This is hypothetically speaking (I'm still in high school I'm just weird enough to plan that far into the future) I would like to know if someone could help me build a plan to eventually be making a million dollars annually in real estate (I know, huge goal). So this is what I plan on doing. I would have around $160,000 saved up and I'm looking to purchase multi family properties. I also plan on living in Florida (specifically the Tampa bay area but I'm not completely sure yet). I also plan on having a full time job that initially pays somewhere around $80,000 annually. So what I'm asking for is help building a plan and knowledge on how to trade up to huge properties with several hundred units. All answers are greatly appreciated.
@Ed Schell it is great that you are planning your future so early in life. I wish I had that kind of focus back when I was in HS. Your first step is obviously building up as much cash as you can for your investment war chest. Hustle as many jobs as you can, especially if they relate to your long term goals of REI. You can work job sites, or intern for RE agents or PM's. If you can handle it, get a paying gig driving: pizza delivery, Uber etc. You will be exposed to the streets of your town and you will start to learn trends and signs of change. Be prepared to do the grunt work, but find something that will add to your knowledge base!
Getting a loan to purchase your first property is going to be tough. You need to build up credit and also a W2 history. It is not clear if you plan to jump into REI right out of HS or if you plan to go to college. Either way, if you don't start building some type of credit history the financing of your plan will be very difficult.
Once you get your finances in place, go and buy something as a primary residence. This could be a single family or a small multi-family. Continue to hustle and build more cash as you do this. Once you have your first place under your belt the doors will slowly start to open up for you. Hopefully during the years you intern in HS, you will get a taste for different niches in REI and you will know the direction you will want to take your REI adventure!
Good luck and post up when you start your progress!
@Ed Schell - It's a great thing to be "weird"- you are going to go extremely far in life if you are asking these questions already. If I were you, I would read as many books as you can right now(ones recommended here on BP) and find a mentor in your area that is successful in multi-families. Better yet, offer your services as an intern right now while you are still a student.
There are plenty of Real Estate meetups in NJ. I would suggest attending them (assuming there's no age restriction which I don't think there is) and soaking up all the knowledge you can. Its great that are getting started so early. I'd be more than happy to hear you out and help you in any way. Shoot me a message and I'll give you some good REAs to go to..
And pick up the book Millionaire Real Estate Investor: It'll organize your current thoughts a bit..
It is great reading this. Having a plan is a huge step for success. Action is the next step. Some really good suggestions have been made here by everyone so far, I am sure more will follow. $80k right out of high school is VERY difficult, but not impossible, one path could be becoming a buyer's agent for a real estate team you are given leads but have to give up a lot of commission. Until that time it would be a very good idea for you to get involved with a real estate office or property management firm, offer what skills you have and start saving every penny.
I look forward to meeting you down here. I happen to think Clearwater is the best city in the Tampa Bay area.
Great Stuff Ed!
Wish I would have started back in high school. Start wholesaling while you are in high School to build capital. Align yourself with an investor at one of the meetups in NJ. Be their apprentice. Try and not do the typical high school job if you can. Use all your time you have to learn and grow real estate. Breathe it. Be a bird-dog. It will be a start into wholesaling and learn from the investors that you get in contact with.
Listen to podcasts: Bigger Pockets, Joe McCall, Matt Theriault
Read Rich Dad Poor Dad to start.
Way to go! Live now like no one will, to live later like most can't! And at your age, you can live an incredible life.
Thanks for all the positive feedback guys just to answer some questions...I do plan on going to college (80k out of high school is impossible) I'm 5 chapters into rich dads real estate book and what I plan on doing is holding the job until my investing becomes real big then I will retire. I currently work at a restaurant and I would be really interested in attending an investors meeting and some sort of real estate internship. What I plan on doing is working from my parents house for 3-4 years so I can save up for my first investment this way I don't have to start from the bottom.
I wish my 18 yr old had this much drive.
Anything is possible if you put your mind to it.
It's great to see you interested in REI at such a young age. I'm also starting out. What I can tell you is that many people will tell you many different things and it can get a little overwhelming. Find a few mentors that are successful in the area of real estate investing that you want to be in (it's a very broad field) and listen to them. Learn from the best. Focus on what you learn from them. Sometimes the best mentors aren't available in person but they may have books that you can read. I agree with @Rafael Norat Gary Keller's Millionaire Real Estate Investor is a good start.
You'll do great man!
Thanks Alexis and I'll make sure to add that book to my list
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