New Member from Central Pennsylvania

3 Replies

Hello, I've been following the BiggerPockets thread for a week or so now and there is so much useful information and advice here. I'm 19 years old and still a student in college, but I'm eager to get started in Real Estate Investing. I would like to invest primarily with cash as it may be hard to get a loan because I don't have a steady income through a full time job. However I will be working over the summer and bartending during my next semester to continue to raise money.

My question to the people, what steps should i pursue to make sure that i'm choosing the right type of investing? when it comes to investing with cash, what is the best method? flipping, wholesaling, buy and hold? I could use some direction and your advice could help us all get bigger pockets..

Thank You

Wow! Great for you at 19 years old and starting to invest in real estate. I started when I was 24 and still wish I had started younger.

In my opinion it really all depends on what you want to do. The fact it's a cash deal won't play much of a part in your decision on what real estate venture you choose. Cash is just always better when dealing with a closing and sellers prefer cash deals more so then mortgages. It's always best to buy with cash if you can. I have one mortgage on my first home from when I was 26 the others I always bought in cash.

Renting: Are you willing and able to be a landlord? When buying a home you become a business owner, it's just like buying into a business. You run and operate your property exactly how you would a business. There is a ton of responsibility with renting. For example, Can you make it to the property if a pipe burst at 2am in the morning? Also, Constant maintenance and up keep is required. I go by my properties on a weekly basis to make sure everything is running smoothly. Are you prepared to deal with tenants and all the issues that come along with them living on your property? These are some things to consider. But on the flip side, I love it! I have great tenants, I have a good amount of monthly income that covers all mortgages and leaves me with money for incidentals and profit.

Flipping is also a great way to make money, but you can lose it just as quick as you can make it. A lot of people have this misconception that you buy a property, fix it up, sell it and BAM your rich. Not the case at all, at least when I started out flipping. I had to go broke and had a lot of debt on my first one, you have to be prepared to have money for all types of rehab issues on the property. Contractors, sub contractors, permits, licenses, RE agents, etc are very time and money consuming. Always, for some reason after a couple weeks something always goes wrong and something needs to be re-wired or a wall needs demo b/c of an old pipe that has a slow leak when you turned the water on. Also, IMPORTANT know the market that's probably the most crucial aspect when flipping. I check the market on areas daily, I research any new developments in the future or pay attention to crime rates and neighbors, etc. If you don't do your homework on comps that compare to YOUR home not comps of the general area and homes that are not similar to yours you can fall short of any profit.

It's a gamble, but an exciting one. I love to micromanage and rebuild the home and change layouts and pick out granite and design the bathrooms, etc. it's a rush for me.
You can do very well for yourself flipping as long as you do the research, I did and still do to this day spend hours sometimes researching areas that I potentially want to buy in. Just don't jump in blind or you can end up in a mess. What it all boils down to is what you are ready for and what you can handle. I started out first renting. I'm very happy I did it this way,because I was able to learn along the way such things like tenant landlord rights, building rules and regs, comps, and all aspects at a slow rate. When you flip you have to be ready to move quick. You have a time frame and it's not long, you want to sell as quick as you can and role that money over into another investment. But good luck, and this is just my own experiences and opinions. But it's very exciting and wouldn't change what info for any other job!! :)

Hello sorry for the delayed and late response. I had to work late. I ALWAYS check Zillow. They send me new listing probably 10-15 times a day. You can check other I just prefer Zillow, also bought a home from it. But all homes are public record so if you see something your interested in go to the city website and it will have all the correct info for you.

I'm not to sure what you mean by a VA? Could you please explain. You don't mean a VA loan, do you?

It's not how long it took to find tenants because if the rental is priced right people will call and call and call. Majority of the time I don't have the man power to screen everyone. People are always looking to rent. It will be at your will who you accept. Always ask for 2-3 up to date payroll checks, last 2 months bank statements, ID, and have a list of questions you can ask off the top of your head. Again, this is a business and your looking to hire the best employees. I rarely ask for references, and the reason why is because anyone can be their reference. One truly dowsnt know who is on the other end of the phone. People lie and will have their friends to act as their last employment or landlord. I just prefer to pick there brain when it comes to references and you can almost always tell if their lying or not. But as for as getting a tenant never was an issue. It will always be a renters market, no matter how many people are buying homes. Hope that answered some of your question. Where are you looking to invest?