Building Capital

Starting Out
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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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  • Courtney Merricks
    Investor · Fort Lauderdale, FL · Member since 2015 · 172 posts · 30 votes
    10y

    @Nicole Rojasyou are definitely on the right track... First and foremost, way to take advantage of your opportunity by having your talent pay for you to go to school. To many of our young people miss out on to many opportunities. Here is an opportunity for you to further take advantage of your goals and dreams. As many have already stated, this is a great time and the age you are to get started in REI. Just don't be afraid to take ACTION... That is the one thing that has really stuck with me since I made the comment to start investing. Purchasing a multi-family property would be a great way for you to start out. Keep learning, ask plenty of questions and find a great mentor... You will be just fine.

    1Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    10y

    @Nicole Rojas Always great seeing other Central CT people on the forums.

    My advice:

    1. start reading anything on the topic of real estate that you can and ask questions here on BP or look to past threads/blog posts/podcasts when your reading triggers questions.

    2. Save your money as you work through college and when you land that first job out of school and if possible live below your means as a way to save money.

    3. When you graduate and decide where you want to live (Connecticut? Massachusetts?) start learning everything you can about the local market you reside in. A great way to do this is to reach out to people here on BP who are from the area you want to invest and to reach out to local agents who are experts.

    4. Once you have zeroed in on a strategy, area, and have a little bit of money I recommend starting out your investing career in an owner occupied multi-family and take advantage of being able to live somewhere for 3-5% down and have your tenants pay most of if not all of your mortgage.  If you do not like the idea of living with tenants there are other strategies you can explore as well.

    Best of luck and if you end up coming back to the Hartford area to live when you get out of school and have any questions about the local market do not hesitate reaching out.

    1Reply
  • Charles Terrizzi
    Jacksonville, FL · Member since 2015 · 60 posts · 15 votes
    10y

    Since you are young, you could use the higher risk methods of building working capital.....crime spree.....not for the faint hearted. 

    It's simple really, buy any cheap, scary looking gun, it doesn't even have to work and wala....you're in business. This is the ultimate use of other people's money. Talk about easy leverage. With this method and some luck, you will have working capital within hours.

    And if the local authorities do stop you, you still will be relatively young when you are released. Hope this helps. ;)

    1Reply
  • Account Closed
    Real Estate Professional · Dayton, OH · Member since 2015 · 423 posts · 187 votes
    10y

    Wholesaling is a full-time J O B if you want to make any money at it.  You already have a job.  It's called being a student.

    A better way for you to start is bird dogging for the dominant wholesaler in your market.  You will learn and earn with minimal amount of intrusion into your schedule.

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

    @Account Closed

    Austin,

    I really love the idea of purchasing a 3-4 plex I definitely will be looking to add that to my portfolio.

    Nice to hear that you are a former student from MA, I have a friend that attends WPI! and I am at Stonehill College.

    Thank you for your advice Austin,

    Nicole

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

    @Courtney Merricks

    Courtney,

    Yes, without action dreams just remain as dreams! Thank you for your advice.

    Nicole

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

    @Michael Noto

    Michael,

    Wow! Thank you for sharing a great amount of advice with me. I will certainly keep learning, saving money, and take action. I appreciate you giving me the opportunity for me to reach out if I decide to move back to the Hartford area.

    Thank you,

    Nicole

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

    @Account Closed

    Rod,

    Thank you for the advice!

    Nicole

    1Reply
  • Ryan Donohue
    Real Estate Agent · Ridgewood, NJ · Member since 2015 · 114 posts · 43 votes
    10y

    @Nicole Rojas Congrats on making the early decision in doing REI. Although I'm only 25 myself, I still regret not knowing the possibilities earlier. I got my first spark of interest in REI around this past Thanksgiving and educate myself every second I can. I'm currently in the midst of what might be a killer deal(short sale) and would love to tell you more about how I got it(feel free to message me). At this point this is my opinion on your 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?

    So far I have not spent money on anything besides gas and buying a domain name($20) which I wanted to lock in for the future for my site.  My recommendation is do some driving for dollars when you have a good chunk of time and take pictures and write down addresses of crappy looking or vacant houses. Then I'd look up the owner and try to find their phone number online and cold call them. What have you got to loose right? No money and direct answers.  

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

    I recommend both. In my opinion have these in mind BEFORE you go: what do you want to do(wholesale, fix n flip etc), where do you want to, some out of the box advice you can provide others you might want to partner with.  You want it to be a win-win and gain peoples attention when you go and if you tell them something that might help that they've never thought of they'll be more inclined to help.  I've been to 2 so far and working on my short sale with the guy who runs my REIA.  Please feel free to reach out to myself or anyone on here in regards to REIA meetings and what to expect. 

    Good luck @Nicole Rojas with the remainder of school and your REI business. You got this! See ya around the forums!

    2Reply
  • Jason Arcuri
    Real Estate Agent · Southbury, CT · Member since 2013 · 160 posts · 98 votes
    10y
    Originally posted by @Jerryll Noorden:
    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.

     Thanks for reaching out, definitely something I should have clarified more.  Wholesaling is much more for an ambitious person who really doesn't mind calling, mailing, researching, etc.  It's a numbers game where you have to reach out to a lot of people to try and get amazing deals that make sense for you to make money on by selling to an investor that has the money.  I'd personally rather buy from a wholesaler and give them that 5k or 10k just for finding a great deal because I don't have or want to put the time into saving that money when I can manage a flip.  Being a landlord in my opinion is the easiest way of making money.  If you get an owner occupied property, you can get paid to live there and if you really want to make money, take on a roommate.  I averaged about 2 hours a month per each property I owned when I first started out.  If you take the total rent and divide that by the 2 hours, your hourly rate is through  the roof.  Now I pay people to manage them and I average an hour a month for all my properties.  

    By no means am I discounting being a wholesaler.  I have the utmost respect for them and the work that they put into it.  Just make sure you are going to be in for the long haul because you are putting a lot of time and effort into it.

    I hope this clarifies my point of view a bit.

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

     Thanks for reaching out, definitely something I should have clarified more.  Wholesaling is much more for an ambitious person who really doesn't mind calling, mailing, researching, etc.  It's a numbers game where you have to reach out to a lot of people to try and get amazing deals that make sense for you to make money on by selling to an investor that has the money.  I'd personally rather buy from a wholesaler and give them that 5k or 10k just for finding a great deal because I don't have or want to put the time into saving that money when I can manage a flip.  Being a landlord in my opinion is the easiest way of making money.  If you get an owner occupied property, you can get paid to live there and if you really want to make money, take on a roommate.  I averaged about 2 hours a month per each property I owned when I first started out.  If you take the total rent and divide that by the 2 hours, your hourly rate is through  the roof.  Now I pay people to manage them and I average an hour a month for all my properties.  

    By no means am I discounting being a wholesaler.  I have the utmost respect for them and the work that they put into it.  Just make sure you are going to be in for the long haul because you are putting a lot of time and effort into it.

    I hope this clarifies my point of view a bit.

     Thank you kind sir!

    You know what the funny thing is? Before I dove into this whole real estate investing thing. I always thought the "lots of work" was standard for all you do. So that to me was "normal". I didn't know about having others do the work for you so you can just do the "fun" stuff. The benefit of this is, my mind has already been set and preprogrammed  to "lots of work" as a default. Like Nicole and many others.. I do not have capital to buy my house (without using OPM). So I also saw WS accurately or not, as the best way to start. 

    I do clearly see your point now though, now that I know a bit more. Thank you for explaining! Man I hoe you keep posting your insights on here. They are truly helpful!

    1Reply
  • Dan Vleck
    Deerwood, MN · Member since 2014 · 184 posts · 122 votes
    10y

    Please keep in mind that you will likely need a good job in order to build a solid portfolio.  They look at debt to income.  So, focus on your studies. Remember that you are fortunate to get that education.  Work hard and earn a solid income,  it will help you build that big rental portfolio. 

    0Reply
  • Gabrielle E.
    Flipper/Rehabber · Richmond, VA · Member since 2014 · 184 posts · 40 votes
    10y

    Hey there! I would suggest you read "The Book on Investing in Real Estate with No and Low Money Down" by Brandon Turner. It breaks down strategies on how to obtain properties without much money out of your own pocket. Educate yourself on all the strategies to see what could work for you in the near future.

    If I were you, I would meet other investors in the area. You could do some work for investors, get your experience up, and open doors for opportunities.

    0Reply
  • Brandon Gentile
    Real Estate Agent/Investor · Clarkston, MI · Member since 2013 · 156 posts · 34 votes
    10y

    Not what you know, its who you know!

    Who you know can take care of what you don't know..

    ;)

    0Reply
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