Advice on starting into real estate investment at an early age

28 Replies

Hi 

I am Navya Raput and I am a graduate from Carnegie Mellon University. I have a strong interest in real estate investment. I have even read books on the same topic. Most of the books tell you about the strategy on buying and analyzing the property but none tells you about how to get into this type of investment. For a new college grad like me, I have limited money to spend and so the biggest question is - "Is there a possibility for me to start to invest right away? OR should I accrue enough to buy my first property first and then pace up my investment in properties?

Thank you :)

Regards

Navya

HI Navya i am new to the real estate investment game as well and also young(22). I have been looking at the fourms for a few weeks now and joined yesterday. I cant provide any help to your situation besides that you can always start now in a way or form. Saving money for a down payment, knowledge and most of all your life and attitude so you are always pushing yourself so when that time comes you are ready. anyway i just saying hi because we are not very far away and hopefully run into each other in the future making deals with our own investments. 

Have fun 

Hi Navya! First step is to read @Brandon Turner book on no and low money down investing. I would highly suggest going to local real estate investment meetings to start. Find the people there that are doing a bunch of deals and offer to partner with them. Most investors will go 50/50 with you on a deal and provide 100% funding for project where numbers make sense.

Inspiration: I am 25 and have been able to secure 5 properties so far and looking to add more asap. Creative financing and confidence is key.

@Navya Rajput   first thing a smart kid like you should do is get a RE license in your state even if you never use it.. but if you do it will help you earn while you learn...

there is a progression I RE and selling it usually leads to investing in it and being successful.

now if your not going to think of it as a career then just doing it part time so you have MLS access in my mind will pay for itself over time.

Hi Navya,

  Graduating from CMU is not something to squander! Are you an engineer? My opinion (maybe not typical for BP) would be to get a corporate/techie job and start dumping money into a 401(k).  Live below your means (student lifestyle with a corporate salary) and save up for a down payment.   (Note that a 401(k) might be useable for a down payment.)

When you are ready to buy, then think about getting a house and renting out rooms to friends or co-workers. Or do a duplex if that works.

Just remember that a good W2 income and low personal  expenses is a HUGE advantage that many other beginning real estate investors don't have.

(OTOH, if you were a philosophy major, please ignore... )

Originally posted by @Navya Rajput :

Hi 

I am Navya Raput and I am a graduate from Carnegie Mellon University. I have a strong interest in real estate investment. I have even read books on the same topic. Most of the books tell you about the strategy on buying and analyzing the property but none tells you about how to get into this type of investment. For a new college grad like me, I have limited money to spend and so the biggest question is - "Is there a possibility for me to start to invest right away? OR should I accrue enough to buy my first property first and then pace up my investment in properties?

Thank you :)

Regards

Navya

 Start yesterday!!

Originally posted by @Matthew Kelsey :

Hi Navya! First step is to read @Brandon Turner book on no and low money down investing. I would highly suggest going to local real estate investment meetings to start. Find the people there that are doing a bunch of deals and offer to partner with them. Most investors will go 50/50 with you on a deal and provide 100% funding for project where numbers make sense.

Inspiration: I am 25 and have been able to secure 5 properties so far and looking to add more asap. Creative financing and confidence is key.

 Hi Mathhew

Thank you so much for the advice. I will definitely read the book. 

Is there a specific website to find local real estate investment meetings ? Are there any eligibility criteria for attending these meetings?

Originally posted by @Jay Hinrichs :

@Navya Rajput  first thing a smart kid like you should do is get a RE license in your state even if you never use it.. but if you do it will help you earn while you learn...

there is a progression I RE and selling it usually leads to investing in it and being successful.

now if your not going to think of it as a career then just doing it part time so you have MLS access in my mind will pay for itself over time.

 Hi Jeff

Thank you so much for responding. 

I am an international student and still under the process of acquiring my EAD( Employment Authorization), SSN and other docs. Are there any prerequisites for RE license?

Thank you :)

Regards

Navya 

Originally posted by @Jeff S. :

Hi Navya,

  Graduating from CMU is not something to squander! Are you an engineer? My opinion (maybe not typical for BP) would be to get a corporate/techie job and start dumping money into a 401(k).  Live below your means (student lifestyle with a corporate salary) and save up for a down payment.   (Note that a 401(k) might be useable for a down payment.)

When you are ready to buy, then think about getting a house and renting out rooms to friends or co-workers. Or do a duplex if that works.

Just remember that a good W2 income and low personal  expenses is a HUGE advantage that many other beginning real estate investors don't have.

(OTOH, if you were a philosophy major, please ignore... )

 Hi Jeff 

Thank you so much for the advice.

Yes I am an engineer and will be starting my job from last week of this month. I have heard that I cannot cash in the money I dump to 401(k) until I am 70 or 75? If that's the case then how exactly can I use the 401(k) money as my down payment?

I will definitely try to save as much as I can.

Thank you :)

Regards

Navya

Start now, don't wait, my son started investing when he was 16 years old, he made $3,000 on his first assignment transaction. He hasn't had a real job since, he is now 39 years old and invest in bigger and more profitable transactions.

Learn how to invest creatively while using high leverage and understand the concepts of selling real estate you control (not own). When you can do this, you too will never work for another.

Good luck

Hey @Navya Rajput ,

I am actually in your same position right now. I am 24 years old and a recent college graduate, now engineer, wanting to get into real estate. I wouldn't want to call this advice but I can tell you my plans for making my first investment... First, I paid off all of my student loans so I could become debt free and reduce my risk for my financial situation and start saving. Once I have enough capital saved up I will purchase my first buy and hold and go from there. Hoping to have first purchase within the next 6 to 8 months!

Good luck to your future endeavors and new career my friend!

-JJ

Originally posted by Charles Parrish:

Start now, don't wait, my son started investing when he was 16 years old, he made $3,000 on his first assignment transaction. He hasn't had a real job since, he is now 39 years old and invest in bigger and more profitable transactions.

Learn how to invest creatively while using high leverage and understand the concepts of selling real estate you control (not own). When you can do this, you too will never work for another.

Good luck

 Hi Charles Parrish

Thank you so much for replying. I will definitely try to start as soon as possible.

Originally posted by @Mark Nolan :

@Navya Rajput

Consider opening a ROTH IRA and then investing into real estate as the gains will grow tax free.

 Hi @Mark Nolan:

As far as I know ROTH is a kind of 401k plan. And correct me if I am wrong, we cannot cash in the money from a 401k until the age of 70 or 75 years. Are you talking about some other kind of ROTH?

Thank you :)

Originally posted by @Mark Nolan :

@Navya Rajput

You can cash out a Roth 401k tax and penalty free once you have had it both for at least 5 years and are age 59 1/2 or older.

 @Mark Nolan:

Thank you so much for the information.

Thank you :)