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

41 Replies

Promotion
PropStream
Web + D4D Mobile App for you & the team!
Trusted Provider of Real Estate Data, Marketing, Skip Tracing & A
#1 Real Estate Software for Investors, Agents & Brokers to find leads and close deals nationwide.
7 Day Free Trial!
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

@Takeshia Martin You are very lucky to find this group while you are young. In all my years of working for others. There is only one thing I can tell you. You will never make a living if you work hard for other to have what you want. Every day you spend working on bettering your self to live your dreams the closer you will be to having them. Just believe you can and you will.

There are only 2 ways to make money in life. 1. you trade time and 2. you sell something. The only question is who's time and who's products and services. Live your dreams as you only get one life and you make it what settle for.

Hello Takeshia Martin, i know the feeling i like you find myself really fustrated do to my situation.  I have no money and trying to file bankruptcy and then im getting into real estate, lol all bad i know. so trust me when i say i know how you feel. I know that it will take more work on my part but i refuse to give up and i hope that you will refuse as well. 

Originally posted by @James DeRoest :
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.

 Good advice here.  I just recently made a career switch in the past 18 months to get into real estate and got my real estate license.  I will openly admit I have a wife who makes good money at her job and that is enabling us to make some moves with our own investments but truthfully, getting my license and being forced to really learn about the biz is a huge help.  And it sounds like you aren't making much at your current job but if you can get through the licensing, and pay all the fees to hang your RE license somewhere, you just may be able to join a team as an admin where you will be a glorified intern and not make a huge hourly salary either but 1. you can earn commission if you refer your friends and family to buy with your lead agent, 2. you can get a birds eye view of learning about the business.

Things can happen fast and as other said if you find the deals, the buyers will come.  A friend mentioned he was ready to finally buy his first investment and we were set to go out and look at some properties.   an hour before we were going to meet, he wrecked his car and then we both got a bit busy with life.  2 months later, I saw a deal that really stood out and emailed it to him.  He dropped what he was doing and we went to see it.  2 days later we had it under contract.  We renovated it, got it rented for top dollar and he told me "man, that is addicting"  to which I said, "oh yeah, well take a look at this one"  next thing you know, I have him under contract on another property!!!!!  

Feeling discouraged at times is normal, it's how you deal with it that will set you apart.  I'm 37 years old and spent my 20's and early 30's chasing dream careers and doing other things and I don't regret it at all but now I am enjoying doing real estate and helping make others dreams come true whether it be owning their own home, or buying investments for their future.  It can be very rewarding emotionally as well as financially.

there isn't much more that i can say that hasn't already been said.  except one thing... spend some time and think about the one thing that you want to achieve above all else, be precise and keep the goal simple.  (please dream big) .  write it down and stick it your pocket and then also put it someplace you can see every day.  that way it becomes burned into your subconscious.  All you need to be is 1% better every day and sooner than you might think, you will achieve that goal.   

@TakeshiaMartin

You've made the best move that you could possibly make by joining this site. I joined a few years ago, and have had many of my questions answered by simply cruising the forums. My main suggestion to you is to start with the low-hanging fruit, meaning the things that you can directly control...like your credit. I've read many comments mentioning that no credit is required to invest. This is true. However your confidence level is much higher when credit isn't something you have to worry about. There are a few easy things you can do now to get started:

1.) Sign up for a monthly credit monitoring service (i.e.: equifax.com, transunion.com) 

2.) Jot down a list of all derogatory accounts and setup a game plan to attack them one-by-one (use forums like myfico.com or creditboards.com for template letters to send those creditors/collection agencies.) 

3a.) Once you have cleared the majority of them, start building credit. There are many ways to do this. When I started off, I solicited the help of family members who had good credit histories and asked for their permission to become an 'authorized user' on one of their high-limit/low utilized credit cards. Now this doesn't mean that they will actually give you a credit card. You are simply piggybacking onto their good credit history as a way to start building your own. 

3b.) Open a "secured credit card" with your local bank or credit union. This card is different from others because it is designed for people with limited credit histories. You will give the bank a deposit which will determine the limit of your credit card (i.e: $250.00). Use the card for very small purchases, and pay the balance off as soon as you receive your monthly statement. Each time you make a payment, you are building another month of credit history. 

3c.) Capital One has a Platinum card (with an astronomical interest rate) for individuals with limited credit files. This particular card doesn't require a deposit. Use the card on very small purchases and pay it off in full once you receive the monthly statement.

4.) NEVER miss a payment. Even if you have to borrow the money. One missed payment can set your score back 100 points. This is the most important step of them all as the whole goal is to build credit.

Once you start using your cards, the rule of thumb is to try to keep all of your balances below 30% of your limits. I keep mine below 20% just to play it safe. This will help you to attain your highest potential score at al times. Do not get discouraged!! It may seem like an uphill battle but at the age of 25, your head is definitely in the right place.

Though there certainly are ways to invest in real estate with no money or no credit, the ball is in your playing field when you have at least one of the two. Start with what you can control now. Best of luck on your journey!!

Originally posted by @James DeRoest :

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).

----------------------------------------------------------------------------------------------

There are tons of properties to be had don't fret. The reason the mls is in short supply is to many rely on it to make their living and less properties are being added because People are creating their own lists and the properties never see a realtors office any more. Thus the unsellable properties list gets smaller and smaller.

Your goal should be to create your own list so that you have more then enough properties for your self and if you decide you can always sell your list to others. Realtors are not happy that people are buying and selling around them and that is to be expected in any market or business.

Just have faith and create your own way. Don't rely on the scraps realtors can't sell.

JC

I must say.  It is interesting to see the differences in opinion and approach when it comes to how people respond to a statement.  It never fails to elicit quality information on both sides of the line.  I love it.

What an active thread, this is very excited, and you must be keeping very busy catching up on everyone's input.  Anyone who commented to stay up and move through the discouragement is on point.  Subscribe to the Zig Ziglar podcast, it will keep your head right.

I don't want to say this, and I'm not knocking anyone, but "keep learning" and "get involved in real estate", while all great and obviously very important parts of getting into the industry, just don't hit on actionable advice to me.  It kinda sounds like, "just get out there and do everything at once" to me.  Seriously, what are you supposed to do with that?  (but do it anyway, by the way).

Here's what I would consider a more concrete suggestion if you really want to bust into the real estate game but think you are completely helpless to do so:

Buy a duplex.  Move in to one unit.  Rent the other.

Bad credit, no money, blah blah blah right?  There are plenty of programs for those situations, government guaranteed loans, down payment assistance, it goes on.  Just move on it.  It's so easy to do as a homeowner, especially a 1st time home owner, rather than as a "real estate investor".  Find the right program for "bad credit" and DO IT NOW.

This is what will happen: you will instantly become a real estate investor and it probably won't cost you anything to start, not to mention that since someone else is paying your mortgage, you will pay much less rent than if you live in an apartment, which will also instantly improve your cash situation.  You will get to be a landlord; maybe that is or is not the direction you thought your real estate career was heading, but it's an interesting experience, not to mention that you will find great satisfaction in that check coming to you every month.  Now you're learning what "passive income" means.  When the clock strikes 1st of the month, someone owes you money, and you didn't have to trade a minute of your time for it. 

This may be the start of a slow and steady process to realize your dreams, but the alternative is to keep doing what you have been doing, and you're clearly not satisfied with that, right?!!  Oh, and if you find that the real estate industry is not for you, you still own an asset and are paying less rent for more space than you would otherwise, so you pretty much cannot lose.

@Mark Brogan undefined @Bryan O. @Travis Lloyd

 @Eric Hrlbock

 @Rick H.

 Thanks for sharing your thoughts on my post. I took heed to each and everyone of the stories of stuggles in the beginning, the bluntness on how I can be more focus and determine in achieving my goals, the passion for helping others and support most people shared through this post  was everything to me, the different strategies i can use without alot of cash or credit was so valuable in my RE education. My first post was a hit  took alot away from it I'm so humble people are so cool on here. look forward to asking more questions and having as much feedback as possible..

So true K. marie P.!

I remember my first REIA meeting in Dallas, Texas. It was a Tuesday night back in 2001 and I had a full time job as a Social Worker helping people with Mental Illness. I heard about the REIA group from a friend. I attended that meeting and listened to a female investor from Cinncinati, Ohio (Vena Jones Cox). That woman stood on stage and taught us about Lease Options. I had no clue what that meant. It was totally over my head. But after that night, I still can't get enough Real Estate. It's a fix. I have a passion for doing it. I love being in the thick of things every single day. I was blessed with having been given this road to choose at 37 years old. I owe my lifestyle to Real Estate. I owe my success to other people who helped me along the way. I am still not financially free, but I'm very close. That day will come soon enough. And now, I pay it forward to as many as I can.

Don't say you are frustrated Takeshia. Keep learning. Attend local REIA groups. Ask other successful investors how you may help them. Go look for deals for others who have the money. Find the Tennessee State contract online. Download it. Print it. Read it. Learn it. Then use it to get houses under contract. Read the book that Than Merrill wrote on Wholesaling. It has everything from soup to nuts. I'm not promoting anything here. I read his book for free on my Kindle. It's a good one because it covers everything about wholesaling. But you need to learn what to do in your state. Find a good title company. Make an appointment and ask them if they will help you learn how to fill out the State contract for your first few deals. I know they will. They want your business. And find your courage. You can do this!!

In 2002 I became an auditor in New York for a very reputable accounting firm. I was working night and day and never seeing my family or spending time with them. At this time I was just getting my feet wet in the real estate game. Wanted to gain more revenue so I could quit my job and be with my family more. After being down at ground zero on that horrible day, i had lost friends who spent their life working hard not smarter. Now they are gone and for what? So, i really struggled with that for awhile. Then I got word in 2003 my mom was very ill well that was it. I moved back to Ohio to take care of my dying mom. Then got a divorce in 2007. Well i really went into a deep depression until about three months ago when a few people gave me a push into this industry. I guess what I am trying to say is this industry is what you make of it. Its not going to be easy but its better than giving up hope altogether. Be presistant to be consistant. My guess is for every 25-30 leads you have one offer out of all those leads. Look everywhere for leads. They are everywhere. Solve the sellers and buyers problem and get a signed deal and walk away with profit. Think of who you want your target leads to be. Example, posting signs to attrack motivated sellers and buyers. As you get calls put them on your buyer or sellers lead list. Offer a deal t

In 2002 I became an auditor in New York for a very reputable accounting firm. I was working night and day and never seeing my family or spending time with them. At this time I was just getting my feet wet in the real estate game. Wanted to gain more revenue so I could quit my job and be with my family more. After being down at ground zero on that horrible day, i had lost friends who spent their life working hard not smarter. Now they are gone and for what? So, i really struggled with that for awhile. Then I got word in 2003 my mom was very ill well that was it. I moved back to Ohio to take care of my dying mom. Then got a divorce in 2007. Well i really went into a deep depression until about three months ago when a few people gave me a push into this industry. I guess what I am trying to say is this industry is what you make of it. Its not going to be easy but its better than giving up hope altogether. Be presistant to be consistant. My guess is for every 25-30 leads you have one offer out of all those leads. Look everywhere for leads. They are everywhere. Solve the sellers and buyers problem and get a signed deal and walk away with profit. Think of who you want your target leads to be. Example, posting signs to attrack motivated sellers and buyers. As you get calls put them on your buyer or sellers lead list for a future contact lead. Offer a deal that solves the sellers/buyers problem. Look your your only taking ownership of the property either thru cash, lease option, sandwich option or thru an assignment. Its the mortgage paper you are controlling. I have a creative mind its just getting this industry under my belt so I can tweek my offers. I will get there I will succeed in this its guaranteed. Because Im not giving up. Oh and by the way, im 53 years young and i think its about knowing your industry. Knowledge is power and BP is packed full of information. Plus they're so many sites you can gather info from. Pick the best one that makes sense for you. Good luck. Dont give up. Get specific with your targeted leads. Get creative.

@Takeshia Martin

Welcome to the BP family there is a lot of support here for your realesate endeavors.

Take the time to create a plan of action and no matter what you have to see it through don't over complicate it keep simple but effective.

You have time to change your situation 25yrs old is very young but its also the year of clarity so you see what needs to be done make it happen.

Good Luck..

there will always be frustrations in this field so don't let it get you down.   

You are doing the right things!!!!  Pat yourself on the back and say good job.  You have taken the first, and hardest, step---deciding RE is what you want to do.  You also took the 2nd step,  reseaching and learning--you found this websight . Finally you did something most people couldn't do---ask for help!!  You did the first and most difficult THREE steps!!! Great job, but don't stop.  You may not have money now but if you are devoted and save you will.  In the mean time try this. 1) read the book I started with (and read multiple times)--the complete guide to buying and selling apartment buildings by Steve berges. 2) take a Microsoft Excel class--you will be doing lots of spreadsheets 3) read as many of the posts on this websight as possible 4) consider becoming a RE agent--they know the deals when they come up, you can meet investors and learn from them and you can make money that you can use for your first deal

Whatever you do don't give up.  There are very few Donald Trumps out there.  I don't say that because I'm a big fan of the Donald. I'm not. I say that because his father was a very successful r.e. investor in his own right, starting at the age of 15 in partnership with his mother.  It's in his blood. All he had to do was not screw up.  And he's come close more than once.

Most of us BP'ers are like Brandon Turner who bought his first investment without a real understanding of both the potential and pitfalls.  By his own admission he was more lucky than smart starting out.   Or Lisa Phillips who had real, real bad luck starting out but has found herself a profitable niche shopping in the dollar store neighborhoods.

Successful real estate investing is about thinking not just in years, but in decades.  Even if it takes you five years to squirrel away enough for that first investment.  So what.  Whether you invest or not you'll still be thirty.  Keep your eyes open, read everything, talk to everyone, team up with a buddy, get yourself a girlfriend/wife/boyfriend (whoever floats your boat) that wants the same things that you do and pool your resources.  I have yet to find anyone on this site who says it's quick or easy.  But it is rewarding.  It can be financial independence and month long vacations. Eventually.

Listen.  I'm 54 and I'm just starting out too.  You look at the road ahead and think "it's too long". I look at the road behind me and wish I could travel it again.

Good luck. Jim

I'm 25 also. I think you have received great advice here. Never give up. You definitely won't achieve your goals if you do. Not everyone has it all figured out, but I think the important thing is to continue to learn and work towards you goals even if it's baby steps. Small progress is better than no progress.