What would you do if you were 18?

40 Replies

Hello everyone I'm turning 18 in July and am fortunate enough to have a family who has started a fund in my name when I was born which has grown to $80k in cash and $60k in stocks. I live in southern California in the inland empire, if you were in my position what would you do? I'm getting a job as an insurance sales agent in the meantime and I am interested in house flipping, as well as rental apartments. I appreciate your replies!

I am 18 as well, would love to stay in touch and connect.

Nice! To be 18 and have $140k...that's awesome. Here's what I'd do, if I were you...

- Become a real estate agent. That way, you can learn the basics of real estate contract law, learn sales skills, learn how to use the MLS and how to find good deals. Over time, you'll get to know neighborhoods in your particular area that are good to invest in and ones that are not.
- After your earned income is sufficient and stable (if you are personable AND driven - there is no reason you should not make six-figures a year as a real estate agent, after a year or two)...then begin buying rental properties. Get yourself a bunch of them. Also, begin doing rehabs.
- By starting early...man...you'll not only be a millionaire, you'll be a multi-millionaire by the time you are 30.

Good luck!!!

Buy a house, Buy an income property, you'll be n your way to being a real estate investor.

Date ugly women with good bookkeeping skills :)

If Im 18, im chasing skirts....and thats it.

Originally posted by @Steven G. :

Nice! To be 18 and have $140k...that's awesome. Here's what I'd do, if I were you...

- Become a real estate agent. That way, you can learn the basics of real estate contract law, learn sales skills, learn how to use the MLS and how to find good deals. Over time, you'll get to know neighborhoods in your particular area that are good to invest in and ones that are not.
- After your earned income is sufficient and stable (if you are personable AND driven - there is no reason you should not make six-figures a year as a real estate agent, after a year or two)...then begin buying rental properties. Get yourself a bunch of them. Also, begin doing rehabs.
- By starting early...man...you'll not only be a millionaire, you'll be a multi-millionaire by the time you are 30.

Good luck!!!

 Thank you for the advice! My father and stepmother and both real estate investors who do mostly house flipping, what they reccomend me doing is the insurance sales job while teaming up with other trained investors. Once I start getting a more stable income they want me to get my real estate license and do brokering with them would you recommend this route? Is teaming up with other investors a smart way to start?

@David Krulac undefined When purchasing would you advise to use the money for a large down payment or stick to the 20% and have liquid capital available?

@Adam Ng what area of California are you located in I would love to get in touch!

Its a great way to go. Many real estate agents/brokers, are also investors too. I bet 1/3 of the people I wholesale properties to (note I am an investor too, I do not just wholesale, like some folks) are actually real estate agents & brokers...they make the best customers for me as they know exactly what they're buying. Anyway...yes, go for it. 

Southern California is a difficult place to get rich in real estate.  I would move to Houston Texas and buy an apartment complex.  I say that because you can buy yourself a mansion for $300,000 with a 3 car garage, a movie theater and a pool.  That could all be paid for by the proceeds from your apartment.  Seriously why are you trying to be a real estate agent or any other job.  You are retired already if you were in Houston Texas.

@Cliff Odom I agree southern California is a tough place to start my father just finished a flip on a 1100sqf home with 2 beds and 2 baths that cost him $180k to buy in rough shape, he did end up selling it in 2 months for $245k but still even very small bad quality homes are ridiculous. I'll have to look into other states my only worry is a day job and having to pay for my own place to live at first because all of my family lives in southern California.

@Steven G. I really appreciate your replies, what is the best way in your opinion to get in touch with these other investors? Also should I look at moving out of California as Cliff suggested?

I say this all the time. I would join the military. Specifically The Coast Guard or Marines. What a great way to build discipline, job experience, have fun, travel, learn to lead others, learn sacrifice and selflessness, build comraderie, gain LIFE perspective, establish your credibility and character as a young man, and build your credit. You also get to have tons of fun blowing stuff up maybe, or driving boats and helping people.

At 22 you get out of a 4 year enlistment. And you walk away with all the above, and..... the Post 9/11 GI Bill (pays for your the highest in state tuition in whatever state you are in) Housing allowance at the E-5 pay grade (how much depends on the market and where you go to school), and an extra $1000 a year. And that's not all... Your VA loan. Find a Multi Family home, do an owner occupied for $0 down, live in it, and collect rent. As far as college students go, you'd be balling!

If I only knew then what I know now. It didn't turn out so bad for me, free education, promoted from E-1 to O-3 in under ten years, Did I mention I get to drive a 13K ton ship through 20 feet of ice in Antarctica! pretty sweet.

Be slow to mingle your funds with other investors besides your parents.  Partnerships can be expensive mistakes.

I agree that learning the law will never be a waste of time.  

Since your parents are successful, ask their advice on your real estate purchases.

If Southern CA is too expensive, look farther out in CA.  It's a huge state, with affordable areas that will be easier to manage than properties too far away.

Originally posted by @Miles Smith :

@Adam Ngwhat area of California are you located in I would love to get in touch!

 I'm in Los Angeles, which isn't too far from Riverside. I'm potentially looking to invest in a property near your area as well ;)

Also, I would not suggest moving out of this wonderful state, you can always invest in properties out-of-state with the help of property management companies. Also, I'm working on my first investment property (multi-unit) and just got pre-approved for the loan I was after. I'm 99% set on doing it in California and then in the future expand to invest in properties out-of-state , as I have found some great deals in the Inland Empire.

You know that you like your job you hate your job but you live where you want to live.  You may not want to live in Houston but listen to my rule.  My rule is that you don't do this stuff for money you do it to be rich.  To be rich you have the rich lifestyle without working.  Now I look at how much does it cost be be rich.  This is not the same everywhere.  If you make $10,000/year you are poor everywhere in the USA.  But how much does it cost to be rich in your town?  If you call being rich living the lifestyle of a rich person.  Big house, sitting out by the pool, housekeeper, playing golf everyday, etc.  So you want to be able to have the lifestyle but be able to invest in rent houses to pay for that lifestyle.  In Houston that mansion lifestyle will cost you about $6,000/month.  In southern California $6,000/month will not get you the rich lifestyles we are talking about.  You can buy a rent house all day long in Houston for around $100k that will yield about $550/month.  That means that if you buy 10 rent houses.  If you put down $10,000 per house $100,000 will get you those 10 houses and you are not only retired but you are living the snoop doggie dog lifestyle.  and it doesn't snow here either. 

Originally posted by @Joel W. :

I say this all the time. I would join the military. Specifically The Coast Guard or Marines. What a great way to build discipline, job experience, have fun, travel, learn to lead others, learn sacrifice and selflessness, build comraderie, gain LIFE perspective, establish your credibility and character as a young man, and build your credit. You also get to have tons of fun blowing stuff up maybe, or driving boats and helping people.

At 22 you get out of a 4 year enlistment. And you walk away with all the above, and..... the Post 9/11 GI Bill (pays for your the highest in state tuition in whatever state you are in) Housing allowance at the E-5 pay grade (how much depends on the market and where you go to school), and an extra $1000 a year. And that's not all... Your VA loan. Find a Multi Family home, do an owner occupied for $0 down, live in it, and collect rent. As far as college students go, you'd be balling!

If I only knew then what I know now. It didn't turn out so bad for me, free education, promoted from E-1 to O-3 in under ten years, Did I mention I get to drive a 13K ton ship through 20 feet of ice in Antarctica! pretty sweet.

 I've already thought about that and scored very well on the ASVAB I got approved for nuke in the navy only thing is nuke is a 2 year school so a 6 year term.

@Miles Smith

As I talked about in Bigger Pockets Podcast #82, I started with Nothing and was forced to do essentially 100% financing for the first 11 properties.

For me, at least I say borrow as much as you can for as long as you can, but be responsible in your debt.

Originally posted by @Cliff Odom :

You know that you like your job you hate your job but you live where you want to live.  You may not want to live in Houston but listen to my rule.  My rule is that you don't do this stuff for money you do it to be rich.  To be rich you have the rich lifestyle without working.  Now I look at how much does it cost be be rich.  This is not the same everywhere.  If you make $10,000/year you are poor everywhere in the USA.  But how much does it cost to be rich in your town?  If you call being rich living the lifestyle of a rich person.  Big house, sitting out by the pool, housekeeper, playing golf everyday, etc.  So you want to be able to have the lifestyle but be able to invest in rent houses to pay for that lifestyle.  In Houston that mansion lifestyle will cost you about $6,000/month.  In southern California $6,000/month will not get you the rich lifestyles we are talking about.  You can buy a rent house all day long in Houston for around $100k that will yield about $550/month.  That means that if you buy 10 rent houses.  If you put down $10,000 per house $100,000 will get you those 10 houses and you are not only retired but you are living the snoop doggie dog lifestyle.  and it doesn't snow here either. 

 Agreed to live the rich lifestyle in the neighborhood I currently live in you have to make $20k a month since the homes in my neighborhood are anywhere from 1.5-4 million, I might have to take a look at out of state investing instead of moving entirely to a new place at least until I get my feet off the ground and can have more investing knowledge.

@Sue K. that's the way im leaning towards at least at the start partnering with my parents and using partners that they trust until I meet my own people.

"I've already thought about that and scored very well on the ASVAB I got approved for nuke in the navy only thing is nuke is a 2 year school so a 6 year term."

6 years go by fast. There are tons of jobs in the miltiary that are fun. In the Coast Guard we entrust 18 year old kids driving ships, and small boats. No where else in the U.S does someone give the responsibility of 5+ lives and a $500K small boat to an 18 year old kid. Don't be afraid to do something just for fun, just because you may be extremely intelligent people might want you to do "intelligent jobs", most times those aren't that much fun. Be a Boatswainmate drive boats, be in infantry shoot guns, etc ASVAB score required.... about 45.

Originally posted by @Miles Smith :

@Sue Kelly that's the way im leaning towards at least at the start partnering with my parents and using partners that they trust until I meet my own people.

 I did want to add that having a "real" job with a steady income will be a good thing at first.  You can get your RE license if you want on the side, or just take the classes without getting your license.  But, if insurance doesn't interest you, I think you might want to buck your parents on that one :-)  

I agree you should find a job that gives you pleasure, if possible.  And a steady paycheck.

I would go to college and study money in some way, shape, form or fashion.    Because everything in this world revolves around money such as real estate.  You will have to borrow MONEY to get started or continue typically.    Some of the wealthiest people I know are involved in banking.    It's a license to steal legally  and the gov't backs you up.   Where else can you make billions of dollars in stupid loans and get bailed out and use that money to go buy more banks and start all over again and nobody says a darned thing?  If you want to make money, you have to be in money.   The heck with being a real estate agent, who wants to work those crazy hours to sell a house?  Working Saturday's and Sunday's because that is when people are off to look at a house.  

@Sue K. that's exactly why I'm looking at insurance to start a family friend owns a Farmers branch he has a couple people that are in there 3rd year making 6 figures so I know I could use a lot of that income to be directly applied to real estate, my debt to income ratio will also be helped by this. Insurance I've also found to be very important to real estate, with this job I will be able to get inside information and a very deep understanding of the different types of insurance that I can use on properties. What would you think about networking with Realtors while having the insurance job and seeing if they would recommend me for homeowners insurance when they make a sale? I could learn from them as Realtors and help my day job.

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