I am 22 years old and looking to get into real estate.

Member since 2023 · 1 post · 2 votes

What would yall recommend to be the best strategy to entering real estate at my age. The FHA loan house hacking wouldn't work for me for at least a year due to me having a year left in college. I have a credit score of 765, with a good amount of savings.

I have done a good amount of research on section 8, and was wondering if people would recommend that. Thanks

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

Be patient. You have the right idea to house hack when the time comes, but it doesn't have to be now if you don't also have a job while finishing college. If you have savings, keep saving. Most college kids don't have anything saved so you are building the right away. Don't ruin it by jumping into something too early like the thought of landlording section 8. This is a horrendous idea for a young person who knows nothing about landlording and pre-supposes you can get a property first.

Spend the last time in college learning and going to local meetups. You will find mentors and friends at meetups who will help you get ready when you are really ready.

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Randall AlanPro Member
Investor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
2y
Quote from @Johnny Martin:

What would yall recommend to be the best strategy to entering real estate at my age. The FHA loan house hacking wouldn't work for me for at least a year due to me having a year left in college. I have a credit score of 765, with a good amount of savings.
I have done a good amount of research on section 8, and was wondering if people would recommend that. Thanks

@Johnny Martin
My suggestion is to partner with a like minded person... and preferably someone like a family member who really knows you... a dad... an uncle, etc that understands the value of passive investing. You have certain resources, but lack others. Find someone that complements what you lack.
I would be hesitant to suggest partnering with someone you've just met. Family is better because it's harder to get away with 'screwing family over'. Other family will typically step in and help you out.
If you've got the money to buy, just find an older adult in your family, and make the pitch, "Hey, I'm looking to invest in real estate... I've got the money but need someone older to partner with to pull this off right now." Something like that. Work out some sort of split that is fair for what each will contribute and jump in! I don't see your age as being a restriction if you have the other resources.
All the best!
Randy
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David Ramirez
Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
2y
What is it that makes Section 8 attractive to you? Is it the price of properties in low-income areas?

It really depends on your investment goals. Section 8 neighborhoods can be rough, and tenants are often not easy to manage. Tenants frequently do not take good care of the properties, and the government requires certain standards for the condition of the units. Therefore, you would have to comply with their rules to maintain Section 8 tenants in your properties.

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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y
Be patient. You have the right idea to house hack when the time comes, but it doesn't have to be now if you don't also have a job while finishing college. If you have savings, keep saving. Most college kids don't have anything saved so you are building the right away. Don't ruin it by jumping into something too early like the thought of landlording section 8. This is a horrendous idea for a young person who knows nothing about landlording and pre-supposes you can get a property first.
Spend the last time in college learning and going to local meetups. You will find mentors and friends at meetups who will help you get ready when you are really ready.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
2y
@Johnny Martin
Congratulations on your savings and solid start in real estate!

To get into real estate investing at a young age with strong credit, think about plans like living in one part while renting the rest, making friends in the field, beginning with bite-sized properties, using savings and credit well, and eyeing areas that might grow. Loans from FHA, the usual bank loans, building connections, and finding a guide can aid. Begin with small rent places, invest in REITs, and team up with folks who know the ropes. Look into areas on the up and check out loan choices.

Good luck!
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Preston DeanBusiness Member
Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
2y
@Johnny Martin
Section 8 no. At least not for your first deal. There's a lot to it.
Maybe you can be the "deal finder" in someone's core 4
One thing to remember when you are getting into RE investing is to have your team of people or as Brandon Turner from the Bigger Pockets Podcast calls it your CORE 4

1. Your contractor

2. Your deal finder (agent/wholesaler)

3. Your property manager

4. Your Lender
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Pedro CamposBusiness Member
Lender · Member since 2021 · 12 posts · 3 votes
2y
Kuddos to you for getting in early. My daughter is 24 and has been learning for a year and a half about this business. House hacking is an ideal 1st investment strategy, but because of your situation..I'd keep saving, living below your means, and keep educating yourself. Build your team (agents, lenders, contractors) and network with other investors in the field.

You have time, it all starts with your mindset. Seems like you have a good head on your shoulder thinking about this now.
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Travis Main
Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes
2y
Hey Johnny,
At your age and with only one year left of college, it's important to focus on completing your studies while saving as much as possible. During this time, consider joining a local real estate investors association. These groups typically hold monthly meetups with speakers who discuss various industry topics. Attending these events will help you network with experienced investors and build a solid educational foundation in real estate before you take the plunge. The better prepared you are, the greater your chances of success.

One crucial but often overlooked recommendation for someone your age is to work on becoming bankable before your first deal. Ensuring you are financially stable and creditworthy will make your future transactions smoother. If you’d like to discuss this further, I’m happy to explain the specifics of becoming bankable.
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