18 year old, Looking to get into RE

[Braden Hunt]

All, 

I'm 18 years old and have a passion to learn and grow in the real estate investment industry. The questions I have for the forum today are many and am just looking for guidance from anyone willing to give it!

As an 18-year-old, what is the smartest first step into RE?  

Is getting a real estate license worth it as an investor? If so, what are the logistics of working for a broker as someone who plans to invest? 

When deciding what ways to invest in RE ( Flipping, Rentals, Wholesaling) how do you narrow it done to your specialty? 

As a newbie looking to step into RE, Are there internship opportunities I should be exploring? If so, How do you recommend going into these opportunities with a lack of experience? 

[Olivia Radziszewski]

@Braden Hunt- I would listen to podcasts and read books if you are not already. I would also start going to meet-ups! You can find real estate meet-ups through the Meet-up app. Awesome to see you so young and interested in real estate. Good luck!

[Eliott Elias]

Education is important, but learning on the field is more valuable. You will not have a specialty until you have done all strategies and realize what you enjoy doing the most. No internships, if you have a skill you feel could be beneficial for an investor sell it. 

[Alex Fenske]

Find a mentor, and see if you can accomplish that by networking through people you know and trust. There are such things as bad advice, well-intended people who steer you wrong, and ill-intended people. Gaining a lot of book knowledge and not having experienced advice is a trap, and so is relying on the wrong advice; ask me how I know. A trusted mentor will be able to direct you to valid learning resources and keep you out of the woods. 

As for whether to get licensed, in many cases it can be very helpful as it has been for me. Getting licensed gave me the ability to learn the industry more rapidly and has become a very valuable tool in my toolbox. But most of the value of the license has not been in simply having it, it's been from becoming an active real estate broker. If I've participated in a few dozen deals as an investor, I've brokered hundreds, and the experience of those hundreds of transactions has taught me a great deal about how to be a more successful investor. The only reason it might not make sense is if you don't use it, because it does cost money to obtain it (about $2,500) and maintain it (another $1,500-$2,500/yr). If you're not doing deals either as an investor or a broker, the costs have no return.

With all that said, I made some dumb mistakes when I first got licensed because I thought the license meant I knew what I was doing or knew better than experienced agents. In retrospect, until I'd learned more from experience, even when I was licensed I should have still been working with an experienced agent for my investment deals.

[Jared Hottle]

Some good advice on here. I would not get my license unless you want to be a full-time real estate agent for a job. 

I would listen to podcasts, and start going to real estate meetups. Listen and learn from people see if you can help them out getting units ready or helping them manager their properties. Also start walking/driving for dollars in your area. Find owners on the county tax assessor website and send them letters/call them. If someone wants to sell use your connections with the meetup or other investors you meet in the area to see if you can partner with them on the deal. 

Additionally, if you are a w-2 full time employee I would talk to some local banks and get pre approved for an owner-occupied loan and start your house hack journey.

Very excited for you!

[Trevor Naumann]

Personally i think there is no substitute for trying to create a great business first. It will become much easier to invest your money without the stress of eating, housing, having fun etc. Because, you have decided to get into real estate the next logical step might be in starting a business/ getting a job that will support your knowledge and understanding of real estate investing. For example. I am an agent who works almost exclusively with investors. I used to analyze deals before being in the industry but now finding and analyzing deals is one of the most important parts of my job. Thus i have gotten 1000% better at it. After my clients buy a building my relationship with them allows me to see first hand their experience in managing the property. In many ways i am with them for the wins and loss's without having to spend my own money. Then when it comes time to sell i am there to help them through that process. If they are flipping a property i likely helped them comp the home on the purchase and on the sale. This has helped me learn the process of flipping a home again without losing my own money. 

The best part is that i am saying this only from the perspective of being an agent and there are a ton of jobs in real-estate. You could look at fields in Title work, Management, rehabbing/construction, development, lending, deal sourcing, coaching, airbnb services, tech/software, asset preservation, Closing and so on and so fourth and have a similar outcome. 

last should you get your license? Only if your pursuing a job that requires one.

[Nathan Gesner]

Quote from @Braden Hunt:

Welcome to the BiggerPockets forums!

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.

5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.

6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.

[Paul De Luca]

Quote from @Braden Hunt:

All, 

I'm 18 years old and have a passion to learn and grow in the real estate investment industry. The questions I have for the forum today are many and am just looking for guidance from anyone willing to give it!

As an 18-year-old, what is the smartest first step into RE?  

Is getting a real estate license worth it as an investor? If so, what are the logistics of working for a broker as someone who plans to invest? 

When deciding what ways to invest in RE ( Flipping, Rentals, Wholesaling) how do you narrow it done to your specialty? 

As a newbie looking to step into RE, Are there internship opportunities I should be exploring? If so, How do you recommend going into these opportunities with a lack of experience? 

 All of the answers to your questions are highly dependent on what you want to do. 

General advice - You need to pick an investment strategy and make a plan for carrying that out. There is no one size fits all approach to real estate investing. If you don't already have a W2 job, you should consider getting one to start building your savings and work experience. Get educated and focus on a niche.

[River Sava]

Hi Braden- wonderful that you are so passionate about jumping in at an early age! 

The best thing you can do is educate yourself. Books, podcasts, market research,etc. The better your understanding of that, the easier it will be to narrow down where/how to start investing. I can point you in the direction of some great resources if interested!

[Payton Deeter]

18 is when my interest sparked also. I listened to podcasts all day every day at work. At 19 I decided to get my license, took about a year to get it but I would recommend it at this age. There are many of my friends that I have been able to help them buy their first house, and even if you don't want to be a heavily involved agent, just helping your friends from school is a good way to get some cash to start saving capital. I haven't bought my first investment year but owning my license has allowed me to gain experience and it has been easier to find investors in my local area and is allowing me to talk with and learn from them.  

Plus, when you have your license, you'll never have to pay an agent fee if you ever decide to sell any of your investment properties. 

I have found this to be a less risky way to get started and would recommend getting your license as well. At this age, I would say get all the knowledge you can to best set yourself up for the future. 

[Joseph R. Smith]

1) The smartest first step and how do you narrow it down to your specialty-is knowing your own strengths and weaknesses regarding different real estate investment types, and styles, and strategies. (Are you able to learn to rehab property?, or are you more of a people person good at selling for comissions?, does managing tenants scare you or do you view it as something you can become knowledgeable on quickly and address any headaches as just part of the business?, Do you prefer STRs, or BURRR and for what reasons appeal to you, are you after Class A properties for easy cash flow, or are you able to get into Class D properties for higher ROIs but with more hands on management headaches?, Im not a huge fan of wholesaling and I would bet many realitors here would agree, but I do understand it can be a good way to start out getting initial principal for ones own investments-see so many questions, yes. Decide as much as you can, carefully in time, to minimize mistakes that will happen the first couple years. And join an investment club in your area. Search "meetup real estate investment groups" for one if not already. You'll listen to 20 conflicting viewpoints here and there of each investors describing what works best for them. Then find your niche and couple mentors and make your own path suited best for you. You'll make all the connections you need in person there. 2) Most realtors who are also investors that I know will speak of just as many cons to having a licence as pros of having such. Namely for starters, they have professional codes and requirements that force them to pass on investments they would like to buy themselves. 3) I would draw a clearer distinction of sort between "working" and "investing". ;)  Some people just don't have the entrepreneurial spirit or tolerance for risk or etc and thats okay. Investing may not be for everyone. ; While others, myself included when I was age 18, were looking to invest enough to leave their current job within 5 years later. 

[Sam McCormack]

@Braden Hunt

Hey Braden, we are in the same boat. I started getting into real estate at 17 and now I am 19 with a license in Ohio. I wouldn't recommend doing that unless you want to actually be an agent like I do. I will recommend what you do is put yourself around people who do real estate. If you are good with your hands, or want to learn a trade, start making calls to people asking if they are looking for an apprentice or if you can shadow them. You could probably ask one of your parents if they know someone who does that really. Or if you want to be an agent, reach out to an agent here on BP in your area and ask if you can be there assistant. The biggest piece of advice I could give you, is to put yourself around people in real estate. And STAY THERE! You got a good head on your shoulders, keep it that way!

[John Warren]

@Braden Hunt it is awesome that you are thinking all of this at your age. I would head to a lot of meetups locally to where you are here in the Chicago market. Align yourself with a company that has opportunities for you to learn. Maybe look for a job in real estate? You should connect with @Mark Ainley as GC realty is often times hiring. 

I would consider getting your license if it interests you. The classes won't teach you anything about investing, but being an active broker can be a great way to understand the business. They are fundamentally different in a lot of ways, but it is awesome having connections in the industry from having done deals. 

[Jonathan Klemm]

Hey @Braden Hunt - First off congrats for looking to get into the real estate space so early.....you will no doubt find success!

1.  I would definitely go ahead and get your license.  After getting mine, we opened a Chicago brokerage that specifically works with investors and has investors on our team.  It's a fun culture.

2.  Sounds to me like you have to study the space a little more typically....getting started you need capital the quickest way to build capital without much is to wholesale (which you need a license for here in Chicago and Illinois for that matter).  However, if you are willing to put in some sweat equity, have time, and are open to learning I'd find an experienced investor and be a sponge (come hang out with me anytime).

3.  You are doing the right things.  Keep putting yourself out there on Biggerpockets and then start attending in-person meetings.  We have our Chicago real estate Christmas party this Friday, you won't want to miss it.  https://www.biggerpockets.com/...

[Mark Ainley]

@Braden Hunt always great to hear people getting into RE at an early age.  I was fortunate enough to dive in head first at 23.  If interested we always have intern opportunities available so love to learn more about what else you are working on.  Talk soon!

[Billy Daniel]

Start with your education through the books and podcasts readily available from BP. Stay involved in the forums and ask questions. Find and attend a local REI meetup and talk with experienced investors. They are usually more than happy to provide advice!

Find a realtor and lender and begin the search for your first house hack.  Live there for two years while saving for your next property.  It's slow at first, but consistent action will breed success!   Good luck!

[Eudith Vacio]

hey @Branden Edenfield - so much useful information here even for someone like me being 5 years in investing in real estate ;)

read, experience, learn, and GROW!