Young and Ready to Invest in RE

13 Replies

Hello Bigger Pockets members. I've just recently found about the site and I love what I have seen so far. I'm hoping I can add value to as many fellow members as I can as well as soak up as much as I can.

I think I have a bit of a unique situation and would like some advice from anyone who thinks they can help. Let me explain my situation:

I am currently entering my junior in college. I live in the Chicagoland area (Northwest Indiana) and go to school in central Indiana (about 1.5 hours north of Indianapolis). I've had to make the difficult decision to go to and stay in college. Multiple times throughout my past 2 years I have seriously considered dropping out, but I continue to fall back on the idea that I have my entire life to work. I love hanging out with my friends and teammates. Most would agree college is a great time to enjoy life with little responsibility. Knowing I wouldn't "get ahead" by going to college, I know I have to do it on my own (and with a community like this). I never intend on working for someone again. My goal/dream is to be able to have income streams that don't require my time to make me money. With that money I want to do all I can to better this world with companies and organizations that make a huge impact in the world. 

Shortly after my freshmen year started an internet company that has had some steady returns for me. I have put very little time into the business. About halfway through my sophomore year I started another company that branches off business #1. I have a great partner, but the time has come where a decision has to be made. Because I'm in college (and he's not), I'm not able to put the time in the business that is needed. To be brief, my partner is buying me out very soon. With this, I am going to have a pretty large sum of cash coming in for the next 10 months or so.

There are a variety of different ideas I've had to invest the money. I am going to first save what I need to save to pay off my future college expenses. Next I will invest some of the money in business #1 to get that ramping up. There is a lot of potential there. With the profits of business #1, I will look to invest in cash flowing assets. 

I know that I want to get into real estate. I'm not 100% sure what my 'niche' will be, but I'm going to do it. Here are some of my thoughts:

1) Try to pick up a single family home or a 2-4 unit apartment building near my college campus. I'll manage it myself and try to learn the ropes. I could also try to keep it automated and hire a property management company. Keep in mind I'm 21. I'm assuming I could get the mortgage given my past income and all, but maybe not. I haven't looked into the difficulty in getting a mortgage. I would have about 50k cash to start investing.

If I go this route, I'd like to quickly get a couple more properties to start building a larger portfolio. I'm quite aggressive and happy to 'risk it'.

2) Invest it into something less 'risky' or time consuming like notes, stocks, etc. I know their are REIT's out there so maybe that's a better move for me? I don't want to swamp myself with stuff to do every day. I'm going to college to enjoy it, not to just work the entire time and be stressed out. If I invest in something that requires a ton of my time, I might as well drop out (which I'm not ready to do at this time). 

3) I have another potential opportunity/business that I'm seriously considering if I can find a nice warehouse space. It really interests me because I could hire some of my college peers to help me out and make some money for themselves. I know this would require quite a bit of my time, but it would be a great way to learn a TON about running a large operation as well as make me some good money. I have some contacts who are pretty experienced in the area who could help me get going with the initial challenges. It also is related to businesses #1 and my current contacts for that business could become clients.

I hope that sums my situation up fairly nicely. Ultimately I want to create something that I can jump "all in" if/when I graduate college. 

Any and all advice is much appreciated! Feel free to ask me any questions if I was unclear at any point. 

Make someone smile today :)

Have a good one

Jordan 

First off, Welcome to BP @Jordan Dekker . This place is filled with people willing to help anybody but probably even more so someone so entrepreneurial as yourself. I'm from LA but continue to invest in Indianapolis, it's a great market. 

I'm really new to this still so I don't have tons of insight but you're in the right place to learn.  

Good Luck.

Hey @Jeb Brilliant ! Thanks so much for the comment.

Indy is a great city! I think it's going to be a great market for awhile. I have a professor who is a Real Estate investor in Indy. This fall I plan on getting in contact with him. Hopefully I can get some good advice that can help us all out.

Good luck to yourself as well! Expect a message from me in the future :)

Jordan

Welcome to the family!  My path was very much like yours.  I actually quit school and decided to go it on my own as well.  I didn't have the stability that it sounds like you do but I never looked back.  Feel free to connect with me as I might have some useful info and opportunities for you to consider.

Love your enthusiasm @Jordan Dekker ! It's awesome you are thinking in depth of your future. 

Best time they say to experiment is in college!

Im born&raised in Indy and build up some knowledge in the RE field so if you have any questions don't hesitate to shoot me a DM

@Jordan Dekker Welcome to BP and congrats on the early successes you've had in life. It sounds like you have a great mindset that would match with @Sterling White's line of thinking, so he may be a good contact.

Good luck as you progress and if you need help identifying good areas to look at in Indy I can be of help.

@Jordan Dekker - Welcome to BP! I am an investor who invests in both in Northwest Indiana and Indianapolis areas. I tend to find that the ROIs are better in NWI. Good areas for SFRs for you to start would be Cedar Lake. If you need more assistance hit me up! BTW what school and major are you doing?

Haha awesome! Thanks @Rodney Kuhl ! Sterling actually commented on this post earlier and I have gotten in contact with him. I will definitely take you up on your offer once I devise a plan on where I want to head! Thanks again for taking the time to offer your assistance. Please let me know if I can ever be of any assistance to you.

Hey @Jim C. ! Thanks for your time and willingness to help me out. I was actually just out on Cedar Lake yesterday :) I'm going to connect with you right now. Also, my major is Entrepreneurship and I go to Indiana Wesleyan University. 

@Jordan Dekker Welcome to BP!  You sound like a younger version of myself!  I too went through college with the same dilemma:  "I am making more money in my business then the people teaching me so why am I here?"  Now that I've grown through that phase and am full time in the "real world" I reflect upon that time in my life often.  I went to a commuter college while nearly all of my friends were at larger universities.  I was working full time and attending school full time.  I went into each day of class with this mindset; While sitting in class, I was always thinking "I should be working...why am I here", while as work my mindset was always "I want to be at school so I can graduate and try something new".  Anyhow, reading your post resonated with me.  If you find yourself needing someone to discuss what you're wrestling with feel free to reach out to me.  Best of luck in all that you do!  

@Jordan Dekker

Welcome to BP! You have big dreams and great enthusiasm at an early age. I am pretty sure you will be successful in the future. Stay focused. Biggerpockests has ton of information on real estate investing for you to explore and to network with like minded people. Goodluck and enjoy what you are doing!

Welcome to BP!  Keep up the attitude and work with what you enjoy doing.  Find a mentor and take time to learn as much as you can.  Then jump in!  Taking action is the best way to learn.

Welcome @Jordan Dekker !

All good advice above.

I like option #1.

- it's always good to see another Hoosier utilizing this great site!

Of course, you need to read The Ultimate Beginners Guide to REI here on BP

If you haven’t already, please read/listen to these books ASAP!

Flip2freedom episode 77[http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/] - podcast - LISTEN TO THIS TODAY!

Rich Dad Poor Dad

Rich Dads Cash Flow Quadrant

Rich Dads Increase your financial IQ

The Real Book of Real Estate

The ABC’s of RE Investing

The ABC’s of PM

Rich Dad RE Tax Advantages

The 10X Rule

The E-Myth

The 4 Hour Work Week

BiggerPocketsPodCast

Wholesaling101 You Tube Channel

Kent Clothier – You Tube Memphs Invest channel

Thanks @Derek Gendig ! It is nice to no know someone who has experienced what I'm currently experiencing. Don't be surprised if you get a message from me in the future when I'm struggling to stay in school :) 

Thanks for the encouragement @Arnell Enriquez and @Dan Perrott ! It really is appreciated.

Woah @Shawn Holsapple ! Book crazy but I love it! I've already got a stack of books I need to get through, but many of those on the list will be next as I start my real estate ventures. I will take note for sure :)

@Jordan Dekker

Welcome to the Bigger Pockets community. It is a great place to learn about real estate.

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