I live in the NJ are and am currently a Junior in high school(16yrs). I've always planned on investing in real estate in the future but I'm getting sick of waiting so I was wondering if there would be anyway for me to start now. I have about 3400 saved up, 2400 of that is for my car but I would be willing to invest it if the situation is good. So how would be the best way to start in my price range?
You've already started the first important step, saving.
You can't legally enter a contract without a guardian until you are 18. Do some research on that if you plan on buying something before 18.
I recommend getting out and going to work with an electrician or plumber. Learn how to do something that will save you big money on your first few properties. Plus being a plumber or electrician is a good full time job as well, the US needs TONs of them in the upcoming years.
For your research I would say start looking at the various aspects of Real Estate. Buy and Hold, Agency and Flipping are the most obvious. Beyond that you have notes, property management and wholesaling. There are more obscure avenues as well. In each of these options you will find mentors, advisors and adversaries. You don't need to be well versed in each aspects (you don't have enough time in the day) but having a basic understanding of many will give you more options in your investing.
Most importantly, enjoy what you looking at, do good, accurate research and find something you can love while putting in work.
thanks @Aaron Montague
I've done a lot of research on Buying and holding and that is probably my "favorite" strategy. Real estate is just way to expensive in Jersey for me to be buying any property with what I have. So maybe I could buy something in a really cheap market like Florida? Or possibly REITS? My dad is on board with me trying to invest so everything would be going through him.
I started when I was 19 and the best thing I would think you could do is find out who does what you want to do and do task's for them that they wouldn't mind you doing.
Easier said, than done:).
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I know a guy who bought his first fixer at age 15! He spent a year fixing it up and doing all of the work himself. I think about $10K for the property, which he got from his mom, who also co-signed for him. He kept the house as a rental for many years. His education by doing it himself was "priceless"!
I like the idea of getting a job with a plumber or electrician. You would learn a lot that would save you a lot in the future. Maybe even with a contractor or construction company.
You might be able to volunteer with Habitat for Humanity. Don't know if there are age restrictions. Also, lowes and home depot offer how to classes.
At your age, go for, you don't have anything to lose. I wish my teenagers were as motivated!
What's up young man,
You are at the perfect stage in your young life to began a career in real estate investing. Educate yourself as much as possible before making your first purchase, read everything you can on the topic and find a mentor.
Here's a list of books to read (this is not a plug and I am not being paid by any of the authors):
1. Rich Dad, Poor Dad by Robert kiyosaki
2. The Millionaire Real Estate Investor by Gary Keller
3. Buy and Hold Forever by David Schumacher
4. Investing in Duplexes, Triplexes, and Quads by Larry Loftis
5. How To Make Big Money in Real Estate by Tyler Hicks
6. Building Wealth One House at a Time by John Schaub
Also, stay on Bigger Pockets and check out the recorded pod cast.
What a great age to get in the game! We are basically on the same page knowledge wise on real estate investing, but I'd loved to have had the conversations that I'm having on this site at your age! Good luck to you! Congratulations on your first step👍
Thanks for all the support guys (thank god I know how to use the @) thanks Raymond B. . ... I'm actually currently about half way through the rich dad real estate investing book. When I'm finished with that I'll definitely check out some of the other ones on your list @Vincent Grant . The thing is with the whole becoming a plumber or an electrician thing is, is that I feel that would make more sense if I was trying to get into flipping.which im not. From what I hear flipping is very time consuming if u choose to do it yourself. With the properties in my price range I probably wouldn't even be able to afford to pay someone (especially in this market) is there any way I can gain experience in buying and holding rental properties in my scenario? Thanks so much for the great responses
Correct me if I'm wrong
Something tells me you arent ready. Buying to own versus buying a REIT is worlds apart. You need to concntrate on saving and finish school. You are 16- chase girls for awhile,................lol.
Osama Bin mostafaa I am lol...I definitely plan on investing once I'm out of college, just wanted to know it there was a way to get involved now with what I have to gain knowledge and experience (and money of course)
get a job at a real estate firm. be someones GOPHER if you have to. You will be so far ahead, real hands on experience.
I would Start Networking. Meeting everybody and under stand their specilty. When you do get out of college.. you'll be far ahead of the game then most. .including me.
I'm also in NJ and can totally relate to how expensive our local market is which is why I have been focusing on out-of-state single family home rentals. I'm currently investing in the GA market. It's awesome that your dad is supportive of your ambitions and I commend you for having vision and determination at this early stage of your life. It may not be a bad idea next time you plan a family vacation to take a trip to a market that might interest you, perhaps Florida or elsewhere. Start exploring and researching your target market and continue saving. It's also a good idea to start crunching numbers on any prospects - important skill to build to help you evaluate potential investments. Good luck!
@Janna M. Glad to have someone that understands jersey. How difficult is it to manage single family properties out of state?
I think what I'll end up doing is visiting a couple real estate investing club meetings and network and see if a firm will give me a job as a coffee kid or a secretary or something. That would be great
Not easy investing out of state but if you're determined it is doable. This is where team building comes in. Need to build relationships with people you can trust and need to screen prospective tenants carefully. Good tenants will make out of state investing much more manageable.
@Janna M. How often do you have to go down to Georgia to "check in" ?
Hey! I'm 19 and so far I am starting out with Jackie Lange's book, "FLIP DEALS: Real Estate Profits on Steroids - Real Estate Investor Training."
This book is also meant for those who are starting out in real estate. She started out as a stay-at-home mom with no experience in real estate. On her first year of learning about wholesaling with some of her own tips, and after studying for about 2 weeks I think she said, she made deals on 40 run-down houses.
Since then, she has dealt with hundreds of properties, from $400 mobile homes to a $20 million dollar mansion. She emphasizes, like anyone should, on people's needs before the big profit.
I'm still learning the stuff in her book still but I am excited for what's to come this year for me and that hopefully I will be able to help guide others who are struggling financially and getting them more independent from government. Jackie Lange has strongly been influenced by Jack Miller. Also, Jack Miller personally knew well John Schaub (they worked together on some things), another real estate legend I would say, along with Peter Fortunato.
But I would say start with her book and get some experience if you can! That's what I am doing. Hope this helps.
I wish I was as focused on wealth building at 16.. or even at 19. Here I am at a whopping 25 just getting started, lol.
Everyone else gave all the good starter advice pretty much. Working under other investors or agents is a good way to build experience. Between that and remaining active on BP, you'll do great!
Maybe once you've built a solid relationship with a local investor or two, you can use some of your savings to market for deals & make money as a birddog. As far as I know, there's no age restriction on that.
At most twice per year. This year I may not go down at all. Still juggling a full time job in addition to my investing. I have a leasing agent who advertises and shows my properties for rent. She screens prospective tenants, collects applications, prepares the lease and move-in checklist. She inspects work performed by painters, etc. and sends numerous photos to me. I pay a 1/2 month's rent for this service. Filling a vacancy is generally where most of the landlording leg work goes so I am happy to pay for this service. You do have to keep a close eye on the process, however. I generally like to get my own landlord reference, for instance. I use home warranties to help cover unexpected repairs. Finding a good and reliable handyman is a must.
@Janna M. sounds like a great gig you have setup. Best of Luck to you in the future
Does anyone have any tips for getting like a secretary job or any entry level job at a firm? Does anyone know a good firm to try to get a job at close to NJ (I am more the willing to commute to NYC, in fact I would prefer it)
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