Young, naive and clueless! Starting out investor!

Starting Out
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Young, naive and clueless! Starting out investor!

Jason Chung
burnaby, British Columbia · Member since 2014 · 6 posts · 2 votes

A little about myself: I am 18, broke, but ambitious! (that pretty much sums it up!).

I have been reading a lot of books, and currently own the following books:

- Real Estate in Canada by Don.R. Campbell (I'm Canadian, Vancouver)

- Millionaire Real Estate Investor by Gary Keller

- Land Lording on Autopilot by Mike Butler

Those are just my Real Estate Investing books

I'm learning a lot by Don.R.Campbell, his ACRE system is really easy to follow and I can picture myself actually buying a property with his advice. I really want to get going, but I need money first (and trust me when I say I am being frugal; my girlfriend is getting a bit mad about my frugal ways).

I want to become a Financial Planner (I read a lot on the Stock Market, and business, and real estate). I like finance a lot, and seeing other people my age go out and buy expensive clothes, cars, eat out a lot makes me feel good, I know a secret that they don't! Understanding that expensive clothes, cars, and eating out are all depreciating asset and wasting their "investment money" makes me feel "wise(?)" among my peer. Not that I am better than anyone, but since I save my money, it gives me a little "leverage" that I will have more money to invest in appreciating asset (real estate) in the future, than them. A little "head start". :)

I want to invest in real estate as soon as possible. I don't think money will be a huge problem. If I have $10,000 (one year of work), then I can probably find partners, or sell things, to fund my investment (anything is possible).

After reading books for one year, I would like to start investing right away. I'm not greedy, and want to be rich fast, but I'd like to not be caught up in "reading books/no action". I also would like to use my knowledge from reading books, and put them finally into action. Buy a house!

Not a lot of people, or family support me. As they don't understand what I am trying to do, and think I can't do it. I sat my dad down one night and told him about investing in houses, and he carefully, but sincerely, try to steer me into becoming a business manager (I like reading about start-ups tho). I'm focus on my own life though, and other people opinions don't foster a new path for me. "You don't ask someone who isn't a millionaire how to be a millionaire". So, you wouldn't ask a bread maker how to craft jewellery? I think that example was a bit off from "The richest man in Babylon". Whoops.

Currently. I'm just reading till my eye BURN. I stay up all night reading real estate books, because I feel like I am not maximizing my time enough. I feel a need to become successful. It haunts me everyday that I am not being productive enough. I try to figure out the "smartest way" to do things. I am contemplating about getting a job to grow some money on the side for investment, and I think I will read books when I am not working. This plan for work is because of my thought on having a lot of knowledge on real estate, but having no money to "proceed". Blah. That would suck. Maybe I could do Mobile House, like Mr.Tuner. Hmm... Maybe. I need to read more books on that.

I'm pretty sure this whole thing is MUCH more simpler than it seems right now to me. I'm just over complicating things. So, I tend to just take a second, and clear my head, and calm myself out, and tell myself, "Everything will be Okay".

I really want to get going and become a success by 30.

That's a little bit about myself. Help me if you can. Any comment for my clueless direction will be awesome! Seriously. Anything.

Thanks for taking your time out of your busy investor life! I hope to be like you guys one day!

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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
12y

@Jason Chung

You're enthusiasm is evident and fortunately for you, you have no money at the moment, otherwise it sound like you would have forked it over for promises of simple riches. Take a deep breath, put down the Flavor Aid, and get some perspective on ACRE and it Guru. While Don Campbell may appear moderate compared to others on the Guru circuit, his business is still recruit & sell.

You can learn all you need to get started though your reading (though I could recommend a different selection of books); networking in a local real estate investment association (there are a few on the lower mainland); and participation here.

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  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    12y

    Save save save as much money as possible then invest it wisely.

    good luck.

    1Reply
  • Account Closed
    Rental Property Investor · Burnaby, British Columbia · Member since 2013 · 23 posts · 3 votes
    12y

    Jason,

    Welcome to BP! It's great to see other fellow young investors looking to start out in real estate!

    Regarding your post title of "Young, naive, and clueless," there's a few more hurdles that a young age brings, but naivety and lack of knowledge can be improved with some education. That's the big first stepping stone, along with saving and building enough funds to begin putting towards properties.

    Shoot me a message, and maybe we could meet up. I'm currently living at UBC but go back to Burnaby very often.

    0Reply
  • Zach Zepp
    Edmond, OK · Member since 2013 · 15 posts · 7 votes
    12y

    Welcome to BP Jason!

    I had the same desire to become a Financial Planner and CFP for a very long time. I even went through a few rounds of interviews to be a Financial Planner before I pulled out of the process.

    However you decide to build a career as a Financial Planner, you need to be sure you would personally make the same investments as what you are telling clients. That was my biggest hangup. I can't honestly tell someone the best thing for them to do is invest in a set of company approved mutual funds that pay over 1% in fees regardless of the return.

    On the flip side, the world needs more ethical Financial Planners that can motivate clients to take care of themselves.

    Also, don't be too hard on yourself and stress about not being as productive as possible. Enjoy yourself while you can before your body doesn't allow it.

    Good luck on both your Financial Planner goal and your Real Estate goals!

    0Reply
  • Jason Chung
    OP
    burnaby, British Columbia · Member since 2014 · 6 posts · 2 votes
    12y

    Thanks, James Wise, Steven Haung and Zach Zepp!

    From your advice, I will save more money and read more books!

    @James Wise. That's very wise. It's simple, but sweet. Save, save, and invest. Thank you!

    @ Steven Haung. It's cool to see another investor live very close to me! Steven. I heard that networking is important in this career, and it'll be cool to meet up at your convenience. Thanks!

    @ Zach Zepp. I'm sorry that you didn't like FP so much, but that kind of insight is very valuable to someone like me! Thank you for sharing that. I haven't done my due dillgience yet on researching FP, but I guess my goal is to finish a program in college in 2 years, and get pay higher than minimum wage. And, since I have an interest in Stocks, business, and real estate, I thought I could do well in this career. But, guiding clients toward mutual funds that are "good" but not "great" is fine with me. I want to help people, and start my own Financial Planning company tailor at a niche community of immigrants. I am Vietnamese, and I think I can attract this niche better through cultural understanding. I am interested more in the business start-up side of financial planning and the knowledge learnt in college, too, as you can see! Thanks!

    0Reply
  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    12y

    @Jason Chung

    You're enthusiasm is evident and fortunately for you, you have no money at the moment, otherwise it sound like you would have forked it over for promises of simple riches. Take a deep breath, put down the Flavor Aid, and get some perspective on ACRE and it Guru. While Don Campbell may appear moderate compared to others on the Guru circuit, his business is still recruit & sell.

    You can learn all you need to get started though your reading (though I could recommend a different selection of books); networking in a local real estate investment association (there are a few on the lower mainland); and participation here.

    2Reply
  • Andrew Sherwin
    Alma, MI · Member since 2014 · 18 posts · 5 votes
    12y

    Just don't do what I did and go to college by taking out 100k in student loans. It's the only thing keeping me from investing now.

    0Reply
  • Zach Zepp
    Edmond, OK · Member since 2013 · 15 posts · 7 votes
    12y
    Originally posted by @Jason Chung:
    @ Zach Zepp. But, guiding clients toward mutual funds that are "good" but not "great" is fine with me. I want to help people, and start my own Financial Planning company tailor at a niche community of immigrants. I am Vietnamese, and I think I can attract this niche better through cultural understanding. I am interested more in the business start-up side of financial planning and the knowledge learnt in college, too, as you can see! Thanks!

    I agree with the first statement to an extent. For most people, investing in mutual funds is the right way to go. 401k and IRA. Investing in RE or stocks directly requires a much greater risk tolerance. For people with little risk tolerance, the added stress on their lives doesn't outweigh the longterm financial gain/stability.

    If you plan on starting your own FP company then you have much more freedom to choose the mutual funds you truly think are great. Just know, especially in the first few years, that you will be working yourself to the bone in the FP industry. It is a 95% sales job, 5% helping people/counselling.

    Also, take the advice of @Roy N. and slow down a bit. Keep reading and networking and you will easily succeed by 30, whatever your definition of "success."

    0Reply
  • Jason Chung
    OP
    burnaby, British Columbia · Member since 2014 · 6 posts · 2 votes
    12y

    @ Roy N

    Thanks for advice to slow down. Please, recommend me some good books to read. I read a lot, so I will go buy any book you recommend to me and read them (cheaper to buy book than go to seminar or waste money in real estate without understanding first).

    @Andrew Sherwin

    That's always a good advice.

    @Zach Zepp

    I'm fine with working myself to the bone, and I like that you are constantly replying back to me. I understand it's going to be hard, and plan to read a lot more before proceeding.

    Thanks for answering the questions. You guys have been helpful in more ways than one.

    0Reply
  • Filipe Matos
    Investor · toronto, Ontario · Member since 2014 · 115 posts · 8 votes
    12y

    Hi, I also started dreaming about RE at your age, broke too, but I kept dreaming.

    I got a Job after college and got financing for a condo with 0% down, not really an investment , just for me to live in. Only when I moved to Canada I saw good oportunities and access to credit.

    Its good to have a job when starting investing in RE, you can at least get financing on your own to buy some RE. it also allows you a safety net in case something goes wrong. If you are already a business man by nature, sell you self well and know how to do business (buy low sell high), then you may not need it.

    For me the earlier you start the better. If you make mistakes, you will have much more time to learn and recuperate.

    Before starting , try to learn as much as possible. I did not have that luck, never had anyone around me that was doing what I am doing and never seen it being done in my home country.

    Keep dreaming and it will happen

    0Reply
  • Jason Chung
    OP
    burnaby, British Columbia · Member since 2014 · 6 posts · 2 votes
    12y

    @Filipe Matos

    Thank you for the encouragement!

    I like that you stated about being young and being able to make mistake and live through them, as well as the knowledge that a career can be a great back up plan (and, greatly increase your mortgage approval).

    It's good to hear and see underdog stories; guys who never had a chance and came on top in the world in the end. I love those stuff! I would be more than interested in hearing your guys stories, or how you guys came to success?

    Thanks

    Jason

    0Reply
  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    12y
    Originally posted by @Jason Chung:
    @ Roy N
    Thanks for advice to slow down. Please, recommend me some good books to read. I read a lot, so I will go buy any book you recommend to me and read them (cheaper to buy book than go to seminar or waste money in real estate without understanding first).

    Jason:

    There were a couple of threads (Thread 1; Thread 2) here on Bigger Pockets a couple of months ago which listed many of the books you see will see mentioned here. {Note: Robert Kiyosaki's Rich Dad Poor Dad seems to the the most common recommendation on BP. Personally, I don't share the enthusiasm, but it may be a useful read for you}

    One book that is on that list which would be a good tool for someone starting out is Frank Gallinelli's "What Every Real Estate Investor Needs to Know about Cash Flow".

    What you will not find on that list is a Canadian context. I would recommend finding the following books at your library and giving them a read:

    • Gray, Douglas; "Canadian Landlord's Guide"
    • Cohen, Steve & Dubé, George E.; "Legal, Tax & Accounting Strategies for the Canadian Real Estate Investor"
    • Boiron, Pierre & Boiron, Claude; "Commercial Real Estate Investing in Canada: The complete reference for real estate investors and professionals"

    The last one can be pricey to purchase - it is essentially a text book - so you may want to have a look in one of the local {university} libraries first.

    I recently read through Julie Broad's "More Than Cashflow: The Real Risks & Rewards of Profitable Real Estate Investing" and was pleasantly surprised - my expectations were of a {semi}guru book, but she kept the tone very level. My conclusion was the book would be more beneficial to someone starting out, so you might want to give it a read as well.

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y

    @Jason Chung

    Hi Jason,

    Loved your post.

    I was once told "Make a passion an obsession and you will never work a day in your life".

    You are on the right track just keep the fire burning.

    Feel free to connect as I would love to stay in touch and see your progress.

    Have a great day.

    Podcast Guest on Show #89
    Oz Realty4.5367 Reviews
    WebsiteView Page
    0Reply
  • Simon Lloyd
    Investor · King Township, Ontario · Member since 2013 · 62 posts · 11 votes
    12y

    @Roy N. Great book list, thanks for the compilation.

    0Reply
  • Amy Johnson
    Phoenix, AZ · Member since 2014 · 6 posts · 1 vote
    12y

    The Millionaire Real Estate Investor by Gary Keller is a FANTASTIC book! Great book selection so far :-)

    Money is very important to investing but knowledge is what will get you the money in the first place. While you save up money be sure to keep learning everything you can about investing. Also, meet people in real life who are as passionate about becoming successful as you are. This will help you both immensely! Save what money you can now, read books and MOST IMPORTANTLY... network with local people who are already successful doing what you want to do... meet those people and offer to work for them for free. This is the quickest way to actually start taking action and getting results.

    0Reply
  • Jason Chung
    OP
    burnaby, British Columbia · Member since 2014 · 6 posts · 2 votes
    12y

    @Roy N.

    My God, your information and the detail of books and what not read and what to read was amazing. I feel like a fat kid in a candy store with these information -- Well, I am a fat kid, in a book store. lol.

    Thank you so much, Roy.

    @Amy Johnson

    I love his story line, and the way he illustrate it in real life events. It makes everything more realistic.

    You're right. Having no money blows, but that's really not a big deal as I have advantages of living with parents and having absolute positive income without debt.

    @Engelo Rumora

    Thanks! Your future input would be MUCH appreciated!

    ------------------------------------------------------

    UPDATE

    In terms of future plan:

    Graduate school --> College (Real Estate Marketing 2years) --> Real Estate agent

    Banking-wise: Saving 90% of my income ((aiming for $10K+/year))

    Learning Real Estate Investing: Reading books, video, and meeting and networking with some real life investor.

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y
    Originally posted by @Jason Chung:
    @Roy N.

    My God, your information and the detail of books and what not read and what to read was amazing. I feel like a fat kid in a candy store with these information -- Well, I am a fat kid, in a book store. lol.

    Thank you so much, Roy.

    @Amy Johnson

    I love his story line, and the way he illustrate it in real life events. It makes everything more realistic.

    You're right. Having no money blows, but that's really not a big deal as I have advantages of living with parents and having absolute positive income without debt.

    @Engelo Rumora

    Thanks! Your future input would be MUCH appreciated!

    ------------------------------------------------------

    UPDATE

    In terms of future plan:

    Graduate school --> College (Real Estate Marketing 2years) --> Real Estate agent

    Banking-wise: Saving 90% of my income ((aiming for $10K+/year))

    Learning Real Estate Investing: Reading books, video, and meeting and networking with some real life investor.

    No problem at all.

    Thanks and have a great day

    Podcast Guest on Show #89
    Oz Realty4.5367 Reviews
    WebsiteView Page
    0Reply
  • Erich Schmitt
    Flipper/Rehabber · Tacoma, WA · Member since 2015 · 40 posts · 5 votes
    11y

    @Jason Chung

    Good luck to you buddy! I'm can relate to your fire and motivation, and also with the confusion with where to start out. There's so much information!

    I haven't invested in real estate yet, but have been slowly working towards it and I'd say this: keep in mind it's a lifestyle, not a race. I would also recommend Rich Dad, Poor Dad highly. NOT for specifics on REI, but more the mindset. It'll help you think outside of the box, but the book is not just about REI, so keep that in mind. You are on the right track. Keep reading, networking and saving.

    I will say this: having savings (capital) starts to open up doors/opportunities. And I've just recently started networking, and wish I had done it sooner. You can't start out alone, so develop relationships now. Good luck man! Keep that fire burning

    0Reply
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