20 Year Old Starting Out With Real Estate Investing
Member since 2022 · 7 posts · 1 vote
20 Year Old Starting Out With Real Estate Investing
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3yQuote from @Vito Cicinelli:
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.
The DIY Landlord Book4.7243 Reviews
14 Replies
- Real Estate Agent · Kansas City, MO · Member since 2020 · 95 posts · 119 votes3y
Set for Life by Scott Trench is great, I really enjoyed the audiobook. BiggerPockets has a ton of great books on just about every topic you can think of thats real estate related.
Rich Dad Poor Dad is the most popular of them all, it seems to be the book that gets most people interested in Real Estate, but I’m biased as that is the book that kicked things off for me.
BP podcasts are also great. I also like “Sunday Service” which specializes in creative finance with Pace Morby. - Member since 2022 · 7 posts · 1 vote3y
Quote from @Alex Gunnerson:
Set for Life by Scott Trench is great, I really enjoyed the audiobook. BiggerPockets has a ton of great books on just about every topic you can think of thats real estate related.
Rich Dad Poor Dad is the most popular of them all, it seems to be the book that gets most people interested in Real Estate, but I’m biased as that is the book that kicked things off for me.
BP podcasts are also great. I also like “Sunday Service” which specializes in creative finance with Pace Morby.Awesome, Thank You! I already read rich dad poor dad but I will definitely check out the others.
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
Daily non negotiables
- Watch one biggerpockets podcast
- Reply to 5 forum posts
- Call 10 realtors
- Call 10 investors
- Rental Property Investor · San Antonio, TX (Lender in TX and SC) · Member since 2020 · 196 posts · 253 votes3y
Welcome to BP! It's a great place to learn, share ideas, and network. There’s a solid community here on BP of active duty and veterans as well.
In addition to listening to the BP podcasts, there are also some really good podcasts that focus on real estate investing by military members. All are hosted either by military members or recently separated/retired military:
- Military Cashflow podcast with @Dan Wynn and Mike Glaspie (Mike is a real estate agent)
- The Military Millionaire podcast with David Pere and Alex Felice
- Active Duty Passive Income podcast with Kevin Brenner
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Vito Cicinelli:
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.
The DIY Landlord Book4.7243 Reviews - 3yJared HottleBusiness MemberReal Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
I think some very good advice on here. Set for life and Bigger Pockets podcast are key. I think do daily actionable steps. Drive for dollars and find a house hack. Use your VA loan and rent out rooms everytime you get transferred do it again. Once you find an area you really like double down on it.
Jared Hottle Real Estate59 Reviews - 3yTy AshBusiness MemberReal Estate Agent · Milwaukee, WI · Member since 2018 · 201 posts · 132 votes
Hi @Vito Cicinelli!
I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.
As already mentioned above, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.
Here's a great resource right here on BP:
https://www.biggerpockets.com/real-estate-investing/house-hacking-strategy
Best of luck getting started! Here for you with any questions you have along the way!
- Member since 2022 · 7 posts · 1 vote3y
Quote from @Joel Allen:
Welcome to BP! It's a great place to learn, share ideas, and network. There’s a solid community here on BP of active duty and veterans as well.
In addition to listening to the BP podcasts, there are also some really good podcasts that focus on real estate investing by military members. All are hosted either by military members or recently separated/retired military:
- Military Cashflow podcast with @Dan Wynn and Mike Glaspie (Mike is a real estate agent)
- The Military Millionaire podcast with David Pere and Alex Felice
- Active Duty Passive Income podcast with Kevin Brenner
Awesome, Thank You! I appreciate the advice.
- Member since 2022 · 7 posts · 1 vote3yAwesome, Thank You! I appreciate the advice.
Quote from @Joel Allen:
Welcome to BP! It's a great place to learn, share ideas, and network. There’s a solid community here on BP of active duty and veterans as well.
In addition to listening to the BP podcasts, there are also some really good podcasts that focus on real estate investing by military members. All are hosted either by military members or recently separated/retired military:
- Military Cashflow podcast with @Dan Wynn and Mike Glaspie (Mike is a real estate agent)
- The Military Millionaire podcast with David Pere and Alex Felice
- Active Duty Passive Income podcast with Kevin Brenner
- Member since 2022 · 7 posts · 1 vote3yAwesome, Thank You! I appreciate the advice.
Quote from @Ty Ash:
Hi @Vito Cicinelli!
I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.
As already mentioned above, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.
Here's a great resource right here on BP:
https://www.biggerpockets.com/real-estate-investing/house-hacking-strategy
Best of luck getting started! Here for you with any questions you have along the way!
- Member since 2022 · 7 posts · 1 vote3y
Quote from @Jared Hottle:
I think some very good advice on here. Set for life and Bigger Pockets podcast are key. I think do daily actionable steps. Drive for dollars and find a house hack. Use your VA loan and rent out rooms everytime you get transferred do it again. Once you find an area you really like double down on it.
Awesome, Thank You! I appreciate the advice.
- Member since 2022 · 7 posts · 1 vote3yAwesome, Thank You! I appreciate the advice.
Quote from @Nathan Gesner:
Quote from @Vito Cicinelli:
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.
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
Welcome to BP, I truly believe that with hard work, dedication and a positive attitude, success is within reach. Don't ever give up on yourself or your goals — you have the potential to achieve great things! Wishing you all the best in your endeavours! 🤩👍🏼✨
- 3yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
Join a local RE investing group or Meetup. You'll learn more in person than online.
Logical Property Management4.9469 Reviews
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