Building Capital

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Building Capital

Nicole Rojas
Cromwell, CT · Member since 2015 · 18 posts · 7 votes

Hello BP,

My name is Nicole and I am currently a freshman college student (full time) in Massachusetts but I reside in Connecticut (during the summer). I am very interested in pursuing real estate as my career path in order for me to be able to serve others and build wealth along the way. I have spent hours watching YouTube videos, reading, listening to podcasts, and researching. I have certainly had the urge to just buy a membership to one those "gurus" real estate investing courses but I have never done it because I've always been skeptical about them. Being on Bigger Pockets has truly given me the opportunity to educate myself even further.

My ultimate goal is to earn $20,000 of passive income each month through buy and hold properties and to do a few fix and flips each year.

And with Real Estate one definitely needs capital to get started. I am fortunate enough to be on the path to graduate college debt free which is a very good thing. But I must admit that I am getting very antsy because all I want to do is get the ball rolling and get started. But I have realized that I do not have the capital, the experience, or the right connections to do so. Which takes me to a couple of my many questions:

1) I need money to get started. Would wholesaling be a good strategy to start with in order to build capital for my long term goals? if not, any other suggestions?

2) Should I attend both REI clubs in MA and CT? Even though I attend school here in MA.

I am truly just seeking for some guidance and any advice would be greatly appreciated. I am willing to listen, learn, and follow before I can get on my own two feet. I strongly look forward to any comments.

Thank you,

Nicole

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Brandon Gentile
Real Estate Agent/Investor · Clarkston, MI · Member since 2013 · 156 posts · 34 votes
10y

You guys are all on the right track. I would keep on this site and post OFTEN and make connections here then build them offline. I would also attend those meetings. Connections are the name of the game. Start looking for big people to shadow and work for them for free just so you can learn. The more you learn, the more you can create money. Then money doesn't become such a problem. Good luck!

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  • Jason Arcuri
    Real Estate Agent · Southbury, CT · Member since 2013 · 160 posts · 98 votes
    10y

    wow, what amazing goals.  Wholesaling is Good way to get started but takes a ton of work.  Doesn't really sound like that would be an issue for you though.  That's great you're going to graduate debt free, do you have any income at the moment?  Maybe look into doing an owner occupied multi family.  A percentage of the income should be counted towards your income and if you find a good deal you may be able to start making money now.  

    0Reply
  • Rick SantasierePro Member
    Real Estate Broker · Granby, CT · Member since 2015 · 694 posts · 317 votes
    10y

    Welcome @Nicole Rojas.  Congrats on taking the first step.  

    1.  I have not done any wholesaling before, so I can't speak to that.  If I were you, I would plan on living an extremely thrifty lifestyle and try your best to "live for free," and save any $$ you earn. If that's possible.

    2. Yes. Do some research though. I have heard there are some REI's that are "pitchy" and try to get you to buy "their systems."

    Listen to every podcast on BP you can, and devote an hour or two every day to reading article, blogs, and get some books that come recommended.  It makes no sense to spend $$ on guru's when you can get ALL the information you would get from those programs, right here for free.  But, as with anything, you will only get out of this what you are willing to put in.  At your age, the sky is the limit..  Start now, and learn all you can, and you will be a success.  Just don't give up, and always keep learning.  There are so many different avenues where you can get involved in.  A suggestion could be for you to go to work part time for a property manager or larger investor and just do the grunt work.  Doing that would pay off in the future, because you would learn the business as you take on new job functions and build some credibility.  Good luck to you!!

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Jason Arcuri

    Jason, your advice is very much appreciated!

    I do not have any income at the moment being that basketball is essentially paying for my schooling but I do work over the summer. 

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Rick Santasiere Thank you so much!

    0Reply
  • Roberto Escapita Jr
    El Paso, TX · Member since 2016 · 26 posts · 6 votes
    10y
    Welcome Nicole! I'm a newbie as well. I haven't made my first deal yet and feel as anxious just like you. But rather than be rash, I've dedicated more than 4 hrs a day familiarizing and fully immersing myself. As I've gathered all my information, I'm getting closer to what my spirit is guiding me to; most likely buy and hold. Just keep searching. Be quick but not in a hurry. Very Respectfully, Robert.
    1Reply
  • Brandon Gentile
    Real Estate Agent/Investor · Clarkston, MI · Member since 2013 · 156 posts · 34 votes
    10y

    You guys are all on the right track. I would keep on this site and post OFTEN and make connections here then build them offline. I would also attend those meetings. Connections are the name of the game. Start looking for big people to shadow and work for them for free just so you can learn. The more you learn, the more you can create money. Then money doesn't become such a problem. Good luck!

    2Reply
  • Richard Beatty
    Boston, MA · Member since 2012 · 100 posts · 54 votes
    10y

    Be sure to look at first time homebuying programs that help you with down payment and or closing clost. Boston Home Center is a great program I went through and definitely helped out with the down payment.Check it out!

    1Reply
  • David Senna
    Rental Property Investor · Coventry, CT · Member since 2016 · 27 posts · 9 votes
    10y

    Nicole,

    So far I like the advice you have been given.  Since you have little to no money, you could do birddogging which is similar to wholesaling but you do not put the property under contract. It's more or less telling someone able a deal. You can youtube it for more info. As far as the questions about going to the meetings, I found they are always trying to sell you something. It got so annoying, I do not go anymore. Instead I attend meetups and meet with local Investors in Manchester every month. That's where I would suggest going to start off. Our next one is 2/6 if interested.

    1Reply
  • Francisco Feliz
    Boston, MA · Member since 2015 · 93 posts · 32 votes
    10y

    I gotta commend you, @Nicole Rojas. Your initiative and vision for such a young age is a great trait to have that can carry you throughout your career, whatever it may be. PM me and I can speak to you about some options you may have, but one of them will most likely be partnering up with a local investor where you bring the deal and that investor provides the capital.

    1Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Roberto Escapita Jr

    Roberto,

    Thank you for your advice! The best of luck completing your very first deal! Stay in touch, let me know how things are working out for you.

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Brandon Gentile

    Brandon,

    I appreciate you assuring us (newbies) that we are on the right track! "Connections are the name of the game" well said!

    take care,

    Nicole

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Richard Beatty

    Richard,

    I will look into it! Thank you for sharing.

    Best of luck,

    Nicole

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y
    Originally posted by @Nicole Rojas:

    @Jason Arcuri

    Jason, your advice is very much appreciated!

    I do not have any income at the moment being that basketball is essentially paying for my schooling but I do work over the summer. 

     How much of that money that you made over the summer were you able to save? My gut tells me that your first order of business is to graduate with your degree - hopefully a degree for a field that you enjoy and that pays well - and stash every dollar possible when you do have opportunity to work. Be aware that will force you to make choices that your friends may not want to make - they are going to blow a grand on spring break, you are going to work at Papa's Pizza Shop and pocket a few hundred bucks. As an example. 

    There is a time for everything, and right now may not be the best time for you to worry about REI.

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    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @David Senna

    David,

    Your advice and invitation is very much appreciated! I will not be around the Manchester area February 6th but would be greatly interested in attending a meet up that will be held at a future date. Maybe around the summer time!

    Thank you,

    Nicole

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @JD Martin

    JD,

    Thank you for sharing your thoughts!

    Nicole

    0Reply
  • Jason Roberts
    Flipper/Rehabber · Palm Coast, FL · Member since 2015 · 101 posts · 25 votes
    10y
    Originally posted by @Nicole Rojas:

    Hello BP,

    My name is Nicole and I am currently a freshman college student (full time) in Massachusetts but I reside in Connecticut (during the summer). I am very interested in pursuing real estate as my career path in order for me to be able to serve others and build wealth along the way. I have spent hours watching YouTube videos, reading, listening to podcasts, and researching. I have certainly had the urge to just buy a membership to one those "gurus" real estate investing courses but I have never done it because I've always been skeptical about them. Being on Bigger Pockets has truly given me the opportunity to educate myself even further.

    My ultimate goal is to earn $20,000 of passive income each month through buy and hold properties and to do a few fix and flips each year.

    And with Real Estate one definitely needs capital to get started. I am fortunate enough to be on the path to graduate college debt free which is a very good thing. But I must admit that I am getting very antsy because all I want to do is get the ball rolling and get started. But I have realized that I do not have the capital, the experience, or the right connections to do so. Which takes me to a couple of my many questions:

    1) I need money to get started. Would wholesaling be a good strategy to start with in order to build capital for my long term goals? if not, any other suggestions?

    2) Should I attend both REI clubs in MA and CT? Even though I attend school here in MA.

    I am truly just seeking for some guidance and any advice would be greatly appreciated. I am willing to listen, learn, and follow before I can get on my own two feet. I strongly look forward to any comments.

    Thank you,

    Nicole

     More college kids should think like you Nicole!! Real estate will make you a multi millionaire! Work hard and don't quit!

    1Reply
  • Jason V.
    Investor · Rochester, NY · Member since 2016 · 477 posts · 426 votes
    10y

    @Nicole Rojas I can only echo what everyone here has said: you have awesome goals, and are a very impressive young lady. 

    One thing you might consider: find a local investor in your investment area who is successful and offer to volunteer (or work cheaply) for them. This will give you a front row seat in the business, get you some awesome contacts, and allow you to understand deals from start to finish, without having to put your own money on the line. Think of it as an REI internship. Then, when it comes time for you to start making your deals, you already know who you're going to call for financing, insurance, rehab, lawyers, agents, or anything else your niche might need.

    Also - something that is very underrated in the REI community (or maybe not) is the massive advantage (at least in the early stages of investment) of having a full-time job with good income. Live frugally, stay out of personal debt (save that new Mercedes for a couple of decades from now) and invest when all of your friends are blowing it all on "the American Debt Dream."

    1Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    10y
    Originally posted by @Jason Arcuri:

    wow, what amazing goals.  Wholesaling is Good way to get started but takes a ton of work.  Doesn't really sound like that would be an issue for you though.  That's great you're going to graduate debt free, do you have any income at the moment?  Maybe look into doing an owner occupied multi family.  A percentage of the income should be counted towards your income and if you find a good deal you may be able to start making money now.  

     Hey Jason, (and sorry for budding in Nicole). You said Wholesaling is a ton of work.

    Are other niches less work? Can you elaborate on that please? I am also starting and Like Nicole, the reason I am doing Wholesaling is because I don't really feel comfortable doing deals with other peoples money. I rather not deal with that. Hence I opted for wholesaling.

    So as you can see I am very curious what you mean with it being a lot of work.

    Cheers.

    0Reply
  • Chris Reitzel
    San Diego, CA · Member since 2015 · 22 posts · 8 votes
    10y

    @Nicole Rojas, something Ben Leybovich has said, is to think of your end goal. If your end goal is passive income through buy and hold, why not start today?

    I think the message is that starting out doing wholesale may give you starting capital after a couple deals, but keep in mind that a chunk of that money goes back into your next wholesale and ultimately is just putting off your goal of getting into building your buy and hold portfolio.

    Maybe try to look into creative ways to finance a deal rather than how to quickly obtain starting capital to make your first deal - because by the time you have raised enough capital to start your buy and hold, you could have used less time to creatively finance a good deal.

    If you find a deal to wholesale, and the deal is good enough to legitimately wholesale to another investor, it is likely going to be good enough for someone who has private money, to help you acquire the property for yourself and start achieving your goal now and not later.

    Food for thought. Being a good wholesaler is a lot of work, and it requires you to know a lot of stuff.

    Heck, if your relationships are good enough, you could find a deal from a wholesaler who has done all the legwork, and a private lender may see enough in your to finance the deal and you cut out the hassle of having to put in all the income and legwork in finding the deal.

    Networking is the single most important thing if you are aiming for the long game - for both you, and those who decide to network with you.

    0Reply
  • Bruce Shilander
    Real Estate Agent · Port Saint Lucie, FL · Member since 2014 · 3 posts · 1 vote
    10y

    you are off to a great start because of your mindset, and your realistic view of where you are in the process... you will do well, you will succeed!

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Jason Roberts

    Jason,

    Thank you! I do aspire to separate myself from the crowd. (:

    Nicole

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Jason V.

    Jason,

    I highly appreciate the amount of advice and ideas that you have shared with me!

    Thank you,

    Nicole

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Chris Reitzel

    Chris,

    Wow! I didn't think of starting off my career in that way. I will do further research in financing deals creatively!

    Thank you,

    Nicole

    0Reply
  • Nicole Rojas
    OP
    Cromwell, CT · Member since 2015 · 18 posts · 7 votes
    10y

    @Bruce Shilander

    Bruce,

    Thank you for such positive advice!

    Nicole

    0Reply
  • Account Closed
    Investor · Bossier City, LA · Member since 2015 · 55 posts · 21 votes
    10y

    Nicole,

    I think you should definitely look into a 3- or 4-plez and see what you need to get qualified for FHA or other low-down loan. That is an easy way to get started because it requires essentially no cash out if pocket, and with rentals attached, you almost immediately seeing income. Depending on the location, property size, amenities, etc., you can probably "live for free," meaning they pay all your house bills. Once you have that, you can show income (since they're paying you) and you can use that towards additional properties. Also, once you have one or two good deals under your belt, you're much more likely to find investors willing to partner up with you, which can be a FANTASTIC source of cash. That'll allow you to use their money, not yours, to use as down payments/rehab costs, etc.

    On another subject, where are you going to school? I went to WPI in Worcester ("Wustah"). 

    Good luck! P.S. Massachusetts is on my "to invest" list... want to buy some rentals up there at some point.

    1Reply
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