BiggerPockets

Hello,
Im new to the forums and have read a lot of articals.
I am 17 years old and im in my 1st year of college in NJ. On my 18th birthday in about 3 months I will inherit $95k. Most kids my age are telling m to buy a $30k plus car with that money but I want to invest it. I want to get into investment realestate and I need some help from the gurus about what to do. Heres my goals and my situation

1) Im located In NJ, So i need property in that area

2) I'm inheriting $94k and am willing to invest all of it in real estate

3) I will have no credit as I would have just turned 18

4) I would like to be making Well into the six figure range per year within 3 years

5) I want real estate to be my career, my only Job

6) I would like to make at least $1k Per month within the next year.

7) Be worth (net worth) $1million with in 5-7 years

I would like to know if these goals are attainable and what would be my best route to attain them. I am very motivated. Thanks in advance

1) Im located In NJ, So i need property in that area

Probably smart for your first investment.

2) I'm inheriting $94k and am willing to invest all of it in real estate

You should probably take a small bit out... $4k... and just keep it for emergencies. You will want to have emergency funds at all times.

3) I will have no credit as I would have just turned 18

Credit is not required, but obviously helps.

4) I would like to be making Well into the six figure range per year within 3 years

Yes this is possible although it would take a lot of work. See #7

5) I want real estate to be my career, my only Job

Certainly possible.

6) I would like to make at least $1k Per month within the next year.

This is not a good approach if your goal is to make 6 figures in a year. See #7

7) Be worth (net worth) $1million with in 5-7 years

This is tough. In order to accomplish this you would need to earn $910K + living expenses (maybe $70K per year in NJ) within 7 years. With beginning principal of $90K you would need to earn over 40% ROI each year for 7 years in a row in order to accomplish this.

Originally posted by "lacedup"

The only reason I wanted to make "some" monthly money is so i can buy this car ive been wanting for years (subaru impreza wrx sti $32k).

That would be a terrible investment. Why would you throw away a full 1/3 of the money you are inheriting on an asset that will rapidly depreciate in value (or even worse if you would finance or, ugh, lease it). Get a $4K car and invest the difference.

Originally posted by "lacedup"

btw Do we have any millionaires on the board?

You need to read a book called the "Millionaire Next Door." Get it at the library and be prepared to be surprised. (The Wahsington Post even has the first chapter online:
http://www.washingtonpost.com/wp-srv/style/longterm/books/chap1/millionairenextdoor.htm )

You are at the perfect age to start doing the right thing, but it's easy to get distracted by mistaking "wants" for "needs."

quote="lacedup"]The only reason I wanted to make "some" monthly money is so i can buy this car ive been wanting for years (subaru impreza wrx sti $32k).
That would be a terrible investment. Why would you throw away a full 1/3 of the money you are inheriting on an asset that will rapidly depreciate in value (or even worse if you would finance or, ugh, lease it). Get a $4K car and invest the difference.

I totally agree and would never buy the car unless i was making 6 figures...... Do you have any suggestions on what i should do what the money? I need some ones input on what they would do in my shoes.

Thought I'd put in my two cents here...from experience in getting lump sums of money, blowin it, paying off bills to investing it. I will share my pre-investment experience.

You will surely regret just blowin the money, that's a given. I agree with buying a car around $4K, give or take.

Pay off bills, but it sounds like you don't have that worry right now.

I agree with buying credit as you will eventually need it no matter what. Best way at 18 is to get 2 credit cards, whether you have to go secured or not, or 1 credit card & 1 other such as department store or tire store like Les Schwab. This will help build your credit. If it needs to be secure, use some money to do that...the best way would be thru your bank. For example, if you have a Bank of America checking account you can ask for their cc that is attached to that account. You pay $99 to secure a $500 cc plus you get that $99 back after paying your monthly paymnts on time without missing any, after 12 months 8)

I personally would then take the rest and put it into a savings account (Emigrantdirect.com as they have the highest rate right now). It is linked to your checking account so that you can access it easily. 1) You'll be making money off your money & 2) That way you are doing #1 while educating yourself and waiting for that right purchase.

I hope that helps from another point of view!

Take Care - Denise :D