Getting Started After Highschool

9 Replies

Hello, first of all I want to thank you all for taking the time to read this I’m John and this is my first post here. It is my last year of high school and even with a high GPA, I do not want to go to college. I’ve got about twenty thousand dollars in a college savings that would like to use towards a multi family duplex using first home owner loan, which seems like a good idea to me (correct me if I’m wrong). I will still be living with parents so I can have more capital to pump back in investments. I’m very open for some advice about how to best go about starting in real estate investing with not a ton of capital. Any good books, pointers to the right direction, or any knowledge would be very appreciated. 

@John Suess

Although I know college is not for everyone, I am still weary of someone who would want to forgo getting a higher education altogether, especially for someone who is just coming out of high school.

Why not get the best of both worlds. What I mean by that is to buy a rental property and take a vocational course as a plumber, electrician, hvac, carpenter etc. These courses don't require very little years and the skills you gain will help you know what to do when your property has to be maintained or repaired.

When it comes to books start off with Rich Dad Poor Dad by Robert Kiyosaki to start shifting your brain into investor mode and the Biggerpocket's, "The Book on Rental Property Investing". Then I would start listening to the podcasts here on Biggerpockets, read the member blogs and get engaged in the forums.

One key thing I would like you to do if you can is to find a mentor, maybe through here on BP or through friends or relatives. Its always prudent to shadow someone who has been in the business for a long time and can give you advice backed by years of experience.

@John Suess it sounds like you have a good head on your shoulders and a good goal to work towards. I'll tell you this.... you'll need verifiable income in the beginning to be successful in multifamily properties. Buying a multifamily is a great start, although you will have to live in one unit to take advantage of the best financing, so keep that in mind. But a single investment will not be enough to give you the income to grow. College may not be your path, but you need a way to make money. As was already mentioned, a trade of some sort may be the way to go.

If you’re not going to college you’ll likely need some other higher education such as vocational school to get you to an income where you can invest in multiple properties very quickly, otherwise it could be a slow grind.

Welding or plumbing would be a good way to go. About 8 years into plumbing you can make 6 figures (so I’m told) and would give you useful skills as a rental property owner.

Get yourself set up in one of the building trades with an apprentice ship. Stay living at home if possible, obviously pay them rent since you do not want to be a leach, and once you have your job for 2 years you will be ready to get financing, buy a multi needing work and move into it. Reno, refinance, move to the next one.

Having a good paying job is essential for obtaining reasonable financing and will benefit/support your investing for many, many years. Do not be in a rush to escape the rat race since it will be the easiest money you will ever earn.

@John Suess , Congratulations on starting investing at your age. With such a start, you'll be financially set before you reach your 30s!

If in your area there are 3 and 4 unit buildings, buy the most you can buy with a low downpayment. Usually, as an owner occupant, you can buy up to 4 units with only 3.5% FHA loan or 5% conventional loan. You have to learn to calculate the cost and income. You want to buy a building, where the difference between all the income from rents and all expenses give you a good cash flow. Most people are looking at house hacking, meaning has the income from 3 out of 4, or 2 out of 3 units cover all expenses and get one rent as positive cash flow.

Keep in mind you will have to be employed to be able to take a loan unless your parents or a partner will cosign for you.

Hope that makes sense! Good luck to you!

It doesnt matter if you dont want to do a full 4-year course. Go to any vocational or community college to learn more about real estate in any branch that interests you . Even for a first time buyer, lenders require 2 yr of tax returns etc-So find yourself a job -then you can invest in your first home. You are still so young. If you dont want to wait, then notes or wholesaling may be better to get started

@John Suess  Happy to hear you are looking to start so young. Def a great head start!!

I would strongly recommend college though!! at the very least community college then to a state school for a BA/BS. then if you want spend the real money on a MBA/advance degree/certificate (CPA, six sigma black belt, etc). Certificates hold more value in my mind (unless you are a doctor, scientist, etc.)

You skip the dorms and house hack to fellow school mates. easy to find roommates in college.  

I had the same thoughts as you graduating high school. You'll learn quick banks like W2's. I ended up going to a 2 year trade school so I could get a decent job that would fund real estate. I agree with the others, getting some type of trade or profession even if it is just a means to an end. The school I went to is less than 50k for two years and you make 70k minimum coming out. Low debt and you'll get the financing to buy the rentals you want. Good luck!

One of the great things I forgot to mention about my area is that we have a program at the local community college called CCAP that pays for full tuition and some other costs of college. Ive been thinking about learning electitical work or plumbing and that way in the future I assume it could save me time and money on properties. I really appreciate all of your very detailed replies and wish you all good luck on your current and future goals!!

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