Starting early in real estate

Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes

I am 18 and in high school, and I know real estate investing is what I'm passionate about I've been reading books and have been obsessed with is for a couple years now. But I don't know where to get started so my big question is would it be beneficial to get a degree in business or is it better to join the workforce and get capital ASAP?

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Conner Olsen

Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes

If you want to get a property ASAP I would become a contractor or electrician or plumber. They are in high demand, you'd make good money, you can start your own business, and you can do work on your properties yourself. If you want to go to college I'd choose a school that would minimize student loan debt and pick a major that has high pay with few hours. Having a high W2 makes scaling a lot easier.

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Michael J.
Real Estate Agent · Greenville, SC · Member since 2021 · 210 posts · 142 votes
4y
You don't need a degree to invest in real estate. You could start out wholesaling properties to get money coming in. Or you could bird dog for investors to learn as you go and then move up to wholesaling on your own. You will meet a lot of other investors this way and also people who have private money to lend that will help with you acquiring your own properties. You probably live at home with your parents still but I would suggest when you decide the time is right to move out look at house hacking and buy a multifamily property and live in the smallest unit and then rent out the other units.
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Conner Olsen
Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
4y
If you want to get a property ASAP I would become a contractor or electrician or plumber. They are in high demand, you'd make good money, you can start your own business, and you can do work on your properties yourself. If you want to go to college I'd choose a school that would minimize student loan debt and pick a major that has high pay with few hours. Having a high W2 makes scaling a lot easier.
6 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
4y
Skilled trades! A college degree is great but it isn't what it's cracked up to be anymore. Our country has nearly $1.75 trillion in student loan debt. Do you want to join that club?? If a degree is that important try cash-flowing your way through school. Work construction all summer, get a real estate license, or work for a PM company.

At your age, in your shoes, I'd consider every option outside of college. It's funny looking back at my own life and realizing the little nuggets we miss out on. The older landlord that was SELF MANAGING 26 student rental properties, mowing all the yards, and working her self to death. If I had 2 oz of REI knowledge back then I could have seized that opportunity to help manage properties, learn from a vet, build a relationship, and probably buy my first property. That's where the launch pad you want to look for. Adding value to someone else.
5 Reply
Kelly Asmus
Real Estate Broker · Portland, OR · Member since 2018 · 123 posts · 71 votes
4y
Get a job with a builder, learn how construction works from the ground up, save up some money and invest in a house hack or a multifamily property where you can get owner occupied financing, move in, get rental income that pays most or all of the rent and make updates to the property. In 2 years, you can either refinance it and cash some money out to buy another one, or sell and buy another one, rinse and repeat. Or refi it, if it pencils, and hold it, buy another. Start building your rental empire.
4 Reply
Dan SheeksPro Member
Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
4y
Hey @Matthew Newsom
Congrats on your ambition!

Bigger Pockets recently published a book that's perfect for you! It's called First to a Million. You should check it out! If you have questions about the book, let me know. I am the author. :-) Also, check out this forum post.

In addition, DM me if you are interested in an online community of young, like-minded individuals.

Best of luck to you!
[email protected]Podcast Guest on Show #179
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Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Michael J. Thank you for the advice I just got a job as a BMW technician in Maryland I plan on living with my parents for a few years and move to Texas and take out a fha loan on preferably a triplex and house have so I have no living expenses and can get into multi family.
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Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Dan Sheeks thank you I just finished richest man in babylon and was looking for something to read, I appreciate it.
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Terry Miller
Akron, OH · Member since 2015 · 178 posts · 189 votes
4y
I have a lot of killer advice for you, but the most important piece is probably the most basic: become knowledgeable and disciplined about business and consumer/personal credit.

You are welcome.
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Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Jaron Walling thank you, I've never been big on college. I also had the underlying feeling college for me would be an excuse to not jump into investing, dead space in a sense.
2 Reply
Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Conner Olsen as of now I am on the automotive technician path and I know you can make good money while young and active.
0 Reply
Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Terry Miller thank you, I have been reading as much as possible and what is meant by discipline because I am struggling find steps to take.
1 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
4y
@Matthew Newsom That's great man! LEARN, learn, research, research, and save money for awhile. You'll be in a good position to buy in 2 years tops. Build credit buying groceries and buying gas with a card while living at home. Your local lenders will love you.

Nice you're working for BMW. They make quality products. I drive a modified, manual, 335i. So much fun.

Love to get my hands on that new M3 touring! Too bad Americans only buy SUVs.
1 Reply
Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Jaron Walling I will, is there a suggested credit card or does it not matter. Also please feel free to dm pics of the 335i.
2 Reply
Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
4y
@Matthew Newsom, I agree with the advice mentioned above. To add on, the most boring yet realistic and practical steps you'll hear; get a W2 job asap so you can qualify for financing, build your credit, save capital rigidly, do not take on unnecessary debt, and house hack your first property. The book, "Set for Life" by Scott Trench is a good read and will paint a better picture for you moving forward. I hope this helps!
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Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Michael Dumler thank you so much I'll be ordering that book tonight.
1 Reply
Amelia Foronda
Real Estate Agent · Lexington, SC · Member since 2022 · 13 posts · 9 votes
4y
I have a Bachelors in Business and it's doing nothing for me as far as real estate is concerned. Reading and connections with people is what your going to be most reliant on.
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Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Amelia Foronda I have been doing the reading part and I have looked for local real estate groups and mastermind groups but haven't had much luck.
0 Reply
Richard Hadley
Rental Property Investor · Waterville, ME · Member since 2018 · 36 posts · 19 votes
4y
@Matthew Newsom you don't need a college degree to get into real estate, I never finished high school and own and operate 2 very successful businesses. One is a construction company and the other is rental property.
I wish someone told me when I was younger, don't work for someone else, you will make them rich, and work for yourself, you have more control of your income than settling for a wage.
Best tip I could give you is, keep doing your research on whatever it is you wish to pursue,
And don't put yourself into debt, unless you're investing into something that will make you money.
The key is, you need good credit, because you are going to become rich by putting yourself in debt.
You need the banks to borrow money. You borrow other people's money to by something that someone else is going to pay for and it must cashflow in order for it to work.
0 Reply
Terry Miller
Akron, OH · Member since 2015 · 178 posts · 189 votes
4y
Quote from @Matthew Newsom:

@Terry Miller thank you, I have been reading as much as possible and what is meant by discipline because I am struggling find steps to take.

Okay, I said one thing, but after reading that you are into auto tech, also please get as knowledgeable as you can about electric vehicle and hybrid vehicle repair/maintenance. By the time you are thirty, we will have an even higher percentage of vehicles out there that are EVs or hybrids.
1 Reply
Douglas Gratz
Rental Property Investor · Philadelphia, PA · Member since 2018 · 260 posts · 145 votes
4y
@Matthew Newsom Good for you man! I wish I started at that age. Id say the two most important things you start doing is getting your credit score up and making money to buy your first deal. I think college is a waste if you already know what you want to do. A bachelors degree doesn't go as far as it used to , so you'd need a masters, and if you went that route, id say its only good because you would have back up plan if things went badly. That said college is a great experience, but thats that lol. Instead of college, interning for someone who is doing what ou are doing would make the most sense. Maybe they will pay you, maybe they wont, but I believe the best way to learn is by actually doing it.
Your biggest hurdle is going to be getting capital to buy your first deal, so figure out how you can make money and do that until you can jump into REI. If your parents believe in you, maybe they could lend you money for your first deal and you and piggy back off of that.
Another big thing is, what kind of real estate investing do you want to get into? You need a plan, starting with that. I personally think rentals is the way to go. Flipping homes is just a larger scale living paycheck to paycheck where as renting homes will give you passive income and build wealth . Lets say your parents are willing to help. They help you buy your first rental using cash, I recommend duplex's and up. You can then do a cash out refi and if you got a good deal on the home, you can walk away with more than you bought it for, use that money to do it all over again , rinse and repeat.
If your parents cant or wont help you out, you definitely need to find a job so that you can save money to buy your first deal or find creative means to get money to buy your first deal. Like Michael said above, multifamily housenhacking is a good way to start. Believe it or not, after you have your first, it will start to piggy back off each other and you will have your second home.
2 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
4y
That's great to hear young man, you are definitely in a right place, having that mindset at your age really amazed me! Education will also add value to your future plans in life so I suggest to keep on learning not necessarily having a degree but it is a plus point, but what I'm telling is to keep learning every single day!
Good luck Matthew!
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Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Richard Hadley thank you for the insight and what kind of rentals do you own?
0 Reply
Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Douglas Gratz thank you so much, and I am really interested in house hacking my first house so all or most of my w2 income can fuel my investment career. The sector of investing im most interested in is multi family like duplex to fourplex.
0 Reply
Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Wale Lawal thank you it means a lot.
0 Reply
Matthew Newsom
OP
Specialist · New Market, MD · Member since 2021 · 25 posts · 19 votes
4y
@Terry Miller bmw will pay for me to get hybrid and EV certificates.
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