I am a young professional, looking to invest in my first property. My only problem is that I do not have the capital to do so, and cash is king! I'm a very hard worker, always hands on. Being driven to succeed is my zeal! My main goal is become a real estate developer. HOWEVER, as a 21 year old young lady, I'm pretty unknowing to many aspects of the business. So, Here are my questions:
How did successful investors begin, trial and error? I'm thinking about going that route, and doing it myself, but why have the headache if someone is willing to help me? Who can guide me in the right direction? If I do happen to venture off on my own, what are a few effective ways to finance a property without cash? I have found a motivated seller, and I want this property. Should I bring my friend, who is a real estate attorney, to pitch owner financing? Should I propose a master lease? Should I find a partner/mentor before doing anything? What kind of collateral is the best, without owning a home currently? I am in need of some assistance, and am not afraid to ask. I'd love to hear some responses about how to find prospective mentors. I appreciate your comments, in advance!I
If you're 21 I would get my license and have an experienced broker that knows creative financing and work with him-her for a year,
You can search my posts on creative financing such as owner financing, subject to, lease options, and installment sales
Thank you for your response. I was thinking that I should get my license, just to have more formal education/knowledge. However, I keep hearing people say that I'm not going to be getting any information that I'd need in the investment facet of the industry. So, skip trying to work with a seasoned investor; just get my license and get a good sponsor?
I really appreciate it.
I would say that your friend who is a real estate attorney will definitely come in handy! I have seen one of the biggest assets in real estate investing is a strong network. It is amazing what can get done if you know enough of the right kind of people! As for your potential purchase do you have any cash set aside at all? If you are going to be living there you can usually get some deals on your financing with low down payments 3.5% for FHA. For owner financing he is still probably going to want some kind of down payment and a higher interest rate anyways, but that is an option if your credit is less than ideal. I have found there are alot of great knowledgeable people on here to connect with, I have also found on meetup.com there are REI clubs which could also be a great source for a partner/mentor. Good luck!
If you are already looking at RE at 21 you are well on your way to financial success. As Brian mentioned, getting your RE license would be a HUGE start to. That gives you the opportunity to network and please do network all you can. As a new RE agent lawyers, bankers, title companies, accountants will all give you there time FOR FREE, or at least that has been my experience, to potentially get your business down the road.
It may not get you your first deal, or it just might, but it will at least give you a solid base you need to move forward with deals once you actually find them.
Then actually selling/buying places as a Realtor will get you first-hand experience with transactions. You can also, and it is recommended, to sit in on closings. If you hear of some creative closings, try to sit in on those as well.
As you grind along as Realtor you will come across deals that you might be able to parlay your commission into a piece of the project (commissions can really add up). Or you could have some cash saved and not only parlay your commission but add in your own capital to make it happen for a larger piece of the pie. Or just put the cash in and collect your commission at closing like usual.
Keep grinding but always keep reading and adding new strategies to your tool belt. If you find a strategy that works, mine the **** out of it but me mindful to keep learning and exercising other strategies so that you are more diversified and well rounded.
Just some food for thought.
PS. This is the route I took and it has snowballed.
PSS Patience, Persistence, & Perseverance is needed in RE.
Welcome to BP. I totally agree with all the good advise that have given to you. I would also suggest that you start build your good credit as this will also aid in your budding real estate career. Great to see starting out young and it seem to have a good head on your shoulder. You came to the right place to get started. Wishing you the best.
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