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18 year old buying a house??

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Patrick E.

Foothill Ranch, California

Feb 07 '09, 11:06 PM


Would it be possible for an 18 year old to buy a house? I want to buy and hold it. How would I find financing if I were to do this? I have no money for a down payment. I want to take advantage of the housing prices before they go up again. Would anybody even want to give an 18 year old a loan??


Edited Jun 26 2010, 07:11


Nick J.

Real Estate Investor from Scottsdale, Arizona

Feb 08 '09, 12:01 AM


It would be possible!

I'm not sure buy/hold would the best strategy to use for your first deal.. You might want to consider strategies that will allow you to build up capital with little or no money... for example bird dogging for another investor, wholesale, Sub2, L/O.

and then move to the next step with a buy/hold property.... Great idea to get started while your young. I'm sure most of us on this board wished we got started when we were that young


Edited Jun 26 2010, 07:11


Patrick E.

Foothill Ranch, California

Feb 08 '09, 01:23 AM


Why wouldn't buy/hold be a good strategy?? What is bird dogging?


Edited Jun 26 2010, 07:11


Stephani Davis

Real Estate Investor from Tampa, Florida

Feb 08 '09, 04:04 AM


Hi Patrick,

I second what Nick said. Buy and hold is not a good idea if you do not have any cash reserves. What happens if you have a vacancy or unexpected repair? How would you cover those costs?

I started off buying rentals (well, it was only one, actually), when I had zero cash reserves, and it was a NIGHTMARE. I ended up getting lucky and selling it at the top of the market for a profit, but I would never advise anyone to buy something to hold if they don't have some cash in the bank.

Bird dogging is referring deals to other investors for a fee. Great way to get started.

Good luck,
Steph


Edited Jun 26 2010, 07:11


Patrick E.

Foothill Ranch, California

Feb 08 '09, 06:30 AM


So when you bird dog do you put the house under contract and then sell it to another investor?

Any books that can teach me about bird dogging? I would definitely like to get my start when I don't have to use my own money.


Edited Jun 26 2010, 07:11


Rob Lawrence

Rhode Island

Feb 08 '09, 06:45 AM


If you have the money, you can buy most anything. 18 is a perfectly legal age. How much do you have to put down and what are you looking for?


Edited Jun 26 2010, 07:11


Patrick E.

Foothill Ranch, California

Feb 09 '09, 07:18 AM


Well I'm pretty sure I'm going to take your guys advice and start bird dogging. I'm going to start looking for potential houses this week in my area. Should I just look in my city or what? After I find the houses how do I find an investor?

Now I read somewhere on this forum bird dogging is illegal. Is this true?

I was talking to my mom last night and she told me about how you can get your real estate license through Tarbell Realtors. I contacted them today and they said it costs about $300 and they prepare you for your state exam. My mom said she would pay for it. Would it be a good idea for me to get my license if I don't want to be an agent?

I'm pretty sure I want to be an accountant (depending on how I like it in community college) and I know for sure an investor.


Edited Jun 26 2010, 07:12


Nick J.

Real Estate Investor from Scottsdale, Arizona

Feb 09 '09, 08:21 AM


Patrick, I can tell your an excited young man. Maybe staying up a little to late watching those "buy a house for 300$" infomercials.

1st bird dogging isn't illegal...............in some states it's illegal to take a commission if your not licensed. But there is nothing 'illegal about getting paid for selling 'information'

2nd don't get carried away about becoming a realtor....You'll get brainwashed that anything outside of listing and showing houses is illegal.

You can however later on choose to get your real estate license to add as an additional tool to your investing go-go gadget belt....but I would wait for now.

for starters take that 300$ investment your mother is going to hand over and go and buy a nice pair of slacks, shoe's and a long sleeve shirt. Maybe 2 pairs if you shop at walmart ( I love wally world )

go to a local investors meeting and introduce yourself to some investors and tell them your interested in bird dogging for them, ask them what their looking for etc. etc....

refer a deal or 2, make a buck and continue to educate yourself in the mean time.

I know that was pretty generalized, but I hope it helps somewhat

ps, wear your nice clothes whenever your meeting an investor, realtor, homeowner or anyone else face to face that your talking to real estate about. I work out of my house but I almost always wear nice clothes incase I need to run out quickly I'm ready to go at a moments notice.


Edited Jun 26 2010, 07:12 by Nick J.


Scott Allan

Real Estate Investor from Fort Myers, Florida

Feb 09 '09, 06:46 PM


Patrick,
You say you have no money for a down payment. Do you have a job that will allow you to pay for the monthly debt on a potential home? Yes, home prices are low right now, but could potentially get much lower in some areas in 2009. That's great that you have motivation to do something but speak to your banker or loan officer and find out what you can afford. Good luck


Edited Jun 26 2010, 07:12


Patrick E.

Foothill Ranch, California

Feb 10 '09, 06:17 AM


Nick,

So bird dogging is when you sell other investors information on houses for sale? I thought you got paid when they close on a deal.

I'm going to a seminar for the real estate license next Wednesday, so I'll find out more about that.

I'm probably going to attend my first REI meeting this month. I can't wait for that.


Edited Jun 26 2010, 07:13


Patrick E.

Foothill Ranch, California

Feb 10 '09, 06:20 AM


Scott,

I currently do not have a job but I am looking. Its pretty hard to find a part-time job in my area, but I am looking. I think I'm going to start looking harder though.

If they get lower in my area then I would rather wait. How can I start predicting home prices in my area? Any websites that can help me with this?


Edited Jun 26 2010, 07:13


Nick J.

Real Estate Investor from Scottsdale, Arizona

Feb 10 '09, 07:12 AM


Originally posted by Patrick E:
Nick,

So bird dogging is when you sell other investors information on houses for sale? I thought you got paid when they close on a deal.

I'm going to a seminar for the real estate license next Wednesday, so I'll find out more about that.

I'm probably going to attend my first REI meeting this month. I can't wait for that.


Patrick, read between the lines. Real estate investing has a lot of 'gray area' What I'm saying is in most cases it's illegal to accept a commission without being a licensed professional.

if you over complicate the thinking from the beginning you'll talk or think yourself out of deals out of habit later on.

I'm not sure I can simplify my previous post, but if your still overthinking it, I can try to paint a picture for you.

Also don't be so anxious about getting your reale estate license!!!
you can really get yourself in a lot of trouble being a licensed professional while investing especially since your so new and have no clue whats going on.
You'll forget to disclose your licensed, make a mistake and then get in a lot of trouble because your a 'licensed professional'


Edited Jun 26 2010, 07:13


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