21 Year Old College Student Seeking Advice

[Ethan Bolger]

Hi everyone,

My name is Ethan Bolger. I’m a 21-year-old student at Cal Poly San Luis Obispo studying Construction Management. Over the past six months I’ve become very interested in real estate investing and have been spending a lot of time learning through books, podcasts, and forums like this one.

My long-term goal is to build enough real estate investments to become financially independent by around age 27. I know that’s ambitious, but I’m committed to learning as much as possible and taking smart steps early.

I would really appreciate any advice from investors who have already been through the early stages. A few questions I’ve been thinking about:

1. What are the best ways to build capital while still in college so I can eventually purchase my first property?

2. Would it be smart to pursue a construction or development-related job after graduation to help qualify for loans and gain industry experience, or are there better paths if the goal is to invest in real estate?

3. I am from Ventura County, where prices are very high and tenant laws in California can be challenging for landlords. Would you recommend investing locally anyway (perhaps through house hacking), or focusing on out-of-state markets? If out of state, what types of markets should someone in my position look into?

4. Any additional advice you wish you had received when you were starting out in your early 20s?

Thank you all for taking the time to read this. I really appreciate any insight or experiences you’re willing to share.

Best,
Ethan

[Antonio Velez]

You’re going to see others doing really well “seemingly.” Don’t let that derail you from your goals. It’s okay to venture out and explore because there’s so much time, but leaving unfinished projects everywhere is no good as opposed to finishing one. Fail fast and cut losses quickly, like rolling when jumping off a high spot, don’t fall flat on your face.

When you’re young, house hacking is a no brainer, especially when you’re in college. I never went the traditional college route; I joined the Army at 19 and was in a Special Forces Group for 5 years, but I had friends in college who house hacked, and they were able to save a ton of money and build equity.

I’m sure you’ve heard, “Don’t keep all of your eggs in one basket.” Diversify your portfolio, which might seem hard at first. Your initial purchases are going to be those baskets you’re putting your eggs into. Once you start making capital, then it becomes easier diversify. Some say diversification is bad because you need to go "all in", but I say shooters preference there. Just depends on your timeline and your end goals. Diversification is typically safer and longer term. With that being said deferring investing for the long term becasue you "have time" is not smart. The sooner you start the sooner you'll see those benefits. 

I don’t have any knowledge of construction, so I can’t add there.

Once you’re able to save money from, hopefully, your roommates paying your mortgage payment every month, you’ll have a little nest egg of equity where you can cash-out refinance if you’d like to keep the property and pull your cash out, 1031 exchange into something else to defer the taxes, or just hold for other opportunities and eventually rent, since college towns are always in high demand. You’re in a good position and already thinking about the right way to maneuver.
Great job and good luck!