20 year old starting out in Real Estate investing NEED advice

6 Replies

Hello guys I'm 20 years old and want to build up wealth investing in real estate. From what I've read about the process it really intrigues me. I currently have $300 dollars in savings but with my new job I'll be putting about $800 a month in savings. I plan to start school next semester in August, and in March I will be going on a three month mission trip. So I have some pretty big things coming up in my life. But this doesn't effect my drive to want to start my investing career now. I'm a very drivin, and business savvy individual and beyond my years in knowledge about finances and investing. So here are my questions.

How much money do I need to start an investment? And with the mission trip and school coming up would it be smart to start now? Or should I practice patience?

Also how will I know I'm ready and knowledgeable enough to make my first deal?

Lastly how do you find the estate you want to invest in?

Any wisdom from an experienced investor would be greatly appreciated

Personally, I only picked up on real estate investing in college. If you've already learned that REI is a way to build wealth and haven't dug the student loan hole of debt, I'd pass on the fancy piece of paper for now.(it should make getting mortgages/loans easier because you will have a lower DTI). Spend the time and money on networking and building a business. You might consider becoming a real estate agent for a bit (residential with a focus on investments or commercial with a focus on apartments.) or finding a rehabber or general contractor to learn what is involved in maintaining a property. Work as a leasing agent to see if you like working with tenants (you'll become exposed to fair housing and regulations about what you can and cannot advertise/say). With regard to your current personal cash flow, $300 in savings and $800 coming in won't cover a water heater busting, AC craping out, pipe busting, anything roof or structure related. At best, it might cover an appliance. I feel like this dilemma that you are facing is the premise of Rich Dad, Poor Dad. Go rent it from the library and read it (or get the audio book) one weekend to see which dad you identify with. Best of luck.

@Drake Bigley  You do have some big things coming up. Concentrate on those, and then once you're past that, begin on real estate. The mission trip will probably give you a whole new perspective on things. 

Do a search and see if there are any meetup groups of BP members in San Antonio. Also, have you listened to the podcasts read some of the Blogs or read the Ultimate Beginner's Guide

Also, start getting to know your local market. There are all different types of properties, from mobile homes, condos, small houses,  etc. that are good for entry level investors. 

Good luck! 

@Drake Bigley

Here are links to some of the MeetUps - 

@Chad Clanton hosts one coming up next Tuesday. Here is the link: San Antonio Real Estate Investors' Discussion Group - July 7

San Antonio Real Estate Investment Association

http://www.sareia.com/

Alamo Real Estate Investors Association
http://alamoreia.org/

Real Estate Investment Association - San Antonio
http://sanantoniorenc.com/

SA Cash Buyers - Thirsty Thursdays
http://sacashbuyers.com/

@Drake Bigley, welcome to BP! I can't speak to the whole being an "experienced investor" bit, but I'll throw out my .02. First, definitely start learning (BP Podcasts, Blogs, etc as Karen mentioned). Second, don't jump in feet first, then do your mission trip, then come back excepting to pick right back up. Instead, I'd say set some learning goals from now until the time your trip is over. Third, and I'm very admittedly biased, I agree with Cameron. 

I did the Army, did college when I got out while working full-time (got lucky on the GI Bill side there), got 3 classes away from my Associates and concurrently 2/3 finished with my Bachelors, decided what I was studying was a waste around the same time I discovered REI (not because of that discovery, mind you), and dropped it. My wife racked up nearly doctor-level debt going to pharmacy school, worked as a pharmacist for a few years, and we decided it wasn't worth the 120-130 hour combined work week every single week just so we could pay the equivalent of my entire pretty decent salary in taxes. So, we took a different road, and now we're doing REI and related business full time. I'm pretty sure most here would think we're crazy, but as the saying around here goes, "life wasn't meant to be lived in a cubicle". It just wasn't worth it, so we took a calculated risk. There's a reason my company logo is a parachute; so far it's always opened. Learn how it works, keep the faith, and jump.

Whatever you want, make it happen. Feel free to look me up if I can help with anything; also, we're having a little get together next week, check it out over in the Events and Happenings forum. San Antonio Real Estate Investors' Discussion Group. Either way, good luck and never be afraid to reach out.

@Drake Bigley I can relate to you in some ways. I am a couple years out of college and just began my REI adventure. I have spent the last couple months listening, learning, and connecting with RE professionals.

The best advice I can give is to sit down and write out a plan for your future. What is it that you want to do 5, 10, 30 years from now, and how do you intend to get there? 

If you take out a loan to go to school, you will have to pay that money back with interest. Will that piece of paper put you in a position to live the lifestyle that matches your long term goals? 

To answer your other question, you can start with little money, but just realize it will take you longer to get to wherever it is you want to go.