25 years old starting out in RE investing? Do I give up My dreams because of lack of resources? Frustrated

41 Replies

I've been working on jobs i don't like and aren't paying much. I don't have alot of credit established and i can't qualify for loans. I'm really just frustrated with the process of entering real estate without any credit and without any savings or even a decent job that pays well to be able to save up eventually..FRUSTRATED. I DON'T WANT MY REAL ESTATE DREAMS TO DIE 

lucky you @Takeshia Martin

you just found the best site going for investing 
read,ask questions,listen to the podcasts and then get out and learn the market you wish to invest in 
good luck

Thank you for the encouragement! I agree I'm grateful for Bigger Pockets it's very informative. I read and listening to topic about real estate everyday. When i finally realize i can do it i'm always hit with stories like people who money for their first investment or had decent credit to get a loan to buy it..I don't have either funds or grear credit. It always puts me back in a hopeless spirit.

If that's all it takes for you to give up, then you should probably find something else to do with your life. Listen/read J. Massey's story. Once you reach that point, then you might qualify for some sympathy.

I recommend:

1) start repairing your credit. It is not difficult, but does take time

2) Learn about wholesaling

3) Learn about flipping using hard money

4) Ask questions on BP to help move you toward your goals. Use Facebook for whining

To be perfectly honest, @Bryan O. has a good point. Real Estate Investing is something that anyone CAN get into, but not something everyone SHOULD get into. Those programs that charge thousands to "learn the art of RE investing" are not making money on their students success, but on their students attempts - win, lose, or draw.

Hone a skill set that can be of use to an investor and intern for one. Show diligence and hard work and turn that internship into a job. The education alone will help and along the way, you will find out if the field is really something for you! If so, working for an investor will help with the savings issue and you'll be on your way to your own deals.

"Never give up on a dream just because of the time it will take to accomplish it. The time will pass anyway." But the other side to that coin is be sure you're interpreting the dream correctly

You know what , if you find a great deal, or a really great deal , the money will follow. If you find an amazing deal you can either resell( wholesale) or get somebody to partner with you(lend or be money man ).  I have done it. If people can make money, they will come.  Bust your butt getting an amazing deal under contract. Money that makes money is much easier to find.  give people a reason to want to do business w you.  In case you haven't done it join a real estate club. Also find out who is buying houses cash in your area. Contact them.    Best of luck. Happy investing 

Despite what some may tell you, real estate begins with a head game. You've got yo get your attitude in the right place. 

The other part is the action part. If your attitude is not right, it will like affect your actions.

These combine and conspire in an ever-spiraling nose dive like a fighter jet,  if not careful. 

No one in real estate that I've ever met isn't subjected to feeling discouraged. At least anyone who has been in the business more than six months and is paid via results.

If your credit is toast, you don't need to focus on borrowing, right? At least not now. 

Deals are made, not found. I've never allow lack of capital stand in the way of making money. If the deal is right, the money always appears. If you don't know what makes a deal then that's where you start. 

When I'm feeling sorry for myself for some silly reason, I go help someone who has less than me (nowadays that's 95% of population). 

Do you write out what you're grateful for?

Grow where you're planted. Start where you are. If you're green you grow; if you're ripe you rot. Plan your work and work your plan, but don't plan the results.

Your current frustration stems for you inability to buy real estate. However many people are able to buy real estate and in fact do only to find out they purchased the wrong real estate in the wrong area or purchased a property to rehab having little or no experience with rehabbing and accurately estimating the cost of repairs and the length of time required to do the repairs. There is allot about real estate investing and managing you can learn without having money or much money or good credit.

For example you can go down to your local building department and planning department and learn how to establish if a particular property is legally being used. Locate a property maybe an empty building and take down the address if there is an address and go down to your local building department and find out everything you can about it. You will learn how to get an assessors parcel number. Look up and review tax records for that property. Learn to use Redfin if available in your area or simply inquire how to do comps. That is compare the value of similar properties recently sold in the area of the property you are researching. If the building you re researching looks to need repairs learn to estimate repairs by asking contractors what they would charge for certain repairs like a new roof, installing a new walkway. If the house your are evaluating and researching appears to have single pain window learn to estimate the cost of dual pane double insulated windows. Ask about code requirements for additions, and system repairs like electrical, plumbing, HVAC . All this is related to real estate investing. 

Read the post on here and all the educational material available here on Bigger Pockets see what those that own real estate are having issues with. 

Venture Capitalist ofter market to start up companies but in fact no one will ever invest in a complete start up where a person has nothing but an idea. What Venture Capitalist means is a strong young company that is already experience some degree of success and ready to take the next level up in development with a strong possibility of financial gain. 

You can look at real estate in the same way. It is a business and any business has expenses. You have to be able to cope with and comply with a certain minimum of expenses . So work. It may take time but you have a goal. You have your sights on being able to do your first real estate deal. You should have a car, insurance on your car, money for gas, time to drive around to do specific research and analysis. 

Its been suggested you find a local real estate investment club or group in you area, attend the meetings and learn more plus expose yourself to those in the game already. 

Allot of people get involved in buying real estate without really understanding the real estate business or the real estate market they are in, looking in for properties if out of area, or making sure they will be able to do with any particular piece of real estate. 

Yes real estate involves buying low and selling high or buying for income generation or appreciation. You have to really understand these concepts. You should not buy a piece of real estate just because you can buy it cheap. Have you heard of houses you can buy for a little as $1 or see properties you can buy for under $5,000.00. Oh you can find these properties alright but that does not necessarily mean you should buy them. A house you can buy for $5,000.00 may require $100,000.00 to repair and then after repair you have to evaluate if you can sell it or rent it out at some kind of gain beyond you expenses. 

Not all real estate is or will be a good investment and you have to learn how to tell and recognize the difference between a good investment and a bad investment. 

I would say its just as well that presently you do not have the money to invest in real estate because you simply do not know enough about it yet to invest your hard earned money. You have to possess the intelligence and knowledge to make sure whatever real estate investment you consider will be a good deal, a good investment and that you will reasonably obtain the desired results from making a real estate purchase.

Lets have some fun !!1

Lets just put a scenario together of two very similar buildings. 

They are both 16 unit apartment buildings. One is located in the worse part of town but its listed for $325,000.00. The other in located in the very best part of town and is also for sale listed at $6,000,000.00. What accounts for the difference in asking price and which one would be the wiser choice for purchase?

You find out the one being offered for $325,000.00 is only  30% filled with tenants each paying an average of $600.00 per month and the one being sold for $4,000,000.00 is 95% filled with tenants each paying and average of $850.00 per month.

16 X 30%x$600.00 = $2,880.00/mo gross rents

16 x 95%x$2850.00 = $43,320.00/mo gross rents

Look up how to calculate cap rates and do this for each of these buildings. 

This would be only one of the things you will use to consider if a building is a good investment or not, the other is to review the historical income and expense records which you might not have access to unless you have already proposed a purchase by way of offer or contract and that is another aspect of real estate buying you have to be familiar with and knowledgeable about. 

There are things you have to know in order to determine if you should even be interested in buying a property and things you should know and make sure of before you actually go through with the purchase and close on a property. These are things you actually will do someday. 

You need to know what will be your expected operating expenses for any building, cost of holding a property while it is not generating income or consequence of buying a property that will produce good income but not appreciate much over  the years. 

so now that you do not have money to purchase a piece of real estate is a good time for you to learn as much about it as possible so that when the time comes for you to actually put down your hard earned money you will doing for a stand point of understanding, knowledge, and a having a better ability to evaluate whether you are making a good deal or not. 

Real estate investing is a career. A doctor may spend a good 10 years learning and practicing before they ever take on the full responsibility for the complete care of a patient. 

Take a systematic and methodical approach to real estate investing and building up your real estate holdings.

@Takeshia Martin 

We have similar stories. I'm 25 looking to build my real estate portfolio. Even thought I do have a good job, I cannot afford to purchase anything in the Bay Area. Therefore, I have to look out of state, has added cost. So, the thing I've decided to do is learn as much as possible while I save money. The more you know, the better off you will be when you take action.  There's no rush. There will always be deals.

There are some other options is to figure out a field you think you will like and go get training or schooling in that field online or at the school.  Also becoming a real estate agent maybe a way to help your dream come true.  Their a book,  "The New Psycho-cybernetics" by Maxwell Maltz will help you feel better and get rid of the frustrations.

Making long term plans for your real estate career will help you get from among the trees to see the forest.  In life, those that make long term plans get more out of life.  Never give up on your dreams.  You will have to take a break at times in order to get your balance back.  That does not mean to quit, just a vacation to relax and recharge.  Many here have been in your position and have been able to make their dream come true.  Wishing the best that life has to offer.  You can make your dreams come true!

I purchased my first few properties 20 years ago with no money down and you can still do it today.   The key is to first look at the positives of what you bring to the table.  There are many people looking to invest in deals and they have money and credit but no time to find the deals.  If you can find the deals, you can connect with the people that have the cash and they can become your partners.  It's a win win for everyone.  I do this with commercial real estate deals in Columbus Ohio and elsewhere because I am very good at finding deals, adding value and creating great commercial real estate investments for myself and my partners.    

Brad Kitchen, SIOR

President

Alterra Real Estate Advisors

Columbus Ohio 

Alterra Real Estate Advisors

Also you start learning how to do subject to properties.

Originally posted by @Takeshia Martin :

I've been working on jobs i don't like and aren't paying much. I don't have alot of credit established and i can't qualify for loans. I'm really just frustrated with the process of entering real estate without any credit and without any savings or even a decent job that pays well to be able to save up eventually..FRUSTRATED. I DON'T WANT MY REAL ESTATE DREAMS TO DIE 

 Takesha,

First you have to be commended for finding this site. This is a great start. 

Second, take a couple of hours or so and make a clear assessment of where you are TODAY. Your resources (money, credit), your knowledge (education, ...) and where you want to be in 3 months to a year.

Third: Create an action plan. Short term (1-3 months) and medium term (3-12 months or so). Write it down on Paper.

Fourth: Execute on the action plan. Don't procrastinate, don't find excuses. EXECUTE.

Then, repeat ... 

1) Accept that RE is a slow process that takes a lot of time (read years) to really get rolling.  Commit to this.

2)  There are 168 hours in a week.  Not making enough money?  Sleep less, Play less, Work more.  Preferably, one of the jobs should have something to do with RE so you can gain some applicable knowledge to build your business.

I often work 70hrs a week before I even touch my RE business.  The above may be harsh and I don't know your personal situation (kids, spouse, other commitments) but I have a hard time with "I don't have any money" threads...when you're not already providing the maximum effort on your own accord to get where you need to go.

Memphis is not a difficult market to enter price-wise and you can get there if you desire it.

Just go find good deals. It's not easy, and it might not be immediate, but that's all you gotta do for now. 

@Gilbert Dominguez THANK YOU for that post. It made my day. I am new and I had a commercial opportunity fall into my lap. I've been talking with the city planning commission and reaching out to local investors to see how I can get this deal to go through. I've met a some resistance from a few guys from my local REIA (commercial focus group) but have gotten lots of positive vibes from others. I understand the concern about me being a newbie and this huge project being the first thing I tackle. But something in my gut won't let me let it go. Every day I'm researching, making calls, reaching out to would be investors. You confirmed that I'm doing the right thing. And on top of that, I sit for my real estate license exam this coming Tuesday. So I'm hoping once I pass it, it'll give me a little more leverage.

Being involved in real estate as a career involves a lifetime of making deals and the more versed and experienced you are at making deals and getting and having answers then the better your chances will be on getting your deals closed. Getting your real estate license I do believe will help give you just a bit more credibility among your peers. 

Best of luck Adrienne and never give up just learn and keep on trucking.

This posts really hits home. I haven't been involved in RE long enough to feel the frustration but the advice posted here is valuable and helps a lot nonetheless. I've learned something that I'm sure will help me just from a few responses to someone else's outreach. Now to do something with it! 

What is this RE dream?  Can you be more specific?  If you had a downpayment and could get a loan, then what?  How is buying a property going to help you or make your dreams come true? Are you going to live off the $100-300 positive cash flow?  Are you going to rehab it and resell it with no additional cash out of pocket? 

If your dream is real estate and you have jobs you don't like, then why not get a real estate job.  Become an agent.  Or an appraiser, or inspector  Work in lending.  Or construction.  Use the job to get paid while you learn about the business

Is real estate your dream? Or is the dream financial freedom? If real estate is your dream, then you live and breath RE.  Nothing could keep you away.  If financial freedom is the dream, RE might not be the easiest or quickest way.

@Takeshia Martin

  I agree with Kristine Marie Poe

  not sure why all these folks get disappointed because they cant just read BP and have no money no credit and become real estate investors and live their dream.. get  A job for gods sake.. get a RE license sell RE you will earn while you learn... this whole Guru BP stuff about having no money no credit and get rich in real estate is just a bunch of BS... you need to earn it first.. then you can flourish.. you need a reality check and not get down on yourself..   get educated the right way.. work for a living .. work in the field that you want to ultimately end up in... this is why 90% or better of the folks reading BP never do anything in RE  because they are not realistic of what it takes and do not want to do an apprenticeship they just want to poor water on the seed and grow a 10- foot sunflower in 30 days.. :)

@Takeshia Martin , I had a dream of becoming an attorney, but was working minimum wage on a farm.  Then I got married and seemed to have less money.  it took me 10 years to get a 7 year degree because many years I could go to school for one semester because of lack of funds.  you would be surprised you can live off of $10 of dried beans.  I can remember my first decent paying job after college and finally being able to afford to buy cheese, it was so cool.  I was able to buy land and a trailer house for at least $75 less per month than I could rent an apartment for.  It did not happen in a day, a week, or a month, it took 10 years but I made my goal.  you don't just snap your fingers and it happens it can be years of hard work before you begin to see results.  I usually had 2 and sometimes 3 obs even when I was attending school.  I can remember praying for snow because I could get a snow shovel and walk around town and shovel snow and make $15 to $30 a day extra for a day or 2.  Be thankful you do have a child dying from cancer, or have a stroke and be paralyzed on one side of your body.  you are young but able bodied you can make it happen but it takes discipline and lots of work.  You will want to give up lots of times but keep motivated and keep your eye on the goal.  Right now is the time to get educated while you have more time than money.  There are some great Dave Ramsey books you could probably get at the public library to help get your finances going on the right path.  Good luck

Your why needs to be stronger, ask yourself why you want to get into real estate and set goals. You have a big advantage being in a hot market like Memphis, I live in LA and saved up for 3 years to buy in your market. You can do it just start learning something new everday . A few tips for you , good luck!

Originally posted by @Takeshia Martin :

I've been working on jobs i don't like and aren't paying much. I don't have alot of credit established and i can't qualify for loans. I'm really just frustrated with the process of entering real estate without any credit and without any savings or even a decent job that pays well to be able to save up eventually..FRUSTRATED. I DON'T WANT MY REAL ESTATE DREAMS TO DIE 

 Become a realtor. Do the exams, get your associate license or whatever it's called. Get it hung somewhere, and start playing the game properly.

I am convinced that all this wholesaler stuff, and much of the rehab flipping businesses are now going to be short lived - too many people trying to get into the game from gurus, sites like BP, and TV programs. At the end of the day, the U.S. market cannot support 5m investors flipping houses. People on BP already complaining that they are seeing less and less opportunities in their markets (strange that, tell everyone your strategy and your neighborhood targets and it attracts more people - it's a bit like telling people your darkest secrets and suddenly wondering why everyone now knows your darkest secrets).

But the real long term money is becoming a realtor, and then maybe a broker if you really hate yourself.

For a very simple reason: people in the RE business (not pretend investors) get to know about stuff before it hits mls. If a realtor is negotiating a listing in your office, you get to know about it before everyone else.

The downside Is that it takes time to become established as a realtor. My realtor for instance has taken 4 years to get off the ground, the man is a machine, every time he's out, he's handing a card out, he now has an assistant as he's that busy, but he's easily pushing into 6 figures in commissions now.

Originally posted by @Takeshia Martin :

I've been working on jobs i don't like and aren't paying much. I don't have alot of credit established and i can't qualify for loans. I'm really just frustrated with the process of entering real estate without any credit and without any savings or even a decent job that pays well to be able to save up eventually..FRUSTRATED. I DON'T WANT MY REAL ESTATE DREAMS TO DIE 

 As exciting as it is to type a post to motivate a fellow investors, its equally disappointing to see some one giving up so quickly and easily. 

Talk about resources? Do you have two hands, ability to see, walk, talk, and work legally? Trust me, these things combined are far more than millions of people that could and have done better than you.

You say, you don't even have a decent Job that pays well. If you can't even land yourself a decent Job, how are you going to close deals in Real Estate (if you had the money)?

Sorry, just very disappointed

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