Young Kid Looking To Start Out Investing

Young Kid Looking To Start Out Investing

Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes

How's it going everyone,

So my names Mike and I'm 20 years old. I want to start investing in real estate and am new to the site as you guys can tell. I have already chosen a career and am employed at an oil refinery in Philadelphia. My job has allowed me to save up a good bit of money to start out investing. It also allows me the time to put in the foot work due to working rotating 12 hours shifts.

My main goal is to own 7-10 rental properties by age 30. The only issue is I don't know where to start, what to look for, red flags in a deal etc. I have done a lot of research on my own and haven't found anything in great detail. So would really appreciate any suggestions or guidance from the professionals. Any good threads, blogs or websites I could read to learn more would be appreciated too.

Thank you in advance,

Mike Layden

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Investor · Philadelphia, PA · Member since 2013 · 348 posts · 111 votes
12y

Having a job and some savings is a great start! I just started not too long ago and I struggled with many of these questions you are having.

Have you read the Ultimate Beginners guide?

Also, you should listen to the podcasts, they cover a lot of things and will for sure overwhelm you with options on what to do.

Once you find yourself suffering from Analysis Paralysis, you should start to make things happen. But don't try to just jump in before having a good grasp of what it entails.

The Philly area has great meetups. There is a great one happening this Wednesday. You should come check it out and network.

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  • Investor · Philadelphia, PA · Member since 2013 · 348 posts · 111 votes
    12y

    Having a job and some savings is a great start! I just started not too long ago and I struggled with many of these questions you are having.

    Have you read the Ultimate Beginners guide?

    Also, you should listen to the podcasts, they cover a lot of things and will for sure overwhelm you with options on what to do.

    Once you find yourself suffering from Analysis Paralysis, you should start to make things happen. But don't try to just jump in before having a good grasp of what it entails.

    The Philly area has great meetups. There is a great one happening this Wednesday. You should come check it out and network.

  • Wholesaler · Arlington, TX · Member since 2013 · 59 posts · 29 votes
    12y

    Welcome to Bigger pockets! Rafael has said everything I recommend. Another thing I would add are the blogs, which you can add to a RSS feed and learn lots everyday.

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    Thanks for the reply Rafael!

    I am going to start reading the Ultimate Beginner's Guide.

    Would I be able to go to the meetup? Even though I don't have experience? It would be a great opportunity for me to talk in person with experienced professionals!

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    Thanks Henry!

    You said RSS feed ? I'm sorry I'm new.

    Any blogs you suggest?

  • Residential Real Estate Agent · Santa Barbara, CA · Member since 2012 · 233 posts · 45 votes
    12y

    @Mike L. your goal is similar to mine, I just posted my numbers for my first deal! check it out. Honestly I just jumped right in and did everything for my first time and learned as I went. It was a phenomenal process and I learned a TON. I did all this with the help of BP and the community here. Its quite amazing actually.

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    Hey Tony,

    I will!

    Thank you!

  • Residential Real Estate Agent · Santa Barbara, CA · Member since 2012 · 233 posts · 45 votes
    12y

    @Mike L. you are very welcome

  • Specialist · Portland, OR · Member since 2013 · 96 posts · 19 votes
    12y

    @Mike L. Welcome! Lots of good advice here, one thing I found from my short experience is that an experienced mentor is invaluable. I found one here on BP (a local realtor who also actively flips), but meetup groups, re clubs, etc. are also good places. & be sure they know you already have put some cash aside, that you're not just another broke noob. (Before anyone gets offended, I'm barely out of that stage myself).

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    Yeah I'm not the average 20 year old kid. I've been saving and working every OT shift for the last year to get into real estate.

    Thank you for the tip, Eric!

  • Real Estate Investor · Cypress, CA · Member since 2013 · 877 posts · 94 votes
    12y

    @Mike L. Hey Mike welcome to BP. Sounds like you are truly motivated. You also need to uncover your "WHY" when times get hard.

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    Hey Chris,

    What do you mean uncover your "why" when times get hard?

    I know why I want to make the jump into real estate. I want to be financially stable to have a great retirement, I want to make money to do all the things I wasn't able to have or do growing up and to prove to myself I can do it.

  • Real Estate Investor · Brooklyn, NY · Member since 2014 · 53 posts · 41 votes
    12y

    Welcome @Mike L. !

  • Investor · Pawtucket, RI · Member since 2014 · 45 posts · 15 votes
    12y

    @Mike L. Hi Mike,

    Great choice and great ambition!

    What I would suggest to you is to do some sort of "hands on" experience in real estate. This could be with a Real Estate Agency, Property Management Company, Rental Agency, etc. This way you can get some real life experience. In a sense I am suggesting you do an internship so you can see what the business is really like. For example, if I told you I wanted to get involved in the oil refinery business, would you tell me to research it online to learn or come in and work there for a couple months? Real estate is the same way. Since you are new, unfortunately, there will be a great deal of people out there that recognize it and may try to exploit that. If you try to get into the business without having any footing you may be in for a rude awakening. Not trying to be harsh, but rather practical so I can save you some headaches down the line. Feel free to reach out to me if you would like further advice. Good Luck, Mike.

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    @Gregory Rice thanks for the advice I appreciate it. I have been looking into and trying to find a real estate agent to shadow and see the ins and outs of the business.

    I have some experience in property management from my previous job as a contractor. I know of the headaches of that. Getting phone calls in the middle of the night to fix heaters or calls about basements full of water because the house was vacant and the copper piping was stolen. But I still do have a lot more to learn.

  • Clearwater, FL · Member since 2014 · 42 posts · 4 votes
    12y

    Welcome to BP @Mike L. I'm just as much of a beginner as you if not more. I also sometimes feel that I cant get all the info and knowledge from blogs or the net (But I do get the bulk of my education from BP) but I feel a lot has to be learned in field. Just jump in. That's what I'm about to initiate in the next week, my first step. Anyway I'm located in center city Philly, moved here from Florida 8 months ago, so if you're ever looking for a partner or someone to study with instead of online users feel free to message me. Good luck!

  • Real Estate Agent · Philadelphia, PA · Member since 2010 · 166 posts · 23 votes
    12y

    @Mike L.

    Good idea to get started in early 20's. If you don't already realize it now, you'll be thanking yourself later. Best to put a plan in place now and then you're on your way!

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    @Account Closed thanks for the offer man! Will definitely take you up on offer sometime! What part of Florida did you live in? I lived in Jensen beach for sometime.

    @Brandon Eleazer I do realize what could come of me starting in my early 20s. I want to retire early and enjoy it!

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Mike L.

    Welcome. Time to build the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

    Consider checking out HUD homes for small multi's owner occupied gets first crack.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

  • Clearwater, FL · Member since 2014 · 42 posts · 4 votes
    12y

    @Mike L. Tampa Bay area and Clearwater Beach area

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    @Paul Timmins going to start look over links now! Thank you!

  • Real Estate Agent/ Investor · San Diego, CA · Member since 2014 · 169 posts · 34 votes
    12y

    @Mike L. Hey Mike, I have very similar goals to you and am just getting my feet wet at 25 so your wayyy ahead of the game.

    One thing you might want to check out is a company like Memphis Invest. They do light rehabs of properties, basically just getting them rent ready, then they sell the homes to investors. They also work with a property management company to get it rented. It is by no means the best option (I'm sure you can find better deals if you put in the time/ effort) but it is a relatively easy way to start getting into it.

    I bought my first property with them back in November. They had the property rented with a 2 year lease before we even closed and have been collecting rent checks every month since, which I funnel towards the principal on the mortgage.

    Good Luck!

    -John

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    @John Steele thanks for the tip john! I will check their company out but I definitely want to do it on my own. The challenge of finding the deals and making them happen is one of the things that I am excited to do.

  • Real Estate Agent/ Investor · San Diego, CA · Member since 2014 · 169 posts · 34 votes
    12y

    @Mike L. Go for it! If anything just look into what they do and try to copy/ take some of their strategies

  • Real Estate Investor · Bensalem, PA · Member since 2014 · 23 posts · 3 votes
    12y

    @John Steele That's what I plan on doing. I like the whole idea of having instance cash flow tho!

  • Lender · Tampa, FL · Member since 2014 · 97 posts · 56 votes
    12y

    Memphis Invest is a great model. Good advice, @John Steele .

    All the very best to you, @Mike L.

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