How do I get started

Question

Hey guys, I just turned 18 and I recently started learning a lot about real estate, I want to have my first property by the time I’m 20, as of right now I have a job and I am also doing other things to make some extra money. What would be the best things for me to do in order to get a property by the time I’m 20?

Michael Dumler · Answer

@Jace Perez, while it's not the case for everyone, however, at your age and the fact that you're just starting, your first property should be a house hack. Start researching this investment strategy asap! I also advise that you read "The House Hacking Strategy" by Craig Curelop and "Set For Life" by Scott Trench. You're already on the right track by securing employment and your strategy of buying by 20 is realistic if you stay with your current employer. Lenders like to see at least two years of employment. Moreover, for your basic but essential advice; save religiously, build your credit now that you're 18, limit unnecessary debt, etc. Hope this all makes sense and helps!

Bruce Woodruff · Answer

Make lots of money and/or lots of connections where you can access money. Get a second or third gig, like Uber, etc....

More importantly - learn all you can about RE. Volunteer at a RE office and/or on a Construction jobsite. It will do you zero good to have this lofty goal of acquiring properties by age 20 and then get there and have no clue what you're doing.

Owning property should not be your goal. Understanding properties is the key.

And remember, there is not a race going on that I know of. Take your time and accumulate money and knowledge. It will happen when you're ready....

Crisselda Clark · Answer

To start small, you could just find a mentor thats willing to bounce ideas with you and teach you along the way. Find someone who's guidance will add to your credibility for when you're ready to start pitching deals.

Crisselda Clark · Answer

An example would be; you could approach an investor with the packet you put together including the deal, the numbers, the ARV, financing strategies (utilizing private funds as well as maybe hard money or DSCR loans etc), the underwriting (market trends, comps, job reports, income reports, civil investments being made etc), the exit strategy, the risk etc. You've got to show you know what you're talking about to the point an investor would trust that you can execute this deal, especially with no money in the game. You're adding the sweat equity, if you make one person money (and yourself some while you're at it) then more will follow! I could go on and on with different ways to make yourself valuable but you get the point.

Jace Perez · Answer

If someone were to ask me that to be honest I have no idea what I would say. What is good value to bring to other other investors? If that is too broad a question u can just give an example

Crisselda Clark · Answer

Educate yourself and network. If I were to ask you; what kind of value could you bring to the deal if I were to finance it? What would you say? Learn how to manage construction, read market trends, learn how to run numbers, take classes (just watch out for the sales pitch at the end of every cheap real estate class), read books, join groups. That's how I got started in investing, I found a deal, secured funding, already had lots of construction knowledge so people trusted me with their money. I delivered and more people wanted in, and so it goes. Good luck!

Adam Bartling · Answer

@Jace Perez look at joining a wholesale or a regular real estate team.  Also look at tax liens.  If you are wanting to get into the loan business as a side hustle I am hiring ( 100% commission just as the other real estate jobs)

Jace Perez · Answer

Yea it definitely makes sense and helps, thank you and yea I’m a saver. I will also read those books. my plan was to house hack I was going to take out an fha loan get a duplex or maybe triplex and live in it for however long I need to.

Eliott Elias · Answer

Your sole purpose should be to find a deal. You can find a deal and easily find the money, you can't find money and easily find the deal

Bruce Woodruff · Answer

Just depends what you want to do. But it never hurts to learn anything about RE, the concepts are all the same, just different types of financing, loans and such....

How do I get started

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