19 y/o Aspiring Real Estate Investor
Member since 2023 · 3 posts · 3 votes
19 y/o Aspiring Real Estate Investor
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CO · Member since 2022 · 588 posts · 426 votes
3yHey Brody, I was in your spot not too long ago so hopefully I can help.
The way I found my entrance into the game was through being an agent. I always knew I wanted to invest but I lacked the knowledge of how. But once I became an agent I got more confident in my skills dealing wit the property because that was what I did all day every day. From there I was able to build up enough capital to get my first property and haven't looked back since.
For your situation I would suggest saving up as much money as you can, and also building as many connections as you can. People are your best resource no matter what. Mentors will teach you more than any book or class ever will, that is why it is important to build those connections now so that help you later in life.
12 Replies
- CO · Member since 2022 · 588 posts · 426 votes3y
Hey Brody, I was in your spot not too long ago so hopefully I can help.
The way I found my entrance into the game was through being an agent. I always knew I wanted to invest but I lacked the knowledge of how. But once I became an agent I got more confident in my skills dealing wit the property because that was what I did all day every day. From there I was able to build up enough capital to get my first property and haven't looked back since.
For your situation I would suggest saving up as much money as you can, and also building as many connections as you can. People are your best resource no matter what. Mentors will teach you more than any book or class ever will, that is why it is important to build those connections now so that help you later in life.
- Member since 2023 · 3 posts · 3 votes3y
Thank you so much for the insight! Do you have any advice on how to find a mentor or where to go to make connections?
What about househacking? Analyze as many deals as possible and when you have a deal that makes sense, financing it against 3,5% DP. Buy a multifamily, live in one and rent out the rest. Let the tenants pay for your rent and mortgage and get first hand experience as a landlord.
PS: Also keep learning from books and podcasts!
- Realtor · San Jose, CA · Member since 2018 · 184 posts · 71 votes3y
First I have to say props to you because at 19, I was not thinking about Real Estate at all. So you are already well ahead of a lot of people.
I understand you are in college and pay for your expenses. Don't worry, a lot of us have been there, enjoy these times. For now, you should continue to soak up all the knowledge you can, which sounds like you have begun doing so. Find a mentor. Someone who has success in RE within your area and see if you can spend some time on the weekends or in between classes for a few hours at a time. Work for free, don't ask for money until you can bring in some money. The experience you get will be worth much more than any dollar amount you receive early on. It is also very considerate for the opposing individual to take the time to mentor a 19 year old, so add value to his/her business and I am sure they will be happy to help you learn.
Develop some skills as far as conversational pieces when talking to investors and sellers. Go around in your area and pick out ugly homes. Look for unmaintained landscaping. Bad roofs, paint, cracked driveways, old fencing, debris around the house, old windows, etc. Knock of those doors when you feel confident with a pitch and strike up a conversation. Don't be a pushy salesman. Just act like they are your friend as if you are checking in on them, while throwing in some questions about them and the house. You have to be able to read the person, don't use scripts, you'll sounds like a robot. Know how to pivot in a convo quick depending on the person in front of you. Let them grow some comfort, so they can open up and if they are thinking about selling, they will tell you.
Now that you have a lead, find local investors and let them know you have an exclusive off market deal. I would get a NDA prepared and have them sign it to establish the working relationship. You want to make sure you can trust the investor so they won't go behind your back to the seller. Once you have the investor side going and they like the property, you can head back to the owner and let them know your update. Find out what price would make them happy and also find out other motivation factors. Such as, do they need the money fast? Do they need cash upfront to move? Do they have a lot of trash? If so, offer to leave their unwanted items behind, usually investors will take care of it. Makes the move easier for the buyer when they can leave all of that.
From there facilitate with the investor and try to put the deal together. At the end of the day, you just have to make both sides feel like they are getting what they want.
Make sure your investors are buying at prices which are 30%+ below ARV.
This is just a little something to plant in your mind and I hope it sparks some ideas.
Goodluck. - 3yNathan HoltPro MemberNewark Ohio · Member since 2022 · 63 posts · 51 votes
Dude you're doing awesome! I also am in college and working full time and I just bought my first property back in September.
Have you decided what kind of investing you want to target (flipping, wholesale, notes, multi family etc?)
I would highly recommend looking at house hacking. That is what allowed me to get into real estate so early because I would not be able to afford any other type of investing right now. My job does not pay me good at all (my tenant makes more money than I do) but because of the rent that comes with the house hack it allows me to use the rent to pay the mortgage and I just have to cover an extra 159 a month on top and pay the utilities which in the long run makes it cheaper than what I was paying to live in an apartment.
I would also definitely recommend looking into your local real estate investor groups. If you cant find any try asking people on here if they know any or find a local real estate agent who works with investors, they will probably know where to direct you.
If you want more book podcast or video recommendations feel free to message me I have been collecting and organizing content from all over the internet for the last 3 years and I have a lot on just about any subject you could ask for so you wont have to go sift through it yourself.
I would definitely recommend prioritizing the new bigger pockets book "Real Estate by the Numbers" by J Scott and Dave Meyer if you are seriously looking at getting started within the next year or so.
Making this jump is super scary and can be stressful but it will be worth it if you put the work in!
Good luck!
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Welcome to the BiggerPockets forums!
Generic beginner advice. I hope you find something useful. If you are hung up on a particular step, ask away!
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 Book4.7247 Reviews - Real Estate Agent · Houma, LA · Member since 2016 · 240 posts · 115 votes3y
@Brody Pitre Try attending the local REIA. @Robert Leonard can give you more information on that.
Keep on reading books. Check them out from the library if you have to.
Listen to the podcasts and dig through the forums for discussions on the investing options you are interested in.
Good Luck and #EverForward!
Clint
- Member since 2023 · 3 posts · 3 votes3y
Thanks again for all of the comments I was not expecting that much activity. I requested to attend a local REIA meeting later in the month and I plan to keep moving forward from there and I will be active on this website very frequently.
I also just wanted to say how grateful I really am for everyone's involvement in my forum. It is great to see that successful investors are willing to be active on here and give their advice and wisdom to a complete newbie like myself. Good luck to all!
- Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes3y
@Brody Pitre Go to local meetups and find a way to provide value to the experienced investors there! You'll be able to soak up lots of knowledge from them while you help them out. Do things for them for free in your spare time and prove to them you're serious and dedicated and before you know it you'll have a mentor showing you the ropes and teaching you how to build your own portfolio.
You'll be a millionaire before you turn 25.
Good luck!
- Member since 2023 · 4 posts · 7 votes3y
Hey Brody! I'm a newbie as well. I am 23 and yet to have a property, I continue to study every day to get enough knowledge to jump in. If you ever have questions or just need a fellow newbie to talk to reach out! It is scary but the overall benefits in the future outweigh the potential stress.
- 3yAmy VergesBusiness MemberInvestor · Baton Rouge, LA · Member since 2014 · 128 posts · 138 votes
Lots of great advice already posted, but I'll reiterate the two I would recommend for your stage:
1) Read Set for Life by Scott Trench
2) House hack!Best of luck--Geaux Cajuns!
- Investor · Raleigh, NC · Member since 2022 · 113 posts · 71 votes3y
Quote from @Brody Pitre:
I am 19 years old and currently attend college at the University of Louisiana at Lafayette. I have been very interested in starting my journey as a real estate investor and have recently read the BiggerPockets book, "How to Invest in Real Estate - The Ultimate Beginner's Guide to Getting Started," and I found very useful knowledge in that book. However, I am still unclear on where to start. Being that I am a college student who pays my own rent and tuition, I usually do not have much money left over each month from work. I would really appreciate any advice or helpful suggestions!
Hi Brody,
I would recommend listening to podcast about this topic, reading books that are more concentrated then broad.
Going to meet ups, interacting here, and generally be proactive in learning is going to be imperative.
If you have a place currently and are renting it solo but have an extra room then you could always rent out your other room to lower the amount you have to pay monthly.
If you need any tips, help or want to run through things just DM me.
Hope that helps!
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