hey guys, just joined welcome me

I'm currently 18 with a job around 30k-35k a year still staying at home home with my parents and plan to for another 3 years or atleast until I'm done with my degree ( project management ). So here are my plans.. I've looked into investing and such; just doesn't seem like the interest rates and profits are enough for me with just " investing" .. bonds and such. So to get down to it, I think the best way to begin is start by buying a piece of land. I'm starting low, I found an acre for around 16k in an area that most people usually rent out their houses. I'm basically just looking for opinions and doing the best to read each and every important thread you successful guys out there have to offer. Thanks for your time , please share opinions.

I think eventually if I went through with this, I would put a house on it / rent it out. I'd rather get moving at a young age.

Edited: 06/26/2010 at 03:22AM

Tom McGiveron

Residential Real Estate Agent · Moriches, NY

635 posts
2 awards
50 influence

Feb 14 '07, 09:39 AM

first - welcome to these forums!

okay for your first investment - land is probably not the most ideal investment - because it doesn't put any cash in your pocket and there are really no tax benefits other than writing off the taxes.

basically cash will flowing OUT OF YOUR POCKET rather than OUT AND BACK IN TO YOUR POCKET - possibly like a rental unit.

if you were to start a business - say a pizza shop - now you're just starting out...would you invest in a pizza shop that doesn't make any money and only costs you money to spend on it????

of course most businesses when they start out, do not make a profit. it takes some time, but the pizza shop, AFTER START UP COSTS, will hopefully make some money - CASH FLOWING IN YOUR POCKETS - even if it's breakeven.

buying land for your first investment is like buying a pizza shop that ONLY COSTS YOU MONEY and returns 0.

while land is attractive because " they ain't makin no more of it" - it's something to reconsider.

what is attracting you toward spending 16k on this property?

is that below market?

here's the GOLDEN RULE for real estate investing:

if you're buying at market value - you're not investing and you're not an investor.

Edited: 06/26/2010 at 03:22AM

Wes Tuinstra

665 posts
2 awards
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Feb 15 '07, 05:19 PM

Hello " Crazy" and welcome!

Once again, Noobdog nails it with advice to the newcomers. I think you're going to find that after you've spent a little time amongst us you'll see that we're all crazy and that you'll fit right in. I think you'll learn lots from the discussions here because Noobdog is a good example to follow.

Here's to your future success! :beer:

Edited: 06/26/2010 at 03:23AM

Sean Gallagher

Real Estate Investor · Millsboro, Delaware

120 posts
1 award
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Feb 15 '07, 08:36 PM

yeah the " crazy3rdgen" comes from my crazy interest in 3rdgen camaro's .. always use this name : ) . But before I make any decisions I fully understand what he said above and the comments he left are more like, rewards soon after money is spent. I was looking more at it as, more money/time put in, even more reward in the long run. But it would take a good amount of time to finish everything. Hmmm might need to change my approach.

Edited: 06/26/2010 at 03:23AM

Les Williams

Real Estate Consultant · Phoenix, AZ

223 posts
1 award
50 influence

Feb 22 '07, 09:37 PM

Hey Crazy,

Number one stop people from calling you crazy because it will stick and it
wont sound good in corp America.
Next:
Your young making 30 to 35k and living with the Folks (parents).
I would relish the free or low rent, as I husttle for more money to save.
Then after those 3 years that you set as a goal. Like you said, Learn from
the people in this forum. Beleive me you will learn from this forum. Then take this knowledge and your savings and go find an investment you can
turn to double your money.
Just like Noob said " Land is probably not the ideal Investment" , And, I
second that motion!

Stick around, you will do well.

Edited: 06/26/2010 at 03:23AM

Sean Gallagher

Real Estate Investor · Millsboro, Delaware

120 posts
1 award
50 influence

Feb 23 '07, 01:31 AM

thank you, Its hard to see where to start around my area.. Everything has been developed or is plan to be developed. People with gigantic pockets are coming around a buying every piece of land.. the business has slowed down greatly though and houses aren't selling like they used to. So right now I'm trying to research and find my best approach; however, it seems in some circumstances that deals aren't always planned... find a deal, you take it. I have a lot of learning to do with all of the professional talk.. like cash flow, lender's, and all the special terms that I am not fimiliar with that you guys use on a daily basis. What I am doing now is just putting away most of the money I make.. because in my eyes saving can never go wrong.. it's just what you do with your money that can make or break a decision. What I'm trying to say is.. I need some direction. Some day :sleep:

Edited: 06/26/2010 at 03:23AM