Advice for high school student.

[Micah Cook]

I am a high school senior looking to start investing in real estate. My mom is a real estate appraiser in northern Indiana and southern Michigan. I've always been interested in real estate and this seems like a great thing for me. I currently have an eBay store where I buy and sell apple products and turn a profit so I already have the "buy low, sell high" mentality. I know there is a lot to learn, but I was wanting to know how to start and what I need to know. Thanks!

[Hattie Dizmond]

I'll disagree with @Mark Gallagher 

While I don't like debt in general, real estate debt is different in that it's secured by a real tangible asset.  Leverage in real estate investing is a very valuable tool, when used properly.  The key is to not over leverage yourself, so that any blip in your plan - such as an unexpected, prolonged vacancy of multiple units, etc. - doesn't wreck you.

Learn about the time value of money, net present value and internal rate of return.  You'll find that there are many times when, particularly on longer-term investments, using your own liquid capital simply doesn't make good financial sense. 

You're starting off very young...good for you. Figure out what your end game is...do you want to cash flow $20k per month? Do you want to have a $10 million portfolio? Is it about the size of the portfolio or financial freedom? The answers to these questions determine how you approach your REI career, including how leverage will play into that career.