ve got to be able to fill in the gaps in knowledge. That’s a lot easier said than done. So look for proven systems. Stick to common sense investment and business principles. Find balance and get the edge with co-founders, key staff members, or coaches that bring to the table and the brand what you don’t have. Above all, no matter how old or young you are, now is the best time to get started.