What should my next step be? (beginner)

Question

Hi
I'm new to these forums. A few months ago, I read Robert Kiyosaki's Rich Dad, Poor Dad. After that, I bought and read a lot of the other books in the Rich Dad series. I then began reading real estate books from other sources. 
I just finished high school and will be starting university in January. I have no significant capital to speak of. My question is, what should be my next step? I'm currently looking for a mentor in my area that I will hopefully be able to learn from. 
Other than that, should I forget about trying to invest in the short term future and rather focus on gaining a solid education about real estate so that I can start investing later? Or is it possible for someone in my position to actually get started? 
I'm starting to feel a bit "stagnant" and unsure of where to go next.
I was told by someone that I should basically forget about real estate for the meantime, get a job for a source of income, and then in a few years (after university, when I have a job and have saved up some capital) I can begin thinking about real estate. Is that sound advice?
Thanks in advance for your guys' views.

Bill Gulley · Answer

My very best advice for you is for the next couple of years concentrate on getting a good education and study, that is your primary job. See if you can work for an investor or for a Realtor as an assistant, put signs out, run errands, check on houses, etc. and learn in your spare time.

If you come by a really good deal, consider it, but I'd suggest you take care of your first job first!

There is no race going on, there will be plenty of foreclosures 2,3,4 even 5 years from now!  Learn first! Good luck, Bill

Eric M. · Answer

Emilio,

I followed your suggested path.  Became an entrepreneur.  Have more money than I ever thought I would.  Live in a great house in a great city.  Work very few hours and get to spend tons of time with my family, at the beach, on the boat, at the pool, take long vacations.  A great life.

And most every week at some point it crosses my mind that I wish I had finished college.

The kid should go to school.  He can learn to be an entrepreneur or learn real estate too, but he should go to school.

Dave Grosse · Answer

I agree with Bill.  I essentially passed on college and I'm paying dearly for it now.  I have a few deals going now and should make some good coin from them.  BUT, it would have been much less stressful if I had a job that provided enough to pay my bills while I was getting these deals done.

Finish school, get a job that you don't hate, and then find your first deal.

Bryan Hancock · Answer

You don't need to "forget about" real estate though.  Educate yourself in your spare time, go to investment clubs, post and read on BP, get involved in some wholesale deals, etc.  The best way to learn is by doing, but you need to have a source of income and some capital saved to play on your own.

Justin S. · Answer

I would give yourself every bit of advantage in today's world and that includes getting a solid education.

One of the best RE jobs that I know about are runners for auction buyer.  Several companies I know hire college kids to run properties for them, you will get a great RE eduction and get paid while doing it.

1.  You will learn how to get over your fear of talking to distressed homeowners.
2.  You will learn how to look for damage and estimate repairs.
3.  You will learn what neighborhoods are selling quickly and what properties are comping at in a certain area.
4.  You will build your network of investors, agents, and lenders.
5.  You can help out on rehabs.
6.  You will learn the "real estate lingo"
7. You will learn how to wake up at 5 am (this comes naturally as you get older or have kids)

My advice, go to school and get a RE job.  By the time you are done, you'll have bachelors in some subject and a masters in real estate.  Good luck.

Bill Gulley · Answer

Wise choice!

Real estate is all about people. Birds of a feather flock together. You will be flocking at social functions in the future with your peers. That could be dinner parties with community leaders, professionals and those of means, or it could be at the neighborhood bar with those who could be of little help to you in achieving your goals. Having a good education will allow you to attend both, not having one will likely be a limitation . As that may sound classest, it is the reality of our social system. So in real estate, it's the difference in doing mostly 25K to 50K residential properties (nothing wrong with that)  and having access to 250K and up properties, especially when you have earned sufficient money to play in that area.

There are examples of people with a 3rd grade education, I'm sure, doing million dollar deals, those folks are the exception and those examples are from years ago, in the past. Nothing is impossible, but success today and in the future without an education will be more difficult to accomplish.

If you become a MD, you'll have access to other like minded professionals with cash to invest and who can support your endevors.

Last statement, On my first day as a college student my first class was college oreintation. The first question asked was "why are you here?) I heard all kinds of answers form getting a better job to having more self esteem.
The correct answer was, to increase the quality of your life. College does not gurantee wealth or fame, but it does teach you to think on different levels, to analize situations in ways you can not without an education. It effects your quality of life from social aspects to making better personal financial decissions to being aware of options that may not be understood without a higher education. College does not make you smarter, it makes you more aware. Good luck, Bill

Eric M. · Answer

Emilio, 
I just may go back.  But it is not the same experience as doing it when you are "college age".  That is part of the whole benefit of college.  The experience, as well as knowledge, etc.  Doesn't matter what I end up doing with my life.  The question is what should this person do right now.  I am trying to give him the benefit of my hindsight.

You can have your opinions about the benefits of secondary education and whether it should cost so much, but none of the research shows your statements to be true.  Of course he CAN BE successful without college; but, on balance, for a male especially, the financial benefits of attending and graduating college are FAR GREATER than for not attending college.
The whole point is that this kid doesn't really have to make a choice here, he can do both-go to college and pursue RE.  That is what I recommend.  It gives him options down the road.
Your plan gives fewer options.

BTW, you might complain about graduating from college with alot of debt, but the school of hard knocks is not always cheaper to attend and it certainly isn't free.  
My first business venture (when I should have been in college) was ill-conceived and poorly executed and I walked away from it with 75K in debt.  I learned a tremendous amount from it and that experience led to some of my later successes.  But that was my "college tuition" I guess.

My point is that skipping college has its costs too, though sometimes they are less obvious.

Curt Davis · Answer

Hey Amilio,  do you want to start a pyramid business??  I will sign you up for $300, you get others to sign up for $500, you and I share the profits and continue to sign people up.  We dont need to go to college for this.  Its like creating money out of thin air.

I am in real estate,  I finally finished my 2yr degree at Xmas.  I didnt need to do it, I make great money without a degree. But,... if I ever left real estate, then what?  I completed it for the fact I wanted to have my degree.

Emilio Ramirez · Answer

With all due respect to the previous three posters, I'm going to disagree. While school can be the right thing for a handful of people, in my opinion, it is a huge waste of time and money.

Why would anyone pay good money just for someone else to tell them what to do?

And then what... you graduate and trade your time, which is your most valuable resource, for a paycheck.

Learn to be an entrepreneur. Tell yourself what to do. Don't look for someone else to justify your goals and desires in life or worse yet, define them.

There are many ways to get an education and college is only one of them. You're not going to learn how to run a business in school. You learn how to run a business, by running a business.  Yes. You should do a lot of research before you start running a business, but it sure as hell doesn't take 4 years or require general education requirements. And an entrepreneur would find a way to minimize his costs to learn that information or even get paid to do it.

What should my next step be? (beginner)

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